Covid-19 Support Package for Entrepreneurs: An Update from Poland

Corona Virus

We are happy to share with you an update on the Covid-19 support package that Poland is creating to support entrepeneurs fighting the impact of the corona pandemic. Our guest auhor P. Kamil Rosiak is Attorney-at-Law & Partner Associate at KPMG D.Dobkowski LP in Warsaw.*

On 28 March 2020 the lower house of Polish parliament (Sejm) passed a bill (so called “Anti-Crisis Shield”) which introduces solutions supporting Polish entrepreneurs in connection with the epidemic of coronavirus. The support package is valued by the government at PLN212 billion and consists of five pillars: protecting employment and healthcare, financial system stability, support for business and for public investments.

The main elements of the support include:

  • the possibility to issue by Bank Gospodarstwa Krajowego (BGK) sureties and guarantees for repayment of the loans granted to the medium-sized and large enterprises which are destined to assure financial liquidity; such sureties and guarantees may be considered as state aid;
  • suspending in some extend the application of public procurement rules, of the Construction Law and of the Sunday Trading Ban;
  • the management and supervisory boards of all companies can meet and confer via means of direct communication or vote by written ballot;
  • tenants’ obligations resulting from the lease contracts at a shopping malls of an area larger than 2,000 sq. m., have been suspended during the state of epidemic threat or state of epidemic, such tenants will be released from obligation to pay the rent in case if following the end of the epidemic they declare to lease the premises during additional six months;
  • the simplified procedures related to limitation, apportionment or redemption of the rent due by the entrepreneurs for the period of the epidemic to the public entities;
  • more flexible financing of new technologies in form of the loans and bonuses for new technologies for SMEs (including removal of the limit of PLN 6 million which currently applies to bonuses for new technologies);
  • co-financing employee salaries during economic work stoppage or working time reduction applied as result of COVID-19;
  • releasing some of the self-employed and of the micro-enterprises from paying social insurance contributions for three months;
  • payment of downtown benefits of ca. EUR 440 to the persons on civil law contracts and to the self-employed who meet specific criteria;
  • extension of state-financed 14-day benefit for parents of children under eight, whose schools were closed due to the COVID-19 threat;
  • possibility to introduce flexible working time, suspension of an obligation for employees to undergo periodic medical checks;
  • automatic extension of work permits and of the legal period of stay of foreigners;
  • extension of deadlines for introducing registration with the Central Register of Beneficiaries as well as for filing some reports required by certain acts of law;

The details of the support measures likely will be subject to changes by the upper house of parliament (Senate). Its debates started today and will finish probably tomorrow to be sent back to the Sejm for the final approval.

 

Stay tuned for further updates and reports from other countries!

 

——————————
* A version of this report will be published in a future issue of the European State Aid Law Quarterly.

Tags

About

P. Kamil Rosiak is Attorney-at-Law & Partner Associate at KPMG D.Dobkowski LP in Warsaw.

Leave a Reply

Related Posts

11. Jun 2020
Guest State Aid Blog by Erika Szyszczak

When State Aid Gets Political

We are happy to receive a guest comment on the EU – UK post-Brexit trade negotiations from Professor Emerita, Erika Szyszczak, who is a Fellow of UKTPO at the University of Sussex. This is a longer version of an earlier Blog published on the UKTPO website. Control over State aid is a stumbling block for the future of an EU […]
19. May 2020
State Aid Uncovered by Phedon Nicolaides
Money in Hands

No New Aid to Undertakings that Have not Yet Repaid Incompatible Aid

There is no rule in EU law obliging Member States to grant State aid. The European Commission may refuse to authorise aid until previous aid that was found to be incompatible with the internal market is paid back. Temporary Framework: Number of approved covid-19 measures, as of 16 May 2020: 125* Legal basis: Article 107(2)(b): 10; Article 107(3)(b): 105; Article […]
14. May 2020
Guest State Aid Blog by Wout De Cock
corona virus

Belgium and COVID-19: The European Commission Approves Several Belgian State Aid Measures

We are happy to share with you an update on the Covid-19 measures that have been approved in Belgium. Our guest auhor Wout De Cock is a PhD candidate at the Vrije Universiteit Brussel and part-time teaching assistant at the Katholieke Universiteit Leuven.* Introduction In issue 1/2020 of the European State Aid Law Quarterly, we concluded that the European Commission […]
12. May 2020
State Aid Uncovered by Phedon Nicolaides
Road sign "Wrong Way"

Advantage Must be Proven, Not Assumed

The European Commission has to consider whether the private investor principle is applicable in cases of state investments. It is for Member States to prove that their investments conform with the private investor principle. Temporary Framework As of 9 May 2020, the European Commission had approved 113 State aid measures to combat covid-19. Their legal basis was: Article 107(2)(b): 10; […]
05. May 2020
State Aid Uncovered by Phedon Nicolaides
corona virus poster

Non-recovery of Incompatible State aid Is Costly

Legal and practical difficulties in the recovery of incompatible State aid do not constitute justifiable “absolute impossibility”. Temporary Framework On 1 May, the total number of State aid measures to combat covid-19 approved by the European Commission reached 102. Their legal basis was: Article 107(2)(b): 9; Article 107(3)(b): 86; Article 107(3)(c): 7   Introduction The 2020 Temporary Framework for State […]
27. Apr 2020
State Aid Uncovered by Phedon Nicolaides
corona virus poster

Identification of Undertakings in Difficulty

A company is in difficulty if, in practice, its accumulated net losses exceed 50% of its subscribed capital, regardless of whether the subscribed capital is formally written down. The classification of a company as being in difficulty is independent of the sector in which it operates and of whether a private investor would be willing to invest in it. Also […]
20. Apr 2020
State Aid Uncovered by Phedon Nicolaides
Football ball on a field

How to Price a Guarantee

The pricing of a guarantee must take into account not only the financial situation of the borrower but also the value of any collateral.   Join our live webinar on Applying State Aid Law in the UK Now on 23 April! Leading State aid experts Jonathan Branton, George Peretz QC and Alexander Rose work through the current EU State aid rules as they […]
17. Apr 2020
Guest State Aid Blog by Michail Kamperis
Corona Virus

COVID-19 Measures Adopted and State Aid Measures (Hopefully) to Be Adopted: An Update from Cyprus

We are happy to share with you an update on the Covid-19 measures that are or will be adopted in Cyprus. Our guest auhor Michail Kamperis is a lawyer and partner at the law firm of Ierotheou, Kamperis & Co. LLC Nicosia, Cyprus. * Sign up for our free news alert  Sign Up For Free   Cyprus is one of […]
14. Apr 2020
State Aid Uncovered by Phedon Nicolaides

Errors in State aid Procedures Need not Result in Annulment of a Commission Decision

Interested parties have a right to know how the compatibility of aid with the internal market is assessed. Temporary Framework developments As of 13 April 2020, the European Commission had authorised 51 measures adopted by 23 Member States. According to the statement of the Eurozone finance ministers of 9 April 2020, Member States had provided liquidity in the form of […]
09. Apr 2020
Guest State Aid Blog by Lexxion Publisher
Woman sitting by the computer

Follow Up Webinar with Phedon Nicolaides on ‚COVID-19 and State Aid Law‘ on 20 April

The European Commission is working on quickly adapting the existing State aid legal framework to address the current Covid-19 pandemic. Join us on 20th April from the comfort and safety of your (home) office to get an insider update on the Covid-19 response by State aid experts from the European Commission and national governments. ✓ Join from wherever you are – […]