Bulgaria: New provision allowing price indexation in public procurement contracts

On 5 August 2022, an amendment to the Bulgarian Public Procurement Act (“PPA”) came into force, allowing for price indexation of public procurement contracts in the event of inflation. The amendment aims to address the effects of industrial inflation caused by the COVID-19 pandemic and amplified by the war in Ukraine. Although the new provision applies to public procurement contracts in all industries, the need for price indexation is most pressing in relation to construction contracts.

Corona Crisis: Differing legal treatment of lease and rent is constitutional

In the decision G 279/2021-15, the Austrian Constitutional Court ("VfGH") had to deal with the question whether lessees of enterprises as well as tenants of business premises would have to pay only a reduced rent for the period of limited usability of the business premises due to Covid-19 lockdowns.

Green lease agreements in the context of the Taxonomy Regulation

The European Green Deal plan was adopted by the European Commission in December 2019 as an ambitious package of measures, ranging from reducing greenhouse gas emissions to investing in cutting-edge research and innovation, and conserving Europe's natural environment. Based on this, the European Commission has adopted three regulations that form the framework for the implementation of environmental, social and governance criteria, one of which is Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 on the establishment of a framework to facilitate sustainable investment, and amending Regulation (EU) 2019/2088 (the "Taxonomy Regulation"), which provides that only those economic activities that significantly contribute to the achievement of environmental objectives are "green".

Superstructure goes online!

The Document Filing Act (Urkundenhinterlegungsgesetz), Federal Law Gazette 1974/326 as amended by Federal Law Gazette I No. 86/2021, contains regulations applicable to real estate, buildings and structures not recorded in the Austrian Land Register. Up until now, it has only been possible to obtain documents relating to such real estate by consulting the respective document collection at court in question; it was not possible to make an online query. This will now change.

Mandatory use of “Glass Gateway” clarified

A recently published amendment to Government Decree 707/2021 (XII.15.) regulating the use of the “Glass Gateway” provides more detailed definitions of the construction activities for which the use of the system is mandatory.

4th Supreme Court decision on the obligation to pay rent during lockdown: Partial payment of the rent is affirmed in the case of partial usability. The intended use agreed upon for the property is especially relevant.

In its fourth decision to date on claims for a reduction in rent in connection with the COVID-19 pandemic (Supreme Court decision of 25/01/2022 in case 8 Ob 131/21d), the Supreme Court has now addressed the question of whether (potentially) offering a takeaway and delivery service from the premises of a catering business during the "second lockdown" (17 November to 6 December 2020) constitutes partial usability of the leased property and therefore whether this also gives rise to an obligation on the part of the tenant to pay (part of) the rent.

Draft law on urban planning and a draft law on construction

On 14 January 2022, the Government of the Slovak Republic submitted a draft law on urban planning and a draft law on construction to the National Council of the Slovak Republic for discussion

The subject of taxation of private real estate in Belarus is broadened

On the last day of 2021, the Tax Code of the Republic of Belarus was amended by Law No. 141-Z. Among other significant changes, some changes related to the taxation of real estate were introduced.

The Romanian Code of Territorial Planning, Urbanism and Construction – a new type of regulation in Romania

In 2021, the preliminary theses of the Code of Territorial Planning, Urbanism and Construction (the "Urbanism Code") were published. Various specialists, representatives of public institutions and professional entities with competences in the field of construction were involved in drafting these ideas that served as the basis for the Urbanism Code.

No obligation to pay rent for useless business premises during the lockdown

In its judgement 3 Ob 78/12y of 21 October 2021, the Austrian Supreme Court dealt for the first - but probably not for the last - time with the question of rent reduction during lockdown. With regard to a complete nonusability of business premises due to officially ordered prohibition of access, a first fundamental decision is now at hand.