INTRODUCTION

The COVID-19 crisis has rampaged across the European Union over the last two weeks and has already left a very different Union in its trail. The European institutions have entered an effective lockdown, national borders have been re-erected and financial institutions are preparing for an economic slowdown to rival that of the 2008 financial crisis. Initially accused of being slow to react, the European Union and its member states have sprung into action over the few weeks and launched a series of major countermeasures at both the Union and national level. These measures have touched issues across the board ranging from national lockdowns, to school closures, to new state aid measures to help those impacted by the crisis to an injection of some 750 billion euros into the economy. Whilst the member states remain responsible for national health issues, COVID-19 and its impact across the board has meant that the EU has had to be involved. This remains the start of this crisis which promises to go on for some months and it is certain that the situation will remain fluid for some time. This paper gives an insight to the measures taken at the European, national and global levels over the last week and is accurate at the time of writing. However, given the speed with which developments are proceeding, it is likely that the situation will have changed once again by the end of the weekend.

➢ GLOBAL OUTLOOK

➢ EUROPEAN UNION

➢ TIMELINE: MARCH 16-20

➢ MEMBER STATES

GLOBAL OUTLOOK

The week began with UN Secretary General Antonio Guterres calling for a global ceasefire to protect the most vulnerable people, considering the catastrophic impact that the spread of the virus could have in conflict areas. "The virus does not care about nationality or ethnicity, faction or faith", SG Guterres said, "It is time to put armed conflict on lockdown and focus together on the true fight of our lives".

Meanwhile, the leaders of the G20 held a virtual meeting on March 26 resulting in a statement released following the meeting, G20 Leaders remarked that fighting the pandemic requires “a transparent, robust, coordinated, large-scale and science-based global response in the spirit of solidarity”. Combating it and addressing its health, social, and economic implications represents an “absolute priority”, and the G20 stands ready “to do whatever it takes”, the statement reads. Efforts will most notably focus on protecting lives; safeguarding people’s jobs and incomes; restoring confidence, preserving financial stability, reviving growth, and recovering stronger; minimising disruptions to trade and global supply chains; providing help to all countries in need of assistance; coordinating on public health and financial measures. To that end, cooperation with and support to the WHO and front-line international organizations will be key. On the EU’s side, European Council President Charles Michel and European Commission President Ursula von der Leyen participated in the videoconference. They echoed the call that “unprecedented events call for unprecedented action” and that a “fast, massive and coordinated global action” is the only way forward in tackling the present crisis. The Presidents also reiterated that “G20 countries should coordinate their macroeconomic policies, mobilising all instruments available, to mitigate the economic downturn, support workers and companies most affected” and that it is essential to ensure that trade flows and supply chains remains open. Furthermore, the Presidents commended the G20’s call for a global initiative on pandemic preparedness and response to be led by the WHO.

This had been preceded by a G20 Finance Ministers and Central Bank Governors meeting on March 23, which focused on the impact of COVID-19 pandemic on the global economy and coordinate their efforts in response to this global challenge. Among other things, they agreed to develop a joint G20 Action Plan in response to COVID-19, which will outline the individual and collective actions that G20 has taken and will be taking to respond to the COVID-19 pandemic. G7 Finance Ministers and Central Bank Governors met the following day and issued a statement saying that they would do "whatever is necessary to restore confidence and economic growth and to protect jobs, businesses, and the resilience of the financial system".

Meanwhile, the OECD followed up a report that it published on March 20 on policies aimed at providing effective care and managing the pressure on health systems in the context of the COVID-19 outbreak, with a statement from their Secretary-General Angel Gurría calling for sweeping joint action by governments to defeat the health, economic, and social threats of the coronavirus pandemic. The OECD called for joint actions in the areas of healthcare, shoring up the economy, financial regulation and supervision and measures to address trade tensions to help restore confidence. With this in mind, the OECD launched a new online policy hub to help support policy makers.

In trade news, on March 24, WTO Director-General Roberto Azevêdo called on WTO members to share information about their COVID-19 policies with trade implications. That information will feed into the next trade monitoring report, which is set to focus on measures taken between mid-October 2019 and mid-May 2020. DG Azevêdo underlined that transparency vis-à-vis trade-related measures is essential, most notably for those countries that rely on imports for medical supplies. In this context, DG Azevêdo also decided to set up a task force of experts from across the WTO Secretariat to monitor the impact of COVID-19 on trade flows and the overall global economy.

EUROPEAN UNION

As the European Union closes its third week of the Coronavirus outbreak, grim health and economic outlooks have motivated some EU institutions to take unprecedented actions. As some member states experienced their first drops in new reported cases of COVID-19, and other countries around the world are only beginning to come to grips with the reality of the disease, the EU looks in better shape than it did a week ago.

Throughout the week, and the previous weekend, the Commission announced several key measures to address the ongoing crisis and to help weather the storm caused by the outbreak. From an economic perspective, the Commission reacted by proposing to activate the escape clause of the Stability and Growth Pact, announcing previously unseen flexibility on state aid rules and approving many such schemes in matter of hours, as well as putting forward proposals to contribute close to €38 Billion is support to member states’ economies and healthcare systems.

Health sector From a health perspective, the Commission freely published European manufacturing standards for medical supplies while Commissioners Vestager and Breton highlighted the benefits of the EU’s industrial ecosystem, as players in the medical equipment value chain come together to ramp up production. The Commission also announced that its joint procurement plan for PPE was successful and that it was adopting decisions on harmonised standards which will allow manufacturers to place on the market high performing devices – including medical devices – to protect patients, health care professionals and citizens. For its part, the ECDC noted in its latest rapid risk assessment on COVID-19, on March 25th, that the risk of healthcare system capacity being exceeded in the EU/EEA and the UK in the coming weeks is considered high, despite the efforts currently in place. As such, while the EU has given itself the tools to overcome the crisis, the Union is not yet out of the woods.

On March 26th, in spite of national lockdowns, several MEPs gathered in Brussels for an extraordinary Plenary session during which they approved crucial proposals to provide close to €38 Billion in support to member states’ economies and healthcare systems. The Parliament also approved the Commission’s proposal on airport slots. In terms on next steps: the Council has to formally approve Parliament's position; the adopted measures will enter into force once published in the Official Journal of the European Union in the coming days. On the same day, the European Council held a videoconference during which they agreed to continue to fight the disease by no few means and tackle the socio-economic consequences head on, in particular by supporting flexibility for member states. In particular, European leaders agreed that, while the most urgent matter is to fight the pandemic, the EU should also begin to prepare to get back to a normal functioning of European societies and economies.

Food supply In the area of food supply, on March 25, the Croatian Council Presidency published a press release following the videoconference of EU Ministers in charge of agriculture and fisheries . Ministers discussed measures already taken, as well as those planned at the national and European level in order to counteract the negative impact of the COVID-19 pandemic on agriculture and fisheries sector. "In order to ensure normal functioning of the food supply chain, it is crucial to identify critical obstacles caused by covid-19 pandemic. We managed to identify it today. The main issues pointed to by most Member States were restrictions in movement of goods, changes in consumption patterns and in the operation of agri-food production systems, as well as insufficient workforce due to border closures, social distance requirements, mandatory isolation or quarantine. After today's exchange, we have a clearer idea of the situation." Prior to the meeting, the European Parliament published a press release on "Helping farmers secure supply of food for all", summing up two letters that Norbert Lins addressed to the EU's Agriculture Commissioner Janusz Wojciechowski and to Croatia's Agriculture Minister Marija Vučković (currently Chair of the EU Council of agriculture ministers). "[…] Mr Lins welcomed the Commission's effort to maintain free movement of goods on the internal market but insisted this is not enough. "We call on the Commission to go one step further, not only allowing foodstuffs to pass borders via the "green lanes" but also allowing essential inputs, such as feed, fertilisers and plant protection products as well as ingredients and materials for the agro-industrial sector in order to allow them to continue providing their crucial goods to European consumers", he said.

Transport sector On transport, the week began with the European Commission publishing a communication on the implementation of the Green Lanes under the Guidelines for border management measures to protect health and ensure the availability of goods and essential services. The new practical guidance will advise on how to implement the Guidelines for border management in order to keep freight moving across the EU during the current COVID-19 pandemic. According to the communication, the "green lane" border crossings should be open to all freight vehicles carrying any type of goods. Crossing the border, including any checks and health screening, should not take more than 15 minutes.

The European Commission followed up on this on March 26 by publishing an additional communication calling on EU Member States to support air cargo operations during the coronavirus crisis. The communication recommends operational and organisational steps to keep essential transport flows moving, including medical supplies and personnel. Recommendations for Member States include granting temporary traffic rights for additional cargo operations from outside the EU, including, where legally possible, temporary traffic rights for additional air cargo operations, even when conducted with passenger aircraft.

Digital sector The digital agenda has been crucial in respect of combatting COVID-19 and its effects and with this in mind, on 23 March, European Commissioner for Justice and Consumers Didier Reynders sent written letters to Facebook, Google, Amazon, Alibaba Group, eBay, Rakuten, Cdiscount, WishShopping and Allegro requiring their cooperation in taking down scams from their platforms, following the common position endorsed by the Consumer Protection Cooperation (CPC) Network on COVID-19.

The same day, European Commissioner for Internal Market Thierry Breton held a videoconference with CEOs of European telecommunication companies and GSMA. Topics discussed included network resilience, the need to collect anonymised mobile metadata to help analyse the patterns of diffusion of the coronavirus in full compliance “with the GDPR and ePrivacy legislation”, and the importance of protecting the networks against cyber-attacks. According to the EU’s executive arm, telecommunication CEOs reported “substantial improvements already” following the Commission’s call for reducing the load on the network.

Then, on 25 March the European Commission launched the AI-ROBOTICS vs COVID-19 initiative of the European AI Alliance to collect ideas about deployable artificial intelligence and robotic solutions as well as information on other initiatives that could help face the ongoing COVID-19 crisis. The initiative, it is stated, aims to create a unique repository that is easily accessible to all citizens, stakeholders and policymakers.

Financial sector Last Friday, the European Commission proposed the activation of the general escape clause of the Stability and Growth Pact (SGP) as part of its strategy to respond quickly and in a coordinated manner to the coronavirus pandemic. The Commission called on the Council to endorse the proposal as quickly as possible. The Council answered this call on March 23 when it agreed to the activation of the general escape clause during its informal ECOFIN meeting. Ministers agreed that "the general escape clause will allow the Commission and the Council to undertake the necessary policy coordination measures within the framework of the Stability and Growth Pact, while departing from the budgetary requirements that would normally apply, in order to tackle the economic consequences of the pandemic".

On the same day, the European Central Bank (ECB) announced further measures to ensure that its directly supervised banks can continue to fulfil their role to fund households and corporations amid the coronavirus-related economic shock to the global economy.

On March 24, the Eurogroup convened via video conference in order to take stock of the measures already taken and also of the initiatives that are being explored among institutions in response to the COVID-19 economic fallout. Eurogroup President Mário Centeno reflected upon these during a press conference and underlined that: "There is broad support to consider a Pandemic crisis support safeguard based on an existing ESM precautionary instrument, such as the Enhanced Conditions Credit Line (ECCL). This would provide an additional line of defence for the euro and work as an insurance to protect us against this unfolding crisis". Commissioner Paolo Gentiloni noted that the new steps they discussed are steps they will deliver upon soon. He added that "Step-by-step, a European reconstruction plan should take place". Following the Eurogroup meeting, Mr Centeno sent a letter to the President of the European Council in order to share his conclusions. In the letter, he noted that an accelerated legislative work is already underway to make the Corona Response Investment Initiative operational, which would make it possible to mobilise €37 billion to support Member States' urgent initiatives. In terms of the Pandemic crisis support, he proposed that they "deliver without delay and develop the necessary technical specifications before the end of next week".

On March 25, the European Commission issued guidelines to ensure a strong EU-wide approach to foreign investment screening in a time of public health crisis and related economic vulnerability. The aim is to preserve EU companies and critical assets, notably in areas such as health, medical research, biotechnology and infrastructures that are essential for our security and public order, without

undermining the EU's general openness to foreign investment. President of the European Commission Ursula von der Leyen said: "If we want Europe to emerge from this crisis as strong as we entered it, then we must take precautionary measures now. We have the tools to deal with this situation under European and national law and I want to urge Member States to make full use of them. The EU is and will remain an open market for foreign direct investment. But this openness is not unconditional."

The European Banking Authority (EBA) issued a statement in order to clarify a number of additional interpretative aspects on the functioning of the prudential framework in relation to the classification of loans in default, the identification of forborne exposures, and their accounting treatment. Furthermore, while highlighting the fact that a well-functioning payment services are vital at this time, and that contactless payments should be stepped up to the threshold allowed under EU law, the EBA emphasised that there is no flexibility in relation to consumer protection. Finally, the EBA has reviewed all of its ongoing activities requiring inputs from banks in the next months and decided:

• To extend the deadlines of ongoing public consultations by two months;

• To postpone all public hearings already scheduled to a later date and run them remotely via teleconference or similar means;

• To extend the remittance date for funding plans data;

• In coordination with the BCBS, to extend the remittance date for the Quantitative Impact Study (QIS) based on December 2019 data.

In addition, it is important to note that ESMA also issued a Statement with further guidance on the accounting implications of the economic support and relief measures adopted by EU Member States in response to the COVID-19 crisis.

EU Timeline: March 16-20

Mar 16 Temporary restriction on non-essential travel to the EU announced Eurogroup meets to consider economic response

Mar 17 Extraordinary European Council sets out five major priorities Commission sets up an advisory panel on COVID-19 Commission releases guidelines for border management measures addressing member states to maintain the functioning of the Single Market European Commission publishes to Member States a draft proposal for a State aid Temporary Framework to support the economy in the context of the outbreak

Mar 18 Commission publishes guidelines on EU passenger rights ECB announces €750 billion Pandemic Emergency Purchase Programme

Mar 19 European Commission published recommendations for best practices for community measures, as well as testing strategies

Mar 20 Informal meeting of competitiveness ministers (Internal market and industry)

EU MONITORING

AUSTRIA

Austria has more than 7,500 confirmed cases and 60 deaths (March 27). The Government announced on March 16 a nationwide lockdown, the closure of creches, schools and universities, and the reintroduction of border checks until April 13. Some municipalities have been identified as virus hot spots, often popular ski resorts, and subsequently been put under strict quarantine. Austria has called on all its citizens travelling abroad to return home. On March 27 Austria’s Federal Health Minister said it was too early to see positive changes in the statistics. He expected the peak of the pandemic between mid-April and mid-May. The Austrian Government announced on March 18 a €38 billion support package for struggling businesses, especially in the tourism industry, to ensure their liquidity. On 15 March, the Austrian Parliament decided on the necessary legal provisions and financing of special “Corona short-time work scheme” (€400 million).

Official websites

GOVERNMENT (IN GERMAN)

MINISTRY OF HEALTH

MINISTRY OF FOREIGN AFFAIRS

BULGARIA

This week, the Bulgarian government took a number of additional measures in response to the COVID-19 outbreak. Following the lead of the European Parliament, Bulgaria’s National Assembly voted on March 26 to suspend regular sittings and convene only for legislation related to the State of Emergency. On the same day, Bulgaria’s Health Minister issued an order extending the duration of all anti-epidemic measures until April 12 inclusive. Rules on intercity travel have also been amended in order to facilitate passage through the checkpoints at the entrances to and exits from the country’s 27 regional centres. People will be allowed through only if the journey is urgent – this could be employment, health reasons, return to a permanent or temporary address. The State of Emergency voted by Bulgaria’s National Assembly on March 13 is scheduled to last until April 13.

Official websites

MINISTRY OF HEALTH

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BELGIUM

Since March 18, there are several strict measures in place in Belgium, aimed to keep people at home as much as possible. Only for essential work, travel and outdoor exercise, are people allowed to go outside, together with only one member of the household as a maximum. Larger gatherings are forbidden and everyone is advised to keep a reasonable distance. Companies, irrespective of their size, are obliged to organise working from home for every position where this is possible, without exception. Key industries and essential services are exempted though. Non-essential shops and retail outlets will remain closed, with the exception of food shops, pharmacies, pet food shops and newsagents. Outdoor markets are shut down. Public transport should be organised in such a way as to ensure social distancing, while non-essential travel outside Belgium is prohibited. The measures are in place until April 5 included. Several socio-economic measures have been taken by the government. On March 6, Belgium’s federal government adopted 10 measures in support of businesses and self- employed suffering from the COVID crisis. The measures include an extension of the ‘temporary unemployment due to force majeur’, increased unemployment benefits, certain exemptions from tax payments or social contributions and specific derogations from late payment fines, amongst other social measures. On March 20, an additional set of actions was taken to safeguard the purchasing power of employees, to support the companies and self- employed.

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GOVERNMENT

MINISTRY OF HEALTH

MINISTRY OF FOREIGN AFFAIRS

CROATIA

On Sunday, March 22, Croatia was hit by a 5.5 Richter-scale earthquake, which put significant pressure on the government amid the COVID-19 outbreak. The following day, Croatia’s COVID-19 crisis management team said that a ban on travelling inside the country would be imposed as an additional restrictive measure to contain the spread of the coronavirus. Prime Minister Andrej Plenkovic urged citizens not to forget the coronavirus epidemic because of the earthquake. On March 24, the Prime Minister and his cabinet presented a rescue package aimed at propping up the economy. According to the Prime Minister, the measures set out in the package include the deferred payment of dues and some other steps being taken in the current circumstances. A new set of measures to help the economy will be prepared next week.

Official websites

MINISTRY OF HEALTH

MINISTRY OF FOREIGN AFFAIRS

GOVERNMENT WEBSITE ON COVID-19

CYPRUS

On March 23, the President of the Republic of Cyprus, Nicos Anastasiades announced new stricter measures that included the ban of unnecessary movement of people until April 15. In addition, the Cypriot government prepared a financial support programme for dealing with the consequences of Covid-19. The programme foresees, among others, a special leave for parents employed in the private sector with children up to 15 years old, a Suspended Operations Plan of the businesses that decided to suspend their operations and those which will suffer losses beyond 25% of their turnover, the extension of the time period for the submission of appeals at the Social Insurance Services for self-employed persons for a month and a Support Plan for Small Businesses, amounting to €10mn, for businesses employing up to 5 people, under the condition that they keep employing their employees and have suffered a loss bigger than 25% of their turnover. In addition, a temporary suspension for two months of the obligation to pay VAT for the provision of liquidity to undertakings was announced as well as a temporary reduction of VAT from 19 % to 17 % for a period of two months and from 9 % to 7 % for a period of three and a half months.

Official websites:

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CZECH REPUBLIC

The Czech Republic took an active approach to address the COVID-19 threat. On March 12, the Czech government declared a state of emergency for the upcoming 30 days. The country is in a complete lock-down: all schools and shops are closed, except for supermarkets, pharmacies, online shops and other necessary infrastructure. The free movement of people is restricted to the essential minimum. A travel ban is also in place: the Czech Republic reintroduced border controls (with Germany and Austria) and placed a 14 days obligatory quarantine for citizens returning back from risk countries. Since March 18, there is an obligation to wear face masks or other protective equipment in public. Since March 24, a maximum of two people can gather outside, except families living in one household. To reduce the economic impact, the government announced a series of reliefs for companies, SMEs and self-employed people, such as the postponement of the deadline for tax declaration, interest-free loans and other forms of compensation. Speaking after a cabinet meeting on March 18, Prime Minister Babiš told journalists that the Czech government could support Czech businesses with CZK 100 billion in direct aid and CZK 900 in guarantees. On March 26, the Government decided on direct financial support for small businesses amounting to 15 000 CZK (€575). However, the announced measures have been criticised as insufficient. The government also approved the draft of an Extraordinary Act on Certain Modifications to State Social Support Benefits and Care Contributions. Škoda Auto, one of the biggest employers in the Czech Republic, has closed Czech plants due to coronavirus pandemic for initial period of minimal two weeks on March 19. All currently valid measures and legislative acts can be found on this link.

Official websites:

GOVERNMENT WEBSITES

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DENMARK

Denmark has put in place a number of measures to restrict the COVID19 spread and its consequences. The country has entered a phase of "domestic lockdown" since March 18 and people are encouraged to work from home. From March 14 until April 13, Danish borders are closed, except for transport of goods, people with an important reason for visiting, foreigners leaving Denmark, and Danes and people with a residence permit returning to Denmark. To help Danes deal with the economic impact, Danish PM Mette Frederiksen announced that 2.6 bn of Danish kroner will be employed in an effort to prevent layoffs in private companies under financial pressures. The scheme will last three months and will see the Danish state co- financing 75% of salaries of employees, who would have otherwise been fired, paid monthly, while the private companies pay the remaining 25%. On Wednesday March 19, the Danish government also declared that it will start offering COVID19 take-home kits to collect samples. Last Saturday, the European Commission found a DKK 1 billion (approx. €130 million) Danish guarantee scheme for small and medium-sized enterprises (SMEs) affected by Coronavirus outbreak to be in line with EU State aid rules. Official websites

DANISH GOVERNMENT WEBSITE

MINISTRY OF HEALTH

MINISTRY OF FOREIGN AFFAIRS

ESTONIA

The government declared the state of emergency on March 12, banning all public gatherings, closing all cultural institutions, and implementing distance learning at schools. On March 15, additional restrictions were introduced, requiring that all sports venues be closed. As from March 17, a temporary restriction on border crossing for foreign nationals applies. Estonian citizens and residents, are still allowed to enter the country, but they are requested to stay in self-isolation for 14 consecutive days at the place of residence. On March 19, the government announced the introduction of a set of measures (worth at least EUR 2 billion) to cushion the economic impact of the pandemic emergency. Unless provided otherwise, the emergency measures are set to stay in place until May 1. On March, the government established additional restrictions, ordering the shutting down of all shopping centres, “except for grocery stores, pharmacies, telecommunication outlets, bank offices, parcel stations, and stores selling or renting assistant and medical devices on the basis of an assistant card or medical device card”, as of March 27. In terms of financial support to tackle the health emergency, on March 20, the government decided to direct, via the Estonian Unemployment Insurance Fund, EUR 250 million for supporting employed persons and avoiding layoffs. On March 25, the government announced it will provide the Estonian Health Insurance Fund (EHIF) with at least EUR 200 million over three months to cover the extraordinary costs of coronavirus.

Official websites

GOVERNMENT

MINISTRY OF HEALTH

MINISTRY OF FOREIGN AFFAIRS

FINLAND

The government declared a state of emergency on March 16, thereby providing for the shutting down of all schools and public facilities such as museums and libraries, as well as banning all public meetings and gatherings of more than 10 people. Border checks have been introduced, and the country is now preparing to close its borders: passenger transport to Finland will be suspended, with the exception of the return of Finnish citizens and persons residing in Finland, who will be asked to stay in quarantine-like conditions for two weeks. The measures are set to stay in place until April 13. On March 20, the government agreed on extensive economic measures to minimise the impact of the pandemic. The measures, worth around EUR 15 billion, will focus most notably on safeguarding the livelihoods of people who are laid off or lose their jobs. They will also support businesses and companies. For instance, an additional financing of EUR 10 billion will be made available to businesses through Finnvera. What is more, EUR 150 million will be allocated to Business Finland to allow for immediate business support measures. On March 20, to cover these measures, the government submitted the supplementary budget proposal to Parliament. Official websites:

GOVERNMENT

MINISTRY OF HEALTH

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FRANCE

On March 23 lockdown measures became stricter as death tolls rose. Open air markets closed, and citizens are now only allowed to leave their house for one hour a day, and no further than one kilometre from where they live. The emergency bill against COVDID-19 was voted by the French Parliament on March 22, allowing the Government to declare the state of sanitary emergency and to take economic emergency measures. Regarding the economy, Minister Bruno Le Maire has presented a €45 billion support plan to help businesses stay afloat, as the government tabled on an economic recession in 2020. He added that the Government does not rule out nationalisations as big enterprises such as Air France, or Renault are struggling. Farmers are facing a shortage of labour force as borders within the EU are not all open.

Official websites:

GOVERNMENT

HEALTH MINISTRY

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GERMANY

Germany has more than 48,500 confirmed infections and 300 deaths (March 27). Since March 16 border checks are in place with all neighbouring countries. On March 22, the government announced a national curfew. Germany’s relatively low death rate in comparison to other European countries, such as Italy or Spain, has led to a discussion on differences of the national recording methods. On March 23, the government decided on a financial aid package of €750 billion to mitigate the damage of the coronavirus pandemic on the economy, which was approved by the Bundestag two days later. The Bundestag also suspended the constitutionally enshrined debt brake from 2013 in order to approve the supplementary government budget of €156 billion. Social partners in Germany’s metals sector announced on March 20 to have negotiated a so-called ‘collective crisis agreement’. Valid until 31 December 2020, the deal adopts a series of measures on compensation for short-time working and additional leave for parents in order to soften the burden of the coronavirus crisis on employees. Official websites

GOVERNMENT

MINISTRY OF HEALTH

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GREECE

Since Sunday, March 22, the Greek authorities announced significant restrictions on all nonessential transport and movement across the country. Movement outside the house is permitted only for specific reasons and the citizens leaving their home are required to carry their police ID or passport, as well as some type of attestation depending on the purpose of travel. The Greek government has already announced three major packages to support workers and companies. The measures include the suspension, for 4 months, of tax and social security obligations of companies that were ordered to close by the state decree, with the sole condition that they do not dismiss any workers. This measure covers about 220 000 businesses and 600 000 employees. In addition, the government announced an €800 stipend and a four-month suspension of payment of March taxes on employees of businesses the activity of which was suspended and on freelance professionals who work in sectors affected by the pandemic. The reduction of VAT tax from 24% to 6% on pharmaceutical products such as gloves, masks and antiseptics is also part of the measure. Moreover, the Finance Minister announced the inclusion of Greece in the ECB’s €750 billion Pandemic Emergency Purchase Programme (PEPP) and also stated the 3.5% primary surplus target for Greece is no longer in effect, according to a Eurogroup decision. Official websites

GOVERNMENT WEBSITE

MINISTRY OF HEALTH

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HUNGARY

According to the latest data published on the official government information page www.koronavirus.gov.hu (page in English here), the number of confirmed cases of COVID-19 has risen to 300, whereas the number of deceased is 10. Following the declaration of the state of emergency on March 11, per government decree, as of March 17, Hungary closed all land borders to non-Hungarian citizens, with the exception of EEA citizens holding a residence permit. During a national address on March 18, Prime Minister Viktor Orbán announced a package of economy and job protection measures, including suspension of principal and interest payment liabilities on loans. On March 24, contactless payment limit was raised to HUF 15,000 to help reduce virus. On March 27, Prime Minister Viktor Orbán announced restriction on movement covering the whole country between March 28 and April 11. Official websites:

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MINISTRY OF HEALTH

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IRELAND

In response to the crisis, Ireland has cancelled public events and festivals and closed all schools, colleges, childcare and other public facilities until at least April 19.

The Irish government set up on March 24 the new COVID19 Income Support Scheme, featuring a temporary wage subsidy of 70% of take home pay up to a maximum weekly tax free amount of €410 per week to help affected companies keep paying their employees. Moreover, workers who have lost their jobs due to the crisis will receive an enhanced emergency COVID-19 Pandemic Unemployment Payment of €350 per week (an increase from €203. The COVID-19 illness payment will also be increased to €350 per week and the self- employed will be eligible for the COVID-19 Pandemic Unemployment Payment of €350 directly from the Department of Employment Affairs and Social Protection (rather than the Revenue scheme). Enhanced protections for people facing difficulties with their mortgages, rent or utility bills have also been put in place under the scheme. The Irish state also announced it is taking control of private hospitals for the duration of the crisis and that all treatment for COVID-19 will be “free” and paid for by the state.

Official websites

IRISH GOVERNMENT WEBSITE

MINISTRY OF HEALTH

MINISTRY OF FOREIGN AFFAIRS

ITALY

As the first European country to be severely hit by the coronavirus pandemic, Italy has adopted several measures to try to contain the spread of the virus. The first measures applying to the entire national territory were adopted on March 9, when the government established that any movement of natural persons should be avoided, “except for movements motivated by well-grounded work-related reasons or situations of need or movements for health reasons”. Education services, sporting events and competitions, as well as all other kinds of events, were suspended. Teleworking was encouraged. The shutting down of all commercial activities, except for pharmacies and groceries stores, was declared on March 11. On March 16, a new set of measures was adopted, most notably as buffer from the economic impact of the pandemic emergency. The package is set to intervene in four core areas: additional funds and further strengthening of the National Health System, as well as of the Civil Protection and all other bodies involved in the management of the crisis; support to workers and employment; aid for families and SMEs, including access to credit; and suspension of tax payments and social security contributions. On March 22, the government announced a new set of measures in an attempt to contain the spread of virus. They require that all industrial and commercial production activities be suspended, with the exception of those providing public utilities and essential services, as well as a series of activities considered essential and contained in a list reported under Annex 1. The list was updated on March 25, following an agreement between the trade unions and the government. Also on March 25, a new decree was adopted to gather together all measures adopted in the previous weeks and to allow the introduction of additional measures, as spelled out in the decree itself, to contain the pandemic. Official websites:

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MINISTRY OF HEALTH

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LATVIA

On March 14, the Latvian government announced new measures in light of the COVD19 emergency, suspending organised passenger traffic such as buses, trains and flights starting from Midnight on Monday 16 March. While it is still allowed, thus not encouraged, to arrange cross-border move in a private capacity (e.g. by car) in other Member States, the Latvian external EU border with Russia and Belarus will be shut to both organised public and private transport. In this light, Air Baltic has suspended all its flights until April 14, a measure that also applies to Air Baltic Estonian's operations. In terms of economic measures, Latvia put in place a subsidised loan scheme and a loan guarantee scheme for companies affected by the coronavirus outbreak, with an overall budget of €200 million, out of which €50 million envisaged from the State budget and the rest from the international financial institutions. The amount envisaged in the State budget for the loan guarantee scheme is €50 million. It is expected to be leveraged and cover guarantees worth over €200 million. The European Commission has found the loan scheme in line with State Aid rules. Official websites

LATVIAN GOVERNMENT WEBSITE

MINISTRY OF HEALTH

MINISTRY OF FOREIGN AFFAIRS

LITHUANIA

According to the latest data published on the official government information page, the number of confirmed cases of COVID-19 has risen to 345, whereas the number of deceased is 4. The tertiary (absolute preparedness) level of the civil protection system on the territory of the Republic of Lithuania was declared on March 14, whereas a two-week nationwide quarantine regime became effective at midnight on March 16 and will remain in force until April 13. The Lithuanian Government imposed a number of restrictions regarding the cross- border and domestic movements of people and goods. Lithuanian citizens are barred from exiting the country, except citizens returning to their country of residence or work. Persons who have returned from foreign countries shall be subject to a 14 days isolation. On March 25, however, by decision of the Minister of Health Aurelijus Veryga, the policy was somewhat revised allowing the people, previously tested, to also self-isolate at home. On March 16, the Ministry of Finance proposed to allocate EUR 5 billion for the implementation of a package of measures aimed to provide support for public health and the national economy. An overview of state support during the crisis is available here. Official websites

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LUXEMBOURG

The Ministers of Finance, Economy and the Middle Classes presented their plan on March 25 to help the country's businesses get through the crisis. This amounts to €8.8 billion divided between emergency expenditure, deferred payments and credit aid. 14% of Luxembourg's GDP will be dedicated to this Stabilisation Plan. In its efforts to combat the spread of the virus, Luxembourg has closed all schools, all non-food shops and restaurants. Prime Minister Xavier Bettel declared the state of emergency on March 17, empowering the Government to take fast decisions during ten days to tackle the crisis. It is a first in the history of Luxembourg. The social consequences of the health crisis seem inevitable, but lay-offs in companies operating on partial unemployment could be prohibited by the government.

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MALTA

As from March 23, the Maltese government announced that non-essential retail has stopped as well as any type of organised public and mass gatherings. Last week, the Prime Minister of Malta, in a press conference held together with Finance Minister Scicluna and Economy Minister Schembri, announced a package of tax and economic measures in order to address the impact COVID-19 might leave on the Maltese economy. More specifically, the Government of Malta has unveiled a €1.8 billion package of measures to help businesses struggling to cope with the impact of the Coronavirus. The package includes €700 million in tax deferrals, €900 million in loan guarantees, a €210 million injection to assist the economy, which includes €35 million to health authorities to fight COVID-19. The measures will apply to employers and self-employed persons, and are the following:

• March and April tax payment deadlines relating to Provisional Tax, Social Security Contributions, payments under the FSS and VAT will be postponed to a further date. It is understood that businesses will be given adequate time to gradually pay the suspended tax due; • fast-tracking of repayments of certain refunds or credits due to the taxpayers, such as VAT refunds; • introduction of a refund scheme for companies which have invested in teleworking, where they would be entitled for a refund claim on part of the expenditure incurred to adopt such infrastructure.

Regarding the measures to limit the COVID-19 outbreak, in addition to the closure of schools, the Maltese government announced that as of March 17 all bars (excluding take-aways), restaurants (excluding deliveries), gymnasiums, clubs, cinemas and tombola halls must remain closed. Official websites

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THE NETHERLANDS

On March 23, the most stringent measures so far were announced by the Dutch government. Every form of gathering has been forbidden until June 1. Everyone should take 1.5 meters distance from each other into account, whether that is in the public space or at home. Exceptions are people from the same household or children of 12 years and younger. Any profession or business which requires a closer contact within the 1.5 meters is being closed, as well as shops and markets which do not take sufficient measures to safeguard this distance. Meetings required by law, such as the local Councils, Senate and House of Representatives, are still to take place, taking into account the necessary distance. Meetings necessary for the continuation of the daily work of institutions, companies and other institutions are allowed, up to 100 persons maximum. Funerals, marriages, religious and philosophical gatherings can convene a maximum of 30 persons. Dutch travellers abroad who are unable to arrange their return to the country will be assisted. It is estimated that this concerns between 100,000 and 200,000 persons. Final school exams for the last year of high school have been cancelled. Pupils can obtain their school-leaving certificates based on their previous results. All measures will be reassessed April 6 at the latest. Economic measures were taken by the Netherlands as well. The launch of the government’s expanded credit guarantee scheme for small and medium-sized enterprises, the ‘SME Credit Guarantee Scheme’, has been accelerated. Business owners can apply for the scheme from March 16. The government estimates that this first step will immediately make €300 million in extra financing available to SMEs affected by the current situation. In addition, companies can apply for shorter working hours through a scheme managed by the Ministry of Social Affairs and Employment, and can apply to the Tax and Customs Administration for a deferment of or reduction in their provisional assessment. Self-employed persons without employees (ZZPs) can apply for support under the Social Assistance (Self-employed Persons) Decree. In addition, a package of measures was adopted to protect people's jobs and livelihoods and to minimise the impact on self-employed people, small and medium-sized enterprises and major companies. Billions of euros will be invested into the economy every month, for as long as necessary. The measures will ensure that companies are able to pay their employees' wages, grant a bridging arrangement for self-employed people and allow companies to hang on to their money through relaxed tax provisions, allowances and supplemental lines of credit. Official websites

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POLAND

According to the latest data published on the official government information page www.gov.pl/web/koronawirus, the number of confirmed cases of COVID-19 has risen to 1244, whereas the number of deceased is 16. Over the weekend of March 13-15, the Government of Poland announced that restrictions on international border crossings will be implemented for a minimum of 10 days. All international flights and rail connections (inbound and outbound) were suspended from March 15 (with some exceptions). Polish citizens and foreigners with permission to work and reside in Poland who return from abroad are required to quarantine for 14 days after returning. On March 18, Polish Prime Minister Mateusz Morawiecki announced the creation of a so-called “anti-crisis shield” in connection with the coronavirus pandemic involving a package of actions to support companies and employees from the effects of the coronavirus epidemic. The package was approved by the Government on March 25. It is important to note that the Polish authorities announced new restrictions on public movement that begin March 24 and last until at least April 11. All public gatherings, events, and reunions are now banned. Official websites

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PORTUGAL

On 22 March, the Minister for the Environment and Climate Action, João Pedro Matos Fernandes, signed three orders aimed at guaranteeing essential services in Portugal in the areas of water supply, urban waste management, energy, electricity, gas and fuel supply and also urban transport. The orders already entered into force. On Tuesday 24th, Prime Minister António Costa addressed the Parliament and warned that “it is impossible for the State to impose the closure of companies without this being reflected in their functioning”. They will therefore need to focus on protecting companies, protecting them from early bankruptcies and helping sustain jobs and family incomes as much as possible. The same day, the Minister for Home Affairs confirmed that the repatriation of the passengers in the cruise ship MSC Fantasia moored at the port of Lisbon was underway. The following day, the Minister of Agriculture and the Minister of the Sea participated, by videoconference, in the EU’s AGRIFISH Council. The importance of providing liquidity to the sector, ensuring the continuity of food supply and also of Member States anticipating direct payments before 16 October 2020 were all highlighted. Wednesday 25th also saw Minister of State and Foreign Affairs Augusto Santos Silva stating that the measures already taken by the EU were very important, but “not enough” and that “the European Council must provide clear guidelines in three additional areas”, namely on: (i) setting up a European reinsurance mechanism on unemployment benefits; (ii) the so-called Eurobonds; and (iii) a plan for the recovery of the European economy and society. Finally, on Thursday 26th, Minister of State, Economy and Digital Transition, Pedro Siza Vieira, announced that “all credits with banking institutions and other financial institutions that are due in the next six months, and all instalments of capital, interest, rent, among others, will be suspended until September 30”.

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ROMANIA

As of Thursday March 26, Romania has reached 1,029 confirmed COVID-19 cases. Romania’s Health Minister Victor Costache resigned on Thursday morning, which comes in the middle of the biggest medical crisis Romania has faced in recent history. The Minister has been strongly criticised, as more than hundred doctors and nurses have tested positive amid a lack of equipment. In response to the crisis, Romanian authorities convened on March 26 to discuss a new round of measures to support the economy, during which Finance Minister Florin Citu presented a proposal to suspend loan payments by up to nine months for both individuals and companies. Information on the draft normative acts adopted by the Government in the meeting of March 26 can be found here. Romania has also received 45 tonnes of medical equipment from South Korea, arrived on a NATO aircraft. From March 25 onwards, people are confined to their homes and allowed to go out only for work, medical reasons, shopping essentials or helping family members in need.

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SLOVAKIA

Slovakia declared an exceptional state as of March 12 after the govenment’s crisis meeting. Moreover, the Slovak govenment announced a travel ban on entering Slovakia, shut down all international airports and reintroduced border controls (with the exception of Polish border). No traveler without a permanent residence or employment in Slovakia is admitted. People returning from abroad must enter into 14-days quaranteen. Schools, most shops and events are closed, with the exception of supermarkets, pharmacies and other essential infrastructure. On March 16, the government declared an emergency state for all public hospitals to speed up logistics for necessary equipment. Moreover, Slovakia announced a postponement of tax declarations to reduce the economic impact of COVID-19 restrictions. Further measures are still expected to be announced. The Ministry of Health recommended that citizens reduce their movements and wear protective face masks. Slovakia held a parliamentary elections on February 29 2020. The current COVID-19 measures have been taken by the outgoing Smer-SD government. The new government of Igor Matovič was sworn in on Saturday March 21. The incoming Minister of Health, Marek Krajčí, is a cardiologist and was serving as an MP. In the ucpoming days, the new Government introduced an obligaton to wear face masks in public, set exclusive opening hours for vulnerable groups and banned export of needed medicinal products. On March 25, the Government adopted the first set of social measures to ease the impact on small businesses and self-employed people, including adjustments in social insurance, care-giver’s allowance and allowances to keep job posts. Official websites

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SLOVENIA

On March 24, Prime Minister Janez Janša, and three other Ministers presented a package of measures to help the population and the economy, the so-called anti-corona package. Among them, measures to preserve jobs and to keep businesses in operation. The Government has also taken steps to improve the liquidity of businesses and provide support for research projects to fight the epidemic “A guarantee scheme – called a "financial cannon"– will be established and the purchase of trade debt from Slovenian businesses will be provided. In addition, the Government will provide sufficient funds through capital increase or performance guarantees” said the Prime Minister during a press conference. A national emergency response plan was activated on March 12th, as the Minister of Health, Aleš Šabeder, issued an order declaring an epidemic in accordance with Article 7 of the Contagious Diseases Act. All restaurants and bars have been closed and the land border with Italy closed. On March 20 the Government adopted the Ordinance on temporary measures in healthcare to contain and manage the COVID-19 epidemic. The Ordinance provides that all healthcare providers shall suspend the provision of preventive health services.

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SPAIN

On Saturday 21st, the President of the Government, Pedro Sánchez, reported on the spread of the coronavirus pandemic COVID-19, and reiterated his call for people to heed the confinement measures decreed by the authorities: “If we avoid its spread, we free up beds for those who need them and gain time”. The following day, Prime Minister Sánchez held a video-conference with the presidents of the autonomous regions and cities notifying them of the decision to request the Lower House of Parliament to agree to extend the existing state of emergency until 11 April (which would be granted on Wednesday 25th). At a press briefing, Pedro Sánchez also specified five new actions by the government against COVID-19: • Making available to the regional governments all of the installations and material and human resources of private homes for the elderly; • Restricting all non-essential travel from third countries for 30 days; • Increasing the scope of action of the armed forces to support the health effort; • Facilitating resources to local authorities for the home delivery of food and pharmaceutical products; • Establishing a strategic reserve of products to fight any potential future pandemics. Also this week, Prime Minister Sánchez, together with the Heads of State or Government of Belgium, France, Greece, Ireland, Italy, Luxemburg, Portugal and Slovenia signed on Wednesday a letter addressed to the President of the European Council, Charles Michel, advocating fighting the pandemic with Europe-wide measures and strategies, including by guaranteeing “the production and distribution of key medical equipment and protections” an also by working on “a common debt instrument”.

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SWEDEN

In light of the COVID-19 virus, the Swedish Government decided that its proposed additional amending budget for 2020 will include a supplementary system of support for short-time work schemes. The new system was presented on Monday 23rd by the Government and requires that the central government takes a greater share of the costs for short-time work in 2020. It is proposed that the new rules enter into force on 7 April, but that they apply from 16 March. The Government also decided to task a coordinator to collaborate with the social partners and the business sector, and to gather information about the impact of the COVID-19 virus on the business sector. Anders Ferbe was appointed for this role. On 20 March, a range of measures was presented to make it easier for Swedish businesses, particularly SMEs, to access finance via increased loan facilities and credit guarantees. On 25 March, the Government confirmed a crisis package for SMEs. Under this proposal, the central government will guarantee 70% of new loans that banks provide to companies (primarily but not exclusively to SMEs) that are experiencing financial difficulty due to the COVID-19 virus but that are otherwise robust. The guarantee will be issued to banks, which in turn will provide guaranteed loans to companies. Other measures include the temporary reduction of employers’ social security contributions and individual contributions for the period 1 March to 30 June 2020, and also s temporary discount for rental costs in vulnerable sectors

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