This paper explores the stabilization properties of a European Unemployment Insurance (EUI) scheme, inspired by the Temporary Support to Mitigate Unemployment Risks in an Emergency (SURE) program introduced during the COVID-19 crisis. The EUI is proposed as a partial coverage mechanism, similar to SURE, to stabilize household incomes and mitigate economic shocks. The study uses the NiGEM macroeconometric model to simulate the impact of such a scheme on consumption, GDP, and unemployment in eleven Eurozone member states from 2000Q1 to 2021Q4. The results indicate that a limited-size transfer system like the EUI could significantly contribute to stabilizing economic developments, reducing the amplitude of national cycles and increasing synchronization across member countries. The paper also discusses the design and characteristics of the simulated EUI, including its trigger mechanisms and financing options. The analysis highlights the potential benefits of a supranational automatic stabilizer, particularly in the context of the Eurozone, where market failures and low labor mobility pose significant adjustment challenges.This paper explores the stabilization properties of a European Unemployment Insurance (EUI) scheme, inspired by the Temporary Support to Mitigate Unemployment Risks in an Emergency (SURE) program introduced during the COVID-19 crisis. The EUI is proposed as a partial coverage mechanism, similar to SURE, to stabilize household incomes and mitigate economic shocks. The study uses the NiGEM macroeconometric model to simulate the impact of such a scheme on consumption, GDP, and unemployment in eleven Eurozone member states from 2000Q1 to 2021Q4. The results indicate that a limited-size transfer system like the EUI could significantly contribute to stabilizing economic developments, reducing the amplitude of national cycles and increasing synchronization across member countries. The paper also discusses the design and characteristics of the simulated EUI, including its trigger mechanisms and financing options. The analysis highlights the potential benefits of a supranational automatic stabilizer, particularly in the context of the Eurozone, where market failures and low labor mobility pose significant adjustment challenges.