EU SURE Social Bond Framework

Summary:

Document adopted by the European Commission on 7 October 2020, setting out a framework allowing for the issuance of its SURE bonds worth up to €100 billion, as social bonds.

Further information:

Council Regulation 2020/672 - also known as SURE Regulation - lays down the legal framework for providing EU financial assistance to Member States, which are experiencing, or are seriously threatened with, a severe economic disturbance caused by the COVID-19 (coronavirus) outbreak. Support under SURE serves for the financing, primarily, of short-time work schemes or similar measures aimed at protecting employees and the self‐employed and thus reducing the incidence of unemployment and loss of income, as well as for the financing, as an ancillary, of some health-related measures, in particular in the workplace.

The Social Bond Framework is an independently evaluated document which is aimed at providing investors with confidence that the funds mobilised are to serve a truly social objective. The funds raised are to be transferred to the beneficiary Member States in the form of loans to help them cover the costs directly related to the financing of national short-time work schemes and similar measures as a response to the pandemic.

Official

European Commission: Press Release, 07/10/2020: European Commission to issue EU SURE bonds of up to €100 billion as social bonds https://ec.europa.eu/commission/presscorner/detail/en/ip_20_1808

European Commission: Q&A, 07/10/2020: Questions and Answers: European Commission to issue EU SURE bonds of up to €100 billion as social bonds https://ec.europa.eu/commission/presscorner/detail/en/qanda_20_1809

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