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Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for measure PL-2021-1/1636 – Updated – measures in Poland

Financial Shield 2.0: Large enterprises

Tarcza Finansowa 2.0: duże przedsiębiorstwa

Country Poland , applies nationwide
Time period Temporary, 01 January 2021 – 31 March 2021
Context COVID-19
Type Legislations or other statutory regulations
Category Supporting businesses to stay afloat
– Direct subsidies (full or partial) or damage compensation
Author Jan Czarzasty (Warsaw School of Economics)
Measure added 30 December 2020 (updated 29 September 2023)

Background information

After the Financial Shield 1.0 was implemented from April 2020 onwards see case PL-2020-20/806 a follow-up programme has been devised.

Just like the original regulation, the follow-up is based on the Act amending the Act on the System of Development Institutions facilitating public support programme commonly referred to as the Financial Shield, operated by the Polish Development Fund (Polski Fundusz Rozwoju). The programme is divided into specific sub-sets of measures targeting:

  1. Micro, small and medium firms.
  2. Large firms.

The former is further divided into two segments:

  • micro firms
  • small and medium firms.

Content of measure

The programme still targets large firms (over 249 employees) with annual turnover of more than €50 million. The main development that the follow-up scheme brings will be a new version of the preferential loan, with a new COVID-19 damage period lasting until 31 March 2021. The total amount of aid under the scheme foreseen is PLN 25 billion (some €5.5 billion).

Financial Shield 2.0 will differ from the original in such key aspects as:

  • significantly easier process for low aid amounts;
  • retained returnable nature of funds with the element of remission of the aid loan, which is related to the full credit analysis process;
  • greater flexibility in terms of financing period, extended from 4 to 6 years and cost reduction.

Applications can be submitted from 1 January 2021 until the end of March (provided the approval of the European Commission is granted), so it cannot be established yet what will the impact be.

Updates

The following updates to this measure have been made after it came into effect.

21 May 2021

The application window remained opened until the end of March 2021.

Use of measure

Not known yet. The scheme needs to be approved by the European Commission first. The application process commences on 1 January 2021.

Target groups

Workers Businesses Citizens
Does not apply to workers Larger corporations
Does not apply to citizens

Actors and funding

Actors Funding
National government
National funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role No involvement No involvement
Form Not applicable Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

  • No involvement
  • Main level of involvement: N/A

Involvement

None.

Views and reactions

The views are critical. Social partners see the measures as not adequate.

Sources

Citation

Eurofound (2020), Financial Shield 2.0: Large enterprises, measure PL-2021-1/1636 (measures in Poland), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/PL-2021-1_1636.html

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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.