A common financial pot, the Euro countries – a kind of unemployment-insurance – could help the Eurozone, according to a study, in times of crisis to stabilize. A member of the strong rise in the unemployment rate to get a such EU funds help in the short term, payments, support for national unemployment insurance and to counteract at the same time, a Domino effect to the detriment of other States. The result of an on Tuesday published analysis of the Munich-based Ifo Institute commissioned by the Bertelsmann Foundation.
The study is based on data from the years 2000 to 2016. In this period, such an EU would be able to absorb funds, a quarter of the income losses in the Euro area, caused by unemployment. “The Instrument of a European unemployment reinsurance could stabilize the Euro area in the most serious of crises significantly better than national protection mechanisms,” the authors write.
The individual countries would have to contribute in times of decreasing unemployment, according to the Ifo model into the pot, in a crisis, they received funds. There should be no permanent Transfers from the economically strong countries to the weaker. The model does not provide a uniform unemployment insurance, but the formation of a joint reserve.
the aim is not to level differences in the level of unemployment benefit, among the 19 Eurozone countries, but economic downturns cushion. Of them would have been able to benefit in the past, Germany: according to The analysis in 2003 would be closed due to a rise in unemployment to 2.5 billion euros from the Fund to Germany, the researchers calculated.
the Federal Finance Minister, Olaf Scholz (SPD) had proposed in October, the cornerstones for a European unemployment Fund, but was met with broad rejection. According to his ideas, the national unemployment insurance could get yourself in serious crises in the Fund’s money, no benefits cut.