#Don't sign that paper!
Don't sign that paper!
I don't know the rules of your specific country but resigning would be treated very differently to being made redundant/sacked in a lot of places when it comes to claiming any benefits.
You said that this was in Europe, if it's within in the EU you might just be giving them an easy pass to get rid of you anyway while avoiding normal employment rules. No responsible company would expect this of you. If I was in your shoes I would be polishing up my CV and looking to get out of there as fast as possible.