The COVID-19 pandemic has caused the need for massive state aid to strengthen businesses in the member states of the European Union. The European Commission promptly adopted a soft law act in which it offered member states various instruments for providing state aid to businesses and specified the conditions and indicators upon fulfilment of which it will consider the provided state aid compatible with the internal market.
Article 106 (2) of the Treaty on the Functioning of the European Union allows an exemption of an undertaking operating services of general economic interest from the application of competition rules. The European law offers several regimes of financing of operation of services of general economic interest that do not constitute a state aid or can be exempted from the prohibition of state aid. The individual regimes of permissible financing of the operation of services of general economic interest determine the conditions under which financing is acceptable, in particular the rules of calculation of eligible compensation for the operation of services of general economic interest.
Regulations concerning public finance are very important in Polish legislation. It is particularly due to the economic crisis which may cause the loss of liquidity and even insolvency of financial institutions. It forces the state to look for numerous cost reductions. Support instruments have been introduced for entrepreneurs in the environment of economic slowdown caused by global crisis. Numerous changes have been made in the area of taxes, financing environmental protection activities, and agriculture. The rule that transport of people is based on public mass transport subordinated to competitive market rules has been introduced.
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