Regional Update

CEE Covid-19 & Political Overview

28 APRIL – 31 MAY 2021

Table of Contents

CROATIA ...... 3 CZECHIA ...... 5 HUNGARY ...... 7 POLAND ...... 9 ROMANIA ...... 11 SLOVAKIA ...... 13

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CROATIA (prepared by CEC's Croatian partner - Vlahovic Group) COVID-19:

• Given the number of active COVID cases dropped by 75% over the past 30 days (from 12,032 to 2,968), as of 28 May, significant easing has taken place: restaurants are allowed to serve guests indoors, the ban on private gatherings and ceremonies is revoked, wedding parties can have up to 120 guests (all participants shall be inoculated, tested or have proof they recovered from COVID-19), up to 100 people are allowed at public gatherings instead of 25, the limit of a maximum of 40% occupancy in public transport is lifted. More than 33% of the adult population was vaccinated with at least one dose. As for the EU green passport regime which is to enter into force 1 July, PM Plenkovic said it is very important for Croatia as a tourist destination and added that for the transition period he agreed with the PMs of Slovenia, Hungary, the Czechia, Slovakia, Poland and Austria to organize the movement of people according to the current concept: negative COVID test, certificates of overcoming COVID or vaccination certificate. Croatia is fully ready for the introduction of the COVID passports, being among the first EU countries that developed an interoperable platform.

Business and economy:

• In the spring forecast, the European Commission slightly reduced the estimate of the growth of the Croatian economy for this year to 5% (from 5.3% in the winter) and significantly increased the forecast for next year to 6.1% (from 4.6%). The EC believes that Croatia's GDP will exceed the level pre-pandemic. The Croatian economy fell 8% last year and the budget deficit amounted to 6.8% of the GDP. In May, Fitch Agency reaffirmed Croatia's investment credit rating of 'BBB-' and a stable outlook, noting high short-term risks associated with the pandemic, but also a better medium-term outlook for economic growth thanks to EU financial support. • The average net salary in Croatia in March 2021 amounted to HRK 7,138 (approx. EUR 952), which is nominally higher by 6.3% on an annual level. At the end of April, unemployment was reduced to 10,490 compared to April 2020. The Croatian Pension Insurance Institute data show that the number of insured persons at the end of April increased to 1,557,687, which is 37,097 more than in April 2020, but also 12,162 more than in April 2019. • A procurement procedure for granting a 50-year-period concession for the container terminal in the Port of Rijeka is completed – only one bid was submitted, by the Dutch APM Terminal BV in cooperation with the Enna Logic company from Croatia. A previous tender advertised in December, for which two bids were received, was cancelled. That time, one more bid was in play that came from the Chinese Ningbo Zhoushan Port Company Limited, Tianjin Port Overseas Holding Limited and China Road and Bridge Corporation.

Politics and legislation:

• The Croatian government has announced the decision on the procurement of 12 used fighter jets F3R Rafale. The entire package would cost €1 billion. The oldest jet delivered to Croatia

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would be ten years old and all should be delivered to Croatia by 2025. The other bids were submitted by the U.S. for the new F-16 Block and Sweden for JAS-39 Grippen. • PM Plenkovic received Yang Jiechi, director of China's Central Foreign Affairs Commission Office. Plenkovic said the framework for China's cooperation with CEE had valuable potential as a unique initiative for building bridges, complementary to EU-China relations. Yang said China too supported the continuation of the cooperation with CEE countries based on market principles in order to create mutually beneficial projects. Plenkovic and Yang said they were pleased with the continuation of big projects in Croatia, such as the Pelješac Bridge and other investments, from the construction of the transport infrastructure to investment in renewables. Plenkovic invited President Xi Jinping to visit Croatia next year, on the 30th anniversary of Croatia-China diplomatic relations, and see the Pelješac Bridge, which will be built by then. • PM Plenkovic met with European Council President Charles Michel and Home Affairs Commissioner Johansson, who expressed strong support for Croatia's entry into the eurozone and the Schengen area as soon as possible. PM Plenkovic said that he expects a consensus on the matter among the Member States during Slovenia's EU Presidency which is starting on 1 July. Slovenian PM Jansa said his country also supports „the Schengen entry of Croatia, Bulgaria and Romania as it would strengthen security in Europe”. • The government will prepare amendments to the Trade Act to limit work on Sundays in retail; the exception of 16 Sundays a year will be left to employers which takes into account Croatia as a tourist country, the economy and partly consumer habits, and on the other hand achieves a balance of business and family life, according to the government. • The Croatian MFA met with his Spanish counterpart and expressed interest in joining the alliance of Mediterranean countries MED 7 or EuroMed 7, a group made up of Spain, Portugal, France, Italy, Greece, Cyprus and Malta. “Prime Ministers of the alliance are meeting in the autumn on Crete and Croatia, as a Mediterranean country, has all the prerequisites to be part of that club”, the Croatian Foreign Minister said.

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CZECHIA (prepared by the CEC Government Relations office in Prague)

COVID-19:

• 15 385 active cases, 1 615 008 recovered, 30 088 decreased (as of May 28) • The pandemic situation in Czechia continues to improve and Covid-related hospitalizations are declining, currently at 669, of which roughly 123 are in serious condition, according to the latest data from the Ministry of Health • As of Monday 31 May, the indoor areas of restaurants, as well as bars, casinos and music clubs will open (these establishments will be open under strict conditions and hygiene and police checks will be intensified). At the same time, swimming pools, saunas, salt chambers and wellness facilities will be open to the public • The government has decided that starting in June, people will be eligible for coverage under public health insurance for 2 PCR tests and 4 antigen tests per month. • It will be possible to travel between the Czech Republic and Hungary, Germany, Poland, Austria, Slovakia, Slovenia and Croatia without restrictions after the first vaccination dose • Czechs with their first dose of the vaccine will also avoid having to prove a negative test when returning to their country from countries at medium and high risk of infection. • From Tuesday 1 June, anyone age 16+ can register for a vaccination • Children between 12 and 15 years of age could start getting vaccinated in the coming weeks. • EU Member States and MEPs have already agreed on the form of covid passports. The system is likely to be in place by the beginning of July.

Business and economy:

• On 17 May, the Czech government approved its National Recovery Plan worth CZK 200 billion (EUR 8 billion), which largely focuses on infrastructure and green development. The plan aims to help the country revive and modernize the economy after the COVID-19 crisis. Investments are planned in greener modes of transport, healthcare, high-speed internet networks and new pre-school care facilities. Climate-related projects account for 41% and digitization for 23% of the plan, as per the Commission’s set targets. The plan has yet to be approved by the European Commission and the Council of the EU. • The unemployment rate in Czechia fell slightly from 4.2% in March to 4.1% in April, according to the latest data from the Labour Office. This is the lowest rate of unemployment registered since December. The number of job seekers fell by almost 9 000 to 297 876 compared to March, while the number of vacancies rose by 4 500 to 343 407. The number of places has also increased by more than 10 000 compared to April last year. The number of unemployed increased by almost 44 000 year-on-year. According to the director of the Labour Office, Viktor Najmon, the coming spring period has seen a demand for seasonal jobs. Minister of Labour and Social Affairs Jana Malacova said that the government’s COVID-19 compensation package ‘Antivirus’ support programme helped mitigate unemployment.

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Politics and legislation:

• Update on diplomatic spat with Russia: On 2 May, a week after the investigation of Russia’s involvement in the 2014 explosion in Vrbetice went public, President Zeman issued his statement in a televised Sunday program for CNN Prima News, neither confirming nor denying the allegations, but rather stating that a deeper analysis is necessary, “should the suspicion be justified, I support fair relations with all major countries, and the Russian Federation needs to pay for this possible terrorist act - for example, by Rosatom's non-participation in the Dukovany tender," stated Zeman. Opposition parties criticized the President for a not tough enough approach. On 4 May, Seznam Zpravy reported that Minister of the Interior and Deputy PM Jan Hamacek (CSSD) may have scheduled his mid-April trip to Moscow to discuss the potential procurement of 1 million Sputnik V vaccines in exchange for dismissing the investigation results about Russia’s involvement in Vrbetice which was to go public shortly after. This conclusion was made on the basis of reports from internal government members who attended a closed meeting with Minister Hamacek ahead of his trip. Both Minister Hamacek and PM Babis denied such a connection, with the PM stating he was neither aware of Russia’s involvement in the explosion, nor of Minister Hamacek’s plans to travel to Moscow to silence the investigation. This type of “vaccine diplomacy” was heavily criticized by opposition parties which requested an emergency meeting of MPs to discuss the details of Minister Hamacek’s trip, which did not reveal any significant findings and resulted in further finger-pointing. As a reaction to the article published by Seznam, Deputy PM Hamacek decided to file a civil complaint against Seznam. • On April 23, the European Commission published the final results of a years-long audit process of EU subsidies granted to Babis-founded Agrofert holding. According to the conclusions of the European Commission the PM continues to influence the multi-billion corporation Agrofert he established, even after he was forced to place it into trust funds to meet a strict new national conflict of interest law. Agrofert should repay the estimated EUR 11 million for the subsidies the company has received since 2017. “The audit brings nothing new. These are repeated lies of the auditors' mafia organised by informants from the Pirate Party,'' stated PM Babis who remains adamant that Czechia will not be returning any funds to the EU. Minister of Finance Alena Schillerova and Minister of Regional Development Klara Dostalova (both for ANO) backed PM Babis, arguing that Agrofert did not break any Czech law, when it received the EU subsidies. The probe into the case of Agrofert, however, might not be an end to the Commission's investigation in Czechia. Vice President of the European Commission for Values and Transparency Vera Jourova stated that the Commission is planning to investigate whether its rules regarding conflict of interest are being regularly breached in Czechia. If such a systemic problem were to be confirmed, it could mean that Czechia would lose access to all EU funds. The tool that could enable this move is still a relatively new regulation on rule of law conditionality, which states that EU budget payments can be withheld from countries in which established breaches of the rule of law compromise management of the EU funds. • Czechia saw the fourth change on the seat of the Ministry of Health within a year, when Petr Arenberger resigned at the end of May. Mr Arenberger is leaving office after less than two months. In recent weeks, he has faced criticism for withholding information about his property. President Zeman then appointed Adam Vojtěch as the new Minister of Health on Wednesday 26 May at Prague Castle. Vojtěch already directed the ministry from 13 December 2017 to 21 September 2020.

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HUNGARY (prepared by the CEC Government Relations office in Budapest) COVID-19:

• There are 448 newly identified cases; deceased: 28. Coronavirus related numbers are continuously improving. Epidemic experts declared that the third wave of the epidemic has been defeated.

Business and economy:

• Hungarian GDP: Contrary to expectations, Hungary’s GDP grew by 1.9% in the first quarter of 2021 compared to the previous quarter. Hungarian economic output contracted by an annual 2.3% in the first quarter according to the raw data and dropped by 2% calendar-year effects adjusted. According to the seasonally and calendar-adjusted and balanced data which was taken into account in the EU comparison, the volume of GDP in the first quarter of this year was 1.8% lower than a year earlier, when growth was 2.1%. Minister of Finance Mihály Varga noted that with a 1.9% GDP growth, the Hungarian economy achieved the highest growth rate in the EU, based on the data published so far, compared to the previous quarter. According to Varga, growth is expected to be at least 4.3% annually, and even stronger next year, so the recovery may be faster than expected. As a result of the positive first quarter data, analysts have improved their previous forecast. They expect economic growth to be between 5-7%this year. • National Bank of Hungary (MNB) is expected to increase the basic interest rate in June: The National Bank of Hungary (MNB) is considering raising the base rate in June, deputy governor Barnabás Virág said in an interview. Inflation risks have clearly risen since March, therefore monetary policy would enter a new phase from June as the economy fully reopens, Virág said. The central bank would adjust short-term rates proactively to tackle rising inflation risks, he added. MNB’s next quarterly Inflation Report, which is expected in June, will be critical in assessing risks. MNB has been continuously reducing the base rate since 21 December 2011. This would be the first increase in the past ten years. As a result of the announcement, the forint has started to strengthen against the dollar and the euro as well.

Politics and legislation:

• Hungary has reached 5 million vaccinated, as a result of which nearly all epidemic restrictions have been lifted: Hungary has reached five million vaccinated, thus lifting coronavirus restrictions has entered into a new phase. The nigh-time curfew has been completely lifted. Shops, restaurants and leisure facilities could be open after 11 p.m. Mandatory outdoor mask-wearing has been lifted. Restrictions on individual and team sporting events have also been lifted. Youth between the ages of 16 and 18 are allowed to go to restaurants and cinemas if they have an immunity certificate. Wedding receptions are limited to 200 people, while up to 50 people can attend private and family events. This restriction does not apply to wedding ceremonies or funerals. Outdoor events with less than 500 people can be attended without any restriction, with the exception of music and dance events which can be only attended by those with immunity certificates. Demonstrations can be held again up to 500

7 people. Bigger events may only take place if the participants have immunity certificates. Spontaneous gatherings are still prohibited. According to Prime Minister Orbán, Hungary has overcome the third wave of the epidemic. Free parking will end from 25 May and the credit moratorium will be extended until 31 August.

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POLAND (prepared by the CEC Government Relations office in Warsaw) COVID-19:

• Due to falling registration and vaccination rates, the government is planning to launch a lottery, which will encourage Poles to get their COVID-19 vaccinations. Currently, 18,389,807 vaccines have been administered and 5,855,700 persons received both doses. The lottery organized by the state-owned Totalizator Sportowy will include financial prizes of up to PLN 1 million, as well as cars and e-scooters. • The Polish government has decided to participate in the COVID-19 Passport pilot programme. According to Minister Michał Dworczyk, the pilot programme, which started on 20 May, lasted for five days and used artificial data to allow various usability tests. The end of the Polish pilot programme coincided with a special COVID-19 European Council summit during which further discussions on the matter took place. The European Commission hopes that the passport system will launch in June, however, there are still some details that need to be ironed out. Last week, the spokesperson for the Portuguese Presidency Ana Ascenção e Silva tweeted that the initiative received the green light, just in time for the summer break on 1 July. • PM Morawiecki has commented that the “sudden” removal of COVID restrictions in June is far from a certainty, and has reminded the public of the need to have continued regard for sanitary regulations. Currently, most restrictions have been lifted and the majority of businesses can now operate under a sanitary regime. The government is discussing the possibility of easing further COVID-19 measures.

Business and economy:

• On 15 May, the United Right ruling coalition announced its long-awaited economic development programme, called the Polish Deal. CEC Intelligence will provide ongoing political and economic analyses on the key proposals of this policy package in the coming days and weeks. The programme was presented by the leading politicians of the ruling coalition, including PM Mateusz Morawiecki, Speaker of the Sejm Elżbieta Witek, the leader of the PiS party Jarosław Kaczyński, and leaders of PiS’ junior coalition partners, Jarosław Gowin and Zbigniew Ziobro. The proposal is built around ten crucial aspects: health, labour and taxation, agriculture, education, digitalization, investments, entrepreneurship, family policy, climate and environment, and elderly-related policy. As expected, the Polish Deal is not a comprehensive step-by-step plan but rather a loosely connected set of policy and investment proposals. Still, the programme is likely to provide new impetus for the United Right and serve as its motor engine ahead of the next election season.

In particular, PM Morawiecki listed five key pillars of the coalition's proposal:

o Increase in total healthcare expenditures to the level of 7% of national GDP by 2027, o Reduction in taxation for 18 million Poles, o Investments that would generate 500,000 new jobs,

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o Mortgages with no own contribution and changes in the building code allowing to build a house of up to 70 sq. m without having to apply for a building permit, o Tax exemption of pensions lower than PLN 2,500. • Deputy Prime Minister and Minister of Development Jarosław Gowin announced that he will be starting consultations on the Polish Deal package's economic and tax policy proposals. Gowin primarily seeks to consult with entrepreneurs, trade and employers' unions. He underlined that he aims to protect the middle class from tax hikes – especially specialists, engineers, freelancers, and so-called self-employed entrepreneurs. Here, Gowin is clearly acting as leader of the Agreement coalition party, rather than part of the United Right monolith.

Politics and legislation:

• On 27 May, the Senate passed the EU Own Resources Decision ratification without amendments. 98 Senators voted in favour, with two abstaining. Initially, the opposition hoped to push the legislation through with an additional preamble, which specified how the National Recovery Funds would be distributed in Poland. However, the chamber came to a deadlock with 49 votes in favour and 49 against. As a result, the legislation will now be forwarded to the President for signature. The Senate also adopted an opinion outlining the principles for the distribution of the Recovery Fund. However, this opinion has little legal meaning and is primarily of a political nature. • The presentation of the Polish Deal has put the ruling United Right coalition on the political offensive. The main PiS party is already planning a series of conferences and meetings across Poland, which are supposed to promote the new policy package and mobilise the voter base. Commentators see the Polish Deal as a start to the 2023 election season. So far, by announcing its new policy programme, the United Right managed to heal some of its bruises and divert public attention away from the coalition tensions, which dominated the political discussion throughout 2021. While commentators are now focused on the Polish Deal, the ruling coalition is yet to regain its previous unity. However, for now, the 3 July PiS party congress will be the next major milestone for the ruling bloc. Though major changes are not expected, and Jarosław Kaczyński is set to win another term as the party’s leader, the congress should also result in a restructuring of the party, which itself fell victim to internal frictions between factions. Order within PiS has a chance to bring greater stability to the entire coalition. • For now, the Civic Platform (PO) remains the largest and strongest opposition party, which continues to shape opposition dynamics. However, tensions within the party have been accumulating for years. Commentators and party insiders have been criticising the party's leader Borys Budka quite openly. The recent decision to abstain from voting in favour of the EU Own Resources Decision ratification has further deepened the crisis, both internally and externally. Recently, 54 PO parliamentarians signed a letter calling for changes in the party and criticizing the current leadership. Late last week, two MPs Ireneusz Raś and Paweł Zalewski, were expelled from the PO for “acting to hurt the party”. Earlier this week, veteran PO politician and current MEP Róża Thun left the party. Factionalisms are also becoming more apparent as former PO leader Grzegorz Schetyna schemes against Budka and the popular Warsaw Mayor Rafał Trzaskowski considers his own political projects.It seems a defining moment has begun for PO leader Borys Budka, and bigger changes to the party are inevitable in the mid-term, commentators argue.

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ROMANIA (prepared by CEC's Romanian partner - Serban & Musneci Associates) COVID-19:

• The number of daily Covid cases dropped below 300. PM Florin Citu: “the third wave vanished. There is no reason preventing us from continuing the relaxation measures.” • The vaccination campaign slows down, the government launches a new communication campaign: The initial target of having 5 million people vaccinated by 1 June is far from being met, as this month the number of available doses was far greater than the demand. The slowdown of the vaccination campaign, missing the vaccination target did not prevent central authorities from continuing the lifting of social restrictions beginning 1 June. At the end of May, the government presented the new communication campaign, which focuses on public figures (including PM Citu).

Business and economy:

• PM Citu upholds Romania's 3%-of-GDP target for 2024: Romania’s PM Florin Citu said that the Government upholds the 3%-of-GDP public deficit target for 2024 and, in the short term, praised the voluntary compliance that pushed up the budget revenues to “record level” in April. Romania’s budget deficit is broadly expected at 7% of GDP on a cash basis and 8% under the ESA methodology. • FIC perception of the Romanian business environment confirmed by the economic forecast of the European Commission: The Spring 2021 Economic Forecast by the European Commission presents an improvement in growth prospects compared to the last winter forecast presented by the Commission in February. For Romania, the growth forecast of the economy was adjusted to 5.1% for 2021 and 4.9% for 2022, compared to the winter forecast which indicated an increase of 3.8% and 4%, respectively. According to FIC members, there is a feeling of moderate optimism about the direction in which their businesses will grow in the next period. This current positive perception can be explained by overcoming the uncertain times which characterized the previous months of the crisis and also by the vaccine occurrence and the success of recent vaccination campaigns. Investors’ confidence in the Romanian market is reflected in the answers regarding the investment plan for the next 12 months. More than half of the respondents (51.1%) expect investments to increase and only 13% will put them on hold. This result represents the highest score registered since the launch of BSI, companies surprising a maximum level of investments in the next year. • Romania's CFA macroeconomic confidence index at 6 years maximum: The CFA Romania Association's Macroeconomic Confidence Indicator has increased in May compared to the previous month to 70.7 points, the highest value in the last six years. "Both the overall indicator and its two components [current state and expectations] have reached, for the second consecutive month, the maximum post-crisis values, which indicates strong confidence in the recovery of the economy this year," said CFA Romania. • Romania’s banking system posts 15% y-o-y stronger profits in Q1: Romania’s banking system boasted RON 1.9 bln (EUR 383 mln) in the first quarter of the year, which was 17.3% (+15% in euros) more compared to the same period of 2020, according to calculations based

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on data released by the National Bank of Romania (BNR). Return on assets (ROA) was 1.33%, compared to 0.95% in the whole of 2020 and 1.27% in Q1 last year. • Central Bank: Annual CPI inflation rate to reach 4.1% in December: The annual CPI inflation rate will follow a pronounced upward trajectory in the coming months and will reach 4.1% in December, according to the Quarterly Inflation Report published by the National Bank of Romania (BNR) on May 14. The annual inflation rate reached 3.2% in April.

Politics and legislation:

• The government did not pass the PNRR through Parliament, opposition submits no- confidence motion: Romanian PM Florin Citu gave lawmakers in parliament, on 26 May, a speech on the Relaunch and Resilience Plan (PNRR) in an attempt to defuse pressures created by the opposition. However, dissatisfied with the fact that the government did not present the Plan in Parliament and refused to consult other political parties, the Social Democratic Party (PSD) pledged to submit a no-confidence motion on the topic of PNRR on 14 June. In principle, the government can count on sufficient support to survive the motion, which will be mainly used by the opposition to highlight the "austerity" measures planned by the Executive in relation to PNRR. The main speculations over austerity reforms include a revision of the public pension system – higher retirement age. Regarding the PNRR itself (including the list of reforms attached), the document will not become public before being sent to the European Commission, minister for EU projects Ghinea stressed. The government pledged to make public the documents on 2 June. "We will be among the few EU member states that publish the entire document," says Minister Ghinea. • Government calls for public pension reform: In the context of ongoing negotiations with the EC on the RRF allocations, PM Florin Citu confirmed the reform of the pension system. Asked about the elimination of the early retirement pension, Citu said: "You take fragments from the discussions. We do not have a broad plan presented so far. There was no discussion about early retirement or other pensions. The reform of the pension system is discussed, and the objective for this system is sustainability". • Prime Minister Florin Citu, Polish counterpart discuss trade, energy co-operation as priorities on bilateral agenda: On 21 May, Romania's Prime Minister Florin Citu had a telephone conversation with his Polish counterpart Mateusz Morawiecki, during which current items on the Romanian-Polish agenda - cooperation in trade and investment - were addressed along with the energy dimension that together with the continuation of close defence and security collaboration are priority items on the bilateral agenda. This discussion continues ongoing dialogue on the organization of a bilateral Government meeting in Warsaw this fall. • Romania's Liberals schedule Congress for September 25: The National Liberal Party (PNL) president, Ludovic Orban, announced that the proposed date for the party's Congress is September 25. What is at stake: elections for the new PNL leadership which could give NatLibs the top option for 2024 presidential elections.

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SLOVAKIA (prepared by the CEC Government Relations office in Bratislava) COVID-19:

• 4,182 conducted PCR tests (96 positive); 416 hospitalized; 13 deceased; 29,899 inoculated (2,469,258 vaccines used in total) (daily update) • As of 15 May, the government cancelled the emergency state although the extraordinary state remains in place. The epidemiological situation is constantly improving and the economy is re- opening based on regional principle. The number of inoculated persons is gradually growing although the government would still wish for bigger interest in vaccination • The government adopted the new updated COVID automat setting economic and social restrictions based on the epidemiological situation in different regions. Specific traffic light systems with guidelines for selected areas (e.g. sport, cultural events, transport and tourism) are attached to the new COVID automat. The Public Health Office also amended related decrees on the operation of establishments, mass events, covering of upper airways or hospital visits. • The government approved a new traffic light travel system for passengers arriving from abroad, entering into force on 31 May. The system provides a clear overview of the epidemiological situation in the countries of the world, which will be labelled as green, red, and black. It also defines simple, targeted, and feasible epidemiological measures in the form of quarantine and diagnosis tools. Green are countries with a good epidemiological situation and all EU member states are in this group. People arriving from green countries can choose between 14-day quarantine or RT-PCR/antigen test taken on the first day of isolation. Exemptions apply to inoculated persons and those that have recovered from COVID – details are set out in the respective decree.

Business and economy:

• The registered unemployment rate in April in Slovakia increased by 0.02 percentage point m- o-m to 8%. • GDP at constant prices grew by 0.3% y-o-y in the first quarter of 2021 • Fitch Ratings agency re-confirmed Slovakia’s A rating with a negative outlook.

Politics and legislation:

• The government approved additional €330 million to help employers and self-employed with the decline in sales due to COVID-restrictions. The First Aid subsidy package should thus last until the end of June 2021. • Employers and self-employed persons who have deferred payment of social security contributions for previous months will have to pay the due sums on new, later dates. Initially, these entities were to pay deferred premiums for all months by 30 June but a new government regulation gradually postponed this deadline, with premiums being paid gradually in 3-month intervals from 30 September 2021 to 30 September 2023.

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• The government approved finances for the large tourism state aid scheme that will receive an additional €37.2 million. Financial aid to cover fixed costs of tourism establishments should thus be available also to larger companies that exceeded the €200k limit.

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