Croatia: €510 million allocated from SURE instrument to reduce unemployment risks

Croatia: €510 million allocated from SURE instrument to reduce unemployment risks

The European Commission disbursed €510 million to Croatia on Tuesday to help reduce unemployment risks.

The Commission disbursed €14 billion to nine EU countries in the second installment of financial support to member states under the SURE instrument. Of this amount, Croatia received €510 million, Cyprus €250 million, Greece €2 billion, Italy an additional €6.5 billion, Latvia €120 million, Lithuania €300 million, Malta €120 million, Slovenia €200 million and Spain an additional €4 billion.

“The second wave (of the coronavirus pandemic) is hitting Europe hard. The EU is here to support. We want to protect people from this virus and we also want to protect their jobs”, Commission President Ursula von der Leyen stated.

The SURE instrument was established in May to support employment by providing up to €100 billion in financial support to the affected Member-States in the form of loans. To finance the loans, the Commission borrows on financial markets and allocates the money to the member states on favourable terms.

Croatia has been granted a total of €1.02 billion, receiving a first tranche of 510 million.

“This support, in the form of loans granted on favourable terms, will assist these member states in addressing sudden increases in public expenditure to preserve employment. Specifically, they will help cover the costs directly related to the financing of national short-time work schemes, and other similar measures they have put in place as a response to the coronavirus pandemic, including for the self-employed,” the Commission notes in its announcement.

By the end of October, Italy, Spain and Poland had already received a total of €17 billion under the EU SURE instrument. /ibna