Poland maintains economic growth despite weaker external demand

Poland’s economy continued to demonstrate resilience during the first half of 2026, supported by stable domestic demand, moderating inflation and continued industrial growth, although external trade and foreign direct investment remained more subdued than in recent years, according to the latest Macroeconomic Review published by the Polish Investment and Trade Agency (PAIH).

The report estimates that Poland’s gross domestic product reached PLN 3.65 trillion in 2024, with the economy expected to expand by 3.5% to 3.6% in both 2025 and 2026, broadly in line with forecasts from the European Commission and the International Monetary Fund. Preliminary data indicate that GDP increased 3.5% year-on-year in the first quarter of 2026, reflecting continued economic momentum.

The labour market remains relatively stable despite signs of a gradual cooling. Registered unemployment stood at 5.9% at the end of May 2026, slightly lower than in April but higher than the 5.0% recorded a year earlier. The number of registered unemployed reached 915,900, while average employment in the enterprise sector remained broadly unchanged from the previous month and was 0.9% lower than in April 2025. Average gross monthly wages in the enterprise sector increased 5.4% year-on-year in April despite a slight monthly decline.

Industrial production continued to expand. Sold industrial output increased 4.1% year-on-year in May and was 3.1% higher over the first five months of the year than during the corresponding period of 2025. After seasonal adjustment, industrial production rose 4.4% compared with May last year and 1.4% from April, suggesting manufacturing activity remained resilient despite weaker international demand. Growth was led by intermediate and investment goods production, while durable consumer goods continued to contract.

Inflation moderated further during the spring. Consumer prices declined 0.3% month-on-month in May while annual inflation eased to 3.1%. Producer prices increased 2.4% year-on-year, indicating that price pressures continued to ease after the elevated inflation experienced in previous years. Food prices were only 0.5% higher than a year earlier, while transport and household-related costs remained among the largest contributors to inflation.

Foreign trade remained broadly balanced but reflected softer international demand. Between January and April 2026, exports totalled PLN 532.8 billion, an increase of 3.3% compared with the same period of last year, while imports rose 2.9% to PLN 540.1 billion, resulting in a trade deficit of PLN 7.3 billion. The European Union remained Poland’s dominant trading partner, accounting for approximately three-quarters of exports and just over half of imports.

The report also highlights a moderation in foreign direct investment. According to National Bank of Poland data, inward FDI totalled PLN 56.5 billion in 2024, significantly below the exceptionally strong inflows recorded in 2022 and 2023. Nevertheless, the accumulated stock of foreign direct investment in Poland increased to nearly PLN 1.4 trillion, underlining the country’s continued attractiveness for international investors. Manufacturing remained the largest recipient of foreign investment, while services accounted for the largest overall stock of FDI.

Monetary policy remained unchanged during the period. Following its June meeting, the Monetary Policy Council maintained the National Bank of Poland’s reference interest rate at 3.75%, with the marginal lending rate at 4.25% and the deposit rate at 3.25%, reflecting a cautious approach as inflation continues to move towards the central bank’s target.

Poland also maintained investment-grade sovereign credit ratings from the three major international agencies. Moody’s continues to rate the country at A2 with a negative outlook, while both Standard & Poor’s and Fitch assign ratings of A-, with stable and negative outlooks respectively.

Overall, the latest PAIH review points to an economy that continues to outperform many European peers through steady domestic demand, moderate GDP growth and resilient industrial production. At the same time, slower foreign investment and a more challenging external environment suggest that maintaining competitiveness and attracting new investment will remain important priorities as Poland enters the second half of 2026.

Europe’s AI talent race intensifies as investment accelerates

Artificial intelligence, cybersecurity and cloud computing specialists are becoming some of Europe’s most sought-after professionals as governments and businesses accelerate investment in digital infrastructure. While experienced IT specialists in Poland can now earn up to PLN 30,000 gross per month in permanent employment, and considerably more under business-to-business (B2B) contracts, Western European markets continue to offer higher salaries in many technology roles.

According to an analysis by Personnel Service, entry-level programmers in Poland typically earn between PLN 6,000 and PLN 11,000 gross per month, while professionals with several years of experience receive PLN 12,000 to PLN 18,000. Senior specialists can earn up to PLN 30,000 gross, with higher remuneration often available through freelance and B2B arrangements.

Although Germany and the Czech Republic continue to offer higher average salaries, the wage gap is narrowing in specialist fields such as artificial intelligence, cloud engineering and cybersecurity. Programmers in Germany currently earn between €3,500 and €5,500 gross per month, while salaries in the Czech Republic typically range from €3,000 to €4,000.

Krzysztof Inglot, founder of Personnel Service and President of the Polish Outsourcing Association, said companies are increasingly competing for specialised digital skills rather than general programming expertise. He noted that Poland is becoming more competitive in attracting technology professionals as employers increasingly match Western European salary levels for high-demand roles.

The tightening labour market coincides with a major increase in public investment in Europe’s digital economy. According to the European Commission’s 2026 State of the Digital Decade report, EU Member States have committed to 1,934 digital measures with a combined value of €289.3 billion, covering areas including artificial intelligence, semiconductors, cloud infrastructure, cybersecurity and digital public services.

The investment programme forms part of the European Union’s broader strategy to strengthen technological competitiveness and reduce dependence on non-European technology providers. Among the priority areas are semiconductor manufacturing, advanced computing infrastructure, cloud services and artificial intelligence, with additional legislative initiatives under preparation to reinforce Europe’s technology ecosystem.

The growing investment pipeline is expected to increase demand for highly qualified professionals across multiple disciplines, including AI and machine learning, cybersecurity, cloud architecture, embedded software engineering and data science. According to the Commission, ICT specialists currently account for approximately 5% of total EU employment, only half of the 10% target set for 2030 under the Digital Decade programme.

Demand is also being driven by a widening digital skills gap. The Commission warns that, without further action, the European Union risks falling short of its target of employing 20 million ICT specialists by 2030, highlighting the need for continued investment in education, reskilling and workforce development.

Personnel Service’s own labour market research suggests employees are responding to these structural changes. Its latest Barometer of the Polish Labour Market found that 45% of respondents intend to acquire new professional skills, 56% want to improve their competitiveness in the labour market, and 40% cite rapid technological change as the primary motivation for further training.

As artificial intelligence becomes increasingly integrated into business operations, competition for talent is shifting away from traditional software development towards specialist expertise in emerging technologies. While salary remains an important factor, employers are also competing through the quality of projects, opportunities for professional development and access to cutting-edge technologies. With hundreds of billions of euros now committed to Europe’s digital transformation, demand for advanced technology skills is expected to remain strong throughout the remainder of the decade.

Polish housing loan demand remains strong in June despite monthly slowdown

Demand for housing loans in Poland remained above last year’s level in June, although the pace of growth moderated compared with previous months, according to the latest BIK Index of Demand for Housing Loans.

The index increased 15.8% year-on-year, indicating that, on a working-day adjusted basis, the total value of mortgage inquiries submitted by banks and cooperative credit unions (SKOKs) to the Credit Information Bureau (BIK) was 15.8% higher than in June 2025.

A total of 42,830 people applied for a housing loan during the month, compared with 37,400 applicants a year earlier, representing an annual increase of 14.5%. However, demand softened compared with May, with the number of applicants declining 5.0% month-on-month.

The average value of a mortgage application reached a new record of PLN 506,640, up 6.2% from June 2025 and 0.2% higher than in May.

According to Waldemar Rogowski, Chief Analyst at the BIK Group, the latest figures continue to indicate healthy demand for mortgage financing. He noted, however, that not every application is linked to the purchase of a property, as some borrowers are refinancing existing housing loans.

Rogowski also expects annual growth rates to moderate in the coming months as comparisons will increasingly be made against the stronger market conditions that emerged during the second half of 2025, reducing the favourable base effect that has supported recent year-on-year increases.

The record average loan amount reflects continued growth in property values and financing needs. BIK said the June reading of the index was driven by a combination of a higher number of mortgage applicants and an increase in the average amount requested. As applicant numbers stabilise, future growth in the index is expected to depend increasingly on changes in average loan values.

The BIK Index of Demand for Housing Loans measures changes in the value of mortgage applications submitted by individual borrowers compared with the corresponding period of the previous year. The indicator is widely used to monitor trends in Poland’s residential mortgage market and as an early indicator of future lending activity.

ZooRoyal opens first pet specialty store in North Rhine-Westphalia

REWE and its pet retail brand ZooRoyal have expanded their brick-and-mortar retail network with the opening of the first ZooRoyal specialty store in North Rhine-Westphalia. The new location, which opened in Düsseldorf on 16 July, marks the company’s fifth standalone pet store and its first outside northern Germany.

The new store covers more than 1,400 sq m and combines retail, advisory services and pet care facilities under one roof. REWE said the opening forms part of ZooRoyal’s strategy to expand its physical presence alongside its established online business.

Marcel Bersch, Managing Director of ZooRoyal, said the Düsseldorf store has been designed to offer pet owners a combination of specialist products, professional advice and services focused on animal health and wellbeing.

Jürgen Rölle, Managing Director Sales at REWE Region West, said North Rhine-Westphalia represents one of Germany’s largest markets for pet products and described the new opening as the first step in expanding the concept across the region.

Animal health is a central feature of the new store. Around 200 sq m has been dedicated to products and information covering areas such as joint care, digestion, skin health, dental care and immune support. REWE also plans to add a Medivet veterinary practice to the location in 2027, further expanding its healthcare offering.

The store stocks more than 15,000 products, including food and accessories for dogs, cats, birds, small animals, reptiles, horses and fish. The assortment ranges from conventional pet food to specialised diets, fresh food, BARF products, organic and vegetarian options, together with exclusive private-label brands.

The Düsseldorf location also places particular emphasis on customer services. Facilities include grooming services, self-service washing stations for dogs, laundry facilities for bulky pet textiles such as dog beds, unpackaged treat bars for dogs and cats, engraving services and dedicated photo areas.

A large aquarium department features freshwater and marine fish, aquatic plants and technical equipment, while a dedicated aquascaping area allows customers to design customised aquarium layouts.

ZooRoyal has also expanded its cat category with a larger selection of scratching posts, sleeping areas, toys and care products, supported by a redesigned store layout intended to improve navigation through dedicated product zones.

The new store is operated by independent REWE retailer Simon Bacher, who already manages a REWE supermarket in Haan and is preparing to take over another location in Düsseldorf.

The opening is being celebrated between 16 and 18 July with promotional events, including product giveaways, pet activities and veterinary consultations.

The Düsseldorf store forms part of ZooRoyal’s broader expansion strategy. Additional specialty stores are planned across Germany during 2026, 2027 and beyond, with the next location scheduled to open in Osnabrück.

Trnavské mýto emerges as Bratislava’s next mixed-use district

Long known as one of Bratislava’s busiest transport intersections, Trnavské mýto is entering a new phase of development as a series of public and private investments reshape the area into a mixed-use urban district. While the large-scale Istropolis redevelopment is the most visible project, a growing number of residential, commercial and regeneration schemes are collectively changing the character of one of the capital’s best-connected neighbourhoods.

The transformation is centred on the former House of Trade Unions site, where developer Immocap has begun construction of the first phase of the new Istropolis district. The development represents one of Slovakia’s largest real estate investments, with an estimated value of around €600 million, and will be delivered over several stages extending into the early 2030s.

The first phase comprises three buildings, including office and residential space supported by retail and public amenities. Once fully completed, the district is expected to include nine buildings, approximately 600 apartments, office space for thousands of employees, a new cultural and congress venue, retail premises and landscaped public spaces designed to reconnect surrounding neighbourhoods.

The project reflects a broader shift in urban planning priorities, moving beyond individual buildings towards creating integrated districts where offices, housing, cultural facilities and public space coexist within walking distance of major transport infrastructure.

Development activity is also expanding into neighbouring streets. On nearby Kominárska Street, the Lofty Kominárska project is converting a former industrial printing facility into residential lofts and apartments rather than replacing the existing structure. The development preserves much of the original reinforced concrete construction while adapting the building for contemporary residential use, illustrating the growing emphasis on adaptive reuse across Bratislava.

The project also incorporates permanent contemporary art installations within the retained industrial spaces, demonstrating how former manufacturing buildings are increasingly being repurposed as cultural as well as residential assets.

Its location alongside the Unitas housing complex further reinforces the area’s architectural significance. Designed in the early 1930s by pioneering functionalist architects Friedrich Weinwurm and Ignác Vécsei, Unitas remains one of Slovakia’s most important examples of modernist social housing and continues to influence redevelopment in the surrounding neighbourhood.

Investment is not limited to new buildings. Nearby Nová Tržnica, one of Bratislava’s landmark market halls, continues to undergo gradual modernisation through upgrades to public areas, lighting and visitor navigation, complementing wider improvements to the public realm.

Transport infrastructure remains a defining advantage for the district. Trnavské mýto already serves as one of Bratislava’s principal interchange points for trams, buses and trolleybuses, while the ongoing reconstruction of Bratislava-Východ (Bratislava East) railway station is expected to further strengthen regional and national connectivity. Planned transport improvements, including the future Metro Line M3 proposal, are intended to reinforce the area’s long-term accessibility.

The wider district is also attracting additional residential investment. New housing developments surrounding Istropolis are gradually filling former industrial and underused sites, creating a more balanced mix of residential, office and commercial uses than previously existed.

Urban planners increasingly view the transformation as part of a longer-term evolution rather than a collection of isolated projects. Alongside new construction, developers are placing greater emphasis on preserving industrial heritage, introducing pedestrian-friendly public spaces, expanding greenery and improving links between previously disconnected parts of the city.

As construction progresses over the coming years, Trnavské mýto appears set to evolve from a transport gateway into one of Bratislava’s most significant mixed-use districts, combining employment, housing, culture and public space within one of the capital’s best-connected locations.

Czech apartment rents continue to rise in Q2 2026, led by Prague and Brno

Apartment rents increased across most major Czech cities during the second quarter of 2026, with the strongest annual growth recorded in smaller and medium-sized apartments, according to an analysis by the real estate platform UlovDomov.cz.

Monthly rents ranged from CZK 9,600 for a one-room apartment (1+kk) in Ostrava to CZK 32,880 for a three-room apartment (3+kk) in Prague. In most cities, rents for 2+kk and 3+kk apartments recorded the strongest annual growth.

In Prague, rents per square metre increased by 2% year-on-year for 1+kk apartments to CZK 529, while 2+kk apartments recorded a 14% increase to CZK 452 per sq m. Rents for 3+kk apartments declined by 5% to CZK 411 per sq m. A typical 55 sq m 2+kk apartment rented for approximately CZK 24,860 per month.

Brno also recorded strong rental growth, particularly for smaller apartments. Rents per square metre increased by 13% for 1+kk apartments to CZK 463, while both 2+kk and 3+kk apartments recorded annual increases of 14%, reaching CZK 366 and CZK 318 per sq m respectively. A model 55 sq m 2+kk apartment rented for around CZK 20,130 per month.

Rental trends were more mixed in other regional cities. In Olomouc, rents for 3+kk apartments increased by 17% year-on-year, while prices for two-room apartments remained broadly stable and rents for 2+1 apartments declined slightly. In Ostrava, rents for 1+kk and 2+kk apartments increased by 19%, while 3+kk rents remained unchanged from a year earlier. In Pilsen, the strongest increases were recorded for 1+1, 3+1 and 3+kk apartments, where rents rose between 14% and 16%.

Average monthly rents for a model 55 sq m 2+kk apartment reached approximately CZK 15,565 in Ostrava, CZK 15,840 in Olomouc and CZK 15,400 in Pilsen.

According to the UlovDomov Index, purchasing a home with a mortgage became less affordable relative to renting during the second quarter. The company said rising mortgage interest rates, combined with increasing residential property prices, continued to push up monthly mortgage repayments.

Data from the Czech Banking Association’s Hypomonitor showed the average mortgage interest rate increased to 4.67% in May from 4.52% in April.

The difference between mortgage repayments and rental costs remained most pronounced in Prague and Brno, where monthly mortgage payments for smaller and medium-sized apartments were approximately 50% to 100% higher than market rents. Ostrava continued to offer the closest balance between owning and renting, with mortgage repayments for 1+kk and 2+kk apartments only around 10% to 20% higher than rental costs. For larger 3+kk apartments in Ostrava, however, mortgage payments were still approximately 50% higher than rents.

Source: UlovDomov & CTK

Slovakia’s inflation eases to 3.5% in June as food prices decline

Slovakia’s annual inflation rate eased to 3.5% in June 2026, matching the level recorded in March and marking the lowest annual inflation rate so far this year. Consumer prices also declined 0.1% month-on-month, the first monthly decrease since the beginning of 2026, mainly reflecting lower fuel and food prices.

The moderation in inflation was supported by the first year-on-year decline in food and non-alcoholic beverage prices since June 2021, while lower fuel prices also contributed to the monthly fall in consumer prices. At the same time, housing and energy costs continued to exert upward pressure on inflation following regulatory changes introduced in January.

On a monthly basis, prices declined in three of the 13 expenditure categories under the revised COICOP 2018 classification. Transport recorded the largest decrease, with prices falling 2.1%, primarily due to a 6.0% drop in the cost of fuels and lubricants for private transport. Prices for food and non-alcoholic beverages declined 0.7%, while alcoholic beverages and tobacco became 0.5% cheaper.

Food prices fell across six of the nine food groups. The largest monthly declines were recorded for vegetables and fruit, both down by more than 3%, while prices also fell for milk, cheese and eggs, bread and cereals, and meat. By contrast, prices increased for oils and fats, selected food products and non-alcoholic beverages.

The main upward pressure on monthly inflation came from the housing and energy category, where prices increased 0.4%, driven by a 1.0% rise in imputed rents for owner-occupied housing together with higher water supply and housing maintenance costs. Housing and energy account for 21.8% of the average Slovak household’s expenditure, making it the largest component of the consumer basket.

Prices also increased for package holidays, contributing to a 0.6% rise in the recreation, sport and culture category, while restaurant and accommodation services recorded a 0.4% monthly increase.

On an annual basis, prices increased in 12 of the 13 expenditure categories. Housing and energy remained the largest contributor to inflation, with prices rising 7.3% compared with June 2025. Higher housing costs, including both actual and imputed rents, together with energy prices, continued to reflect the impact of the government’s regulatory measures introduced at the beginning of the year.

Food and non-alcoholic beverages were the only category to record a year-on-year decline, with prices falling 0.5%. Food prices alone were 1.1% lower than a year earlier, reflecting lower prices for milk, cheese and eggs (-3.6%), meat (-3.2%) and oils and fats (-12.9%). However, prices for bread and cereals, as well as fruit and nuts, remained higher than a year earlier.

Annual inflation in the transport category slowed to 5.3%, as fuel prices, although still 11% higher than a year earlier, increased at a much slower pace than in previous months. Lower air fares also helped moderate transport inflation.

Other categories continuing to contribute to annual inflation included recreation, sport and culture, where prices rose 4.8%, and restaurant services, which increased 5.1% year-on-year. Alcoholic beverages became 0.2% cheaper than a year earlier, mainly due to lower beer and wine prices.

During the first six months of 2026, consumer prices in Slovakia increased by an average of 3.7% compared with the same period of 2025.

Core inflation, which excludes regulated prices and administrative measures, stood at 1.9% year-on-year in June, while net inflation, which also excludes food prices, reached 3.1%. On a monthly basis, core inflation declined 0.1%, while net inflation remained unchanged.

The Statistical Office also introduced a revised consumer basket for 2026 based on household spending patterns in 2024 and the new COICOP 2018 classification. Under the updated weighting, housing and energy account for 21.8% of household expenditure and food and non-alcoholic beverages for 20.9%, making them the two largest components of the inflation basket.

Slovak industrial new orders extend annual decline in May

New industrial orders in Slovakia declined for the eighth consecutive month in May 2026, although the pace of contraction eased compared with April, according to preliminary data released by the Statistical Office of the Slovak Republic.

Industrial new orders totalled €5.72 billion in May, representing a 3.4% year-on-year decline. While this marked a smaller decrease than in the previous month, it remained the fourth-largest annual drop recorded during the current eight-month period of declining order volumes.

On a seasonally adjusted basis, new orders increased by 1.9% compared with April 2026, indicating a modest month-on-month recovery despite the continuing annual weakness.

Seven of the twelve industrial sectors monitored by the statistical office recorded lower new orders than a year earlier. The largest negative contribution came from the manufacture of computer, electronic and optical products, where new orders fell 57.9% year-on-year. Other notable declines were recorded in the manufacture of basic metals and fabricated metal products, down 5.8%, and the manufacture of electrical equipment, which declined 9.6%.

Growth was concentrated in a smaller number of industries. The manufacture of machinery and equipment n.e.c. recorded a 10.5% increase in new orders, while chemical and chemical products grew by 4.0%. The strongest percentage increase was reported by the manufacture of wearing apparel, where new orders rose 26.2% compared with May 2025.

The latest figures suggest that Slovakia’s industrial sector continues to face uneven demand across manufacturing industries, with gains in selected sectors insufficient to offset broader weakness in export-oriented manufacturing.

Drucianka Campus reaches key construction milestone in Warsaw

Construction of Drucianka Campus, a mixed-use development by Liebrecht & wooD Poland in Warsaw’s Praga-Północ district, has entered a key phase. The project, being developed on the site of the former Drucianka wire factory near the modernised Warszawa Wschodnia railway station, is scheduled for completion in 2028 and will deliver nearly 38,000 sq m of office, retail and service space.

Liebrecht & wooD, which has operated in the Polish market for more than 30 years, is redeveloping the former Warsaw Wire, Pins and Nails Factory, continuing its regeneration strategy following the successful Centrum Praskie Koneser project. The development combines the restoration of historic industrial buildings with new commercial space and public amenities.

Upon completion, Drucianka Campus will comprise approximately 30,000 sq m of office space and 8,000 sq m of retail and service facilities. The developer describes the project as a mixed-use business campus designed to support companies in attracting and retaining employees by providing modern workplaces alongside retail, dining and leisure amenities.

According to a survey conducted by Kantar Polska among employees at Centrum Praskie Koneser, 80% of respondents said working in a revitalised mixed-use environment had a positive impact on their wellbeing.

Magdalena Bartkiewicz-Podoba, CEO of Liebrecht & wooD Poland, said the quality of the workplace has become an increasingly important factor in companies’ competitiveness and talent retention. She said Drucianka Campus has been designed to combine historic and contemporary architecture with green spaces, modern technologies and a broad range of retail, dining and event facilities, while benefiting from direct access to one of Warsaw’s largest transport hubs.

Located within Warsaw’s New City Centre programme

Drucianka Campus is being developed on the border of the Praga-Północ and Praga-Południe districts, within the area covered by the New City Centre Warsaw urban regeneration programme.

The project is located close to three major transport interchanges: Warszawa Wschodnia, Dworzec Wileński and Warszawa Stadion, providing access to suburban, regional and long-distance rail services, Metro Line M2, as well as an extensive tram and bus network.

Warszawa Wschodnia station is currently undergoing a comprehensive modernisation programme due for completion in 2029. Following redevelopment, the station is expected to handle more than 50,000 passengers per day. It will also be directly integrated with the planned Metro Line M3, making it the only railway station in Warsaw where passengers will be able to transfer directly to the metro without leaving the station building.

Marc Lebbe, Managing Partner at Liebrecht & wooD, said the continuing transformation of Praga-Północ, including projects delivered under the New City Centre Warsaw programme, the redevelopment of Warszawa Wschodnia station and the future Metro Line M3, will significantly improve the district’s accessibility and support further urban development. He added that Drucianka Campus and Centrum Praskie Koneser are intended to play an important role in that transformation.

The wider regeneration area is also attracting residential investment. Drucianka Campus will be surrounded by new housing developments, including Drucianka Wschodnia, being developed by SGI, together with additional residential schemes planned by other developers.

Targeting BREEAM Outstanding certification

The development is being delivered in line with Liebrecht & wooD’s ESG strategy and has been designed to minimise its environmental impact. The buildings are expected to achieve BREEAM Outstanding certification, the highest rating under the environmental assessment system, reflecting advanced sustainability and energy-efficiency standards.

Bartkiewicz-Podoba said the project has been planned with a long-term perspective and is being delivered using a construction management model, allowing the developer to retain greater control over quality, scheduling and project execution. She added that the company expects Drucianka Campus to become one of the developments that will contribute to the long-term transformation of Warsaw’s Praga-Północ district.

Hungary updates investment research rules under EU Listing Act

Hungary has adopted amendments to the Investment Firms Act implementing the EU Listing Act, introducing new rules governing the preparation, labelling and payment of investment research. The changes, which enter into force on 18 July 2026, affect investment firms, research providers and issuers commissioning or distributing research.

One of the key changes is the replacement of the term “investment analysis” with “investment research”, aligning Hungarian legislation with the terminology used under the EU market abuse framework. Investment firms are expected to review internal policies, research templates, client disclosures, disclaimers and marketing materials to ensure the updated terminology is used consistently.

The amendments also establish a general standard requiring investment research prepared by investment firms or third parties to be fair, clear and not misleading. Where the conditions of Commission Delegated Regulation (EU) 2017/565 are met, research must be identified as investment research or by a similar designation, requiring firms to distinguish more clearly between research, market commentary and promotional material.

The legislation introduces a regulated framework for issuer-sponsored research. Research funded wholly or partly by an issuer may only be described as issuer-sponsored research if it complies with the EU Code of Conduct for issuer-sponsored research. Investment firms producing or distributing such research will need procedures to verify and document compliance with the Code.

Issuer-funded material that does not meet the Code’s requirements must instead be treated as marketing communication, making the distinction important for both labelling and the regulatory obligations governing its distribution.

The amendments also assign issuers responsibility for submitting issuer-sponsored research to the Hungarian supervisory authority, which will act as the national collection body for the European Single Access Point (ESAP). Issuers must also provide metadata confirming compliance with the EU Code of Conduct. Although issuer-sponsored research will not be classified as regulated information under capital markets legislation or as investment research under the Investment Firms Act, it remains subject to labelling requirements, Code compliance obligations and supervisory oversight.

The new rules also provide greater flexibility in the way firms pay for third-party research. Investment firms may purchase research together with execution services or pay for it separately. Where research and execution are bundled, agreements with research providers must identify the proportion of costs attributable to investment research. Firms must also disclose their payment model to clients and carry out at least annual assessments of the quality, usefulness and value of research, including its contribution to investment decision-making. Where research is purchased separately, it must be financed either from the firm’s own resources or through a dedicated research payment account.

Certain services are excluded from the definition of investment research, including trading commentary directly linked to the execution of financial instrument transactions and other personalised trade advisory services. However, these communications may still be subject to other regulatory requirements relating to investment advice, marketing or client protection.

Investment firms will also be required to maintain records of all identifiable costs relating to third-party research and provide this information to clients on request each year. Firms may therefore need to review whether existing systems adequately capture research-related costs, particularly where research is purchased alongside execution services.

The amendments strengthen supervisory powers as well. Where issuer-sponsored research prepared or distributed by an investment firm does not comply with the EU Code of Conduct, the Hungarian supervisory authority may suspend its distribution and issue a public warning.

Following public consultation, which concluded on 2 June 2026, the new research-related provisions will take effect on 18 July 2026. Market participants are expected to review their research policies, issuer-sponsored research procedures, payment arrangements, client disclosures and record-keeping processes ahead of implementation.

Source: CMS

« Previous 1 … 64 65 66 67 68 … 575 Next »

Latest news

All posts by fletcher@cijeurope.com.