Europaudvalget 2025
KOM (2025) 0225
Offentligt
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EUROPEAN
COMMISSION
Brussels, 4.6.2025
SWD(2025) 225 final
COMMISSION STAFF WORKING DOCUMENT
2025 Country Report - Slovakia
Accompanying the document
Recommendation for a COUNCIL RECOMMENDATION
on the economic, social, employment, structural and budgetary policies of Slovakia
{COM(2025) 225 final}
EN
EN
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ECONOMIC DEVELOPMENTS AND KEY POLICY
CHALLENGES
Growth prospects are uncertain
and competitiveness is
deteriorating
The economy grew by 2.1% in 2024, but
the outlook remains uncertain.
A relatively
strong economic growth in 2024 was fuelled
mainly by household and public consumption
throughout the year. Expectations for an
increase in taxes in 2025 supported private
consumption in the last quarter of 2024.
Conversely, investment contracted in both the
third and fourth quarters of 2024, following
the robust expansion in 2023, which was
mostly due to a peak in absorption of EU
funds. A modest trade surplus supported the
continuation of growth in 2024, but
geopolitical tensions are likely to hinder its
sustainability. Exports recovered and helped
reduce Slovakia’s persistent current account
deficit, but inflationary pressures and a high
government deficit still pose a risk for the
sustainability of the external position (
1
) GDP
growth is forecast at 1.5% in 2025 and 1.4%
in 2026, as trade tensions erode export
activity, tame global demand and increase
uncertainty. Inflation fell to 3.2% in 2024 but
is expected to rise to 4.0% in 2025, due to the
introduction of higher taxes. The economic
outlook remains highly uncertain in view of
possible external shocks, including further
trade tensions driven by tariffs imposed by the
US.
Slovakia’s small, open and highly
industrialised economy faces increasing
competitiveness challenges.
The country’s
competitiveness is weakened by low labour
(
1
) The external position
refers to a country’s financial and
trade balance with the rest of the world, including
exports, imports, debt and investments.
productivity growth, which declined in 2022
and somewhat recovered in 2023 and 2024.
The recovery in labour productivity did not
keep up with increases in unit labour costs.
Together with a persistent shortage of skilled
labour, the existing large innovation gap with
other EU countries, which has widened in
recent years (see Annex 3), and the significant
drop in foreign direct investment (FDI) inflows
(see Graph 1.1) have further weakened
Slovakia’s
overall competitive position.
Graph 1.1:
FDI stock (% of GDP) in Slovakia
60
58
56
54
52
50
48
46
44
2013
2014
2015
2016
2017
2018
2020
2021
2022
2023
Source:
Eurostat
The job market is tight, marked by
shortages and skills mismatches
The job market in Slovakia remains tight
amid strong demand.
The employment rate
remained above the EU average in 2024 (78%
vs 75.9%), and the unemployment rate
reached a historic low in Q3-2024 (5.1%, EU
average: 5.7%). However, the job market in
Slovakia is very tight and marked by shortages
of workers, especially in healthcare and
education, and skills mismatches. This is
compounded by an ageing population, which
undermines Slovakia’s growth potential and
labour productivity. In addition, various groups,
most notably women and Roma, are
under-represented in the job market, hindering
output growth (see Annex 10). -Broad-based
2
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regional
disparities
in
socio-economic
development
for instance related to
demographics and the availability of basic
services and jobs
further contribute to
uneven economic development across the
country.
Wages have grown faster than inflation,
which however remains high.
Following a
decline in 2022 and 2023, real wages
increased by 3.8% in 2024 and are forecast to
increase by 0.9% in 2025. This is the result of
expected higher future inflation, which will
limit real wage growth (
2
). Despite wage
increases driven by rising inflation, which have
resulted in robust growth in unit labour costs
(ULC) of 5.0%, this trend has not led to a
commensurate increase in labour productivity,
which has experienced only modest growth of
2.2%.
The
purchasing
power
losses
experienced by households between 2021 and
2023 also contributed to a significant decline
in real disposable household income. While
wages have been increasing to compensate
for the rising inflation, pushing up the growing
unit labour costs (ULC), labour productivity
growth has been decreasing.
and diversification, most notably in the areas
of public administration, green energy, job
market and education, tax administration,
R&D, innovation and health. Innovative firms
also face insufficient access to finance due to
underdeveloped capital markets (see Section 2
and Annex 5). In parallel, to help Slovakia
transition to a modern economy, a critical
review is needed of the current growth model,
which is heavily reliant on a low-cost
workforce and concentration of productivity
gains in the manufacturing sector, which is
largely foreign-owned.
Slovakia continues to face vulnerabilities
related to competitiveness, the external
position, the housing market and
household debt.
Earlier this year, an in-depth
review was carried out as part of the
macroeconomic imbalance procedure (
3
). The
analysis found that, while the inflation
differential with the euro-area average has
narrowed, it remains significant, weighing on
competitiveness. In 2024, the current account
deficit worsened somewhat, large government
deficits continue to pose a risk to the external
sustainability as well as to fiscal sustainability,
and the current account deficit is forecast to
slightly increase again. Moreover, after two
decades of strong household debt growth,
higher interest rates have dampened the
demand for mortgages in the past two years.
Demand is expected to rebound as monetary
policy has been eased. Policy progress to
tackle these issues has been limited.
Structural weaknesses hinder
Slovakia’s competitiveness and
productivity
Slovakia faces structural challenges that
undermine its productivity growth and
growth
potential.
The
unpredictable
regulatory
environment,
administrative
burdens and the fragmented governance
structure heavily impact Slovakia’s capacity to
effectively implement investment projects.
This hinders, in particular, innovation and
diversification of the Slovak economy, as
investments are currently concentrated in
highly industrialised manufacturing sectors,
especially the automotive industry. Structural
reforms are needed to help improve the
business environment and trigger innovation
(
2
) Nominal wages are expected to increase by 5.7% in
2025.
The tax system needs to be made
fairer and more efficient
The current tax mix does not sufficiently
utilise property and environmental
taxation, and people on lower incomes
face relatively high tax wedge
(
4
). In the
(
3
) In-Depth Review for Slovakia, published on 13 May
2025, SWD(2025) 125 final.
(
4
) Tax wedge is defined as the ratio between the amount
of taxes paid by an average single worker and the
corresponding total labour cost for the employer.
3
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current property taxation system, immovable
property is taxed based on its area rather than
its market value. This system fails to capture
rising property values and disproportionately
benefits owners of high-value properties.
Incorporating value-based aspects that
consider land value into the tax calculation
mechanism would improve revenue collection
and result in a more efficient tax mix. There is
also scope for expanding the use of
underutilised
environmental
taxation
instruments, such as waste disposal taxes and
transport taxes (see Annex 2). Furthermore,
the tax wedge is disproportionately higher for
lower-income earners than for higher-income
ones, mainly due to the limited progressivity of
the personal income tax and social
contributions. Adjusting labour taxes to reduce
the taxation of earnings from labour for lower-
income households could help lower their tax
wedge
and facilitate labour market
participation.
households benefit more from the reduced
rates for essential goods (
5
). The increased
corporate income tax for companies with a
yearly taxable income of over EUR 5 million
and the newly introduced financial transaction
tax create a significant tax burden for Slovak
companies. It is essential that consolidation
measures preserve investment and ensure a
growth-friendly budget composition, helping
Slovakia remain attractive to investors.
Government deficit remains
elevated in 2025 and 2026
Persistent spending measures keep the
government deficit high despite revenue-
boosting tax adjustments.
The general
government deficit rose slightly from 5.2% of
GDP in 2023 to 5.3% in 2024, despite a
decline in public spending from 48.0% of GDP
in 2023 to 47.1% in 2024. The decline in
public spending was primarily due to lower
spending financed by EU sources, while most
national spending measures remained
permanent, contributing to the higher deficit.
Conversely, government revenues experienced
a more significant decline, decreasing from
42.8% of GDP in 2023 to 41.8% in 2024,
primarily due to a reduced absorption of EU
funds. The government budget deficit is
projected to decrease to 4.9 % of GDP in
2025, driven by the consolidation package.
However, expenditure-increasing measures,
such as postponed delivery of military
equipment, a permanent 13th pension
payment, and higher spending on healthcare
and military salaries, resulted in only a slightly
lower public deficit. For 2026, the government
budget deficit is expected to remain high at
5.1%, as most spending measures are
permanent and no new consolidation package
has been announced.
Slovakia’s fiscal strategy
must
support growth while ensuring
sustainability
Despite the large consolidation package
announced by the government, additional
measures will be necessary to correct the
excessive budget deficit and ensure fiscal
sustainability.
So far, the consolidation
package, approved in 2024, has heavily
focused on increases in the value added tax
(VAT), the corporate income tax and the
financial transaction tax. These increases risk
putting a strain on consumption and reducing
incentives to invest. Moreover, higher taxes
can have an inflationary effect and further
worsen competitiveness. The recent VAT
reform increases the complexity of the tax
system in Slovakia, as in addition to the base
rate increase from 20% to 23%, a rate of 19%
(for groceries and electricity provision) and a
rate of 5% (for essential groceries, medicines,
books, and other selected goods and services)
are applied. The reform also has progressive
distributional effects, as lower-income
(
5
) Estimations were performed by the European
Commission, Joint Research Centre, with the
EUROMOD
tax-benefit microsimulation model.
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Box 1:
UN Sustainable Development Goals (SDGs)
Slovakia performs well on some SDG indicators related to environmental sustainability
(SDGs 6, 11, 15) but is moving away from the targets for some SDGs related to
macroeconomic stability (SDG 17).
Although there are signs that Slovakia is catching up, it is below the EU average on
SDGs related to productivity (SDGs 4, 8, 9), due partly to the relatively low participation
in and quality of its education system (see Annex 15).
The general government debt is set to
increase over the forecast period.
The
government debt-to-GDP ratio rose to 59.3%
in 2024 due to elevated spending levels and is
projected to increase further to 60.9% in 2025
and 63.0% in 2026, driven by significant
government deficits.
In 2024 and 2025, Slovakia’s net
expenditure is projected to grow below
the maximum growth.
In 2024, net
expenditure (
6
) in Slovakia grew by 5.4% (see
Annex 1). This increase is mainly driven by
strong expenditure-increasing discretionary
measures, like higher social benefits and
support with high energy prices. In 2025, net
expenditure is forecast by the Commission to
grow by 3.8%, which is right below the
maximum growth rate recommended by the
Council (
7
). The cumulative growth rate of net
expenditure in 2024 and 2025 taken together
is projected at 9.3%, which is below the
maximum recommended by the Council.
The ageing population poses challenges
for the long-term sustainability of public
finances.
Fiscal sustainability risks remain
high in the medium and long term, driven in
(
6
) Net expenditure is defined in Article 2(2) of Regulation
(EU) 2024/1263 as government expenditure net of (i)
interest expenditure, (ii) discretionary revenue
measures, (iii) expenditure on programmes of the Union
fully matched by revenue from Union funds, (iv)
national expenditure on co-financing of programmes
funded by the Union, (v) cyclical elements of
unemployment benefit expenditure, and (vi) one-off
and other temporary measures.
(
7
) Council Recommendation with a view to bringing an end
to the situation of an excessive deficit in Slovakia
(C/2025/5039) and Council Recommendation of 21
January 2025 endorsing the national medium-term
fiscal-structural plan of Slovakia (OJ C, C/2025/645,
10.2.2025, ELI:
http://data.europa.eu/eli/C/2025/645/oj).
particular by rising ageing costs and an
unfavourable initial budgetary position (see
Annex 1). The demographic developments
constitute a significant fiscal challenge as they
lead to higher spending on pensions and, to a
lesser extent, also on healthcare and long-
term care costs. According to the
Commission’s 2024 Ageing Report, the old-age
dependency ratio
the ratio of people over 65
to people of working age, i.e. 20-64 years old
is expected to more than double from 2022
to 2060 as life expectancy increases. Pension
spending is estimated to increase from 9.4%
of GDP in 2024 to 11.3% in 2070, marking a
significant long-term improvement compared
to past projections (notably via to the
reintroduction of the link between life
expectancy and the retirement age). However,
pension spending is still expected to increase
over the short-to-medium term due to effect
of demographic trends and other expenditure-
increasing pension measures adopted in 2022.
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Box 2:
Barriers to private and public investment
Slovakia faces significant barriers to unlocking both public and private investments, hindering its
economic growth potential and overall competitiveness. Investments are concentrated in highly
industrialised manufacturing sectors. Key country-specific barriers include:
Fragmented governance and complex regulatory environment.
The complexity of
administrative processes and the rapid pace of legislative changes create high
uncertainty for investments and doing business in Slovakia. The fragmented governance
structure, in particular at regional and local levels, and regional disparities further limit
effective planning and implementation of viable and strategic investments throughout
the country. This also slows down the absorption of EU funds.
Limited access to finance for innovative projects.
The underdeveloped capital
market and limited availability of private equity financing and venture capital hamper
the growth of innovative start-ups and small to medium-sized enterprises. In particular,
this hinders their ability to scale up and invest in research and development.
Shortage of skilled staff.
The shortage of skilled staff and lack of investment in
human capital, particularly in areas such as research and development, limit the
potential for businesses to innovate. Large regional disparities including in education
outcomes contribute to the challenge.
These challenges also act as a bottleneck to the implementation of EU funds. In addition,
Slovakia’s capacity to effectively implement investment projects and absorb EU funds is also
hindered by inefficient
public procurement
processes and insufficient
preparation of
investment projects.
This hinders
Slovakia’s potential for innovation and economic
diversification.
The implementation of
Slovakia’s
RRP is well under way but faces several obstacles linked to
above challenges. At present, Slovakia has fulfilled 33% of the milestones and targets in its RRP,
with assessment of the fifth payment request ongoing.
It remains important to accelerate the implementation of the cohesion policy programme. The
mid-term review offers opportunities to speed up progress and better address EU strategic
priorities related to competitiveness, defence, housing, water resilience and the energy transition.
While Slovakia has signalled interest in leveraging the Strategic Technologies for Europe
Platform under cohesion policy, Slovakia can further support the development or manufacturing
of critical technologies in the areas of digital and deep tech, clean and resource efficient
technologies, and biotechnologies.
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INNOVATION, BUSINESS ENVIRONMENT AND
PRODUCTIVITY
Innovation and digitalisation are
key to diversifying Slovakia’s
economy
Slovakia lags behind in terms of
innovation
and
digitalisation
performance.
This is demonstrated by the
slow adoption of new technologies, low private
and public spending in research and
development (R&D), and weak digital
infrastructure and innovation output (such as
patents). Together with a fragmented
governance structure and a substandard
business environment, this hampers Slovakia’s
competitiveness potential on the global stage.
Innovation and digitalisation will need to be
key drivers for growth in Slovakia, helping to
diversify the economy and maintain a
competitive edge (see Section 1). Furthermore,
promoting clean tech initiatives and boosting
innovation related to the green transition could
offer an opportunity to diversify Slovakia's
economy by tapping into emerging industries.
Private and public R&D expenditure is
significantly below the EU average.
Private sector R&D expenditure was at a mere
0.58% of GDP in 2023, significantly below the
EU average of 1.47%. Public sector spending
was only 0.37% of GDP in 2023, compared to
the EU average of 0.72% (
8
). The government
committed to maintain a trajectory of annual
increases in public R&D spending, also to
create an opportunity to stimulate further
private R&D investment, which remains
critically low. The lack of R&D expenditure also
affects the healthcare sector, where Slovakia
(
8
) Eurostat:
https://ec.europa.eu/eurostat/databrowser/view/gba_nab
sfin07__custom_15738222/default/table?lang=en.
reports among the lowest levels of public
spending in the EU (see Annexes 3 and 14).
The adoption of digital technologies,
especially by small to medium-sized
enterprises (SMEs), remains largely below
the EU average.
Slovakia also underperforms
compared to the EU when it comes to the
adoption of advanced digital technologies,
such as artificial intelligence (AI), cloud and
data analytics. Only 62.9% of SMEs have basic
digital intensity, against an EU average of
72.9% (see Annex 3). Some steps have been
taken to improve the situation through
Recovery and Resilience Facility investments,
e.g. in projects aiming to develop and apply
top digital technologies and create digital
innovation hubs. However, there is much scope
for further efforts.
Graph 2.1:
Slovakia’s performance against two
2030 digital targets
SMEs with at least basic level
of digital intensity
62.90%
27.10%
Enterprises using AI technologies
10.78%
64.22%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Slovakia in 2024
Still to be achieved by 2030
Source:
Eurostat
Slovakia’s digital infrastructure is
sub-par and needs improvement.
Digital
infrastructure is lagging, with very high-
capacity networks covering just 69.12% of
households in 2023 compared to the EU
average of 78.81% (see Annex 4). Fixed and
mobile network coverage, especially in rural
areas, is far below EU targets. The Ministry of
Investments, Regional Development and
Informatisation observed an investment gap
of
over
EUR 500 million
for
gigabit
connectivity (
9
), which undermines the ability
(
9
) As estimated based on the
2024 Geographical Survey.
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to boost digital solutions. This may also
hamper the uptake of advanced digital
technologies. Efforts to facilitate infrastructure
deployment are ongoing, such as allowing
fibre optic networks on existing poles,
introducing a new construction law, and
adopting the Gigabit Infrastructure Act, but the
effects of these are yet to be seen. Prompt
and effective implementation of these new
measures would be beneficial.
Strengthened support for SMEs
could boost innovation and R&D
Slovakia’s R&D intensity is at 1%,
compared to the EU average of 2.2%.
The
continued implementation of ongoing reforms
and investments is needed to meet the target
of 2% R&D intensity set out in the 2023
National Strategy for Research, Development
and Innovation.
SMEs, highly prevalent in Slovakia's
private sector, face resource constraints
to invest in R&D.
While Slovakia introduced a
tax incentive system intended to stimulate
R&D spending among businesses, this system
is more beneficial for larger enterprises.
Government support for R&D could be made
more accessible to SMEs by, for instance,
offering cash refunds in addition to existing
tax incentives, or providing more targeted
competitive grant schemes. Additional support
can build further on recent efforts under the
recovery and resilience plan (RRP), for example
in the form of financial instruments supporting
innovation through the Slovak Investment
Holding. By facilitating innovation in areas
such as the green transition and cleantech,
SMEs could play a significant role in driving
sustainable development and contributing to a
diversified economic landscape.
The research and innovation environment
remains fragmented.
One measure to
address this would be to promote
collaboration between research institutions
and the private sector. To build critical mass
and drive impactful advancements it is
important to encourage mergers and pool
research institutions, while continuing to
support quality-related funding by verifying
excellent research. Replicating best practices
and insights developed under the RRP, for
instance conducting international evaluations
when awarding grants to the research
community or on knowledge transfer, would
also foster the quality of research outputs and
increase their likelihood of successful
commercialisation. Moreover, anchoring such
improvements in a binding institutional
framework would help bring about a
streamlined ecosystem with clearly assigned
responsibilities, increased predictability, and
better incentives for the scientific community
to engage in R&D (see Annex 3).
Capital market is not sufficiently
developed to support innovation
As a result of an underdeveloped capital
market, Slovak firms face insufficient
access to finance.
The overall level of non-
financial corporation funding represents
98.7% of GDP, compared to the EU average of
230.3% (see Annex 5). Furthermore, Slovak
firms rely disproportionately more on funding
from banks as opposed to capital markets. For
start-ups, market financing is especially
important to spur innovation. The access of
firms to household savings is limited due to
the low retail participation in capital markets,
with a relatively large share of household
assets stored in cash, deposits and housing,
contributing to underused market financing. In
particular, households hold 52.1% of their
assets in cash and deposits, compared to the
EU average of 32.2%. There is scope for
increasing the level of direct and indirect retail
investment by improving financial literacy.
Furthermore, venture capital and private
equity are limited, particularly affecting SMEs
and innovative start-ups. The value of annual
venture capital investment stood at 0.01% of
GDP in 2023, compared to the EU average of
0.05% (see Annex 5). Government initiatives
that support start-up funding or attract
domestic institutional investors in private
equity and venture capital could support
capital market development and thus an
improvement in access to finance.
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Slovakia’s complex regulatory
environment and fragmented local
governance hinder the business
environment
Slovakia’s business environment is one of
the least favourable in the EU, hindering
the country’s competitiveness.
As a result
of long and complex administrative
procedures, an unpredictable regulatory
environment, fast-changing legislation and
insufficient investment planning, among other
things, Slovakia has the worst conditions for
doing business in the EU (see Annex 4).
Simplification of administrative and
regulatory procedures and increased
transparency,
predictability
and
evidence-based policymaking are key to
improving the business environment.
Slovak legislation tends to change rapidly and
fast-track legislative procedures have become
increasingly common when adopting new laws
or amendments. For instance, in 2017-2021,
25 business-related laws were changed, on
average, 62 times per calendar year (see
Annex 4). At the same time, the number of
legislative proposals between October 2023
and February 2025 bypassing standard impact
assessments and stakeholder consultations
reached 37% of adopted laws (see Annex 4).
Under Slovakia’s better regulation framework,
there is a formal obligation to carry out impact
assessments in various policy areas, among
other things. However, the framework lacks a
clear and binding nature, has limited quality
and is not implemented effectively. The
regulatory governance procedures are not
obligatory for the parliament, which affects
the quality of legislation, as in 2023, 60% of
legislative initiatives were tabled by members
of the parliament (see Annex 6). Despite the
introduction of several measures, such as ex-
post evaluations, prevention of gold-plating or
anti-bureaucratic packages
also contained in
the RRP
to simplify the regulatory
environment and increase its predictability, the
overall improvements have been marginal,
with business and labour regulations in
Slovakia significantly deteriorating in 2024
compared to the previous year (see Annex 4).
Fragmented public administration, limited
transparency in public procurement
processes and a lack of sound investment
planning pose serious challenges to
Slovakia’s
competitiveness.
Local
administration is very fragmented. There is a
large variation in the size of municipalities,
hampering
effective
governance
and
cooperation, strategic planning and the correct
implementation of fiscal policies (see
Annex 6). Moreover, in the past few years,
municipalities have received additional
responsibilities that were not matched with
adequate funding. A reform of the local
governance structure, better streamlining
powers and financing, could boost the
effectiveness of investments and the
absorption of funds. While a recent
amendment to the Public Procurement Act
aimed to simplify public procurement
procedures for municipalities and businesses,
results are yet to be confirmed (see Annex 4).
Moreover, the changes pose transparency and
competition risks, especially for below-
threshold procurement, making it easier for
favouritism to occur. Furthermore, investment
management in Slovakia is currently planned
for seven-year periods (linked to the timespan
of EU funds) and lacks a long-term and
strategic vision, giving little investment
certainty to businesses as well as regional and
local stakeholders. These challenges are
especially problematic for small municipalities,
which need additional training and capacity in
procuring, planning projects and investments,
and applying for EU funds. As the government
is currently working on a national investment
strategy until 2050, it is important that a
cross-party agreement on the strategy will be
reached, and that the strategy is adopted in
good time.
Rule of law concerns have
increased, and civil service
reforms threaten stability and
transparency
Recent changes to the civil service may
negatively affect the quality of public
administration.
The Civil Service Council, an
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independent
body
overseeing
the
implementation of the Civil Service Act and
handling complaints from civil servants, was
dissolved in 2024. Amendments to the Civil
Service Act in 2021 concerning dismissal
procedures for civil servants have raised
concerns regarding the stability and
transparency of the system. At the same time,
as a result of insufficient training and skills
development of civil servants, the quality and
productivity of the service remain rather low,
hampering the regulatory environment (see
Annex 6).
There are concerns over the judicial
system and, following a series of recent
reforms, the institutional and analytical
capacity and ability of the police force
and prosecutors to investigate and
prosecute corruption was seriously
disrupted in the course of 2024.
Concerns
over the judicial system include missing
safeguards regarding the dismissal procedure
of members of the Judicial Council. Moreover,
several consecutive amendments to the
criminal code, reducing the sentences and
limitation periods for corruption criminal
offences, and the dismantling of the Special
Prosecution Office and the police force
specialised in tackling corruption (National
Crime Agency) raised serious concerns about
the robustness of Slovakia’s
legislative
framework. Subsequent reorganisations of the
prosecution and police services led to the
decentralisation
of
investigations
and
impacted the adequate follow-up of ongoing
cases, as well as the degree of specialisation
and capacity that had been built over previous
years also as part of RRP investments (e.g.
ensuring the recruitment and training of police
officers in the area of anti-corruption
Annex
6). These developments can further undermine
Slovakia’s competitiveness as they threaten to
hamper the business and regulatory
environment. As the negative impact on legal
certainty and investor confidence may be
long-lasting, it will be important to restore
effective anti-corruption measures, including
deterrence, investigation, and prosecution of
high-level corruption.
Despite recent substantial changes made,
the
Slovak
anti-money
laundering
framework and the framework for
combatting the financing of terrorism
call for additional improvements.
Slovakia
has taken important steps to address
weaknesses in its framework for Anti-Money
Laundering and Combatting the Financing of
Terrorism (AML/CFT), notably by recently
amending their main AML Act and also by
regularly reporting to the Commission on the
actions
taken
following
a
2022
implementation report by the Council of
Europe. However, concerns remain regarding
the supervision of Non-profit organizations
(NPOs) and the definition and monitoring of
Virtual Assets Providers (VASPs) activities as
recently outlined by Moneyval, as well as
beneficial ownership information for trusts
and similar legal arrangement, and fit and
proper’s requirements, in particular.
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DECARBONISATION, ENERGY AFFORDABILITY AND
SUSTAINABILITY
Supporting the roll-out of
technologies for the green
transition could boost economic
resilience
Slovakia’s large and labour-intensive
industrial sector faces several challenges
to modernise, meet climate objectives,
and remain competitive.
The industrial
sector accounts for approximately 30% of
GDP, significantly above the EU average.
Slovakia is a global leader in per-capita car
production. Its automotive industry is primarily
combustion-based, but there are emerging
signs of a shift towards electric vehicle
production. At the same time, Slovakia also
has the EU’s highest share of emissions from
manufacturing (35%
see Annex 7). In recent
years, the industrial sector has faced
increasing pressure to transition away from
traditional production to new business
opportunities, including more automated
processes and the production of green
technologies. Despite this, the manufacturing
capacity across net-zero technologies remains
limited, accounting for less than 1% of the
EU’s capacity for solar photovoltaic
modules
and around 2% for battery and storage
technologies (see Annex 7). Manufacturing is
still heavily reliant on imports of critical raw
materials, given the country’s rather low
endowment of subsoil assets (
10
), making
Slovakia particularly vulnerable to supply chain
disruptions. By gradually shifting towards a
more diversified and innovation-driven
economy, Slovakia could boost long-term
economic sustainability and its resilience to
external shocks.
(
10
) https://www.minzp.sk/files/iep/making-slovak-republic-
more-resource-efficient-economy_final.pdf.
Slovakia has recently taken measures to
support the roll-out of projects in
strategic
sectors,
including
those
promoting the growth of the green
economy.
In March 2024, Slovakia adopted
its framework to support strategic sectors (
11
).
As of March 2025, businesses in targeted
areas are able to benefit from increased
financial incentives, as the government
increased the intensity of investment support
for the digital, green, biotechnology and
pharmaceutical sectors by 10% (
12
). Although
an important step, the support framework
could be complemented by a transparent
mechanism to regularly review priority actions,
targeting
particularly
high-value
manufacturing and investing in emerging
industries. To boost the effectiveness of
investments, eligible actions could include
infrastructure
(digital
and
electricity
connection for businesses) and innovation
investments, but also reskilling and advisory
services to further integrate producers into the
EU-wide supply chains. There is also further
scope for introducing an overarching net-zero
policy framework to support cleantech
manufacturing.
To address persistently high non-
household energy costs hindering the
business environment, there is scope to
scale up renewable energy infrastructure
investments and reform taxes and tariff
structures.
Wholesale electricity prices were
the ninth highest in the EU in 2024, averaging
93 EUR/MWh (see Annex 8). Regional
wholesale prices also remained above the
(
11
) Act No. 142/2024 Coll. The act enables the designation
of certain investments as strategic. Such investments
are to benefit from faster permitting procedures.
(
12
) Act No. 34/2025 Coll. The act increases the intensity of
investment support by 10 percentage points.
11
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European Power Benchmark in 2024 (
13
). Also,
non-household natural gas prices were the
fourth highest in the EU in the first half of
2024 (
14
). The scope for reforming electricity
taxation is underscored by the significant
share of taxes and levies in the electricity price
for energy-intensive industries, amounting to
11%
(see
Annex
7).
Furthermore,
electrification is disincentivised by Slovakia
having one of the EU’s widest gaps between
electricity and gas prices, with electricity
costing 2.8 times more for energy-intensive
industries, and 3.1 times for households after
taxes (see Annex 7). The effective carbon rate
is also lower than the EU average (see
Annex 2 and 8), driven by lower fuel excise
duties. The existing exemption from excise
duty on coal and natural gas also does not
provide the right incentive for the use of
cleaner sources and perpetuate the use of
fossil fuels. Moreover, with regulated
electricity and gas prices for all households,
consumer engagement and energy efficiency
investment incentives remain subdued.
(e.g. acceleration zones). More ambition is
needed also in incentivising grid investments
through regulatory policies of grid operators.
Furthermore, Slovakia needs to take action to
boost the support of local communities for
renewables and ensure their right to
participate
in
permitting
processes.
Furthermore, fossil fuel consumption in
Slovakia would benefit from greater
diversification, as Russian crude oil, for
example, still makes up more than 80% of all
crude oil consumed in 2024 and around 70%
of natural gas was of Russian origin in the
same year (see Annex 8).
Decarbonising the heating sector in
Slovakia is crucial for meeting the
country’s climate goals and reducing
reliance on fossil fuels, particularly
natural gas.
Despite the significantly
decarbonised electricity mix due to nuclear
sources, the heating system is still heavily
reliant on fossil fuel, in particular imported
natural gas (see Annex 8). The potential of
renewable energy sources (e.g. geothermal),
clean technologies (e.g. heat pumps) and
energy efficiency savings in Slovakia’s large
district heating networks is underutilised, even
though the Modernisation Fund already
provides significant financial support to this
sector. At the same time, for components used
in heat pumps and geothermal energy
applications, Slovakia stands out as a Member
State with competitive production facilities (
16
).
Government policies, including subsidies and
incentives, are supporting households and
businesses in adopting greener heating
technologies. However, challenges such as
high upfront costs and the need to modernise
heat distribution remain key hurdles to
achieving the full decarbonisation of the
heating sector. Slovakia could consider further
measures
to
support
high-efficiency
cogeneration and the modernisation of heat
distribution and to improve the integration of
renewables into the heating system.
The potential of renewable energy
sources is underused in Slovakia
In 2024, renewables contributed to 24%
of Slovakia’s electricity mix, well below
the EU average of 47%.
At the same time,
Slovakia’s
national renewables target for 2030
as set out in its draft updated national
energy and climate plan
is 23%, far below
the 35% set by the Energy Union governance
formula (
15
). While Slovakia has recently
adopted several reforms to support the
roll-out of investments in renewables and
accelerate permitting procedures, some of
these measures are yet to be implemented
(
13
) Study on energy prices and costs
evaluating impacts
on households and industry’s costs –
2024 edition.
Page 40 (Figure 7).
(
14
) Eurostat (online data codes:nrg_pc_2023).
(
15
) Commission Recommendation of 18.12.2023 on the
draft updated integrated national energy and climate
plan of Slovakia covering the period 2021-2030 and on
the consistency of Slovakia’s measures with the Union’s
climate-neutrality objective.
(
16
) European Commission: Directorate-General for Energy
and ECORYS, The net-zero manufacturing industry
landscape across Member States
Final report,
Publications Office of the European Union,
2025, https://data.europa.eu/doi/10.2833/2249632.
12
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Clean transport infrastructure
development lags behind
Slovakia’s large automotive industry
faces challenges in promoting zero-
emission vehicles domestically.
Despite
being highly export-driven, the Slovak
automotive sector struggles with low
consumer interest in zero-emission vehicles
within the country. Zero-emission vehicles
make up only 2.9% of new car registrations
(see Graph 3.1 and Annex 7), placing Slovakia
among the last EU countries in terms of
deployment of zero-emission road transport.
Therefore, the low demand for these vehicles
may hinder the future competitiveness of
Slovakia’s automotive sector
on its domestic
market as the sector increasingly shifts
towards manufacturing only zero-emission
vehicles. While the uptake is slowly improving
thanks to recovery and resilience plan (RRP)
reforms, such as the adoption of the
Electromobility Action Plan, structural issues
such as low domestic interest remain,
particularly due to the slow implementation of
incentives from the action plan and low
affordability of zero-emission vehicles for
individuals and companies. Similarly, the
deployment of recharging and hydrogen-
refuelling infrastructure is also lagging, as the
rate of deployment of both solutions is equally
one of the lowest in the EU. Although an
investment in recharging and hydrogen-
refuelling infrastructure is planned under the
RRP, this will be insufficient to fully inspire
significant further investments by the private
sector in such infrastructure and to meet
requirements set by EU legislation. Slovakia
could consider further financial support for the
uptake of zero-emission infrastructure and
incentives for private companies to invest in
the expansion of public infrastructure.
Graph 3.1:
Zero-emission passenger cars in
2023 (% of new registered vehicles)
40
35
30
25
%
20
15
10
5
2,9
0
SE DK FI NK LU MT AT BE IE DE PT FR EU RO SI LV LT EE ES CY HU EL BG IT PL CZ SK HR
Source:
Eurostat
Railway transport infrastructure lacks
efficient governance and is slow in
modernisation.
This is despite some progress
in recent years in increasing the amounts
allocated for financing the operation of
infrastructure and for investment projects.
State-owned
railway
infrastructure
is
modernising at a slow pace and remains
unattractive both for passenger and
commercial use. Slovakia currently lacks a
centralised approach to strategically ensure
financing of renovations and upgrades of
national transport infrastructure (see Annex 7).
A centralised national fund could help
accelerate medium- to long-term planning and
financing of key transport investments. This
could be accompanied by a reform of national
railway infrastructure management, to
accelerate and streamline investments in
modernising physical and digital rail
infrastructure.
Nature-based solutions are key to
improving
Slovakia’s water
resilience
The quality of Slovak surface water
bodies is deteriorating as a result of
inadequate water management measures.
The assessment of Slovakia’s third river basin
management plans showed that the number
of surface water bodies classified as having
good (or better) ecological status has
decreased significantly from 56% in 2015 to
41% in 2021 (see Annex 9). This pressure has
been caused by an increased number of
extreme weather events, excessive amounts of
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pollutants and frequent changes to the shape
and flow of water bodies. The increasing
number of areas that are affected by drought
as well as floods (e.g. in September 2024) also
demonstrates the urgency for increasing water
resilience. Yet, in 2023, Slovakia’s draft
updated national energy and climate plan did
not take account of relevant and acute climate
vulnerabilities and risks, which risks
jeopardising the achievement of energy and
climate mitigation objectives. Improving water
bodies’ status and increasing resilience to
floods and droughts require improving
sustainable
water
management
and
prioritising nature-based solutions and river
restorations over constructing new water
dams and other ‘grey infrastructure’. Even
though the Slovak RRP includes some
measures on revitalisation of watercourses,
these are not sufficient to address the
challenges.
14
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SKILLS, QUALITY JOBS AND SOCIAL FAIRNESS
funds. These measures fail to sufficiently
address the needs of the under-represented
and most vulnerable groups in the country,
such as Roma, young people, women and long-
term unemployed people (see Annex 10).
Staff and skills shortages put
brakes on growth
Addressing staff and skills shortages
through targeted upskilling and reskilling
would boost productivity and help deliver
on the green and digital transitions.
Shortages of workers in Slovakia are
particularly severe in construction, industry
and services, with education and healthcare
services being particularly understaffed. At the
same time, there is a significant shortage of
workers with specific skills, especially green
and digital. Slovakia lacks ICT specialists, and
the share of people with at least basic digital
skills remains low: it decreased to 51.3% in
2023 (see Annex 13), which is still below the
EU average of 55.6%. Efforts are particularly
needed to increase the currently low share of
students enrolled in science, technology,
engineering
and
mathematics
(STEM)
programmes as this share was at 21.8% in
2022 (against an EU average of 27.1%).
Targeted reskilling and upskilling measures are
thus crucial for adapting to the changing job
market demands and promoting the
diversification of the Slovak economy.
Targeted and effective active labour
market policies (ALMPs), combined with
more flexible working arrangements
could encourage more people to work or
look for a job and reduce shortages of
workers.
While the overall unemployment
rate has been declining in recent years, long-
term and youth unemployment remain high. At
the same time, the unemployment rate among
people from disadvantaged groups, such as
the marginalised Roma communities, rose to
53.4%, against an EU average of 19%, in
2022 (see Annex 10). Slovakia has very low
investments in ALMPs, with a substantial part
of investments financed from cohesion policy
Insufficient childcare makes it
more difficult for people to work
or look for a job
The lack of childcare for children under
the age of 3 and the limited availability
of flexible work arrangements make it
more difficult for women and parents to
work or look for a job.
In 2024, the
enrolment rate of children under 3 in early
childhood education and care increased to
5.1% but remains far below the EU average of
39.2% (
17
). The situation is even more serious
for children from marginalised Roma
communities. The limited participation of
children under 3 in formal childcare is
attributed to the generous parental leave
periods, which discourage women from
reintegrate into the job market, and the
insufficient availability of affordable high-
quality childcare facilities (see Annex 10). As a
result, the rate of women who are working or
looking for a job is relatively low in Slovakia.
More efforts to increase the availability of
childcare facilities and promote the enrolment
of children under 3 would not only contribute
to increasing the rate of women who are
working or looking for a job, but also to
facilitating long-term skills development. At
the same time, introducing more flexible work
arrangements would incentivise parents to
work more. For instance, supporting part-time
employment and revising the tax system, in
particular by reducing the cost of part-time
(
17
) Eurostat.
15
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workers for employers, could help get parents
of young children into work. To further
increase the supply of workers, implementing
measures in the RRP to attract, for example,
doctors and other healthcare workers will be
important. This could be done, for instance, by
simplifying procedures for the recognition of
degrees and work experience and by
facilitating integration. However, further
efforts are needed to train and attract workers
in sectors where it is most difficult to find
qualified applicants.
significant decline in literacy and numeracy
performance between 2011/2012 and
2022/2023, with a growing share of low-
performing adults and a shrinking share of
high performers.
Social inclusion could be
strengthened, and the availability
and accessibility of housing
increased
The risks of poverty and social exclusion
have been increasing already since 2020
(see Annex 11).
More action is needed to
reach the national 2030 poverty reduction
target. The rate of children who are at risk of
poverty or social exclusion dropped below the
EU average but remains relatively high (22.6%
vs EU 24.2% in 2024
see Annex 11).
Challenges surrounding poverty are marked by
regional disparities, with the eastern part of
the country experiencing the most significant
challenges. With the support from the RRP and
the European Social Fund Plus, several policy
measures are being implemented to reduce
the segregation of Roma in education, for
example by introducing a legal definition of
segregation in education. Nonetheless,
challenges remain, especially at local level.
The supply of social housing is low.
Only
1.6% of the housing stock is dedicated to
social rental housing. As the most vulnerable
people struggle to access housing, increasing
public support for the construction of social
housing would be important to address this
(see Annex 11). The expansion of the social
housing stock in Slovakia could benefit more
from the experience of non-governmental
organisation and social enterprises to make
housing projects more inclusive, for example
by easing the eligibility requirements for the
most vulnerable people and by complementing
the housing with the necessary supporting
services (psychological, social, financial care).
Slovakia could scale up and mainstream
OECD Publishing,
Paris,
https://doi.org/10.1787/b263dc5d-en.
Challenges in the education
system weaken basic skills
performance
A shortage of teachers, insufficient in-
service training and support to teachers,
long-term underfunding of the education
system, and the low attractiveness of the
teaching profession worsen pupils’
performance in basic skills.
Relatively low
renumeration, insufficient access to high-
quality continuing professional development
and a high administrative burden make the
teaching profession unattractive, with negative
consequences for the quality of education.
Many
children
from
disadvantaged
backgrounds, including from the marginalised
Roma communities, face significant socio-
economic
challenges
hindering
their
educational outcomes (see Annex 12). In the
2022 OECD PISA survey, 33.2% of Slovak
students underperformed in mathematics,
35.4% in reading and 30.6% in science (EU
averages: 29.5%, 26.2% and 24.2%,
respectively),
among
the
highest
underachievement
rates
in
the
EU.
Nevertheless, the ongoing curricular reform,
supported by the RRP, should ensure improving
basic skills, particularly for maths and reading.
The success of the curricular reform will also
depend on how teachers are prepared and
supported in implementing it. Low basic skills
are also a concern among adults, as results of
the
Survey of Adult Skills
(
18
) show a
(
18
) OECD (2024),
Do adults have the skills they need to
thrive in a changing world? Survey of Adult Skills 2023,
16
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existing pilot projects funded by the European
Social Fund Plus that combine the easing of
eligibility requirements and the provision of
social services to deprived tenants. At the
same time, following a period of slower
mortgage growth, the growth rate of house
prices has gradually picked up, hampering
housing affordability. The decline in residential
construction limits the supply of housing,
putting upward pressure on house prices.
functions.
Simultaneously,
improving
preventive care services is important to lower
mortality from preventable causes and to
reduce healthcare costs.
The quality and sustainability of
the healthcare system can be
improved
The lack of healthcare professionals and
the ageing workforce pose serious
challenges to the sustainability of
Slovakia’s healthcare system.
Slovakia has
a lower density of healthcare workers than the
EU average, with 3.7 doctors and 5.7 nurses
per 1 000 people in 2022, compared to the EU
averages of 4.2 and 7.6, respectively (see
Annex 14). Additionally, 23.7% of nurses are
nearing retirement, which will exacerbate the
shortage. The efforts to increase enrolment in
healthcare studies, improve working conditions
and modernise infrastructure appear to be
very limited compared to the system’s needs.
Persisting inefficiencies in the hospital
sector and a lack of disease prevention
pose an additional risk to the
sustainability of the healthcare system.
By the end of 2023, Slovakia’s 13 largest
state hospitals were facing significant debt,
with an average delay in bill payments of 400
days. Financial constraints and late payments
hinder efforts to boost efficiency gains in
healthcare. Moreover, in 2022, only 2.0% of
Slovakia’s total health expenditure was
allocated to prevention, far below the EU
average of 5.5%. Slovakia also reports some
of the highest rates of treatable mortality in
the EU, particularly from cardiovascular
diseases and cancer. There is significant
potential to improve the cost-effectiveness of
the healthcare system by optimising resource
allocation, further digitalising the health
system, and further centralising administrative
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KEY FINDINGS
To boost competitiveness, sustainability and
social fairness, Slovakia would benefit from:
accelerating the implementation
of the recovery and resilience
plan,
including the REPowerEU
chapter;
swiftly
implementing
cohesion policy,
taking advantage of
the opportunities under the mid-term
review and making optimal use of EU
instruments, including
InvestEU
and
STEP,
to improve competitiveness;
making the tax system fairer and
more efficient
by: (i) integrating
value-based aspects, such as land
value, into the calculation of property
taxation;
(ii)
strengthening
environmental taxes; and (iii) reducing
the high taxes on wages, in particular
for people on lower incomes;
supporting the housing supply and
expanding the rental market
by
streamlining the process of obtaining
building
permits
and
reducing
administrative burdens, while taking
into consideration vulnerable groups in
state-supported housing programmes;
ensuring that government policies
to reduce the deficit and debt
supports
growth
by:
(i) complementing the recent tax
increases with measures that preserve
investment;
(ii)
increasing
the
efficiency of public spending, in
particular in healthcare; (iii) avoiding
excessive tax burdens on businesses;
and (iv) maintaining a growth-friendly
budget composition;
boosting
innovation
and
digitalisation
by: (i) increasing public
and
private
R&D
investment;
(ii) encouraging
business-science
linkages; (iii) improving financial
support and exploiting the potential of
R&D tax incentives for SMEs;
(iv) strengthening digital infrastructure,
including by rolling out very high-
capacity
digital
networks;
and
(v) supporting SME adoption of
advanced digital technologies;
improving
the
business
environment
by: (i) simplifying
administrative
and
regulatory
procedures; (ii) ensuring legislative
stability, transparency and use of
evidence through a more effective
better
regulation
framework;
(iii) boosting
transparency
and
competition in public procurement; and
(iv) strengthening investment planning;
strengthening governance and
anti-corruption
measures
by
reforming the local governance
structure, ensuring civil service
stability,
and
restoring
the
independence and capacity of law
enforcement to fight corruption;
improving access to finance
by
supporting the development of capital
markets, increasing retail investment
and expanding venture capital and
private equity to support SMEs and
start-ups;
making further progress to
decarbonise,
innovate
and
diversify the economy
by reforming
electricity and carbon taxation to
incentivise
electrification,
strengthening the legislative and
investment framework for production
of clean and renewable technologies,
and supporting decarbonisation of the
heating
and
transport
sectors,
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including for zero-emission vehicle
infrastructure;
increasing climate and water
resilience
by improving sustainable
water management and prioritising
nature-based solutions and river
restorations;
addressing labour and skills
shortages
by: (i) expanding green and
digital skills training; (ii) strengthening
active labour market policies for long-
term unemployed people, Roma,
women and parents with young
children; (iii) introducing more flexible
work arrangements; (iv) promoting
training and support for recruiting and
retaining healthcare professionals and
teachers; (v) tackling the low uptake of
early childhood education and care for
children under the age of 3;
(vi) increasing enrolment in science,
technology,
engineering,
and
mathematics
(STEM)
education;
(vii) improving teacher support and
training to strengthen basic skills for
pupils; and (viii) expanding preventive
healthcare measures.
19
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ANNEXES
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LIST OF ANNEXES
Fiscal
A1.
A2.
Fiscal surveillance and debt sustainability
Taxation
26
26
33
Productivity
A3.
A4.
A5.
A6.
Innovation to business
Making business easier
Capital markets, financial stability and access to finance
Effective institutional framework
36
36
41
47
55
Sustainability
A7.
A8.
A9.
Clean industry and climate mitigation
Affordable energy transition
Climate adaptation, preparedness and environment
61
61
68
75
Fairness
A10. Labour market
A9.
Social policies
82
82
87
91
95
96
A12. Education and skills
A13. Social Scoreboard
A14. Health and health systems
Horizontal
A15. Sustainable development goals
A16. CSR progress and EU funds implementation
A17. Competitive regions
99
99
101
109
LIST OF TABLES
A1.1.
A1.2.
A1.3.
A1.4.
A1.5.
A1.6.
A1.7.
A1.8.
A1.9.
General government balance and debt
Net expenditure growth
Net expenditure (outturn and forecast), annual and cumulated deviations vis-à-vis the recommendation
Defence expenditure
Macroeconomic developments and forecasts
General government budgetary position
Debt developments
RRF
Grants
Projected change in age-related expenditure in 2024-2040 and 2024-2070
27
27
28
28
29
29
30
30
31
23
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A1.10.
A2.1.
A3.1.
A4.1.
A5.1.
A6.1.
A6.2.
A7.1.
A8.1.
A9.1.
A13.1.
A14.1.
A16.1.
A16.2.
A17.1.
Fiscal Governance Database Indicators
Taxation indicators
Key innovation indicators
Making Business Easier: indicators.
Financial indicators
Slovakia. Selected indicators on administrative burden reduction and simplification
Digital Decade targets monitored through the Digital Economy and Society Index
Key clean industry and climate mitigation indicators: Slovakia
Key Energy Indicators
Key indicators tracking progress on climate adaptation, resilience and environment
Social Scoreboard for Slovakia
Key health indicators
Selected EU funds with adopted allocations - summary data (million EUR)
Summary table on 2019-2024 CSRs
Selection of indicators at regional level in Slovakia
32
33
40
46
53
56
58
67
74
81
95
97
104
105
110
LIST OF GRAPHS
A2.1.
A2.2.
A3.1.
A3.2.
A4.1.
A5.1.
A5.2.
A5.3.
A5.4.
A5.5.
A6.1.
A6.2.
A7.1.
A7.2.
A7.3.
A8.1.
A8.2.
A8.3.
A9.1.
A9.2.
A10.1.
A10.2.
A10.3.
A9.1.
A12.1.
A12.2.
A14.1.
A14.2.
A15.1.
A16.1.
A16.2.
A17.1.
A17.2.
A17.3.
Tax revenue shares in 2024
Tax wedge for single and second earners, % of total labour costs, 2024
Slovakia’s share of scientific publications among the top 10%
most cited as a percentage of its total scientific publications
Business expenditure on R&D as a percentage of GDP in the Visegrad countries
Making Business Easier: selected indicators.
Net savings-investment balance
International investment position
Capital markets and financial intermediaries in Slovakia
Composition of NFC funding as % of GDP
Composition of household financial assets per capita and as % of GDP
Trust in justice, regional / local authorities and in government
Indicators of Regulatory Policy and Governance (iREG)
GHG emission intensity of manu-facturing and energy-intensive sectors, 2022
Greenhouse gas emissions in the effort sharing sectors, 2005 and 2023
Municipal waste treatment
Retail energy price components for household and non-household consumers, 2024
Monthly average day-ahead wholesale electricity prices and European benchmark natural gas prices (Dutch TTF)
Slovakia's installed renewable capacity (left) and electricity generation mix (right)
Direct dependency(1) on ecosystem services(2) of the gross value added generated by economic sector in 2022
Investment needs and gaps in EUR million, in 2022 constant prices
Key rates: activity, unemployment, long-term unemployment, youth unemployment, NEETs
Youth: in education and training, employment rate, unemployment rate, unemployment-to-population ratio, NEET
Employment by type (permanent, temporary, self-employed), year-on-year changes
At-risk-of-poverty or social exclusion rate and its components (AROP, AROPE, SMSD, LWI)
Early school leavers, not in education, employment or training (NEET) and tertiary attainment
Change in the number of students enrolled in tertiary education and in STEM fields (ISCED 5-8) in Slovakia, 2017-2023
Life expectancy at birth, years
Treatable mortality
Progress towards the SDGs in Slovakia
Distribution of RRF funding in Slovakia by policy field
Distribution of cohesion policy funding across policy objectives in Slovakia
GDP per head in purchasing power standard (PPS)
Labour productivity per hour
Access to healthcare and primary education in rural areas, 2023
34
35
37
37
43
47
47
48
51
52
55
55
64
65
66
68
69
71
78
78
83
85
86
89
92
93
96
96
99
102
102
109
109
111
LIST OF MAPS
A17.1.
Regional Competitiveness Index 2.0, 2022 edition
110
24
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25
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FISCAL
ANNEX 1: FISCAL SURVEILLANCE AND DEBT SUSTAINABILITY
This Annex contains a series of tables relevant for the assessment of the fiscal situation in Slovakia,
including how Slovakia is responding to Council recommendations issued under the reformed Economic
Governance Framework.
The reformed framework, which entered into force on 30 April 2024(
19
), aims to strengthen debt
sustainability and promote sustainable and inclusive growth through growth-enhancing reforms and
priority investments. The medium-term fiscal-structural plans (hereinafter, MTPs or plans) constitute the
cornerstone of the framework, setting the budgetary commitment of Member States over the medium
term. The latter is defined in terms of net expenditure growth, which is the single operational indicator for
fiscal surveillance.
Slovakia submitted its plan on 15 October 2024. The plan covers the period until 2028, presenting a fiscal
adjustment over four years. On 21 January 2025, the Council adopted the Recommendation endorsing
Slovakia’s
(
20
). On 21 January 2025 the Council also adopted a Recommendation under Article 126(7)
TFEU to correct the excessive deficit in Slovakia(
21
). The corrective net expenditure path recommended by
the Council under the excessive deficit procedure is consistent with the path set out in the plan.
The assessment of the implementation of the Council Recommendation to correct the excessive deficit
and
endorsing the Slovakia’s plan
is carried out on the basis of outturn data from Eurostat and the
Commission Spring 2025 Forecast and taking into account the Annual Progress Report (APR), that Slovakia
submitted on 30 April 2025. Furthermore, given Slovakia’s request to activate the National
Escape Clause
(
22
) in accordance with the Commission Communication of 19 March 2025(
23
), the assessment also
considers, as appropriate, the projected increase in defence expenditure based on the Commission Spring
2025 Forecast.
The Annex is organised as follows. First, developments in
government deficit and debt
are presented
based on the figures reported in Table A1.1. Then, the assessment of the
implementation of the
Council Recommendation to correct the excessive deficit and of the Council Recommendation
endorsing the plan
follows, based on the relevant figures presented in Tables A1.2 to A1.8, including
data on defence expenditure.
The Annex also provides information on the
cost of ageing
and the
national fiscal framework.
Fiscal
sustainability risks are discussed in the Debt Sustainability Monitor 2024.(
24
)
(
19
) Regulation (EU) 2024/1263 of the European Parliament and of the Council (EU) on the effective coordination of economic policies
and on multilateral budgetary surveillance, together with the amended Regulation (EC) No 1467/97 on the implementation of the
excessive deficit procedure, and the amended Council Directive 2011/85/EU on the budgetary frameworks of Member States are the
core elements of the reformed EU economic governance framework.
(
20
) OJ C, C/2025/645, 10.2.2025, ELI:
http://data.europa.eu/eli/C/2025/645/oj.
(
21
) Council Recommendation with a view to bringing an end to the situation of an excessive deficit in Slovakia, C/2025/5039.
(
22
) On 30 April 2025, Slovakia requested to the Commission and to the Council the activation of the National Escape Clause. On this
basis, the Commission adopted a Recommendation for a Council Recommendation allowing Slovakia to deviate from, and exceed,
the net expenditure path set by the Council, COM(2025)614.
(
23
) Communication from the Commission accommodating increased defence expenditure within the Stability and Growth Pact of 19
March 2025, C(2025) 2000 final.
(
24
)
European Commission (2025) ‘Debt Sustainability Monitor 2024,’
European Economy-Institutional Papers
306.
26
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Developments in government deficit and debt
Slovakia’s government deficit amounted to 5.3% of GDP in 2024. Based on the Commission’s Spring 2025
Forecast, it is projected to decrease to 4.9% of GDP in 2025. The government debt-to-GDP ratio amounted
to 59.3% at the end of 2024 and, according to the Commission, it is projected to increase to 60.9% end-
2025. The high debt in 2025 results primarily from accumulated high primary deficits in the previous
years that more than compensate the favourable interest-growth-rate differential.
Table A1.1:
General government balance and debt
Variables
1
2
2024
% GDP
% GDP
Outturn
-5.3
59.3
APR
-4.9
61.1
2025
COM
-4.9
60.9
APR
-4.5
63.3
2026
COM
-5.1
63.0
General government balance
General government gross debt
Source:
Commission Spring 2025 Forecast (COM), Annual Progress Report (APR)
Developments in net expenditure
The net expenditure(
25
) growth of Slovakia in 2025 is forecast by the Commission(
26
) to be below the
recommended maximum. Considering 2024 and 2025 together, the cumulative growth rate of net
expenditure is also projected to be below the recommended maximum cumulative growth rate. The Annual
Progress Report (APR) presents a lower net expenditure growth rate of 3.0% for 2024 than the
Commission's estimate, due to the APR assuming a lower level of EU-funded expenditures for 2023 than
in the validated outturn data from Eurostat. This assumption leads to higher net expenditure in the APR,
resulting in a lower growth rate for 2024 and subsequently lower cumulative growth rate estimates.
Table A1.2:
Net expenditure growth
Annual
REC
2024
2025
2026
Cumulative*
COM
REC
Growth rates
5.4%
n.a.
3.8%
10.3%
3.9%
11.2%
APR
n.a.
6.6%
n.a.
COM
n.a.
9.3%
13.6%
APR
3.0%
3.6%
2.3%
n.a.
3.8%
0.9%
(*) The cumulative growth rates are calculated by reference to the base year of 2023.
Source:
Council Recommendation to correct the excessive deficit in Slovakia. Annual Progress Report (APR), and Commission's
calculation based on Commission Spring 2025 Forecast (COM).
General government defence expenditure in Slovakia amounted to 1.4% of GDP in 2021, 1.0% of GDP in
2022 and 1.2% of GDP in 2023(
27
). According to the Commission 2025 Spring Forecast, expenditure on
defence is projected at 1.3% of GDP in 2024 and 2.3% of GDP in 2025.
(
25
) Net expenditure is defined in Article 2(2) of Regulation (EU) 2024/1263 as government expenditure net of (i) interest expenditure,
(ii) discretionary revenue measures, (iii) expenditure on programmes of the Union fully matched by revenue from Union funds, (iv)
national expenditure on co-financing of programmes funded by the Union, (v) cyclical elements of unemployment benefit
expenditure, and (vi) one-off and other temporary measures.
(
26
) Commission Spring 2025 Forecast,
European Economy-Institutional paper 318,
May 2025.
(
27
)
Eurostat, government expenditure by classification of functions of government (COFOG).
27
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Table A1.3:
Net expenditure (outturn and forecast), annual and cumulated deviations vis-à-vis the
recommendation
Variables
Total expenditure
2
Interest expenditure
3
Cyclical unemployment expenditure
4
Expenditure funded by transfers from the EU
5
National co-financing of EU programmes
6
One-off expenditure (levels, excl. EU funded)
Net nationally financed primary expenditure (before
7=1-2-3-4-5-6
discretionary revenue measures, DRM)
8
Change in net nationally financed primary expenditure (before DRM)
9
DRM (excl. one-off revenue, incremental impact)
Change in net nationally financed primary expenditure
10=8-9
(after DRM)
11
Outturn / forecast net expenditure growth
12
Recommended net expenditure growth*
13=(11-12) x 7
Annual deviation
14 (cumulated from 13)
Cumulated deviation
15=13/17
Annual balance
16=14/17
Cumulated balance
17
p.m. Nominal GDP
1
bn NAC
bn NAC
bn NAC
bn NAC
bn NAC
bn NAC
bn NAC
bn NAC
bn NAC
bn NAC
% change
% change
bn NAC
bn NAC
% GDP
% GDP
bn NAC
2023
Outturn
59.4
1.4
0.0
4.2
0.6
0.0
53.2
2024
Outturn
61.7
1.8
0.0
2.0
0.5
0.0
57.4
4.3
1.4
2.8
5.36%
6.2%
-0.4
-0.4
-0.3
-0.3
131.0
2025
COM
67.0
2.2
0.0
3.2
0.4
0.0
61.3
3.9
1.7
2.2
3.8%
3.8%
0.0
-0.5
0.0
-0.3
138.1
2026
COM
71.1
2.4
0.0
4.1
0.4
0.0
64.2
2.9
0.5
2.4
3.9%
0.9%
1.9
1.4
1.3
1.0
144.7
123.8
* The growth rate for 2024 is not a recommendation but serves to anchor the base, as the latest year with outturn data when
setting the net expenditure path is year 2023.
Source:
Commission Spring 2025 Forecast and Commission's calculation
Table A1.4:
Defence expenditure
1
2
3
4
Total defence expenditure
of which: gross fixed capital formation
Flexibility from increases in defence expenditure
Cumulated balance after flexibility
% GDP
% GDP
% GDP
% GDP
2021
1.4
0.2
2022
1.0
-0.1
2023
1.2
-1.0
2024
1.3
0.2
2025
2.3
1.2
0.9
-1.2
2026
2.0
0.9
0.6
0.4
Source:
Eurostat (COFOG), Commission Spring 2025 Forecast and Commission's calculation
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Table A1.5:
Macroeconomic developments and forecasts
Variables
1=7+8+9
2024
Outturn
APR
1.9
1.6
1.3
8.9
2.7
4.4
3.1
0.6
-1.3
-0.5
0.3
5.3
1.7
3.9
3.1
5.3
n.a.
2025
COM
1.5
0.9
0.9
3.6
1.9
2.1
1.4
0.2
-0.2
-0.8
-0.1
5.3
1.6
4.0
3.9
4.9
-1.9
APR
1.9
1.8
1.2
-0.3
3.9
3.7
1.2
0.6
0.3
-0.8
0.1
5.2
1.8
3.7
3.4
5.3
n.a.
2026
COM
1.4
1.6
0.8
3.8
1.8
2.4
1.9
0.0
-0.5
-1.4
-0.1
5.3
1.5
2.9
3.3
4.4
-2.3
Real GDP
% change
2.1
2
Private consumption
% change
2.9
3
Government consumption expenditure
% change
3.7
4
Gross fixed capital formation
% change
1.8
5
Exports of goods and services
% change
0.3
6
Imports of goods and services
% change
2.3
Contributions to real GDP growth
7
- Final domestic demand
pps
2.9
8
- Change in inventories
pps
1.0
9
- Net exports
pps
-1.8
10
Output gap
% pot GDP
-0.3
11
Employment
% change
-0.2
12
Unemployment rate
%
5.3
13
Labour productivity
% change
2.2
14
HICP
% change
3.2
15
GDP deflator
% change
3.6
16
Compensation of employees per head
% change
7.3
Net lending/borrowing vis-à-vis the rest of the
17
% GDP
-2.1
world
Source:
Commission Spring 2025 Forecast (COM), Annual Progress Report (APR)
Table A1.6:
General government budgetary position
Variables (% GDP)
1=2+3+4+5
2
3
4
5
8=9+16
2024
Outturn
41.8
11.4
8.2
16.0
6.2
47.1
45.7
11.3
5.7
20.8
1.7
3.6
2.6
1.4
-5.3
-3.9
-5.2
0.0
-5.2
-3.8
APR
44.0
12.6
8.3
15.9
7.2
48.9
47.3
11.1
6.3
20.4
1.1
4.9
3.5
1.6
-4.9
-3.3
n.a.
0.0
-4.5
-2.9
2025
COM
43.6
12.5
8.3
15.8
7.0
48.5
46.9
11.3
5.6
20.2
1.0
5.1
3.7
1.6
-4.9
-3.3
-4.5
0.0
-4.5
-3.0
APR
42.7
12.5
8.2
16.1
5.9
47.3
45.7
11.0
6.0
20.0
0.7
3.6
4.4
1.6
-4.5
-2.9
n.a.
0.0
-4.2
-2.6
2026
COM
44.0
12.4
8.2
15.9
7.5
49.1
47.5
11.2
5.4
20.3
0.9
5.2
4.5
1.6
-5.1
-3.5
-4.6
0.0
-4.6
-3.0
Revenue
of which:
- Taxes on production and imports
- Current taxes on income, wealth, etc.
- Social contributions
- Other (residual)
Expenditure
of which:
- Primary expenditure
of which:
- Compensation of employees
- Intermediate consumption
- Social payments
- Subsidies
- Gross fixed capital formation
- Other
- Interest expenditure
General government balance
Primary balance
Cyclically adjusted balance
One-offs
Structural balance
Structural primary balance
9
10
11
12
13
14
15
16
18=1-8
19=1-9
20
21
22=20-21
23=22+16
Source:
Commission Spring 2025 Forecast (COM), Annual Progress Report (APR)
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Table A1.7:
Debt developments
Variables
1
2=3+4+8
3
4≈5+6+7
5
6
7
8
Gross debt ratio* (% of GDP)
Change in the ratio (pps. of GDP)
Contributions**
Primary balance
'Snow-ball' effect
of which:
- Interest expenditure
- Real growth effect
- Inflation effect
'Stock-flow' adjustment
2024
Outturn
59.3
3.6
3.9
-1.6
1.4
-1.1
-2.0
1.4
2025
APR
61.1
1.8
3.3
-1.3
1.6
-1.1
-1.8
-0.3
COM
60.9
1.6
3.3
-1.5
1.6
-0.8
-2.2
-0.2
APR
63.3
2.2
2.9
-1.5
1.6
-1.1
-2.0
0.8
2026
COM
63.0
2.1
3.5
-1.2
1.6
-0.8
-2.0
-0.2
* End of period.
** The 'snow-ball' effect captures the impact of interest expenditure on accumulated general government debt, as well as the
impact of real GDP growth and inflation on the general government debt-to-GDP ratio (through the denominator). The stock-flow
adjustment includes differences in cash and accrual accounting (including leads and lags in Recovery and Resilience Facility grant
disbursements), accumulation of financial assets, and valuation and other residual effects.
Source:
Commission Spring 2025 Forecast and Commission's calculation (COM), Annual Progress Report (APR)
Table A1.8:
RRF
Grants
Revenue from RRF grants (% of GDP)
1
2
RRF grants as included in the revenue projections
Cash disbursements of RRF grants from EU
2020
n.a.
n.a.
2021
0.0
0.8
2022
0.0
0.4
2023
0.1
1.2
2024
0.7
0.6
2025
2.2
1.0
2026
1.6
1.1
Expenditure financed by RRF grants (% of GDP)
3
4
5
6=4+5
Total current expenditure
Gross fixed capital formation
Capital transfers
Total capital expenditure
2020
0.0
0.0
0.0
0.0
2021
0.0
0.0
0.0
0.0
2022
0.0
0.0
0.0
0.0
2023
0.1
0.1
0.0
0.1
2024
0.2
0.1
0.4
0.4
2025
0.2
1.5
0.5
2.0
2026
0.2
1.0
0.5
1.4
Other costs financed by RRF grants (% of GDP)
7
8
9
Reduction in tax revenue
Other costs with impact on revenue
Financial transactions
2020
0.0
0.0
0.0
2021
0.0
0.0
0.0
2022
0.0
0.0
0.0
2023
0.0
0.0
0.0
2024
0.0
0.0
0.0
2025
0.0
0.0
0.0
2026
0.0
0.0
0.0
Source:
Annual Progress Report
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Cost of ageing
Total age-related spending in Slovakia is projected to rise from about 20% of GDP in 2024 to
23% in 2040 and to 25% in 2070 (see Table
A1.9). The overall increase of around 5 pps of GDP by
2070 is due to a combination of rising pension, healthcare and long-term care expenditure.
Public pension spending is projected at 9.4% of GDP in 2024 and to rise by 2 pps of GDP by
2070, of which 1.4 pps would occur by 2040.
The peak increase is expected in the late 2050s, when
spending would be 2.8 pps of GDP higher than in 2024, followed by a decrease over the final decade of
the projections.
Public healthcare expenditure is projected at 6.1% of GDP in 2024 (slightly below the EU
average of 6.6%) and is expected to increase by 0.7 pps by 2040 and by a further 0.4 pps by
2070.
These increases, due to an ageing population, pose a risk to fiscal sustainability in the medium and
long term (
28
).
Public expenditure on long-term care is projected at 1.1% of GDP in 2024 (below the EU
average of 1.7%) and is expected to increase by 0.5 pps of GDP by 2040 and by a further 0.8
pps of GDP by 2070 (
29
).
Table A1.9:
Projected change in age-related expenditure in 2024-2040 and 2024-2070
age-related
expenditure
2024 (% GDP)
SK
EU
20.3
24.3
age-related
expenditure
2024 (% GDP)
SK
EU
20.3
24.3
change in 2024-2040 (pps GDP) due to:
pensions
1.4
0.5
healthcare
0.7
0.3
long-term care
0.5
0.4
education
0.1
-0.3
total
2.8
0.9
age-related
expenditure
2040 (%GDP)
23.1
25.2
age-related
expenditure
2070 (%GDP)
4.7
1.3
25.0
25.6
SK
EU
SK
EU
change in 2024-2070 (pps GDP) due to:
pensions
2.0
0.2
healthcare
1.2
0.6
long-term care
1.3
0.8
education
0.3
-0.4
total
Source:
2024 Ageing Report (EC/EPC).
National fiscal framework
The Slovak Council for Budget Responsibility (CBR) is a well-resourced independent fiscal
institution with a broad mandate and a relatively developed media presence.
The leadership has
staggered (but non-renewable) mandates of seven years and is subject to a three-year
“cooling off
period” before joining a government. Although its access to information has recently been strengthened, it
has no formal access-to-information agreement with the Ministry of Finance and no legal base for access
to data from entities outside the general government sector, such as state-owned enterprises. In addition,
the CBR has no recourse if an entity refuses to provide the requested data. Its policy dialogue with the
government is underdeveloped.
(
28
) Key performance characteristics, recent reforms and investments of the Slovak healthcare system are discussed in Annex 14
‘Health
and health systems’.
(
29
) The adequacy and quality of the Slovak long-term care system are covered in Annex 11
‘Social policies’.
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Slovakia continues to reform the planning of public investment, including through the recovery
and resilience plan, while monitoring and ex-post assessments remain weak.
Project selection at
ministry level has improved through a new methodology for the preparation and evaluation of investment
projects, including the role of investment strategies (
30
) This methodology is due to be implemented
retroactively and gradually across the full investment portfolio by 2026 (
31
). Further reforms of project
governance are planned by the Investment Authority Slovakia, aimed to improve risk management and
project selection. In addition, all central government investment projects above EUR 40 million must be
submitted to the Ministry of Finance for evaluation. For projects above EUR 40 million, mandatory
feasibility studies. are performed. The assessment of the investment projects is carried out centrally by
the Ministry of Finance, unless a project is classified as a ”strategic investment”, in which case the
assessment does not have to be centrally performed by the Ministry of Finance. Since 2021, only
evaluated and prepared projects can be included in the budget. By contrast, there are no systematic ex
post reviews or asset registers in place.
Table A1.10:Fiscal
Governance Database Indicators
2023
Country Fiscal Rule Strength Index (C-FRSI)
Medium-Term Budgetary Framework Index (MTBFI)
Slovakia
16.06
0.78
EU Average
14.52
0.73
The Country Fiscal Rule Strength Index (C-FRSI) shows the strength of national fiscal rules aggregated at the country level based
on i) the legal base, ii) how binding the rule is, iii) monitoring bodies, iv) correction mechanisms, and v) resilience to shocks. The
Medium-Term Budgetary Framework Index (MTBFI) shows the strength of the national MTBF based on i) coverage of the
targets/ceilings included in the national medium-term fiscal plans; ii) connectedness between these targets/ceilings and the
annual budgets; iii) involvement of the national parliament in the preparation of the plans; iv) involvement of independent fiscal
institutions in their preparation; and v) their level of detail. A higher score is associated with higher rule and MTBF strength.
Source:
Fiscal Governance Database
(
30
) Measure C.18 [R.3] on streamlining
public investment - application of the methodology for the procedures for preparing and
prioritising investments.
(
31
) Recovery and Resilience Plan measure C.18 [R.3].
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ANNEX 2: TAXATION
This annex provides an indicator-based
overview of Slovakia’s tax system.
It includes
information on: (i) the tax mix: (ii) competitiveness
and fairness aspects of the tax system; and (iii)
tax collection and compliance.
In October 2024, Slovakia's parliament
approved
a
comprehensive
fiscal
consolidation
package
(combining
expenditure cuts and revenues increases)
totalling EUR 2.7 billion.
The package is
supposed to reduce the budget deficit by
approximately 1 percentage point annually and
bring it below 3% of GDP by 2027. Among tax
increases, the consolidation plan includes: (i)
adjustments to VAT (increase of a base rate from
20% to 23%); (ii) reforms of corporate-income tax
(CIT) (strengthening the progressive nature of the
tax structure); (iii) the introduction of a financial
transaction tax; and (iv) the strengthening of the
special levy in regulated industries. These
measures reflect Slovakia’s commitment to fiscal
discipline and are designed to stabilise the debt-
to-GDP ratio at approximately 60.5% by 2028.
The tax mix could be made more efficient
and more supportive of inclusive and
sustainable growth.
Table A2.1 shows that
Slovakia’s total tax revenue
in 2024 was
Table A2.1:
Taxation indicators
SK
Median (EU-27)
Tax structure
equivalent to 35.3% of GDP, well below the EU
aggregate of 39.0% despite a steady upward
trend in the ratio since 2010. Both labour and
consumption taxes account for a significantly
higher share of Slovakia’s total tax revenue
(Graph
A2.1) than the respective EU averages. The largest
portion of tax revenues comes from labour taxes,
which represent 53.9% of total tax revenue (2.7
pps above the EU average). This is followed by
consumption taxes which make up 33.0% of total
revenue, compared with the EU average of 26.9%.
A distinctive
feature of Slovakia’s tax mix is that
the high share of labour taxes is primarily driven
by compulsory social contributions, which amount
to 42.9% of total revenue, exceeding the EU
average (32.6%) for 10.3 pps (in terms of GDP,
social contributions in Slovakia amounted to
15.1% of GDP, against the EU average of 12.7%
of GDP). In contrast, taxes on capital account for
only 13.1% of total taxation, significantly below
the EU average of 21.9%. The structure of
Slovakia’s tax mix suggests
that careful
consideration should be given to a rebalancing,
shifting the burden away from labour taxation to
capital taxation. This could play a role in
supporting inclusive growth and equality of
opportunity.
Slovakia
2010 2021 2022
Total taxes (including compulsory actual social contributions) (% of
GDP)
Taxes on labour (% of GDP)
of which, social security contributions (SSC, % of GDP)
Taxes on consumption (% of GDP)
of which, value added taxes (VAT, % of GDP)
Taxes on capital (% of GDP)
Personal income taxes (PIT, % of GDP)
Corporate income taxes (CIT, % of GDP)
Total property taxes (% of GDP)
Recurrent taxes on immovable property (% of GDP)
Environmental taxes (% of GDP)
Effective carbon rate in EUR per tonne of CO
2
equivalents
Tax wedge at 50% of average wage (single person) (*)
Tax wedge at 100% of average wage (single person) (*)
Corporate income tax - effective average tax rates (1) (*)
Difference in Gini coefficient before and after taxes and cash social
transfers (pensions excluded from social transfers) (2) (*)
Outstanding tax arrears: total year-end tax debt (including debt
VAT gap (% of VAT total tax liability, VTTL) (**)
27.8
14.4
11.9
9.8
6.1
3.6
2.6
2.4
0.4
0.4
2.1
NA
31.8
38.1
18.6
5.6
34.7
18.6
15.0
11.3
7.4
4.7
3.7
3.6
0.5
0.5
2.3
65.8
36.9
41.5
20.6
6.4
21.6
13.8
35.0
18.4
14.7
11.3
7.7
5.2
3.7
3.6
0.4
0.4
2.5
NA
37.3
41.6
20.6
6.0
19.8
14.6
2023
34.9
18.9
15.1
11.6
8.0
4.6
3.8
3.6
0.4
0.4
2.0
64.1
37.6
41.7
20.6
6.6
2024
35.3
2010
37.8
19.8
12.9
10.9
6.8
7.1
8.6
2.2
1.9
1.1
2.5
NA
33.9
40.9
21.3
8.6
EU-27
2021 2022 2023
40.2
20.5
13.0
11.2
7.3
8.5
9.6
2.9
2.2
1.1
2.4
86.0
31.8
39.9
19.3
8.2
35.5
6.6
39.7
20.1
12.7
10.9
7.4
8.7
9.4
3.2
2.1
1.0
2.1
NA
31.5
39.9
19.1
7.9
32.6
7.0
39.0
20.0
12.7
10.5
7.1
8.5
9.3
3.2
1.9
0.9
2.0
84.8
31.5
40.2
18.9
7.7
2024
By tax base
Some tax types
Progressivity &
fairness
38.2
42.6
31.8
40.3
Tax administration &
considered not collectable) / total revenue (in %) (*)
compliance
(1) Forward-looking effective tax rate (KPMG).
(2) A higher value indicates a stronger redistributive impact of taxation.
(*) EU-27 simple average.
(**) For more details on the VAT gap, see European Commission, Directorate-General for Taxation and Customs Union, VAT gap in
the EU - 2024 report,
https://data.europa.eu/doi/10.2778/2476549
For more data on tax revenues as well as the methodology applied, see the Data on Taxation webpage,
https://ec.europa.eu/taxation_customs/taxation-1/economic-analysis-taxation/data-taxation_en.
Source:
European Commission, OECD
33
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Revenues from property taxes in Slovakia
are low (equivalent to 0.4% of GDP in 2023
compared with 1.9% of GDP in the EU as a
whole), despite property taxes being
considered relatively growth friendly.
Unlike
most other Member States, Slovakia has an area-
based taxation system, in which immovable
property is taxed based on its area rather than its
estimated market value. In such a taxation
framework, the location, quality, type, number of
rooms and age of the dwelling are not factored in,
and this hampers fairness and equity. Slovakia still
does not possess either valuation systems or
sufficient data to align the notional property
values used by the taxation system with market
values. Given these characteristics, implementing a
market-value-based taxation system, either in
addition to or as a replacement for the current
area-based system, would be more appropriate to
improve fairness, increase tax revenue, and help
dampen real estate demand. Currently, the market
value is factored in the calculation of the land tax
which, however, does not apply to areas covered
by buildings or apartments. In this regard, the
extension of a levy on land value, typically
imposed on landowners, could be an efficient and
non-distortive solution to address the issues
arising from the current area-based property tax
system.
With the stagnating share of environmental
taxation in Slovakia’s tax mix, more use can
be made of this tax type.
Specifically, revenues
derived from taxes on transport, pollution and
natural resources, consistently below the EU
average, indicate potential to strengthen the
application of the ‘polluter pays’ principle. Effective
carbon rate in EUR per tonne of CO
2
equivalents in
Slovakia (64.1) is significantly below the EU
average (84.8), which suggests weaker economic
incentives for businesses and consumers to reduce
emissions in line with EU and global climate goals.
To fully internalise externalities, Slovakia could
consider expanding the use of underutilised
environmental tax instruments such as waste
disposal taxes (including incineration), transport
taxes, and additional levies on waste discharge
into water or plastic products.
Graph A2.1:
Tax revenue shares in 2024
Tax revenue shares in 2023, Slovakia (outer ring)
and EU (inner ring)
13.1
21.9
51.2
33.2
26.9
54.3
Taxes on labour
Taxes on consumption
Taxes on capital
Source:
Taxation Trends Data, DG TAXUD
The consolidation package will impact
companies through increased taxation and
higher operational costs.
This could reduce
economic activity, impacting corporate expansion
and resulting in a slowdown of economic growth
and higher inflation in the short term. The
progressive tax structure of the new CIT (ranging
from 10% till 24%) is expected to increase
revenue generation for public services and
infrastructure, potentially improving the business
environment. However, it may also lead larger
corporations to reassess their investment
strategies in Slovakia due to increased tax
liabilities. The overall impact will depend on how
businesses adapt to these changes and on how
effective the government is in implementing them.
Slovakia ranked 15th in investment (gross
fixed capital formation) as a share of GDP in
the EU, at 22.0% in 2023, close to the EU-27
average (22.2%).
Investment growth is set to be
limited in 2024, following a jump in 2023 due to
intensified use of EU funds by the end of the year.
In 2025, investment is expected to pick up again,
driven by absorption of EU structural funds and
the Recovery and Resilience Facility. On R&D
expenditure as a share of GDP, in 2022 Slovakia
ranked within the lower third of EU countries,
holding the 20th position in the EU-27. In terms of
public support for R&D expenditure, Slovakia
performed slightly better, although it remains
considerably behind the EU average.
Nevertheless, Slovakia offers a range of
support mechanisms for startups and scale-
ups,
including equity investments through
government-backed funds, tax incentives for
investors, and provisions for employee stock
34
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options, all aimed at fostering innovation and
economic growth.
Finding skilled staff, uncertainty, and energy
costs remain the main investment obstacles
for businesses.
In the European Investment
Bank’s 2024 investment survey,
Slovakia had the
worst ranking for
skilled staff. Businesses’
difficulties in hiring skilled staff have worsened
recently, resulting in 93% of firms now facing this
challenge, compared with 77% in the EU.
Uncertainty about the future is a concern for 90%
of businesses against an EU average of 79%.
Energy-cost barriers slightly decreased in 2024
compared with 2023, although this issue remains
more pressing in Slovakia than elsewhere in the
EU.
Graph A2.2:
Tax wedge for single and second
earners, % of total labour costs, 2024
Tax wedge, % of total labour costs
50
wedge faced by these second earners was higher
than that of single people at the same wage level.
The ability of the tax-and-benefit system to
reduce inequality (measured by its ability to
reduce the Gini coefficient) has increased from 5.6
points since 2010 to 6.6 in 2023. (see Table A2.1).
While this is below the EU average (7.7 points), it
is sufficient to keep inequality in Slovakia as
measured by the Gini index among the lowest in
the EU.
Slovakia has shown commitment to
improving the efficiency of its tax-collection
system through significant IT investments
and a comprehensive digital transformation
strategy.
The VAT gap has decreased significantly
in recent years in Slovakia, but despite marked
improvements in recent years, the VAT compliance
gap remains above the EU average. The ongoing
digitalisation efforts (e.g. mandatory e-invoices for
domestic
business-to-business
transactions
planned as of 1 January 2027) are likely to
increase the overall effectiveness of Slovakia's tax
administration.
The shares of e-filing rates for CIT and VAT
are above the EU average, although there is
room for improvement for e-filing of
personal-income-tax returns in Slovakia.
Slovakia is progressing towards implementing e-
filing for all types of taxes. Efforts are ongoing to
expand e-filing capabilities.
Estimates of total tax-compliance costs for
SMEs in Slovakia are well below the EU
average.
For estimated average CIT compliance
costs, Slovakia has the second lowest costs in the
EU. Similarly, looking at estimated average VAT
compliance costs, Slovakia also has the lowest
costs in the EU.
On dispute-resolution, the overall inventory
of cases does not stand out as particularly
high,
and the average time a dispute-resolution
cycle takes is two years.
45
40
35
30
25
46.4
44.5
42.6
38.2
40.4
20
50
100
150
Earnings as % of the average wage
Single earner - SK
Second earner - SK
Single earner - EU average
Second earner - EU average
The tax wedge for second earners assumes a first earner at
100% of the average wage and no children. For the full
methodology, see OECD, 2016, Taxing Wages 2014-2015.
Source:
European Commission
Labour taxation is less progressive than on
average in the EU due to a relatively high tax
wedge (
32
) for lower-wage earners.
Graph A2.2
shows that the labour tax wedgefor Slovakia in
2024 was above the EU average for low earners
(e.g. 38.2% for single people earning 50% of the
average wage, compared to an EU average of
31.8%), and close to the EU average at higher
wage levels. Second earners earning a wage of
67% of the average wage, whose spouses earn
the average wage, were subject to a tax wedge
greater than the EU average. In addition, the tax
(
32
) The tax wedge is defined as the sum of personal income
taxes and employee and employer social-security
contributions net of family allowances, expressed as a
percentage of total labour costs (the sum of the gross wage
and social-security contributions paid by the employer).
35
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PRODUCTIVITY
ANNEX 3: INNOVATION TO BUSINESS
Slovakia is an ‘emerging innovator’, and the
gap between its performance and the EU
average is widening.
According to the 2024
edition of the European Innovation Scoreboard (
33
),
Slovakia’s
performance
(65.1%)
remains
significantly below the EU average and is
improving at a lower rate than the EU average.
Slovakia’s R&D intensity (
34
) increased in 2023 but
remains well below the EU average (1.03% vs
2.24%). In its 2023 national strategy for research,
development and innovation (NSRDI) (
35
), Slovakia
set a 2% target for R&D intensity and provided an
action plan containing concrete measures (
36
) for
reforming the research and innovation (R&I)
system. This is much needed, considering the weak
and fragmented public science base and modest
innovation activity in the private sector,
particularly SMEs. The country is also lagging
behind in the adoption of advanced digital
technologies, which remains below the EU average.
To successfully implement the NSRDI, a whole-of-
government approach and strong coordination is
needed. Moreover, the digitalisation of businesses
remains an issue in Slovakia despite recent
progress in the uptake of AI solutions.
in 2021), although it has increased slightly (up
from 3.6% in 2017). This points to a weak public
science
base
due
to
long-standing
37
underinvestment ( ) and a fragmented landscape
of R&I performing institutions of 35 higher
education institutions and 45 research centres and
institutes. Reforms to improve R&I governance and
coordination have been launched under the
recovery and resilience plan, complemented by an
analysis of the responsibilities of ministries,
funding agencies and policymaking organisations.
Some of these proposals for streamlining
governance are likely to be reflected in the new
R&I bill currently in the legislative process.
Moreover, the NSRDI action plan envisages an
evaluation of five ongoing reforms aimed at
enhancing the quality of higher education
institutions, including a periodic assessment of
their scientific performance (
38
). The bill is
expected to propose further reforms aimed at
boosting research and innovation, drawing on
lessons learned. Continued support for high-quality
scientific outputs, along with further efforts to
consolidate the fragmented system, are needed to
build a critical mass and achieve the targets (
39
)
set by the NSRDI and the action plan. In this
respect, engaging international evaluators in calls
funded from the recovery and resilience facility
guaranteed more efficient evaluations, reduced
conflicts of interest and thus proved as good
practice.
Science and innovative ecosystems
A weak and fragmented public science base
restricts the potential for knowledge
diffusion, which is essential for boosting
competitiveness.
Slovakia’s share of scientific
publications among the top 10% most cited, as a
percentage of its total scientific publications,
remains one of the lowest among EU Member
States (4.6% compared to the EU average of 9.6%
(
33
) 2024, European Innovation Scoreboard, Country profile:
Slovakia..
The EIS provides a comparative analysis of
innovation performance in EU countries, including the relative
strengths and weaknesses of their national innovation
systems.
(
34
) R&D intensity is defined as gross domestic expenditure on
R&D as a percentage of GDP.
(
35
) Web page:
Národná stratégia v�½skumu, v�½voja a inovácií
V�½skumná a inovačná autorita.
(
36
) The authorities have announced that by June 2024, 28 out
of a total of 91 measures of the action plan had been
completed.
.
(
37
) At 0.45% of GDP, public expenditure on R&D (GOVERD +
HERD) remains significantly below the EU average of 0.72%
and is increasing only at a slow pace (by 0.41% in 2020).
(
38
) In 2024, a total of EUR 84 million was allocated to quality-
related funding based on the verification of excellence in
research (VER). This amount is expected to remain the same
or increase in 2025 and 2026.
(
39
) One such target is to increase the share of scientific
publications among the top 10% most cited, as a percentage
of total scientific publications, to 8% by 2030 (from 4.6% in
2021).
36
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Graph A3.1:
Slovakia’s share of scientific
publications among the top 10% most cited as a
percentage of its total scientific publications
16
14
12
10
8
6
4
2
0
9.6
innovation activity in the business sector to
achieve the 1.2% target for business R&D remains
a key priority (
43
). Additionally, Slovakia would
benefit from participating in the unitary patent
system, which offers key advantages in terms of
promoting
innovation
and
enhancing
44
competitiveness ( ).
Graph A3.2:
Business expenditure on R&D as a
percentage of GDP in the Visegrad countries
1.6
4.6
1.4
NL
DK
SE
FI
BE
IE
IT
CY
LU
AT
DE
EE
EU
EL
ES
FR
PT
MT
SI
LT
RO
HU
PL
CZ
HR
LV
SK
BG
1.2
1
0.8
0.6
0.4
EU average
CZ
Source:
Eurostat
PL
HU
SK
CZ
1.19
PL
1
HU
1
SK
0.58
Business innovation
Slovakia’s ability to innovate and integrate
new technologies is limited, with low R&D
expenditure in the private sector.
There is a
high proportion of low-productivity micro-
enterprises in the Slovak business population.
These micro-enterprises, businesses with less than
10 employees, which represent 97% of firms and
account for over 40% of business-sector
employment in Slovakia, engage little in research
and innovation (
40
). Productivity growth has mostly
been driven by the manufacturing sector,
especially large multinational firms, while
productivity gains in service sectors have been
more moderate (
41
). The size of the ICT sector is
below the EU average (4.71% vs 5.49% in gross
value added in 2021) and R&D business
expenditure in the ICT sector amounts to 27.58%
of total R&D expenditure (
42
). Overall weak
innovation activity in the private sector is also
reflected in low business enterprise expenditure on
R&D (BERD) as a percentage of GDP, which in
2023 stood at 0.58% compared to the EU average
of 1.49%. Moreover, it results in low innovation
output, as measured for instance in patent
applications. In 2022, only 0.5 patents were filed
under the Patent Cooperation Treaty per billion
GDP, while the EU average was 2.8. Boosting
(
40
) OECD report
Strengthening FDI and SME Linkages in the
Slovak Republic | OECD, 2022.
( ) OECD (2024),
OECD Economic Surveys: Slovak Republic
2024:
https://doi.org/10.1787/397ca086-en.
41
0.2
EU
average
2023
1.49
0
Source:
Eurostat
Slovakia continues to lag behind on the
digitalisation of businesses.
In 2024, 62.9% of
Slovak SMEs have a basic level of digital intensity,
considerably below the EU average of 72.91%. The
country also performs below the EU average as
regards the proportion of businesses that have
taken up advanced digital technologies (i.e.
artificial intelligence, cloud computing services and
data analytics). However, there is a promising
trend in the adoption of AI solutions, with 10.78%
of Slovak businesses using AI in 2024, which
indicates a 53.13% increase from 7.04% in 2023.
Adoption of AI technology by businesses
nonetheless remains below the EU average of
13.48%. Along similar lines, in 2023, 30.17% of
Slovak enterprises have adopted data analytics as
opposed to 33.17% at EU level, while 30.16%
used cloud computing services, as opposed to
38.86% at EU level. Overall, considerable work is
still required to reach the 2030 goal of achieving
75% adoption of AI, cloud computing and data
analytics, and other Digital Decade targets.
Exploring the potential of better targeted
public support could be beneficial in
stimulating companies to engage in
(
43
) Target set in the national strategy for research, development
and innovation.
(
44
) The country is has already signed and is expected to ratify
the Unified Patent Court Agreement.
(
42
) Eurostat,
ICT sector size
and
R&D in ICT sector,
2021 data.
37
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innovation.
Total public-sector support for
business R&D expenditure as a percentage of GDP
is significantly below the EU average (0.204%).
However, in an encouraging recent trend, the rate
increased from 0.022% in 2017 to 0.092% in
2021. This growth has been driven by increased
R&D tax incentives, while direct support to R&D
has stagnated at a low level. Recent evaluations of
the R&D tax allowance (
45
) suggest that the
scheme mainly benefits large, incumbent, and
multinational firms (
46
). Moreover, a recent OECD
report (
47
) notes that the R&D tax incentive scheme
(
48
) does not include cash refunds, which could be
particularly beneficial for smaller and recently
established companies in need of financial support
at an early stage of the innovation process. Also,
an evaluation (
49
)
of the ‘patent box’ (
50
) scheme
has shown that it only benefited a few larger
companies, and that the current set-up is not likely
to boost the level of intellectual property by
stimulating patent activity by domestic businesses
or attracting foreign patents. Expanding the use of
direct competitive grant schemes is a measure to
be considered, along with continued use of the
newly established portal (
51
) as a one-stop shop
for finding information on public support for R&I.
Collaboration between businesses and the
research sector is limited, with little
technology
transfer.
Science-business
collaboration in Slovakia has been held back by a
weak science and innovation base, combined with
(
45
) The R&D tax allowance was reduced from 200% to 100% of
eligible R&D expenditure in 2022.
(
46
) MoF and VAIA, 2023,
Review of Spending, Competencies and
Personnel in Research, Development and Innovation. Final
Report:
Research (see p. 76).
(
47
) OECD (2024),
OECD Economic Surveys: Slovak Republic
2024:
https://doi.org/10.1787/397ca086-en
(see p. 50).
(
48
) MoF and VAIA, 2023,
Review of Spending, Competencies and
Personnel in Research, Development and Innovation. Final
Report:
Research
–(see
p. 74) tax instruments include: tax
relief for beneficieries of incentives; deduction of R&D
expences; patent box.
(
49
) MoF and VAIA, 2023,
Review of Spending, Competencies and
Personnel in Research, Development and Innovation Final
Report:
Research (see p. 79).
(
50
) patent box" refers to a tax regime that allows companies to
apply a reduced corporate tax rate to income derived from
intellectual property (IP) assets, such as patents, copyrights,
and trademarks.
(
51
)
Support finder - Research and Innovation Portal.
.
a lack of infrastructure to support collaboration
between academia and industry. This is reflected
in some relevant indicators, such as public
expenditure on R&D funded by businesses as a
percentage of GDP, which is very low and far
below the EU average (0.006% compared to
0.050% in 2022); it has also been declining over
time (from 0.034% in 2012). Moreover, in 2023
the number of researchers (full-time equivalents)
employed by businesses was significantly lower
less than half
than the EU average. However,
data on public-private scientific co-publications as
a share of total publications show a more positive
trend, rising from 4.9% in 2013 to 7% in 2023,
which is still slightly below the EU average of
7.7%. This is due, among other things, to the
structure of the Slovak business population, which
is dominated by micro-enterprises with no
innovation activity. These firms typically have
limited capacity for setting up collaboration
linkages with academia that support knowledge
transfer and for adopting advanced foreign
technologies (
52
). More recently, the recovery and
resilience plan has stimulated academia-business
cooperation
through
several
investment
53
streams ( ). However, shortcomings remain and
are acknowledged in the 2023 R&D strategy,
which includes specific measures in its action plan,
such as improved support for technology transfer
offices and simplified management of intellectual
property rights. Implementing these targeted
measures is essential, while ensuring stability of
dedicated programmes. Moreover, the lack of
collaboration between sectors should also be
addressed in the planned updated version of the
action plan.
Financing innovation
The local venture capital and growth capital
market is not developed enough to meet the
financing needs of innovative firms.
Venture
capital investment has been growing slowly, from
0.003% of GDP in 2014 to 0.015% in 2023, but
remains very low in comparison to the EU average
of 0.078%. Similarly, the value of private equity
(
52
) OECD (2022),
Strengthening FDI and SME Linkages in the
Slovak Republic:
https://doi.org/10.1787/972046f5-en.
(
53
) Component 9 Investment 2: Support for cooperation
between companies, academia and research organisations.
38
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relative to nominal GDP increased from 0.02% in
2022 to 0.03% in 2023 but remains below the EU
average of 0.41%. There are some initiatives in
place to promote start-up funding, such as a
crowdfunding platform to enable some businesses
to access venture and growth capital, but the
available funds are limited. However, there is no
comprehensive legal framework for supporting the
creation and growth of start-ups.
measures in this domain. Also, in line with the
action plan, a unit in charge of coordinating and
guiding policies on retaining and attracting talent
has been set up within the Research and
Innovation Authority (VAIA).
Entrepreneurship education is integrated into
the national curriculum as a part of the
national financial literacy standard, covering
both primary and secondary schools and
vocational and educational training.
However,
there is less emphasis on developing
entrepreneurship in higher education than in
secondary education.
Innovative talent
Slovakian businesses grapple with the
consequences of a considerable skill gaps.
According to a recent OECD study (
54
), 54% of
Slovakian enterprises report skill gaps (
55
). This has
a number of adverse consequences for firms. One
in three firms says that skills mismatches limit
their ability to adopt new technologies. This
highlights the significant economic risks involved
and the need to address this issue. Students
enrolled in science, technology, engineering and
mathematics programmes accounted for 21.8% of
all tertiary enrolments (ISCED 5-8) in 2022,
significantly lower than the EU average of 27.1%
and a decrease from 22.8% since 2017 (see
Annex 10). Moreover, Slovakia continues to face a
brain drain, as Slovak higher education institutions
are poorly ranked internationally, and the research
quality is low (
56
). This is reflected in the very high
proportion of high-school graduates who study
abroad, few of whom intend to return home after
their studies (
57
). This implies that Slovakia is
losing some of its most-skilled workers, further
aggravating skills shortages. The national strategy
for research, development and innovation
acknowledges the necessity to retain and attract
talent, and its action plan incorporates several
(
54
) OECD (2024),
Understanding Skill Gaps in Firms: Results of
the PIAAC Employer Module,
OECD Skills Studies, OECD
Publishing, Paris:
https://doi.org/10.1787/b388d1da-en.
(
55
) Skill gaps are defined as mismatches between the skills
available in a firm and those required to meet current and
future business needs (including adapting to technological
change).
(
56
) OECD (2021),
Improving Higher Education in the Slovak
Republic,
Higher
Education,
OECD
Publishing,
Paris,
https://doi.org/10.1787/259e23ba-en.
(
57
) Martinák and Varsik, 2020.
.
39
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Table A3.1:
Key innovation indicators
Slovakia
Headline indicator
R&D intensity (gross domestic expenditure on R&D as % of GDP)
Science and innovative ecosystems
Public expenditure on R&D as % of GDP
Scientific publications of the country within the top 10% most cited
publications worldwide as % of total publications of the country
Researchers (FTE) employed by public sector (Gov+HEI) per thousand
active population
International co-publications as % of total number of publications
R&D investment & researchers employed in businesses
Business enterprise expenditure on R&D (BERD) as % of GDP
Business enterprise expenditure on R&D (BERD) performed by SMEs as %
of GDP
Researchers employed by business per thousand active population
Innovation outputs
Patent Cooperation Treaty patent applications per billion GDP (in PPS€)
Employment share of high-growth enterprises measured in employment
(%)
Digitalisation of businesses
SMEs with at least a basic level of digital intensity
% SMEs (EU Digital Decade target by 2030: 90%)
Data analytics adoption
% enterprises (EU Digital Decade target by 2030: 75%)
Cloud adoption
% enterprises (EU Digital Decade target by 2030: 75%)
Artificial intelligence adoption
% enterprises (EU Digital Decade target by 2030: 75%)
Academia-business collaboration
Public-private scientific co-publications as % of total number of
publications
Public expenditure on R&D financed by business enterprise (national) as %
of GDP
Public support for business innovation
Total public sector support for BERD as % of GDP
R&D tax incentives: foregone revenues as % of GDP
BERD financed by the public sector (national and abroad) as % of GDP
Financing innovation
Venture capital (market statistics) as % of GDP, total (calculated as a 3-
year moving average)
Seed funding (market statistics) as % of GDP
Start-up and early-stage funding (market statistics) as % of GDP
Later stage and scale-up funding (market statistics) as % of GDP
Innovative talent
New graduates in science and engineering per thousand population aged
25-34
Graduates in the field of computing per thousand population aged 25-34
16.7
2.3
12
2
8.8
2.2
8.9
2.3
8.6
2.5
:
:
:
:
17.6
3.6
:
:
0.001
84.1
0
15.9
0.012
16.1
71.9
12
0.016
11.2
74.1
14.7
0.021
10
64.1
25.9
0.019
17.7
57.8
24.4
0.015
20.5
40.8
38.7
:
:
:
:
0.078
7.3
44.0
48.7
5.8
0.034
5.9
0.021
6.3
0.008
6.9
0.008
6.9
0.006
7
:
:
:
7.7
0.05
8.9
0.02
0.4
21`.50
0.6
18.81
0.6
10.19
0.6
:
0.5
:
:
:
:
:
2.8
12.51
:
:
0.33
0.12
0.9
0.48
0.14
1.2
0.48
0.21
1.5
0.5
0.23
1.8
0.56
0.26
2.1
0.58
:
2.4
:
:
:
1.49
0.40
5.7
2.7
0.30
:
0.46
3.4
4.6
41.4
0.4
3.6
4.2
42.3
0.41
4.3
4.7
49.8
0.4
4.6
4.7
49.9
0.42
:
4.7
48.9
0.45
:
:
50.6
:
:
:
:
0.72
9.6
4.2
55.9
0.64
12.3
:
39.3
0.79
0.88
0.89
0.9
0.98
1.03
:
2.24
3.45
2012
2017
2020
2021
2022
2023
2024 EU average (1)
USA
:
:
:
:
:
:
:
:
:
:
:
:
:
:
30.84
5.19
60.24
:
:
:
:
30.17
30.16
7.04
62.9
:
:
10.78
72.91
33.17
38.86
13.48
:
:
:
:
0.032
0.0001
0.032
0.022
0.01
0.013
0.065
0.043
0.022
0.091
0.060
0.032
0.600
0.040
0.020
:
:
:
:
:
:
0.204
0.102
0.100
0.251
0.141
0.110
(1) EU average for the last available year or the year with the highest number of country data.
Source:
Eurostat, DG JRC, OECD, Science-Metrix (Scopus database), Invest Europe, European Innovation Scoreboard.
40
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ANNEX 4: MAKING BUSINESS EASIER
Slovakia’s business environment faces
challenges linked to high levels of
administrative and regulatory burden,
requiring further progress in addressing
barriers to remain competitive in the long
term.
Despite several reforms to reduce the
administrative and regulatory burden on
businesses over recent years, significant
challenges persist. The competitiveness of the
Slovak economy has further deteriorated over the
last decade, the country has become less
attractive to foreign investors, and the
consolidation package adopted by the Slovak
parliament in September 2024 poses new
challenges and costs for Slovak businesses.
dominate. Meanwhile, investments in intellectual
property represent less than half and in research
and development only a third of the share of
western EU countries (see the Innovation to
Business Annex).
Availability of skilled staff and uncertainty
about the future remain the main investment
obstacles for businesses.
Slovakia ranks as the
worst for lack of skilled staff (
60
). Businesses’
difficulties in hiring skilled staff have worsened,
with a 10 percentage-point increase in 2024
compared to 2023, resulting in 93% of firms
facing this challenge (against 77% in the EU) (see
the Labour market Annex). Uncertainty about the
future is the second major investment obstacle. In
Slovakia, this issue has grown more pressing in
2024, with 90% of businesses facing uncertainty,
an 8 percentage-point increase on 2023. The
Slovak figure significantly surpasses the EU
average of 79% for 2024.
Slovakia ranks bottom of the Central and
Eastern Europe region (CEE) when it comes to
attracting foreign investments.
The country’s
attractiveness to foreign companies has been the
lowest in the last five years (
61
). While in 2014-
2023 Slovakia received foreign capital at the level
of 1 per cent of GDP per year, the countries of the
CEE region averaged up to 2.5% of GDP (
62
).
Foreign capital has undoubtedly been one of the
main factors in the success of the Slovak economy
in recent decades. Slovakia’s foreign direct
investment rate dropped from 2.1% GDP in 2022
to just 0.1% in 2023.
Slovakia’s payment environment reflects a
mixed landscape, with structural challenges
ongoing.
The business-to-business payment gap
and the gap from the public sector decreased in
2024 compared to 2023 and are below the EU
average. A reform under the Slovak medium-term
fiscal-structural plan, introducing a mandatory e-
invoicing system, could help further reduce late
payments in commercial transactions in
Economic framework conditions
The business environment in Slovakia
remains one of the least favourable in the
EU.
According to the Prosperity and Financial
Health Index (
58
), Slovakia has the worst conditions
for doing business in the EU. Among the factors
behind this unfavourable position are: long-
standing structural problems related to the quality
of education and innovation; increased taxes and a
higher tax wedge for businesses; and an
unpredictable regulatory regime. Underperforming
market capitalisation limits financing for
companies and start-ups, and restricts company
growth (see the Annexes on Innovation to Business
and on Capital markets, financial stability and
access to finance).
Public and private investments face a long-
term structural challenge in Slovakia,
hindering
further
economic
growth.
Investments in Slovakia account for approximately
20% of GDP (
59
), with businesses making almost
two thirds of total investments. This share has not
changed much over the past 15 years. Although
the total share of investments is comparable to
other EU countries, the key distinction lies in their
composition.
Machinery
and
equipment
investments and investments in buildings,
(
58
)
Česká spořitelna, Europe in Data portal and the Institute of
Sociology of the Czech Academy of Sciences:
The Prosperity
and Financial Health Index,
December 2024.
(
59
) National Bank of Slovakia:
Ako
sa banky podieľajú na
financovaní investícií podnikov?.
September 2024.
(
60
) European Investment Bank,
EIB Investment Survey 2024,
based on interviews carried out between April and July 2024.
(
61
) Chambers of Commerce of NL, DE, IT, FR, AT, SE in Slovakia:
Prieskum konjunktúry medzi európskymi investormi v SR,
April 2024.pdf.
(
62
) UniCredit Bank Czech Republic and Slovakia, Weekly Notes
40/2024.pdf.
41
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Slovakia (
63
). However, the share of SMEs
experiencing late payments is higher in Slovakia
(51%) than in the EU overall (47%). Excessive
payment delays in the public health sector create
a considerable barrier for businesses, limiting their
competitiveness and resilience. Despite a Court of
Justice ruling on late payment (
64
), Slovakia has
yet to ensure that its public healthcare authorities
comply properly with the 60-day payment period
for paying suppliers.
Slovakia’s digital infrastructure requires
significant improvement to meet EU targets,
particularly in rural areas.
In 2023, Slovakia
achieved 69.12% Very High-Capacity Networks
(VHCN) coverage, falling short of the EU average
(78.81%) and slightly declining from 71.31% in
2022. While Fiber to the Premises (FTTP) coverage
was in line with the EU average at 64.19%, it also
slightly decreased compared to 2022 (66.89%).
The percentage decrease in VHCN and FTTP
coverage in 2023 is because the number of
households has increased. However, the number of
VHCN connections increased in absolute value by
59099 and FTTP connections by 43429 in 2023.
In rural areas, VHCN and FTTP coverage increased
from 2022, but remained consistently lower than
EU average (at 35% for VHCN and 34.96% for
FTTP, compared to the EU’s 55.64% and 52.72%).
Slovakia’s 5G coverage reached 79% in 2023,
exceeding the 2022 figure (55.34%) but remaining
behind the EU average of over 89.3%. The gap is
particularly wide in rural areas, where 5G coverage
is 46.14%, compared to the EU’s 73.71%. Recent
developments are impacting infrastructure
deployment, including the possibility to install fibre
optic networks on existing poles. The new
construction law will introduce changes aimed at
streamlining processes. While its full impact is still
unclear, the Gigabit Infrastructure Act is expected
to further simplify the rollout of gigabit networks.
Slovak businesses show resilience to ICT
security incidents and a strong focus on
employee awareness, but they fall short of
the EU average in implementing security
measures.
While the share of enterprises
experiencing ICT security incidents due to external
(
63
) EU Payment Observatory:
How electronic invoicing helps
reduce late payments in commercial transactions,
July 2024.
(
64
) On 19 September 2024 the Court of Justice of the European
Union ruled that Slovakia had failed to fulfil its obligations
under the Late Payment Directive (C-412/23).
attacks increased to 2.02% in 2024, from 1.78%
in 2022, it remains below the EU average of
3.43% (
65
). 87.13% of enterprises implemented
ICT security measures, below the EU’s 92.76%,
while 61.44% made their employees aware of
their obligations in ICT security related issues
(above the EU average of 59.97%) (
66
).
Regulatory and administrative
barriers
The complexity of administrative processes
and rapidly changing legislation are the most
significant problems when doing business in
Slovakia.
These areas have been ranked as the
two main issues in Eurobarometer measurements
for the past decade (
67
). Another study (
68
),
monitoring the frequency of amendments to laws
affecting businesses in 2017-2021, indicated that
25 significant business-related laws had been
amended 308 times over the monitored period,
which is almost 62 times per calendar year on
average.
An evidence-based and systematic legislative
process, clear rules on better regulation, and
enhanced policy coordination would create a
more favourable and predictable business
environment.
While in the past, the fast-track
legislative procedure was the exception, over the
past few years it has become standard practice.
The number of legislative proposals bypassing the
standard impact assessment and interservice
consultation increased most between March 2020
and February 2023 (mainly due to the COVID-19
pandemic), reaching 46% of adopted laws (
69
) and
remains still high (between October 2023-
February 2025, it was 37% compared to 16% in
2016-2019). This shift has led to concerns,
including among businesses, that the quality and
thoroughness of legislation is being compromised.
(
65
) Eurostat,
isoc_cisce_ic.
(
66
) Eurostat,
isoc_cisce_ra.
(
67
) Eurobarometer:
Businesses’ Attitudes towards Corruption in
the EU (2013-2023).
(
68
) Slovak Business Agency,
The analysis of the quality of the
regulatory framework and the legislative process, 2022.
(
69
) Ministry of Finance of the Slovak Republic,
Ako_nestrielat_naslepo.pdf,
2023.
42
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Reducing the reliance on fast-track procedures,
improving the quality, setting clear and binding
rules on better regulation and implementing them
effectively, and alleviating the excessive
regulatory burden would enable businesses to
better anticipate and plan investments (see also
the Effective institutional framework Annex). The
new Government Council for Competitiveness and
Productivity (a merger of two similar advisory
bodies) is expected to start operations in the first
half of 2025 and could stimulate dialogue on the
competitiveness of the Slovak economy between
ministries and other key economic and social
stakeholders.
Graph A4.1:
Making Business Easier: selected
indicators.
(1) Regulatory
burden
Regulation as a major
obstacle to investment
24.5
27.3
41.6
EU Trade Integration
61.9
Material shortages as a
factor limiting production
10
10
packages (
70
), 412 measures implemented in
2020-2024 brought EUR 581.3 million in savings
for the business environment. Around 40
legislative proposals are being assessed annually
to prevent gold-plating and 250 ex-post
evaluation are being conducted in order to review
existing
regulations.
Moreover,
adopting
proportionality in regulatory impact assessments
(RIA) and the creation of an IT platform for better
regulation are aimed at streamlining the RIA
processes. Even though the measures have the
potential to build a competitive business
environment, their effects have not yet been
widely perceived by businesses. According to
stakeholders, they have provided only marginal
improvements, often overshadowed by large
legislative packages (e.g. the consolidation
package) adopted without sufficient prior
consultation and impact assessment. This is also
confirmed by the EIB investment surveys (
71
), with
the score for business and labour regulations in
Slovakia significantly deteriorating in 2024
compared to the previous year. The perception of
business regulations as a barrier to investment
worsened among Slovak businesses, with that
view rising from 57% in 2023 to 70% in 2024.
This trend was echoed by labour regulations, which
76% of businesses saw as an obstacle to
investment in 2024, a 16 percentage-point
increase on the previous year.
The government consolidation package
approved by Parliament in October 2024
weighs heavily on business activity and
investments.
Key measures within the package
that have substantially affected the quality of
business environment include a three-point
increase in corporate income tax (for taxable
income over EUR 5 million) to 24%, the highest
corporate tax of any of the Visegrád countries, and
a new financial transaction tax for companies at
0.4% per bank transfer with a maximum of
EUR 40. Slovakia is the only country in the euro
area to have this tax.
While progress has been made in adopting
laws to improve and harmonise insolvency
procedures, additional efforts could be made
to further prevent insolvency for viable
companies.
In Slovakia’s RRP, a set of laws
on
(
70
)
Anti-bureaucratic packages | Improve business environment
(
71
)
EIB Investment Survey 2024, EIB Investment Survey 2023.
(3) Shortages
(2) Single
Market
16.6
(4) Late payments
from public entities
14
47.9
from private entities
51.2
0
10
20
30
40
Share (%)
50
60
70
EU27
SK
Share of (1) enterprises, (2) average intra-EU exports and
imports in GDP, (3) firms, (4) SMEs.
Sources:
(1) EIB IS, (2) Eurostat, (3) ECFIN BCS, (4) SAFE
survey.
Progress has been made in adopting laws to
alleviate regulatory and administrative
burdens on businesses, but additional efforts
are required to further enhance the business
environment.
Over the last few years, Slovakia
has introduced several measures to make
business easier, including under the RRP. Within
the framework of three anti-bureaucratic
43
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insolvency procedures, including early warning
tools, were introduced in 2022 and 2023 to
improve procedures that can be long and costly.
However, according to Eurostat data, the number
of bankruptcies in Slovakia is increasing and was
already higher in the first three quarters of 2024
(86) than for the full year of 2023 (85), with both
higher than the 74 seen in 2022. Many companies
in financial difficulties are still viable and can be
rescued if their problems are identified at an early
stage and if they are assisted in diagnosing their
problems and implementing corrections by
impartial advisors. Slovakia can benefit from
improving its existing early warning mentoring
tools for companies at risk of failure.
in the EU for civil engineers and notaries, the
fourth highest for architects and above the EU
average for lawyers. Reducing regulatory barriers
in professional services can promote market entry
and may foster competition on quality and prices,
as well as productivity increases in the regulated
sectors and across the industries that they serve.
Slovakia could further benefit from the
single market.
Although the country has made
some progress in addressing conformity deficit, it
still has areas for improvement. While the
conformity deficit indicator, measuring the
percentage of all directives transposed incorrectly,
decreased in 2024 (1.1%) compared to 2023
(1.3%), it remains above the EU average in 2024
(0.9%). Slovakia has also performed slightly worse
on the transposition deficit indicator. The
percentage of single market directives not
transposed increased from 0.6% in 2023 to 0.7%
in 2024 though remaining below the 1% threshold
set by the European Council. In addition, in 2024
Slovakia resolved 95.5% of the SOLVIT cases it
handled as lead centre (EU average of 84.9%).
Even though it is above the EU average, this is a
drop from 2023 when it resolved 100% of the
cases. Slovakia has more single market
infringement cases than the EU average (31 vs the
EU average of 24 in 2024), but their duration is
25% shorter than the EU-wide average.
Single market
Slovak businesses demonstrate strong
integration into both the single market and
global value chains.
Slovakia is one of the most
export-oriented economies in the world. It has the
highest integration rate in the EU for goods: the
trade volume of goods represented 55% of its
GDP in 2024 (compared to the EU average of
27%). Traditionally, the EU remains the largest
trading partner for Slovak exporters with a
significant 77.1% of exports directed towards EU
markets (October 2024). Conversely, imports from
EU Member States have also dominated,
accounting for a substantial 63.6% share (
72
). Yet
while Slovakia’s economy has a substantial
comparative advantage in the export of vehicles,
diversifying the economy away from reliance on
one industrial sector and focusing on innovation
and higher added value will be essential for
building a more resilient economy.
In some sectors, market regulations create
barriers to competition and market entry.
At
around 300, Slovakia has the fourth highest
reported number of regulated professions in the
EU (
73
). This presents challenges for individuals
seeking to provide services in Slovakia. The OECD
PMR data (
74
) suggest that restrictions on
regulated professions in Slovakia are the highest
(
72
)
Statistical Office of the Slovak Republic,
December 2024.
(
73
)
European Commission, Regulated professions database,
December 2024
(
74
)
OECD Product Market Regulation, July 2024
Public procurement
The new public procurement procedures have
the potential to both benefit and hinder
businesses.
While the amendment to the Public
Procurement Act, effective from August 2024,
aims to simplify the processes and reduce
administrative burden, it may also further hamper
transparency
and
competition
in
public
procurement, making it easier for favouritism to
occur. One of the most significant changes is the
merger of the 'sub-threshold contract' and 'low-
value contract' categories and the increase in the
threshold for contracts without prior publication
from EUR 10 000 to EUR 50 000. This change may
undermine competition, not only domestically but
also in a cross-border context, risking the
inefficient
use
of
public
money.
The
44
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Eurobarometer analysis (
75
) also suggests that the
perception of corruption in the Slovak business
environment, which was already high, has
undergone one of the highest increases in the EU
over the past year, up 6 percentage points on last
year to 85% of companies stating that corruption
is a widespread problem in Slovakia. Ensuring fair
competition and full transparency in public
procurement will be key to enhancing the
effectiveness and efficiency of government
spending.
(
75
)
Eurobarometer: Businesses‘ attitudes towards
corruption in
the EU, April 2024
45
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Table A4.1:
Making Business Easier: indicators.
Slovakia
POLICY AREA
INDICATOR NAME
2020
Investment climate
Material shortage, firms facing constraints, %
1
Shortages
Labour shortage, firms facing constraints, %
1
Vacancy rate, vacant posts as a % of all
available ones (vacant + occupied)
2
Transport infrastructure as an obstacle to
investment, % of firms reporting it as a major
obstacle
3
Infrastructure
VHCN coverage, %
4
FTTP coverage, %
4
5G coverage, %
4
8.8
13.8
0.7
23.3
23.0
0.7
31.8
27.0
0.9
14.3
26.0
0.9
10.0
25.3
0.9
10.0
20.2
2.3
2021
2022
2023
2024
EU-27
average
7.2
-
-
-
11.1
66.7
62.3
13.8
7.3
71.3
66.9
55.3
13.0
69.1
64.2
79.0
10.9
-
-
-
13.4
78.8
64.0
89.3
Reduction of regulatory and administrative barriers
Impact of regulation on long-term investment,
Regulatory environment
% firms reporting business regulation as a
21.1
22.4
14.1
3
major obstacle
Payment gap - corporates B2B, difference in
14.0
12.8
12.1
days between offered and actual payment
5
Payment gap - public sector, difference in days
16.1
10.2
12.9
between offered and actual payment
5
Late payments
Share of SMEs
experiencing late
payments, %*
6
from public or private
entities in the last 6
months
from private entities
in the previous or
current quarter
from public entities in
the previous or
current quarter
19.2
27.3
24.5
15.5
17.9
55.7
13.0
14.6
-
15.6
15.1
-
50.8
45.6
55.1
-
-
-
-
51.2
47.9
-
-
-
-
14.0
16.6
Integration
Single Market
EU trade integration, % (Average intra-EU
61.6
imports + average intra EU exports)/GDP
2
EEA Services Trade Restrictiveness Index
7
Transposition deficit, % of all directives not
transposed
8
Conformity deficit, % of all directives
transposed incorrectly
8
SOLVIT, % resolution rate per country
8
Number of pending infringement proceedings
8
0.041
1.4
1.1
100
27.0
66.4
0.041
1.4
1.3
100
27.0
73.7
0.041
0.9
1.4
100
29.0
66.1
0.041
0.6
1.3
100
31.0
61.9
0.045
0.7
1.1
95.5
31.0
41.6
0.050
0.8
0.9
84.9
24.4
Compliance
Public procurement
Single bids, % of total contractors**
8
Competition and
transparency in public
procurement
Direct awards, %**
8
26
5
27
3
30
5
33
3
25
4
-
7.0
*Change in methodology in 2024: reporting late payments from public and private entities separately.
**Data on single bids for 2024 is provisional and subject to revision. Due to missing data, the EU average of direct awards data is
calculated without Romania.
Sources:
(1) ECFIN BCS, (2) Eurostat, (3) EIB IS, (4) Digital Decade Country reports, (5) Intrum Payment Report, (6) SAFE survey,
(7) OECD, (8) up to 2023: Single Market and Competitiveness Scoreboard, 2024: Public procurement data space (PPDS).
46
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ANNEX 5: CAPITAL MARKETS, FINANCIAL STABILITY AND ACCESS TO FINANCE
In Slovakia, private investment and public
spending are partially financed by foreign
savings.
While negative, Slovakia’s net
international investment position has continued
to strengthen thanks to strong nominal GDP
growth. Capital markets remain at a very early
stage of development and do not contribute
sufficiently to the financing of Slovak companies.
Retail participation in capital markets remains low,
despite some progress in the level of direct and
indirect household investments. Banks, which
dominate the financial sector, are robust, both in
terms of capital and liquidity. Government bonds
account for a large part of the institutional
investor’s portfolio, but there is a noticeable trend
of diversification through investment funds, in
particular pension funds where amendments to
pension regulations allow for greater investment
diversification. However, the less-developed capital
markets reduce the exit options for private equity
and venture capital investors, further compounding
the lack of funding sources for innovation, a key
element for competitiveness.
Graph A5.1:
Net savings-investment balance
25 % of GDP
20
15
10
5
0
-5
-10
2017
2018
2019
2020
2021
2022
2023
Private investment, net
Private saving, net
Borrowing from the rest of the world
Lending to the government
Private saving, gross
Source:
AMECO
Availability and use of domestic
savings
The growing net private savings of the
Slovak economy have been supporting
domestic private investment and public
finances.
In the last decade, the private savings
ratio, net of fixed capital consumption, fluctuated
around its ten-year average of 4.3% of GDP,
reaching a maximum of 8% in 2014 The net
private investment ratio, which measures the net
contribution of the private sector to capital
accumulation in the country, exhibited a ten-year
average of 3.6% of GDP and reached a maximum
of 5.8% in 2016. During the same period, lending
to the government showed an average deficit
equivalent to 2.9% of GDP. Thus, the slightly
positive balance between net domestic savings
and net investment, together with the substantial
government deficit, resulted in net borrowing by
Slovakia from foreign economies that averaged
2.3% of GDP, with a peak of 9.7% in 2022. Hence,
Slovak private investment and public spending are
partially financed by foreign savings (see Graph
A5.1).
Slovakia has a negative net international
investment position (NIIP) despite some
improvements throughout the last years.
As
of Q3 2024, total assets to foreigners reached
90.8% of GDP, while liabilities to foreigners stood
at 140.5% of GDP, resulting in a net international
investment position (NIIP) equivalent to -49.7% of
GDP (see Graph A5.2). This is an improvement
compared to previous three years, owing to the
strong nominal GDP growth. At the same time, the
net stock of foreign direct investment (FDI) stood
at -39.8% of GDP as of Q3 2024. The net portfolio
investments turned positive to 7.3% of GDP as of
Q3 2024. The net stock of other investments
amounted to -27.4% of GDP. The stock of official
foreign reserve assets increased to 10.1% of GDP
at the end of 2024, compared to 3.6% of GDP at
the end of 2017. Thus, the Slovak economy
appears to be well integrated in international
capital flows, notably as a stable recipient of FDI
and other investments.
Graph A5.2:
International investment position
150
% of GDP
100
50
0
-50
-100
-150
-200
2017
2018
2019
2020
2021
2022
2023
2024-Q3
Foreign Direct Investment, Assets
Other investment, Assets
Foreign Direct Investment, Liabilities
Other investment, Liabilities
Portfolio Investment, Assets
Official reserve assets
Portfolio Investment, Liabilities
NIIP
Source:
ECB
47
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Structure of the capital markets and
size of the financial sector
The Slovak economy has a small domestic
capital market.
The market capitalisation of
listed equity reached 1.5% of GDP by the end of
2023 (see Graph A5.3). Non-financial corporations
(NFCs) accounted for only 26.7% of that
capitalisation. The outstanding volume of debt
securities reached 66.7% of GDP at the end of
2023. Government bonds accounted for almost
69% of the total bonds by 2023.
Graph A5.3:
Capital markets and financial
intermediaries in Slovakia
120
100
80
Non-financial corporations
insurers from other EU Member States) (
76
). The
assets of Slovak mandatory and voluntary pension
funds equated to 14.4% of GDP at end 2023,
which makes pension funds the second largest
segment of the financial system after the banking
sector (see Graph A.3.3). The Slovak pension fund
sector is composed of around five companies
managing 36 pension funds, and with total assets
of EUR 20.2 billion (
77
)
,
(
78
). The total assets of
investment funds accounted for 7.9% of GDP in
2023 (see section on institutional investors). The
investment fund sector is composed of six
domestic asset management companies and two
foreign asset management companies, managing
a total of 93 domestic open-end funds and one
domestic closed-end fund, with total assets of
EUR 10.9 billion (
79
).
% of GDP
MFIs
Resilience of the banking sector
The Slovak banking sector remains resilient,
as it is sufficiently profitable and well
capitalised.
The Slovak banks’ total capital ratio
was 20.3% in Q3-2024 (EU average: 20.1%),
underlining the robustness of the banking sector.
The common equity tier 1 ratio is at 17.7% in Q3-
2024 (EU average: 16.6%). Banking sector
profitability remained healthy despite the
introduction of the bank levy (
80
), with return on
equity of 10.2% in Q3-2024 (EU average: 10%).
This was largely due to higher net interest income,
net fee and commission income, and a year-on-
year decrease in net provisioning (
81
). Since 1
August 2023, the National Bank of Slovakia (NBS)
maintained the countercyclical capital buffer
(CCyB) at 1.5% in view of the risks present in the
household and commercial real estate sectors (
82
).
The NBS has also introduced several borrower-
(
76
) NBS, 2024.
Statistical Bulletin, Q3-2024,
p.7.
(
77
) NBS, 2024.
Statistical Bulletin, Q3-2024,
p.7.
(
78
) NBS, 2024.
Financial sector analytical data.
(
79
) NBS, 2024.
Statistical Bulletin, Q3-2024,
p.7.
(
80
) In 2024, banks will pay 30%
super tax on profits
in the form
of a levy, bringing the effective tax rate to almost 45% in
2024. This bank levy is then set to fall 5% per year to 15%
in 2027, before being eliminated in 2028. See
NBS, Financial
Stability Report, May 2024,
p.36.
(
81
) NBS, 2024.
Macroprudential Commentary, Dec. 2024,
p.4.
(
82
) NBS, 2024.
Financial Stability Report, May 2024,
p.8.
Financial corporations
Insurance corporations
60
40
Insurance and pension funds
Non-financial corporations
Government
20
0
Listed equity
Bonds
Other financials
Assets by sector
Source:
ECB, EIOPA, AMECO.
Even though the financial sector in Slovakia
remains dominated by banks, non-bank
financial intermediaries are growing as well.
The banking sector is the largest segment of the
financial services, accounting for 99.8% of GDP in
2023, which remains however significantly below
the EU average of 253.4%. The foreign-owned
banks accounted for 87.4% of total banking sector
assets in 2023. The banking sector also has a very
high level of concentration with the top five
monetary financial institutions (MFIs) representing
77.1% the sector in 2023 (EU average: 51.1%).
The insurance sector assets accounted for only
4.4% of GDP at end-2023 (EU average: 54.8%).
The insurance market is composed of 26
undertakings, out of which nine are domestic
insurance corporations with total assets EUR 5.8
billion (the rest are branches of insurers or
Investment funds
Pension funds
MFIs
48
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based measures to limit potential risks of real
estate developments on the banking sector (
83
).
Slovak banks’ aggregate Minimum Requirement
for Own Funds and Eligible Liabilities (MREL) rate
stood at 32.1% of risk weighted assets at end-
2023 (
84
). As of 1 January 2024, all banks in
Slovakia meet their final MREL targets against an
average MREL binding target (including CBR) of
27.9% TREA (including CBR) (
85
). Slovakia has not
yet published information on its national bail-in
mechanic in line with EBA guidelines (
86
).
The banking sector continues to have a
robust liquidity position.
The structural net
stable funding ratio (NSFR) was 132% in Q3 2024,
slightly declining from 134% in Q2 2024 (
87
). The
liquidity coverage ratio (LCR) was at 194% in
October 2024 (
88
).
The sector’s overall liquidity
position has strengthened since the end of the
first half of 2024, largely because growth in stable
sources of funding, specifically deposits and bond
issuances, has been stronger than loan growth.
This has contributed to the ongoing slow decline in
the ratio of loans to deposit and bond liabilities
(
89
). The repayment of a large part of the
remaining
targeted
long-term
refinancing
operations (TLTROs) in individual banks at the end
of the Q1 2024 did not threaten the liquidity
position (
90
).
The non-performing loans (NPL) ratio in the
Slovak banking sector remains low.
The
overall NPL was at 1.9% in Q3 2024, in line with
the EU average, while the NPL ratio for NFCs was
2.5%, below the EU average (3.5%) and for
households was 1.9%, below the EU average
(2.2%). Similarly, the coverage ratio of NPLs was
61.5% in Q3 2024 (EU average: 42.1%), which
reflects banks’ ability to absorb future losses. The
share of Stage 2 loans in the total portfolio was
9.8% in October 2024 (up from July 2024: 9.3%)
(
83
) European Commission, 2024,
In-depth review: Slovakia.
(
84
) EBA
MREL Dashboard - Q4 2023,
p.13.
(
85
) EBA
MREL Dashboard - Q4 2023,
p.13. CBR (Combined
Buffer Requirement) and TREA (Total Risk Exposure Amount)
(
86
) EBA,
Guidelines to resolution authorities on the publication of
their approach to implementing the bail-in tool.
(
87
) NBS, 2024.
Macroprudential Commentary, Dec. 2024,
p.4.
(
88
) NBS, 2024.
Macroprudential Commentary, Dec. 2024,
p.4.
(
89
) NBS, 2024.
Macroprudential Commentary, Dec. 2024,
p.4.
(
90
) NBS, 2024.
Financial Stability Report, May 2024,
p.43.
and the coverage of provisions was 5.3% (down
from July 2024: 5.5%) (
91
). From a financial
stability perspective, the slight increase in the
share of Stage 2 loans does not represent a
significant risk, since it followed several months of
substantial declines and affected only a few banks
(
92
). Although NPL ratios are showing signs of
deterioration in the commercial real estate (CRE)
portfolio, their level remains low (
93
).
Despite recent substantial changes, the
Slovak Anti-Money Laundering/Combating the
Financing of Terrorism (AML/CFT) framework
requires additional improvements.
Slovakia
has agreed to amend its main AML/CFT Act by the
end of 2024 to address the Commission’s
concerns. Similarly, following 2022 AMLD IV
Slovakia Final Report Slovakia has compliantly
reported
on a 6-month basis - about the
necessary actions to remediate identified
weaknesses. Furthermore, in December 2024
Moneyval had concluded that progress was not
sufficient to justify an upgrade for three of the
Financial
Action
Task
Force
(FATF)
recommendations. In particular, recommendations
n°8 and n°15 are relevant for the Commission: (i)
lacking supervision over Non-profit organizations
(NPOs) and (ii) non-compliance with the definition
of Virtual Assets Services Provider (VASP) activities
provided under FATF, coupled with the absence of
framework for Travel
Rule’s application, and
lacking monitoring regarding targeted financial
sanctions applied to VASPs. In addition, remaining
concerns
regarding
beneficial
ownership
information obligations for trusts and similar legal
arrangements, and fit and proper’s requirements,
in particular, appear to call for additional
clarification.
Resilience of the non-bank financial
intermediaries
Slovakia’s insurance sector is profitable and
solvent.
According to the National Bank of
(
91
) NBS, 2024.
Macroprudential Commentary, Dec. 2024,
p.4.
(
92
) NBS, 2024.
Macroprudential Commentary, Dec. 2024,
p.4.
(
93
) NBS, 2024.
Financial Stability Report, Nov. 2024,
p.44.
49
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Slovakia (NBS), the insurance sector’s aggregate
profit for the first half of 2024 reached EUR 149
million (annualised, an 18.4% increase compared
with 2023) (
94
). Nearly all major profit components
contributed to this growth, except for non-life
business (
95
). The Solvency Capital Requirement
ratio was at 192% in June 2024, against an EU
average of 258.6% (
96
).
According to EIOPA’s 2024
dashboard, there is a considerable insurance
protection gap for floods in Slovakia that should
be monitored (
97
),
The Slovak pension (second pillar and third
pillar) fund and investment fund sectors
have seen strong asset growth.
The total
volume of assets increased by EUR 3.7 billion to
more than EUR 30 billion in 2024. In sectoral
terms, growth was the highest in the second
pension pillar (EUR 2.1 billion), followed by the
investment fund sector (EUR 1.1 billion) and the
third pension pillar (EUR 0.5 billion) (
98
). The growth
trend in the second pension pillar may have been
further augmented by a recent law change
requiring the switching of some savers’ assets
from bond pension funds to index pension funds
(
99
).
at the end of 2023, bank finance through loans
constituted 39.5% of all funding sources for
Slovak NFCs, which was more than the EU average
of 27.2%. Listed shares and bonds represented
only 2.6% of funding sources, which was a much
smaller share than the EU average of 23.8%.
Slovak businesses rely mostly on internal
financing, as do their peers in the EU.
According to the 2024 EIB Investment Survey, the
investment needs of 66% of Slovak firms’ re
covered by internal funding, equivalent to the EU
average of 66% (
100
). At the same time, 82% of
Slovak firms believe that their investment
activities over the last three years were sufficient
(close to the EU average of 80%), suggesting that
there is no material financing gap relative to
investment demand (
101
). However, this may not be
the case for firms with no or limited capacity for
internal funding, such as innovative start-up firms
(see further below).
Credit growth has been on a general
downward path for NFCs due to weak
demand and an uncertain economic outlook.
For NFCs, the annual credit growth rate in the
corporate loan portfolio fell to -2.5% in Q3-2024.
Although corporate lending has also slowed in
other EU countries, the trend is far more
pronounced in Slovakia, partly because the country
previously experienced higher cyclicality in
corporate lending (
102
). According to the October
2024 bank lending survey conducted by the NBS,
banks do not expect any notable turnaround in
corporate lending in the near term due to elevated
interest rates (even if rates have fallen to some
extent recently). Lending activity is higher among
smaller firms than larger due to their reliance on a
different internal financing structure (
103
).
Sources of business funding and the
role of banks
Firms in Slovakia rely more than the EU
average on funding from banks and far less
than the EU average on capital markets.
In
2023, the overall level of non-financial corporation
(NFC) funding in Slovakia was equivalent to 98.7%
of GDP, which is substantially lower than the EU
average of 230.3% of GDP (see Graph A5.4).
When looking at NFC funding sources in Slovakia,
(
94
) NBS, 2024.
Financial Stability Report, Nov. 2024,
p.56.
(
95
) Non-life insurance includes motor insurance, motor third
party liability (MTPL) insurance, property insurance,
reinsurance.
(
96
) NBS, 2024.
Financial Stability Report, Nov. 2024,
p.57.
(
97
) EIOPA, 2024.
Dashboard on Insurance Protection for Natural
Catastrophes in a Nutshell.
(
98
) NBS, 2024.
Financial Stability Report, Nov. 2024,
p.60. The
relative growth rate in both the second and third pension
pillars was 15%, while the rate in the investment fund sector
was a slightly lower 12%.
(
99
) NBS, 2024.
Financial Stability Report, Nov. 2024,
p. 61.
(
100
) EIB, 2024,
2024 EIB Investment Survey,
p.29.
(
101
) Ibid, p.7.
(
102
) NBS, 2024,
Financial Stability Report-Nov 2024
, p.27.
(
103
) Ibid, p.29.
50
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Graph A5.4:
Composition of NFC funding as % of
GDP
250
200
put forward a number of measures to modernise
the capital market infrastructure. Moreover, in
2023 the Slovak Business Association prepared an
analysis on how to promote alternative forms of
raising capital for SMEs (
107
).
Slovak households have a low savings rate,
with a high share of cash and deposits in
households’ assets, which implies that there
is scope to further increase the level of
direct or indirect retail investments.
Further
encouraging the build-up of universal funded
supplementary pension schemes would positively
contribute to (i) the sustainability and adequacy of
pension benefits; (ii) investment in equity; (iii)
access to finance; (iv) growth; and (v)
innovation. Slovak households have a stronger-
than-average holding of cash and deposits, which
accounts for 52.1% of household assets compared
to the EU average of 32.3%. In 2023, 37.5% of
households’ financial assets were
held in pension
and investment funds or held directly in financial
investment instruments (
108
), but this still falls
short of the EU average of 45.4% (see Graph
A5.5). In Slovakia, direct and intermediated retail
investment by households was 41.9% in 2023 (EU
average: 56.2%) (
109
).
Recent policy initiatives are aimed at
boosting the level of retail participation.
The
Slovak government is scheduled to launch two
government bond issuances for retail users during
the first half of 2025 (with maturities up to five
years). A wider review of the incentives in place to
promote retail participation in financial markets
may also be warranted.
% of GDP
150
100
50
0
SK
Loans
Trade credit and advances
EU
Bonds
Listed shares
Unlisted shares
Other equity
(1) Reference period 2023
Source:
Eurostat
As a result of falling interest rates and
shifting prospects in the housing market,
demand for mortgages has picked up, albeit
modestly for now.
Most banks anticipate a
further increase in mortgage demand in the
coming months (
104
). For households, the annual
credit growth rate for adjusted loans was 3.3% in
Q3-2024.
Capital markets and the participation
of retail investors
Slovakia’s capital markets remain under-
developed.
The main stock exchange in Slovakia
is the Bratislava Stock Exchange (BSSE). The use
of equity by SMEs is very low, as only 2% of SMEs
indicated in the 2023 SAFE survey that equity was
relevant for them, compared to an EU average of
10.1% (
105
).
In the past, Slovakia prepared a concept
report on the development of capital
markets, but this has not been updated.
In
April 2014, the Ministry of Finance, together with
the Ministry of Economy, the NBS, the BSSE and
the Central Securities Depository of the Slovak
Republic (CDCP), developed a concept report for
the development of the capital markets (
106
), which
(
104
) NBS, 2024,
Financial Stability Report-Nov 2024
, p.18.
(
105
) European Commission, 2023,
Data and Surveys-SAFE,
Results by country, T27.
(
106
) Ministry of Finance of the Slovak Republic, 2014,
Concept for
the development of capital market.
(
107
) BSA, 2023, Alternative forms of raising capital for SMEs
through the capital markets.
(
108
) The breakdown: insurance and pension funds 21.8%,
investment funds 10.8%, bonds 4.1%, listed shares 0.7%
(
109
) European Commission, 2024,
Overview of CMU Indicators
2024 Update,
Indicator 22.
51
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Graph A5.5:
Composition of household financial
assets per capita and as % of GDP
90
80
70
60
50
40
200
150
100
250
30
20
10
0
SK
EU
SK
EU
per capita (000 EUR) (lhs)
% of GDP GDP (rhs)
50
0
Currency and deposits
Investment funds
Listed shares
Other equity
Insurance and pension funds
Bonds
Unlisted shares
HH Debt (liability)
(1) Reference period 2023
Source:
Eurostat
recent pension system reform.
Investment
fund shares accounted for 62.4% of the total
assets held by pension funds as of Q3-2024 (
113
).
Debt securities are the second largest investment
asset held by pension funds at 29.4%, while bank
currency and deposits account for 6.2% and
equities account for 1.5% of their total assets. The
trend towards reliance on investment funds may
be due to the recent legal change for pillar II,
which supports the switch from bond to index
pension funds (a type of equity fund) on a phased
basis according to the saver’s age, with these
funds offering potentially higher returns and
carrying a corresponding higher level of risk (
114
).
‘Overall, a better developed pensions sector could
help develop the domestic capital market.
The participation of domestic institutional
investors in providing funding for start-ups
and venture capital investors is low.
A 2024
paper by think tank CEP showed that pension
funds in Croatia, Slovakia, and Slovenia accounted
for only 6% of private equity and venture capital
funds raised annually between 2007-2023, a
figure that falls substantially short of the 19% for
the Baltic states or 20% shares for Nordic Member
States (
115
). In this regard, over time, revised limits
for pension funds to invest in private equity and
venture capital funds could help to facilitate more
funding for Slovak startups.
Recent policy action may facilitate a shift
towards
more
dynamic
investment
strategies.
These measures include:
On 1 January 2023, a pension system reform
took place that introduced changes to pillar
II of the Slovak pension system.
First-time
workers under the age of 40 were enrolled
automatically (with the option to opt-out after two
years), and the default investment option was
changed from guaranteed-return bond funds to
index funds unless otherwise selected by the new
participant. All participants will gradually move to
guaranteed bond funds from the age of 54 (
116
).
The role of domestic institutional
investors
The Slovak fund management industry is
quite small, with rising demand in investment
funds.
In Q3-2024, the largest portion of total
assets was allocated to investment funds (39.1%),
followed by stocks (24.4%), bonds (18.2%) and
deposits and loan claims (16.4%) (
110
). This trend
towards investment funds may be a result of a
recent pension system reform.
The Slovak insurance sector has an
investment portfolio that is mostly
composed of bond holdings, and cash and
deposits.
By mid-2024, the insurance sector
portfolio held most assets in government bonds, at
34% (EEA as a whole: 19%) (
111
), followed by
corporate bonds at 26.1%, and cash and deposits
at 5.3%. Investment funds accounted for 23.9% of
insurers’ investment portfolio (of which 52.6% is in
equity funds and 0.1% in private equity
funds) (
112
). Equity accounted for 4.6% of the total
assets of the insurance sector.
The domestic pension fund industry has an
investment profile that relies more on
investment funds than bonds, owing to a
( ) ECB, 2024,
Euro-Area Investment Funds,
Q3-2024.
110
(
113
) ECB, 2024,
Euro-Area Pension Funds, Q3-2024.
(
114
) NBS, 2024,
Financial Stability Report
Nov. 2024,
p.61.
(
115
) ECMI, 2024,
Closing the gaping hole in the capital market for
EU start-ups
the role of pension funds,
p.2.
(
116
) NBS, 2024,
Financial Stability Report
Nov. 2024,
p.61.
(
111
) EIOPA, 2024,
Insurance Statistics.
(
112
) EIOPA, 2024,
Insurance Statistics.
52
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Table A5.1:
Financial indicators
2017
Total assets of MFIs (% of GDP)
Common Equity Tier 1 ratio
Total capital adequacy ratio
Overall NPL ratio (% of all loans)
NPL (% loans to NFC-Non financial corporations)
NPL (% loans to HH-Households)
NPL-Non performing loans coverage ratio
Return on Equity
1
2018
90,8
15,5
17,8
3,2
4,0
3,4
69,8
9,3
20,5
40,5
6,4
10,7
5,3
0,00
28,4
0,03
0,00
-
3,7
0,2
7,3
19,0
7,1
2019
91,5
15,8
18,0
2,9
3,5
3,0
68,7
8,3
20,3
41,7
4,2
8,5
2,9
0,00
27,5
0,04
0,02
-
3,9
0,4
7,4
19,6
7,3
2020
99,2
16,8
19,3
2,5
3,4
2,6
68,4
5,3
20,8
44,4
4,3
6,6
2,8
0,00
24,7
0,02
0,02
-
3,9
0,5
7,7
19,9
7,5
91,4
16,2
18,6
3,7
4,9
3,8
65,6
9,3
20,7
38,6
7,8
12,4
5,3
0,00
29,8
0,01
0,00
-
3,3
0,6
7,5
19,4
7,8
25-27
2021
104,6
16,7
19,4
2,0
2,8
2,2
71,1
8,4
20,0
44,7
6,0
9,1
2,0
0,00
23,6
0,05
0,02
-
3,3
0,7
9,1
20,8
6,0
2022
103,5
16,8
19,5
1,7
2,3
1,8
69,4
9,4
20,7
45,7
9,8
10,0
1,8
0,00
21,7
0,02
0,02
-
3,7
0,6
9,3
21,0
4,8
2023
99,8
17,3
20,1
1,8
2,5
1,9
60,1
11,5
18,9
42,6
2,8
3,8
1,5
0,00
20,4
0,03
0,01
45,0
4,1
0,7
10,8
21,8
4,4
14,4
2024-Q3
92,8
17,7
20,3
1,9
2,5
1,9
61,5
10,2
17,5
41,0
-2,5
3,3
1,7
-
-
-
-
-
-
-
-
-
4,1
15,5
EU
248,4
16,6
20,1
1,9
3,5
2,2
42,1
10,0
30,0
44,5
0,8
0,7
69,3
0,05
49,6
0,41
0,05
45,5
2,7
4,8
10,0
27,8
54,8
23,4
Banking sector
Non-banks sector
Loans to NFCs (% of GDP)
Loans to HHs (% of GDP)
NFC credit annual % growth
HH credit annual % growth
Stock market capitalisation (% of GDP)
Initial public offerings (% of GDP)
Market funding ratio
Private equity (% of GDP)
Venture capital (% of GDP)
Financial literacy (composite)
Bonds (as % of HH financial assets)
Listed shares (as % of HH financial assets)
Investment funds (as % of HH financial assets)
Insurance/pension funds (as % of HH financial assets)
Total assets of all insurers (% of GDP)
Pension funds assets (% of GDP)
11-17
1-3
4-10
18-24
-
-
12,4
13,9
15,1
13,6
Colours indicate performance ranking among 27 EU Member States.
(1) Annualised data.
Credit growth and pension funds EU data refers to the EA average.
Source:
ECB, ESTAT, EIOPA,
DG FISMA CMU Dashboard,
AMECO.
As a way of promoting wider participation in pillar
III of the pension system, the government
gradually lowered the maximum annual
management fees of supplementary pension
companies from 1.20% of the pension fund assets
in 2024 to 1% in 2025.
venture capital (VC) and private equity (PE) activity
in Slovakia, there is a financing gap for early-stage
innovative firms in need of capital.
There are some initiatives in place to
promote start-up funding.
For instance, there is
a crowdfunding platform available to enable some
businesses to access venture and growth capital
but the financial offer is limited. The NBS has
established an innovation hub and a regulatory
sandbox to facilitate innovation in financial
services. However, there is no comprehensive legal
framework to facilitate the creation and growth of
start-ups. Further measures to promote and
facilitate initial public offering (IPO) activity could
also improve the ability of successful start-ups to
scale-up, while offering an attractive exit option to
VC and PE investors.
The depth of available venture and
growth capital
The domestic venture and growth capital
market is not developed enough to meet the
financing needs of innovative firms.
The value
of annual private equity relative to nominal GDP
increased from 0.02% in 2022 to 0.03% in 2023
(EU average: 0.41%) (
117
), which is among the
lowest in the EU. The value of annual venture
capital investment relative to nominal GDP
dropped from 0.02% in 2022 to 0.01% in 2023
(EU average: 0.05%) (
118
). Given the limited
(
117
) European Commission, 2024,
Overview of CMU Indicators
2024 Update,
Indicator 11
(
118
) European Commission, 2024,
Overview of CMU Indicators
2024 Update,
Indicator 16.
Financing the green transition
The financing needs of Slovakia’s green
transition may pose a challenge.
The Slovak
government has already prioritised the transition
to a greener economy in its recovery and resilience
plan (RRP), and allocates over half of the total RRP
53
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funding to support this transition (
119
). The
financial sector can also help the transition to a
green, low-carbon and climate resilient economy
by scaling up capital directed towards low-carbon
activities. In Slovakia, the issuance of bonds with
environmental, social, and governance objectives
as a share of total bond issuance was very low in
H1
2024 at around 3% (Slovakia’s three-year
average: around 5%) and is very low compared to
most of its EU peers (
120
).
Ministry as well as by universities, business
entities and non-profit organisations.
Financial literacy
Although financial literacy in Slovakia has
improved over the years, more can be done in
terms of depth of knowledge for retail
investors and SMEs.
Financial literacy is crucial
to promote retail-investor participation in capital
markets but also to familiarise SMEs with
alternatives to bank financing. The July 2023
Eurobarometer survey shows that only 20% of
Slovaks have a high level of financial literacy, 63%
a medium level, and the remaining 17% a low
level, compared to the EU average of 18% for high
literacy, 64% for medium, and 18% for low (
121
).
This leads to an overall financial literacy indicator
(the average of the financial knowledge and
financial behaviour indicators) of 45% vs an EU
average score of 45.5% (
122
).
In Slovakia, recent initiatives have sought to
improve financial literacy.
The Ministry of
Education prepared the national financial literacy
standard (NSFL), which entered into force on 1
September 2017. The NSFL focuses on topics such
as financial responsibility, money protection, credit
and debt, savings and investment, risk
management and insurance, etc. In addition to the
NSFL, many other activities aimed at increasing
financial literacy in Slovakia are now being
developed by the NBS (
123
) alongside the Finance
(
119
) European Commission, 2024,
RRP Scoreboard.
(
120
) AFME, 2024,
CMU Key Performance Indicators,
p.23.
(
121
) European Commission, 2023,
Flash Eurobarometer Survey -
Monitoring the level of financial literacy in the EU - July
2023,
p.17.
(
122
) European Commission, 2024,
Overview of CMU Indicators
2024 Update,
Indicator 27.
(
123
) NBS, 2019,
The NBS
financial literacy support strategy.
54
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ANNEX 6: EFFECTIVE INSTITUTIONAL FRAMEWORK
Slovakia’s institutional framework influences
its competitiveness.
Slovakia faces many
challenges
with
regulatory
governance,
effectiveness and strategic potential of
investments, and absorption of EU funds.
Effectiveness of justice and the anti-corruption
framework have not increased. Slovakia would
benefit from reducing administrative burdens,
improving the quality and predictability of the
legislative and regulatory environment, increasing
the professionalism of the civil service and making
it more attractive as an employer. A reform of the
local governance structure may also be warranted
to address structural challenges in implementing
viable investment projects and absorbing EU
funds.
30%) (
124
). Overall, the perceived quality of
government remains below the EU average and
has deteriorated slightly (
125
). The structural
weakness of local government remains. 84% of
municipalities have less than 2000 inhabitants
and only 2% have more than 20,000 inhabitants.
The high fragmentation and limited capacity of
municipalities lead to regional disparities in
delivery of services and management of
investments (
126
). The underfunding of local
government was aggravated in recent years by the
transfer of new responsibilities from the central
level. The government plans to set up centres for
shared services in municipalities within the least
developed regions. Efforts to encourage inter-
municipal cooperation however face barriers (
127
).
Graph A6.2:
Indicators of Regulatory Policy and
Governance (iREG)
4.0
3.5
Public perceptions
Graph A6.1:
Trust in justice, regional / local
authorities and in government
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
Autumn
Spring
Autumn
Autumn
Autumn
Autumn
Autumn
Autumn
Summer
Summer
Autumn
Winter
Spring
Spring
Spring
Spring
Winter
Spring
Spring
3.0
2.5
2.0
1.5
1.0
0.5
0.0
Primary laws Subordinate Primary laws Subordinate Primary laws Subordinate
regulations
regulations
regulations
SK_Stakeholder
engagement
SK_Regulatory Impact
Assessment
SK_Ex-post evaluation of
legislation
Methodology
Transparency
2021
Systematic adoption
Oversight and quality control
EU-27
0
2014 2015
2016
2017
2018
2019 2020 2022
2023
2024
Justice, legal system EU27
Justice, legal system SK
Regional or local public authorities EU27
Regional or local public authorities SK
Government EU27
Government SK
Source:
OECD (2025), Regulatory Policy Outlook 2025 and
Better Regulation across the European Union 2025
(forthcoming).
(1) EU-27 from 2019; EU-28 before
Source:
Standard Eurobarometer surveys
Trust in public institutions is below the EU
average.
Trust in local authorities has seen a
significant increase and ranks higher than central
government and the judiciary (GraphA6.1). In
Slovakia, 60% of citizens believe that reducing
bureaucracy would enhance trust in public
administration (compared to the EU's 52%), 42%
prefer easier interactions with the administration
(compared to the EU's 28%), and 37% desire
better-skilled civil servants (compared to the EU's
(
124
)
Understanding Europeans’ views on reform needs
- April
2023 - - Eurobarometer survey,
Country Fact Sheet.
(
125
)
Inforegio - European Quality of Government Index
(
126
)
Švikruha M, Bardovič J. Malé Obce A Problém Poskytovania
Vybran�½ch Služieb: Prípad Slovenska. Central European
Papers. 2024;12(1):39-62. Doi: 10.25142/Cep.2024.003.
(
127
)
J. Nemec, Nikoleta Jakuš Muthová, Beáta Mikušová
Meričková, 2023, Barriers to inter-municipal
cooperation
55
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Table A6.1:
Slovakia. Selected indicators on administrative burden reduction and simplification
Ex ante impact assessment of legislation
When developing new legislation, regulators are
required to …
Ex post evaluation of legislation
Is required to consider the consistency of regulations
and address areas of duplication.
Is required to contain an assessment of administrative
burdens.
Is required to contain an assessment of substantive
compliance costs.
Compares the impact of the existing regulation to
alternative options.
Periodic ex post evaluation of existing regulations is
mandatory.
Government uses stock-flow linkage rules when
introducing new regulations (e.g., one-in one-out).
A standing body has published an in-depth review of
specific regulatory areas in the last 3 years.
In the last 5 years, public stocktakes have invited
businesses and citizens to assess the effectiveness,
efficiency, and burdens of legislation.
Identify and assess the impacts of the baseline or
‘do nothing’ option.
Identify and assess the impacts of alternative non-
regulatory options.
Quantify administrative burdens of new
regulations.
Quantify substantial costs of compliance of new
regulations.
Assess macroeconomic costs of new regulations.
Assess the level of compliance.
Identify and assess potential enforcement
mechanisms.
Yes / For all primary laws
For major primary laws
For some primary laws
No / Never
(1) This table presents a subset of iREG indicators focusing on regulatory costs. The indicators refer to primary legislation.
Source:
OECD (2025), Regulatory Policy Outlook 2025 [https://doi.org/10.1787/56b60e39-en] and Better Regulation across the
European Union 2025 (forthcoming)
Quality of legislation and regulatory
simplification
Despite a generally well-defined formal
framework for regulatory governance, its
implementation remains ineffective.
Impact
assessments are conducted for draft primary and
secondary legislation, with a focus on
administrative burdens. Despite of efforts to
strengthen analytical capacity, ministries still
struggle to assess wider social and economic
impacts (
128
). Also, the quality of impact
assessments is often limited, and enforcement is
ineffective. In 2023, more than half of the impact
assessments of draft laws presented to the
legislative council of the government received a
negative opinion (
129
). However, as these opinions
are not binding, the effectiveness of the rules is
marginal. Trainings on better regulation rules have
been initiated. These cover topics as gold-plating
and the “one in, two out” principle and could help
improve the quality of impact assessments (
130
). At
the same time, the regulatory governance
procedures are not obligatory for the parliament,
which affects the quality of legislation. In 2023,
53% of the legislative initiatives were tabled by
members of the parliament (
131
). The lack of
effective rules and their enforcement also has a
strong impact on the business environment (Annex
4).
The swift adoption of legislation in recent
years has negatively impacted its quality.
There is a tendency to divert from the standard
procedure and adopt laws without proper impact
assessment or parliamentary oversight. As a
result, public consultations and stakeholder
involvement remained limited (
132
).
(
130
)
Opatrenie Ex post | Podnikateľské prostredie | MHSR
(
131
) Staronova K, Lacková N, data] Sloboda M. Post-crisis
Emergency Legislation Consolidation: Regulatory Quality
Principles for Good Times Only?
European Journal of Risk
Regulation.
2024;15(3):637-655. doi:10.1017/err.2023.69
(
132
) See the
2024 country-specific chapter for Slovakia of the
Rule of Law Report.
(
128
) OECD Regulatory Policy Outlook 2025.
(
129
)
V�½ročná Správa Stálej Pracovnej Komisie Legislatívnej Rady
Vlády Sr Na Posudzovanie Vybran�½ch Vplyvov Za Rok 2023
56
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Social dialogue
Although social dialogue in Slovakia
experienced challenges during the Covid-19
pandemic, it returned to its usual practice
afterwards.
Social dialogue in Slovakia is
institutionally anchored in bodies like the tripartite
Economic and Social Council, which comprises
representatives from the government, employers'
organisations, and trade unions. As an advisory
body to the government, the Council discusses
legislative proposals and provides a platform for
dialogue on various issues related labour market
and employment regulations, minimum wages, or
social protection. The Council adopts only non-
legally binding recommendations. The social
partners play a crucial role in forecasting skills for
the labour market (through the Alliance of Sectoral
Councils) (
133
).
The government has signed up to supporting
social dialogue and collective bargaining,
especially its
quality and
employee
participation in decision-making.
In August
2024, the government and the social partners
signed a declaration on the development of social
dialogue in Slovakia. Nevertheless, challenges
remain especially in the private sector. Especially
in small businesses, the absence of union
organisation persists. With the use of targeted
support from ESF+, the Ministry of Labour
launched a national project in June 2023 aimed at
supporting social dialogue. The project´s budget is
EUR 23 million, channelled through the Alliance of
Sectoral Councils to the social partners.
take longer than the EU average to award
procurement contracts (122 days from the
deadline to submit offers in Slovakia vs 99 days in
the EU-27). This contributes to uncertainty for
companies. Moreover, the B-READY indicators (
134
)
show great potential for cutting the time needed
to obtain a building permit and an environmental
licence, as well as the time needed to draft, file
and pay and to complete a generic tax audit.
According to a report monitoring implementation
of the Commission Recommendation and Guidance
on faster permit-granting procedures for
renewable energy and related infrastructure
projects (
135
), there is clearly scope for further
aligning national practices in Slovakia with the
guidance, to support faster and shorter procedures
for the licensing of renewable energy projects.
Lastly, while the OECD product market regulation
indicator shows that while Slovakia´s licensing
system is less burdensome than the EU average,
there is still some room for adopting best
practices. For example, while the government
keeps an up-to-date online inventory of all the
permits and licences required/issued to businesses
by public bodies, there is no requirement for the
government to regularly review it and assess
whether such licences and permits are still
required or should be withdrawn (see also Annex
4).
Digital public services
Slovakia is approaching the EU average in
providing digital public services to citizens
and businesses
(table A6.2). On digital public
services for citizens, Slovakia scores 72/100,
against the EU average of 79/100. For availability
of digital public services for businesses, Slovakia
scores 79/100 (against an EU average of 85/100).
To advance in this area, Slovakia is working on
digitalising its company register (
136
). Slovakia has
(
134
) World Bank. 2024. Business Ready 2024. Washington, DC:
World Bank. doi:10.1596/978-1-4648-2021-2.
(
135
) European Commission: Directorate-General for
Energy,
Monitoring the implementation of the Commission
recommendation and guidance on speeding up permit-
granting procedures for renewable energy and related
infrastructure projects
Final report,
Publications Office of
the European Union, 2025,
link.
(
136
)
National reform programme 2024
Efficiency of selected administrative
procedures
Selected indicators point to Slovakia’s
public
administration taking longer than average to
complete procedures.
For example, public buyers
(
133
) For an analysis of the involvement of
Slovakia’s
social
partners at national level in the European Semester and the
Recovery and Resilience Facility, see Eurofound (2025),
National-level social governance of the European Semester
and the Recovery and Resilience Facility.
57
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Table A6.2:
Digital Decade targets monitored through the Digital Economy and Society Index
Slovakia
2022
Digitalisation of public services
Digital public services for citizens
1
Score (0 to 100)
EU-27
2024
72
2023
2023
67
2022
2024
79
2023
Digital Decade
target by 2030
EU-27
100
2030
100
2030
100
2030
65
2021
2
3
Digital public services for businesses
Score (0 to 100)
75
2021
78
2022
79
2023
85
2023
79
2023
Access to e-health records
Score (0 to 100)
na
2021
42
2022
66
2023
Source:
State of the Digital Decade report 2024d
made considerable progress as regards access to
electronic health records (from 42% in 2022 to
66% in 2023) but is still considerably below the
EU average (79%).
Slovakia is advancing towards seamless,
automated exchange of authentic documents
and data across the EU.
It has developed the
necessary infrastructure and is beginning the
process of connecting the first authorities to the
Once-Only Technical System (
137
). As part of its
RRP, Slovakia is working to consolidate access to
services via the central government portals and to
increase the online delivery of life events. Specific
programmes have been put in place increase
digital skills of elderly and marginalised groups.
The share of e-government users is relatively
high in Slovakia (80.5%), above the EU
average of 75%.
Yet the use of eID to access
public services (8%) remained considerably lower
than the EU average (36.1%). Only 2% of eID
users are estimated to have accessed their
electronic health records, pointing to a need for
increased awareness about the service (
138
).
Slovakia has also not yet set up and notified eID
schemes for legal persons under the eIDAS
Regulation (
139
). This means that Slovak businesses
cannot authenticate themselves to access public
services provided by other Member States,
including those enabled by the Once-Only
Technical System, part of the EU Single Digital
Gateway (
140
).
Civil service
Some major challenges are affecting the
quality of the civil service in Slovakia.
The
share civil servants with higher education (52.8%)
is around that of the EU-27 (52.8%), as is the
participation rate of civil servants in adult learning
(20.6% in Slovakia and 18.9% in EU-27) (
141
). The
attractiveness of the public administration has
declined (
142
) and the proportion of staff below the
age of 49 years is decreasing. The decentralised
human resources management creates disparities
in
remuneration
and
appraisal
across
143
administrations ( ). The lack of dedicated training
policy and clear responsibility for assessing skills
gaps creates additional barriers to improving
productivity of civil servants.
(
140
) European Commission,
Once-Only Technical System
Acceleratormeter
(
141
) Eurostat. 2025.
European Union Labour Force Survey.
(
142
) JAHODA, Robert et al. The Low Demand for Public
Administration Programs in the Czech Republic and Slovakia:
What May be Behind it?. Transylvanian Review of
Administrative Sciences, [S.l.], p. 99-117, dec. 2022. ISSN
1842-2845.
<https://rtsa.ro/tras/index.php/tras/article/view/715>.
(
143
)
Kahancová, M., & Staroňová, K. (2023).
Arms-length
influence: Public sector wage setting and export-led
economic growth in Czechia and Slovakia.
European Journal
of Industrial Relations, 30(1),
97-
119.
https://doi.org/10.1177/09596801231215901
(
137
) European Commission,
The Once Only Principle System: A
breakthrough for the EU’s Digital Single Market
(
138
) European Commission.
Digital Decade 2024: Country reports
(
139
) European Commission,
eIDAS Dashboard.
58
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Previous reforms promoting merit-based
recruitment of civil servants may be
significantly weakened.
The amendments to the
Civil Service Act in 2021 relaxed the rules for
removal of senior civil servants. This was followed
by the replacement of staff at some management
positions. In 2024, the Civil Service Council, which
monitored civil service policy in Slovakia was
abolished (
144
). Its control functions were
transferred to a newly established civil service
control and monitoring department in the
government office. The
Council‘s role in
coordinating the human resources management,
promoting integrity, depoliticisation and motivation
of civil servants will not be transferred to another
body.
prosecution and police. Decentralisations of
investigations and turnover of employees
responsible for these had a largely negative
impact on the adequate follow up of ongoing
cases. There are thus newly arisen, as well as
persistent
serious
concerns
about
the
effectiveness of the fight against corruption. These
include the impact on the degree of specialisation
and capacity that was built over the past years,
funded by the RRF (e.g. ensuring the training of
police officers in the area of anti-corruption, as
well as the discretionary power of the Prosecutor-
General in particular to annul any final decision by
lower-ranking prosecutors or the police in the
investigations of high-level corruption cases.
Foreign bribery remains an area with low
enforcement levels, with one case being reported
(
149
).
Public procurement remains an area at high
risk of corruption in Slovakia.
45% of
companies (EU average 27%) think that corruption
has prevented them from winning a public tender
or a public procurement contract in practice in the
last three years (
150
). Amendments to the Public
Procurement Act aim to simplify public
procurement rules. However, stakeholders report
that the amendments may not address the actual
challenges, including systemic misuse of tenders
and levels of professional expertise, which affect
the quality of public tenders. (
151
)
The
influence of businesses on Slovakia’s
legislative process remains untransparent,
with lobbying being unregulated.
Slovakia has
reiterated but postponed its commitment to
adopting lobbying rules. Amendments tabled in
2024 would regulate exclusively lobbying by non-
governmental organisations and not corporate
lobbying, and risk creating an unequal level playing
field.
Integrity
Although corruption is considered widespread
and a problem when doing business, Slovakia
relaxed its laws punishing corruption and
dissolved specialised anti-corruption entities.
In Slovakia, 85% of companies consider that
corruption is widespread (EU average 64%) and
63% consider that corruption is a problem when
doing business (EU average 36%) (
145
). Moreover,
only 9% of companies believe that people and
businesses caught for bribing a senior official are
appropriately punished (EU average 31%) (
146
). The
criminal law reform raises serious concerns
regarding the robustness of Slovakia’s legislative
framework against corruption, reducing sanction
levels for corruption crimes and shortening the
period in which they can be brought to justice. As a
result of amendments to the Criminal Codes,
several high-level corruption cases have been
dropped in 2024 (
147
). Besides, throughout 2024,
Slovakia dissolved the autonomous Special
Prosecution Office, the specialised police National
Crime Agency (NAKA) and the Department of
Corruption Prevention of the Government Office in
2024 (
148
) and subsequently reorganised both
(
144
) Act No 201/2024 Coll., amending Act No 575/2001 Coll.
(
145
) Flash Eurobarometer 543 on businesses’
attitudes towards
corruption in the EU (2024).
(
146
) Ibid.
(
147
) See the 2024 country-specific chapter for Slovakia of the
Rule of Law Report, pp. 14 et seq.
(
148
) Ibid., pp. 10 et seq.
(
149
) Ibid., p. 18.
(
150
) Flash Eurobarometer 543 on businesses’
attitudes towards
corruption in the EU (2024).
(
151
) See the 2024 country-specific chapter for Slovakia of the
Rule of Law Report, pp. 27-28.
59
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Justice
The justice system continues to face
challenges as regards its efficiency and
judicial independence.
The estimated time for
resolving civil and commercial cases at first
instance increased (from 168 days in 2022 to 173
days in 2023). As regards administrative cases,
the estimated time at first instance increased
significantly from 648 days in 2022 to 1 040 days
in 2023 and is one of the highest in the EU. Also,
the clearance rate for resolving administrative
cases dropped from 93% in 2022 to 74% in 2023.
The judicial map was reorganised in 2023, and a
dedicated administrative court system was
established. The quality of the justice system is
good overall. The level of digitalisation of the
justice system is advanced but work on developing
a new digital court management system has faced
setbacks. Some digitalisation efforts are being
supported by the recovery and resilience plan.
Concerns regarding judicial independence persist.
Safeguards in the dismissal procedure of the non-
peer elected members of the Judicial Council are
missing, while the Government, the Parliament and
the President dismissed their nominees ahead of
the end of their term. The lack of safeguards
exposes judges to prosecution for the content of
their decisions (
152
).
(
152
) For more detailed analysis of the performance of the justice
system in Slovakia, see the upcoming 2025 EU Justice
Scoreboard and 2024 Rule of Law Report.
60
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SUSTAINABILITY
ANNEX 7: CLEAN INDUSTRY AND CLIMATE MITIGATION
Slovakia
faces
significant
challenges
regarding its clean industry transition and
climate
mitigation.
Clean
technology
manufacturing has potential to strengthen
industrial diversity in Slovakia. Its automotive
sector is currently undergoing a profound
transformation, and energy-intensive industries
have been challenged by high energy prices and
global competition. Slovak manufacturing is
heavily reliant on importing critical raw materials.
Mixed municipal waste is still allowed to be
landfilled without pre-treatment. Slovakia still has
not remediated numerous contaminated waste
sites, and its industry continues releasing large
amounts of air and water pollutants.
production or recovery of related critical raw
materials. In March 2024, the government
included the production of batteries, solar panels,
wind turbines, heat pumps, electrolysers and
equipment for carbon capture and storage among
its strategic sectors (
154
). Businesses from those
strategic areas will thus be able to receive
increased state incentives. After several large
investors have in recent years announced
significant investment in producing heat pumps,
photovoltaic panels (
155
) could also be developed
and produced in Slovakia. Based on the action plan
for
the
2023-2026
National
Hydrogen
156
Strategy ( ), the government also supports the
development of hydrogen infrastructure and
technologies in Slovakia. Investment in these new
industrial segments and in strategic goods could
support the transition towards a net zero economy
and further strengthen industrial diversity in
Slovakia.
Public and private investment in energy
research and innovation is very low in
Slovakia, with an R&D intensity of just below
1% in 2022.
This limits the country’s ability to
develop and deploy advanced clean technologies.
The lack of private sector investment in R&D
combined with a lack of cooperation between
industry and academia, and a shortage of startups
and innovative ventures, is also reported to be
hindering Slovakia’s battery industry.
Transforming the car industry
Slovakia’s automotive industry –
its largest
industry - is facing strong competition and
significant
challenges
regarding
the
transition
to
electric
vehicles.
Car
manufacturing employs more than 260 000
people and produces up to 12% of GDP. It
accounted for 42% of exports and almost half of
industrial sales (46.5%) in 2023. The sector is
undergoing a profound transformation, driven by
digitalisation, automation and the shift towards
(
154
) Ministry of Industry:
Detail materiálu | Portal OV,
March
2024.
(
155
) Minister of Industry signed a
Memorandum of understanding
with the innovative japanese producer of photovoltaic
panels, February 2024.
(
156
)
Action plan of the National Hydrogen Strategy for 2023-
2026
Strategic autonomy and technology
for the green transition
Net zero industry
Slovakia’s manufacturing capacity across net
zero technologies remains modest.(
153
)
Slovakia’s manufacturing capacity amounts to
between 5 and 5.25 GWh/y (2% of EU capacity)
for battery and storage technologies and between
50 and 150 MW/y (0-1% of EU capacity) for solar
PV modules. Additionally, there are at least 12
facilities in Slovakia producing heat pumps.
Slovakia could benefit from manufacturing
clean technologies, which is a newly
emerging and promising segment of its
domestic industry, helping to diversify the
industrial sectors of the economy.
In Slovakia,
an EUR 1 billion state aid scheme under the
Temporary Crisis and Transition Framework was
approved by the European Commission in
December 2023 to support investment projects in
strategic industrial sectors for the transition to a
net-zero economy. These include the production of
batteries, solar panels, wind turbines, heat pumps,
electrolysers, carbon capture equipment, key
components for these technologies and the
(
153
) European Commission: Directorate-General for Energy, The
net-zero manufacturing industry landscape across the
Member States 2025,
https://data.europa.eu/doi/10.2833/2181110
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electric vehicles and away from internal
combustion
engines.
Nevertheless,
Slovak
carmakers remain cautiously optimistic about their
near-term outlook. This resilience is largely due to
the country's highly modern manufacturing
facilities, lower labour costs that provide a
competitive edge and the fact that all Slovak
automotive plants are currently working on electric
car models whose production is relatively stable. In
addition, the Slovak automotive industry will be
strengthened by the significant investment
announced in 2024, including in a gigafactory for
batteries, which will facilitate the country’s shift to
electric models and boost the entire automotive
sector in Slovakia. Based on calculations (
157
), the
sector received 96% of the investment aid in 2024
and 84% in 2023. However, supporting the
diversification of the Slovak economy could end its
dependence on one dominant industry and thus
reduce its vulnerability to supply-chain disruptions
and global uncertainty.
To address barriers and challenges facing
the automotive industry, further efforts
could be made, including creating a space for
discussion and cooperation with the industry.
According to industry representatives, there is a
lack of cooperation between government and
industry, resulting in the adoption of crucial
legislative proposals affecting the industry without
adequate consultation with the key industrial
stakeholders. The competitive advantage of
production in Slovakia is being reduced by
consolidation measures that will increase costs
and taxes for companies (see Annex 4: Making
Business Easier). Further impediments for the
industry to grow and remain competitive in the
long term include the lack of waste processing
capacities in Slovakia, the obstacles to meeting the
EU’s “green goals”, the shortage of skilled workers
but also the insufficient attractiveness of STEM
studies (see Annex 12) and an extensive brain
drain. In addition, Slovakia needs to step up its
support for zero-emission vehicles on its own
roads. In 2023, battery electric vehicles made up
just 2.9 percent of new car registrations, placing
Slovakia in last place among EU countries.
Despite the adoption of the Action plan for the
development of e-vehicles in Slovakia in 2023 and
its revision later in 2024, the country experienced
(
157
) Institute for Strategies and Analyses (ISA):
Ekonomick�½
prehľad 41,
October 2024.
the third sharpest decline in the battery-electric
vehicles market share from July to October
2024(
158
). Many of the proposed measures
including subsidies for the purchase of electric
cars, exemption of electric cars from highway fees
and tolls or support for charging infrastructure
have either been delayed or remained
unimplemented.
Decreasing inefficiencies in rail transport
Despite important steps taken under the RRP,
significant efforts are still needed to prepare
and implement further investments in
railway transport.
In particular, a more long-
term funding approach and strategy for financing
would be important to optimise governance and
strategic investments, to be focused on
electrification, digitalisation, reconstruction, and
optimisation of the rail network and its better
interconnection and interoperability with the trans-
European network for transport. A centralised
national fund, in addition to improvement of the
infrastructure project lifecycle, which exist in
neighbouring Member States, is currently missing
in Slovakia. This would allow for a more effective
medium to long-term planning of transport
infrastructure works, and better use of national
and European streams of funding that finance
most of these projects in Slovakia. This could be
accompanied by a reform of national railway
infrastructure management, to accelerate and
streamline investments in modernising rail
physical and digital infrastructure.
Critical raw materials
Slovak manufacturing depends heavily on
imports of critical raw materials (CRMs) that
are needed for the green and digital
transitions.
While Slovakia produces several such
materials(
159
), such as silicon metal, coking coal,
and aluminium, it is still heavily reliant on imports
of CRMs for the transitions. In 2023, the main CRM
imported by Slovakia from non-EU countries, in
(
158
) DG GROW "CET Quarterly Bulletin" on industrial performance,
based on ACEA (European
Automobile Manufacturers’
Association), December 2024.
(
159
) EC, Raw material Information System, country profile
Slovakia.
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terms of trade values, was coking coal from the
USA, Australia, and Canada.
Slovakia’s Import
concentration Index(
160
) was the highest among
the EU countries in 2023, which creates significant
challenges regarding sustainability and resilience,
such as supply chain risks, environmental
degradation and social concerns. With 43.3% of
material inputs coming from imports in 2023 (EU
average: 22%), Slovakia is particularly vulnerable
to supply chain disruptions. Moreover, the circular
use of material, which is key to reducing
dependence on raw materials imports, remains
well below the EU average, even though it has
increased since 2018. Improvements are therefore
needed towards more sustainable material
management practices in Slovakia.
Slovakia could play an important role in
addressing
strategic
dependencies
by
developing value chains in critical raw
materials.
Slovakia has a long-standing mining
and metallurgy tradition and good mineral
potential. It is the most significant EU producer of
magnesite and magnesium compounds. However,
the Slovak mining industry faces significant
challenges due to high energy prices, the Russian
invasion of Ukraine and efforts to achieve climate
neutrality. In October 2024, production in the
mining industry dropped by a fifth (y-o-y)(
161
). As a
result, the industry warns that it may be forced to
shut down factories or relocate production to
countries outside the EU. Slovakia’s 2021-2025
waste management programme identified
CRM-relevant areas requiring further investment
and development. These include electrical
equipment, batteries and accumulators and
vehicles, for which the principles of extended
producer responsibility apply. Investment in new
processing capacity is needed for end-of-life
vehicles, while for construction and demolition
waste, batteries and waste from electrical and
electronic equipment, the focus should be on
modernising existing facilities and improving
recycling rates. Slovakia has initiated or is
considering measures to increase the use of
secondary CRMs, such as mandatory green public
procurement, increasing the content of recycled
materials in products and setting standards for the
(
160
) The import concentration measures how much a country
relies on a limited number of sources for a basket of critical
raw materials. Source: COMEXT.
(
161
) Statistical Office of the Slovak Republic:
Priemyselná
produkcia,
October 2024.
quality of recycled materials from waste. Some of
the CRMs or CRM-rich products are addressed in
Slovakia’s Act No. 79/2015 on waste.
Slovakia scores well in recycling e-waste and
end-of-life vehicles.
It is a frontrunner as
regards the recycling rate for e-waste, a key
source of critical raw materials, with 92.5% in
2021 (the EU average was 81.6%). The reuse and
recycling rate for end-of-life vehicles in Slovakia is
above the EU average (95.9% vs. 89.1% in 2022).
Climate mitigation
Industry decarbonisation
Manufacturing is a significant source of
greenhouse gas emissions in Slovakia; the
country ranks fourth in emissions intensity in
the EU.
At 35%, the share of manufacturing in
Slovakia’s total greenhouse gas emissions is the
highest in the EU (
162
). Slovakian manufacturing
emits 740 g of CO2eq of greenhouse gases per
euro of gross value added, 2.7 times the EU
overall (270
g/€) and the third highest in the EU.
Since 2017, the greenhouse gas emissions
intensity of manufacturing in Slovakia improved by
20%, similar to the EU average. 56% of
manufacturing emissions in Slovakia relate to
energy use, with 44% associated with industry
processes and product use. In the EU overall, these
shares are the inverse.
The greenhouse emissions intensity of
manufacturing in Slovakia improved (albeit
less than in the EU overall).
One driver appears
to have been rising energy efficiency. Between
2017 and 2022, the energy- and process and
product use-related emissions intensities in
Slovakian manufacturing declined by 18% and
(
162
)
In 2023. Manufacturing includes all divisions of the “C”
section of the NACE Rev. 2 statistical classification of
economic activities. In the remainder of this section, unless
indicated otherwise, data on manufacturing refer to the
divisions of the NACE section C excluding division C19
(manufacture of coke and refined petroleum products), and
the year 2022. The source of all data in this section is
Eurostat; data following the UNFCCC Common Reporting
Framework (CRF) are from the European Environment Agency
(EEA), republished by Eurostat.
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19% respectively (
163
). For energy use, this was
slightly above the EU average (16%); for industry
process and product use-related emissions, EU-
wide reductions were higher, at 23%. In the same
period, the share of electricity and renewables in
manufacturing’s final energy consumption fell by
3 percentage points, to 38%
the fifth lowest in
the EU. In the same time period, the energy
intensity of manufacturing has improved by 10%,
with the final energy consumption of
manufacturing falling from 2.5 GWh per euro of
GVA to 2.3 GWh/€. In the EU overall, improvements
in energy efficiency in those years amounted to
15%, resulting in 1.1 GWh/€ in 2022.
Graph A7.1:
GHG emission intensity of manu-
facturing and energy-intensive sectors, 2022
7
6
5
manufacturing gross value added (2022). As an
important component of production costs in the
above industries and others, in recent years
Slovakia’s electricity prices for large consumers
increased to become the fourth highest in the EU
by 2023; gas prices too have risen to among the
highest in the EU (
165
). In September 2024, the
steel mill U.S. Steel Košice announced it had
prepared a decarbonisation plan, resulting in a
70% reduction in emissions with unchanged
production volume, but it may only be launched
once the ongoing ownership changes are clarified.
Reduction of emissions in the effort sharing
sectors
To attain its 2030 effort sharing target,
Slovakia needs to swiftly implement the
planned climate mitigation measures (
166
).
In
2023, GHG emissions from Slovakia’s effort
sharing sectors are expected to have been 14.3%
below those of 2005. By 2030, current policies are
projected to reduce them by 19.9% relative to
2005 levels; additional policies considered by
Slovakia are projected to add reductions of
11.6 percentage points. Consequently, Slovakia is
projected to overachieve its effort sharing target
of 22.7% reductions by 8.8 percentage points  (
167
).
KG CO
2
eq / €
4
3
2
1
0
C-C19
C17
Slovakia
C20
EU-27
C23
C24
Source:
Eurostat.
The greenhouse gas emissions intensity of
Slovakia’s basic metals sector is the fourth
highest in the EU,
emitting 6.5 kg of CO2eq per
€ of GVA: Slovakia’s chemical industry is the sixth
most emissions intensive among EU Member
States, with 2.7
kg CO2eq/€.
Energy-intensive
industries (
164
)
account for 13% of Slovakia’s
(
163
) For the GHG emissions intensity of GVA related to energy use
and industrial processes and product use respectively, GHG
emissions are from inventory data in line with the UNFCCC
Common Reporting Format (CRF), notably referring to the
source sectors CRF1.A.2
fuel combustion in manufacturing
industries and construction and CRF2
industrial processes
and product use. The CRF1.A.2 data broadly correspond to
the NACE C and E sectors, excluding C-19. GVA data (in the
denominator for both intensities) are aligned with this
sectoral coverage. Therefore, they are not fully consistent
with the data referred to in other part of this section.
(
164
) Notably, the manufacture of paper and paper products
(NACE division C17), of chemicals and chemical products
(C20), “other” non-metallic
mineral products (C23; this
division includes manufacturing activities related to a single
substance of mineral origin, such as glass, ceramic products,
tiles, and cement and plaster), and basic metals (C24). To
date, these industries are energy-intensive
i.e. consuming
much energy both on site and/or in the form of purchased
electricity
and greenhouse gas emissions intensive, in
various combinations.
(
165
) For a detailed analysis of energy prices, see Annex 8 on the
affordable energy transition.
(
166
)
The national greenhouse gas emission reduction target is set
out in Regulation (EU) 2023/857 (the Effort Sharing
Regulation). It applies jointly to buildings (heating and
cooling); road transport, agriculture; waste; and small industry
(known as the effort sharing sectors).
(
167
) The effort sharing emissions for 2023 are based on
approximated inventory data. The final data will be
established in 2027 after a comprehensive review.
Projections on the impact
of current policies (“with existing
measures”, WEM) and additional policies (“with additional
measures”, WAM), as per Slovakia’s final updated NECP.
64
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Graph A7.2:
Greenhouse gas emissions in the
effort sharing sectors, 2005 and 2023
25
20
15
MtCO2e
Slovakia’s recovery and resilience plan includes
one circular economy-related reform on the
management of construction and demolition
waste. Circular economy targets have been
introduced as part of the country’s wider 2019
environmental policy strategy (
169
), but they relate
more to waste.
Slovakia needs to do more to ensure that all
landfilled waste has been (pre-)treated and
increase its efforts to meet all waste
targets.
With 472 kg of municipal waste in 2023,
Slovakia produces slightly less municipal waste per
capita than the EU average (see Graph A7.3). With
a recycling rate of 49.5% in 2022, Slovakia is
slightly above the EU average for municipal waste
recycling. However, it is at risk of missing the
municipal waste and packaging waste targets, and
of not meeting the 2035 target of maximum 10%
of municipal waste being landfilled. Also, mixed
municipal waste is still allowed to be landfilled
without pre-treatment and Slovakia repeatedly
postponed the introduction of a pre-treatment
obligation. At 60% in 2022, Slovakia’s recycling
rate for plastic packaging waste was above the EU
average, though this figure is not yet based on the
new calculation rules. The preparing for reuse and
recycling rate of mineral construction and
demolition waste in Slovakia in 2022 was 93.2%,
compared with the EU average of 79.8 %.
Slovakia’s material footprint in 2023 was 13.8
tonnes per capita, below the EU average.
Current investment in the circularity
transition has been insufficient.
Slovakia is
estimated to need total additional investment
worth at least EUR 189 million per year for the
circular economy transition, including waste
management. Of the circular economy gap, EUR
43 million relates to recent initiatives, such as eco-
design for sustainable products, packaging and
packaging waste, labelling and digital tools, critical
raw materials recycling and measures proposed
under the amendment of the Waste Framework
Directive. The EUR 121 million constitutes further
investment need to unlock Slovakia’s circular
economy potential (
170
).
10
5
0
2005
Domestic transport (excl. aviation)
Agriculture
Waste
2023
Buildings (under ESR)
Small industry
Source:
European Environment Agency
Sustainable industry
Circular economy transition
Despite positive trends, there is room for
improving Slovakia’s circularity transition.
At
10.6% in 2023, Slovakia’s circular material use is
below the EU average and far behind EU leaders.
Slovakia’s resource productivity, at EUR 1.52 per
kg of material consumed in 2023, remained well
below the EU average. Even if Slovakia’s resource
productivity has been slightly improving in the past
decade, the gap towards the EU average has not
decreased. Slovakia needs to boost its efforts to
minimise negative environmental impacts and
reduce dependence on volatile raw materials
markets. Slovakia’s circular economy policy
framework is set in its first dedicated roadmap
(
168
). The roadmap was developed in 2022 thanks
to cooperation with the OECD and the European
Commission’s
Technical Support Instrument. It
introduces more than 30 concrete policy
recommendations,
supported
by
an
implementation plan and a monitoring framework,
all to be introduced by 2040. Priority areas are
food and biowaste, the construction sector,
sustainable production and consumption and
economic instruments as cross-cutting measures.
(
168
)
Closing the Loop in the Slovak Republic - A Roadmap
Towards Circularity for Competitiveness, Eco-innovation
and Sustainability, 2022
https://www.oecd.org/environment/waste/highlights-
closing-the-loop-in-the-slovak-republic-roadmap_EN.pdf.
(
169
) Ministry of the Environment,
Greener Slovakia,
2019,
Link.
(
170
) European Commission, DG Environment,
Environmental
investment needs & gaps assessment programme,
2025
update. Expressed in 2022 prices.
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Graph A7.3:
Municipal waste treatment
600
500
Kg per capita
400
300
200
100
0
478
421
497
478
472
2019
2020
2021
2022
2023
Material recycling
Composting and digestion
Landfill/disposal
Total incineration (incl. energy recovery)
Waste treatment unspecified
EU-27 total waste per capita
Source:
Eurostat
gross value added (GVA)) and it has the 13th
highest damage. The main contributors to
emissions to air are the energy sector as well as
the metals and mineral industry for NOx
emissions, the waste management and chemical
industry for dust emissions, the energy sector, and
the metals sector and mineral sector for SO2 and
heavy metals. As regards industrial emissions of
heavy metals to water, Slovakia is in 4th position
in the EU for emissions intensity (below the EU
average intensity of 0.864 kg / billion EUR GVA)
and has the 13th highest amount of emissions.
The main contributors to emissions to water in
Slovakia are the chemical sector for heavy metals,
nitrogen and total organic carbon, the pulp and
paper industry for phosphorus and the metal
production and processing sector for polycyclic
aromatic hydrocarbons (PAHs).
The costs of pollution remain far higher than
the investment in pollution prevention and
control.
Based on 2022 data, 3 700 deaths in
Slovakia are attributed each year to fine
particulate matter (PM
2.5
); 260 deaths to nitrogen
dioxide (NO
2
), and 700 deaths to ozone (O
3
) (
172
).
The costs related to all industrial air pollutants in
Slovakia are estimated to be EUR 9.3 billion (
173
).
In contrast, to meet its objectives for pollution
prevention and control and address the health and
economic costs of pollution, Slovakia needs an
additional EUR 289 million per year (0.26% of
GDP), mostly related to air pollution control (
174
).
Zero pollution industry
Slovakia has been making significant
progress with reducing air pollution but air
quality continues to give cause for concern in
some parts of its territory.
This pollution is now
decoupled from GDP growth. In 2023,
exceedances above the limit values set by the
Ambient Air Quality Directive were registered for
PM
10
in one air quality zone in Slovakia. The target
values for ozone concentrations have not been
met in two air quality zones, and the target value
for benzo(a)pyrene (BaP) concentration in six air
quality zones (
171
). However, the 2020-2029
emissions reduction commitments for air
pollutants NO
x
, NMVOC, SO
2
, NH
3
and PM
2.5
under
the National Air Pollution Control Programme have
been met, and the commitments (for the same air
pollutants) for the 2030s are projected to be met
as well.
Slovakia’s industry still releases large
amounts of air and water pollutants.
As
regards industrial air pollutants, Slovakia comes
7th for the emissions intensity in the EU (above
the EU average of 27.5 EUR / thousand EUR of
(
171
) EEA, EIONET central data repository,
Link.
(
172
) In terms of years of life lost, this implies 41 400 years for
PM
2.5
, 2 900 for NO
2
, and 7 800 for O
3
.
(
173
) Value of 2017, source: EEA, 2024,
The costs to health and
the environment from industrial air pollution in Europe
2024 update,
Link.
(
174
) European Commission, DG Environment,
Environmental
investment needs & gaps assessment programme,
2025
update. Expressed in 2022 prices.
66
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Table A7.1:
Key clean industry and climate mitigation indicators: Slovakia
Strategic autonomy and technology for the green transition
Net zero industry
Operational manufacturing capacity 2023
- Solar PV (c: cell, w: wafer, m: module), MW
- Wind (b: blade, t: turbine, n: nacelle), MW
Automotive industry transformation
Motorisation rate (passenger cars per 1000 inhabitants), %
New zero-emission vehicles, electricity motor, %
Critical raw materials
Material import dependency, %
Climate mitigation
Industry decarbonisation
GHG emissions intensity of manufacturing production, kg/€
Share of energy-related emissions in industrial GHG emissions
Energy-related GHG emissions intensity of manufacturing
and construction, kg/€
Share of electricity and renewables in final energy consumption
in manufacturing, %
Energy intensity of manufacturing, GWh/€
Share of energy-intensive industries in manufacturing production
GHG emissions intensity of production in sector [...], kg/€
- paper and paper products (NACE C-17)
- chemicals and chemical products (NACE C20)
- other non-metallic mineral products (NACE C23)
- basic metals (NACE C24)
Reduction of effort sharing emissions
GHG emission reductions relative to base year, %
- domestic road transport
- buildings
2005
Effort sharing: GHG emissions, Mt; target, gap, %
Sustainable industry
Circular economy transition
Material footprint, tonnes per person
Circular material use rate, %
Resource productivity, €/kg
Zero pollution industry
Years of life lost due to PM2.5, per 100,000 inhabitants
Air pollution damage cost intensity, per thousand € of GVA
Water pollution intensity, kg weighted by human factors per bn € GVA
1,066
781
815
1,025
45.4
1.7
1,120
-
702
571
27.5
0.9
2018
15.1
4.7
1.2
23.1
Slovakia
2019
14.3
8.3
1.4
2020
13.2
10.3
1.4
2021
13.2
10.4
1.5
2022
14.2
11.5
1.8
2023
13.8
10.6
2.0
0.30
3.52
2.77
7.01
0.44
3.83
2.79
5.92
2018
1.8
-27.3
0.37
2.58
2.10
6.98
2019
5.9
-28.9
0.39
2.63
2.36
7.46
2020
-7.9
-30.6
0.51
3.14
2.59
7.06
2021
-12.2
-1.9
-21.0
2021
20.3
2017
0.94
57.0
307.9
41.1
2.52
2018
0.86
56.3
303.6
41.3
2.35
Slovakia
EU-27
50-150 (m)
-
2017
408
0.22
2017
2018
426
0.31
2018
43.0
2019
439
0.16
2019
44.0
- Electrolyzer, MW
- battery, MWh
2020
447
1.19
2020
42.7
2021
459
1.50
2021
45.2
2022
471
1.92
2022
45.8
-
5000-5250
2023
487
2.90
2023
43.3
Trend
2018
539
1.03
2018
24.2
2021
561
8.96
2021
22.6
Slovakia
2019
0.7
54.7
250.2
42.7
2.11
2020
0.75
56.9
256.3
39.0
2.19
2021
0.86
56.8
291.0
39.8
2.27
2022
0.74
56.7
252.0
37.9
2.26
12.9
0.46
2.68
2.61
6.45
2022
-15.1
1.5
-28.2
2022
19.6
0.41
2.51
1.89
5.59
2023
-14.3
2.5
-32.2
2023
19.8
2023
0.62
56.0
-
37.7
1.70
EU-27
2017
0.34
44.8
158.4
43.3
1.29
2022
0.27
42.5
132.9
44.2
1.09
7.3
-
-
-
-
0.73
1.25
2.53
2.79
2018
1.4
21.4
0.68
1.26
2.24
3.49
2023
5.2
32.9
WAM
8.8
Target
-22.7
Trend
WEM
-2.8
EU-27
2018
14.7
11.6
2.1
2021
15.0
11.1
2.3
Source:
Net zero industry:
European Commission:
The net-zero manufacturing industry landscape across Member States: final
report,
2025.
Automotive industry transformation:
Eurostat.
Critical raw materials:
Eurostat.
Climate mitigation:
See
footnotes in the "climate mitigation" section; reduction of effort sharing emissions:
EEA greenhouse gases data viewer;
European
Commission,
Climate Action Progress Report,
2024.
Sustainable industry:
Years of life lost due to PM2.5: Eurostat and EEA,
Harm to human health from air pollution in Europe: burden of disease status,
2024. Air pollution damage: EEA,
EU large industry
air pollution damage costs intensity,
2024. Emissions covered: As, benzene, Cd, Cr, Hg, NH3, Ni, NMVOC, NOX, Pb, dioxins, PM10,
PAH, SOX. Water pollution intensity: EEA,
EU large industry water pollution intensity,
2024. Releases into water covered from
cadmium, lead, mercury, nickel. Other indicators: Eurostat.
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ANNEX 8: AFFORDABLE ENERGY TRANSITION
This annex outlines the progress made and
the ongoing challenges faced in enhancing
energy competitiveness and affordability,
while advancing the transition to net zero.
It
examines the measures and targets proposed in
the final (draft) updates to the national energy
and climate plans (NECPs) for 2030.
Slovakia is facing very high energy prices,
also consequently to the stop of the gas
transit via Ukraine.
Despite the efforts made to
accelerate the decarbonisation of its energy
system, there is still space for improvement.
Nuclear energy still represents the main source of
electricity production in the national energy mix.
taxes and levies) shares in Slovakia broadly follow
EU-wide trends with the exception of the share of
network costs in finarul retail gas prices for
household and non-household consumers which
are considerably higher than the EU average
(32.4% and 12.3% for an EU average of 18.3%
and 7.1% respectively) and the electricity network
costs for households which are significantly lower
than the EU average.
Slovakia had the EU’s ninth
highest
wholesale electricity prices, averaging 93
EUR/MWh in 2024(
175
).
Prices initially fell with
natural gas costs, but surged during the
spring/summer and winter, diverging from
Central Eastern European (CEE) markets.
This
decorrelation was driven by factors affecting both
consumption and generation. On the consumption
side, prolonged and warmer summer heatwaves
and a colder winter in the region led to higher
consumption(
176
). Generation challenge in Slovakia
included lower hydropower (-55% in Nov/Dec
2024 vs same period in 2023)(
177
) due to weather
conditions, reduced nuclear output (-16% in
summer and -4% in winter) due to malfunctions,
and decreased coal production (-57% in 2024) due
to rising CO
2
costs, further straining the supply-
demand balance. This gap was mainly covered by
costly natural gas-fired generation (+18% in
2024) ramping up especially during peak demand
hours. Consequently, and more so than in 2023,
these conditions drove concentrated price spikes in
the evening hours (18h-21h), when solar output
declined and demand increased, especially during
the summer. On the other hand, average daytime
hourly prices were lower compared to 2023, likely
owing to the uptake of solar output in Slovakia
(+11% in 2024) and in neighbouring markets(
178
).
Energy prices and costs
Graph A8.1:
Retail energy price components for
household and non-household consumers, 2024
(i) For household consumers, consumption band is DC for
electricity and D2 for gas. Taxes and levies are shown
including VAT.
(ii) For non-household consumers, consumption band is ID for
electricity and I4 for gas. Taxes and levies are shown
excluding VAT and recoverable charges, as these are typically
recovered by businesses.
Source:
Eurostat
Slovakia’s
retail electricity prices dropped
significantly in 2024 for both non-household
and household consumers, but the former
category climbed around 8% above EU
average
while
the
latter
remained
considerably below EU average (almost
39%).
Similarly for retail gas prices, households’
prices remained at a level almost half of the EU
average when prices for non-household consumers
were the 4th highest in the EU. Retail prices
components (energy and supply, network costs,
(
175
) Fraunhofer (ENTSO-E data).
(
176
)2024 load was at 25.6 TWh, increasing by 1% compared to
2023.
(
177
) ENTSO-E.
(
178
)Yearly electricity data, Ember (generation and consumption
data throughout the paragraph).
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Graph A8.2:
Monthly average day-ahead wholesale
electricity prices and European benchmark
natural gas prices (Dutch TTF)
Slovakia is well interconnected with
neighbouring
countries
and
has
an
interconnectivity level of over 40%.
However,
further reinforcements of the grid are needed to
support integration of renewables. Additional
reinforcements on the Czech border are to be
addressed by a new interconnector under
consideration, which has received PCI (project of
common interest) status. Further reinforcements
on the border with Hungary are also being
considered. Modernisation of the distribution grid
is supported by two ongoing PCI smart-grid
projects: ACON with Czechia and the Danube InGrid
with Hungary. In addition, the upgrade of the
pumped-hydro storage at Cierny Vah (which also
has PCI status) is expected to improve the
flexibility of the power system within the region.
Energy infrastructure permitting in Slovakia
does not form part of a dedicated legal
framework.
While the existing framework does
not pose any major concerns, there is scope for
further
streamlining
of
environmental
assessments and a need to boost the resources
and improve the expertise of the competent
authorities. In addition, the priority status of
projects of common interest/projects of mutual
interest is not fully reflected in the permitting
process, as these projects are not automatically
given the status of highest national significance.
Additionally, the designated one-stop-shop,
intended to streamline the process, has limited
powers and a coordinative role, further
complicating the situation.
The Slovak recovery and resilience plan aims
to support faster roll-out of investment in
renewables.
For this purpose, it has included
reforms that have
modernised the country’s
electricity market and created an appropriate
legislative environment, by improving access for
new market participants, increasing certainty and
confidence in state support measures and
improving integration of renewables in the Slovak
electricity grid. In 2023, the solar industry
estimated the grid connection of solar plants to
take between three and six months for utility-scale
projects and one month for small photovoltaic
projects, both below the EU average.
(i) the Title Transfer Facility (TTF) is a virtual trading point for
natural gas in the Netherlands. It serves as the primary
benchmark for European natural gas prices.
(ii) CEE and CWE respectively provide average prices in the
central-western European (Belgium, France, Germany,
Luxembourg, the Netherlands and Austria) and central-
eastern European (Poland, Czechia, Slovakia, Hungary,
Slovenia and Romania) markets.
Source:
S&P Platts and ENTSO-E
Flexibility and electricity grids
Slovakia is part of the Core(
179
)
capacity
calculation region (CCR).
Member States should
ensure that a minimum of 70% of technical cross-
border capacity is available for trading. Member
States have a derogation in place to address
specific network elements, introducing interim
targets to be met only on specific critical network
element and contingency (CNECs) while the 70%
rule applies to the remaining network elements. A
derogation enables a lower level of trades to be
made for a time-limited period for operational
security reasons. The ACER Market Monitoring
Report shows that the network elements limiting
cross-border trade mostly pertain to the internal
network.
(
179
)Core is the CCR which covers central European countries
namely Austria, Belgium, Czechia, Germany, France, Croatia,
Hungary, the Netherlands, Poland, Romania, Slovenia, Slovakia
and, once connected, Ireland. A CCR is a group of countries which
calculate cross-border electricity trade flows together.
Despite the challenges that remain, Slovakia
has taken steps to support non-fossil
flexibility.
The country does not report on the
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installed non-fossil flexibility capacity in the draft
NECP. It has committed to further promoting the
development of energy storage and energy
conversion technologies (Power-to-X). Slovakia has
adopted a legal framework that allows
aggregation, including independent aggregation, to
participate in wholesale markets. Slovakia is
working to put in place an energy data centre as a
central data hub for the registration of market
participants and the settlement of services(
180
).
The country expects this to make possible the
provision of services such as aggregation, energy
sharing and energy communities. However,
Slovakia’s regulatory framework still
presents
barriers to the development of flexible resources.
The slow deployment of smart meters in
combination with regulated retail prices results in
a low number of dynamic retail contracts.
Consumer engagement in the energy market
remains limited.
Slovakia applies regulated
prices for vulnerable customers. All households are
defined as vulnerable, which means that the vast
majority of households are on regulated contracts.
Moreover, the roll-out of smart meters for
households is low. Slovakia has decided to proceed
with a selective roll-out (15%) targeting
prosumers and consumers connected to the
distribution system at a low voltage level with an
annual consumption of at least 4 MWh.
Given the low-carbon electricity mix, the
challenge is the gradual electrification of
transport, in particular public passenger
transport.
For industry to be decarbonised, all
available innovative technologies and all
decarbonised fuels and energy carriers need to be
used. Households will also face the cost of
electrification in the transport sector, but this will
not lead directly to a reduction in consumption.
However, household consumption will be affected
by higher prices for products and services being
passed on by businesses in order to recover the
costs of energy efficiency investments, in
particular investments in electricity generation.
In 2023, electricity accounted for 19.9% of
Slovakia’s final energy consumption,
below
the EU average of 22.9%, and this share has
slightly decreased in the last decade(
181
),
partly due to an unfavourable electricity-to-
gas
price
ratio
that
disincentivizes
electrification
and
cost-effective
decarbonization.
When it comes to households,
electricity accounts for 20.7% of final energy
consumption, while in industry it represents 26.5%
(see also Annex 7). For the transport sector, this
share remains negligible at 2.1%. Further progress
in electrification across sectors is required for cost
effectively decarbonising the economy and
bringing the benefits of affordable renewable
generation to consumers.
In 2024’s second
semester, Slovakia had amongst the largest fiscal
disparities between electricity and gas in the EU.
Before taxes and levies, the electricity-to-gas price
ratio was 2,4 for households and 2.8 for energy-
intensive industries, rising to 2,9 and 3.1,
respectively, after taxes and levies. For
households, taxes and levies accounted for
~30,9% of the final electricity price, higher than
the EU average of 25%, while gas stood at
~16,7%. For energy-intensive industries, non-
recoverable taxes and levies represented ~13% of
the electricity price, while gas was nearly tax-
exempt (~2%)(
182
).
Renewables and long-term contracts
In
2024, 24% of Slovakia’s electricity mix
was supplied by renewable energy sources
(RES),
far behind the EU’s overall RES share of
47%(
183
).
Installed RES capacity grew by
11.34% in 2024.
The total renewable energy
capacity in Slovakia in 2024 stood at 2 691 MW.
As regards the acceleration of solar deployment,
the total installed capacity in 2024 was 867 MW,
almost an 46.2% increase from 2023. Wind
(
180
)Settlement of services refers to the process optimization and
management of the operation of flexible consumer and producer
equipment in real time and transactions regarding aggregation.
(
181
)CAGR (compound annual growth rate) of -0.7% between
2013 and 2023 and minimum/maximum share of 19.8% and
22.8%, respectively.
(
182
)Analysis based on Eurostat data for the second semester of
2024. For household consumers, consumption band is DC for
electricity and D2 for gas, which refer to medium-sized
consumers and provide an insight into affordability. For non-
household consumers, consumption band is ID for electricity and
I4 for gas, referring to large-sized consumers, providing an
insight into international competitiveness (price used for the
calculation excludes VAT and other recoverable taxes/levies/fees
as non-household consumers are usually able to recover VAT and
some other taxes).
(
183
) Yearly electricity data, Ember.
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capacity in Slovakia has remained stable at 4 MW
since 2019(
184
).
Graph A8.3:
Slovakia's installed renewable
capacity (left) and electricity generation mix
(right)
having 150 MW of installed onshore wind capacity
by 2026.
Power purchase agreements (PPAs) are not
very common in Slovakia.
The first virtual PPA
was concluded in 2024, with a volume of 7.2 GWh
per year. 2024 has also seen the conclusion of the
first cross-border PPA with Romania, with an
installed capacity of 461 MW. The construction of
the wind plant, which will take place in Romania, is
expected to be completed by the end of 2025.
Energy efficiency
“Other” includes renewable municipal waste, solid biofuels,
liquid biofuels, and biogas.
Source:
IRENA, Ember
Slovakia has taken steps to digitalise the
permit-granting procedure for renewables.
In
2024, the Spatial Planning Portal was set up, a
platform that makes it possible for applications to
be submitted for all spatial planning processes in
Slovakia. In addition, Slovakia has digitalised the
grid connection procedure. It has also taken some
steps to streamline the permitting process for
renewable energy projects. An amendment to
environmental impact assessment was approved
in 2024, which will increase the threshold under
which renewable energy projects must undergo
certain environmental assessments. However,
there is still room for further improvement to
shorten the permit-granting procedure for RES,
especially taking into consideration the guidance
on speeding up permit-granting procedures. The
Commission
has
launched
infringement
proceedings against Slovakia for failing to
transpose the permitting provisions laid down in
Directive (EU) 2023/2413 on the promotion of
energy from renewable sources.
Slovakia’s proposed contribution to the 2030
EU renewable energy target in its draft
updated national energy plan is 23%,
significantly below the 35%.
Via the Union
Renewable Energy Platform, Slovakia has
announced auctions for other renewables in 2025
(60 MW), 2026 (100 MW), 2027 (100 MW) and
2028 (100 MW). As part of the European wind
power action plan, Slovakia has committed to
(
184
)
Renewable Energy Capacity Statistics 2025
Slovakia has made progress towards
reaching the 2030 EU energy efficiency
targets.
In 2023, its primary energy consumption
(PEC) was 15.45 Mtoe, a 0.3% increase compared
to 2022. In 2023, its final energy consumption
(FEC) was 9.29 Mtoe, a 5.8% decrease compared
to 2022. Compared to 2022, FEC decreased in all
main sectors: in industry by 9.4%, in the residential
sector by 3.2%, in transport by 1.5% and in
services by 11.2%. According to the recast Energy
Efficiency Directive (Directive (EU) 2023/1791),
Slovakia should try to reach a PEC of 13.97 Mtoe
and an FEC of 8.70 Mtoe by 2030.
According to the national energy and climate
progress report for 2023, Slovakia achieved
new annual energy savings of 106 ktoe/year.
The top four measures were voluntary agreements
in industry, promoting energy efficient transport
(electromobility), increasing energy efficiency in
road freight transport (modernisation of the
vehicle park) and renovation of buildings (blocks of
flats).
Slovakia has not notified the Commission of
its comprehensive heating and cooling
assessment
identifying potential for the
application of high-efficiency cogeneration and
efficient district heating and cooling in line with
Article 25(1) of the Energy Efficiency Directive.
There is no completion date.
It would be beneficial if Slovakia were to
step up its efforts in the residential sector to
achieve a meaningful contribution to its
2030
reduction
target
for
energy
consumption in buildings.
Although FEC in the
residential sector decreased between 2022 and
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2023, from a medium-term perspective it is
stagnating at well above the 2018 level when
climate corrections are applied. This is despite the
target laid down in the long-term renovation
strategy being a 16% reduction by 2030. In 2022,
heating and cooling represented 84% of the
country’s residential
FEC. Approximately 12 000
heat pumps were sold in 2023, representing a
decrease of 11% compared to the previous year.
Slovakia is planning to ban the sale and
installation of new fuel and oil boilers. There are
several measures in place to support energy
renovations, including support for the installation
of heat pumps. Electricity in Slovakia was 3.4
times more expensive than gas in 2023, meaning
that end users save energy but will not make any
significant financial savings if they choose a heat
pump for heating.
Slovakia deploys an effective supportive
national financing framework that mobilises
energy efficiency investments
and is
composed mainly of grants and subsidies. It is
implemented by the Slovak Innovation and Energy
Agency (SIEA), or by various ministries or the
Environment Fund. The use of financial
instruments remains limited. In 2024, Slovakia
continued implementing financing measures,
including a EUR 357.3 million state aid scheme for
industrial decarbonisation under the Recovery and
Resilience Plan, set to run from 2022 to 2026. In
terms of sectors supported, Slovakia’s national
financing framework focuses mainly on the
building sector (both residential and public
buildings) and to some extent also on industry.
Slovakia continues to have a scheme to support
the construction, reconstruction and modernisation
of heat distribution systems, which was
implemented between 2020 and 2023.
between 2023 and 2024. Given that the transit of
Russian gas via Ukraine has been stopped,
Slovakia no longer receives Russian gas directly
via Ukraine but mostly from Hungary. Slovensk�½
plynárensk�½ priemysel (SPP)(
185
) has already
concluded a diversification contract for the
purchase of gas with Italy’s Eni. Other
diversification contracts exist with BP, ExxonMobil,
Shell and RWE. Alternative transit routes other
than Ukraine are Germany, Austria and Czechia,
which offer sufficient volumes of free transit
capacity or have already been reserved. Moreover,
SPP has also used the transit route from Croatia or
Italy, via Austria to Slovakia. Despite
Russia’s war
of aggression against Ukraine, Slovakia is still fully
dependent on oil deliveries from Russa via the
Druzhba pipeline and has an oil contract with
Russia that is valid until 31 December 2029. In
2024, crude oil imports from the Russian
Federation to Slovakia amounted to more than
80% of all crude oil consumed. The operator of the
sole refinery in Slovakia (MOL group) announced
that they will be able to fully refine from non-
Russian crude oil in 2026. Slovakia has the
possibility to use JANAF/Adria oil pipeline to supply
non-Russian crude oil.
In 2023, Slovakia’s gross inland consumption was
composed of 21.6 % natural gas (3 610 KTOE),
14.4 % of solid fossil fuels (2 402 KTOE), 22.3%
of oil and petroleum products (3 726 KTOW),
28.3% of nuclear heat (4 733 KTOW) and 12.3 %
of renewables and biofuels (2 055 KTOE).(
186
)
Security of supply and diversification
Slovakia’s dependence on Russian fossil
fuels remains high, with efforts to address
this issue progressing too slowly.
In 2024,
around 70% of natural gas was of Russian origin.
The country’s energy security priorities include
enhancing energy security, diversifying energy
sources and transport routes, and promoting
energy storage. Slovakia has reduced gas demand
by 14% voluntarily since August 2022, with an
improvement in demand management being seen
It would be useful if Slovakia were to
increase its efforts to diversify from Russian
energy.
According to the 2023 NECP (
187
), various
forms of possible participation in different
liquefied natural gas (LNG) projects (floating
storage and regasification units (FSRUs)) in the EU
are being considered as an additional contribution
to security of supply. The Slovak gas industry has
signed memoranda of understanding with a
number of companies from Italy, Poland and
Germany that could provide access to LNG
terminals and possible gas supplies to Slovakia.
The above steps have been taken to strengthen
Slovakia’s energy independence. In parallel,
(
185
) The state-owned gas supplier
(
186
)
Energy Balances - Eurostat
(
187
)The final 2024 NECP has not been submitted at the moment
of drafting.
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negotiations are also taking place with LNG
producers from the USA, Qatar, Asia and Africa. By
concluding these diversification contracts, SPP is
now able to cover around 70% of its customers’
consumption from a non-Russian source (
188
).
Slovakia's electricity mix has seen a growing
share of nuclear energy, rising from 60.2% in
2022 to 62% in 2023.
Slovakia is continuing to
expand its nuclear fleet, with the newest
Mochovce-3 nuclear reactor having been
connected to the grid and reaching full production
at the end of 2023. The construction of Mochovce-
4, the fourth reactor at the site, is expected to be
completed in the second half of 2025. In 2024,
the government announced plans to construct an
additional reactor at Bohunice, with construction to
be launched in 2031. In January 2025, framework
contracts were announced between newcleo and
JAVYS and VUJE for the construction of advanced
modular reactors (AMRs). Newcleo aims to
construct four lead-cooled fast reactors (LFRs)
that will make it possible for Slovak spent nuclear
fuel to be used as fuel. Diversification has
progressed with Slovenske elektrarne signing an
alternative fuel supply contract with Westinghouse
Sweden for its VVER-440 reactor fleet. In July
2024, Slovenske elektrarne also signed a VVER-
440 fuel supply contract with the French company
Framatome. These steps will reduce dependency
on nuclear fuel originating in Russia. It is important
for Slovakia to develop a national plan to fully
phase out its dependency on Russian nuclear fuel,
as foreseen by the REPowerEU Roadmap adopted
on 6 May 2025.
Slovakia’s GDP (
191
), below the EU weighted
average of 0.49%.
Tax measures accounted for
the full volume. However,
Slovakia’s 2023
Effective Carbon Rate (
192
) averaged EUR 64.05
per tonne of CO₂,
below the EU weighted mean of
EUR 84.80 (
193
).
Fossil fuel subsidies
In 2023, environmentally harmful (
189
) fossil
fuel subsidies without a planned phase-out
before 2030 represented 0.10% (
190
) of
(
188
) 2023 NECP, p. 67 (EN version).
(
189
) Direct fossil fuel subsidies that incentivise maintaining or
increasing in the availability of fossil fuels and/or use of
fossil fuels.
190
Numerator is based on volumes cross-checked with the
Slovak authorities. For all Member States, it includes public
R&D expenditures for fossil fuels as reported by the IEA
(Energy Technology RD&D Budgets) and excludes, for
methodological consistency, excise tax exemption on
kerosene consumed in intra-EU27 air traffic.
191
192
2023 Gross Domestic Product at market prices, Eurostat.
The Effective Carbon Rate is the sum of carbon taxes, ETS
permit prices and fuel excise taxes, representing the
aggregate effective carbon rate paid on emissions.
OECD (2024), Pricing Greenhouse Gas Emissions 2024
193
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Table A8.1:
Key Energy Indicators
Slovakia
2021
Household consumer - Electricity retail price (EUR/KWh)
Energy & supply [%]
Network costs
Taxes and levies including VAT
VAT
Household consumer - Gas retail price
Energy & supply
Network costs
Taxes and levies including VAT
VAT
Non-household consumer - Electricity retail price
Energy & supply
Network costs
Taxes and levies excluding VAT
Non-household consumer - Gas retail price
Energy & supply
Network costs
Taxes and levies excluding VAT
Wholesale electrity price (EUR/MWh)
Dutch TTF (EUR/MWh)
0.1647
37.0%
26.0%
36.9%
16.6%
0.0415
45.8%
37.6%
16.6%
16.6%
0.1483
39.4%
20.6%
28.1%
0.0322
66.5%
12.7%
4.9%
102.4
n/a
EU
2023
0.1976
43.0%
20.6%
36.3%
16.6%
0.0587
50.8%
32.5%
16.7%
16.7%
0.2779
59.8%
11.4%
14.6%
0.0972
73.1%
8.8%
1.6%
105.0
n/a
2022
0.1839
44.2%
25.3%
30.5%
16.7%
0.0493
51.5%
31.8%
16.6%
16.6%
0.2795
63.9%
11.2%
9.8%
0.0909
75.2%
6.6%
1.8%
264.1
n/a
2024
0.1789
48.2%
20.8%
30.9%
16.7%
0.0592
50.8%
32.4%
16.7%
16.7%
0.2131
57.8%
14.8%
12.8%
0.0723
69.2%
12.3%
2.3%
92.8
n/a
2021
0.2314
36.6%
26.7%
36.7%
14.5%
0.0684
43.7%
22.5%
33.8%
15.5%
0.1471
43.0%
15.8%
30.4%
0.0388
66.2%
7.7%
12.5%
111.0
46.9
2022
0.2649
54.3%
25.3%
20.3%
13.4%
0.0948
61.0%
17.3%
21.7%
11.6%
0.2212
66.5%
10.7%
9.9%
0.0836
77.3%
3.8%
6.1%
233.2
123.1
2023
0.2877
55.6%
24.8%
19.6%
13.8%
0.1121
64.5%
17.1%
18.4%
10.2%
0.2337
63.0%
11.9%
11.2%
0.0754
77.3%
5.3%
7.3%
99.1
40.5
2024
0.2879
47.8%
27.2%
25.0%
14.6%
0.1128
53.9%
18.3%
27.8%
13.6%
0.1970
55.8%
15.5%
15.4%
0.0603
68.7%
7.1%
11.6%
84.7
34.4
2017
Gross Electricity Production (GWh)
Combustible Fuels
Nuclear
Hydro
Wind
Solar
Geothermal
Other Sources
Gross Electricity Production [%]
Combustible Fuels
Nuclear
Hydro
Wind
Solar
Geothermal
Other Sources
Net Imports of Electricity (GWh)
As a % of electricity available for final consumption
Electricity Interconnection [%]
Share of renewable energy consumption - by sector [%]
Electricity
Heating and cooling
Transport
Overall
27.738
7.367
15.081
4.623
6
506
-
155
26.6%
54.4%
16.7%
0.0%
1.8%
0.0%
0.6%
3.028
11.2%
43.3%
21.3%
9.8%
7.0%
11.5%
2018
26.971
7.542
14.843
3.879
6
585
-
116
28.0%
55.0%
14.4%
0.0%
2.2%
0.0%
0.4%
3.682
13.7%
42.7%
21.5%
10.6%
7.0%
11.9%
2019
28.434
7.953
15.282
4.571
6
589
-
33
28.0%
53.7%
16.1%
0.0%
2.1%
0.0%
0.1%
1.700
6.5%
45.3%
22.1%
19.7%
8.3%
16.9%
2020
28.838
7.897
15.444
4.799
4
663
-
31
27.4%
53.6%
16.6%
0.0%
2.3%
0.0%
0.1%
319
1.3%
41.4%
23.1%
19.4%
9.3%
17.3%
2021
30.016
8.999
15.730
4.552
5
671
-
59
30.0%
52.4%
15.2%
0.0%
2.2%
0.0%
0.2%
774
2.9%
40.2%
22.4%
19.5%
8.8%
17.4%
2022
26.838
6.254
15.920
3.963
4
650
-
47
23.3%
59.3%
14.8%
0.0%
2.4%
0.0%
0.2%
1.412
5.9%
47.0%
22.9%
19.9%
8.9%
17.5%
2023
29.903
5.882
18.333
5.028
4
605
-
51
19.7%
61.3%
16.8%
0.0%
2.0%
0.0%
0.2%
-3.422
-15.5%
50.6%
24.2%
18.8%
9.2%
17.0%
2024
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
47.8%
-
-
-
-
2020
Import Dependency [%]
of Solid fossil fuels
of Oil and petroleum products
of Natural Gas
Dependency from Russian Fossil Fuels [%]
of Natural Gas
of Crude Oil
of Hard Coal
56.3%
86.2%
102.0%
88.1%
85.4%
100.0%
35.0%
2021
52.6%
88.1%
98.3%
69.0%
68.9%
100.0%
25.8%
2022
69.6%
96.1%
103.0%
137.3%
38.6%
96.2%
8.9%
2023
57.7%
90.4%
105.2%
105.7%
63.9%
84.0%
0.0%
2020
57.5%
35.8%
96.8%
83.6%
41.0%
25.7%
49.1%
2021
55.5%
37.2%
91.7%
83.6%
40.9%
25.2%
47.4%
2022
62.5%
45.9%
97.8%
97.6%
20.7%
18.4%
21.5%
2023
58.3%
40.8%
94.5%
90.0%
9.3%
3.0%
1.0%
2017
Gas Consumption (in bcm)
Gas Consumption year-on-year change [%]
Gas Imports - by type (in bcm)
Gas imports - pipeline
Gas imports - LNG
Gas Imports - by main source supplier [%]
Russia
Not specified
5.0
5.4%
5.2
5.2
0.0
84.6%
15.4%
2018
4.9
-1.2%
4.4
4.4
0.0
100.0%
0.0%
2019
4.9
-0.1%
6.7
6.7
0.0
100.0%
0.0%
2020
4.9
-0.4%
4.3
4.3
0.0
85.4%
14.6%
2021
5.5
11.9%
5.1
5.1
0.0
68.9%
31.1%
2022
4.5
-17.4%
6.2
6.2
0.0
38.6%
61.4%
2023
4.2
-6.2%
4.5
4.5
0.0
63.9%
36.1%
Source:
Eurostat, ENTSO-E, S&P Platts
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ANNEX 9: CLIMATE ADAPTATION, PREPAREDNESS AND ENVIRONMENT
Extreme weather events and nature
degradation have a significant impact on
Slovakia, with economic sectors such as
agriculture, forestry and construction heavily
dependent on ecosystem services.
Despite
having a large proportion of protected areas,
effective conservation measures are lacking,
leading to ongoing legal issues and funding gaps
that threaten biodiversity and economic stability.
The current Slovak government has diverted
funding away from nature and diversity protection
and has relaxed environmental protection laws.
Slovakia is making strides in transitioning to
sustainable agricultural practices, including
increasing organic farming and implementing
stricter environmental standards. However, these
efforts are undermined by insufficient investment
in biodiversity conservation, putting Slovakia’s
compliance with global biodiversity commitments
and its long-term socioeconomic development at
risk.
The water quality of Slovakia’s surface water
bodies shows a deteriorating trend in terms of
their ecological and chemical status. Its
wastewater treatment also remains a cause for
concern. Addressing these challenges is crucial to
safeguarding Slovakia’s natural resources and
ensuring the resilience and competitiveness of its
economy.
plan (NAP) in 2021, which sets out the priorities
for adaptation in the sectors identified as
vulnerable to climate change (in particular water
management, agriculture, forestry, nature, health
and urban planning). However, Slovakia still needs
to carry out a comprehensive assessment of its
vulnerability to climate change. Furthermore,
progress on the new climate law, referred to in the
Government Manifesto of October 2023 (
194
), has
stalled in 2024. The update of its national
adaptation strategy (NAS) is due in 2025. Slovakia
also has yet to submit its updated national energy
and climate plan to the European Commission. The
most recent draft update does not take account of
relevant climate vulnerabilities and risks, which
may jeopardise the achievement of energy and
climate mitigation objectives. In addition,
adaptation policies and measures (to address
these risks and vulnerabilities) are not adequately
described.
Despite advances in climate monitoring and
modelling, Slovakia faces challenges in the
effective implementation of adaptation
solutions.
As mentioned in the conclusions to the
assessment of Slovakia's progress towards
adaptation under European climate legislation,
Slovakia has continued to develop its climate
monitoring
and
modelling
tools,
but
methodological gaps in the monitoring of
adaptation and climate risks remain. Although
enhanced climate-observation tools inform
decision-making in specific sectors, there is limited
capacity for systemic risk assessments. Challenges
in translating climate risk information into
practicable solutions therefore remain. The climate
vulnerability and risk analysis has not identified
any further risks that were not reported in 2021,
and the reported risks and sectors appear to be
consistent with the results of independent analysis
by the Joint Research Centre and the country’s
own national risk assessment (
195
). Guidelines are
available on how to monitor and evaluate
adaptation policy, but it is still difficult to establish
how much public money is spent overall on
climate adaptation and to measure results.
Furthermore, personnel changes at the Ministry of
the Environment during 2024 have weakened the
Ministry's expertise capacity and, as a result,
finding sufficient financing from appropriate
(
194
) Úrad vlády Slovenskej republiky, 2023,
Programové
vyhlásenie vlády Slovenskej republiky,
Link.
(
195
)
SWD(2023) 932 final; p. 266.
Climate adaptation and preparedness
Slovakia is vulnerable to the impacts of
climate change resulting from extreme
weather
events,
including
increased
precipitation and rising temperatures, which
increase the risk of flooding.
Climate risks
directly affect Slovakia’s economy and society.
Between 1980 and 2023, Slovakia recorded
EUR 1.95 billion in economic losses caused by
extreme weather- and climate-related events.
However, only 4% of the economic damages over
that period were insured. In 2022, 20% of
Slovakia’s area was affected by drought.
National policy measures related to
adaptation and preparedness have been
further strengthened over recent years, but
additional efforts are still required.
Slovakia
has been proactive in addressing climate-change
impacts over the past few years and continued to
make progress between 2021 and 2023. A crucial
step was the approval of the national adaptation
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sources in Slovakia and via EU funding remains a
challenge in sectors that need to adapt. Other
barriers to successful implementation, in addition
to insufficient funding, are low awareness at
regional and local level and an inadequate degree
of interministerial cooperation (especially for
mainstreaming climate adaptation into sectoral
policies and plans). Further efforts are needed to
enhance the climate resilience of infrastructure
and to make more progress on adaptation
solutions.
Water resilience
Slovakia needs to continue its efforts to
improve its floods resilience.
The floods of
September 2024, which caused damage in several
regions of Slovakia, demonstrate the urgency.
Slovakia’s total economic losses caused by floods
between 1980 and 2023 are estimated at
EUR 603 million (
196
). Improving sustainable water
management and flood protection, by prioritising
nature-based solutions and river restoration, is
crucial to the competitiveness of many economic
sectors. Slovakia is not among the EU Member
States that suffer major water stress. The water
exploitation index plus (WEI+) was 0.4 in 2022.
Manufacturing (51%) and public water supply
(32%) had the highest water consumption in
Slovakia in 2022. Slovakia’s water productivity is
above the EU average, standing at EUR 152 per m
3
of abstracted water in 2022 (
197
).
The water quality
of Slovakia’s surface
water bodies shows a deteriorating trend in
terms of their ecological and chemical
status.
Slovakia’s
third river basin management
plans, covering 2022-2027, show a decrease in
the number of surface water bodies classified as
having good (or better) ecological status/potential,
from 56% (second plan) to just 41% (third plan).
Agricultural eutrophication still places great
pressure on Slovakia’s surface water bodies.
Hydromorphological alterations, i.e. changes to the
shape and flow of water bodies, such as breaking
the continuous flow of a river, are another source
(
196
) EIOPA, 2024,
Dashboard on insurance protection gap for
natural catastrophes,
Link.
(
197
) Measured as GDP in 2010 chain linked volumes over total
fresh surface water abstracted in cubic metres.
of pressure. Emerging issues are invasive species,
sediment management and fish management. As
regards the
chemical status of Slovakia’s surface
water bodies, the deterioration between the
second and the third river basin management
plans is even greater. The proportion of surface
water bodies with a good chemical status fell from
98% to just 71%. This is reported to be mostly due
to improved monitoring and increased confidence
in classification. The pressures come from
ubiquitous, persistent, bio-accumulative and toxic
substances, which are difficult to address, and
from pollution from industrial point sources,
organic pollution from municipal point sources and
industry/agriculture.
91%
of
Slovakia's
groundwater bodies are reported to have a good
quantitative status in the third plan, showing a
significant improvement since the second plan.
87% of Slovakia’s groundwater bodies are
reported to have a good chemical status, also
showing a significant improvement since the
second plan. Though there has been an apparent
improvement in status, a significant sustained
upwards trend in concentrations of pollutants
(nutrients and total organic carbon) is reported.
The longstanding lack of environmental
assessment of numerous hydroelectric power
plants has resulted in the deterioration of
Slovakia’s rivers,
especially the river Hron.
Slovakia needs to remedy the situation as soon as
possible (
198
).
Slovakia’s wastewater treatment
remains a
cause for concern.
Despite improvements in
compliance over the years, mainly thanks to EU
funding, Slovakia has experienced difficulties in
implementing the Urban Wastewater Treatment
Directive. Its incomplete implementation forced
the Commission to take legal action against
Slovakia in 2016 and again in 2021. Both
infringement cases are advancing, and it is likely
that they will reach the Court. In 2020, 319
agglomerations complied with the Directive's
requirements in Slovakia, while 37 agglomerations,
generating 246 150 p.e. of urban waste water, did
not. The Directive was revised in 2024 (
199
),
strengthening existing treatment standards and
(
198
) As the current situation breaches the Environmental Impact
Assessment Directive, the Water Framework Directive and
the Habitats Directive, an infringement case against Slovakia
is ongoing.
(
199
) Directive 2024/3 019 of 27 November 2024.
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introducing new requirements such as additional
treatment of micropollutants in urban waste
water. Slovakia has until 31 July 2027 to
transpose it into its legal system.
With a view to achieving the environmental
targets
under
EU water
legislation,
Slovakia’s water investment gap
amounts to
EUR 223 million per year (0.2% of GDP), with
almost half relating to waste water (105
million per year).
Slovakia’s annual water
investment needs stand at an estimated EUR 506
million (in 2022 prices), see Graph A9.2. This
includes both the water industry and water
protection/management. The largest part of the
total annual need, EUR 231 million, relates to
wastewater management, including the additional
costs of the revised Directive. Slovakia’s current
annual water investments, over the period 2021-
2027, are estimated to be around EUR 282 million
per year (in 2022 prices). Of the total financing,
38.1% is provided by the EU multiannual financial
framework (mostly through cohesion policy), with
small support from the Recovery and Resilience
Facility (2.8%). The bulk of the financing comes
from national sources (59%) (
200
).
as regulating water cycles, maintaining soil health,
and sequestering carbon.
Nature degradation creates significant risks
to Slovakia's economy and competitiveness,
as it is one of the Member States with a
significant
dependency
on
ecosystem
services.
39% of Slovakia’s gross value added
has a high direct dependency on ecosystem
services. Though this is lower than the EU average
of 44%, several sectors, such as agriculture,
forestry, fisheries, mining, construction, water
utilities and healthcare delivery (see Graph A9.1),
are particularly dependent on ecosystem services.
100% of the gross value added of these sectors is
directly dependent on those services. This means
that failure to maintain the capacity of
ecosystems to deliver services could entail
significant costs or even stop production in these
sectors. Protecting and restoring key ecosystems
would ensure that the long-term competitiveness
of these economic sectors is preserved.
Biodiversity and ecosystems
The state of nature and ecosystems remains
under pressure, affecting Slovakia’s climate
resilience.
Infrastructure development, such as
roads, motorways, small hydroelectric power
plants,
water
reservoirs
and
anti-flood
infrastructure, causes fragmentation of natural
habitats, and thus has a major negative impact on
biodiversity. According to the latest available data
(2018), only 37.6% of Slovakia’s habitats have a
good status, higher than the EU average of 14.7%.
Similarly, the conservation status of species is
concerning, with 23% reported as having a good
status, lower than the EU average of 27.5%. This
situation has severe implications for Slovakia’s
climate resilience, as the loss of biodiversity
impairs ecosystems’ ability to provide services that
help mitigate the effects of climate change, such
(
200
) Water investment levels are estimated through tracking EU
funds, EIB projects and national expenditure (EPEA accounts,
Eurostat).
77
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Graph A9.1:
Direct dependency(1) on ecosystem
services(2) of the gross value added generated by
economic sector in 2022
0%
Agriculture
Forestry
Fishery and acquaculture
Mining and metals
Construction
Water utilities
Healthcare delivery
Aviation travel and tourism
Food beverages and tobacco
Supply chain and transport
Public services and others
Electricity
Chemical and materials industry
Electronics
Oil and gas
Real estate
Heat utilities
Automotive
Retail consumer goods and…
Information technology
Banking and capital markets
Insurance and asset…
Digital communications
High
Medium
Low
20%
40%
60%
80% 100%
concerns Slovakia’s failure to take measures
to
protect the Capercaillie bird species (
202
).
Slovakia’s
investment needs for biodiversity
and ecosystems are estimated at EUR 781
million per year
(in 2022 prices) over the period
2021-2027 (see Graph A9.2). The current level of
financing for biodiversity and ecosystem
conservation in Slovakia is around EUR 364 million
per year. The existing gap (EUR 416 million per
year, corresponding to 0.38% of Slovakia’s GDP)
puts at risk the country’s commitment to global
biodiversity agreements and undermines its long-
term economic and social development.
Nevertheless,
Slovakia
recently
diverted
substantial cohesion funds away from nature
protection and stopped the national cofinancing of
several LIFE projects concerning nature protection
and restoration.
Graph A9.2:
Investment needs and gaps in EUR
million, in 2022 constant prices
(1) Dependency based on the sector’s own operations,
excluding value chain operations within countries and across
international value chains. A high dependency indicates a high
potential exposure to nature-related shocks or deteriorating
trends, which means that the disruption of an ecosystem
service could cause production failure and severe financial
loss.
(2) Ecosystem services are the contributions of ecosystems to
the benefits that are used in economic and other human
activity, including provisioning services (e.g. biomass
provisioning or water supply), regulating and maintenance
services (e.g. soil quality regulation or pollination), and cultural
services (e.g. recreational activities).
Source:
Hirschbuehl et al., 2025,
The EU economy's
dependency on nature,
Link.
900.0
800.0
700.0
600.0
500.0
400.0
300.0
200.0
100.0
-
Biodiversity
Baseline
Gap
Water
Focused action on nature protection and
restoration is needed to
meet Slovakia’s
nature restoration targets.
Slovakia’s 2030
National Biodiversity Strategy and Action Plan is
currently in preparation. It has not yet submitted
national targets to the Convention on Biological
Diversity’s online reporting
tool. In 2022, 37.4% of
Slovakia's territory was protected land area
(including Natura 2000 and other nationally-
designated protected areas), which is above the EU
average of 26%. However, Slovakia has not yet
drawn up the conservation measures to ensure
those areas' effective protection and restoration.
An infringement procedure concerning this matter
is ongoing (
201
). Another ongoing infringement case
(
201
) European Commission, 2022, February infringements
package: key decisions,
Link.
Source:
European Commission, DG Environment,
Environmental investment needs & gaps assessment
programme, 2025 update.
Sustainable agriculture and land use
Slovakia’s
carbon removals fall short of the
level of ambition needed to meet its 2030
target for land use, land-use change and
(
202
) Court of Justice of the European Union, 2022, Press release
No 107/22,
Link.
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forestry (LULUCF).
Removals by Slovakia’s
LULUCF sector have increased considerably since
2018. To meet its 2030 LULUCF target, additional
carbon removals of -0.5 million tonnes of CO
2
equivalent (CO
2
eq) are needed (
203
). The latest
available projections show a gap to target of 1.9
million tonnes of CO
2
eq for 2030 (
204
). Therefore,
additional measures need to be applied to reach
the 2030 target.
Slovakia’s agriculture is still a
major source
of greenhouse gas emissions and continues
to have a significant impact on air, water
and soils.
Slovak agriculture, together with
forestry, represents around 2.2% of the gross
value added of the country’s economy (
205
). It plays
a crucial role by utilising the resources of rural
areas to provide food and public assets, including
environmental, landscaping and social assets. In
2022, agriculture was responsible for a total of
1.9 million tonnes of CO
2
eq, accounting for around
5.1% of the country’s total emissions. This
includes 1.5 million tonnes of CO
2
eq from
livestock. Slovakia's utilised agricultural area (UAA)
decreased slightly between 2012 (1.9 million
hectares) and 2023 (1.8 million hectares). Nutrient
losses from agriculture, mainly from mineral
fertilisers and manure, are a significant
environmental concern and pose a threat to
human health. This is reflected in the country’s
nitrogen balance of 44.9 kg of nitrogen per
hectare of UAA (in 2021). Furthermore, according
to data from the Nitrates Directive, 12% of
groundwater monitoring stations in Slovakia
recorded average nitrate concentrations above
50 mg/l between 2016 and 2019, exceeding the
healthy threshold for human consumption. The
livestock density index was 0.33 in 2020, and is
thus below the EU average of 0.75. Ammonia
emissions have shown a decreasing trend between
2018 (29.5 thousand tonnes annually) and 2022
(21.5 thousand tonnes annually). 7% of monitoring
sites in Slovakia reported pesticide thresholds
being exceeded in surface waters (based on 2017-
2022 data), which is significantly lower than the
European average of 29% (
206
).
Slovakia is transitioning to a sustainable
food system by implementing policies to
reduce the environmental impact of
agriculture.
In 2022, 4% of its agricultural land
had landscape features such as woods and non-
productive grasslands, below the EU average of
5.6%. Organic farming, which reduces the use of
synthetic fertilisers and pesticides, has been
steadily increasing in Slovakia since 2005 and
made up 13.7% of its agricultural land in 2022.
Slovakia’s
common agricultural policy (CAP)
strategic plan is aimed at ensuring the sustainable
competitiveness and resilience of farms and a
fairer income for agricultural producers, with
particular attention paid to small-scale and young
farmers. The plan also focuses on improving the
protection of natural resources and the climate. It
contributes substantially to improving the vitality
and quality of life in rural areas through
investments, knowledge transfer and innovation.
Slovakia faces major challenges relating to
the management of natural resources and
biodiversity loss, particularly given the
intensification of agricultural production and
the impacts of climate change.
To deliver on
higher environmental goals, Slovakia applies
stricter mandatory standards to maintain the good
agricultural and environmental conditions (GAECs)
of farmland. More than EUR 513 million in EU
funds are reserved for Slovakia’s farmers
who
voluntarily commit to more environmentally
ambitious activities on agricultural land, as part of
the new whole-farm eco-scheme. This includes
practices such as improving soil structure, setting
aside non-productive areas and sowing them with
pollinator mixtures, limiting the maximum area of
cultivated land or postponing mowing. Slovakia
aims to cultivate 20% of its agricultural land
under organic farming by 2030. The CAP strategic
plan helps this process by providing financial aid
to 270 000 hectares (14% of the agricultural
land). Under rural development, about 46% of
funds are reserved for environmental and climate-
related
objectives,
such
as
agri/forest
environmental and climate measures. On more
than 27% of the agricultural area, practices
resulting in sustainability and the reduced use of
(
206
) EEA, 2024, Pesticides in rivers, lakes and groundwater in
Europe,
Link.
(
203
) National LULUCF targets of the Member States in line with
Regulation (EU) 2023/839.
(
204
) Climate Action Progress Report 2024 COM/2024/498.
(
205
)
Share of agriculture in GDP - Data Portal - United Nations
Economic Commission for Europe
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pesticides are applied. Furthermore, following the
Russian invasion of Ukraine, the plan aims to
increase investments in the production of
renewable energy (
207
).
(
207
) Slovakia
CAP Strategic Plan,
Link.
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Table A9.1:
Key indicators tracking progress on climate adaptation, resilience and environment
Climate adaptation and preparedness:
Drought impact on ecosystems
[area impacted by drought as % of total]
Forest-fire burnt area
(1)
[ha, annual average 2006-2023]
Economic losses from extreme events
[EUR million at constant 2022 prices]
Insurance protection gap
(2)
[composite score between 0 and 4]
Heat-related mortality
(3)
[number of deaths per 100 000 inhabitants in 2013-
2022]
Sub-national climate adaptation action
[% of population covered by the EU Covenant of Mayors
for Climate & Energy]
Water resilience:
Water Exploitation Index Plus, WEI+
(4)
[total water consumption as % of renewable freshwater
resources]
Water consumption
[million m
3
]
Ecological/quantitative status of water bodies
[% of water bodies failing to achieve good status]
Surface water bodies
Groundwater bodies
Biodiversity and ecosystems:
Conservation status of habitats
(6)
[% of habitats having a good conservation status]
Common farmland bird index
2000=100
Protected areas
[% of protected land areas]
Sustainable agriculture and land use:
Bioeconomy's added value
(7)
[EUR million]
Landscape features
[% of agricultural land covered with landscape features]
Food waste
[kg per capita]
Area under organic farming
[% of total UAA]
Nitrogen balance
[kg of nitrogen per ha of UAA]
Nitrates in groundwater
(8)
[mgNO
3
/l]
Net greenhouse gas removals from LULUCF
[Kt CO
2
-eq]
-
9.9
50.8
18.3
(9)
(5)
Slovakia
2018
1.4
29
-
-
32
2019
0.38
29
33
-
32
2020
0.02
29
21
-
32
2021
0.6
29
40
-
32
2022
20.26
29
85
1.25
32
2023
0.67
29
4
1.25
EU-27
2018
6.77
2021
2.76
24 142
62 981
16
19
19
19
16
17
41
44
Slovakia
2018
0.5
2019
0.3
2020
0.4
2021
0.3
2022
0.4
2023
-
EU-27
2018
4.5
2021
4.5
309
206
312
206
205
-
-
-
-
-
-
-
Slovakia
59%
9%
-
-
-
-
-
-
EU-27
59%
93%
2018
37.6
83.5
-
2019
-
-
-
2020
-
-
-
2021
-
-
37
2022
-
-
37
2023
-
-
-
2018
14.7
72.2
-
2021
-
74.4
26
Slovakia
2018
3 759
-
2019
3 509
-
2020
3 608
-
2021
4 069
-
2022
2023
EU-27
2018
634 378
2021
716 124
4
-
-
10.3
51.2
16.2
4 994 -
107
11.7
42.2
18.6
7 179 -
101
13.5
44.9
17.9
7 211 -
106
13.7
-
-
7 226
-
-
7.99
-
-
-
256 077 -
240 984
-
-
4 231 -
(1) The data show the average for the timespan 2006-2023 based on EFFIS - European Forest Fire Information System.
(2) Scale: 0 (no protection gap)
4 (very high gap). EIOPA, 2024, Dashboard on insurance protection gap for natural catastrophes.
(3) van Daalen, K. R. et al., 2024, The 2024 Europe report of the Lancet Countdown on health and climate change: unprecedented
warming demands unprecedented action. The Lancet Public Health.
(4) This indicator measures total water consumption as a percentage of the renewable freshwater resources available for a given
territory and period. Values above 20% are generally considered to be a sign of water scarcity, while values equal or greater than
40% indicate situations of severe water scarcity.
(5) European Commission, 2024, seventh Implementation Report from the Commission to the Council and the European
Parliament on the implementation of the Water Framework Directive (2000/60/EC) and the Floods Directive (2007/60/EC) (Third
River Basin Management Plans and Second Flood Risk Management Plans).
(6) For this indicator, the EU average includes figures for the UK under the previous configuration, EU-28.
(7) European Commission, 2023, EU Bioeconomy Monitoring System dashboards.
(8) Nitrates can persist in groundwater for a long time and accumulate at a high level through inputs from anthropogenic sources
(mainly agriculture). The EU drinking water standard sets a limit of 50 mg NO
3
/L to avoid threats to human health.
(9) Net removals are expressed in negative figures, net emissions in positive figures. Reported data are from the 2024
greenhouse gas inventory submission. 2030 value of net greenhouse gas removals as in Regulation (EU) 2023/839
Annex IIa.
Source:
Eurostat, EEA.
81
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FAIRNESS
ANNEX 10: LABOUR MARKET
Despite the strong performance of Slovakia’s
labour market, structural challenges are
having
a
detrimental
impact
on
competitiveness and economic growth.
Positive labour-market developments hide regional
disparities,
while
long-term
and
youth
unemployment remain high. The labour market is
also hampered by an ageing population, net
emigration of talent and inactivity among certain
ethnic groups. If we are to achieve a more
inclusive labour market and boost economic
growth, key challenges include: i) enhancing job
opportunities, ii) addressing skill mismatches iii)
strengthening training and education iv)
encouraging underrepresented groups to enter
work and v) better preparation for the transition to
work.
The labour market is performing well overall,
but challenges persist.
The employment rate
stood at 78.1% in 2024, remaining above the EU
average (75.8%) and exceeding
Slovakia’s national
target for 2030 (76.5%). However, regional
disparities remain: in 2023, in eastern Slovakia
only 71.6% of the working-age population was
employed compared to 85.8% in the capital region.
The unemployment rate reached a historically low
level, 5% in Q1-2025 (vs 5.8% for the EU) (
208
). At
the same time, spending on unemployment benefit
accounted for 0.63% of gross domestic product,
the highest among the Visegrad countries (vs
1.05% EU average). Regional disparities are also
clear in the availability of basic services, decent
housing, educational outcomes and higher poverty
rates. The marginalised Roma population is
disproportionately affected by these disparities.
Despite signs that shortages in the labour
market are easing, the problem is still
apparent in certain sectors.
The job-vacancy
rate dropped to 1.2% in Q3-2024, which was
higher than its pre-pandemic level (1.0% in Q4-
2019 and 0.7% in Q4-2020) but far below the EU
average of 2.3%.
In 2024, Slovakia’s job vacancy
rate in transformation sectors was 0.8% (EU:
1.8%) in manufacturing, 3.6% (EU: 1.7%) in
electricity, gas steam and air-conditioning supply,
1.0% (EU: 1.6%) in water supply and waste
(
208
) Eurostat - employment and unemployment annual statistics
management, 0.4% (EU: 3.1%) in construction, and
2.1% (2.2%) in transportation and storage. The
occupational groups with the highest occurrence of
shortage occupations were: stationary plant and
machine operators, building and related trades
workers (excluding electricians) and drivers and
mobile plant operators (
209
). Despite relatively low
job vacancy rates in their sectors, the proportion of
employers who reported labour shortages as one
of the main factors limiting their production was
slightly above the EU average in construction
(31% in Q4-2024), industry (23%), and services
(29%) (
210
). High vacancy rates were recorded in
human health and social work activities; education;
arts, entertainment and recreation; public
administration and defence; compulsory social
security; administrative and support services (
211
).
Labour market slack (
212
) decreased from 7.2% to
6.8% between Q3-2023 and Q3-2024, well below
the EU average (10.9%). The fall in labour market
slack was driven mainly by a decrease in the
proportion of unemployed people.
Slovakia has
moderate skills mismatches, with some
variation by sector.
The skills-mismatch (
213
)
rate has remained approximately unchanged in
2023 compared to 2022, at approximately 21
points and slightly above the EU average (19.6
points). In 2023, 22.9% of workers with a higher-
education qualification was employed in
occupations that did not require such a
qualification. This proportion was close to the EU
average but varied between sectors. The over-
qualification rate is particularly high in public
administration, defence and compulsory social
security, in which it reaches 35.9% compared to
the EU average of 24.2%. For instance, the share
(
209
) Eurostat,
Labour Market Information: Slovakia - European
Union
(
210
) ECFIN European Business and Consumer Surveys
(
211
) Eurostat,
Labour Market Information: Slovakia - European
Union
(
212
) The labour market slack is the underutilisation of labour
resources, including unemployment, underemployment, and
those available for work but not actively seeking
employment.
(
213
) Skills mismatch is the discrepancy between workers' skills
and labour market needs. It is not only a problem
encountered by jobseekers; it also affects employees
working in positions below their levels of qualification or
outside their fields of study, and concerns some groups of
older workers that face difficulties in keeping their skills up
to date.
82
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of over-qualified workers in the construction
sector, at 14.4%, is the third lowest in the
European Union.
The 2023 OECD programme for the
international
assessment
of
adult
competencies (PIAAC) reported substantial
skill losses among adults (see Annex 12).
Over half of businesses state that their workforce
has some degree of skill gap (54%) (
214
). Slovakia
is affected heavily by automation, a trend that is
set to continue. It would be beneficial to continue
to provide more upskilling and reskilling
opportunities to an increasing share of the
population.
Graph A10.1:
Key rates: activity, unemployment,
long-term unemployment, youth unemployment,
NEETs
SK
40
35
30
25
20
15
10
5
0
%
%
83
82
81
80
79
78
77
76
75
74
unemployed people accounted for almost two
thirds of jobseekers in 2023 (65.1% vs EU:
35%)(
215
). In 2024, the long-term unemployed
represented 3.5% (EU: 1.9%) among all
unemployed. Nearly half (46.5%) of all
unemployed people have been looking for a job for
two years or more. Many women and marginalised
Roma communities are not active in the labour
market. The youth (age group 15-24)
unemployment rate in Slovakia was 16.4% in Q1-
2025 (
216
), well above the EU average of 14.5%.
The proportion of young people not in
employment, education or training (NEETs)
improved, falling from 12.3% in 2022 to 11.2% in
2023. The ESF+ has been funding activities to
reduce the long-term unemployment rate (in the
form of Programme Slovakia 2021-2027). A
budget of EUR 641 million has been assigned in
the form of tailored-made and individualised
support to disadvantaged jobseekers. To reduce
youth unemployment, Slovakia adopted a national
youth guarantee plan in 2022, which includes
measures such as: i) individualised counselling, ii)
mentoring, iii) an information campaign, iv) tools
for the profiling of young jobseekers, v)
development and assessment of further education
and skills (digital, green and entrepreneurial skills),
and vi) support for job creation, graduate
traineeships and self-employment.
Lower-skilled workers, young people and
marginalised Roma communities are often
inactive on the labour market.
Although the
gap in employment between persons with and
without disabilities is narrowing, it remains
significant at 22.1 percentage points (pps) (vs the
EU average of 21.5 pps in 2022). Slovakia has not
yet set an employment target for persons with
disabilities. A third of young persons with
disabilities is in the NEETs category. Slovakia has
one of the highest unemployment rates for low-
skilled young people in the EU. The unemployment
rate among people from disadvantaged groups,
such as the marginalised Roma communities, rose
from 44.3% in 2020 to 53.4% in 2022 (more than
double the EU average of 19%). Moreover, the
share of young Roma NEETs was 65% in 2020,
(
215
) The long-term unemployment rate represents the percentage
of people unemployed for 12 months or more within the
labour force.
(
216
) Eurostat, Unemployment rate by sex - age group 15-24,
https://ec.europa.eu/eurostat/databrowser/view/teilm021/def
ault/table?lang=en&category=t_labour.t_employ.t_lfsi.t_une
2010
2011
2020
2021
2009
2012
2013
2014
2015
2016
2017
2018
2019
2022
2023
Activity rate 20-64 (rhs)
Unemployment rate 15-74 (lhs)
Long-term unemployment rate 15-74 (lhs)
Youth unemployment rate 15-24 (lhs)
NEET rate 15-29 (lhs)
(1) Activity rate and Employment rate (% of population), total,
ages 20-64
Unemployment rate and long-term unemployment rate (% of
labour force), total, ages 15-74
Youth unemployment rate (% of labour force), total, ages 15-
24
NEET: Not in employment, education or training (% of
population), total, ages 15-29
Source:
Eurostat, LFS [lfsi_emp_a, une_rt_a, edat_lfse_20,
une_ltu_a]
Long-term
unemployment
and
youth
unemployment rates remain high.
Long-term
(
214
) OECD (2024), PIAAC Employer Module, Do Adults Have the
Skills They Need to Thrive in a Changing World?: Survey of
Adult Skills 2023, OECD Skills Studies, OECD Publishing, Paris,
https://doi.org/10.1787/b263dc5d-en, p. 175
2024
83
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compared to 14% in 2020 in the overall age group
(15-24); 77% of young Roma women are not in
work, education or further training compared to
52% of young Roma men (
217
). The factors
contributing to the high inactivity of the
marginalised Roma population on the labour
market include i) lack of job opportunities, ii)
widespread discrimination, iii) social exclusion, iv)
high rates of early school leaving, and v) lack of
access to basic services such as water, sanitation
and decent housing.
While the gender employment gap is
relatively low, Slovakia has one of the
highest gender pay gaps in the EU.
With 59.9
points out of 100, Slovakia ranks low on the
Gender Equality Index 2024 (
218
), which is 11.1
points below the EU average. Although the gender
employment gap is relatively low (7.7 pps vs EU:
10.2 pps), the gender wage gap is significant for
women (aged above 30) with childcare duties. The
difference between average gross hourly earnings
of male and female paid employees was 17.7% in
2022 (vs EU average 12.7%). Caring duties and
household work are not shared equally between
women and men: (most of these tasks are done by
women) (
219
). The motherhood penalty, i.e. the loss
in lifetime earnings experienced by women raising
children, is one of the main causes of the gender
pay gap. Increasing the availability of high quality
and affordable childcare would help keep more
women in work. In contrast with kindergartens for
children aged 3-6, which benefited greatly from
the recovery and resilience plan (RRP), Slovakia
has one of the lowest enrolment rates of children
under the age of 3 in formal childcare (5.1% in
2024 vs EU: 39.2% in 2024)(
220
). Some progress
has been made in increasing the participation rate
for the under 3s (increase from 1% in 2023 to
5.1% in 2024), bringing Slovakia closer to its
commitment to increase the enrolment rate based
on the Barcelona target (5.8%).
Increasing the availability of childcare for
children under the age of 3 and increasing
flexible working arrangements, such as part-
time work, to support women and parents
(
217
) The social and employment situation of Roma communities
in Slovakia, Study requested by the EMPL committee, 2020
(
218
) The data for 2024 Index is mostly from 2022.
( ) The Gender Equality (EIGE) index, 2023
219
with small children are key.
Maternity leave in
Slovakia (34 weeks), combined with the possibility
of parental leave until the child turns three, is long
compared to other countries. Extended maternity
leave may unintentionally affect women's
earnings. Although longer leaves are associated
with higher wage gaps (though not statistically
significant), higher nursery attendance slightly
lowers gaps, highlighting the importance of early
childcare services (
221
). Only approx. 6% of jobs
available on the Slovak labour market are part-
time and the legislation in this area is weak. In
2024, the part-time employment represented only
3.3% (
222
), with women reaching higher rates than
men (5% vs 1.8% men). Employers are often not
willing to create short-term work contracts due to
high taxation of part-time work compared to other
EU countries; often part-time is involuntary not
ensuring basic living cost.
Slovakia’s population is ageing rapidly,
posing a challenge to the country’s
competitiveness.
The population has been
decreasing since 2020 (
223
). Additionally, between
2019 and 2050, the old-age dependency ratio of
Slovakia is projected to increase at a particularly
rapid pace, with the rate in 2050 projected to be
2.2 times that of 2019 (
224
). This is in part driven
by the structural emigration of young people. This
increases regional disparities and aggravates the
shortage of skilled labour, especially in sectors
such as healthcare and education, which are
already understaffed. Labour shortages, which are
set to continue, show the benefits of measures to
encourage people currently outside the labour
market into work.
Real wages rebounded in 2024, but the real
growth between 2022-2025 was one of the
lowest in the EU.
Real wages increased by 3.4%
(
221
) Gender Wage Gaps in Slovakia and Europe, Policy Brief
17/2024,
https://nbs.sk/dokument/3daf4133-e255-41f2-
b2f6-c4ca336a5c72/stiahnut?force=false
(
222
) Eurostat,
https://ec.europa.eu/eurostat/statistics-
explained/index.php?title=Part-time_and_full-
time_employment_-_statistics
(
223
) Eurostat - Population change - Demographic balance and
crude rates at national level
(
224
) Eurostat -
https://ec.europa.eu/eurostat/statistics-
explained/index.php?title=Ageing_Europe_-
_statistics_on_population_developments
(
220
) Social Scoreboard - Eurostat data
84
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in 2024 and are forecast to increase by 0.7% in
2025, following significant losses in 2022 and
2023 (
225
). Real wage growth is constrained by
persistently high inflation, which is forecast to be
among the highest in the euro area. The loss of
purchasing power experienced by households
between 2021 and 2023 contributed to a
significant decline in real gross disposable
household income. The consolidation package that
took effect in January 2025 included an increase
in VAT rates, directly affecting consumers.
Graph A10.2:
Youth: in education and training,
employment rate, unemployment rate,
unemployment-to-population ratio, NEET
#REF!
%
40
35
30
25
average in 2024). It would be beneficial to bolster
efforts to meet Slovakia’s 2030 Digital Decade
targets. Slovakia’s 2030 target for basic digital
skills is below
that of the EU (70% vs 80% EU’s
target). In terms of the working population, the
proportion increased to 60.5% (aged 25 to 64),
although this is still below the EU level of 64.7%.
If businesses are to modernise their
production processes and service delivery it
would be beneficial to improve people’s
digital skills.
Slovakia lags behind in business
uptake of digital technologies (cloud, data
analytics and AI). This also applies to the
proportion of small and medium-sized enterprises
(SMEs) with at least a basic level of digital
intensity. ICT specialists in Slovakia make up 4.6%
of the working population in 2024 (vs 4.2% in
2023), slightly below the EU average of 5%. The
proportion of female ICT specialists is low (17.4%
vs EU average of 19.4%). To meet its target of 6%
of the population being ICT specialists by 2030
(the EU target is 10%), it would be helpful to
strengthen initiatives in this area.
Employment in Slovakia’s energy-intensive
industries decreased to 6.9% in 2024 of
employment (3.5% in the EU) but remains
among the highest in the EU.
Slovakia still has
the EU’s highest proportion of employment in the
automotive sector as a share of total
manufacturing (16.2% of employees in
manufacturing).
The
transition
towards
electromobility represents a major challenge for
the country. Moreover, the job-vacancy rate in
construction, a key sector for the green transition,
is substantially lower than the EU average (0.4%
vs 3.6% in EU in 2023). Moreover, 73% of SMEs in
the sector reported that skills shortages are
holding them back in general business activities
(
226
). According to the European Labour Authority
(
227
), labour shortages were reported in 2023 in
many occupations that required specific skills or
knowledge for the green transition (
228
), including
%
80
70
60
50
20
15
10
40
30
20
5
0
10
0
Source:
Eurostat, LFS [edat_lfse_18, lfsi_emp_a, une_rt_a,
lfsi_act_a, edat_lfse_20]
The workforce lacks digital skills and ICT
specialists, posing a challenge to the
transition towards electromobility.
The
employment rate of ICT specialists (percentage of
total employment) in Slovakia reached 4.6% in
2024 (vs EU: 5.0%). However, the proportion of
people with basic digital skills fell in 2023
compared to 2022. The share of individuals with
at least basic digital skills, fell from 55.2% in
2021 to 51.3% in 2023 (below 55.6% of EU
(
225
) For nominal wage growth, pay per employee is considered. It
includes: i) Wages and salaries payable in cash or in kind;
and ii) Social contributions payable by employers. For real
gross wages, the deflator used is HICP. Real wages using this
deflator then can differ from real wages shown in AMECO
(that uses private consumption as deflator). Data for 2024
and 2025 are based on the European Commission Autumn
2024 economic forecast.
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Unemployment rate (lhs)
NEET (lhs)
Employment rate (rhs)
Unemployment ratio (lhs)
In education, training (rhs)
(
226
) Eurobarometer on skills shortages, recruitment and retention
strategies in small and medium-sized enterprises.
(
227
) Based on the European Labour Authority 2024 EURES Report
on labour shortages and surpluses 2023, i.e. data submitted
by the EURES National Coordination Offices.
(
228
) Skills and knowledge requirements are based on the
European Skills Competences and Occupations (ESCO)
taxonomy on skills for the green transition.
85
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building and related electricians,
workers and house builders.
insulation
Boosting digital skills helps older people
access the labour market and prevents long-
term unemployment.
Older people are more
likely to become long-term unemployed. In 2023,
74% of unemployed older individuals were long-
term unemployed, which is the highest rate in the
EU. Older people with lower levels of qualification
have worse labour market outcomes and more
challenging working conditions. In 2023, EU-27
figures for employment among older individuals
with lower educational qualifications was 27.6 pps
below those with post-secondary education,
whereas in Slovakia the difference was more than
40 pps. Education and training policies
ideally
including search assistance and counselling
are
among the most effective tools for promoting the
employment of older workers.
In Slovakia the rate of transition from
unemployment to employment is much lower
(below 10% per quarter) than in countries
with high training levels (transition rate
above 30%).
Boosting the capacity of public
employment services would be beneficial in this
context. Digital skills can help people obtain jobs.
Given the limited digital skills of older adults and
the increasing importance of digital tools
(especially since the COVID-19 pandemic),
Slovakia has enacted policies to improve the
digital skills of older people, supported by the
digital decade policy programme, with funding
from the Recovery and Resilience Facility.
Bogus self-employment remains high.
The
following factors increase the risk of in-work
poverty: being self-employed, having lower
educational qualifications, working part-time or on
a temporary contract living in a household with
low work intensity (
229
) and living with children. The
rate of full-time workers in Slovakia increased
from 4.2% in 2019 to 9.3% in 2023, indicating a
rise in the proportion of vulnerable workers. In
contrast, the in-work poverty rate of part-time
workers decreased from 16.4% in 2017 to 3.2% in
2023. However, the positive effect of this
(
229
) The work intensity of a household is the ratio of the total
number of months that all working-age household members
have worked during the income
reference year
and the total
number of months the same household members
theoretically could have worked in the same period.
improvement remains limited since Slovakia has
one of the lowest proportions of part-time workers
(3.3% in 2023) in the EU (17.1% in 2023).
Additionally, Slovakia’s high proportion of
dependent self-employed people creates a
significant risk of poor working conditions and
bogus self-employment.
Slovakia has the EU’s
highest proportion of self-employed people who
display both characteristics of dependency
(economic and organisational). Self-employed
people can opt out from social contribution
schemes and pay six times less in tax and social
contributions for the first year of activity and 2.3
times less for subsequent years compared to other
workers, which has a significant impact on the
state’s taxation and social security revenue. The
main causes of bogus self-employment are: i) the
desire of firms to circumvent the legal obligations
of dependent employment relationships (e.g.
minimum wages, working time legislation,
redundancy protection), ii) the gap in taxation
between the employment and self-employment, iii)
the rise in gig and platform work, iv) complex sub-
contracting chains and v) the lack of a legal clear
distinction between employment and self-
employment.
Graph A10.3:
Employment by type (permanent,
temporary, self-employed), year-on-year changes
SK
150
ths
100
50
0
-50
-100
-150
-200
(1) Employment (thousand), total, ages 20-64, year-on-year
change based on non-seasonally adjusted data. Self
employment is defined as the total of self-employed persons
and contributing family workers..
Source:
Eurostat, LFS [lfsq_egaps, lfsq_etgaed]
86
2007-Q4
2008-Q4
2009-Q4
2010-Q4
2011-Q4
2012-Q4
2013-Q4
2014-Q4
2015-Q4
2016-Q4
2017-Q4
2018-Q4
2019-Q4
2020-Q4
2021-Q4
2022-Q4
2023-Q4
2024-Q4
Permanent employees
Self employment
Temporary employees
Overall
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ANNEX 11: SOCIAL POLICIES
Despite overall good social conditions in
Slovakia, the risks of poverty and social
exclusion have been increasing almost
among all age groups since 2020.
Significant
challenges remain for the social inclusion of Roma
and other vulnerable groups. Sustained efforts are
needed to reach the national poverty reduction
target by 2030.
The rate of poverty and social exclusion
remains below the EU average, but
challenges persist.
Although the at-risk-of-
poverty or social exclusion (AROPE) rate increased
to 18.3% in 2024 (from 17.6% in 2023), it
remains below the EU average (21% in 2024).
However, the share of people living in severe
material and social deprivation (SMSD) increased
to 7%, exceeding the EU average (6.8% in 2023).
This was partly driven by persistently high inflation
in Slovakia. The AROPE rate for people aged sixty-
five years or over rose by 2.1 pps, reaching 14% in
2023. The depth of poverty is very high (29.9% vs
EU: 23%) and in-work poverty increased by almost
2 pps between 2022 and 2023 (from 7.2% to
9.1%, compared to 8.3% in the EU). Mounting
challenges related to poverty and social exclusion
remain due to limited economic opportunities for
underrepresented groups (long-term unemployed,
marginalised Roma communities, young people,
mothers with young children), coupled with
restricted
access
to
health,
education,
employment, and social services. By 2030,
Slovakia aims to reduce the number of people
experiencing poverty or social exclusion risks by at
least 70 000 compared to the 2019 level.
However, in 2023, Slovakia moved away from its
target with 148 000 more people at-risk-of-
poverty or social exclusion (AROPE) compared to
2019.
The risk of poverty or social exclusion among
the children show a positive decrease but
remain relatively high.
The AROPE rate for
children decreased from 25.3% in 2023 to 22.6%
in 2024 (EU: 24.2%). By 2030, Slovakia aims to
have reduced the number of children who
experience poverty or social exclusion by 21 000
compared to 207 000 in 2019. To mitigate the
impact of poverty on children, Slovakia is
implementing the European Child Guarantee (ECG).
The 2024 implementation report shows progress
in some areas, such as access to school meals.
The number of children benefiting from the food
subsidy scheme (provision of meals) sharply
increased from 56 786 to 491 494 in 2023 (
230
).
Quality early childhood education and care for
children under three would be beneficial to
enhance their educational outcomes and
incentivise parents to return to work. The
implementation of the ECG is supported by the EU
cohesion policy funds and the Recovery and
Resilience Facility.
House prices have increased strongly over
the last decade, but the growth in house
prices has slowed down recently.
Since 2015,
house prices have increased by around 70% in
nominal terms. On average, house prices
decreased by 0.2% in 2023, but more recent
quarterly data show a rise of 4.0% in Q2-2024
year-on-year. The recent moderation follows years
of noticeable growth and is driven by the
adjustment to the higher interest rate
environment, as mortgage rates sharply rose from
1.0% in 2021 to 3.8% in 2023. Nonetheless,
house prices are estimated to be overvalued by
10-15%. Building permits fell by a further 3.9% in
2023, following a sharp drop of 16.2% in 2022.
Overall housing affordability worsened over
the past decade despite an increase in new
housing supply
Since 2015, house prices have
grown slightly above the pace of household’s
incomes. As a result, there are major concerns
over the affordability of housing. The standardised
house price-to-income ratio increased by 28%
from 2015 to 2022 before easing in 2023, with
the overall growth from 2015 to 2023 reaching
7%. Taking into account the cost of mortgages, the
borrowing capacity of households improved over
the past decade. The ratio of dwellings per capita
has remained broadly unchanged since 2015 and
is the lowest in the EU. The ratio of house
completions per capita has increased gradually
since 2015 and stands close to the EU average.
However, residential construction has been
decreasing since 2023. Granted residential
building permits have been decreasing as well and
in terms of m2 per person attains one of the
lowest values
in the EU. Slovakia’s inefficient
permitting
procedures,
driven
by
high
administrative fragmentation and inadequate
resources at the municipal level, weigh on new
housing supply. Additionally, there is a significant
(
230
) Slovakia - 2024 Biennial report on the implementation of
the Child Guarantee.
87
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number of vacant dwellings, further reduces the
supply of dwelling available for purchase. The
supply of social rental housing is very low
compared to the other EU average and the share
of population in need.
The challenges related to the affordability of
housing, the shortage of social rental
housing and the inadequacy of housing
allowances require more targeted support.
Slovakia struggles with the affordability of
housing (
231
). The housing cost overburden (
232
)
increased significantly - from 2.5% in 2022 to
5.9% in 2023 and 6.4% in 2024. It was much
higher among households experiencing poverty
risks (34.1% vs EU: 33.5%). In 2023, 36.1% of
people who live in rented housing (both at market
prices and subsidised prices) lived below the
poverty threshold, compared to 13.1% of people
living in owner-occupied housing, and 14.1% of
the total population (
233
). The municipal rental
housing stock is very low. Only 1.6% (
234
) of the
total housing stock is allocated as social housing.
In 2022, only 1.1% of all newly constructed
apartment buildings were in public ownership (
235
).
Slovakia has one of the highest shares of owner-
occupied housing, with 93.5% of the population
living in owner-occupied housing, compared to the
EU average of 69.2% in 2023. The government
does not engage in building or purchasing rental
flats, but is responsible for the general framework
and support mechanisms of the rental housing
system. Municipalities are responsible for
developing social housing for rent; however, they
encounter challenges, such as a lack of available
land for development and bureaucratic obstacles
in applying for support. The reform of the Public
Procurement Act under Slovakia’s recovery and
resilience plan (RRP), which entered into force in
2022, should speed up procurement procedures.
(
231
) Deloitte Property Index (Deloitte, 2024), developments in
European reside ntial markets.
(
232
) The housing cost overburden rate measures housing
affordability as the percentage of the population living in
households where the total housing costs (‘net’ of housing
allowances) represent more than 40% of disposable income
(‘net’ of housing allowances).
(
233
) DG EMPL ad hoc request for study to the Expert Network for
Analytical Support in Social Policies, Social housing and
housing affordability.
(
234
)
Eurostat 2022, Distribution of population by tenure
status, type of household and income group - EU-SILC
(
235
) Amnesty International (2024): Unattainable right to housing.
Report on right to housing in Slovakia. Bratislava.
Moreover, in January 2025, the government
approved a directive which amended the
conditions for people applying to rent social
housing. It also speeds up the approval of housing
projects destined for rent (
236
). The requirement to
have no debts to access social housing hampers
access to social housing for the most deprived
people. Housing allowances in Slovakia are rather
low (
237
) and provided solely to low-income
homeowners and tenants who qualify for ‘material
need’ assistance
(
238
).
There are significant challenges in accessing
social protections
for Slovakia’s non-
standard workers and self-employed.
The
country has a lower proportion of temporary
contract workers (4.4% vs EU: 13.5%) and part-
time employees (3.8% vs EU: 18.6%), but a higher
percentage of self-employed (12.3% vs EU: 9.4%).
Within this group, a significant share is
economically dependent (17% vs EU: 4%).
Employees on ‘work agreements with irregular
income’ face significant gaps in access to
unemployment, sickness, and parental benefits,
with negligible take-up (0.1% in 2022). Self-
employed people are not covered by accident
benefits and opt-in for limited unemployment
(2.0% take-up) and other benefits including
sickness and old-age insurance, with a take-up of
58.8% (
239
) for those above a specific income
threshold. The effective access to social benefits
is low, with self-employed people receiving
benefits at 4.5% compared to the EU average of
12.7%, and only 10.2% of unemployed people
receiving benefits vs 52.4% in the EU. Short-term
unemployed benefits are also lacking, with only
30% receiving benefits, standing well below the
EU average of 58%. Unemployed and temporary
contract workers face high deprivation and
poverty, with 45.7% and 53% respectively, which
for the unemployed exceeds the EU averages of
38.3% and 47.5%. Temporary workers show a
(
236
)
Vláda spresnila podmienky pre záujemcov o štátne
nájomné
byty, cieľom je zefektívniť ich prideľovanie aj eliminovať
prieťahy
- SITA Reality
(
237
) The housing allowance is intended to partially cover housing-
related costs and is provided in amounts depending on the
number of household members.
(
238
) In-Depth Review 2024 Slovakia.
(
239
) Take up of 58.8% of self-employed meaning persons who
opt-in (voluntary) or did not opt-out on sickness and pension
insurance. Majority of these persons did not opt-out,
meaning they were above income threshold.
88
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23.9% deprivation rate. Furthermore, the at-risk-
of-poverty rate among quasi-jobless households in
Slovakia stood at 74.2% in 2023, compared to
61.2% in the EU-27.
Racial prejudices limit access to social
housing
for
the marginalised
Roma
population.
Not meeting minimum income
requirements is the most frequently cited reason
for rejecting social housing applications. This
hinders the social inclusion of the Roma population
in particular. The approach taken by the capital
city, Bratislava, is an example of sound housing
policy and could be scaled up to national level.
Bratislava established a strategy to increase the
supply of social housing for rent. Bratislava’s
social housing policy is inclusive and open to all
people in need. These new rules were approved in
2024. Bratislava introduced new categories of
state-owned
flats including ‘accessible housing
with support’, aimed at the most vulnerable
groups. The housing stock in Slovakia is energy
inefficient. Yet, renovation programmes are
planned. New measures and investments to
support vulnerable households will be compiled in
the national Social Climate Plan, which is to be
submitted to the Commission by June 2025,
following a country-wide consultation.
Graph A9.1:
At-risk-of-poverty or social exclusion
rate and its components (AROP, AROPE, SMSD,
LWI)
SK
20
18
16
14
12
10
8
6
4
2
0
% of
population
2015
2017
2016
2018
2019
2020
2021
2022
2023
At-risk-of-poverty-or-social-exclusion rate
At-risk-of-poverty rate
Severe material and social deprivation
People living in low work intensity households
(1) AROPE: at-risk-of-poverty or social exclusion rate (% of
total population). People wo are at-risk-or-poverty (AROP)
and/or suffering from severe material and social deprivation
(SMSD) and/or living in households with very low work
intensity (LWI).
Source:
Eurostat, EU-SILC
Policies addressing energy poverty remain
limited and insufficiently address its
structural causes.
The share of the population
which is unable to keep their homes sufficiently
warm is lower than EU average, 8.1% compared to
the EU average of 10.6% in 2023. This marks an
improvement of 2.5 pps since 2021. Arrears on
utility bills have increased, by 7.2% of individuals
affected in 2023, an increase of 1.7 pps from
2021, standing higher than the EU average of
6.9%. Structural issues, such as leaks, damp, or
rot, are present in 5.8% of housing, which is
significantly lower than the EU average of 15.5%.
The government has implemented several social
support programmes which complement energy
efficiency initiatives, such as the MunSEFF and
SlovSEFF programmes. These programmes provide
financial assistance to energy efficiency projects in
municipalities and residential buildings. The
government’s actions to address energy poverty
do not address the structural causes of energy
poverty. However, a national action plan to
address energy poverty is being prepared. The
strategy aims to further integrate measures
targeting vulnerable households and improve the
overall energy efficiency of the housing stock. In
89
2024
kom (2025) 0225 - Ingen titel
3035393_0091.png
respect to transport poverty, the share of people
who could not afford a car was 10.5% in 2023,
above the EU average of 5.6%. The issue becomes
alarming among low-income groups in Slovakia, as
evidenced by the higher share of people at risk of
poverty who cannot afford a car (32.4%) which is
significantly above the EU average (15.9%). The
fact that low-income people have difficulties to
afford a car in Slovakia is confirmed by the low
share of individuals at-risk of poverty with very
high expenditures on personal transport fuels
(defined twice above the national median) which is
at 10.4%, and it is significantly below the EU
average of 18.2% in 2024. At the same time,
people’s reliance on personal cars for inland
transport has increased over-time (from 77.4% in
2011 to 79% in 2023).
Access to healthcare and long-term care
services shows improvement but remains
limited for vulnerable groups.
In 2024, 1.6% of
the population reported to have some unmet need
for medical care because of cost, distance or
waiting times. This figure dropped below the EU
average (2.5%) (see Annex 14) (
240
), but challenges
persist. The mortality rate among infants (5.6% in
2023) remains among the highest in the EU (3.3%
in 2023). The unmet medical needs were reported
by 5.3% of people in the lowest income quintile
compared with 2.2% among the highest income
quintile (
241
). The situation is similar in terms of
unmet needs in the long-term care sector, where
the population over sixty-five reporting unmet
needs in 2019 was 50.9% (EU:46.6%). Slovakia
has some of the highest rates of mortality from
preventable and treatable causes in the EU (
242
).
Similarly, the cancer incidence in Slovakia is higher
than the average across the EU and the mortality
rate remains among the highest in the EU (
243
). A
substantial number of deaths could be avoided in
Slovakia through public health, prevention and
healthcare interventions.
Rural and minority populations face the
biggest obstacles in accessing healthcare,
including the marginalised Roma community.
Almost one-fifth of adult homeless people who
live in Bratislava, do not have a general
practitioner (
244
). Debts on health insurance
contributions are the most common forms of debt
among the homeless population in Bratislava,
affecting 22% of adult homeless people. In the
2021 census, the country specifically identified the
secondary homeless, who are defined as
‘residents
who
use various types
of temporary
accommodation and often move between
accommodation, such as a shelter, a halfway
house, an emergency housing facility, or reside in
non-conventional housing.’ Latest national
estimates of homelessness stand at 71 076
people, representing 1.31% of the total population
(2021), of which 39% are women and 61% are
men (
245
).
Slovakia’s healthcare and long-term
care
services continue to be underfunded.
The
ageing and declining population pose challenges to
the sustainability of the healthcare and long-term
care systems (see Annex 14). The RRP’s reform of
integration and financing of long-term social and
healthcare introduces a new financing system of
social services
a personal budget that should
replace a large number of different contributions.
Nevertheless, its entry into force might be
postponed with one year, creating a pressure for
finding the necessary funds in the state budget.
(
240
) OECD/European Commission, 2024: OECD Health at a
Glance: Europe 2024. State of Health in the EU Cycle. Paris:
OECD Publishing.
(
241
) Ibidem.
(
242
) State of Health in the EU Country Health Profile 2023,
chrome-
extension://efaidnbmnnnibpcajpcglclefindmkaj/https://health.
ec.europa.eu/document/download/184d09e2-917b-4d9a-
9078-
a4a503e0e053_nl?filename=2023_chp_sk_english.pdf
(
243
) Country Cancer Profile 2025,
https://www.oecd.org/content/dam/oecd/en/publications/repor
ts/2025/02/eu-country-cancer-profile-slovak-republic-
2025_f32af3fd/e40472f4-en.pdf
(
244
)
Kválová, D., Turkovič, Z., Gerbery, D., Mičicová-Luptáková,
M.,
2024: Záverečná správa zo sčítania ľudí bez domova v
Bratislave v 2023 (Final report on counting homeless people
in Bratislava in 2023). Bratislava: Institute for Labour and
Family Research.
(
245
)
OECD Country Notes on Homelessness data.
90
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3035393_0092.png
ANNEX 12: EDUCATION AND SKILLS
A low enrolment rate in early childhood
education and care (ECEC), a low proficiency
of basic skills among students and adults, a
low number of STEM graduates and skill
mismatches in the labour market limit
Slovakia’s competitiveness.
Weaknesses in
skills development start at a very early age with
low participation of disadvantaged children in
quality ECEC and continue with around one third of
15-year-old students lacking a minimum level of
proficiency in basic skills (mathematics, reading
and science). Enrolment in STEM-related study
programmes (
246
) is low and trending downwards.
Enrolment in adult learning has increased,
but varies greatly across population groups.
Adults’ level of proficiency in literacy, numeracy
and problem solving declined between 2012-
2023. Support for strengthening basic skills
among pupils and for training for less qualified
adults is essential to match the demand and
supply of skills in the labour market. Moreover, a
shortage of qualified teachers continues, and
pupils’ socio-economic
backgrounds significantly
and negatively affects their upskilling and
employment opportunities later. The quality of
vocational education and training (VET) should
also be improved, for example by increasing
pupils’ exposure to work-based
learning.
A low enrolment rate in ECEC, especially
among disadvantaged children, negatively
impacts foundational learning giving rise to
inequalities.
The participation rate of children
under three years of age increased to 5.1% in
2024 but remains among the lowest in the EU
(average of 39.2%) in 2024 (see Annex 10). For
children aged three or over, the enrolment rate in
ECEC was 80.8% in 2023, compared to the EU
average of 94.6% (
247
). Recent national data
showed that the enrolment rate of 3 to 5-year
olds was 85.3% in 2023. However, enrolment is
lower among children from disadvantaged
backgrounds (
4
), including for Roma children (33%
in 2021, Fundamental Rights Agency). Under
Slovakia’s recovery and resilience plan (RRP),
substantial investments are being made to
improve access to ECEC for children older than
three.
Insufficient basic skills among students is
the main barrier to skills development later
in life.
In 2022, 33.2% of students
underperformed in mathematics, 35.4% in reading
and 30.6% in science (EU averages: 29.5%, 26.2%
and 24.2% respectively), which are among the
highest underachievement rates in the EU. Results
differ greatly between rural and urban schools.
Their performance gap in reading, mathematics
and science is also among the highest in the EU,
suggesting challenges linked to teaching quality
and socio-economic aspects. A recent report from
the State school inspectorate shows that
memorisation is the most frequently developed
cognitive ability in Slovak schools and points to
alarming levels of absenteeism among pupils (
248
).
The report also notes that teaching is sometimes
provided by unqualified teachers (for example, ICT
was taught by unqualified teachers in 48.6% of
the surveyed lower secondary schools in
2023/2024).
Most
students
from
disadvantaged
backgrounds lack basic skills.
More than six out
of 10 students from disadvantaged socio-
economic backgrounds did not achieve a minimum
level of proficiency in mathematics (62.6% vs EU
average of 48%, OECD Programme for
International Student Assessment (PISA) 2022).
This is particularly concerning in the context of the
rising share of children living in severe material
and social deprivation (
249
). Around 65% of Roma
children aged 6-15 study in schools where most or
all their schoolmates are Roma (FRA, 2021). In
2023, the Commission referred Slovakia to the
Court of Justice of the European Union for failing
to effectively address the issue, thereby breaching
the Racial Equality Directive.
Slovakia has increased efforts to reduce
segregation.
The State
school inspectorate’s
report (
250
) pointed out persistent challenges linked
to the slow implementation of inclusive education
despite policy efforts. The Ministry of Education is
implementing
national
projects (
251
)
and
monitoring the implementation of desegregation
(
248
)
Správa o stave a úrovni v�½chovy a vzdelávania v školách a
školsk�½ch zariadeniach v Slovenskej republike v školskom
roku.
(
249
) Eurostat: [ilc_mdsd11].
(
246
) Science, Technology, Engineering, Mathematics.
(
247
) Eurostat: educ_uoe_enra21.
(
250
) Based on findings in 11 inclusive primary schools in 2024.
(
251
)
‘Opportunity for all’, ‘Support
for Educational Opportunities’
91
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measures at schools. It also plans to evaluate the
implementation of ‘desegregation standards’ in
2025. Overcoming inequalities in primary and
secondary education is key to increasing
enrolment in higher education and to reducing the
number of adults who lack the necessary skills to
participate in lifelong learning.
Graph A12.1:
Early school leavers, not in
education, employment or training (NEET) and
tertiary attainment
SK
16
14
%
%
45
40
35
12
10
8
30
25
20
15
10
Slovakia is rolling out a reform of the school
curriculum, the success of which will depend
on how teachers are prepared and supported
in implementing it.
The reform will be fully
implemented in the 2026/2027 school year. The
Ministry of Education also announced a package of
89
measures to improve education (‘Velvet
revolution in education,’ 2024). However, the
shortage of teachers and increasing demands can
hinder their effective implementation. It is
estimated that in the next school year there will be
a shortage of around 2 000 teachers, in particular
maths, science and IT teachers. This poses a risk to
the ability to provide quality STEM education and
subsequently foster interest among students in
pursuing STEM-related higher education (
252
).
The low attractiveness of the profession,
the quality of the degree programmes for
teachers and in-service training affects the
quality of education.
More effective and better
targeted support for teachers and improved
pedagogical approaches are needed to boost basic
skills. Reading literacy could be improved for
example by better promoting pre-reading literacy
in preschool, mainstreaming reading literacy
teaching across subjects and providing targeted
learning support to children from vulnerable
groups or to those who are lagging behind. Also,
additional support to the extracurricular activities
could strengthen basic and STEM-related skills.
Low level of basic skills continues in
adulthood.
In 2023, the PIIAC survey of adult
skills recorded substantial age-related skills losses
among adults (including young adults aged 27-34)
in literacy. 24% of the Slovak adults can
understand only short and simple sentences.
Slovak adults are below the OECD average in all
three skills measured: literacy, numeracy, adaptive
problem solving. 36% of workers hold their highest
qualification not in the field which is most relevant
to their job. Over half of businesses in Slovakia
reported that their workforce has some degree of
skill gap (54%) (
253
).
Slovakia has a relatively large vocational
education and training (VET) offer, but its
(
252
) https://www.edujobs.sk/praca.
(
253
) OECD (2024),
PIAAC Employer Module, Do Adults Have the
Skills They Need to Thrive in a Changing World?: Survey of
Adult Skills 2023, OECD Skills Studies,
OECD Publishing, Paris,
p. 175.
6
4
2
0
5
0
Source:
Eurostat, LFS
[edat_lfse_14,edat_lfse_20,edat_lfse_07]
Increasing the share of top performers in
basic skills and performance would
strengthen the pool for innovative talent.
Top
performance among 15-year-olds declined and it
is well below the EU average (9.5% vs 12.59%) in
all three basic skills domains. In reading, it is
among the lowest in the EU (3.4% vs EU average
of 6.5%). Slovak pupils were also weaker in
creative thinking, with a top performance rate of
21% (vs EU-23 average of 25.1% in 2022.)
Widespread innovative testing in Slovakia
confirmed the worsening of key competences in
basic schools (FinQ, 2023), including among
children aged 6-10. Students’
basic skills may
deteriorate further in the future if no action is
taken. Slovakia’s declining performance in PISA
2022 can be partially attributed to the long-term
underfunding of the education system and school
closures during the pandemic, but teacher
shortages and low attractiveness of the teaching
profession also play a part.
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Tertiary education 30-34 (rhs)
NEET 15-24 (lhs)
Early school leavers 18-24 (lhs)
92
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3035393_0094.png
potential for the labour market is not fully
exploited.
In 2023, 43% of 15-19-year-olds were
enrolled in secondary VET. Half of 25-34-year-olds
have a VET qualification as their highest level of
attainment (EU average: 60% in 2022 (
254
). In
2023, almost eight out of 10 (76.5%) of recent
VET graduates were in employment, below the EU
average of 81%. On average, VET graduates earn
about 12% more than those without upper
secondary education attainment, whereas workers
with finished general secondary attainment earn
13% more. Nevertheless, Slovakia lags in exposing
students to work-based learning (62.1% vs EU
average of 64.5%). Improving the quality of
curricula and teaching, and ensuring more flexible
entry paths for professionals into VET teaching
profession would address skills mismatches.
The European Social Fund Plus (ESF+)
supports improvements in VET.
In 2024, the
Ministry of Education launched a national project
aiming to increase the quality, flexibility and
adaptability of VET and introducing regional
quality coordinators (EUR 7 million). The project
also develops a national strategy for quality
assurance and plans to publish an impact analysis
in 2026..
Tertiary education struggles to supply the
skills needed by the economy.
The RRP
supports reforms aimed at improving the quality
of higher education. For example in 2024, in total
EUR 80.4 million was allocated to universities,
linked to their performance on 14 specific
indicators. Only 37.2% of Slovaks aged 25-34 had
a tertiary education degree in 2024 (EU average:
44.2%). The share of students enrolled in STEM
programmes (21.8%) was significantly lower than
the EU average (27.1%) in 2022, and had
decreased compared to 2017 (22.8%). Around
38.8% of all medium-level VET pupils were
enrolled in medium-level VET STEM fields in 2022
(EU-27 average: 36.2%). The number of PhD
students in STEM studies decreased between 2017
and 2022 (
255
), although, as a share of total
International Standard Classification of Education
(ISCED) level 5-8 enrolments, the share of enrolled
students in STEM remained the same
(1.7%). Between 2010 and 2023, the number of
STEM graduates declined in Slovakia by 46%. The
(
254
) Eurostat, UOE, OECD and additional collection for the other
EHEA countries
( ) educ_uoe_entr03_custom_15132925.
255
low number of enrolments in STEM studies is
linked to challenges at school level. In 2023, only
11.6% of graduates decided on mathematics in
the Matura final examination.
Addressing gender gaps helps to increase the
enrolment in STEM studies.
In 2022, the share
of male STEM enrolments (as a share of total
ISCED 5-8 enrolments) was 15.2% in Slovakia (EU-
27 average: 18.5%). The share of female ISCED 5-
-8 enrolments was only 6.6% (EU-27 average:
8.6%). The share of females in ICT enrolments
(ISCED 5-8) was among the lowest in the EU
(15.1% in Slovakia vs 20.2% in the EU) in 2022.
The proportion of graduates in ICT (4.8%) was
slightly higher in Slovakia than the EU average
(4.5%) in 2022 (DESI, 2024). However, only 0.8%
of Slovak females graduate in ICT (EU: 1%).
Support for teachers to develop learning tools,
video tutorials and innovative approaches,
including using artificial intelligence, could help
boost participation in STEM in Slovakia. Updating
secondary school curricula and introducing
additional support (human and financial resources)
to the extracurricular activities (in maths, reading,
STEM and digital competences) would improve
motivation and quality.
There is scope to substantially improve green
competencies and skills.
Slovak students’
knowledge of sustainable development issues is
below the average of the 17 EU countries
surveyed, and the difference in students’
knowledge in this area when linked to parental
educational background is the highest in the
EU-17. Although school leaders have a key role in
including sustainability in school practice, there are
no specific provisions supporting their leadership in
relation to sustainability.
Graph A12.2:
Change in the number of students
enrolled in tertiary education and in STEM fields
(ISCED 5-8) in Slovakia, 2017-2023
Number of students enrolled by area of
study
140.000
20.000
120.000
100.000
80.000
15.000
10.000
60.000
40.000
20.000
5.000
0
0
2017
2018
2019
2020
2021
2022
2023
Engineering
ICT
Students enrolled in tertiary education
Natural science
Source:
Eurostat: educ_uoe_enrt03
93
Overall number of students enrolled in
tertiary education
25.000
160.000
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Training is crucial to address the shortages
of skilled workers and to improve
competitiveness, resilience and fairness.
68%
of Slovak SMEs in 2023 reported that it was very
difficult to find qualified employees (EU average:
52%). Similarly, 42% of SMEs (EU average: 21%)
said that keeping qualified employees was very
difficult. ESF+ funding for labour market
development and skills forecasting is managed by
the Alliance of Sectoral Councils, comprising 25
sectoral councils, which cover the main industries
and prepare the national employment standards.
The Public Employment Service supports reskilling
necessary for the labour market of young people
(and other job seekers) not in employment,
education or training. While most SMEs do not
expect skills shortages to affect their ability to use
IT technologies in their operations (81% vs EU
average of 75%), they report an increased
workload for existing staff, loss of sales and
reduced profitability and growth due to skill
shortages.
Digital skills still need to be significantly
strengthened.
The proportion of Slovaks aged 16
to 74 who have at least basic digital skills
(51.31% in 2023) is below the EU average
(55.56%). Yet, 70.58% of young Slovaks aged 16
to 24 have at least basic digital skills, which is in
line with the EU average. The share of students
enrolled in ICT in Slovakia in 2022 was 5.7% of
the total tertiary enrolments (EU average: 5.2%).
Despite ongoing digitalisation of schools, the level
of remote access to the school network from
home is among the lowest in the EU (3% in
Slovakia vs EU average at 18%). Moreover, Slovak
students’ performance in computer and
information literacy significantly decreased in
2023 in comparison to 2013 (by 19 points) as
measured by the 2023 International Computer and
Information Literacy Study (
256
). The 2024 report
also highlights the need to support teachers’
digital skills and promote pupils’
access to
distance learning.
Participation in adult learning is relatively
high, but challenges persist for specific
population groups.
The rate of adults
participating in training reached 49.5% in 2022
(compared to 42.6% in 2016), coming close to the
2030 national target of 50% and remaining above
(
256
) Study conducted by the International Association for the
Evaluation of Educational Achievement, 2023.
the EU average (39.5%). At the same time,
participation rates vary significantly across
population groups and sectors. People outside the
labour market (10%), the unemployed (10.5%) and
those who did not complete upper secondary
education (18.6%) show much lower engagement
rates. On the other hand, employees’ participation
in education and training in energy-intensive
industries was 13.82% in 2024 (EU average:
11.67%).
Slovakia adopted a new law on adult
education and an action plan for 2025-2027.
It promotes a personalised approach to adult
learning and introduces new elements, such as
individual learning accounts and validation of
previous learning outcomes. However, the law
does not allow for entitlements to be transferred
between financial years and does not provide for
paid training leave, contrary to the Council
recommendation on individual learning accounts.
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ANNEX 13: SOCIAL SCOREBOARD
Table A13.1:Social
Scoreboard for Slovakia
Adult participation in learning (during the last 12 months, excl. guided on
the job training, % of the population aged 25-64, 2022)
Early leavers from education and training
(% of the population aged 18-24, 2024)
Equal opportunities and
access to the labour market
Share of individuals who have basic or above basic overall digital skills
(% of the population aged 16-74, 2023)
Young people not in employment, education or training
(% of the population aged 15-29, 2024)
Gender employment gap
(percentage points, population aged 20-64, 2024)
Income quintile ratio
(S80/S20, 2024)
Employment rate
(% of the population aged 20-64, 2024)
Dynamic labour markets
and fair workingconditions
Unemployment rate
(% of the active population aged 15-74, 2024)
Long term unemployment
(% of the active population aged 15-74, 2024)
Gross disposable household income (GDHI) per capita growth
(index, 2008=100, 2023)
At risk of poverty or social exclusion (AROPE) rate
(% of the total population, 2024)
At risk of poverty or social exclusion (AROPE) rate for children
(% of the population aged 0-17, 2024)
Impact of social transfers (other than pensions) on poverty reduction
(% reduction of AROP, 2024)
Social protection and
inclusion
Disability employment gap
(percentage points, population aged 20-64, 2024)
Housing cost overburden
(% of the total population, 2024)
Children aged less than 3 years in formal childcare
(% of the under 3-years-old population, 2024)
Self-reported unmet need for medical care
(% of the population aged 16+, 2024)
Critical situation
To watch
Weak but improving Good but to monitor
On average
Better than average
Best performers
49.5
7.5
51.3
10.7
8.9
3.28
78.1
5.3
3.5
127.5
18.3
22.6
36.7
23.8
6.4
5.1
1.6
(1) Update of 5 May 2025. Members States are categorised based on the Social Scoreboard according to a methodology agreed
with the EMCO and SPC Committees. Please consult the Annex of the Joint Employment Report 2025 for details on the
methodology (https://employment-social-affairs.ec.europa.eu/joint-employment-report-2025-0).
Source:
Eurostat
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ANNEX 14: HEALTH AND HEALTH SYSTEMS
Slovakia’s health system faces significant
challenges that need be addressed if the
country is to improve the health of its
population and social fairness, while
boosting the competitiveness of its economy.
Key challenges include: (i) low life expectancy,
linked to high treatable and preventable mortality;
(ii) suboptimal funding and cost-effectiveness of
the health system; (iii) an insufficient focus on
disease prevention; and (iv) shortages of health
workers.
Life expectancy at birth in Slovakia
rebounded above its pre-COVID-19 level but
was still among the lowest in the EU in 2023.
Moreover, there are striking gender gaps in health
outcomes. Women can expect to live 6.6 years
longer than men. That said, they can only expect to
live 1.4 years longer than men in good health.
Treatable mortality is one of the highest in the EU,
suggesting shortcomings in the effectiveness of
the health system. Diseases of the circulatory
system (‘cardiovascular diseases’) and
cancer
remain the leading causes of death, with mortality
rates higher than the EU average.
Graph A14.1:
Life expectancy at birth, years
81.3
77.8
(EU average: 0.3%). The number of potential
productive life years lost due to non-
communicable diseases such as cancer and
cardiovascular diseases is higher than the EU
average (1 368 per 100 000 population vs
1 017) (
258
).
Graph A14.2:
Treatable mortality
per 100 000 population
206.0
165.4
91.3
163.6
89.2
168.8
91.7
93.3
176.1
89.7
2018
2019
2020
Slovakia
EU
2021
2022
Age-standardised death rate
(mortality that could be
avoided through optimal quality healthcare)
Source:
Eurostat (hlth_cd_apr)
80.4
77.0
80.1
80.6
81.4
78.2
77.0
74.6
2019
2020
2021
Slovakia
EU
2022
2023
Source:
Eurostat (demo_mlexpec)
The weak health outcomes negatively impact
Slovakia’s workforce, productivity and
competitiveness.
Mortality at working age as a
proportion of total mortality is significantly higher
in Slovakia than the EU average, exacerbating the
effects of population ageing on a shrinking labour
force. Cancer in particular has a major impact on
workforce participation and productivity (
257
).
Between 2022 and 2040, the population at
working age in Slovakia is forecast to shrink by
0.5% every year as a result of lower birth rates
(
257
) OECD/European Commission (2025),
EU Country Cancer
Profiles Synthesis Report.
Despite investment from EU funds in
healthcare quality and efficiency, Slovakia’s
healthcare system remains underfunded,
with limited cost-effectiveness.
Health
spending per inhabitant is one of the lowest in the
EU. Spending on outpatient care, inpatient care,
and retail pharmaceuticals and medical devices
each accounted for around 30% of total health
expenditure. Between 2016 and 2022, Slovakia
allocated an average of 0.31% of GDP to capital
spending in the health sector (lower than the EU
average of 0.48%) (
259
), which could account for
the low availability of key diagnostic technologies
(medical imaging). Due to an ageing population,
the projected increase in public healthcare
spending raises fiscal sustainability concerns for
Slovakia (see Annex 1). While the number of
hospital beds is higher than the EU average, the
occupancy rate remains low (59%) (
260
). Public
hospitals in Slovakia are facing financial issues,
including late payments and indebtedness (see
Annex 4). Reforms are under way in Slovakia to
improve the efficiency and quality of inpatient
healthcare by optimising the hospital network and
(
258
) Update to 2022 data of analysis presented by Health at a
Glance: Europe 2016.
(
259
) OECD/European Commission, see Health at a Glance Europe
2018, 2020, 2022 and 2024.
(
260
) OECD/European Commission (2024),
Health at a Glance:
Europe 2024 - State of Health in the EU Cycle,
p.201.
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Table A14.1:Key
health indicators
2019
Cancer mortality per 100 000 population
Mortality due to circulatory diseases per 100 000 population
Current expenditure on health, purchasing power standards, per capita
Public share of health expenditure, % of current health expenditure
Spending on prevention, % of current health expenditure
Available hospital beds per 100 000 population**
Doctors per 1 000 population*
Nurses per 1 000 population*
Mortality at working age (20-64 years), % of total mortality
Number of patents (pharma / biotech / medical technology)
Total consumption of antibacterials for systemic use,
daily defined dose per 1 000 inhabitants****
293.3
567.8
1 519
79.8
0.8
495
3.6
n.a.
23.7
0
19.3
2020
301.8
607.1
1 593
80.3
1.0
488
3.7
n.a.
21.7
0
14.4
2021
275.1
641.2
1 850
79.7
1.6
488
3.7
5.7
22.2
6
16.0
2022
267.7
627.8
1 947
79.9
2.0
489
3.7
5.7
21.3
1
20.8
2023
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
21.3
1
20.1
EU average*
(latest year)
234.7 (2022)
336.4 (2022)
3 684.6 (2022)
81.3 (2022)
5.5 (2022)
444 (2022)
4.2 (2022)*
7.6 (2022)*
14.3 (2023)
29 (2023)***
20.0 (2023)
*The EU average is weighted for all indicators except for doctors and nurses per 1 000 population, for which the EU simple
average is used based on 2022 (or latest 2021) data except for Luxembourg (2017). Doctors’ density data refer to practising
doctors in all countries except Greece, Portugal (licensed to practise) and Slovakia (professionally active). Density of nurses: data
refer to practising nurses (EU recognised qualification) in most countries except France and Slovakia (professionally active) and
Greece (hospital only). **‘Available hospital beds’ covers somatic care, not psychiatric care. ***The EU
median is used for patents.
Source:
Eurostat database; European Patent Office; ****European Centre for Disease Prevention and Control (ECDC) for 2023.
centralising the management of the largest
hospitals.
Out-of-pocket payments account for a
greater proportion of spending on health in
Slovakia than the EU average (19.3% vs
14.3%).
More than two thirds of all out-of-pocket
payments are for outpatient pharmaceuticals (
261
).
In 2024, Slovakia increased its public health
insurance budget by 11.5% compared to 2023. It
also introduced a health system financing
‘consolidation package’ to reduce the budget
deficit, by increasing taxes and contributions,
generating EUR 1.96 billion.
Under the Slovakian recovery and resilience
plan (RRP), around EUR 1.03 billion is planned
for
health
reforms
and
supporting
investments.
In addition, complementary funding
for healthcare (EUR 166 million) is planned under
the EU cohesion policy funds in 2021-2027, which
aim to improve health infrastructure and the
accessibility of health services for vulnerable and
socially disadvantaged groups.
As regards public health, Slovakia places
insufficient focus on disease prevention.
In
2022, spending on prevention accounted for 2.0%
of total spending on health in Slovakia, much
lower than the EU average. Preventable mortality
was high in 2022 (245 per 100 000 population)
but decreased by 6% since 2013. Slovakia is one
of the countries with the lowest rates of physical
activity among adults. The share of the population
that is overweight has been increasing over time,
(
261
)
Health at a Glance: Europe 2024,
pp. 186-187.
particularly among men (
262
). Flu vaccination rates
among older people were very low (6%) in
2021/2022 and declined sharply compared to pre-
pandemic levels (
263
). Screening rates for breast
cancer and cervical cancer were among the lowest
in the EU in 2022 (
264
). High levels of
hospitalisation for congestive heart failure and
diabetes suggest a lack of care coordination,
highlighting a need to strengthen primary care.
Under EU4Health, Slovakia is involved in the
EUCanScreen joint action (
265
) on cancer screening
and the CARE4DIABETES joint action aimed at
reducing the burden of diabetes (
266
). In 2023,
Slovakia’s government approved the general
outpatient care strategy that will run until 2030 to
improve access to primary care. Moreover, one of
the priorities of Slovakia’s RRP is to increase
access to mental healthcare by strengthening
community and outpatient mental health services.
Shortages of health workers limit the
availability of care.
For several years, the
density of doctors and nurses in Slovakia has been
below the EU average. Furthermore, in 2022, a
high share of the country’s nursing personnel was
aged between 55 and 64 (23.7%), and a low share
was aged between 25 and 34 (9.8%). This poses a
significant challenge to the health system and,
more broadly, the care system (see Annex 10).
Since 2025, the base salaries for selected
healthcare professionals have increased. Slovakia
(
262
)
Health at a Glance: Europe 2024,
Chapter 4.
(
263
)
Health at a Glance: Europe 2024,
pp. 214-215.
(
264
)
Health at a Glance: Europe 2024,
pp. 162-163.
(
265
)
EUCanScreen -
6η Υ.ΠΕ
(
266
)
Home - Care4Diabetes4JointAction
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participates in the EU4Health-funded HEROES joint
action, through which EU countries share best
practices and expertise on health workforce
planning (
267
).
The Slovak health system’s potential to drive
innovation and foster industrial development
in the EU medical sector remains largely
untapped.
Slovakia is among the EU countries
that report the lowest levels of public spending on
health research and development. This is reflected
in the low number of European patents granted in
the combined areas of pharmaceuticals,
biotechnologies and medical devices (
268
). Clinical
trial activity in Slovakia is also limited (
269
).
Furthermore, the country is facing a growing
shortage of medicines.
Slovakia is also lagging behind in the uptake
of e-health and the overall digitalisation of
its health system.
In 2024, the shares of people
using online health services (excluding phone)
instead of in-person consultations (15.6%) and
accessing their personal health records online
(16.2%) were both below the EU average. The low
general level of digital literacy in Slovakia in 2023
(51.3% vs an EU average of 55.6%) may explain
the low uptake of digital tools by patients. Planned
investments under the RRP aim to boost the digital
transformation of Slovak hospitals. In addition,
Slovakia participates in the joint action TEHDAS2
(
270
) and receives direct grants under the
EU4Health
programme
to
facilitate
the
implementation of the European Health Data
Space.
(
267
)
JA HEROES | Health workforce planning project.
(
268
) European Patent Office,
Data to download | epo.org.
(
269
) EMA (2024),
Monitoring the European clinical trials
environment,
p. 9.
(
270
)
Second Joint Action Towards the European Health Data
Space
TEHDAS2 - Tehdas
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S
HORIZONTAL
ANNEX 15: SUSTAINABLE DEVELOPMENT GOALS
This Annex assesses Slovakia’s progress on
the Sustainable Development Goals (SDGs)
along the dimensions of competitiveness,
sustainability,
social
fairness
and
macroeconomic stability.
The 17 SDGs and their
related indicators provide a policy framework
under the UN’s 2030 Agenda for Sustainable
Development. The aim is to end all forms of
poverty, fight inequalities and tackle climate
change and the environmental crisis, while
ensuring that no one is left behind. The EU and its
Member States are committed to this historic
global framework agreement and to playing an
active role in maximising progress on the SDGs.
The graph below is based on the EU SDG indicator
set developed to monitor progress on the SDGs in
the EU.
Slovakia is slightly improving on several SDG
indicators
related
to
competitiveness
(SDGs 4, 8 and 9), but needs to catch up with
the EU average.
At 1.03% of GDP in 2023, R&D
expenditure is significantly below the EU average
Graph A15.1:
Progress towards the SDGs in Slovakia
of 2.24% (SDG 9). This stifles innovation and
prevents Slovakia from boosting its productivity by
employing more technological solutions such as
artificial intelligence, digitalisation, automation,
cloud systems and other scientific and hi-tech
breakthroughs. Only 24 patent applications (per
million inhabitants) were submitted in 2024
compared to the EU average of 156. The share of
the population aged 25-34 completing tertiary
education, a crucial ingredient for raising the
proficiency, competitiveness, and technological
aptitude of the Slovak population, has dropped to
37.2% in 2024, far from the EU average of 44.2%
for this indicator. However, the proportion of adults
participating in learning is increasing, almost
catching up with the EU average. In 2024, 12.8%
of the Slovak adult population had attended an
education course in the previous 4 weeks,
compared to the EU average of 13.3% (SDG 4).
The share of households with a high-speed
internet connection increased from 45.5% in 2019
to 69.1% in 2023 (just below the EU average of
78.8%). Investment in digital infrastructure and
educational reforms, outlined in the recovery and
For detailed datasets on the various SDGs, see the annual Eurostat report ‘Sustainable
development in the European Union’;
for
details on extensive country-specific data on the short-term progress of Member States:
Key findings
Sustainable development
indicators - Eurostat (europa.eu).
A high status does not mean that a country is close to reaching a specific SDG, but signals that it
is doing better than the EU on average. The progress score is an absolute measure based on the indicator trends over the past
five years. The calculation does not take into account any target values, as most EU policy targets are only valid for the aggregate
EU level. Depending on data availability for each goal, not all 17 SDGs are shown for each country.
Source:
Eurostat, latest update of 28 April 2025. Data refer mainly to the period 2018-2023 or 2019-2024. Data on SDGs may
vary across the report and its annexes due to different cut-off dates.
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resilience plan (RRP), should further improve long-
term productivity.
While Slovakia is improving on several SDG
indicators related to
sustainability
(SDG 7, 9,
11, 12, 13 and 15), it is moving away from
others (SDG 2, 6). Slovakia performs well on
SDGs 6, 11 and 15 but needs to catch up with
the EU average on SDGs 2, 7, 9, 12 and 13.
It
performs well on sustainable mobility, with buses
and trains accounting for 21% of total passenger
transport in 2022, standing well above the EU
average of 16.6%. Slovakia’s severe housing
deprivation rate was at 4.0% in 2023, at part with
the EU
average. Slovakia is however
underperforming on indices pertaining to
affordable and clean energy (SDG 7). While
Slovakia’s capacity for generating energy from
renewable sources has increased, from 11.9% of
gross final energy consumption in 2018 to 17% in
2023, this share is still below the EU average of
24.6%. Over the same period, energy productivity
improved only marginally, from EUR 4.9 per kgoe
to EUR 5.5 per kgoe, compared to the average EU
improvement from EUR 8.1 per kgoe to EUR 9.8
per kgoe). Slovakia’s dependency on imported
energy as part of its overall energy mix fell from
61.9% in 2018 to 57.7% in 2023, standing just
below the EU average of 58.3%. Slovakia performs
well on the share of municipal waste that is
recycled. The country increased the percentage
recycled from 36.3% in 2018 to 50.3% in 2023,
which is above the EU average of 48.2%.
Slovakia is making progress on its net greenhouse
gas emissions, which have decreased from 6.9
tonnes per capita in 2018 to 5.2 in 2023,
performing better than the 2023 EU average of
6.8 tonnes per capita. Investments and reforms
that are set out in the RRP (sections on
renewables, industry decarbonisation, energy
efficiency, waste disposal and R&D) will boost
Slovakia’s performance on environmental SDGs.
While Slovakia is improving on several SDG
indicators related to
social fairness
(SDGs 3,
4, 5, 7 and 8), it is moving away from others
(SDG 1). Slovakia performs well on SDG 1 but
needs to catch up with the EU average on
SDGs 3, 4, 5, 7 and 8.
Slovakia performs better
than the EU average on poverty-related indicators
(SDG 1), partly because of the relatively little
variation in earnings among workers within the
same industry. Although still lagging behind the EU
average, Slovakia is progressing on some quality
education indicators (SDG 4), such as participation
in early childhood education (rising from 77.6% in
2018 to 80.8% in 2023) but the rate was still
below the EU average of 94.6% in 2023. The high
percentage of low achieving fifteen-year-olds in
mathematics (33.2% in 2022 compared to the EU
average 29.5%) is a cause for concern. On SDG 5
(Gender equality), Slovakia is improving on the
ratio of senior management positions held by
women. The percentage of female board members
increased from 22.0% in 2019 to 22.7% in 2024,
though that figure is still significantly below the
EU average of 32.6%. On SDG
7, Slovakia’s ability
to provide affordable energy has declined. The
percentage of people unable to adequately heat
their homes rose from 4.8% in 2018 to 8.1% in
2023. However, this is still below the EU average
of 10.6% in 2023. The RRP includes measures to
improve pupils’ skills and to make the various
levels of the education system more inclusive and
fairer. For example, by creating more places in
preschool establishments, updating school
curricula, tackling the segregation of the Roma
population, providing specialised training for
teachers and raising the professional qualifications
required of teaching staff (Components 6, 7, 8).
While Slovakia is improving on several SDG
indicators related to
macroeconomic stability
(SDGs 8 and 16), it is moving away from
others (SDG 17). Slovakia needs to catch up
with the EU average on SDGs 8, 16 and 17.
Real GDP per capita in Slovakia has been
increasing, reaching EUR 19 130 in 2024.
However, that figure stood below the EU average
of EUR 33 530 in 2024. The investment share of
GDP slightly increased from 21.7% in 2019 to
20.3% in 2024 (EU average: 21.7%). The
employment rate has increased, reaching 78.1%
of the population aged 20-64 in 2024, and
outpacing the EU average of 75.8%. The long-term
unemployment rate has fallen (to 3.5% in 2024),
standing above the EU average of 1.9%. Measures
presented in the RRP should stimulate much
needed investment and help further reduce long-
term unemployment.
As the SDGs form an overarching framework, any
links to relevant SDGs are either explained or
depicted with icons in the other annexes.
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ANNEX 16: CSR PROGRESS AND EU FUNDS IMPLEMENTATION
Slovakia faces structural challenges in a
wide range of policy areas, as identified in
the country-specific recommendations (CSRs)
addressed to the country as part of the
European Semester.
They refer, among other
things, to the tax system, the quality of public
spending and of public procurement processes, the
effectiveness of the judicial and anticorruption
systems, risks related to household debt and the
functioning of the housing and rental markets, the
teaching of basic skills, energy and waste
management.
The Commission has assessed the 2019-2024
CSRs considering the policy action taken by
Slovakia to date and the commitments in its
recovery and resilience plan (RRP).
At this
stage, Slovakia has made
at least ‘some progress’
on 54% of the CSRs (
271
),
and ‘limited progress’ on
89% (Table A16.2).
EU funding instruments provide considerable
resources to Slovakia by supporting
investments and structural reforms to
increase competitiveness, environmental
sustainability and social fairness, while
helping to address challenges identified in
the CSRs.
In addition to the EUR 6.4 billion
funding from the Recovery and Resilience Facility
(RRF) in 2021-2026, EU cohesion policy funds (
272
)
are providing EUR 12.6 billion to Slovakia
(amounting to EUR 16.2 billion with national co-
financing) for 2021-2027 (
273
) to boost regional
competitiveness and growth. Support from these
instruments combined represents around 15.3% of
2024 GDP (
274
). The contribution of these
instruments to different policy objectives is
outlined in Graphs A16.1 and A16.2. This
substantial support comes on top of financing
provided to Slovakia under the 2014-2020
(
271
) 6% of the 2019-2024 CSRs have been fully implemented,
5% substantially implemented, and some progress has been
made on 43%.
(
272
) In 2021-2027, cohesion policy funds include the European
Regional Development Fund, the Cohesion Fund, the
European Social Fund Plus and the Just Transition Fund. The
information on cohesion policy included in this annex is
based on adopted programmes with the cut-off date of 5
May 2025.
(
273
) European territorial cooperation (ETC) programmes are
excluded from the figure.
(
274
) RRF funding includes both grants and loans, where
applicable. GDP figures are based on Eurostat data for 2024.
multiannual financial framework, which financed
projects until 2023 and has had significant
benefits for the economy and Slovak society.
Project
selection
under
the
2021-2027
programmes has accelerated, while significant
volumes of investment are yet to be mobilised.
Slovakia’s RRP contains 119 investments
and
103 reforms to stimulate sustainable growth
and support the green and digital transitions,
social inclusion and territorial cohesion.
A
year before the end of the RRF timespan,
implementation is on its way, with 54% of the
funds disbursed. At present, Slovakia has fulfilled
33% of the milestones and targets in its RRP (
275
).
Efforts are needed to ensure completion of all RRP
measures by 31 August 2026. Several challenges
hinder the implementation of the RRP, including
inefficient
public
procurement
processes,
insufficient preparation of investment projects and
a fragmented governance structure. Tackling these
barriers would help accelerate the implementation.
Slovakia also receives funding from several
other EU instruments,
including those listed in
Table A16.1. The common agricultural policy (CAP)
provides Slovakia with an EU contribution of
EUR 3.4 billion under the CAP strategic plan 2023-
2027 (
276
). Operations amounting to EUR 49.9
million (
277
) have been signed under the InvestEU
instrument backed by the EU guarantee, improving
access to financing for riskier operations in
Slovakia.
(
275
) As of mid-May 2025, Slovakia has submitted 5 payment
requests, the last one being under assessment.
(
276
)
An overview of Slovakia’s formally approved strategy to
implement the EU’s common
agricultural policy nationally
can be found at: https://agriculture.ec.europa.eu/cap-my-
country/cap-strategic-plans/slovakia_en
(
277
) Data reflect the situation on 31.12.2024.
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Graph A16.1:
Distribution of RRF funding in
Slovakia by policy field
Green transition
Digital transformation
Smart, sustainable and
inclusive growth
Social & territorial cohesion
Health & resilience
Next generation
(1) Each RRP measure helps achieve the aims of two of the
six policy pillars of the RRF. The primary contribution is shown
in the outer circle, while the secondary contribution is shown
in the inner circle. Each circle represents 100% of the RRF
funds. Therefore, the total contribution to all pillars displayed
on this chart amounts to 200% of the RRF funds allocated.
Source:
European Commission
biotechnologies. The European Social Fund Plus
(ESF+) will fund the introduction of individual
learning accounts in Slovakia. This will serve as a
follow-up to the ERDF-funded project (funding:
EUR 2.3 million) aimed at establishing and testing
the relevant IT platform (called EPIVU). The ESF+
project on individual learning accounts (worth
EUR 15 million) will be implemented between
2025-2029 by the Ministry of Education together
with specific partners (the Alliance of Sectoral
Councils, the State Association of Adult Education
Institutions). The project is anchored in the
strategy for lifelong learning and in the new adult
education law, which came into force in January
2025.
Other
funds
are
contributing
to
competitiveness in Slovakia, for instance
through open calls.
The Connecting Europe
Facility has financed strategic investments in
sustainable mobility with investments in rail
transport infrastructure; energy market integration
with the diversification of natural gas sources and
routes; and digital connectivity with terrestrial
cables connecting Slovakia to Poland and
advanced 5G development. Horizon Europe has
supported research and innovation, from scientific
breakthroughs to scaling up innovations, with
research and innovation capacity and research on
food and agriculture as top priorities in Slovakia.
The Technical Support Instrument (TSI) has
supported Slovakia in the preparation of its Social
Climate Plan as well as overcoming barriers to
regional development in Upper Nitra in 2024. It
also supports capacity building of the public
administration
through
the
multiannual
programme Public Administration Cooperation
Exchange (PACE).
Slovakia’s RRP also contains ambitious
measures
to
improve
the
business
environment and competitiveness.
As part of
the measures covered by payment requests
submitted over the past year, major reforms have
been implemented to reduce regulatory burden
and improve the efficiency of the judicial system,
the insolvency framework and public procurement.
Slovakia put in place a unified methodology for
the assessment of impacts, new tools for
ex post
evaluations of existing regulations, a ‘1-in-2-out’
rule to ensure that new legislation does not
increase administrative costs for businesses, and
protection against unjustified gold-plating of
legislation. Slovakia also set up a new court
network by reorganising and streamlining the
Graph A16.2:
Distribution of cohesion policy
funding across policy objectives in Slovakia
Smarter Europe
Greener Europe
Connected Europe
Social Europe
Europe closer to citizens
JTF specific objective
Source:
European Commission
Cohesion policy funds aim to increase the
productivity
and
competitiveness
of
Slovakia’s firms and improve the business
environment.
The
European
Regional
Development Fund (ERDF) will provide funding for
research and development investments and
cooperation with research organisation to over
800 small and medium-sized enterprises (SMEs).
An additional 2 700 businesses will receive grants
and loans to improve their competitiveness
through other investments. Over 50 public
institutions will be helped to develop digital
services for the public, while 53 000 dwellings will
gain very high-capacity broadband access to
facilitate the economy’s digital transition. Under
the Strategic Technologies for Europe Platform
(STEP) Slovakia aims to invest over EUR 200
million in developing digital technologies and
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courts system, allowing for greater specialisation
of judges in criminal, civil, commercial or family
justice. The insolvency and restructuring
procedures were also unified and digitalised, with
Slovakia introducing insolvency specialisation at
the level of business courts and early warning
tools. Efforts to digitalise public procurement
included the creation of a single electronic
platform; ensuring interoperability with the
information and data management systems; and
better control and greater efficiency in the
evaluation and award of contracts.
EU funds are playing a significant role in
promoting environmental sustainability and
green transition in Slovakia during the
current seven-year EU budget (multiannual
financial framework).
With ERDF and Just
Transition Fund (JTF) support, capacity for waste
recycling will increase by 500 000 tonnes per year,
while wastewater treatment will improve for
75 000 people in municipalities across Slovakia.
Over 16 000 households will improve their energy
performance thanks to insulation and renewable
energy installations. In regions transitioning from
coal mining and emission-intensive industries
(Trenčín, Košice and Banská Bystrica), the JTF will
support close to 200 businesses operating in green
industries and build over 800 alternative fuel
stations. As for the CAP strategic plan, more than
EUR 513 million in EU funds are reserved for
farmers voluntarily committing to more
environmentally
ambitious
practices
on
agricultural land as part of the new whole-farm
eco-scheme. Such practices include improving soil
structure, setting aside non-productive areas and
sowing them with pollinator mixtures, limiting the
maximum area of cultivated land and postponing
mowing. Slovakia aims to cultivate 20% of its
agricultural land under organic farming by 2030.
The CAP strategic plan helps this process by
providing financial aid covering 270 000 hectares
(14% of the country’s agricultural land). Under
rural development, about 46% of funds are
reserved for environmental and climate-related
objectives such as agri/forest environmental and
climate
measures.
Practices
leading
to
sustainability and reduced use of pesticides are
applied on more than 27% of the country’s
agricultural area. Following the Russian invasion of
Ukraine, the plan provides for enhanced
investments in the production of renewable
energy.
Slovakia’s RRP, including the REPowerEU
chapter, has a comprehensive set of reforms
and investments for the green transition.
As
part of the measures covered by payment
requests submitted over the past year, the
Railways Act and related legislation on transport
infrastructure were amended to improve the
management and planning of transport
investments, including through new transport
methodologies to identify projects. In addition, a
new law on public passenger transport was
adopted to transfer traffic from cars to trains and
optimise rail passenger transport through greater
coordination between regional public bus and train
services, as well as between the state, counties,
cities and municipalities on more integrated and
efficient provision of passenger transport.
Promoting fairness, social cohesion and
improving access to basic services are
among the key priorities of EU funding in
Slovakia.
As a result of ERDF support, healthcare
facilities will be able to serve 740 000 more
patients every year. The capacity of social care
facilities will increase, covering a further 900
people, and capacity and conditions in social
housing will be expanded to cover another 9 000
people. The ESF+ is providing EUR 60 million for
‘Development Teams I’, a project of strategic
importance aimed at empowering marginalised
Roma communities in 60 Roma settlements. A
development team has been set up in each of the
municipalities, with the support of the municipality
leadership. The team then helps with the
challenges the Roma population face (housing,
education, health, access to the labour market,
poverty and indebtedness, and planning issues in
the municipality). The development team employs
Roma and non-Roma field workers who assist
specific families, children, young people,
unemployed people, etc. The project has been
running since mid-2023 and will last until 2026.
The project has produced its first tangible results
in the Roma settlements (e.g. more than 16 000
people have been targeted, 719 people employed,
12 000 events held for families and children, and
6 200 counselling activities for unemployed
people).
Slovakia’s RRP contains several reforms and
investments related to fairness and social
policies.
As part of the measures covered by
payment requests submitted over the past year,
Slovakia has improved the efficiency and
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availability of emergency care. More specifically, it
has amended legislation in the field and optimised
the emergency care network by setting up a new
network of ambulance stations and providing a
new definition of emergency care and criteria for
responding to requests for emergency care
services. Slovakia also reorganised long-term
health and palliative and nursing care, to improve
the offer and coordination between types of care
and to make financing more effective. Measures to
improve equity and quality in the education
system included: (i) setting up education support
for children and pupils with special educational
needs and experiencing obstacles to accessing
education; (ii) the creation of a comprehensive
system of counselling for children, pupils, students;
(iii) provision for completing lower secondary
education in vocational schools; and (iv) a new
curriculum for all primary schools organised in
multiannual education cycles. To help Slovakia
implement its RRP, the TSI supported the health
system performance assessment reform.
Table A16.1:Selected
EU funds with adopted allocations - summary data (million EUR)
Instrument/policy
RRF grants (including the RepowerEU allocation)
RRF loans
Allocation 2021-2026
6 408.5
0
Disbursed since 2021 (1)
3 471.8
0
Disbursed since 2021 (3)
(covering total payments to the
Member State on commitments
originating from both 2014-
2020 and 2021-2027
programming periods)
9 242.0
5 004.0
2 052.4
2 033.4
152.1
4.3
Instrument/policy
Allocation 2014-2020 (2)
Allocation 2021-2027
Cohesion policy (total)
European Regional Development Fund (ERDF)
Cohesion Fund (CF)
European Social Fund (ESF, ESF+) and the Youth Employment
Initiative (YEI)
Just Transition Fund (JTF)
Fisheries
European Maritime, Fisheries and Aquaculture Fund (EMFAF)
and the European Maritime and Fisheries Fund (EMFF)
Migration and home affairs
Migration, border management and internal security - AMIF,
BMVI and ISF (4)
The common agricultural policy under the CAP strategic
plan (5)
Total under the CAP strategic plan
European Agricultural Guarantee Fund (EAGF)
European Fund for Agricultural Development (EAFRD)
14 288.4
7 167.0
3 991.0
3 130.4
12 593.7
7 305.6
2 472.8
2 356.3
459.0
7.7
15.2
53.5
Allocation 2023-2027
3 380.0
2 063.1
1 316.9
99.2
36.8
Disbursements under the
CAP Strategic Plan (6)
969.9
759.2
210.7
(1) The cut-off date for data on disbursements under the RRF is 31 May 2025.
(2) Cohesion policy 2014-2020 allocations include REACT-EU appropriations committed in 2021-2022.
(3) These amounts relate only to disbursements made from 2021 onwards and do not include payments made to the Member
State before 2021. Hence the figures do not comprise the totality of payments corresponding to the 2014-2020 allocation. The
cut-off date for data on disbursements under EMFAF and EMFF is 29 April 2025. The cut-off date for data on disbursements
under cohesion policy funds, AMIF, BMVI and ISF is 5 May 2025.
(4) AMIF - Asylum, Migration and Integration Fund; BMVI - Border Management and Visa Instrument; ISF - Internal Security Fund.
(5) Expenditure outside the CAP strategic plan is not included.
(6) The cut-off date for data on EARDF disbursements is 5 May 2025. The information on EAGF disbursements is based on the
Member State declarations until March 2025. Disbursements for the Direct Payments (EAGF) started in 2024.
Source:
European Commission
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Table A16.2:Summary
table on 2019-2024 CSRs
Slovakia
2019 CSR 1
Achieve the medium-term budgetary objective in 2020.
Safeguard the long-term sustainability of public finances, notably that of the
healthcare and pension systems.
2019 CSR 2
Improve the quality and inclusiveness of education at all levels and foster skills.
Enhance access to affordable and quality childcare and long-term care.
Promote integration of disadvantaged groups, in particular Roma.
2019 CSR 3
Focus investment-related economic policy on healthcare,
research and innovation,
transport, notably on its sustainability,
digital infrastructure,
energy efficiency,
competitiveness of small and medium-sized enterprises,
and social housing, taking into account regional disparities.
Increase the use of quality-related and lifecycle cost criteria in public procurement
operations.
2019 CSR 4
Continue to improve the effectiveness of the justice system,
focussing
on
strengthening its independence, including on judicial appointments.
Increase efforts to detect and prosecute corruption, in particular in large-scale
corruption cases.
2020 CSR 1
In line with the general escape clause, take all necessary measures to effectively
address the pandemic, sustain the economy and support the ensuing recovery.
When economic conditions allow, pursue fiscal policies aimed at achieving prudent
medium-term fiscal positions and ensuring debt sustainability, while enhancing
investment.
Strengthen the resilience of the health system in the areas of health workforce,
critical medical products and infrastructure.
Improve primary care provision and coordination between types of care.
2020 CSR 2
Provide adequate income replacement,
and ensure access to social protection and essential services for all.
Strengthen digital skills.
Ensure equal access to quality education.
2020 CSR 3
Effectively implement measures to ensure liquidity for small and medium-sized
enterprises and self-employed.
Close digital infrastructure gaps.
Front-load mature public investment projects
and promote private investment to foster the economic recovery.
Focus investment on the green and digital transition, in particular on clean and
efficient production and use of energy and resources,
sustainable public transport,
and waste management.
2020 CSR 4
Ensure effective supervision and enforcement of the anti-money laundering
framework.
Ensure a favourable business environment
and quality public services through enhanced coordination and policy-making.
Address the integrity concerns in the justice system.
Assessment in May 2025
No longer relevant
No longer relevant
No longer relevant
Some progress
Some progress
Limited progress
Limited progress
Some progress
Some progress
Some progress
Some progress
Some progress
Some progress
Some progress
Limited progress
Limited progress
No progress
No progress
No progress
No longer relevant
SDG 16
SDG 16
Relevant SDGs
SDG 8, 16
SDG 3, 8
SDG 4, 8, 10
SDG 3, 4, 5
SDG 1, 2, 4, 8, 10
SDG 3, 10, 11
SDG 9, 10, 11
SDG 10, 11
SDG 9, 10, 11
SDG 7, 10, 11
SDG 8, 9, 10, 11
SDG 1, 2, 10, 11
SDG 9
No longer relevant
SDG 8, 16
Limited progress
Some progress
Some progress
Substantial progress
Limited progress
Some progress
Limited progress
Some progress
Some progress
Some progress
Some progress
Some progress
Some progress
Some progress
Some progress
Limited progress
Some progress
Limited progress
Limited progress
No progress
SDG 3
SDG 3
SDG 1, 2, 8, 10
SDG 1, 2, 10
SDG 4
SDG 4, 8, 10
SDG 8, 9
SDG 9
SDG 8, 16
SDG 8, 9
SDG 6, 7, 9, 12, 13, 15
SDG 11
SDG 6, 12, 15
SDG 8, 16
SDG 8, 9
SDG 10, 11, 16
SDG 16
(Continued on the next page)
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Table (continued)
2021 CSR 1
In 2022, maintain a supportive fiscal stance, including the impulse provided by the
Recovery and Resilience Facility, and preserve nationally financed investment.
When economic conditions allow, pursue a fiscal policy aimed at achieving prudent
medium-term fiscal positions and ensuring fiscal sustainability in the medium
term.
At the same time, enhance investment to boost growth potential. Pay particular
attention to the composition of public finances, on both the revenue and
expenditure sides of the budget, and to the quality of budgetary measures in order
to ensure a sustainable and inclusive recovery. Prioritise sustainable and growth-
enhancing investment, in particular investment supporting the green and digital
transition.
Give priority to fiscal structural reforms that will help provide financing for public
policy priorities and contribute to the long-term sustainability of public finances,
including, where relevant, by strengthening the coverage, adequacy and
sustainability of health and social protection systems for all.
2022 CSR 1
In 2023, ensure that the growth of nationally financed primary current expenditure
is in line with an overall neutral policy stance, taking into account continued
temporary and targeted support to households and firms most vulnerable to
energy price hikes and to people fleeing Ukraine. Stand ready to adjust current
spending to the evolving situation.
Expand public investment for the green and digital transitions, and for energy
security taking into account the REPowerEU initiative, including by making use of
the Recovery and Resilience Facility and other Union funds.
For the period beyond 2023, pursue a fiscal policy aimed at achieving prudent
medium-term fiscal positions.
Make the tax mix more efficient and more supportive to inclusive and sustainable
growth, including by leveraging the potential of environmental and property
taxation.
Continue to strengthen tax compliance, including by further digitalising tax
administration.
2022 CSR 2
Proceed with the implementation of its recovery and resilience plan, in line with the
milestones and targets included in the Council Implementing Decision of 13 July
2021.
Submit the 2021-2027 cohesion policy programming documents with a view to
finalising their negotiations with the Commission and subsequently starting their
implementation.
2022 CSR 3
Reduce overall reliance on fossil fuels and diversify imports of fossil fuels.
Accelerate the deployment of renewables by further facilitating grid access,
introducing measures to streamline permitting and administrative procedures
and modernising the electricity network.
Reduce reliance on natural gas in heating and industry.
Adjust renovation policies to accelerate and incentivise deep renovations of
buildings.
No longer relevant
No longer relevant
SDG 8, 16
No longer relevant
SDG 8, 16
No longer relevant
SDG 8, 16
No longer relevant
No longer relevant
SDG 8, 16
No longer relevant
SDG 8, 16
No longer relevant
No longer relevant
Limited progress
Some progress
SDG 8, 16
SDG 8, 16
SDG 8, 10, 12
SDG 8, 9, 16
RRP implementation is monitored by assessing RRP payment
requests and analysing reports published twice a year on the
achievement of the milestones and targets. These are to be
reflected in the country reports.
Progress on the cohesion policy programming documents is
monitored under the EU cohesion policy.
Some progress
Some progress
Some progress
Substantial progress
Limited progress
Some progress
SDG 7, 9, 13
SDG 7, 8, 9, 13
SDG 7, 9, 13
SDG 7, 9, 13
SDG 7
(Continued on the next page)
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Table (continued)
2023 CSR 1
Wind down the emergency energy support measures in force, using the related
savings to reduce the government deficit, as soon as possible in 2023 and 2024.
Should renewed energy price increases necessitate new or continued support
measures, ensure that these are targeted at protecting vulnerable households and
firms, fiscally affordable, and preserve incentives for energy savings.
Ensure prudent fiscal policy, in particular by limiting the nominal increase in
nationally financed net primary expenditure in 2024 to not more than 5.7%.
Preserve nationally financed public investment and ensure the effective absorption
of RRF grants and other EU funds, in particular to foster the green and digital
transitions.
For the period beyond 2024, continue to pursue a medium-term fiscal strategy of
gradual and sustainable consolidation, combined with investments and reforms
conducive to higher sustainable growth, to achieve a prudent medium-term fiscal
position.
Make the tax mix more efficient and more supportive of inclusive and sustainable
growth, including by leveraging the potential of environmental and property
taxation.
Continue to strengthen tax compliance, including by further digitalising the tax
administration.
Reduce the risks related to household debt by supporting housing supply and the
expansion of the rental market.
2023 CSR 2
Maintain the momentum in the steady implementation of the recovery and
resilience plan and, following the recent submission of the addendum, including the
REPowerEU chapter, rapidly start the implementation of the related measures.
Proceed with the speedy implementation of cohesion policy programmes, in close
complementarity and synergy with the recovery and resilience plan.
2023 CSR 3
Reduce the
economy’s
reliance on fossil fuels, in particular natural gas in industry
and heating, and diversify imports of fossil fuels.
Accelerate the deployment of renewables, particularly for wind, solar, geothermal
and renewable gases, in line with relevant sustainability criteria.
Simplify permitting and administrative procedures for deploying renewables,
including by establishing ‘one-stop shops’ and ‘go-to’ areas.
Modernise the electricity network and make the procedures for connecting
renewables to the grid more efficient and less burdensome.
Accelerate and incentivise deep renovations of public and private buildings,
address energy poverty through housing renovations for low-income households,
and step up policy efforts aimed at the provision and acquisition of skills and
competences needed for the green transition.
Some progress
Substantial progress
SDG 8, 16
Full implementation
Full implementation
SDG 8, 16
SDG 8, 16
Limited progress
SDG 8, 16
Limited progress
SDG 8, 10, 12
Some progress
Limited progress
SDG 8, 9, 16
SDG 8
RRP implementation is monitored through the assessment of RRP
payment requests and analysis of the bi-annual reporting on the
achievement of the milestones and targets, to be reflected in the
country reports. Progress with the cohesion policy is monitored in
the context of the Cohesion Policy of the European Union.
Limited progress
Some progress
Limited progress
Limited progress
Some progress
Some progress
Some progress
Limited progress
SDG 7, 9, 13
SDG 7, 9, 13
SDG 7, 8, 9, 13,
SDG 7, 8, 9, 13
SDG 7
SDG 1, 2, 7, 10
SDG 4
(Continued on the next page)
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Table (continued)
2024 CSR 1
Submit the medium-term fiscal-structural plan in a timely manner.
In line with the requirements of the reformed Stability and Growth Pact, limit the
growth in net expenditure in 2025 to a rate consistent with inter alia, reducing the
general government deficit towards the 3% of GDP Treaty reference value and
keeping the general government debt at a prudent level over the medium term.
Make the tax mix more efficient, including by reducing disincentives on the labour
market, and making a stronger use of environmental and recurrent property
taxation.
Reduce costly spending measures, also by implementing spending reviews.
Continue to strengthen tax compliance, including by further digitalising tax
administration.
Reduce the risks related to household debt by supporting housing supply and the
expansion of the rental market.
2024 CSR 2
Some progress
Full implementation
SDG 8, 16
Full implementation
SDG 8, 16
Limited progress
Some progress
Some progress
Limited progress
SDG 8, 10, 12
SDG 8, 16
SDG 8, 9, 16
SDG 8
Ensure effective governance, strengthen administrative capacity to manage EU
funds, accelerate investments and maintain momentum in the implementation of
reforms. Address relevant challenges to allow for continued, swift and effective
RRP implementation is monitored through the assessment of RRP
implementation of the recovery and resilience plan, including the REPowerEU
payment requests and analysis of the bi-annual reporting on the
chapter, ensuring completion of reforms and investments by August 2026.
achievement of the milestones and targets. Progress with the
Accelerate the implementation of the cohesion policy programme. In the context of
cohesion policy programming is monitored in the context of the
its mid-term review, continue focusing on the agreed priorities, taking action to
Cohesion Policy of the European Union.
better address the investment needs in the sustainable use of natural resources,
while considering the opportunities provided by the Strategic Technologies for
Europe Platform initiative to improve competitiveness.
2024 CSR 3
Strengthen the effectiveness, independence and integrity of the judicial and
anticorruption system
including by ensuring that adequate safeguards for the effective investigation and
prosecution of high-level corruption cases are in place.
Improve competitiveness and productivity, including by ensuring transparency and
competition in public procurement processes, to promote good governance and
improve the effectiveness of public spending.
Strengthen the teaching of basic skills,
including for children from disadvantaged backgrounds such as from marginalised
Roma communities,
and increase the availability and use of affordable high-quality early childhood
education and care for children under the age of 3.
Strengthen resource waste management and reuse of municipal and packaging
waste,
and the conservation of natural resources by mainstreaming nature-based
solutions and finalising zonation of nature-protected areas.
Limited progress
No progress
No progress
Limited progress
Limited progress
Limited progress
No porgress
Limited progress
No progress
SDG 16
SDG 16
SDG 9, 16
SDG 4
SDG 4, 8, 10
SDG 4, 5
SDG 1, 6, 7, 8, 11, 12, 13,
15
SDG 1, 6, 7, 8, 11, 12, 13,
15
Source:
European Commission
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ANNEX 17: COMPETITIVE REGIONS
The degree of economic and social
development is higher in the west of
Slovakia than in the east.
Boosting innovation
capacity would help to increase the growth
potential and competitiveness of the less
developed regions. Many Roma communities,
which are concentrated in the poorer areas of
Slovakia continue to face marginalisation,
Graph A17.1:
GDP per head in purchasing power
standard (PPS)
200
Competitiveness
Regional disparities are closely linked to a
persistent labour productivity gap between
Bratislava and the rest of Slovakia.
In 2022,
labour productivity in the Bratislava capital region,
measured as real GDP per hour worked, reached
EUR 33.15, significantly higher than the national
average of EUR 23.50 (Graph A17.2). Stronger
productivity growth in the regions would help the
country catch up with the EU average.
Graph A17.2:
Labour productivity per hour
45
40
175
150
125
100
2015 EUR per hour worked
75
50
25
35
30
25
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
20
15
10
Bratislavsk�½ kraj
Stredné Slovensko
Západné Slovensko
V�½chodné Slovensko
5
0
Unit: Index EU-27=100
Source:
ARDECO (JRC)
2012
2014
2016
2013
2015
2017
2018
2019
2020
2021
Other NUTS 2 regions
Capital region
National average
2022
EU27
Regional disparities in Slovakia have
diminished but large gaps persist between
the capital region, where economic activity is
concentrated, and the rest of the country.
In
2023, GDP per head in the capital region of
Bratislava (Bratislavsk�½ kraj) corresponded to
148% of the EU average. The other three regions,
Western (Západné Slovensko), Central (Stredné
Slovensko) and Eastern Slovakia (V�½chodné
Slovensko), were far behind, at 70%, 61% and
54% of the EU average respectively. While GDP
per head in Bratislava was boosted by commuters,
the household income per head (at 108% of the
EU average in Bratislava and between 61% and
69% in the other three regions in 2021) also
points to significant disparities. The gap has
narrowed due to the capital region's relative
decline (Graph A17.1). In 2014-2023, real GDP per
head growth averaged 0.4% per year in Bratislava,
while in the other regions it was between 2.4%
and 3.2%. More dynamic growth in the less
developed regions would help them catch up and
help the country as a whole to catch up with the
rest of the EU.
Unit: Real GDP per hour worked (EUR, 2015 prices)
Source:
ARDECO (JRC)
Source:
Stronger innovation performance and higher
investment in R&D would support regional
development.
R&D expenditure in the business
enterprise sector, at 0.75% of GDP in Bratislava,
0.64% in Western Slovakia and about half of that
in the other two regions, is far below the EU
average of 1.53%. The Bratislava region is only a
moderate innovator, while the other three regions
are classified as emerging innovators (the lowest
category) on the regional innovation scoreboard
2023. However, there are positive trends, such as
an increase in innovative activities among small to
medium-sized enterprises in Central Slovakia, or
rising numbers of ICT specialists and R&D
expenditure among businesses in Eastern Slovakia.
The capital region is more competitive than
the other three regions and attracts new
inhabitants.
Differences in the business
environment, as well as transport infrastructure,
human capital and labour market conditions
contribute to significant gaps in competitiveness.
Only in Bratislava is the Regional Competitiveness
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Table A17.1:Selection
of indicators at regional level in Slovakia
GDP per
head
(PPS)
Real GDP
per head
growth
R&D
Productivity -
Real
Productivity -
Real
Human
Employment
expenditure
GDP per productivity GDP per productivity
resources in
in
Gender
in business
Unemploy-
person
growth
hour
growth
science and knowledge- employment
enterprise
ment rate
employed (per person worked
(per hour
technology
intensive
gap
sector
(PPS)
employed)
(PPS)
worked)
(core)
services
(BERD)
At-risk-of-
poverty or
social
exclusion
CO2
Access to
emissions
alternative
from fossil
fuel
fuels per
infrastructure
head
Number of
electric
vehicles
charging
points within
10 km
2022
287
47
220
16
15
28
Green
employment -
in sustainable
but
competitive
sectors
Index
EU-27 = 100
Average
Index
annual
EU-27 = 100
% change
Average
annual
% change
Index
EU-27 = 100
Average
annual
% change
% of GDP
Difference
between
% of total
% of total
men and % of labour % of total
employment employment women
force
population
(percentage
point)
2024
49.2
42.8
68.1
39.0
39.3
37.2
2024
41.5
36.6
58.0
29.9
33.8
35.8
2024
10.0
8.9
1.5
9.5
9.0
11.9
2024
5.9
5.3
2.3
3.3
5.1
9.6
2024
21.0
18.3
8.6
15.8
18.1
25.7
tCO2
% of total
employment
2023
European Union (27 MS)
Slovakia
Bratislavsk�½ kraj
Západné Slovensko
Stredné Slovensko
V�½chodné Slovensko
100
74
148
70
61
54
2014-2023
1.6
2.4
0.4
2.4
2.9
3.2
2023
100
79
111
75
66
71
2014-2023
0.6
1.3
0.7
1.3
1.4
2.1
2022
100
76
108
69
66
69
2013-2022
0.9
2.3
2.2
2.2
2.4
2.5
2022
1.53
0.56
0.75
0.64
0.44
0.31
2023
7.1
8.2
7.7
8.6
5.3
10.5
2020
15.1
7.9
34.7
3.5
2.9
4.6
Source:
Eurostat and ARDECO (JRC)
Index above the EU average set at 100. The Index
measures a region’s ability to offer an attractive
environment for firms and residents to live and
work in (Map A17.1). In 2013-2022, Western,
Central and Eastern Slovakia were losing residents
at an annual rate of 1-3 per 1 000 due to both
natural population decrease and outmigration.
Conversely, the Bratislava capital region attracted
residents (+17 per 1 000 annually), primarily due
to net migration.
Social fairness
Slovakia’s labour market has
improved
significantly, but joblessness in Eastern
Slovakia remains a concern, especially for
young people.
All regions have experienced
employment growth compared to pre-pandemic
levels. In 2024, the capital region boasted an
impressive 85.4% employment rate. The
employment rates in Western and Central Slovakia
(79.4% and 79.0% respectively) were also above
the EU average of 75.8%, while Eastern Slovakia
lagged behind at 72.5%. The unemployment rate
in Eastern Slovakia, at 9.6% in 2024, declined less
and remained at a much higher level than in the
other regions (Table A17.1). The percentage of
young people (15-29 years old) who are not in
education, employment or training, at 16.9% in
Eastern Slovakia, is twice as high as in other
regions. The capital region stands out, with a
nearly equal employment rate of women and men,
while the other regions exhibit a gender gap of 9-
12 percentage points, with more men employed.
Rural areas enjoy good access to primary
education, but there is room for improvement
in access to healthcare.
In the rural areas, 50%
of children under the age of 15 live within a 15-
minute walk from a school, exceeding the EU
average of 31%. However, the performance gap in
basic skills (mathematics, reading and science)
between schools in rural and urban areas was
among the highest in the EU (
278
), suggesting
(
278
)
Programme for International Student Assessment 2022
Slovak Republic
Map A17.1:
Regional Competitiveness Index 2.0,
2022 edition
Source:
DG REGIO, JRC based on Eurostat
Human capital is concentrated in Bratislava.
The percentage of people aged 25-64 with tertiary
education was 52.6% in the region of Bratislava,
above the EU average of 36.1% and far more than
in the other regions, which range from 24.6% to
26.9%. Employment in science, technology and
knowledge-intensive services shows a similar
pattern (Table A17.1).
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3035393_0112.png
challenges linked to teaching quality and socio-
economic aspects (see Annex 12). Less than 20%
of the rural population resides within a 10-minute
drive of a hospital, significantly lower than the EU
average of 29% (Graph A17.3).
Graph A17.3:
Access to healthcare and primary
education in rural areas, 2023
EU
Slovensko
poverty or social exclusion (23.1% in 2022) is
higher than the EU average (21.6%). Worse labour
market, social and education outcomes in regions
with a high presence of marginalised Roma
communities confirm the long-standing challenges
of Roma inclusion. Cohesion policy 2021-2027
allocates significant funding to projects targeting
Roma communities as well as municipalities with a
significant
Roma
population.
Sufficient
administrative capacity in fund management,
more expedite public procurement procedures and
resolving problems with land ownership rights
would help to enable much-needed investments.
V�½chodné Slovensko
Západné Slovensko
Bratislavsk�½ kraj
Stredné Slovensko
0
20
40
60
Sustainability
Regional disparities in greenhouse gas
emissions persist and decarbonisation has
stalled outside the capital region.
Between
1990 and 2023, Slovakia achieved a 42%
reduction in greenhouse gas emissions. In 2023,
per head emissions ranged from 5.3 tonnes of CO
2
equivalent in Central Slovakia to 10.5 tonnes in
Eastern Slovakia. Rapid emissions reduction
occurred in the 1990s. While Bratislava achieved
its record low in 2023, progress towards further
decarbonisation has stagnated in Western, Central
and Eastern Slovakia.
Bratislava surpasses other regions in green
jobs and sustainable mobility infrastructure
but lags behind regional peers.
Slovakia’s
electric vehicle charging infrastructure requires
significant development. While Bratislava, with
220 charging points within a 10 km radius, leads
the way, it still lags behind neighbouring capitals
like Vienna in Austria, which boasts seven times
more charging points. The remaining Slovak
regions fare worse, with fewer than 30 charging
points within a 10 km radius (
280
). Green
employment is concentrated in Bratislava, where
35% of jobs are classified as sustainable and
competitive. This is significantly higher than in the
other regions, where the percentage is below 5%.
Access to healthcare (% of population)
Access to primary school (% of children under 15 years old)
Units: Percentage of population that can reach nearest
hospital within 10 minutes by car (EU-27); Percentage of
children under 15 years old who can reach primary school
within a 15-minute walk (EU-24).
Source:
Eurostat
Housing affordability is an issue in the
capital in particular.
An average household in
the Bratislava region needs almost 18 years to
accumulate the average price of a 100 m²
dwelling, while in the other regions this ranges
between 8 and 13 years (
279
). While Slovakia has
one of the highest rates of home ownership in the
EU (92.5%), housing prices relative to incomes are
also among the highest. The rental market is
underdeveloped, and social rental housing
represents only 2.5% of the total housing stock.
More people were overburdened by housing costs
in Eastern Slovakia (8.6%) than in the other
regions in 2024. Eastern Slovakia has the highest
percentage of population unable to keep their
homes adequately warm (15.8%).
While the risk of poverty is relatively low in
Slovakia, improving the living conditions and
social inclusion of Roma people remains a
high priority.
Eastern Slovakia is the only region
in which the percentage of people at risk of
(
279
)
OECD (2024), OECD Economic Surveys: Slovak Republic
2024, OECD Publishing, Paris.
(
280
) Indicators of access to alternative fuel infrastructure are
based on calculations by DG REGIO and the JRC, using data
from the European Alternative Fuels Observatory (EAFO),
Eurostat, TomTom and Eco-Movement.
111