This report was drafted in the framework of a study commissioned by the European Commission to assess the feasibility and the value added of introducing a European Unemployment Benefit Scheme (EUBS). This would be a specific form of a supranational automatic stabiliser which, with its focus on the labour market and its link to cyclical developments, could help to achieve macro-economic stabilisation and social outcomes in case of economic shocks, particularly if these are asymmetric, i.e. sustained by only a few countries. The stabilisation, 'shock-absorbing' effect of an EUBS would essentially lie in the fact that it would break the cycle of shock-hit countries having to impose extra spending cuts or increased taxes to offset falling revenues and rising unemployment expenditure. As per instructions in the study's terms of reference, 18 different types of EUBS are examined in this research project. The objective of the present report is to investigate the feasibility of an EUBS in terms of compatibility with national laws and practices; how would such a stabiliser articulate with the national legal and administrative frameworks, and which would be the main (legal, operational) barriers to introducing such a scheme? This investigation forms part of a complementary and multi-disciplinary analysis of the EUBS involving, among other things, a review of existing realities in selected federal states, an in-depth analysis of different dimensions determining the design of a hypothetical EUBS, an examination of the compatibility of the EUBS with the treaties (legal feasibility at European level) and, using macro- and micro-simulations, a study of the value added of the EUBS in terms of stabilisation and social outcomes. The findings of this report, along with the results of some of the other abovementioned analyses, will feed into a roadmap, indicating what action (by whom) would be needed, in which timeframe, for the different EUBS options to possibly be implemented. The project outcomes, including of the econometric analysis, will moreover be summarised in fiches showing the features of the different EUBS types and outlining their economic and legal and operational impact.
