Proposal for a COUNCIL IMPLEMENTING DECISION amending Implementing Decision (EU) 2020/1346 granting temporary support pursuant to Regulation (EU) 2020/672 to the Hellenic Republic to mitigate unemployment risks in the emergency following the COVID-19 outbreak
Date: 2021-03-29
Institutions: Directorate-General for Economic and Financial Affairs, European Commission
Subjects: EU loan, Greece, aid to undertakings, coronavirus disease, emergency aid, employment aid, epidemic, fight against unemployment, public expenditure

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   EUROPEAN COMMISSION  Brussels, 29.3.2021  COM(2021) 166 final 2021/0089 (NLE)  Proposal for a COUNCIL IMPLEMENTING DECISION amending Implementing Decision (EU) 2020/1346 granting temporary support pursuant to Regulation (EU) 2020/672 to the Hellenic Republic to mitigate unemployment risks in the emergency following the COVID-19 outbreak  
 
EXPLANATORY MEMORANDUM 

1. 

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CONTEXT OF THE PROPOSAL 

Reasons for and objectives of the proposal 

Council Regulation (EU) 2020/672 (“SURE Regulation”) lays down the legal framework for 
providing  Union  financial  assistance  to  Member  States,  which  are  experiencing,  or  are 
seriously threatened with, a severe economic disturbance caused by the COVID-19 outbreak. 
Support  under  SURE  serves  for  the  financing,  primarily,  of  short-time  work  schemes  or 
similar measures aimed at protecting employees and the self‐ employed and thus reducing the 
incidence of unemployment and loss of income, as well as for the financing, as an ancillary, 
of some health-related measures, in particular in the workplace. 

On  25  September  2020,  the  Council  granted  financial  assistance  to  Greece  with  a  view  to 
complementing  its  national  efforts  to  address  the  impact  of  the  COVID-19  outbreak  and 
respond  to  the  socioeconomic  consequences  of  the  outbreak  for  workers  and  the  self-
employed. 

On 9 March 2021, Greece submitted a new request for Union financial assistance under the 
SURE Regulation.  

In accordance with Article 6(2) of the SURE Regulation, the Commission has consulted the 
Greek authorities to verify the sudden and severe increase in actual and planned expenditure 
directly related to Greece’s labour market measures and caused by the COVID-19 pandemic. 
In  particular,  the  increased  expenditure  for  which  additional  financial  assistance  is  being 
requested  pertains  to  existing  measures  referred  to  in  Council  Implementing  Decision  (EU) 
2020/1346: 

(a) 

(b) 

A special allowance for private sector employees whose labour contracts have been 
suspended. That measure aims to protect employment in companies that cease their 
operations by public order or belong to economic sectors that are heavily affected by 
the COVID-19 outbreak, and concerns the provision of a special monthly allowance 
of  EUR  534  to  employees  whose  labour  contracts  are  suspended.  The  measure,  in 
force  since  mid-March  2020,  has  been  extended  until  31  March  2021  for  regular 
workers  and  until  31  October  2021  for  seasonal  workers.  Furher  extensions  may 
apply  to  a  decreasing  number  of  eligible  economic  sectors  in  the  coming  months. 
The  precondition  to  benefit  from  the  scheme  is  that  the  employer  retains  the  same 
number of employees (meaning the same exact employees) for a period equal to the 
period for which the labour contract had been suspended.  

The financing by the state of the social security coverage of employees that benefit 
from the special allowance referred to in point (a). The precondition to benefit from 
the scheme is that the employer retains the same number of employees (meaning the 
same exact employees) for a period equal to the period for which the labour contract 
had been suspended.  

Greece provided the Commission with the relevant information.  

Taking into account the available evidence, the Commission proposes to the Council to adopt 
an Implementing Decision to grant financial assistance to Greece under the SURE Regulation 
in support of the measures above.  

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Consistency with existing policy provisions in the policy area 

The present proposal is fully consistent with Council Regulation (EU) 2020/672, under which 
the proposal is made. 

The present proposal comes in addition to another Union law instrument to provide support to 
Member States in case of emergencies, namely Council Regulation (EC) No 2012/2002 of 11 
November 2002 establishing the European Union Solidarity Fund (EUSF) (“Regulation (EC) 
No 2012/2002”). Regulation (EU) 2020/461 of the European Parliament and of the Council, 
which amends that instrument to  extend its scope to  cover major public  health emergencies 
and to define specific operations eligible for financing, was adopted on 30 March.   

• 

Consistency with other Union policies 

The proposal is part of a range of measures developed in response to the current COVID-19 
pandemic  such  as  the  “Coronavirus  Response  Investment  Initiative”,  and  it  complements 
other  instruments  that  support  employment  such  as  the  European  Social  Fund  and  the 
European Fund for Strategic Investments (EFSI)/InvestEU. By making use of borrowing and 
lending in this particular case of the COVID-19 outbreak for supporting Member States, this 
proposal  acts  as  a  second  line  of  defence  to  finance  short-time  work  schemes  and  similar 
measures,  helping  protect  jobs  and  thus  employees  and  self-employed  against  the  risk  of 
unemployment.  

2. 

• 

LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY 

Legal basis 

The legal basis for this instrument is Council Regulation (EU) 2020/672.   

• 

Subsidiarity (for non-exclusive competence)  

The  proposal  follows  a  Member  State  request  and  shows  European  solidarity  by  providing 
Union financial assistance in the form of temporary loans to a Member State affected by the 
COVID-19  outbreak.  As  a  second  line  of  defence,  such  financial  assistance  supports  the 
government’s increased public expenditure on a temporary basis in respect of short-time work 
schemes  and  similar  measures  to  help  them  protect  jobs  and  thus  employees  and  self-
employed against the risk of unemployment and loss of income. 

Such  support  will  help  the  population  affected  and  helps  to  mitigate  the  direct  societal  and 
economic impact caused by the present COVID-19 crisis.  

• 

Proportionality 

The proposal respects the proportionality principle. It does not go beyond what is necessary to 
achieve the objectives sought by the instrument.  

3. 

• 

RESULTS 
CONSULTATIONS AND IMPACT ASSESSMENTS 

EX-POST 

EVALUATIONS, 

OF 

STAKEHOLDER 

Stakeholder consultations 

Due to the urgency to prepare the proposal so that it can be adopted in a timely manner by the 
Council, a stakeholder consultation could not be carried out. 

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• 

Impact assessment 

Due to the urgent nature of the proposal, no impact assessment was carried out. 

4. 

BUDGETARY IMPLICATIONS 

The  Commission  should  be  able  to  contract  borrowings  on  the  financial  markets  with  the 
purpose  of  on-lending  them  to  the  Member  State  requesting  financial  assistance  under  the 
SURE instrument.  

In  addition  to  the  provision  of  Member  State  guarantees,  other  safeguards  are  built  into  the 
framework in order to ensure the financial solidity of the scheme: 

 

 

A rigorous and conservative approach to financial management; 

A  construction  of  the  portfolio  of  loans  that  limits  concentration  risk,  annual 
exposure and excessive exposure to individual Member States whilst ensuring 
sufficient resources could be granted to Member States most in need; and 

 

Possibilities to roll over debt. 

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2021/0089 (NLE) 

Proposal for a 

COUNCIL IMPLEMENTING DECISION 

amending Implementing Decision (EU) 2020/1346 granting temporary support pursuant 
to Regulation (EU) 2020/672 to the Hellenic Republic to mitigate unemployment risks in 
the emergency following the COVID-19 outbreak 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty on the Functioning of the European Union, 

Having regard to Council Regulation (EU) 2020/672 of 19 May 2020 on the establishment of 
a  European  instrument  for  temporary  support  to  mitigate  unemployment  risks  in  an 
emergency (SURE) following the COVID-19 outbreak1, and in particular Article 6(1) thereof, 

Having regard to the proposal from the European Commission, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

On 25 September 2020, the Council granted financial assistance to Greece taking the 
form  of  a  loan  amounting  to  a  maximum  of  EUR  2 728 000 000  with  a  maximum 
average  maturity  of  15  years,  following  Greece’s  request  of  6  August  2020,  with  a 
view  to  complementing  its  national  efforts  to  address  the  impact  of  the  COVID-19 
outbreak and respond to the socio-economic consequences of the outbreak for workers 
and the self-employed.   

The loan was to finance the short-time work schemes and similar measures adopted by 
Greece, as referred to in Council Implementing Decision (EU) 2020/13462.  

The COVID-19 outbreak continues to immobilise a substantial part of the labour force 
in Greece. This has led to a still sudden and severe increase in public expenditure by 
Greece in respect of the measures referred to in Article 3(a) and (b) of Implementing 
Decision (EU) 2020/1346.  

The  COVID-19  outbreak  and  the  extraordinary  measures  implemented  by  Greece  in 
2020  and  2021  to  contain  the  outbreak  and  its  socio-economic  and  health-related 
impact  had  and  still  have  a  dramatic  impact  on  public  finances.    According  to  the 
Commission's  2020  autumn  forecast,  Greece  was  expected  to  have  a  general 
government  deficit  and  debt  of  6.9%  and  207.1%  of  gross  domestic  product  (GDP) 
respectively  by  the  end  of  2020.  In  2021,  Greece’s  general  government  deficit  and 
debt are forecast to narrow to 6.3% and 200.7% of GDP respectively. According to the 
Commission’s 2021 winter interim forecast, Greece’s GDP is projected to increase by 
3.5% in 2021. 

(5) 

On 9 March 2021, Greece requested further financial assistance from the Union in an 
amount  of  EUR  2 537 000 000  with  a  view  to  continue  complementing  its  national 

1 
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OJ L 159, 20.5.2020, p. 1. 
Council Implementing Decision (EU) 2020/1346 of 25 September 2020 on granting temporary support 
under  Regulation  (EU)  2020/672  to  the  Hellenic  Republic  to  mitigate  unemployment  risks  in  the 
emergency following the COVID-19 outbreak, OJ L 314, 29.9.2020, p.21.  

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efforts undertaken in 2020 and 2021 to address the impact of the COVID-19 outbreak 
and  respond  to  the  socioeconomic  consequences  of  the  outbreak  for  workers.  In 
particular it concerns the measures set out in recitals 6 to 7.  

(6)  More specifically, it pertains to 'Legal Act of 14 March 2020'3, as referred to in Article 
3(a) of of Implementing Decision (EU) 2020/1346 that introduced a special allowance 
for  private  sector  employees  whose  labour  contracts  have  been  suspended.  That 
measure  aims  to  protect  employment  in  companies  that  cease  their  operations  by 
public order or belong to economic sectors that are heavily affected by the COVID-19 
outbreak, and  concerns the provision of a special monthly  allowance of EUR 534 to 
employees whose labour contracts are suspended. The precondition to benefit from the 
scheme is that the employer retains the same number of employees (meaning the same 
exact  employees)  for  a  period  equal  to  the  period  for  which  the  labour  contract  had 
been  suspended.  The  measure  has  been  extended  until  31  March  2021  for  regular 
workers and until 31 October 2021 for seasonal workers. Furher extensions may apply 
to a decreasing number of eligible economic sectors in the coming months.  

(7) 

The authorities additionally introduced the financing by the State of the social security 
coverage  of  employees  that  benefit  from  the  special  allowance  referred  to  in  recital 
(6),  as  referred  to  in  Article  3(b)  of  Implementing  Decision  (EU)  2020/1346.  The 
precondition to benefit from the scheme is that the employer retains the same number 
of employees (meaning the same exact employees) for a period equal to the period for 
which the labour contract had been suspended.  

 (8)  Greece fulfils the conditions for requesting financial assistance set out in Article 3 of 
Regulation  (EU)  2020/672.  Greece  has  provided  the  Commission  with  appropriate 
evidence  that  the  actual  and  planned  public  expenditure  has  increased  by  EUR 
6 071 899 097 as of 1 February 2020 due to the national measures taken to address the 
socio-economic  effects  of  the  COVID-19  outbreak.  This  constitutes  a  sudden  and 
severe increase because it is related also to an extension of existing national measures 
directly related to short-time work scheme and similar measure that cover a significant 
proportion  of  undertakings  and  of  the  labour  force  in  Greece.  Greece  intends  to 
finance  EUR  806 899 097  of  the  increased  amount  of  public  expenditure  through  its 
own financing. 

(9) 

The Commission has consulted Greece and verified the sudden and severe increase in 
the actual and planned public expenditure directly related to short-time work schemes 
and similar measures referred to  in  the request  of 9 March 2021, in  accordance with 
Article 6 of Regulation (EU) 2020/672. 

(10)  Financial  assistance  should  therefore  be  provided  with  a  view  to  helping  Greece  to 
address the socio-economic effects of the severe economic disturbance caused by the 
COVID-19  outbreak.  The  Commission  should  take  the  decisions  concerning 
maturities,  size  and  release  of  instalments  and  tranches  in  close  cooperation  with 
national authorities.  

3 

Legal  Act  of  14  March  2020  (Government  Gazette  A΄  64)  ratified  by  Article  3  of  Law  4682/2020 
(Government Gazette A΄ 76); Ministerial Decision 12998/232 (Government Gazette B΄ 1078/28 March 
2020),  Ministerial  Decision  16073/287/22  April  2020  (Government  Gazette  B΄  1547/22  April  2020), 
Ministerial Decision 17788/346/8 May 2020 (Government gazette B΄ 1779/10 May 2020), Ministerial 
Decision  23102/477/2020  (Government  Gazette  B'  2268/13  June  2020),  Ministerial  Decision 
49989/1266/2020  (FEK  B΄  5391/07-12-2020);  and  Ministerial  Decision  45742/1748  (FEK  B' 
5515/16/12/2020). 

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(11)  Greece  and  the  Commission  should  take  this  Decision  into  account  in  the  loan 

agreement referred to in Article 8(2) of Regulation (EU) 2020/672.  

(12)  This Decision should be without prejudice to the outcome of any procedures relating 
to  distortions  of  the  operation  of  the  internal  market  that  may  be  undertaken,  in 
particular  pursuant  to  Articles  107  and  108  of  the  Treaty.  It  does  not  override  the 
requirement  for  Member  States  to  notify  instances  of  potential  State  aid  to  the 
Commission under Article 108 of the Treaty. 

(13)  Greece should inform the Commission on a regular basis of the implementation of the 
planned public expenditure, in order to enable the Commission to assess the extent to 
which Greece has implemented that expenditure. 

(14)  The  decision  to  provide  financial  assistance  has  been  reached  taking  into  account 
existing  and  expected  needs  of  Greece,  as  well  as  requests  for  financial  assistance 
pursuant  to  Regulation  (EU)  2020/672  already  submitted  or  planned  to be  submitted 
by other Member States, while applying the principles of equal  treatment,  solidarity, 
proportionality and transparency,  

HAS ADOPTED THIS DECISION:  

Implementing Decision (EU) 2020/1346 is amended as follows:  

Article 1 

(1) 

Article 2 is amended as follows: 

(a) 

paragraph 1 is replaced by the following:  

‘1. The Union shall make available to Greece a loan amounting to a maximum of EUR 
5 265 000 000. The loan shall have a maximum average maturity of 15 years.’; 

(b)  paragraph 4 is replaced by the following:  

‘4.  The  first  instalment  shall  be  released  subject  to  the  entry  into  force  of  the  loan 
agreement  provided  for  in  Article  8(2)  of  Regulation  (EU)  2020/672.  Any  further 
instalments shall be released in accordance with the terms of such loan agreement or, 
where relevant, be subject to the entry into force of an addendum to the latter, or an 
amended  loan agreement concluded between Greece and the Commission.’; 

(2) 

Article 3 is replaced by the following:  

Greece may finance the following measures: 

‘Article 3 

(a) 

(b) 

a special allowance provided to  employees  whose labour  contracts  have  been 
suspended, as  provided  for in  Article 13 of  'Legal  Act  of 14 March 2020', as 
extended;  

the  social  security  coverage  of  employees  under  the  measure  referred  to  in 
point (a) of this Article, as provided for in Article 13 of 'Legal Act of 14 March 
2020', as extended;  

(c) 

a special allowance to professionals who are self-employed, as provided for in 
Article 8 of 'Legal Act of 20 March 2020';  

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(d) 

a short-time work scheme, as provided for by Article 31 of 'Law 4690/2020';  

(e) 

in  seasonal 
the  employer  social  security  contributions  for  employees 
enterprises  in  the  tertiary  sector,  as  provided  for  in  Article  123  of  'Law 
4714/2020'. 

This Decision is addressed to  the Hellenic Republic. 

Article 2 

Done at Brussels, 

For the Council 
The President 

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