COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE EUROPEAN COUNCIL, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS Coronavirus Response Using every available euro in every way possible to protect lives and livelihoods
Date: 2020-04-02
Institutions: European Commission, Secretariat-General
Subjects: EU aid, EU employment policy, EU financial instrument, aid to agriculture, economic and social cohesion, epidemic, fight against unemployment, infectious disease, organisation of health care, socially disadvantaged class

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 2.4.2020  COM(2020) 143 final  COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE EUROPEAN COUNCIL, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS  Coronavirus Response    Using every available euro in every way possible to protect lives and livelihoods  
 
 
Coronavirus Response  
Using every available euro in every way possible to protect lives and livelihoods 

1.  Introduction  

The Coronavirus outbreak is testing Europe in ways that would have been unthinkable only a 
few months ago. This crisis is first and foremost a public health emergency and the European 
Commission’s work is about saving lives and protecting livelihoods. In this spirit, we have 
directed  all  of  our  efforts  towards  supporting  the  heroic  work  of  Europe’s  healthcare  and 
frontline workers who are treating patients or helping our world to go around, as well all of 
those who have had to down tools or stay at home to protect each other from the virus. 

The depth and the breadth of this crisis requires a response unprecedented in scale, speed 
and  solidarity.  And  support  is  urgently  needed:  from  buying  and  delivering  medical  or 
protective  equipment  to  ensuring  the  most  deprived  still  have  access  to  food  or  other  basic 
needs.  From  making  sure  people  have  an  income  and  a  job  to  go  back  to,  to  keeping 
businesses afloat and making sure our economy is ready to bounce back as soon as it can. 

This  has  been  the  driving  force  behind  the  Commission’s  wide-ranging  response  package. 
This  includes  encouraging  industry  to  ramp  up  production  of  supplies,  creating  a  common 
stockpile of protective equipment for immediate distribution where needed and organising 
joint  procurements  with  Member  States  to  order  the  most  urgent  supplies.  A  team  of 
experts  from  across  Europe  was  set  up  to  make  sure  Member  States  had  the  best  available 
knowledge and money was immediately put into research for treatments and vaccines. 

The Commission also stepped up to make the EU budget more readily available, to make our 
State aid rules fully flexible and to trigger the Stability and Growth Pact’s General Escape 
Clause for the first time ever. Along with measures taken by the European Central Bank, this 
EU response gives Member States unprecedented fiscal and financial firepower to help those 
that need it the most.  

As part of this, the Commission proposed the Coronavirus Response Investment Initiative 
(CRII)  on  13  March.  This  focused  on  what  was  immediately  necessary,  available  and 
deliverable. The initiative came into force in record time and now enables Member States to 
spend  the  Cohesion  Policy  Funds  to  support  healthcare  systems  and  professionals,  support 
workers and their employers through short-time work schemes and support small businesses 
by  offering  liquidity.  The  EU  Solidarity  Fund  was  also  extended  to  cover  public  health 
emergencies. 

This will make a difference on the ground. But with every day that passes comes a need to do 
more.  This  is  why  today  the  European  Commission  is  taking  a  series  of  unprecedented  and 
bold  measures.  At  the  heart  of  today’s  proposals  is  a  simple  pledge:  We  will  use  every 
available euro we have - in every way we can - to save lives and protect livelihoods. 

1 

 
 
 
To make this happen, we are today proposing to: 

  Create  a  new  EU  solidarity  instrument  worth  €100  billion  to  help  workers  keep 

their income and help businesses retain staff.  

  Make our European Structural and Investment Funds fully flexible so every euro 
can be directed now to support public health efforts or to cushion the economic blow 
for people and businesses.  

  Put every available euro in this year’s EU budget in an emergency instrument to 

support efforts to save lives.  

In  addition,  there  will  be  specific  proposals  to  make  sure  that  the  most  deprived  can  still 
receive food deliveries and there will be tailored support for farmers and fishermen who are 
the heartbeat of many of our local communities and who are helping to  keep Europe’s food 
supply chain going.  

In times of crisis, there can be no holding back, no half measures, no hesitation. With today’s 
package, Europe is showing that it will put everything it has into doing everything it can. 

2.  Protecting livelihoods: Keeping people in work and companies in business   

2.1 SURE: An EU-wide scheme to mitigate unemployment risks 

Many  people  in  Europe  are  suffering  more  than  others  simply  because  of  what  they  do  or 
where they live. In a Union of people and nations all affected by the same crisis, we must all 
be there for each other – whether rich or poor, or from the East, West, South or North. This is 
particularly true when it comes to cushioning the economic blow.  

In the face of such a crisis, the greatest risk of all is the policy of being  too cautious or too 
rigid.  This  is  why  we  need  further  bold  steps  to  ensure  that  those  who  are  being  hit  hard 
through no fault of their own are fully supported to get through this.  

This  is  the  central  premise  for  today’s  proposal  by  the  Commission  for  SURE,  a  new 
instrument  which  will  provide  up  to  €100  billion  in  loans  to  the  countries  in  need  to  help 
ensure that workers receive an income and businesses keep their staff. This allows people to 
continue  to  pay  their  rent,  bills  and  food  and  helps  provide  much  needed  stability  to  the 
economy. 

The loans are based on guarantees provided by Member States and will be directed to where 
they are most urgently needed. All Member States will be able to make use of this but it will 
be of particular importance to the hardest-hit. 

SURE  will  support  short-time  work  schemes  and  similar  measures  to  help  Member  States 
protect  jobs,  employees  and self-employed  against  the risk of dismissal  and loss of income. 
Firms  will  be  able  to  temporarily  reduce  the  hours  of  employees,  with  income  support 
provided  by  the  State  for  the  hours  not  worked.  The  self-employed  will  receive  income 
replacement for the current emergency. 

2 

 
 
In the past, a similar approach has proven to be a powerful tool in major economic crises. This 
was  notably  the  case  during  the  last  financial  crisis  where  it  helped  to  prevent  a  harsher 
impact of the recession and helped to speed up the recovery. Such schemes were already in 
place in 18 Member States before the outbreak of the virus and have since been extended. As 
of today, all other Member States have or will shortly introduce similar schemes. 

2.2 Delivering for the most deprived 

As most of Europe practices social distancing to slow the spread of the virus, it is all the more 
important that those who rely on others for the most basic of needs are not cut off from help.  

This  is  particularly  true  for  the  most  deprived  in  our  Union  who  receive  help  for  food  and 
other essential items through the Fund for European Aid to the Most Deprived. However, 
many volunteers who deliver this help can no longer be mobilised as they often fall into the 
most  at-risk  group  if  they  contract  the  coronavirus.  This  is  why  the  Commission  is  today 
proposing  flexibility  for  Member  States  to  introduce  new  methods,  such  as  the  use  of 
electronic vouchers, and buy protective equipment for those delivering the aid. 

2.3 Supporting our farmers and fishermen 

Europe’s farming and fisheries sectors are the heartbeat and social hub of many communities 
across our Union. They have an essential role in providing us with the food we eat and rely on 
centuries of tradition and know-how.  

Fishers and fish-farmers have been hit hard by the current crisis, with an impact on our food 
supply chains and the local economies that the sector sustains.  

The  Commission  is  today  making  legal  proposals to  introduce  exceptional  flexibility 
measures  in  the  European  Maritime  and  Fisheries  Fund.  These  would  enable  Member 
States  to  provide  support  to  fishermen  for  the  temporary  cessation  of  fishing  activities, 
provide  support  to  aquaculture  farmers  for  the  temporary  suspension  or  reduction  of 
production and provide support to producer organisations for the temporary storage of fishery 
and aquaculture products. 

By  the  same  token,  European  farmers  must  be  supported  through  this  crisis  to  ensure 
livelihoods are protected and food supply is unaffected.  

With  this  in  mind,  the  Commission  will  shortly  propose  a  range  of  concrete  measures  to 
ensure that farmers and other beneficiaries can get the support they need from the Common 
Agricultural  Policy.  This  will  include  giving  farmers  more  time  to  introduce  their 
applications for  support  and  more  time  to  allow  administrations  to  process  them.  To  help 
increase  the  cash  flow  of  farmers,  the  Commission  will  propose  to  increase  advances  for 
direct  payments  and  rural  development  payments.  It  will  also  look  at  offering  additional 
flexibility  in  on-the-spot  checks  to  minimise  the  need  for  physical  contact  and  reduce 
administrative burden.  

3 

 
3.  Protecting our economies and people: Making every euro of Cohesion Policy 

Funds available now  

The Commission is today making good on its promise that every euro that can be used will be 
used quickly. In this spirit, all uncommitted money from the three Cohesion Policy Funds  – 
the European Regional Development Fund, the European Social Fund and the Cohesion Fund 
- can be mobilised to address the effects of the public health crisis.  

To make this happen, the Commission is proposing maximum flexibility to transfer between 
funds as well as between categories of regions. To make sure that all available money is used, 
there  will  be  exceptionally  no  national  co-financing  requirement  for  any  of  the  Cohesion 
Policy Funds.  This  is  an unprecedented move which reflects  the need  for Member States to 
use all available means to support their citizens at this moment.  

In addition, the Commission is proposing no limit on spending by policy objectives, or what 
are known as thematic concentration requirements. This will make sure that funds can be re-
directed to where they are most urgently needed.  

To  ensure  legal  certainty  and  to  reduce  administrative  burden,  a  number  of  other 
simplifications are being proposed. These include Partnership Agreements not needing to be 
amended,  deadlines  for  annual  reports  postponed  and  limited  financial  flexibility  being 
allowed at the closure of programmes. This is will apply to all of the Cohesion Policy Funds. 

With these proposals, Member States will be able to immediately spend all available money to 
support the healthcare sector across Europe’s regions, as well as to support short-term work 
schemes and provide liquidity support to SMEs. 

4.  Protecting lives: Putting all available budget into an emergency instrument to 

support the healthcare sector 

The European Union has not faced a health crisis in its history on this scale or spreading  at 
this speed. In response, the first priority is to save lives and to meet the needs of our health 
care systems and professionals who are working miracles every day right across our Union. 

The  Commission  is  working  hard  to  ensure  the  supply  of  protective  gear  and  respiratory 
equipment. Despite the strong production efforts of industry, Member States still face severe 
shortages in some areas. They also lack sufficient treatment facilities and would benefit from 
being  able  to  move  patients  to  areas  with  more  resources  and  dispatch  medical  staff  to 
hardest-hit  places.  Support  will  also  be  needed  for  mass  testing,  for  medical  research,  for 
deploying new treatments, and for producing, purchasing and distributing vaccines across the 
EU. 

The EU is today proposing to use all available funds from this year’s EU budget to help to 
respond to the needs of European health systems.   

4 

 
 
Almost all of this money, 2.7 billion, will be put into the Emergency Support Instrument, with 
the  remaining  €300  million  allocated  to  RescEU  to  support  the  common  stockpile  of 
equipment. 

The proposal  will allow for  flexible, fast and direct support across  two broad priorities. 
The  first  is  helping  to  manage  the  public  health  crisis  and  securing  vital  equipment  and 
supplies,  from  ventilators  to  personal  protective  gear.  This  could  also  provide  medical 
assistance to the most vulnerable, including those in refugee camps. The second area of focus 
would be on enabling the scaling up of testing efforts and treatments. To save crucial time and 
money, the proposal would also enable the Commission to procure directly on behalf of the 
Member States  

This initiative is a collective European effort to save lives and support each other. In this 
spirit  of  solidarity,  it  should  be  open  to  all  those  who  want  to  contribute  by  topping  up  the 
fund.  This  could  be  from  Member  States,  private  sector  to  NGOs,  from  civil  society  to 
citizens or any other interested party who wants to contribute. 

5.  Next steps: Getting back on our feet and standing strong together 

Today’s package of proposals is first and foremost about supporting people. It is about getting 
the frontline worker the equipment they need or helping out the volunteers who are helping 
out the most vulnerable. It is about making life easier for the worker worried about their job, 
the  employer  worried  about  their  staff,  the  small  business  worried  about  their  future  or  the 
self-employed person worried about their income.  

We now need to urgently turn proposals into law – and go from legislation to implementation 
in record time. The Commission will work closely with the co-legislators in the coming weeks 
to ensure these proposals can start making a difference where they are most needed. 

To back this up, the Commission is already supporting Member States so that the  funds can 
go to those in need as quickly as possible. The Commission has set up a CRII Task Force as a 
one-stop shop for practical and legal questions. Country teams are at Member States` disposal 
to provide targeted advice on how to re-direct unused structural funds.  

This  package  is  the  latest  instalment  of  what  must  be  a  continued  massive  effort  to  protect 
lives  and  livelihoods.  It  will  help  to  squeeze  out  everything  we  can  from  this  year’s  EU 
budget. However, the EU’s current  seven-year budget comes to  an end this  year and  a new 
one has not been agreed. This comes at a time when the EU needs to flesh out a recovery plan 
so that it can get its economy moving and its people working as soon as it is safe to do so. 
This plan will also help us increase our resilience to the other challenges we continue to face. 

Only a powerful and flexible long-term EU budget can make this happen quickly. This is 
the time to  make sure we have  an EU budget  that  can help  Europe  get  back on its feet  and 
stand  strong  together.  Any  discussions  on  the  next  budget  will  now  need  to  be  seen  in  that 
light and be the driver of Europe’s recovery. 

5 

 
 
These proposals show the true value of being part of a Union where those who can afford a bit 
more support those who need a little bit more.  As Europe first  grapples with  this crisis  and 
then starts  its path  to  recovery, it will need more of this spirit of solidarity and it will need 
huge and urgent investment to help get the economy moving and people working. At the same 
time,  the  EU  will  continue  to  demonstrate  responsibility,  solidarity  and  leadership  on  the 
global stage.  

The package in brief 

  The Commission is proposing to create SURE, a new EU solidarity instrument to help 
workers keep their income and help businesses stay afloat and retain staff. SURE will 
provide financial assistance up to €100 billion in EU loans and will be an EU-wide 
scheme to mitigate unemployment risks. 

  The Commission is proposing to adapt the Fund for European Aid to the Most Deprived 
to ensure that food deliveries can continue going to where they are needed, while making 
sure those delivering and those receiving stay safe.  

  The Commission is proposing specific measures to support Europe’s fishermen and 
farmers who play an essential role in keeping our food supply going and in sustaining 
our local communities.  

  The Commission is proposing to allow every available euro of  European Structural 
and Investment Funds to be used on the response to the Coronavirus. In simple terms, 
this is maximum flexibility: no limit on transfers between funds or between regions, no 
limits on spending per policy objective, no requirements on co-financing.  

  The Commission is proposing to redirect every available euro from this year’s EU 

budget to help save lives through a new EU solidarity instrument. This will ensure that 
€3billion is directed to supporting Member States to manage the public health crisis. 

6