London (CNN Business) The European Union is preparing fresh action to support workers as layoffs within the bloc skyrocket.

The European Commission on Thursday proposed a new €100 billion ($109 billion) relief initiative that will provide loans to member states who need funds to support jobs . The Commission plans to use the European Union's strong credit rating to tap financial markets and then lend the funds cheaply to member states.

The program is meant to encourage companies to reduce employees' hours instead of laying them off completely, a model used in Germany. Workers would receive compensation for hours not worked.

"In this coronavirus crisis, only the strongest of responses will do," Commission President Ursula von der Leyen said in a statement. "Every available euro in the EU budget will be redirected to address it."

The loans would be guaranteed by member states and "directed to where they are most urgently needed," according to the Commission. The measure still requires approval from the bloc's 27 members.

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