Source: European Parliament
SURE is part of an EUR 540 billion package to support EU firms and workers affected by the coronavirus pandemic.
According to the Commission’s draft proposal of 2 April 2020, financial support under SURE will take the form of EU loans to Member States which request assistance. In order to finance the loans to the Member States, the Commission intends to borrow on the financial markets. The Commission would then grant loans to the Member States on favourable terms.
Article 311 TFEU explicitly states that the budget must be financed ‘wholly from own resources’. That means: no debt financing. If the Commission borrows on the financial markets, however, that clearly constitutes debt financing.
How does the Commission reconcile borrowing on the international financial markets with the provisions governing the funding of a Commission financial instrument laid down in Article 311 TFEU?