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.

Mar 16

Mar 18

Mar 19

Mar 20

Temporary restriction on non-essential travel to theEU announced

Mar 17

EU Timeline: March 16-20

EU MONITORING

Eurogroup meets to consider economic response

Extraordinary European Council sets out five majorprioritiesCommission sets up an advisory panel on COVID-19

Commission releases guidelines for bordermanagement measures addressing member states tomaintain the functioning of the Single Market

European Commission publishes to Member States adraft proposal for a State aid Temporary Frameworkto support the economy in the context of the outbreak

Commission publishes guidelines on EU passengerrights

ECB announces €750 billion Pandemic EmergencyPurchase Programme

European Commission published recommendationsfor best practices for community measures, aswell as testing strategies

Informal meeting of competitiveness ministers(Internal market and industry)

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

MINISTRY OF FOREIGN AFFAIRS

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.

Official websites:

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:

GOVERNMENT WEBSITE

MINISTRY OF HEALTH

MINISTRY OF FOREIGN AFFAIRS

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

MINISTRY OF HEALTH

MINISTRY OF FOREIGN AFFAIRS

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

MINISTRY OF FOREIGN AFFAIRS

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

MINISTRY OF FOREIGN AFFAIRS

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

MINISTRY OF FOREIGN AFFAIRS

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

MINISTRY OF FOREIGN AFFAIRS

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:

GOVERNMENT

MINISTRY OF HEALTH

MINISTRY OF FOREIGN AFFAIRS

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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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”.

Official websites:

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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

Official websites:

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