A European unemployment, reinsurance scheme revisited

This paper revisits the idea of a European unemployment scheme at a time when it is not a political priority and unemployment rates are relatively low. However, major economic transformations—linked to technology, climate change and global instability—could trigger significant job losses that many countries may struggle to absorb alone. The experience of the COVID-19 crisis showed that EU-level support, notably through temporary job protection measures, can effectively limit unemployment and support incomes. Building on this, the authors argue for a permanent European reinsurance mechanism to help countries respond to future shocks. Such a tool could strengthen both economic stability and social cohesion, while reinforcing trust in the European project. The paper explores the rationale, past experiences and policy options for designing such a scheme.