EU to raise 100B euros to tackle virus unemployment

The European Commission has designed a new programme to raise up to 100 billion euros in loans to tackle the unemployment induced by the novel coronavirus epidemics and weather the impact of the economic crisis looming.

Dubbed SURE - Support to mitigate Unemployment Risks in an Emergency - the tool has been designed to provide financial assistance through a lending scheme from the EU to the 27 member states. The 100 billions of loans should be backed by 25 billions of guarantees committed by member states to the EU budget.

"In this coronavirus crisis, only the strongest of responses will do," European Commission president Ursula von der Leyen said in Brussels on Thursday.

Meanwhile, the European Union's top court ruled on Thursday that the Czech Republic, Hungary and Poland broke EU law by refusing to comply with a refugee quota programme launched after as well over a million migrants entered the bloc, most fleeing war in Syria and Iraq.

In an emergency move in 2015, EU nations agreed to relocate up to 160,000 refugees from Italy and Greece as those two countries buckled under the migrant arrivals. Five years on, Greece is still struggling to manage the burden, with thousands of people held in deplorable conditions in the Greek islands.

That "temporary relocation mechanism" decision was made in a vote requiring about a two-thirds majority among the then 28 EU member countries. The Czech Republic, Hungary and Poland were among a small group of nations that voted against the move.

In the end, only about 40,000 refugees were relocated. The Czech Republic, Hungary and Poland took in almost none over the two years the scheme was in operation. The EU's executive arm, the European Commission, sought an explanation but they gave no satisfactory answers.

In its ruling, the European Court of Justice said that "by refusing to comply with the temporary mechanism for the relocation of applicants for international protection, Poland, Hungary and the Czech Republic have failed to fulfil their obligations under European Union law."

The three had argued that EU countries alone are responsible for ensure public safety and not the commission, which drew up the quota scheme and took the countries to court.

But the Luxembourg based ECJ said they "can rely neither on their responsibilities concerning the maintenance of law and order and the safeguarding of internal security, nor on the alleged malfunctioning of the relocation mechanism to avoid implementing that mechanism."

The failure of nations to take part in a burden-sharing measure meant to help EU partners in distress was at the heart of one of the bloc's biggest political crises. The issue of immigration then became a major vote winner for far-right parties.