Juncker supports EU unemployment insurance
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European Commission President Jean-Claude Juncker signals his support for the idea of EU unemployment insurance. It could help to cushion sudden economic crises in one country. However, he makes a restriction.
Dhe president of the EU Commission, Jean-Claude Juncker, supports the efforts for a European unemployment insurance and makes it clear that the EU has already made a proposal for their funding: "It must not be that an EU country in the event of a crisis without fault Juncker WORLD AM SUNDAY had to cut unemployment benefits because of rising unemployment. Rather, it was important "that in crisis situations not the wrong end is saved, ie in terms of investment, education and unemployment benefits," said the head of the commission.
Juncker advocated support for national unemployment insurance systems from Europe in the event of an economic crisis. But he limited: "Although I am very much in favor of a European unemployment insurance, it must not be a free ticket for countries that do not implement reforms and thus get into trouble."
To finance such unemployment insurance, Luxembourg 's longtime Prime Minister said: "The Commission has proposed two instruments in the draft medium – term financial programming – 25 billion euros to finance structural aid programs and 30 billion euros for a countervailing mechanism against asymmetric external shocks, including reinsurance for national employment insurance. "
Scholz also had plans for insurance
This instrument could help to "cushion sudden economic crises caused by external developments in one country and thereby reinsure the national social security systems in Europe".
Federal Finance Minister Olaf Scholz (SPD) had already submitted plans for a European unemployment insurance in mid-October. According to this, EU countries should feed a "European Unemployment Stabilization Fund" (EUSF) with contributions that are based on economic power (GDP). According to the plans, a national unemployment insurance could then lend if the country in question is hit by an economic crisis.
Note: In an earlier version it was said that Jean-Claude Juncker had called for the introduction of a European unemployment insurance. We apologize for this inaccuracy.