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Wolf Theiss Counsel Agnieszka Nowak-Blaszczak and Associate Oliwia Pecht talk about labor in 2025 in Poland.

CEELM: What are the likely most important labor legislative updates you expect in Poland in 2025?

Nowak-Blaszczak: 2025 is expected to bring challenges for employers, with several new regulations on the horizon. These include an amendment to the Labor Code changing the provisions on mobbing, a new law on collective bargaining agreements, a new law on the conditions of permissibility of entrusting work to foreigners in Poland, giving labor inspectors the power to reclassify civil law contracts as employment contracts, and the implementation of the Pay Transparency Directive. Two draft amendments to the Labor Code have been presented. The first, which partially implements the Pay Transparency Directive, has already been submitted to Parliament. The draft is stricter than the directive – it mandates that employers disclose salary information in job postings, whereas the directive merely necessitates that this information be shared prior to the job interview. It also requires employers to respond to employee requests for salary information within 14 calendar days (versus a two-month period). The second was published by the Government Legislation Center in February 2025 and introduces a new simplified definition of mobbing – understood as persistent harassment of an employee that is repetitive, recurrent, or permanent. The draft establishes the employer’s obligation to proactively and continuously prevent mobbing and outlines the specific measures that should be taken. It also specifies that the minimum compensation for mobbing should not be less than six months of the employee’s salary. The draft is criticized because some of the wording raises questions of interpretation (there is a chance that the ambiguous language will be revised).

Pecht: The aim of the new law on collective agreements is to streamline procedures, make negotiations more dynamic, and create a more transparent and adaptable framework for concluding collective agreements. It places considerable emphasis on promoting social dialogue, improving the alignment of working conditions, and facilitating more regular reviews of existing agreements. Moreover, the lower chamber of the Polish parliament has adopted a law regarding conditions of permissibility of entrusting work to foreigners in Poland. The aim is to limit the abuses that occur, streamline the procedures for entrusting work to foreigners, reduce the backlog of cases handled by the offices, and fully digitize the proceedings.

CEELM: Of the above, which ones are you/your clients most excited about and why?

Pecht: Employees and workers’ rights advocates generally support the enhanced enforcement against false self-employment, as it could lead to better social security protections and reduce unfair competition in the labor market. Employers who already prioritize compliance with employment law may welcome clearer guidelines on contract classification.

CEELM: On the flip side, which ones are you/your clients dreading the most and why?

Pecht: A potential update that has raised controversy is granting labor inspectors broad powers to convert civil law contracts into employment contracts if they determine that the criteria for an employment relationship are met. The aim is to protect employees from abuses and the circumvention of labor law and social security regulations.

Nowak-Blaszczak: Many employers oppose giving labor inspectors such powers, arguing that they should be left to the courts. Converting a civil law contract into an employment contract on the basis of an immediately enforceable arbitrary decision creates a risk for employers and the need to go to court to defend themselves. This could result in numerous court cases.

Pecht: Businesses that rely on flexible collaboration models fear that a stricter approach to contract reclassification could limit their ability to structure work arrangements efficiently and increase compliance risks.

CEELM: What are the biggest challenges faced by employers in Poland at the moment?

Pecht: Provided the legislation comes into force we’ll likely see a rise in disputes over contract reclassification. Additionally, companies will require more proactive legal strategies to ensure compliance with evolving labor regulations. Employers are currently struggling with rising labor costs, contractual uncertainties, and increased regulatory control. The planned labor inspectorate powers’ expansion could exacerbate concerns around workforce structuring. Whether these challenges will be adequately addressed depends on the final wording of the reform and its enforcement.

Nowak-Blaszczak: Under the  Pay Transparency Directive, employers with more than 250 workers will report on their gender pay gaps the first time in 2027. For that reason, we are likely to see an increased demand to review and assess pay structures and pay progression, identify any existing gaps, and determine how to address these gaps already in 2025.

This article was originally published in Issue 12.1 of the CEE Legal Matters Magazine. If you would like to receive a hard copy of the magazine, you can subscribe here.

Komnenic & Partners Managing Partner Milos Komnenic and Partner Nemanja Radovic talk about real estate in 2025 in Montenegro.

CEELM: Looking ahead to 2025, which segments of the real estate market do you anticipate will see the most activity in 2025?

Komnenic: Tourism and construction – particularly, real estate development – represent Montenegro’s two most significant industries. These industries are closely interlinked, as the largest construction projects are typically developed within the tourism sector or serve tourism-related purposes.

CEELM: How do large-scale tourism-related projects influence broader real estate development in the country?

Radovic: The development of major tourism projects such as Porto Montenegro, Porto Novi, and similar projects has had a far-reaching impact beyond the construction of these complexes, contributing to the development of entire regions or even cities where they are located. This has been achieved through the development of numerous residential, commercial, infrastructural, and other facilities. Consequently, the growth of tourism in recent years has significantly driven the expansion of the real estate industry.

CEELM: What are the main legislative updates, whether recent or on the horizon that will impact real estate in Montenegro in 2025?

Komnenic: Certain measures were undertaken by the Government of Montenegro in the past year, and some are planned for the current year, which will impact real estate in Montenegro. Some pose a potential threat to the real estate sector and particularly further development of the tourism sector, which could, in turn, have a detrimental impact on real estate development.

Specifically, in the previous period, the value-added tax rate applicable to the hospitality sector was increased from 7% to 15%, directly affecting the competitiveness and attractiveness of Montenegrin hospitality businesses compared to rival destinations. Additionally, the VAT exemption on the supply of goods and services for the construction and furnishing of five-star hotels has been abolished. Moreover, a new charge for utility infrastructure development for four- and five-star hotels is currently under consideration, along with the potential rumor about the abolition of the condo-hotel model – both of which would serve as further disincentives for investors in the tourism sector.

The issue of the utility infrastructure charge is particularly contentious since, despite being legally obligated to pay these fees, investors are frequently compelled to develop their own infrastructure, endure lengthy administrative procedures to obtain necessary approvals, and bear substantial costs to ensure the provision of essential utilities for their properties.

Radovic: The cumulative effect of these adverse regulatory changes could and will significantly affect the development of high-end tourism, which, as previously mentioned, is a key driver of growth across multiple industries, including real estate.

In the following days, the Parliament of Montenegro will adopt the new Construction Law and Planning Law – after decades, dividing them into two regulations. Rumor has it that there are hundreds of amendments so we cannot yet comment on the final text.

It is evident that these new regulations aim to replace the current construction notifications with construction permits, return usage permits instead of supervisory final reports, and overall return to an old approach that was ineffective in many aspects, particularly in terms of administrative delays.

CEELM: What are other challenges faced by developers in Montenegro at the moment? How likely is it in your view that these challenges will be addressed in 2025?

Komnenic: In addition to these regulatory challenges, Montenegro faces a serious shortage of urban planning documentation necessary for development. The prolonged delays in adopting new spatial plans, new changes in the planning law, and the frequent changes in the decision-making practices of competent authorities create further obstacles, making it increasingly difficult for investors to proceed with real estate projects.

Furthermore, geopolitical uncertainties on the global stage could have a negative impact on small markets such as Montenegro, particularly regarding foreign investments, which are essential for continued growth and development.

Radovic: Given the current market demand, it is likely that the number of residential real estate projects will continue to grow in 2025, despite the aforementioned challenges. However, in the long term, adverse effects on tourism could significantly impede further real estate development.

Therefore, it would be advisable for policymakers to implement measures that incentivize investment rather than introduce regulatory changes that could further deter investors from committing capital to the Montenegrin market.

This article was originally published in Issue 12.1 of the CEE Legal Matters Magazine. If you would like to receive a hard copy of the magazine, you can subscribe here.

MGG Law Partner Dino Gliha talks about TMT in 2025 in Croatia.

CEELM: What is in the pipeline in terms of legislation that you believe will have the most impact on TMT practices in Croatia?

Gliha: There are three key legislative updates in the TMT space that I’d highlight for Croatia. First, there’s the Media Act, which has been under discussion for the last 2-3 years. While no official draft has been published yet, leaked documents from working groups have sparked concerns about potential challenges to media freedom. The supervisory council overseeing the act might have an expanded scope, which has led to heated debates. Journalist associations and stakeholders are particularly worried, and we’ll likely see the first draft by the end of this year. This is definitely something to watch closely, especially as we move into 2026.

Second, there’s the Act on Representation in the Field of Intellectual Property Rights. This act is a bit outdated, and after long discussions, it’s finally on the legislative agenda. A working group has been formed, but we’re still waiting to see the proposed amendments. Most of the changes are expected in the latter part of the year. The act would most likely introduce amendments implementing EU laws but could review prescribed requirements for professionals entering the field. It might be a significant development for IP practitioners.

Lastly, there’s the implementation of EU regulations, particularly DORA and the AI Act. While DORA is already in force, the AI Act is set to take full effect in 2026. The AI Act focuses mainly on transparency, and the ethical use of AI, while many significant questions related to AI that should have been clarified remained outside the scope of the regulation. There’s still a lot of confusion in the market about its obligations. Many clients are unaware of what’s required, and there’s a lack of clear guidelines. This is a major area of focus, especially as AI adoption grows across industries.

CEELM: Of the above, which ones are you/your clients most excited about and why?

Gliha: Is anyone ever excited about new regulations? The Act on Representation in the Field of Intellectual Property Rights is more of a concern for practitioners like us. The changes concerning the Media Act seem to be something that people in media are not thrilled about, given the fears around media freedom. However, the AI Act and related regulations are generating a lot of discussion. Clients are starting to become more aware of AI’s potential, and there’s a lot of curiosity about how to leverage it while staying compliant. While it’s not exactly “exciting,” it’s definitely the most talked-about topic, especially as businesses explore AI-driven solutions.

CEELM: On the flip side, which ones are you/your clients dreading the most and why?

Gliha: The AI Act is probably the most daunting for clients. The main issue is the lack of clarity around obligations. If you ask five experts about compliance, you’ll likely get five different answers – similar to what happened with the GDPR in its early days. Many SMEs, in particular, are worried about the potential costs and risks of non-compliance. There’s also a lot of confusion about what constitutes AI and who will actually fall under the scope of the act. Clients love innovation but are hesitant to take on big risks, especially in the early stages of implementation. Without clearer guidelines, there’s a lot of uncertainty, which is causing anxiety.

CEELM: In which sectors relevant to your practice do you expect to see the most work in 2025 in Croatia? What do you believe will drive that work?

Gliha: I expect to see a lot of activity in sectors like science, IT, music, even chemistry, and agriculture, as these industries are increasingly exploring AI applications. AI is ultimately a tool that can be applied across various fields, and many clients are now trying to figure out how to integrate AI solutions while complying with new regulations. For example, companies working with IP rights are looking into how AI can streamline their processes, but they’re also concerned about compliance and ownership issues.

The drive behind this work is the growing awareness of AI’s potential and the need for strategic digital transformation. Clients are asking for AI readiness assessments and guidance on how to implement solutions without running afoul of regulations. AI is reshaping industries, and it’s fascinating to be part of that transformation.

This article was originally published in Issue 12.1 of the CEE Legal Matters Magazine. If you would like to receive a hard copy of the magazine, you can subscribe here.

Linklaters Warsaw Head of TMT/IP Szymon Sieniewicz talks about TMT in 2025 in Poland.

CEELM: What is in the pipeline in terms of legislation that you believe will have the most impact on TMT practices in Poland?

Sieniewicz: The regulatory landscape for TMT in Poland is undergoing significant changes, driven by both EU-level legislation and domestic legislative initiatives such as the AI Act. Some of its obligations became applicable already in February 2025, though most obligations will take effect on August 2, 2026.

The new Polish law on AI systems, which aims to align Polish laws with the AI Act, is still in progress. It covers aspects such as the appointment of the national supervisory authority, proceedings before that authority, and certification processes.

Poland is also taking steps toward implementing the EU’s NIS2 Directive, which enhances cybersecurity requirements for critical sectors across the EU. Since the implementation of the NIS1 Directive in 2018, there have been dozens of draft laws amending the Polish Act on the National Cybersecurity System. The law implementing the NIS2 Directive in Poland is expected to reach Parliament by the end of Q1 2025.

Furthermore, since DORA entered into force on January 17, 2025, both the financial sector and ICT service providers need to adapt to enhanced standards in the area of digital operational resilience. In February 2025, the Polish Financial Supervision Authority repealed and revoked several soft laws that previously set the cybersecurity framework for the financial sector in Poland.

The newly adopted Data Act is one of the EU legal acts that are intended to support better use of the potential of the constantly growing amount of data in Europe and to support the creation of a single market for data in the EU. The Data Act will apply from September 12, 2025. Its primary objectives are to ensure fair access to data and its use between individual market participants in the digital economy, stimulate competition in the data market, and increase the availability of data.

There is also ongoing work on the new Polish Data Governance Act, which, among other things, will expand the catalogue of possibilities for public sector data reuse by the private sector. This should lead to the implementation of the EU Data Governance Act. We expect the new law to be adopted in H1 2025.

CEELM: Of the above, which ones are you/your clients most excited about and why?

Sieniewicz: Clients in the TMT sector are particularly excited about the AI Act, as its phased implementation provides opportunities for organizations to leverage artificial intelligence in a safer and more structured manner.

Furthermore, the draft Polish Data Governance Act is receiving attention due to its potential to expand the opportunities for reusing public sector data. Through greater data accessibility, it encourages collaboration between the public and private sectors, potentially leading to innovative data-driven solutions and services.

CEELM: On the flip side, which ones are you/your clients dreading the most and why?

Sieniewicz: Many clients are concerned about the compliance burdens associated with the new EU digital legislation, especially the AI Act and the NIS2 Directive. The implementation of the former will pose many challenges with questions around the interpretation of concepts in the act (e.g., “AI system”, “prohibited AI practices”). The European Commission’s guidelines are expected to be helpful in this area, it is, however, already clear that they do not address all our clients’ doubts and questions. Moreover, there are concerns about data privacy and copyrights. In these areas, we observe continuous developments, particularly by tracking ongoing litigations in the US and EU countries.

The implementation of the NIS2 Directive is causing apprehension among some clients. Although enhancing cybersecurity is essential, the increased compliance requirements pose significant challenges. The necessity for substantial investments in cybersecurity infrastructure and personnel training may lead to increased operational costs. The new cyber laws are expected to affect tens of thousands of Polish businesses. These procedural adjustments, along with the need to establish new supervisory bodies (e.g., overseeing compliance with the AI Act), could lead to uncertainties in compliance and increased administrative burdens.

CEELM: In which sectors relevant to your practice do you expect to see the most work in 2025 in Poland? What do you believe will drive that work?

Sieniewicz: Technology companies (big tech, software houses, gaming studios) will likely see an increase in demand for legal services due to the expected growth of the sector and emerging new regulatory compliance obligations. On the other hand, organizations implementing new technologies, including AI tools, will increasingly seek legal assistance as they begin to leverage these innovations. Additionally, there is a potential for increased tech M&A activity, indicating growing interest from clients investing in technology.

We expect cybersecurity matters to keep TMT lawyers busy this year. The critical sectors (energy, transport, healthcare, etc.) are also poised for an increase in TMT work due to the expected implementation of the NIS2 Directive. This will also affect new sectors such as public electronic communications services, social platforms, wastewater and waste management, etc., while the financial sector will also need to continue with DORA’s implementation.

This article was originally published in Issue 12.1 of the CEE Legal Matters Magazine. If you would like to receive a hard copy of the magazine, you can subscribe here.

When I was invited by the CEE Legal Matters team to write a guest editorial for the CEE Legal Matters magazine, I was initially perplexed, as my career path has been far from traditional. Upon deeper reflection, though, having a second profession alongside a law degree offers unique advantages, particularly when combined with the opportunity to provide both legal and business consultancy services, such as information security consultancy.

This multidisciplinary expertise enables a deeper understanding of clients’ needs by bridging the gap between legal frameworks and practical business realities. For instance, a background in fields like IT, finance, or engineering can offer valuable insights into industry-specific challenges, allowing for tailored solutions that go beyond standard legal advice. Offering business consultancy services alongside legal counsel not only enhances the value delivered to clients but also fosters a more holistic approach to problem-solving. It enables legal professionals to address strategic, operational, and compliance-related concerns in a cohesive manner, which is particularly beneficial in complex, highly regulated industries. Furthermore, this dual expertise can set legal professionals apart in a competitive market, positioning them as trusted advisors capable of contributing to broader business goals rather than merely mitigating risks. In essence, combining a second profession with legal practice not only broadens one’s skill set but also enriches the overall client experience, promoting innovation and efficiency in service delivery.

Since I started my career dealing with technology and digitalization matters, the CEE region has undergone significant digital transformation, driven by economic ambitions, technological advancements, and societal shifts. The region’s journey has been marked by the interplay of EU funding, a talented workforce, and investments in digital infrastructure, positioning CEE as a dynamic player in the global digital economy. The startup ecosystem in CEE has flourished, producing globally recognized companies, and cities like Warsaw and Bucharest have become innovation hubs, supported by accelerators, venture capital, and government incentives. The region’s tech-savvy workforce has also been instrumental in its digital evolution, and we saw countries like Poland, Czech Republic, Hungary, and Romania becoming IT outsourcing hubs, thanks to their skilled professionals in software development, data analytics, and cybersecurity. Infrastructure development, including the widespread adoption of high-speed internet and mobile networks, has further accelerated the digital transformation. Many countries in the region have achieved high penetration rates for mobile internet and are early adopters of 4G and 5G technologies. This has also created significant work for both IT and legal professionals specializing in this field. Personally, I believe this trend will continue, with countries in the CEE region maintaining their investments in digital transformation, as it impacts every industry and sector.

EU membership has played a pivotal role in shaping the digital landscape across many CEE countries. While fragmented national legislation in areas such as telecommunications, data protection, and ePrivacy has created significant workloads for TMT practices throughout the region, this fragmentation has often posed an economic disadvantage for most countries, as it complicates cross-border operations and compliance for businesses. However, the EU, as one of the most active regulators in the digital economy, has been working to develop overarching and standardized regulations in line with its 2020 Data Strategy. This aims to ensure a coherent digital framework across member states, although these regulations can sometimes be cumbersome and impose requirements that may impact the competitiveness of companies operating within the EU.

In practice, EU-level regulations such as the Digital Services Act, Data Governance Act, Data Act, AI Act, and DORA, along with upcoming regulations in cybersecurity, including the Cyber Resilience Act, significantly streamline the work of lawyers specializing in digitalization and technology-related matters. These harmonized frameworks reduce legal complexity and facilitate more efficient cross-border operations, benefiting both businesses and legal practitioners. While differences at the level of Member States persist – for example, in the implementation (or, in many cases, the lack of implementation) of the NIS2 Directive – information security principles have increasingly become cross-border and unified, fostering greater consistency across the EU.

Therefore, my response to CEE Legal Matters’s question (“What is your personal opinion about lawyering in CEE? Is it good, bad, or getting better?”) is a resounding yes – it is definitely getting better and sought after.

By Tamas Bereczki, Partner, Provaris Varga & Partners

This article was originally published in Issue 11.11 of the CEE Legal Matters Magazine. If you would like to receive a hard copy of the magazine, you can subscribe here.

In The Corner Office, we ask Managing Partners at law firms across Central and Eastern Europe about their backgrounds, strategies, and responsibilities. This time around we asked: If you have a formal partnership track, how do you handle lawyers on it who do NOT end up living up to the requirements to make a Partner?

Ivana Ruzicic, PR Legal, Serbia:

A transparent process and an open dialogue are essential for successfully addressing the challenges of the partnership track. Being on this track is a shared responsibility – candidates must demonstrate their ability to meet the firm’s requirements, while the firm must provide mentorship, resources, and conditions to support their growth. Clear communication and management of expectations are key. Regular feedback ensures that candidates understand their progress and areas for improvement. If it becomes evident that the candidate may not meet the requirements, a candid conversation is necessary. Such discussions should be approached constructively, focusing on potential alternatives within the firm or preparing for a professional transition. Not every partnership track journey ends in partnership, and that is okay. Some candidates may find fulfillment in other roles within the firm, while others may thrive elsewhere. In such cases, a mutually respectful and supportive parting is often the best solution for both the individual and the firm. Ultimately, fostering a culture of honesty and support benefits everyone involved, ensuring that the process aligns with the values and goals of both the candidate and the firm.

Istvan Szatmary, Oppenheim, Hungary:

At Oppenheim, we see our Senior Associates and Counsels as the future of the firm. They are the ones we believe can generate new business and contribute to the sustainability of the firm, both financially and from a leadership perspective. Therefore, we are convinced that reviewing the progress and effort put into the development of our senior colleagues from time to time is an investment both for the one on the partner track and for the firm. Although we have some KPIs that we measure, we focus on trends, tendencies, and potential future prospects rather than just on specific numbers. This ensures that our candidates can see where their strengths are and where they need more mentoring or coaching. We are aware of how difficult such a process can be for the younger generation, so we conduct open discussions throughout the process. If we come to a mutual conclusion that we need to change, we are flexible to make any correction on the path. This is the reason why we have never lost a colleague on the partner track due to an unsatisfactory outcome on either our or their side.

Adi Ibrahimovic, Ibrahimovic & Co, Bosnia and Herzegovina:

In our firm, the partnership track is carefully managed to be both fair and transparent. For lawyers on the track who, despite initial support, aren’t meeting the required metrics for partnership – be it business generation or client development – we have a structured approach. We typically extend the evaluation period by six to twelve months, during which we work closely with the individual to identify and address any specific gaps. This could involve targeted mentorship or training in areas like strategic client relations or market positioning.

If, however, after the extension, it becomes clear that the partnership role is not the right fit, we explore alternative paths within the firm. These may include Senior Counsel or Senior Associate roles, where their skills can continue to add value. This structure allows us to keep the partnership track competitive and encouraging for high performers while respecting and utilizing the strengths of each team member.

Milos Velimirovic, Kinstellar, Serbia:

The partnership track at Kinstellar is a challenging yet rewarding path, with defined milestones that lawyers are expected to achieve within a given timeframe. Becoming a Partner represents the culmination of years of dedicated work, the development of legal and various soft skills, and commitment to the firm’s values and strategic goals.

Our thoughtful and structured candidate selection process results in very few lawyers who do not achieve results along the way. However, when challenges arise, we take a proactive approach. We identify the underlying issues through active communication, feedback culture, and transparent evaluations and provide targeted support to foster continued collaboration. Our future Partners can access extensive support resources, including leadership training, business development and client relationship management, people management, negotiation skills, and more.

By approaching this process with transparency and empathy, Kinstellar ensures that both the firm and its lawyers continue to grow in ways that support long-term success.

Kostadin Sirleshtov, CMS, Bulgaria:

CMS doesn’t have an “up-or-out” policy, but rather a partnership model, which is flexible and allows Senior Associates or Counsels to be part of the firm for a long period. Therefore, there is no pressure on “being on the partnership track,” but “not meeting the requirements” per se. Transparency is key in addressing situations like this, which are often happening with excellent niche professionals, who can’t leverage their specific and deep professional knowledge by broadening their teams. As an all-service law firm, we recognize the need for such professionals and indeed we cherish their contribution to the well-rounded offering that we are in a position to provide to clients. We manage the expectations of our superb senior lawyers and their readiness for the partnership challenges is assessed through several stages of senior lawyer development programs and pre-assessments in order to avoid as much as possible any last-minute disappointments.

Octavian Popescu, Popescu & Asociatii, Romania:

The journey from law graduate to lawyer is paved with extensive academic knowledge and rigor. However, turning a lawyer into a skilled and successful one demands hard work, determination, and a wide array of qualities such as professionalism, efficiency, persistence, availability, and proactivity.

Yet, one of the greatest challenges for any law firm is transforming a talented, even exceptional lawyer, into a Partner. In this regard, the criteria for partnership must be clearly outlined from the start, including expectations, business development, leadership qualities, and alignment with the firm’s values. Regular performance reviews and open feedback sessions are integral to tracking progress and addressing any gaps.

Attorneys pursuing partnerships who do not qualify for consideration as Partners require a thoughtful, structured, and professional approach. Mostly, transparency in the process is very important, and we are striving to prioritize fair treatment, providing a balanced and impartial approach. The focus then shifts to career development. Together, we explore the alternative roles within the firm that align with the lawyer’s skills and aspirations.

This article was originally published in Issue 11.11 of the CEE Legal Matters Magazine. If you would like to receive a hard copy of the magazine, you can subscribe here.

Over the past few years, the gaming sector has been thriving in CEE. Kinstellar Partner Milan Samardzic, Rowan Legal Partner Milos Olik, ACI Partners Head of Fintech and E-Payments Nicolina Turcan, and Linklaters Warsaw Associate Aleksandra Czubek explore how CEE jurisdictions are driving the industry forward and unlocking new potential.

Rising Gaming Hubs

In recent years, Serbia has positioned itself as “a rising star in the global gaming industry,” Samardzic notes. “The gaming industry in Serbia continues to thrive, showcasing a diverse ecosystem of developers and publishers catering to a wide array of gaming preferences.” Among some prominent players, he highlights Wargaming: “best known for its military strategy franchises, including World of Tanks, World of Warships, and World of Warplanes, Wargaming remains an independent powerhouse focusing on A-list games with immersive military and strategy-based experiences.” Other key industry contributors include TinyBuild, Playrix, Nordeus, and Ubisoft Belgrade.

A similar pattern is present in Poland, where “the Polish gaming market is internationally recognized for producing high-quality games, including titles like The Witcher, Cyberpunk 2077, and This War of Mine,” Czubek points out. “Major players include CD Projekt, 11 Bit Studios, and People Can Fly.”

In the Czech Republic, Olik notes that major players include “Bohemia Interactive (ArmA, DayZ), Warhorse Studios (Kingdom Come: Deliverance, owned by Austria’s Koch Media, part of Embracer Group), 2K Czech (the Mafia series, owned by US-based Take-Two Interactive), SCS Software (Euro Truck Simulator, American Truck Simulator), and Amanita Design (indie games like Samorost, Machinarium),” with some of them focusing on “realistic PC and console games,” while others specialize “in A-list titles, particularly story-driven action-adventure games like Mafia.”

Meanwhile, Turcan highlights that “the Moldovan market is focused predominantly on gambling activities, such as lotteries, sports betting, and slot machines,” with the “gambling market being primarily state-controlled.” According to Turcan, “the establishment and operation of casinos fall outside the scope of the monopoly. Casinos can be operated by private entities, provided they meet strict licensing conditions.” Currently, two partnerships stand out: “Novo Investment MLD S.R.L., which manages the development of slot machine activities, including via electronic communication networks, and NGM Company S.R.L., responsible for the development of lotteries and sports betting, also including electronic communication networks.”

Government Boosts

In terms of the contributing factors, the role of government programs in supporting the sector plays a key role. In Serbia, Samardzic says that “government support has been instrumental in nurturing Serbia’s gaming industry,” with “programs organized by the Serbia Innovation Fund provide grants to tech start-ups, including game developers, enabling them to innovate and scale.” He also draws attention to “the favorable tax regulations – especially R&D benefits for IP – further consolidate Serbia’s position as a country to develop your games in.” Additionally, “local associations such as Digital Serbia Initiative focus on enhancing the country’s digital infrastructure and fostering a conducive environment for technological advancements, further propelling the gaming sector’s growth.”

A similar approach is evident in Poland, where “the Polish government offers initiatives like e.g., GameINN, a program aiming to enhance the competitiveness of the Polish gaming industry on a global scale,” Czubek says. The program “focuses on research, development, and innovation to drive sectoral advancements, providing financial incentives and grants.”

“The primary support ecosystem for gambling companies in Moldova is regulatory in nature,” Turcan also emphasizes. “The Gambling Law, together with secondary legislation such as the Standard Regulation on the Organization of Gambling Activities Through Electronic Communication Networks provides a structured legal framework for the organization and operation of gambling activities. These regulations ensure compliance, transparency, and oversight, creating a predictable environment for operators.” Beyond gambling, Turcan says, “the broader IT sector benefits from favorable tax regimes and support for tech startups, by enhancing the overall tech ecosystem.”

Future developments are also on the horizon in the Czech Republic. “The government will support the gaming ecosystem next year, with funding for educational activities, festivals, and conferences,” Olik says. Industry advocacy plays a key role, with “the Association of Czech Game Developers advocates for industry interests in Europe, while the Czech eSports Association represents gaming clubs and players in public forums.”

Educational Ecosystem

Other macroeconomic factors also play a significant role in shaping the gaming industries in these regions. “Poland’s gaming industry benefits from a robust support ecosystem,” Czubek notes. “This includes educational institutions offering courses in game development, design, and related fields – such as a game development path in the film directing course at the Warsaw Film School, a master’s in computer graphics at the Polish-Japanese Academy of Information Technology, and diploma in interactive media at the University of Silesia, ensuring a steady influx of skilled graduates equipped to enter the industry.” There are also “numerous investment opportunities, as many venture capitalists and investment funds recognize the potential of Polish gaming companies. The gaming community in Poland further supports this environment through meetups, hackathons, and online forums,” she says.

Similarly, the education system in Serbia has been instrumental in fostering its tech and gaming industries. Samardzic explains that “Serbia’s universities (and large tech companies) play a vital role in preparing the next generation of game developers,” with “institutions such as the University of Belgrade’s Faculty of Electrotechnical Engineering, Faculty of Mathematics, and University of Novi Sad’s Faculty of Technical Sciences offering specialized programs in computer science, game design, and interactive media. These programs provide the students with the skills needed to succeed in the competitive gaming industry, ensuring a steady pipeline of skilled professionals.” Additionally, he says, “the Serbian Games Association actively connects local developers through networking opportunities, events, and workshops, fostering a culture of shared knowledge and growth. This community-driven approach has been pivotal in creating a strong foundation for the gaming ecosystem.”

“Moldova benefits from a highly skilled and multilingual IT workforce proficient in advanced technical fields,” Turcan agrees, “making the country an attractive destination for software development and IT services, particularly in areas requiring technical expertise.” Consequently, “the IT sector’s capabilities position Moldova as a potential hub for outsourcing in software development, including contributions to international game development projects.”

Payment Pitfalls

The payment landscape for gaming companies presents both opportunities and challenges across different regions. In Serbia, Samardzic explains that “while these structures provide flexibility, gaming companies face several challenges that can complicate financial planning.” Among these, “revenue-sharing models introduce unpredictability. Payment cycles for platforms like Steam and PlayStation Store are often extended, causing cash flow issues for smaller studios reliant on timely income.” Additionally, “payments made in foreign currencies can be affected by exchange rate volatility, reducing the amount received. However, the local currency remains stable over a mid-term period, thus decreasing this risk. High bank fees for international transfers further erode payment values, creating additional financial strain.” Tax-related complexities add another layer of difficulty, as “cross-border transactions require navigating diverse tax regulations, which can lead to administrative burdens and unexpected costs. For example, the application of value-added tax on digital products varies by jurisdiction, and sales through global platforms often involve complex VAT compliance requirements.”

Turcan notes that Moldova’s payment systems are well-developed and capable of supporting diverse business operations. “Gambling operators are required to integrate their payment systems with Moldovan state online monitoring system, through which the gambling operators transfer tax-related information to the State Tax Authority.” The sector is also subject to stringent anti-money laundering regulations, she notes, and “these rules not only categorize online gambling operators as specific risk entities for financial institutions but also impose direct reporting obligations under Moldova’s AML framework.”

In Poland, the payment landscape also presents challenges, Czubek says, including issues such as “payment security, regulatory compliance, and currency fluctuation management.” Companies have taken proactive measures to address these issues. For instance, “CD Projekt has implemented multi-factor authentication to enhance payment security in their digital distribution service, GOG.com, ensuring safe transactions. Similarly, 11 Bit Studios has integrated flexible payment options to cater to a global audience, allowing transactions in multiple currencies and thereby managing currency fluctuation risks effectively.”

This article was originally published in Issue 11.11 of the CEE Legal Matters Magazine. If you would like to receive a hard copy of the magazine, you can subscribe here.

In our Looking In series, we talk to Partners from outside CEE who are keeping an eye on the region (and often pop up in our deal ticker) to learn how they perceive CEE markets and their evolution. For this issue, we sat down with Amsterdam-based Dentons Europe Corporate group Co-Chair Kuif Klein Wassink

CEELM: What was your first interaction with the CEE region?

Klein Wassink: My first dealings with CEE were many years ago when I was still at Baker McKenzie. I worked on various deals, especially in Turkiye.

Actually, Dentons’ strong practice in Central Europe was one of the things that attracted me to join the firm – I was excited by the opportunity to work on inbound and outbound deals in CEE using the Netherlands as a gateway. CEE companies frequently use Dutch BVs for holding companies for their international investments and joint ventures, so there is a natural connection between our markets.

CEELM: As for the current pipeline of CEE-focused work, what has been keeping you busy in the last 12 months?

Klein Wassink: One highlight for me this year was the acquisition by Yanmar – a Japanese industrial company – of Czech-based TEDOM from the Jet Investment fund. The deal was led out of Prague and included lawyers from Slovakia, Poland, Germany, the UK, and the Netherlands. The client was very happy with the team on this deal, and I anticipate other similar opportunities in the future. I also worked with colleagues in the UK and Poland on eSky’s acquisition of Thomas Cook Tourism (UK) Company Limited from Fosun Tourism Group. My team and I are currently advising on the restructuring of shareholder arrangements involving two different Dutch holding companies for investments in Southeastern Europe. There are more deals to come which we will announce once they are signed – so stay tuned!

CEELM: Which sectors or industries in CEE do you think are poised for the most growth in the upcoming future?

Klein Wassink: Since the onset of the Ukraine war, there has been a lot of M&A and financing activity in the energy sector, and there are no signs of this slowing down. The technology sector has come of age in recent years, with acquisitions in CEE by global players such as Microsoft, Cisco, Intel, and others, as well as investments by various private equity players. The explosive growth of generative AI is accelerating M&A in the technology sector – we’re advising sell-side in three auction processes where the target has a strong AI focus. We anticipate that the technology sector will continue to grow. While food and other retail have received a fair amount of investment in Poland and the Czech Republic, there are significant growth opportunities in other CEE countries through modern and innovative formats, including online shopping platforms. Healthcare will continue to attract private investment, as populations come to expect better services with less waiting time than some of the national healthcare systems are able to provide. When peace finally returns to Ukraine, we anticipate significant investment in Ukrainian infrastructure, accelerated by IFC’s USD 2 billion Economic Resilience Action Program for the country.

CEELM: As for the specific markets, which countries in the CEE region do you find more promising or challenging?

Klein Wassink: Each of the markets presents its own unique opportunities and challenges. For example, Poland is the largest market with the greatest opportunities to make significant infrastructure investments or to scale a domestic business, yet the competition for investments there is pretty fierce. Czech Republic has dozens of family offices and other financial groups that invest outbound in CEE and around the world, as well as entrepreneurs who have built businesses that compete on a global scale. Even Ukraine has proven to be very resilient in the face of obvious challenges, with our Kyiv office having been active on a few telecoms and energy M&A transactions in the last two years.

CEELM: What is your perspective on internationals in CEE – how will their presence evolve?

Klein Wassink: Sometimes it seems that for every international law firm that retrenches (such as W&C) or pulls out of the region (such as Weil, Hogan Lovells, or Noerr), another pops into its place (Clyde & Co, Osborne Clarke, DWF) or invests in growth (Dentons, Kinstellar, Wolf Theiss). But it’s clear that to thrive, an international law firm must be aligned around a strong internal strategy. For Dentons, this strategy involves being aligned around key clients and priority sectors that benefit from collaboration regionally and with Dentons teams in Western Europe and throughout the world.

This article was originally published in Issue 11.11 of the CEE Legal Matters Magazine. If you would like to receive a hard copy of the magazine, you can subscribe here.

As Poland accelerates its shift toward renewable energy, particularly in offshore wind, key factors drive this transition. Partner and Head of the Compliance Department at KWKR Mariusz Purgal and Penteris Partner Sebastian Janicki look at the country’s renewable energy landscape, major projects, government incentives, challenges, and role in the European Union’s energy transition.

Commitments Made to Renewable Energy

“Poland’s recent surge in renewable energy projects, particularly in offshore wind, is driven by several key factors,” Purgal begins. “The primary driver is the country’s commitment to energy transformation, aiming for decarbonization by 2050. This involves a gradual phase-out of coal, increasing the demand for alternative energy sources like offshore wind.”

Purgal goes on to add that Poland is obligated to meet the EU’s climate goals, “including achieving a 32% share of renewable energy in final energy consumption by 2030. Legislative changes and government support, such as financial mechanisms and renewable energy auctions, also play a crucial role in attracting investments in offshore wind as a promising development area.”

Janicki highlights EU directives and national policies, saying that Poland’s recent surge in renewable energy projects is propelled by several EU directives and national policies aimed at reducing coal dependency and achieving climate targets. “Central to this is the European Green Deal, which aims for EU-wide carbon neutrality by 2050,” he says while also noting pressure from the Fit for 55 initiative. “Fit for 55 places pressure on Poland to overhaul its coal-heavy energy mix. Thanks to European Investment Bank loans and the EU Just Transition Fund and Invest EU programs, Poland benefits from financial support to ease coal phase-out, slated for completion by 2049.”

Major Projects and Key Players

Several significant renewable energy projects are in development, with major industry players involved. Outlining key projects, Purgal notes that “in offshore wind, notable projects include Baltic Power by Orlen Group, Baltic Sea by PGE, and F.E.W. Baltic by RWE. Companies like Equinor and Orsted are also planning to build wind farms in the Baltic Sea, with a combined capacity of several gigawatts.” Additionally, he shares that there are ongoing developments in photovoltaic projects and onshore wind farms.

Chiming in, Janicki also highlights offshore wind projects such as Orsted and PGE’s Baltica 2 and 3, “projected to generate up to 2.5 gigawatts. Equinor and Polenergia, with Siemens Gamesa as a turbine supplier, are key players in offshore wind. Vestas has plans to open manufacturing plants near Szczecin to support local wind projects.” Moreover, he also mentions nuclear energy developments, adding that “in nuclear, the government has partnered with Westinghouse for a large nuclear plant, with additional locations under consideration. Poland has also been active in small modular reactor development, with Orlen Synthos and other companies pursuing SMR projects for industrial needs.”

Government Support

Furthermore, government policies and incentives play a crucial role in Poland’s move away from coal dependency.

“The Polish government has adopted several key policies to support the energy transition,” Purgal reports. “These include amendments to the Renewable Energy Sources Act and the Energy Law, support mechanisms for renewable energy, the green certificate system, and investment programs in renewables.” He highlights the importance of the Polish Energy Policy until 2040 which “emphasizes the dynamic development of renewable energy sources. The government is also engaged in international climate and energy mechanisms within the EU, accelerating the decarbonization process.”

Regarding the specifics of the Polish Energy Policy until 2040, Janicki says that “it targets 23% renewable energy by 2030, with major expansions in offshore wind and solar power, aiming for 5.9 gigawatts in offshore wind capacity by 2030 and 11 gigawatts by 2040.” He also mentions incentives for individual participation, including “programs like Moj Prad, promoting prosumer solar energy, and Czyste Powietrze, supporting energy-efficient home upgrades.” Additionally, “programs like Stop Smog and Moje Cieplo encourage low-carbon alternatives, which align with Poland’s goal of reducing coal use in residential heating and power generation,” Janicki adds.

Infrastructure Challenges

Despite progress, Poland faces legal and infrastructure hurdles that could impede renewable energy growth. “A significant barrier is the integration of new energy sources with the existing grid infrastructure,” Purgal says, identifying key challenges. “Poland’s transmission and distribution networks are largely adapted to coal-based energy, and integrating renewables requires substantial infrastructure investments.” Moreover, he notes legal issues as well. “Legal regulations are also not always aligned with new technologies, causing project delays. Efforts are underway to amend relevant laws, including the Renewable Energy Sources Act and the Energy Law, to facilitate the development of renewables in Poland.”

Focusing on grid integration challenges, Janicki reports that “Poland faces non-negligible challenges regarding renewables, especially as it expands offshore wind and solar. Poland’s power grid operator PSE has announced a USD 16 billion investment plan to support high-voltage transmission infrastructure, essential for transporting energy from coastal wind farms and nuclear power plants.” Highlighting the scale of the overhaul, Janicki says that “this massive infrastructure overhaul – the development of 4,850 kilometers of new energy lines, moving the current center of energy production from southern to northern Poland – along with necessary upgrades in grid capacity, requires strong technical and financial commitment and extensive workforce training for long-term viability.”

Additionally, international cooperation and public engagement are shaping Poland’s renewable energy strategy as well. “Cross-border cooperation, especially in offshore wind energy, is crucial,” Purgal notes. “Poland collaborates with Germany and Denmark to develop joint projects and create unified energy markets. Public consultations, particularly for infrastructure projects, are an integral part of the decision-making process, ensuring transparency and local community involvement in planned investments,” he adds. “This is especially important as wind farms can sometimes be burdensome for residents of neighboring areas.” On collaborations, Janicki reports that “Poland’s renewable strategy also benefits from regional collaborations and EU initiatives. Through the Baltic Declaration, Poland cooperates with Baltic neighbors to enhance offshore wind potential, while the Baltic Pipe, connecting Poland with Denmark and Norway, diversifies its gas supply.”

Poland’s Role in the EU’s Energy Transition

Ultimately, Poland’s energy transition is significant for the EU’s broader climate targets. “As an EU member, Poland plays a significant role in achieving common climate and energy goals,” Purgal says. “By implementing the objectives of the European Green Deal, Poland is committed to reducing greenhouse gas emissions and increasing the share of renewables in its energy mix.” Still, he acknowledges the depth of this challenge, stating that “Poland’s significant reliance on coal makes this transformation a major challenge. Cooperation within the EU, both politically and technologically, is key to ensuring the success of Poland’s energy transition.”

Janicki concurs with Purgal, adding that “Poland is both a critical player and is faced with unique challenges.” According to him, Poland’s energy transition is key to the EU’s overall climate goals. “Its plans to reduce coal reliance, expand renewable and nuclear capacity, and implement EU-aligned policies underscore its role in supporting the EU’s vision for a carbon-neutral future by 2050,” he concludes.

This article was originally published in Issue 11.11 of the CEE Legal Matters Magazine. If you would like to receive a hard copy of the magazine, you can subscribe here.