Central Europe

How COVID-19 policy responses differed in Central Europe (Leonardo Iacovone, Natasha Kapil, Lukasz Marek Marc, Giovanna Marcolongo, Ilias Skamnelos, and Gallina A. Vincelette, Brookings)

The COVID-19 pandemic touched most businesses across Central Europe, but some were affected more than others. Countries implemented diverse policies to alleviate the shock to firms. In response to the first wave of COVID-19, sizable fiscal programs were deployed, amounting to 11.7 percent of GDP in Poland, 6.7 percent in Bulgaria, and 5.4 percent in Romania. All countries implemented lending and credit guarantee schemes. However, as shown in Table 1, the policy mix varied across countries. Poland implemented policies to support the self-employed and workers through wage subsidies, Bulgaria reduced VAT on selected goods and services, and Romanian firms had access to loan subsidies and debt moratoria.

How COVID-19 policy responses differed in Central Europe (