Poland’s government has announced an economic stimulus package it values at PLN 212 billion to assist entrepreneurs and employees during the COVID-19 crisis. The package consists of 5 pillars: employee safety, company financing, health protection, strengthening the financial system and a public investment program.
Employee safety – if an employer is losing turnover or showing financial losses, the State will cover 40% of the compensation of an employee (up to the average salary in economy), provided the employer covers at least the remaining 40%. This may mean salary reductions but the goal is to keep people employed. Detailed criteria are to be presented to be included in this program. The plan is also to cover persons under self-employment and mandate agreements. If schools/childcare facilities will remain closed after 25 March 2020, it is considered to further extend State-funded benefits to those who need to care for children under 8 years of age due to closure of their schools or kindergartens.
Financing of enterprises – these are to include loan guarantees, leasing financing for transport companies and micro loans up to PLN 5,000, to be supplied by State-controlled financial institutions. There is also the potential of delaying social insurance payments and the return to Sunday trading, which has almost entirely been banned in 2020.
Healthcare protection – this pillar would provide at least PLN 7.5 billion in additional funds for hospitals dealing with infectious diseases, protective equipment, and medical equipment necessary to modernize the hospital base and fight coronavirus.
Strengthening the financial system – working with the central bank and the Financial Supervisory Authority, the goal is to ensure liquidity in the financial system and ensure the solvency of the deposit guarantee scheme. Further, the Antimonopoly Authority and other price regulators to control price gouging in the markets.
Public investment – the goal is to increase infrastructure investment through a fund of at least PLN 30 billion for local government roads, digitization, environmental protection and modernization of schools and hospitals.
Implementation of this program will require preparation and passage of appropriate legislation. The government promised to commence this process immediately. The Polish Parliament is currently scheduled to meet on 25-26 March.
We keep track of the legislative developments to advise entrepreneurs in Poland on any new measures to help them protect their business and employees.