Proposal for a COUNCIL IMPLEMENTING DECISION amending Implementing Decision (EU) 2020/1346 granting temporary support under Regulation (EU) 2020/672 to the Hellenic Republic to mitigate unemployment risks in the emergency following the COVID-19 outbreak
Date: 2022-09-28
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, self-employed person

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   EUROPEAN COMMISSION  Brussels, 28.9.2022  COM(2022) 506 final 2022/0309 (NLE)  Proposal for a COUNCIL IMPLEMENTING DECISION amending Implementing Decision (EU) 2020/1346 granting temporary support under 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  6  August  2020,  Greece  requested  financial  assistance  from  the  Union   and  on  25 
September  2020,  with  its  Implementing  Decision  (EU)  2020/1346,  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  requested  again  Union  financial  assistance  under  the  SURE 
Regulation. Further to this request, the Council Implementing Decision (EU) 2020/1346 was 
amended by Council implementing decision (EU) 2021/679 of 23 April 2021.  

On  1  September  2022,  Greece  requested  Union  financial  assistance  under  the  SURE 
Regulation for the third time.   

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  Greek  labour  market  measures  caused  by  the  COVID-19  pandemic.  In 
particular,  these  measures  pertain  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,  introduced  by  Legal  Act  of  14  March  2020.  That  measure  aimed  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  January  2022.  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.  

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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.  

• 

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 2020.   

• 

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.  

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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. 

• 

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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2022/0309 (NLE) 

Proposal for a 

COUNCIL IMPLEMENTING DECISION 

amending Implementing Decision (EU) 2020/1346 granting temporary support under 
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) 

Further  to  a  request  from  Greece  on  6  August  2020,  the  Council,  by  means  of 
Implementing Decision (EU) 2020/13462, granted financial assistance to Greece in the 
form  of  a  loan  amounting  to  a  maximum  of  EUR  2 728 000 000  with  a  maximum 
average  maturity  of  15  years,  and  with  an  availability  period  of  18  months,  with  a 
view to complementing Greece’s national efforts to address the impact of the COVID-
19  outbreak  and  respond  to  the  socioeconomic  consequences  of  that  outbreak  for 
workers and the self-employed.  

The loan was to be used by Greece to finance the short-time work schemes and similar 
measures, as referred to in Article 3 of Implementing Decision (EU) 2020/1346.  

Further to a second request from Greece on 9 March 2021, the Council, by means of 
Implementing  Decision  (EU)  2021/6793  amending  Implementing  Decision  (EU) 
2020/1346, granted additional financial assistance of EUR 2 537 000 000 to Greece by 
increasing the maximum loan amount to EUR 5 265 000 000 with a maximum average 
maturity  of  15  years,  and  with  an  availability  period  of  18  months,  with  a  view  to 
complementing  Greece’s  national  efforts  to  address  the  impact  of  the  COVID-19 
outbreak and respond to the socioeconomic consequences of that outbreak for workers. 

(4) 

The additional loan was to be used by Greece to finance the short-time work schemes 
and  similar  measures,  as  referred  to  in  Article  3  of  Implementing  Decision  (EU) 
2021/679 amending Implementing Decision (EU) 2020/1346. 

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OJ L 159, 20.5.2020, p. 1. 
Council  Implementing  Decision  (EU)  2020/1346  of  25  September  2020  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.  
Council  Implementing  Decision  (EU)  2021/679  of  23  April  2021  amending  Implementing  Decision 
(EU) 2020/1346 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  144, 
27.4.21, p. 16. 

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(5) 

(6) 

(7) 

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  in 
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, 2021 and 2022 to contain that outbreak and its socioeconomic and health-related 
impact had and still have a dramatic impact on public finances. In 2020, Greece had a 
general government deficit and debt of 10.2% and 206.3% of gross domestic product 
(GDP)  respectively,  which  narrowed  to  7.4%  and  193.3%  respectively  at  the  end  of 
2021.  According  to  the  Commission's  2022  spring  forecast,  Greece  is  forecasted  to 
have a general government deficit and debt of 4.3% and 185.7% of GDP respectively 
by  the  end  of  2022.  According  to  the  Commission’s  2022  summer  interim  forecast, 
Greece’s GDP is projected to increase by 4.0% in 2022. 

On 1 September 2022 Greece requested further financial assistance from the Union in 
the amount of EUR 900 000 000 with a view to continuing to complement its national 
efforts  undertaken  in  2020,  2021  and  2022  to  address  the  impact  of  the  COVID-19 
outbreak and respond to the socioeconomic consequences of the outbreak for workers. 
In  particular,  Greece  further  extended  the  short-time  work  schemes  and  similar 
measures  set out in recitals (8) and (9).  

(8)  More  specifically,  Greece’s  request  pertains  to  ‘Legal  Act  of  14  March  2020’4,  as 
referred  to  in  Article  3,  point  (a)  of  Implementing  Decision  (EU)  2020/1346,  which 
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  was  suspended.  The  measure  has  been  extended  until  31 
January 2022. 

(9) 

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The authorities additionally introduced State financing of the social security coverage 
of  employees  that  benefit  from  the  special  allowance  referred  to  in  recital  (8),  as 
referred  to  in  Article  3,  point  (b),  of  Implementing  Decision  (EU)  2020/1346.  The 
precondition to benefit from the scheme is that the employer retains the same number 

‘Legal  Act  of  14  March  2020’  (OJ  A΄  64/2020)  ratified  by  Article  3  of  ‘Law  4682/2020’  (OJ  A΄ 
76/2020); ‘Legal Act of 1 May 2020’ (OJ A΄ 90/2020) ratified by Article 2 of Law 4690/2020 (OJ A΄ 
104/2020); ‘Law 4714/2020’ (OJ A΄ 148/2020); ‘Law 4722/2020’ (OJ A΄ 177/2020); ‘Law 4756/2020’ 
(OJ A΄ 235/2020); ‘Law 4778/2021’ (OJ A΄ 26/2021); ‘Ministerial Decision 12998/232/2020’ (OJ B΄ 
1078/2020),  ‘Ministerial  Decision  16073/287/2020’  (OJ  B΄  1547/2020),  ‘Ministerial  Decision 
17788/346/2020’  (OJ  B΄  1779/2020),  ‘Ministerial  Decision  23102/477/2020’  (OJ  B΄  2268/2020), 
‘Ministerial  Decision  49989/1266/2020’  (OJ  B΄  5391/2020);  ‘Ministerial  Decision  45742/1748/2020’ 
(OJ B' 5515/2020); ‘Ministerial Decision 3208/108’ (OJ B' 234/2021); ‘Ministerial Decision 4374/131’ 
(OJ  B'  345);  ‘Ministerial  Decision  9500/322/2021’  (OJ  B'  821/2021);  ‘Ministerial  Decision 
22547/2021’ (OJ B' 1683/2021); ‘Ministerial Decision 28631’ (OJ B' 2012/2021); ‘Ministerial Decision 
47100/2021’  (OJ  B'  2975/2021);  ‘Ministerial  Decision  51320/2021’  (OJ  B'  3127/2021);  ‘Ministerial 
Decision  58921/2021’  (OJ  B'  3637/2021);  ‘Ministerial  Decision  74831/2021’  (OJ  B'  4593/2021); 
‘Ministerial  Decision  105596/2021’  (OJ  B'  6076/2021);  ‘Ministerial  Decision  109412/2021’  (OJ  B' 
6368/2021); and ‘Ministerial Decision 3512/2021’ (OJ B' 103/2021). 

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of employees (meaning the same exact employees) for a period equal to the period for 
which the labour contract was suspended. 

(10)  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 
6 477 014 989 as of 1 February 2020 due to the national measures taken to address the 
socioeconomic  effects  of  the  COVID-19  outbreak.  This  constitutes  a  sudden  and 
severe increase because it is also related to an extension of existing national measures 
directly  related  to  short-time  work  scheme  and  similar  measures  that  cover  a 
significant  proportion  of  undertakings  and  of  the  labour  force  in  Greece.  Greece 
intends to finance EUR 312 014 989 through its own financing. 

(11)  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, as referred to in the request of 1 September 2022, in accordance 
with Article 6 of Regulation (EU) 2020/672.  

(12)  Financial  assistance  should  therefore  be  provided  with  a  view  to  helping  Greece  to 
address  the  socioeconomic  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.  

(13)  Given that the availability period indicated in Implementing Decision (EU) 2020/1346 
has expired, a new availability period for the additional financial assistance is needed. 
The availability period for financial assistance of 18 months granted by Implementing 
Decision (EU) 2020/1346 should be extended by 21 months and as a consequence the 
total  availability  period  should  be  39  months  starting  from  the  first  day  after 
Implementing Decision (EU) 2020/1346 has taken effect. 

(14)  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. 

(15)  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. 

(16)  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. 

(17)  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 

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(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 
6 165 000 000. The loan shall have a maximum average maturity of 15 years.’; 

(b) paragraph 2 is replaced by the following:  

‘2. The availability period for financial assistance granted by this Decision shall be 39 
months starting from the first day after this Decision has taken effect.’ 

(c) 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 that loan agreement or, 
where  relevant,  be  subject  to  the  entry  into  force  of  an  addendum  thereto,  or  of  an 
amended  loan  agreement  concluded  between  Greece  and  the  Commission  replacing 
the original loan agreement.’; 

(2) 

Article 3 is replaced by the following:  

Greece may finance the following measures: 

‘Article 3 

(a)   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 last 
extended  by  Law  4778/2021  of  19  February  2021  and  ‘Ministerial  Decision 
3512/2021’;  

(b)  

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  last  extended  by  Law  4778/2021  of  19  February  2021  and  ‘Ministerial 
Decision 3512/2021’;  

(c)   a  special  allowance  to  professionals  who  are  self-employed,  as  provided  for  in 

Article 8 of “Legal Act of 20 March 2020”;  

(d)   a short-time work scheme, as provided for by Article 31 of “Law 4690/2020”;  

(e)  

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

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This Decision is addressed to the Hellenic Republic. 

Article 2 

Done at Brussels, 

For the Council 
The President 

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