Is it time for a European unemployement (re)insurance?

Combating unemployment is one of the objectives of the European Union’s (EU) social and economic policies, as evidenced in particular by the European Pillar of Social Rights. Employment and, conversely, unemployment are key indicators for understanding a country’s social problems and well-being.

EU action in these areas may be necessary if cyclical internal problems or external shocks undermine the social protection systems of Member States. A project to create a permanent European unemployment (re)insurance scheme is therefore being considered, with a view to establishing a common fiscal capacity capable of coping with asymmetric shocks and strengthening solidarity between Member States, and thus the social dimension of the EU.

The crisis caused by the COVID-19 pandemic and its economic and social consequences have reignited the debate on the adoption of such an instrument. In response to the health situation, and with a view to supporting and coordinating the action of Member States, the EU has adopted Council Regulation (EU) 2020/672 on mitigating the risks of unemployment in the emergency situation caused by the spread of COVID-19, also known as the ‘SURE Regulation’, enabling it to provide financial assistance to Member States that are facing or are threatened with serious economic disruption caused by the pandemic.

In this context, the aim of this study is to understand the potential for transferring the SURE Regulation to a permanent unemployment (re)insurance system by analysing the constitutional issues underlying the possibility of establishing such a scheme.