Proposal for a COUNCIL IMPLEMENTING DECISION amending Implementing Decision (EU) 2020/1353 granting temporary support under Regulation (EU) 2020/672 to the Republic of Poland to mitigate unemployment risks in the emergency following the COVID-19 outbreak
Date: 2022-10-05
Institutions: Directorate-General for Economic and Financial Affairs, European Commission
Subjects: EU loan, Poland, coronavirus disease, emergency aid, employment aid, epidemic, fight against unemployment, public expenditure, self-employed person

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 5.10.2022  COM(2022) 508 final 2022/0311 (NLE)  Proposal for a COUNCIL IMPLEMENTING DECISION amending Implementing Decision (EU) 2020/1353 granting temporary support under Regulation (EU) 2020/672 to the Republic of Poland to mitigate unemployment risks in the emergency following the COVID-19 outbreak  
 
EXPLANATORY MEMORANDUM 

1. 

• 

CONTEXT OF THE PROPOSAL 

Reasons for and objectives of the proposal 

Council Regulation (EU) 2020/672 (“SURE Regulation”) lays down the legal framework for 
providing  Union  financial  assistance  to  Member  States,  which  are  experiencing,  or  are 
seriously threatened with, a severe economic disturbance caused by the COVID-19 outbreak. 
Support  under  SURE  serves  for  the  financing,  primarily,  of  short-time  work  schemes  or 
similar measures aimed at protecting employees and the self‐employed and thus reducing the 
incidence of unemployment and loss of income, as well as for the financing, as an ancillary, 
of some health-related measures, in particular in the workplace. 

On  6  August  2020,  Poland  requested  financial  assistance  from  the  Union  and  on  25 
September  2020,  with  its  Implementing  Decision  (EU)  2020/1353,  the  Council  granted 
financial assistance to Poland with a view to complementing its national efforts to address the 
impact  of  the  COVID-19  outbreak  and  respond  to  the  socioeconomic  consequences  of  the 
outbreak for workers and the self-employed. 

On 19 September 2022, Poland requested the Union to extend the list of measures in Council 
Implementing Decision (EU) 2020/1353. 

In accordance with Article 6(2) of the SURE Regulation, the Commission has consulted the 
Polish authorities to verify the sudden and severe increase in actual and planned expenditure 
directly related to Polish labour market measures and health-related measures caused by the 
COVID-19 pandemic. In particular, this pertains to new measures: 

(a) 

(b) 

financing the performance of PCR diagnostic tests. The Minister of Health instructed 
the  National  Health  Fund  to  conclude  with  interested  laboratories  contracts  on 
performing  diagnostic  RT-PCR  tests  for  SARS-CoV-2.  The  costs  of  tests  were 
financed from the state budget and they were commensurate to the number of people 
applying for testing; 

granting  additional  monthly  cash  benefit  for  medical  professionals  and  one-off 
additional cash benefit for other healthcare workers fighting COVID-19. The benefit 
was granted to persons who participated in the provision of health services and had 
direct  contact  with  patients  infected  and  suspected  of  being  infected  with  SARS-
CoV-2  virus  in  organizational  units  of  medical  entities.  The  Minister  of  Health 
ordered the National Health Fund to transfer to medical entities performing medical 
activities funds intended for granting the benefits. 

Poland provided the Commission with the relevant information.  

Taking into account the available evidence, the Commission proposes to the Council to adopt 
an  Implementing  Decision  to  extend  the  list  of  measures  for  which  the  Council  already 
granted financial assistance in Council Implementing Decision (EU) 2020/1353. 

Health-related  measures,  as  requested  by  Poland  on  19  September  2022,  amount  to 
EUR 1 672 546 359.  

• 

Consistency with existing policy provisions in the policy area 

The present proposal is fully consistent with Council Regulation (EU) 2020/672, under which 
the proposal is made. 

EN 

1 

  EN 

 
 
The present proposal comes in addition to another Union law instrument to provide support to 
Member States in case of emergencies, namely Council Regulation (EC) No 2012/2002 of 11 
November 2002 establishing the European Union Solidarity Fund (EUSF) (“Regulation (EC) 
No 2012/2002”). Regulation (EU) 2020/461 of the European Parliament and of the Council, 
which amends that instrument to  extend its scope to  cover major public  health emergencies 
and to define specific operations eligible for financing, was adopted on 30 March 2020.   

• 

Consistency with other Union policies 

The proposal is part of a range of measures developed in response to the current COVID-19 
pandemic  such  as  the  “Coronavirus  Response  Investment  Initiative”,  and  it  complements 
other  instruments  that  support  employment  such  as  the  European  Social  Fund  and  the 
European Fund for Strategic Investments (EFSI)/InvestEU. By making use of borrowing and 
lending in this particular case of the COVID-19 outbreak for supporting Member States, this 
proposal  acts  as  a  second  line  of  defence  to  finance  short-time  work  schemes  and  similar 
measures,  helping  protect  jobs  and  thus  employees  and  self-employed  against  the  risk  of 
unemployment.  

2. 

• 

LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY 

Legal basis 

The legal basis for this instrument is Council Regulation (EU) 2020/672.   

• 

Subsidiarity (for non-exclusive competence)  

The  proposal  follows  a  Member  State  request  and  shows  European  solidarity  by  providing 
Union financial assistance in the form of temporary loans to a Member State affected by the 
COVID-19  outbreak.  As  a  second  line  of  defence,  such  financial  assistance  supports  the 
government’s increased public expenditure on a temporary basis in respect of short-time work 
schemes  and  similar  measures  to  help  them  protect  jobs  and  thus  employees  and  self-
employed against the risk of unemployment and loss of income. 

Such  support  will  help  the  population  affected  and  helps  to  mitigate  the  direct  societal  and 
economic impact caused by the present COVID-19 crisis.  

• 

Proportionality 

The proposal respects the proportionality principle. It does not go beyond what is necessary to 
achieve the objectives sought by the instrument.  

3. 

• 

RESULTS 
CONSULTATIONS AND IMPACT ASSESSMENTS 

EX-POST 

EVALUATIONS, 

OF 

STAKEHOLDER 

Stakeholder consultations 

Due to the urgency to prepare the proposal so that it can be adopted in a timely manner by the 
Council, a stakeholder consultation could not be carried out. 

• 

Impact assessment 

Due to the urgent nature of the proposal, no impact assessment was carried out. 

EN 

2 

  EN 

4. 

BUDGETARY IMPLICATIONS 

The  Commission  should  be  able  to  contract  borrowings  on  the  financial  markets  with  the 
purpose  of  on-lending  them  to  the  Member  State  requesting  financial  assistance  under  the 
SURE instrument.  

In  addition  to  the  provision  of  Member  State  guarantees,  other  safeguards  are  built  into  the 
framework in order to ensure the financial solidity of the scheme: 

 

 

A rigorous and conservative approach to financial management; 

A  construction  of  the  portfolio  of  loans  that  limits  concentration  risk,  annual 
exposure and excessive exposure to individual Member States whilst ensuring 
sufficient resources could be granted to Member States most in need; and 

 

Possibilities to roll over debt. 

EN 

3 

  EN 

2022/0311 (NLE) 

Proposal for a 

COUNCIL IMPLEMENTING DECISION 

amending Implementing Decision (EU) 2020/1353 granting temporary support under 
Regulation (EU) 2020/672 to the Republic of Poland to mitigate unemployment risks in 
the emergency following the COVID-19 outbreak 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty on the Functioning of the European Union, 

Having regard to Council Regulation (EU) 2020/672 of 19 May 2020 on the establishment of 
a  European  instrument  for  temporary  support  to  mitigate  unemployment  risks  in  an 
emergency (SURE) following the COVID-19 outbreak1, and in particular Article 6(1) thereof, 

Having regard to the proposal from the European Commission, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

Further  to  a  request  from  Poland  on  6  August  2020,  the  Council,  by  means  of 
Implementing Decision (EU) 2020/13532, granted financial assistance to Poland in the 
form  of  a  loan  amounting  to  a  maximum  of  EUR 11 236 693 087  with  a  maximum 
average  maturity  of  15  years,  and  with  an  availability  period  of  18  months,  with  a 
view to complementing Poland’s national efforts to address the impact of the COVID-
19  outbreak  and  respond  to  the  socioeconomic  consequences  of  that  outbreak  for 
workers and the self-employed.  

The  loan  was  to  be  used  by    Poland  to  finance  the  short-time  work  schemes  and 
similar  measures,  as  referred  to  in  Article  3  of  Implementing  Decision  (EU) 
2020/1353.  

The  COVID-19  outbreak  has  immobilised  a  substantial  part  of  the  labour  force  in 
Poland.  This  has  led  to  a  still  sudden  and  severe  increase  in  public  expenditure  in 
Poland  in  respect  of  new  measures,  namely  PCR  testing  and  cash  benefits  for 
healthcare workers fighting COVID-19.  

The  COVID-19  outbreak  and  the  extraordinary  measures  implemented  by  Poland  in 
2020, 2021 and 2022 to contain that outbreak and its socioeconomic and health-related 
impact had and still have a dramatic impact on public finances. In 2020, Poland had a 
general  government  deficit  and  debt  of  6.9%  and  57.1%  of  gross  domestic  product 
(GDP)  respectively,  which  narrowed  to  1.9%  and  53.8%  respectively  at  the  end  of 
2021. According to the Commission's 2022 spring forecast, Poland is forecast to have 
a general government deficit and debt of 4.0% and 50.8% of GDP respectively by the 
end of 2022.  According  to  the Commission  2022 summer forecast, Poland’s GDP is 
projected to increase by 5.2% in 2022. 

1 
2 

OJ L 159, 20.5.2020, p. 1. 
Council  Implementing  Decision  (EU)  2020/1353  of  25  September  2020  granting  temporary  support 
under  Regulation  (EU)  2020/672  to  the  Republic  of  Poland  to  mitigate  unemployment  risks  in  the 
emergency following the COVID-19 outbreak, OJ L 314, 29.9.2020, p. 45. 

EN 

4 

  EN 

                                                 
(5) 

(6) 

(7) 

(8) 

On 19 September 2022, Poland requested the Union to extend the list of measures for 
which  financial  assistance  was  already  granted  by  Implementing  Decision  (EU) 
2020/1353 with a view to continuing to complement its national efforts undertaken in 
2020, 2021 and 2022 to address the impact of the COVID-19 outbreak and respond to 
the  socioeconomic  consequences  of  the  outbreak  for  workers  and  the  self-employed 
(‘the request’). In particular, Poland introduced a series of health-related measures to 
address the COVID-19 outbreak set out in recitals 6 to 7.  

Based  on  the  ‘Act  of  March  2,  2020  on  specific  solutions  related  to  the  prevention, 
counteraction  and  eradication  of  COVID-19,  other  infectious  diseases  and  crisis 
situations  caused  by  them’3,  the  Minister  of  Health  instructed  the  National  Health 
Fund to conclude with interested laboratories contracts on performing diagnostic RT-
PCR  tests  for  SARS-CoV-2.  The  costs  of  tests  were  financed  from  the  state  budget 
and they were commensurate to the number of people applying for testing. As referred 
to  in  the  request,  only  expenditure  executed  in  2020  and  2021  is  requested  to  be 
financed under SURE.  The measure is  new and  was  implemented from  end of April 
2020 to end of March 2022. 

Based  on  the  ‘Act  of  March  2,  2020  on  specific  solutions  related  to  the  prevention, 
counteraction  and  eradication  of  COVID-19,  other  infectious  diseases  and  crisis 
situations caused by them’4 and the ‘Act of August 14, 2020 on amending certain acts 
in order to ensure the functioning of health protection in connection with the COVID-
19  epidemic  and  after  it  has  ceased’5,  the  Minister  of  Health  ordered  the  National 
Health  Fund  to  transfer  to  medical  entities  performing  medical  activities  funds 
intended for granting the cash benefits for healthcare workers fighting COVID-19, as 
referred  to  in  the  request.  The  measure  consists  of  covering  the  costs  of  granting 
additional monthly cash benefit for medical professionals and one-off additional cash 
benefit  for  other  healthcare  workers.  The  benefit  was  granted  to  persons  who 
participated  in  the  provision  of  health  services  and  had  direct  contact  with  patients 
infected  and  suspected  of  being  infected  with  SARS-CoV-2  virus  in  organizational 
units of medical entities. Only expenditure executed in 2020 and 2021 is requested to 
be financed under SURE. The measure is new and was implemented from September 
2020 to end March 2022. 

that 

Poland fulfils the conditions for requesting financial assistance set out in Article 3 of 
Regulation  (EU)  2020/672.  Poland  has  provided  the  Commission  with  appropriate 
evidence 
increased  by 
the  actual  and  planned  public  expenditure  has 
EUR 11 826 003 428  as  of  1  February  2020  due  to  the  national  measures  taken  to 
address  the  socioeconomic  effects  of  the  COVID-19  outbreak.  This  constitutes  a 
sudden  and  severe  increase  because  it  is  also  related  to  the  new  health-related 
measures  to  address  the  COVID-19  outbreak  that  cover  a  significant  proportion  of 
undertakings  and  of  the  labour  force  in  Poland.  Poland  intends  to  finance 
EUR 9 100 000 of the increased amount of expenditure due to the new health-related 
measures through Union funds from the EU budget and EUR 580 210 341 through its 
own financing. 

3 

4 
5 

Art. 10a paragraph 1 and 2, and, after the expiry of Art. 10a, Art. 11h paragraph 2 point 2 and paragraph 
4. Dz.U. 2020 poz. 374, as amended 
Art. 10a paragraph 1. Dz.U. 2020 poz. 374 
Art. 42. Dz.U. 2020 poz. 1493 

EN 

5 

  EN 

                                                 
(9) 

The Commission has consulted Poland and verified the sudden and severe increase in 
the actual and planned public expenditure directly related to short-time work schemes 
and  similar  measures,  as  well  as  the  recourse  to  relevant  health-related  measures 
related to the COVID-19 outbreak, as referred to in the request of 19 September 2022, 
in accordance with Article 6 of Regulation (EU) 2020/672.  

(10)  The health-related measures, as referred to in Poland’s request of 19 September 2022 

and in recitals (6) to (7), amount to EUR 1 672 546 359.  

(11)  Financial  assistance  already  granted  by  Implementing  Decision  (EU)  2020/1353 
should therefore also cover the new measures referred to in recitals (6) to (7).  

(12)  This Decision should be without prejudice to the outcome of any procedures relating 
to  distortions  of  the  operation  of  the  internal  market  that  may  be  undertaken,  in 
particular  pursuant  to  Articles  107  and  108  of  the  Treaty.  It  does  not  override  the 
requirement  for  Member  States  to  notify  instances  of  potential  State  aid  to  the 
Commission under Article 108 of the Treaty. 

(13)  Poland should inform the Commission on a regular basis of the implementation of the 
planned public expenditure, in order to enable the Commission to assess the extent to 
which Poland has implemented that expenditure,  

HAS ADOPTED THIS DECISION:  

Implementing Decision (EU) 2020/1353 is amended as follows:  

Article 1 

(2) 

Article 3 is replaced by the following:  

Poland may finance the following measures: 

‘Article 3 

(a) 

a reduction in social security contributions, as provided for by Art. 31zo of the 
‘Act of 2 March 2020 on specific solutions related to the prevention, counteraction 
and eradication of COVID-19, other infectious diseases and crisis situations caused 
by them’, for the part of expenditure related to the support of self-employed persons, 
all social cooperatives  (regardless  of the number of employees)  and, for companies 
employing up to 50 people, the part of expenditure in respect of employees who were 
continuously in employment; 

(b) 

a  downtime  benefit  for  self-employed  persons  and  those  working  under  civil 
law contracts, as provided for by Art. 15zq and 15zua of the ‘Act of 2 March 2020 on 
specific solutions related to the prevention, counteraction and eradication of COVID-
19, other infectious diseases and crisis situations caused by them’; 

(c) 

subsidies towards salaries and social security contributions  of companies that 
use short-time work or voluntarily reduce working time or when the employees were 
continuously in employment, as provided for by Art. 15g, 15ga, 15gg, 15zzb, 15zze, 
15zze2 of the ‘Act  of 2 March 2020 on specific  solutions  related to  the prevention, 
counteraction  and  eradication  of  COVID-19,  other  infectious  diseases  and  crisis 
situations caused by them’; 

EN 

6 

  EN 

 
 
(d) 

subsidies to self-employed persons without employees as provided for by Art. 
15zzc  of  the  ‘Act  of  2  March  2020  on  specific  solutions  related  to  the  prevention, 
counteraction  and  eradication  of  COVID-19,  other  infectious  diseases  and  crisis 
situations caused by them’; 

(e) 

loans  convertible  into  subsidies  granted  to  self-employed  persons,  micro-
companies  and  non-government  organisations,  for  the  amount  actually  converted  into 
grants, as provided  for by Art. 15zzd, 15zzda of the  ‘Act of 2 March 2020  on specific 
solutions  related  to  the  prevention,  counteraction  and  eradication  of  COVID-19,  other 
infectious diseases and crisis situations caused by them’; 

(f) 

financing  the  performance  of  PCR  diagnostic  tests  in  the  laboratories  that 
concluded contracts  on  performing diagnostic RT-PCR tests  for SARS-CoV 2 with 
the National Health Fund, as provided for by Art. 10a paragraph 1 and 2, and, after 
the expiry of Art. 10a, Art. 11h  paragraph  2 point 2 and paragraph 4 of the ‘Act of 
March  2,  2020  on  specific  solutions  related  to  the  prevention,  counteraction  and 
eradication  of  COVID  19,  other  infectious  diseases  and  crisis  situations  caused  by 
them’; 

(g) 

granting additional monthly cash benefit for medical professionals and one-off 
additional  cash  benefit  for  other  healthcare  workers,  as  provided  for  by  Art.  10a 
paragraph  1  of  the  ‘Act  of  March  2,  2020  on  specific  solutions  related  to  the 
prevention,  counteraction  and  eradication  of  COVID  19,  other  infectious  diseases 
and  crisis  situations  caused  by  them’  and,  after  the  expiry  of  Art.  10a,  Art.  42  the 
‘Act of August 14, 2020 on amending certain acts in order to ensure the functioning 
of  health  protection  in  connection  with  the  COVID-19  epidemic  and  after  it  has 
ceased’. 

This Decision is addressed to the Republic of Poland. 

Article 2 

Done at Brussels, 

For the Council 
The President 

EN 

7 

  EN