Which countries have a high demand for CA.

Government circles - Great demand from EU countries for short-time work benefits

By Reuters Staff

Berlin (Reuters) - According to German government circles, the EUR 100 billion aid fund for short-time working benefits from the EU is largely planned.

Over 90 billion euros have already been allocated, but not yet paid out everywhere, said German government representatives on Friday. "That's the big hit." Most of the aid would go to Italy, one of the EU countries hardest hit by the corona pandemic. Over 20 billion euros of a good 27 billion committed funds have already been transferred to Italy. Spain followed in second place, followed by Poland.

The short-time work benefit program SURE is part of a total of 540 billion euros Corona aid package from 2020. In addition to short-time work benefits based on the German model, it also includes loans from the European development bank EIB for small and medium-sized companies as well as loans to EU countries from the ESM rescue fund . For this, 200 and 240 billion euros are earmarked. The EIB loans are currently running. So far, there have been no applications for the ESM emergency loans.

States like Italy fear stigmatization if they use ESM funds. In the crisis, you are instead relying on money from the EU's corona reconstruction fund, which was later decided and worth 750 billion euros. Here, countries can get a considerable part of the money in the form of grants, which then do not have to be repaid. However, the implementation of the plans is dragging on. Experts do not expect the first funds to be paid out before early summer.