Overview of the EU economic measures in response to COVID-19 crisis
In response to the COVID-19 crisis member states have already adopted or are adopting budgetary measures to increase the capacity of their health systems and provide relief to the economy.
To cushion the blow of the COVID-19 crisis, the European Commission has adopted a comprehensive economic response to the outbreak, loosened the stability pact criteria and the State Aid rules. Moreover, the Commission has set up a €37 billion Coronavirus Response Investment Initiative to provide liquidity to small businesses and the health care sector after obtaining the approval by the member states and the European Parliament.
Recently, on 2nd April, the Commission launched a new initiative called SURE - Support mitigating Unemployment Risks in Emergency, a new instrument which will provide up to €100 billion in loans to the countries in need to help that workers receive an income and businesses keep their staff. In addition, the Commission proposed measures to mobilise funds from different instruments of the EU budget - including structural and cohesion funds - for the response to the COVID-19 crisis.
Other EU institutions and bodies have announced measures in response to the COVID-19 crisis. The European Central Bank announced a new purchase programme of €750 billion to buy government and company bonds, calm down sovereign debt markets and ensure stability on the financial markets. The European Investment Bank Group proposed a €40 billion response plan that includes bridging loans, credit holidays and other measures designed to alleviate liquidity and working capital constraints for SMEs and mid-caps.
The European Commission established a coordinating response team, composed of the commissioners responsible for the most affected policies. In this team, Commissioner Thierry Breton is in charge of the internal market.
For further info please consult the webpage of the Commission’s Coronavirus response – Economic measures.
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