COMMISSION STAFF WORKING DOCUMENT Analysis of the recovery and resilience plan of Slovenia Accompanying the document Proposal for a COUNCIL IMPLEMENTING DECISION on the approval of the assessment of the recovery and resilience plan for Slovenia
Date: 2021-07-01
Institutions: European Commission, Secretariat-General
Subjects: EU aid, EU loan, Slovenia, coronavirus disease, economic and social cohesion, economic recovery, economic reform, epidemic, investment, structural adjustment

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 1.7.2021  SWD(2021) 184 final  COMMISSION STAFF WORKING DOCUMENT Analysis of the recovery and resilience plan of Slovenia Accompanying the document Proposal for a COUNCIL IMPLEMENTING DECISION on the approval of the assessment of the recovery and resilience plan for Slovenia {COM(2021) 384 final}  
 
 
Table of contents 
1. 

Executive summary ............................................................................................................................... 2 

2.  Recovery and resilience challenges: scene-setter ................................................................................ 4 

2.1.  Macroeconomic outlook and developments since the 2020 country report ............................... 4 

2.2. 
Challenges related to sustainable growth, cohesion, resilience and policies for the next 
generation ................................................................................................................................................. 7 

2.3. 

Challenges related to the green and digital transition ............................................................... 11 

Green dimension ................................................................................................................................. 11 

Digital dimension ................................................................................................................................ 14 

3.  Objectives, structure and governance of the plan.............................................................................. 19 

3.1.  Overall strategy of the plan ........................................................................................................ 19 

3.2. 

Implementation aspects of the plan ........................................................................................... 21 

4. 

Summary of the assessment of the plan ............................................................................................ 25 

4.1. 

Comprehensive and adequately balanced response to the economic and social situation ...... 25 

4.2. 

Link with country-specific recommendations and the European Semester ............................... 31 

4.3.  Growth potential, job creation, economic, institutional and social resilience, European Pillar of 
Social Rights, mitigating the impact of the crisis, and social territorial cohesion and convergence ...... 37 

4.4. 

The principle of ‘do no significant harm’ .................................................................................... 45 

4.5.  Green transition .......................................................................................................................... 47 

4.6. 

Digital transition .......................................................................................................................... 53 

4.7. 

Lasting impact of the plan ........................................................................................................... 58 

4.8.  Milestones, targets, monitoring and implementation................................................................ 60 

4.9. 

Costing ........................................................................................................................................ 62 

4.10.  Controls and audit ....................................................................................................................... 64 

4.11.  Coherence ................................................................................................................................... 70 

Annex - Climate and Digital tagging in the Recovery and Resilience Plan of Slovenia ............................... 73 

1 

 
 
 
 
 
 
 
1.  EXECUTIVE SUMMARY  

Slovenia’s  economy  was  severely  disrupted  by  the  COVID-19  pandemic  –  with  GDP 
declining  by  5.5%  in  2020.    The  economy  is  set  to  recover  in  2021-22  aided  by  policy 
measures,  investments  and  reforms  financed  by  the  recovery  and  resilience  plan  and  a  gradual 
lifting  of  restrictions.  Losses  in  employment  were  limited,  thanks  to  measures  taken  by  the 
government to support jobs.  Recovery signs are already visible as of the first quarter of 2021, 
and  it  is  expected  that  growth  will  gain  momentum  over  the  remaining  2021  and  into  2022. 
Public  finances  have  also  been  severely  affected,  but  higher  levels  of  temporary  discretionary 
spending helped to fend off a deeper decline in output and employment. The general government 
balance turned from  surplus  of 0.4% of GDP in  2019 to  a deficit of 8.4% of GDP in  2020.  In 
2021, it is expected to reach 8.6% of GDP and to be below 3% of GDP only in 2024. 

Slovenia  has  requested  EUR 1.78 billion  of  non-repayable  financial  support  and 
EUR 705 million  in  loans  under  the  Recovery  and  Resilience  Facility.  Together,  this 
represents some 5.4% of GDP. Slovenia has also signalled that a further loan request may follow 
at  a later stage. Slovenia’s recovery  and resilience plan contributes to  the economic  and social 
recovery and the long-term development of the country. It addresses a significant subset of long-
standing,  structural  challenges  as  identified  in  relevant  country-specific  recommendations 
addressed to Slovenia by the Council in 2019 and in 2020, notably in the areas of long-term care, 
healthcare,  pensions  and  labour  market,  education  and  skills,  research,  development  and 
innovation, green and digital transition, business environment and public procurement. The plan 
is also in line with the Draft Council Recommendations on the economic policy in the euro area1. 

The plan is structured around four ‘clusters’: ‘Green transition’; ‘Digital transformation’; 
‘Smart,  sustainable  and  inclusive  growth’;  and  ‘Health  and  welfare’.  In  the  short  and 
medium  term,  the plan will boost sustainable and digital  investment  across  most sectors of the 
economy,  from  energy  production  to  tourism,  with  the  double  objective  of  kick-starting  the 
economy  and  supporting  the  twin  transition.  In  the  longer  term,  reforms  targeting  the  public 
administration,  the  business  environment,  the  labour  market  and  the  education  system  will 
increase  productivity  and  competitiveness,  thus  strengthening  Slovenia’s  growth  potential  and 
job  creation.  Reforms  will  also  strengthen  Slovenia’s  social  safety  net  and  ensure  that  the 
country is  more resilient to  future shocks. Overall, the plan constitutes a sufficient  response to 
the economic and social situation in the country.  

Overall,  the  plan  constitutes  a  comprehensive  and  adequately  balanced  response  to  the 
economic and social situation of Slovenia, across the six policy pillars referred to in Article 
3  of  the  Recovery  and  Resilience  Facility  Regulation.  Several  reforms  will  strengthen 

1  Pending  final  adoption  by  the  Council,  after  endorsement  by  the  European  Council.  The  text  agreed  by  the 
Eurogroup  on  16  December  2020  is  available  at: https://data.consilium.europa.eu/doc/document/ST-14356-2020-
INIT/en/pdf 

2 

 
 
                                                           
economic and social resilience. These include an overhaul of the social security system (i.e. the 
healthcare, long-term care and pension systems)  addressing demographic trends and challenges 
linked  to  a  rapidly  aging  society.  Structural  reforms,  especially  in  the  labour  market,  are 
expected  to  raise  labour  market  participation  and  promote  longer  working  lives.  These  will,  in 
turn,  raise  long-term  growth  and  also  address  fiscal  sustainability  challenges.  The  envisaged 
modernisation of public administration and improvements in the business environment will also 
be  instrumental  in  the  recovery  process,  especially  as  the  country  aims  to  strengthen  its 
competitive position in the region. The plan addresses coherently social challenges in line with 
the  European  Pillar  of  Social  Rights,  notably  with  its  reforms  and  investments  on  healthcare, 
long-term  care,  active  labour  market  policy  and  affordable  housing.  The  plan  also  includes 
various  policies  for  the  next  generation,  notably  on  improving  the  quality  of  education, 
modernising  schools,  promoting  the  development  of  competences  for  the  digital  and  green 
transition,  supporting  youth  employment  and  addressing  demographic  trends  to  ensure  greater 
intergenerational fairness.  

The  plan  has  a  strong  focus  on  the  green  transition,  with  a  dedicated  cluster  of  five 
components,  amounting  to  more  than  two-fifths  of  the  plan’s  total  financial  allocation.  It 
includes key reforms to unlock the renewable energy potential and expand sustainable mobility, 
which  are  essential  steps  for  decarbonising  the  energy  and  transport  sectors.  Investments  in 
renewable energy sources, energy efficiency of public buildings, flood prevention, upgrading rail 
infrastructures,  and  dedicated  measures  on  the  circular  economy  will  also  facilitate  the  green 
transition  in  key  sectors  of  the  economy,  including  through  reforms  on  green  budgeting  and 
public  procurement  criteria.  Measures  supporting  climate  change  objectives  account  for  42.4% 
of the plan’s total allocation. The plan also indirectly supports biodiversity conservation with a 
key  forestry  reform  and  establishment  of  a  seed,  nursery  and  forest  protection  centre,  by 
promoting  nature-based  solutions  for  climate  change  adaptation  measures,  and  by  prioritising 
wastewater  investments  with  positive  impacts  on  Natura  2000  sites.  All  measures  in  the 
Slovenian plan have passed the ex-ante assessment of the ‘do no significant harm’ principle. 

The plan is expected to significantly contribute to Slovenia’s digitalisation. This will include 
the introduction of new electronic identification documents for citizens and companies as well as 
investments in connectivity and digital skills to reduce the digital divide. The plan has a strong 
focus  on  the  digitalisation  of  the  public  sector,  in  particular  justice  and  e-health,  and  includes 
important  measures  to  foster  digital  literacy  in  the  education  system.  The  plan  incorporates  a 
strong  cross-border  dimension,  with  a  number  of  important  multi-country  projects  on  cloud, 
microelectronics, quantum communication and blockchain technology. Overall, measures with a 
digital impact account for 21.4% of the plan’s total allocation. 

The  plan  includes  coherent  and  mutually-reinforcing  actions  and  is  expected  to  have 
lasting  environmental  and  socio-economic  impacts.  The  plan’s  major  structural  reforms,  in 
particular those of the social security system, along with the important investments in the twin 
transition  (e.g.  flood  protection  and  digitalisation  of  the  public  administration)  are  expected  to 
have positive long-term effects. If properly implemented, the plan should prepare the country to 
face  key  structural  challenges,  notably  on  demographic  change,  climate  mitigation  and 
adaptation, and fiscal sustainability. The measures included in the plan cover all seven European 

3 

 
 
flagship  areas,  with  a  particular  focus  on  Power  Up,  Recharge  and  Refuel,  Modernise,  and 
Reskill and Upskill. 

Slovenia  has  designed  a  robust  legal  and  organisational  framework  underpinning  the 
implementation  of  the  plan.  This  includes  the  establishment  of  the  Office  for  the 
Implementation of the recovery and resilience plan as the Coordinating Authority, the adoption 
of a National  Decree and Guidelines of the Coordinating Authority and  other entities. Pending 
legislative actions in this area will be completed prior to the first instalment. The milestones and 
targets  of  the  Slovenian  plan  constitute  an  appropriate  system  for  monitoring  the  plan’s 
implementation. 

Slovenia  has  provided  clear  and  sufficient  information  and  evidence  on  costs.  Although 
Slovenia has not provided a validation of the cost estimates by an independent public body, the 
estimated total costs of the plan seem reasonable, plausible and proportionate. The total costs of 
the plan do not include elements that would be covered by existing or planned Union financing. 

The  overall  strategy  and  the  measures  contained  in  the  plan  are  coherent.  Each  cluster  is 
built  around  components  containing  consistent  packages  of  mutually-reinforcing  reforms  and 
investments, pursuing complementary aims. For example, investments to promote the use of new 
technologies  in  the  public  administration  are  complemented  by  reforms  to  promote  e-services 
and improve the digital skills of staff. These are closely linked to investments in digital education 
and skills,  and investments  in  the digitalisation across a variety of economic sectors, including 
smart  energy  grids,  rail  and  road  infrastructures.  The  measures’  objectives  are  also  well 
embedded  in  European  and  national  initiatives  and  complement  particularly  regional  and 
cohesion policies.  

Chart 1: Assessment scheme 

(1)  
Balanced 
Response  
A  

(2)  
CSRs*  

A  

(3)  
Growth, 
jobs…  
A  

(4)  
DNSH**  

A  

(5)  
Green 
target  
A  

(6)  
Digital 
target  
A  

(7)  
Lasting 
impact  
A  

(8)  
M&T*** 

(9)  
Costing  

A 

B  

(10)  
Control 
systems  
A  

(11)  
Coherence  

A  

* CSR: country-specific recommendations; ** DNSH: Do no significant harm; *** M&T: milestones and targets. 

2.  RECOVERY AND RESILIENCE CHALLENGES: SCENE-SETTER 

2.1. Macroeconomic outlook and developments since the 2020 country report  

Slovenia’s  economy  was  severely  disrupted  by  the  COVID-19  pandemic,  with  GDP 
declining  by  5.5%  in  2020,  but  prompt  policy  actions  helped  to  minimise  its  impact  in 
particular on employment.  Aggregate demand declined by 7.6% with private consumption and 
investment  in  machinery  most  severely  affected,  falling  by  9.7%  11.1%  respectively.  Overall, 
imports declined faster than exports, and the growth contribution from net exports was positive. 
The economy appears to have started its recovery in the first quarter of 2021 and according to the 
Commission 2021 spring forecast, the economy is now projected to grow by 4.9% in 2021 and 
by 5.1% in 2022.  

4 

 
 
 
The  labour  market  remained  quite  resilient  considering  the  unfavourable  economic 
environment,  benefiting  from  substantial  government  support.  The  unemployment  rate 
increased  modestly  from  an  annual  average  of  4.5%  in  2019  to  5.0%  in  2020.  Based  on  the 
Commission 2021 spring forecast, employment is expected to substantially recuperate the losses 
incurred  in  2020,  although  hours  worked  will  adjust  more  quickly  than  employment  and  the 
recovery in service sectors is likely to be slower. The unemployment rate is projected to remain 
at  5% in  2021 before falling to  4.8% in  2022. Inflation continues to  remain  contained, but  has 
accelerated to 2.2% in May 2021 and wages are projected to also grow more moderately. 

While the data for 2020 is not yet available, it can be expected that the impact of the crisis 
on  Slovenia’s  social  conditions  was  also  limited  thanks  to  timely  policy  intervention. 
Slovenia is a relatively equal society, income distribution is among the most equal in the EU and 
the ratio of minimum wage to average wage is among the highest in the EU. The share of people 
at  risk of poverty or social exclusion (14.4% in 2019) was significantly  below the EU average 
(20.9%  in  2019).  However,  poverty  among  elderly  people,  especially  among  women,  is  still  a 
concern. In 2019, the at-risk-of poverty or social-exclusion (AROPE) rate for the age group 65+ 
was higher than the EU average (20.5% compared to EU average of 18.4%). The AROPE rate 
was also significantly lower in West Slovenia (11.5%) than in the East Slovenia (17.0%). 

Fiscal policy provided extensive support to businesses and households during the COVID-
19  crisis.  The  general  government  balance  turned  from  surplus  of  0.4%  of  GDP  in  2019  to  a 
deficit of 8.4% of GDP in 2020. The annual change in the primary budget balance amounted to -
8.9% of GDP, including discretionary budgetary measures aimed at mitigating the consequences 
of the pandemic of 5.2% of GDP. In 2021, the budget deficit is expected to reach 8.6% of GDP 
and  is  only  expected  to  fall  below  3%  of  GDP  in  2024.  Discretionary  policy  measures  in 
response  to  the  COVID-19  pandemic  are  forecast  to  amount  to  2.6%  of  GDP  in  2021.  These 
measures include, among others, (i) wage compensations for employees staying at home, (ii) a 
monthly basic income for self-employed workers and farmers, (iii) wage supplements for special 
working  conditions  for  public  sector  employees,  and  (iv)  coverage  of  companies’  fixed  costs. 
Most  of  the  COVID-19-related  measures  are  expected  to  be  phased  out  by  the  end  of  2022. 
Whilst Slovenia’s public debt was on a declining path prior to the COVID-19 crisis, the debt-to-
GDP  ratio  increased  from  65.6%  in  2019  to  80.8%  in  2020.  With  the  expected  economic 
rebound, the public debt-to-GDP ratio is set to decrease already in 2021, but it will take years for 
it to reach its pre-pandemic level.  

Fiscal sustainability risks are low in the short term, but continued monitoring is warranted. 
Based  on  the  Commission’s  S0  indicator,  which  is  presently  below  its  critical  threshold,  risks 
appear  contained.  Financial  market  data  show  stable  spreads  of  credit  defaults  swaps  and  a 
gradually  improving  credit  rating,  prior  to  and  during  the  crisis.  However,  if  the  recovery  is 
delayed  and/or  crisis-related  spending  turns  out  to  be  permanent  or  revenues  fall  short  of  the 
forecast, risks to fiscal sustainability will intensify. 

5 

 
 
Over  the  medium  term,  fiscal  sustainability  risks  are  deemed  to  be  medium,  given  the 
significant  level  of  debt  and  sensitivity  to  macroeconomic  shocks.  Under  the  baseline 
scenario, the government debt level is expected to reach its peak in 2025 and fall afterwards to 
70.8%  of  GDP  in  2031.2  Moreover,  the  debt  trajectory  is  sensitive  to  macroeconomic  shocks, 
with a significant probability of the debt ratio to be higher in 2025 than in 2020, according to a 
stochastic  extension  of  the  baseline  projection.  The  S1  indicator  confirms  the  medium-risk 
category.  Contingent  liability  risks  remain  in  the  banking  sector.  Although  the  ratio  of  non-
performing loans was on the declining path before the crisis, it still remained above the critical 
threshold. The debt sustainability risks are also aggravated by a high share of government debt 
held  by  non-residents.  However,  the  increase  in  the  average  residual  maturity  has  reduced  the 
short-term rollover risks linked to significant levels of government debt. The implementation of 
reforms  and  investments  under  the  Next  Generation  EU,  notably  the  Recovery  and  Resilience 
Facility, is expected to have a substantial positive and long-lasting impact on GDP growth in the 
coming years, which, ceteris paribus, should contribute to strengthening debt sustainability. 

Driven by rising age-related expenditure, fiscal sustainability risks are deemed to be high 
in the long term.  The S2 indicator indicates high risk over the long-term  due to  the projected 
increase  of  ageing  costs.  This  is  in  particular  driven  by  future  public  pension  spending 
developments, with a projected increase from 10% of GDP in 2019 to 16.1% of GDP in 2057, 
according  to  the  latest  2021  Ageing  Report.  This  represents  the  second  highest  increase  in  the 
EU.   

The crisis has also impacted macroeconomic imbalances which warrant close monitoring. 
Specifically, the 2021 Alert  Mechanism Report  highlighted risks related  to  the housing market 
and government debt in Slovenia. Real house prices grew by 5.3% in 2020, below but close to 
the  MIP  scoreboard  threshold  of  6%.  Private  sector  debt  increased  in  2020,  mostly  due  to  the 
decline  in  GDP,  since  net  credit  flows  remained  subdued  despite  generous  breaks  to  loan 
repayments mandated by the government. Still, the private debt ratio to GDP in Slovenia remains 
below  the  MIP  scoreboard  threshold.  Government  debt  increased  strongly  in  2020,  reaching 
80.8% of GDP, due to decline in economic activity and policy response to the crisis. The current 
account  surplus,  already  high  before  the  crisis,  widened  further  –  on  the  back  of  falling 
investment and consumption – while the net international investment position worsened slightly. 
Nominal  unit  labour  costs  growth  increased  further  in  2020,  bringing  the  3-year  percentage 
change to 14.8%, significantly above the MIP scoreboard threshold of 9%.  

2  The  Recovery  and  Resilience  Facility  is  included  in  the  baseline  projection  in  so  far  as  sovereign  financing 
conditions  are  expected  to  remain  favourable  and  stable  over  the  medium  term.  The  investments  to  be  financed 
under the facility are only partially included in the Commission Autumn 2020 forecast. 

6 

 
 
                                                           
The  macroeconomic  scenario  underpinning  the  plan  is  plausible  and  consistent  with  the 
European Commission’s 2021 spring forecast. The scenario embedded in the Plan foresees a 
rebound  of  economic  growth  in  2021  following  the  COVID-19  induced  contraction  in  20203. 
Real  GDP  is  set  to  increase  by  4.6%  in  2021.  According  to  the  recovery  and  resilience  plan’s 
scenario, growth will remain robust reaching 4.4% in 2022 before easing somewhat to 3.3% in 
2023.  Real  GDP  growth  is  expected  to  be  driven  by  a  recovery  in  private  consumption, 
investment  and  a  continued  positive  contribution  from  net  trade.  Inflation  is  set  to  remain 
contained  below  2%  until  2024.  The  European  Commission  2021  spring  forecast  foresees  real 
GDP  in  Slovenia  to  grow  at  4.9%  and  5.1%  in  2021  and  2022,  respectively.  Similar  to  the 
Slovenian  authorities,  the  Commission  considers  domestic  demand  as  the  main  growth  engine 
behind  the  recovery.  The  Commission  expects  a  weaker  rebound  of  investment  in  2021  but  a 
catching  up  by  2022.  For  net  exports,  both  the  Commission  and  the  Slovenian  authorities 
forecast  a  positive  contribution  to  growth  in  2021  and  2022.  Labour  market  projections  and 
inflation  projections  are  also  very  similar.  For  the  general  government  deficit  and  debt,  the 
Commission  forecasts  more  favourable  developments  in  line  with  a  slightly  more  positive 
macroeconomic scenario. There are, however, significant risks that some crisis-related spending 
turns  out  to  be  permanent  or  revenues  fall  short  of  the  forecast,  risking  a  deterioration  of  the 
fiscal  outlook  in  2022  and  fiscal  sustainability  in  the  longer  term.  The  period  beyond  2022  is 
currently  not  covered  by  the  Commission  forecast.  The  macroeconomic  and  fiscal  outlook 
continue to be affected by high uncertainty related to the COVID-19 pandemic and its economic 
consequences.   

Table 1: Comparison of macroeconomic developments and forecasts 

Real GDP (% change) 
Employment (% change) 
Unemployment rate (%) 
HICP inflation (% change) 
General government balance (% 
of GDP) 
Gross debt ratio (% of GDP) 

2019 

2020 

2021 

2022 

2023  2024  2025  2026 

COM  COM  RRP  COM  RRP  COM  RRP  RRP  RRP  RRP  RRP 

3.2 
2.5  
4.5 
1.7 
0.4  

 -5.5 
 -1.0 
 5.0 
 -0.3 
-8.4  

 -5.5 
 -1.0 
 5.0 
 -0.3 
 -8.4 

 4.9 
 0.9 
 5.0 
 0.8 
-8.5 

4.6  
0.8  
5.0  
0.8  
-8.6 

 5.1 
 2.0 
 4.8 
 1.7 
-4.7 

4.4  
1.5   1.5 
4.8 
4.5 
1.2   1.7 
-5.7 

 2.5  2.5  
 3.3  3.0  
0.8 
0.9 
1.2 
3.9 
4.0 
4.2 
1.9 
2.0 
2.1 
n.a 
 -3.8  -2.8   n.a  

65.6  

 80.8  

 80.8 

 79.0 

 80.4 

 76.7 

 79.0   78.0 

 n.a 

n.a 

 79.
6 

Source:  Commission  Spring  Forecast  2021  (COM);  Recovery  and  resilience  plan  (RRP), 
Stability Programme 2021 

3  Forecasts  of  the  Institute  of  Macroeconomic  Analysis  and  Development,  Slovenia’s  independent  forecast 
institution, that forms the basis for the 2021 Stability Programme. 

7 

 
 
  
  
  
  
  
 
                                                           
2.2. Challenges  related  to  sustainable  growth,  cohesion,  resilience  and  policies  for  the 

next generation  

Smart, sustainable and inclusive growth 

Low  investment  rates  weigh  on  Slovenia’s  economic  potential  and  productivity  growth. 
Before  the  COVID-19  crisis,  labour  productivity  growth  was  resuming  after  a  period  of  rather 
limited  convergence  to  the  EU  average.  This  was  driven  largely  by  efficiency  gains,  as  past 
structural  reforms  started  to  pay  off.  However,  investment  remained  below  historical  and  EU 
averages,  chocking  off  a  more  rapid  catching  up:  in  2019 investment  was  almost  3  percentage 
points  below  the  EU  average  (19.6%  compared  to  22.5%).  During  the  crisis  in  2020,  total 
investment declined by 4.1%, less than the fall in GDP (5.5%). However, the fall in equipment 
investment was more significant at 11.1%.  

Access to finance, especially for many SMEs, remains a challenge. Thanks to public support 
measures  since  the  outbreak  of  the  COVID-19  liquidity  and  financing  continued  to  support 
private sector firms. However, financing is still heavily skewed towards loans and dependent on 
banks. To make the financial market more resilient and to provide both investors and companies 
seeking  finance  with  better  access  to  equity,  the  equity  market  should  play  a  greater  role  in 
Slovenia. This is especially the case as an important share of job creation is attributed to start-ups 
and young firms, in line with the EU average.  

The  regulatory  burden  in  Slovenia  has  been  gradually  decreasing  but  remains  relatively 
high in some areas. Between 2010 and 2019, Slovenia’s position in the World Bank’s ease-of-
doing-business index ranking (World Bank, 2020) improved from 53rd to 37th place. Slovenia has 
been implementing measures to  enhance professionalization and strengthen remedy procedures 
in  public  procurement.  However,  the  level  of  competition  in  public  procurement  still  remains 
unsatisfactory.  

The  research  and  innovation  potential  of  the  economy  is  hampered  by  rather  low  public 
and  private  investment.  Overall,  R&D  intensity  has  declined  between  2010-2019,  whilst  the 
country’s scientific and technological performance remains modest. The translation of research 
results into innovation remains hampered by the low level of academia-business cooperation and 
low research and development digital capacities among firms, notably domestic SMEs. Between 
2012 and 2019, Slovenia witnessed the greatest decline in the EU in its innovation performance 
(9.9%-point),  in  sharp  contrast  to  the  EU  performance  change,  which  improved  by  8.9%-point 
during the same period.4 The market capitalisation of Slovenia’s national stock exchange is low 
and equity and venture capital markets are still not sufficiently developed. This may stifle market 
entry and growth of innovative and high potential firms. 

4 European Innovation Scoreboard 2020 

8 

 
 
                                                           
Social and territorial cohesion 

Slovenia performs well on social indicators, with the notable exception of the low activity 
and  employment  rates  of  older  workers.  Before  the  COVID-19  crisis,  unemployment  was 
contained to  an  all-time low (4.5%), the  activity  rate was improving,  while the risk of poverty 
and  social  exclusion  were  decreasing  from  over  14%  in  2013  to  12%  in  2019.  However,  the 
inactivity  rate  of  55-64  year  olds  remained  significantly  above  the  EU  average  as  was  their 
unemployment rate, particularly the long-term unemployment rate. 

The  COVID-19  crisis  has  negatively  affected  the  social  cohesion  in  Slovenia.  The  labour 
market  participation  has  deteriorated  significantly  for  some  groups,  in  particular  among  young 
people,  as  well  as  women.  Youth  unemployment  (8.1%  in  2019)  reached  14.2%  in  2020.  The 
number  of  young  people  with  lower  education  (primary  or  lower)  who  in  2020  registered  at 
Public Employment Service increased by 34.7% compared to the previous year. Unemployment 
among women increased from 4.9% in 2019 to 5.5% in 2020. 

Regional  and  sub-regional  disparities  in  Slovenia  persist  and  despite  the  accelerated 
economic growth after 2014, they had remained broadly stable until 2019. Eastern Slovenia 
lags behind Western Slovenia (which includes the capital) in GDP per capita (71% and 103% of 
the  EU  average  in  2017  respectively).  The  disparities  are  pronounced  at  sub-regional  (local) 
level.  In  particular,  the  role  of  the  capital  sub-region  around  Ljubljana  in  the  economy  is 
predominant:  its  GDP  per  capita  in  2017  (120%  of  the  EU  average)  was  almost  three  times 
higher than in Slovenia’s poorest region (Zasavska, 45% of the EU average).  

Health, economic and social/institutional resilience 

Slovenia’s  pension  system  faces  both  sustainability  and  adequacy  challenges.  Pension 
expenditure  is  expected  to  increase  from  10.0%  in  2016  to  16.0%  of  GDP  in  2070,  which 
represents the second highest increase in the EU. If unchecked, this increase will exert significant 
pressure on public finances in  the long term  and a burden for  younger  generations. The use of 
long-term  unemployment  and  long-term  sick-leave  schemes  as  bridges  to  early  retirement  put 
further  pressure  on  the  system.  At  the  same  time,  the  Slovenian  pension  system  produces 
relatively low aggregate replacement ratios and low median relative incomes of people aged 65+. 
The incomplete or short working  careers of  a large part of the  current  working-age population 
may imply that their pensions may not be able to ensure an income above the poverty line after 
retirement.   

Significant structural weaknesses remain in the health sector. The COVID-19 pandemic has 
exposed the structural weaknesses of the healthcare system revealing limited resilience in terms 
of  resources,  staff  and  ability  to  respond  to  the  sudden  increases  of  specific  care  demand.  The 
level  of  unmet  needs  and  long  waiting  times  are  long-standing  issues,  which  have  been 
aggravated with the temporary restrictions imposed during the current COVID-19 crisis. This is 
linked to  the reduced availability and increased  workload of primary-healthcare staff. The  first 
wave  of  the  COVID-19  pandemic  (April-May  2020)  has  forced  healthcare  services  to 

9 

 
 
immediately  put  on  hold  routine  preventive  care,  outpatient  visits,  dental  services  etc.5  The 
following waves of the COVID-19 pandemic forced the Ministry of Health to put again on hold 
all non-essential outpatient medical check-ups and planned surgery. Overall, there are shortages 
in the health workforce, especially family doctors (GPs), but also high turn-over rates in nursing, 
which hinder access to health services. Public spending for health remains below the EU average 
and the financing of the health system is strongly cyclical. In the long run, it will be difficult to 
cover the increasing health costs with the decreasing active and rapidly ageing population having 
a  growing  disease  burden  of  chronic  conditions.  Important  investments  are  needed  to:  i) 
modernise  equipment  and  upgrade  obsolete  medical  infrastructure  in  pace  with  sector 
development and hospital facilities and ii) ensure a better deployment, use and financial coverage 
of e-Health tools (telemedicine), an important factor enabling the health system to work in times 
of pressure.  

The long-term care system lacks a coherent regulatory framework. Regulation of the system 
for  various  groups  of  recipients  and  for  various  long-term  care  benefits  is  scattered  across 
different legislative acts  and several social care providers are involved in  this policy field. The 
COVID-19 pandemic exposed deep-rooted problems in the long-term care system, including in 
particular  in  terms  of  staffing  and  inadequate  facilities.  Significant  structural  efforts  and 
investment are necessary for setting up the system of quality long-term care services, including 
social  and  health  services,  and  infrastructural  upgrades.  New  care  models,  focussing  on 
prevention  and  integration  of  health  and  social  services  and  a  better  mix  between  institutional 
and community care for all age groups in line with the deinstitutionalisation principle, are crucial 
as the population is ageing and chronic conditions will be even more prevalent in the future.  

Policies for the next generation, children and youth, including education and skills 

The  education  system  is  performing  relatively  well  at  all  levels,  but  there  are  gaps  for 
certain  groups.  Slovenia’s  early-school-leaving  rate  of  4.6%  (2019)  is  significantly  below  the 
EU average (10.2%). Slovenian pupils perform well in terms of basic skills, but there are large 
gaps in  reading skills  between  genders and between native-born pupils and those with  migrant 
background.  The  educational  achievement  differs  based  on  socio-economic  background. 
Participation in  early childhood  education and care is  growing and close  to  EU average, but  is 
low  among  children  from  migrant  and  low  socioeconomic  backgrounds.  The  percentage  of 
people  aged  30-34  with  tertiary  qualifications  in  2019  was  44.9%,  above  the  EU  average  of 
40.3%, but with the second largest gender gap in the EU (women 57.1%; men 34.5%). 

5 https://analysis.covid19healthsystem.org/index.php/2020/05/06/how-are-countries-reorganizing-non-covid-19-
health-care-service-delivery/  

10 

 
 
                                                           
The response of the education system to the COVID-19 pandemic was quick, however the 
crisis  demonstrated  the  importance  of  stepping  up  the  readiness  for  on-line  learning  and 
addressing  the  digital  divides.  This  requires  adequate  digital  infrastructure  and  education 
materials,  teachers  with  the  necessary  skills  and  additional  support  for  students  in  rural  areas, 
with  low  socio-economic  background,  with  migrant  background,  or  with  disabilities.  Slovene 
schools are better equipped digitally than the EU average, but the connectivity in remote areas 
and  access  to  devices  have  presented  a  challenge.  The  crisis  showed  that  the  teachers’  digital 
competences  need  significant  improvement  to  be  able  to  fully  exploit  digital  technologies  for 
teaching.  Moreover,  learning  of  digital  skills  should  become  much  more  integrated  in  the 
curricula throughout  the  education system.  There is  a risk that the crisis  may  affect  vulnerable 
learners  most,  especially  those  from  lower  socio-economic  backgrounds,  those  with  special 
educational  needs  and  those  in  rural  or  remote  areas.  This  might  lead  to  an  increasing  digital 
divide.  

Knowledge  and  skills  of  both  the  employed  and  job  seekers  are  insufficiently  adjusted  to 
the current and future needs of the economy. This is a result of slowly adapting educational 
programmes as well as a lack of an appropriate system for forecasting future skill needs and a 
consequentially slow adaptation of the skills of workers. By autumn 2020, one third of the young 
unemployed had completed secondary school and a little less than a third had completed primary 
school  or  less.  In  order  to  improve  employment  opportunities,  the  Employment  Service 
implements  various  active  employment  policy  programs.  However,  in  the  first  ten  months  of 
2020,  5 551  young  people  were  included  in  active  labour  market  policies  (ALMP)  programs, 
9.8% less than in the same period in 2019. 

2.3. Challenges related to the green and digital transition  

Green dimension  

The recovery and resilience plan should contribute to the green transition and at least 37% 
of the financial allocation needs to contribute to climate objectives. The measures in the plan 
shall  contribute  to  achieving  the  2050  climate  neutrality  objective,  and  the  2030  energy  and 
climate  targets,  taking  into  account  Member  States’  national  energy  and  climate  plans.  They 
should  also  contribute  to  meeting  environmental  targets  for  waste,  water,  pollution  control, 
sustainable  mobility,  biodiversity  protection  and  restoration,  marine  and  water  resources,  and 
support the transition to sustainable food systems as well as to a circular economy as appropriate, 
while ensuring that nobody is left behind.  

Climate and energy policies 

11 

 
 
Slovenia’s  economy  is  carbon  intensive  and  the  pace  of  emission  reduction  is  slow. 
Greenhouse gas emissions intensity of energy consumption remains above the EU average (with 
an indicator of 89.8 in 2019 compared to 82.8 at EU level) and its rate of reduction since 1990 is 
below  the  EU  average6.  The  gap  in  greenhouse  gas  emissions  productivity  has  narrowed  in 
recent years. However, this has been mainly due to one-off and external factors (e.g. closure of a 
thermal power plant and reduced heating in milder winters). This means that the country might 
fall behind its own 2030 development strategy goals7.  

The  Europe  2020  target  for  renewables  will  most  likely  not  be  reached  with  current 
policies.  The  latest  assessment  of  progress  towards  the  2020  renewable  targets  showed  that 
Slovenia  is  falling  behind  the  planned  progress  for  2017-2018  and  2019  data8  confirms  this 
trend. In addition, the national contribution to the EU 2030 renewable energy target specified in 
Slovenia’s National Energy and Climate Plan (NECP) is unambitious (27% of gross final energy 
consumption  by  2030),  as  it  implies  only  a  2  percentage  points  increase  in  comparison  to  the 
2020  goals  while  further  energy  efficiency  measures  kick  in.  The  Slovenian  NECP  describes 
difficulties  in  increasing  its  share  of  renewable  energy  power  generation  because  of 
environmental considerations – almost 40% of its territory is designated under Natura 2000 – and 
the  opposition  of  local  communities  and  environmental  organisations  to  certain  projects.  The 
Commission assessment of the Slovenian NECP recommended removing administrative barriers 
and  improving  the  regulatory  framework.  The  existing  energy  storage  is  underdeveloped  and 
insufficient to address the needs of local renewables production.  

Slovenia’s economy is more energy intensive than the EU average. Primary energy intensity 
Energy consumption  of Slovenia is above the EU average (144 toe/MEuro2015 compared to 102 
toe/MEuro2015 in 20199) and was increasing before COVID-19, putting the achievement of the 
EU 2020 energy efficiency target at the deadline under pressure10.  

The  high  dependency  on  road  transport  and  cars  and  the  low  use  of  public  transport 
contribute  greatly  to  Slovenia’s  carbon  emissions.  Transport  emissions  are  responsible  for 
42.7% of the total Slovenian CO2 emissions, which is well above the EU average (32.6%)11, and 

6  See  for  example,  Tsemekidi-Tzeiranak,  S.,  Bertoldi,  P.,  Paci,  D.,  Castellazzi,  L.,  Ribeiro  Serrenho,  T., 
Economidou,  M.  and  Zangheri,  P.,  Energy  Consumption  and  Energy  Efficiency  trends  in  the  EU-28,  2000-2018, 
EUR  30328  EN,  Publications  Office  of  the  European  Union,  Luxembourg,  2020,  ISBN  978-92-76-21074-0, 
doi:10.2760/847849, JRC120681. 
7 See for example, Tsemekidi-Tzeiranaki, S., Paci, D., Cuniberti, B., Economidou, M. and Bertoldi, P., Analysis of 
the  Annual  Reports  2020  under  the  Energy  Efficiency  Directive,  EUR  30517  EN,  Publications  Office  of  the 
European Union, Luxembourg, 2020, ISBN 978-92-76-27416-2, doi:10.2760/180952, JRC122742. 
8 22% of gross final energy consumption  
9 Calculated as primary energy consumption 2020-2030 divided to GDP in fix 2015 prices 
10 See for example, Tsemekidi-Tzeiranaki, S., Paci, D., Cuniberti, B., Economidou, M. and Bertoldi, P., Analysis of 
the  Annual  Reports  2020  under  the  Energy  Efficiency  Directive,  EUR  30517  EN,  Publications  Office  of  the 
European Union, Luxembourg, 2020, ISBN 978-92-76-27416-2, doi:10.2760/180952, JRC122742. 
11 Statistical Pocketbook, EU Transport in Figures 

12 

 
 
                                                           
they continue to rise in  absolute terms. Sustainable transport connections, in particular rail, are 
not  sufficiently  developed  to  fully  support  a  carbon-friendly  modal  shift  or  the  economic 
development of less‑ developed regions. The use of public transport is very low by international 
standards.  The  public  transport  options  are  outdated  and  limited,  including  on  intermodal 
connections. Public transport was also severely affected during the COVID-19 pandemic; the use 
of  public  transport  services  fell  by  65%  per  passenger-kilometre  and  faced  a  75%  fall  in 
passenger numbers. 

The  country  is  exposed  to  climate  change-related  damages.  Major  changes  in  climate 
variables  are  being  witnessed,  which  are  above  average  in  Slovenia.  The  increase  in  air 
temperature is most pronounced, changes in rainfall are significant and extreme weather events 
are higher.  A significant share of the population lives in areas exposed to floods, which is one of 
the  costliest  natural  disasters  in  Europe.  Slovenia  identified  a  significant  number  of  areas 
exposed to the risk of floods, with a high risk of damage to health, economy and environment. In 
mountain regions, the risk of avalanches is increasing. Precipitation will take the form of strong 
rainfall and winter precipitation is expected to increase strongly. With a small amount of snow, 
the  risk  of  large-scale  flooding  will  increase  significantly  in  winter.  Drought  periods  will  be 
extended in  summer and short-term  rainfalls  will increase. The  climate change scenarios up to 
2050 show that Slovenia’s air temperature will continue to rise. Slovenia will experience more 
frequent droughts and the length and intensity of heat waves will increase.   

Air quality in Slovenia continues to be a cause for concern. As energy  production and heat 
generation  from  solid  fuels  are  among  the  main  contributing  factors  to  air  pollution,  it  is 
important to further diminish emissions in these areas and to increase efficient and clean district 
heating. 

Performance on circular economy is mixed. Slovenia has a sound waste management system 
overall, with advanced rates of separate collection and a high recycling rate. At the same time, 
Slovenia’s low material productivity and high-energy intensity are improving but still below the 
EU average.  

The quality of water has improved, but Slovenia  faces difficulties with urban wastewater 
and  water  losses  in  distribution  networks.  Supported  by  EU  funds,  Slovenia  has  invested 
significantly in wastewater treatment, as well as in drinking water systems. However, it still does 
not comply with the Urban Waste Water Directive and water supply losses (29%) remain above 
the EU average (23%)12. Such leakages are a waste of surface and ground water, and they result 
in  higher  energy  use  for  water  treatment  and  distribution  purposes.  They  also  bring  increased 
risks of water contamination.  

12 SWD(2017) 449 final - Commission Staff Working Document Impact Assessment Accompanying the document 
Proposal for a Directive of the European Parliament and of the Council on the quality of water intended for human 
consumption (recast) - Brussels, 1.2.2018. 

13 

 
 
                                                           
Slovenia makes no use of green budgeting practices. While the overall level of environmental 
taxation is above the EU average, there may also be scope to improve its use to better support the 
policy objectives and to ensure a just transition.  

The  table  below  gives  an  overview  of  Slovenia’s  objectives,  targets  and  contributions  under 
Regulation (EU) 2018/1999 of the European Parliament and of the Council of 11 December 2018 
on the Governance of the Energy Union and Climate Action. 

Table 2: Slovenia’s objectives, targets and contributions under the Governance Regulation 

National targets and contributions  

Binding target for greenhouse gas 
emissions compared to 2005 under the 
Effort Sharing Regulation (%) 

National target/contribution for 
renewable energy: Share of energy from 
renewable sources in gross final 
consumption of 
energy (%) 

2020 

2030 

Assessment of 2030 
ambition level 

Latest 
available 
data 

-7% / -9% 
(2019) 

4% 

-15% 

More 
ambitious 
national target 
of -20% 

Unambitious  
(37% is the  
result of RES  
formula) 

21.1% in  
2018 

25% 

27% 

National contribution for energy efficiency: 

Primary energy consumption (Mtoe) 

Final energy consumption (Mtoe) 

6.81 / 6.52 
(2019) 
4.975 / 4.8 
(2019) 

Level of electricity interconnectivity (%) 

83.6% 

7.1 

5.1 

6.4 

4.7 

No 
specific 
target 

No 
specific 
Target 

Modest 

Low 

N.A. 

Source: Assessment of the final national energy and climate plan of Slovenia, SWD (2020) 923 
final, with indicated updates for 2019 data. 

Digital dimension  

The  recovery  and  resilience  plan  should  contribute  to  the  digital  transition  and  at  least 
20% of the financial allocation needs to contribute to digital objectives. The measures in the 
plan should, inter alia, contribute to the digital transformation of the economic and social sectors 
(including  public  administration,  public  services,  and  the  justice  and  health  systems).  The 
objective of the measures in the plan should be to improve not only the competitiveness, but also 
the  resilience,  agility  and  security  of  companies  and  public  actors,  all  while  ensuring 
inclusiveness. 

14 

 
 
 
 
 
 
 
 
 
 
 
The  adoption  of  digital  technologies  is  generally  well  advanced,  but  some  sectors  are 
lagging  behind.  Slovenia  ranks  16th  among  EU  Member  States  in  the  2020  European 
Commission  Digital  Economy  and  Society  index  (DESI)13.  In  particular,  Slovenia  needs  to 
improve  the  up-take  of  the  100  Mbps  fixed  broadband,  while  addressing  the  remaining  urban-
rural  divides,  and  mobile  broadband.  In  addition,  the  deployment  of  5G,  including  swift 
assignment of spectrum, remains a challenge. The Slovenian market would benefit from greater 
collaboration  between  all  public  stakeholders  and  the  industry,  especially  in  establishing  the 
appropriate regulatory environment necessary to boost private investment and competition, and 
in adopting the radio spectrum management strategy. 

There is growing awareness on the need to integrate digital technology in business models. 
Some 75% of Slovenian firms have implemented - either fully or partially - at least one digital 
technology.  This  is  more  than  the  EU  average  of  58%  (EIB,  2019)14.  At  the  same  time,  the 
degree  of  integration  varies  considerably  across  different  sectors  of  the  economy.  There  is  a 
higher  degree  of  digitalisation  in  services  than  in  manufacturing.  The  digital  transformation  is 
strong  in  the  e-commerce,  tourism,  automotive  sector,  innovation  of  composite  materials  and 
companies integrated into foreign value chains. Furthermore, some niche areas such as robotics, 
fin-tech, cyber security and artificial intelligence, are very well developed.   

Slovenia  ranks  in  the  middle  of  EU  countries  for  digital  public  services  in  DESI  2020.  A 
wide range of basic online services for businesses is available in Slovenia (78% of such services 
are online, compared to 84% at EU level according to eGovernment Benchmark15). The country 
performs well in the open data indicator for which it ranks 10th (DESI, 2020). Yet, only 59% of 
Slovenian internet users actively engage with e-government services compared to an EU average 
of  67%,  according  to  DESI  2020.  A  wide  range  of  basic  online  services  for  businesses  is 
available  in  Slovenia.  Nevertheless,  the  use  of  these  services  by  businesses  is  lower  than  on 
average  in  the  EU.  According  to  the  latest  eGovernment  Benchmark  Report16  Slovenia  is 
characterised  by  a  medium-low  level  of  penetration  and  average  level  of  digitalisation. 
Therefore,  Slovenia  is  part  of  the  expandable  eGovernment  scenario,  where  the  innovation 
process  has  been  carried  out  efficiently,  but  there  is  the  desirability  to  expand  the  number  of 
online  users,  to  maximise  all  potential  advantages.  Citizens  and  companies  have  unique 
identification numbers that are used for identification, but these are not electronic identification 
means. At present, most of the e-services rely on qualified digital certificates issued by public or 

13 https://ec.europa.eu/newsroom/dae/document.cfm?doc_id=66929 
DESI  is  the  main  analytical  tool  of  the  European  Semester  on  digital.  DESI  provides  the  baseline  on  the  level  of 
digitisation of Member States and identifies the main challenges that will need to be addressed. 
14 https://ec.europa.eu/newsroom/dae/document.cfm?doc_id=66929 
15 https://digital-strategy.ec.europa.eu/en/library/egovernment-benchmark-2020-egovernment-works-people  
16 https://digital-strategy.ec.europa.eu/en/library/egovernment-benchmark-2020-egovernment-works-people  

15 

 
 
                                                           
private sector used for authentication and e-signature. Slovenia performs below the EU median 
on  the  availability  of  user  centric  e-government  services  and  the  availability  of  digital  public 
services for foreign businesses. 

Lower  than  expected  up-take  of  digital  public  services  might  be  linked  to  trust,  security 
and low interoperability issues.  A common national electronic identifier is missing, access to 
several open databases and services is not secure and user friendly. Slovenia needs to accelerate 
the introduction and rollout of secure, unique and user-friendly solutions such as e-identifiers or 
e-signatures, which are expected to boost the reception of digital public services, increase trust in 
online  transactions  and  ensure  mobile  and  cross-border  access  to  public  services.  It  is  also 
necessary to increase interoperability across big systems (tax authority, land cadastre, company 
register,  etc.)  which  all  are  designed  as  closed  systems,  operating  with  access  codes  different 
from the general digital public services platform e-VEM.  

Basic  digital  skill  levels  are  slightly  below  the  EU  average  and  the  digital  divide  is 
significant.  According  to  DESI  2020,  55%  of  people  aged  16  to  74  years  have  at  least  basic 
digital skills (56% in the EU as a whole). A major source of concern is the low level of inclusion 
of  digital  skills  in  the  curricula  of  primary  and  secondary  schools  and  lack  of  obligatory  ICT 
training  for  teachers.  Improving  digital  skills  would  allow  a  broader  use  of  teleworking  and 
digital  services,  a  better  match  of  digital  skills  with  the  requirements  of  the  labour  market,  as 
well  as  inclusion  of  vulnerable  groups  such  as  elderly  or  people  living  in  rural  areas. 
Marginalized  and  disadvantaged  groups  in  rural  areas  (e.g.  Roma),  older  low  skilled 
unemployed,  citizens  at  risk  of  poverty,  persons  with  foreign  background  and  elderly  are  not 
sufficiently included in the digital economy and society.  

The Slovenian telecoms market is overall competitive, with a strong presence of the state. 
There are four operators in a market of two million inhabitants. The Republic of Slovenia owns 
directly 62.54% share of Telekom Slovenije Group to which the incumbent Telekom Slovenije 
belongs to. Adding indirect control through state owned funds (SDH and Kapitalski sklad), the 
control  stake  increases  to  72.38%.  In  2019,  Telekom  Slovenije’s  market  shares  were:  31%  in 
fixed broadband access (-2.0 percentage points compared to 2018), 34.8% in Voice over Internet 
Protocol  (VoIP)  telephony  -  retail  (-1.3  percentage  points),  37.1%  in  IP  TV  (-3.2  percentage 
points)  and  39.9%  in  the  mobile  telephony  retail  market  (-2.7  percentage  points).  Telekom 
Slovenije  continued  to  slowly  lose  market  shares  over  the  last  two  years.  Since  then,  the 
multiband auction took place in April 2021 and frequencies were acquired by A1 Slovenije, T-2, 

16 

 
 
Telekom Slovenije and Telemach. Radio frequency bands 700 MHz FDD, 700 MHz SDL, 1500 
MHz SDL, 3600 MHz and 26 GHz will be available after issuing the licences by mid-202117.  

Graph 1: Relative performance of Slovenia compared to EU average for the five DESI 2020 
dimensions 

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DESI 2020 -  relative performance by dimension 

DESI

1 Connectivity

2 Human
capital

3 Use of
internet
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4 Integration
of digital
technology

5 Digital public
services

Slovenia

EU

Slovenia’s ranking in the Digital Economy and Society Index 2020. https://ec.europa.eu/digital-single-
market/en/scoreboard/slovenia18  

Note: EU aggregate corresponds to EU28, based on 2020 DESI report. 

17 Frequencies in the 2100 MHz band will be available from 22 September 2021 and those in the 2300 MHz band - 
from 1 January 2022. 
18 Note: EU aggregate corresponds to EU28, based on 2020 DESI report 

17 

 
 
 
 
                                                           
 
 
 
 
 
 
 
 
 
 
Box 1: Progress towards the Sustainable Development Goals 

The  objectives  of  the  Sustainable  Development  Goals  are  integrated  in  the  European  Semester 
since the 2020 cycle. This provides a strong commitment towards sustainability in coordination 
of economic and employment policies in the EU. In that respect, this section outlines Slovenia’s 
performance  with  respect  to  SDGs  with  particular  relevance  for  the  four  dimensions 
underpinning the 2021 Annual Sustainable Growth Strategy and of relevance to the recovery and 
transition  and  productivity,  and 
fairness,  digital 
resilience  plans 
macroeconomic stability), indicating possible areas where investments and reforms in line with 
the objectives of the Facility could further accelerate the progress on the SDGs. 

transition, 

(green 

18 

 
 
 
Green Transition 

The performance on SDGs related to the green transition is mixed. On climate action (SDG 13), 
Slovenia is well above the EU average on greenhouse gas emissions in 2018, with an index of 
94.4  vs  79.3  for  the  EU.  The  share  of  renewable  energy  in  gross  final  consumption  (22%  in 
2019)  is  above  the  EU  average  (19.7%  in  2019)  but  below  the  objectives  (25%  by  2020).  On 
circular economy (SDG 12) Slovenia is making progress with an increase in the circular material 
use  rate  (from  8.4%  in  2014  to  10.4%  in  2019),  which  is  however  still  below  the  EU  average 
(11.9%  in  2019).  Similarly,  the  air  emission  intensity  from  industry  is  improving  (from  0.16 
grams  per  euro  in  2013  to  0.14  in  2018)  but  is  still  above  EU  average  (0.08  in  2018).  On 
biodiversity (SDG 15), Slovenia is the Member State with the highest percentage of Natura 2000 
areas in 2019 (38%).  

Fairness 

Slovenia  performs  well  on  most  SDG  indicators  related  to  fairness.  On  risk  of  poverty,  social 
exclusion or material deprivation (SDG 1) Slovenia is following a downward trend and performs 
better  than  the  EU  average  except  on  the  indicators  concerning  the  percentage  of  population 
living in  households with  poor housing conditions  (20.6% vs. 12.7% at  the EU level  in  2019). 
The performance is mixed on good health and well-being (SDG 3) where Slovenia is progressing 
on some indicators (healthy years at birth; perceived good health status; number of deaths due to 
accident  at  work  or  car  accidents).  However  some  indicators  like  smoking,  obesity  rate  and 
exposure to air pollution are still above the EU average. Moreover, the access to medical care has 
considerably deteriorated, as self-reported  unmet  need for medical  care increased in  the period 
2014-2019 from 0.2% to 2.9%. On quality education (SDG 4) Slovenia outperforms on basic and 
tertiary education. However, there is still a gap in education outcomes between men and women 
and  a  significant  one  between  native  and  foreign  born  pupils.  Slovenia  lags  behind  the  EU 
average on the participation of adults in adult learning– this indicator was at 11.9% in 2015 and 
has  fallen  to  8.4%  in  2020.  On  gender  equality  (SDG  5)  Slovenia  is  performing  much  better 
compared to the EU average on the gender employment gap, pay gap and gender gap in inactive 
population due to caring responsibilities. It is however not catching up with the trends at the EU 
level on gender equality in leadership positions. On inequalities within the country (SDG 10) the 
risk of poverty or social exclusion between urban and rural areas has increased which is contrary 
to the trends at the EU level. 

Digital transition and productivity 

As  regards  Industry,  innovation,  and  infrastructure  (SDG  9),  Slovenia  performs  below  the  EU 
average on the gross domestic expenditures on R&D ranking, with 2.04% in 2019 compared to 
the EU average of 2.20%. The expenditure share was falling between 2013 and 2017 but turned 
upwards again in 2018. Share of research personnel in Slovenia is higher than in EU in general, 
so  the  potential  to  use  more  research  resources  appears  to  be  available.  The  scientific  and 
technological  performance  of  the  country  (measured  by  the  10%  top-cited  publications)  and 
academia-business  cooperation  (measured  by  public-private  scientific  publications)  remains 
modest (ranked 17th in the EU in 2017 and 16th in 2019). The country is lagging behind in patent 

19 

 
 
applications,  with  only  79  per  million  inhabitants  sent  to  the  European  Patent  Office  in  2020, 
compared  to  an  average  of  147  at  EU  level.  On  digital  skills  (SDG  4),  in  2019  Slovenia 
performed slightly below the EU average in terms of adults with at least basic digital skills.  

Macroeconomic stability 

On decent work and economic growth (SDG 8), Slovenia still faces challenges. While the GDP 
per capita has increased rapidly since 2015, reaching 74% of EU average by 2020, the gap with 
the EU average has remained rather constant over the years. Investment share of GDP has been 
lower than the EU average since 2010. This indicator reached its low point in 2016 and has been 
improving since then, but in 2019 it was still almost 3 percentage points below the EU average 
(19.6% compared to 22.5%). On the more positive side, Slovenian labour market indicators are 
better than the EU average. Employment rate has been improving rapidly and reached 75.6% in 
2020, clearly above the EU average of 72.4%. The share of young people neither in employment 
nor in education and training has been consistently lower in Slovenia than the EU average. Also, 
the long-term unemployment rate and in-work poverty rate are low. Regarding the institutional 
framework  (SDG  16),  Slovenians  perceive  the  independence  of  the  justice  system  more 
negatively  than  EU  citizens  on  average.  Corruption  perception  index  shows  that  the  perceived 
corruption level is lower compared to countries in similar socioeconomic situation. 

3.  OBJECTIVES, STRUCTURE AND GOVERNANCE OF THE PLAN 

3.1. Overall strategy of the plan  

The plan aims to support Slovenia’s socio-economic  recovery and long-term development 
following the standstill caused by the COVID-19 pandemic. It also aims to address the long-
standing challenges facing the economy identified in the Slovenian Development Strategy 2030, 
in particular the slow response to technological and demographic changes, and climate change. 
Such challenges are reflected in the structure of the plan and its four ‘development area’ clusters: 
green  transition;  digital  transition;  smart,  sustainable,  and  inclusive  growth;  and  health  and 
welfare. These four clusters consist of 16 components in total. 

The green transition cluster includes key reforms to unlock renewable energy potential and 
sustainable  mobility,  which  are  essential  steps  to  decarbonise  the  energy  and  transport 
sector  (e.g.  amendments  to  the  renewable  energy  sources  and  electricity  supply  acts,  new 
national  regulatory  framework  in  the  field  of  alternative  fuels  in  transport).  Investments  in 
renewables,  energy  efficiency  of  public  buildings,  environment,  upgrading  rail  infrastructures, 
deployment of recharging and refuelling infrastructure for alternative fuels in road transport, and 
dedicated measures on the circular economy are also expected to enable the green transition in 
key sectors of the economy. With more than 40% of the total allocated budget, this cluster is by 
far the biggest in terms of estimated costs. 

The digital transformation cluster covers a strategy for digital transformation and reforms 
on  electronic  identification  that  will  increase  use  of  public  e-services  and  digitalisation  of 

20 

 
 
 
companies.  These  are  accompanied  by  an  important  reform  to  boost  cybersecurity  across  all 
sectors.  Investments  in  connectivity and digital  skills  are expected to  reduce the digital  divide, 
and key public sector segments (e.g. justice and health) are also expected to be digitalised. The 
cluster comprises four multi-country projects (cloud, microelectronics, quantum communication 
and blockchain). In financial terms, this covers 13% of the total allocation but it is important to 
note that several additional digital investments are included in other clusters (e.g. digital skills in 
the component on education). 

The  smart,  sustainable  and  inclusive  growth  cluster  includes  important  reforms  of  the 
labour  market.  These  will  address  the  long-term  sustainability  and  adequacy  of  the  pension 
system notably by limiting early retirement and other forms of early exit from the labour market 
and introducing other reforms in the system. Importantly, it will also increase the employability 
of  low-skilled  and  older  workers  through  training  provision  and  more  targeted  active  labour 
market policies. Legislation on a short-time work scheme should allow the labour market to deal 
with  major shocks in times of crisis.  Mutually-reinforcing reforms  and investments  in  research 
and  innovation,  productivity  of  companies,  tourism  and  culture,  and  educational  infrastructure 
and  curricula  will  also  contribute  to  higher  productivity  and  advancing  the  twin  transition. 
Targeted  reforms  of  public  institutions  will  also  reduce  administrative  barriers  and  further 
improve  public  procurement.  This  is  the  second  biggest  cluster,  representing  some  30%  of  the 
plan’s financial allocation. 

Finally,  the  health  and  welfare  cluster  includes  long-awaited  flagship  reforms  of  the 
healthcare  and  long-term  care  system.  These  will  ensure  the  provision  of  high-quality 
services, including for both healthcare and social care, while ensuring fiscal sustainability. The 
long-term  care  act,  the  first  comprehensive  legislation  in  this  area  in  Slovenia,  has  been  under 
discussion for more than a decade. After the adoption by the Government on 17 June 2021, the 
long-term  act  entered  the  parliamentary  procedure.  Together  with  the  pension  reform  and 
healthcare  reform,  the  long-term  care  system  is  expected  to  make  social  security  in  Slovenia 
much  more  effective,  accessible  and  sufficient  for  citizens’  needs.  Investments  in  related 
infrastructure, skills, and in affordable housing are expected to also mitigate the social impact of 
the crisis on marginalised people. This cluster represents some 15% of the plan’s estimated costs. 

Table 3: Components and associated costs 

Component 

Green transition 
C1 K1: Renewable energy and energy efficiency 
C1 K2: Sustainable renovation of buildings 
C1 K3: A clean and safe environment  
C1 K4: Sustainable mobility 
C1 K5: Circular economy – resource efficiency 

Digital transformation 

C2 K1: Digital transformation of the economy 

21 

Costs  
(EUR million) 
1064.75 
146.00 
86.05 
472.80 
311.90 
48.00 
316.67 

56.50 

 
 
Component 

C2 K2: Digital transformation of the public sector and public administration 
Smart, sustainable, and inclusive growth 

C3 K1: Research, development and innovation 
C3 K2: Raising productivity, a business-friendly environment for investors  
C3 K3: Labour market – measures to reduce the impact of negative structural 
trends  
C3 K4: Restructuring of Slovenian tourism and investment in infrastructure 
in the field of tourism and cultural heritage  
C3 K5: Strengthening competences, in particular digital competences and 
those required by the professions of the future and the green transition 
C3 K6: Efficient public institutions 

Health and welfare 

C4 K1: Health 
C4 K2: Social security and long-term care 
C4 K3: Housing 

Total: 

Costs  
(EUR million) 

260.17 
737.36 
132.22 
157.50 
56.28 

127.00 

264.36 

0.00 
363.90 
224.90 
79.00 
60.00 
2482.69 

3.2. Implementation aspects of the plan  

Slovenia’s  recovery  and  resilience  plan  is  consistent  with  other  European  and  national 
programmes. In particular, the plan is consistent with the National Energy and Climate Plan, by 
including  measures  to  support  green  transition  (e.g.  building  renovation  and  energy-efficient 
construction, deployment  of renewables, sustainable transport).  It also  aims  to  complement the 
Just  Transition  Plans  for  coal  regions  identified  as  eligible  under  the  Just  Transition  Fund, 
currently  under  discussion.  Similarly,  it  complements  the  implementation  of  the  Youth 
Guarantee with measures aimed at accelerating the entry of young people into the labour market 
and strengthening cooperation between the education system and the labour market. The plan is 
expected to also increase the productivity of the economy’s resilience against future shocks also 
in line with the 2020 new industrial strategy.19 The plan is consistent with the objectives of a key 
national  development  document  -  Slovenia’s  development  strategy  2030  -  which  relates  to  the 
implementation  of  the  UN  Sustainable  Development  Goals.  It  builds  on  and  complements  the 
Resolution  on  the  Slovenian  National  Health  Care  Plan  2015-2025  “Together  for  a  Health 
Society”. 

While a partnership agreement and operational programmes under the European Structural  and 
Investment Funds (ESIF) for the period 2021-2027 have not been yet finalised, the plan explains 
per  component  key  areas  of  demarcation  between  the  RRF  and  ESIF  and  how  their 
complementarity will be ensured.  

19 See European Commission, Updating the 2020 New Industrial Strategy, COM(2021) 350 final, 05.05.2021. 

22 

 
 
 
                                                           
Slovenia’s plan is consistent with the challenges and priorities identified in the most recent 
Draft  Council  Recommendation  on  economic  policy  in  the  euro  area20.  The  plan  provides 
both a short-term boost to the economy, through considerable investments, but also envisages a 
series reforms that will boost economic resilience and raise growth potential, including long-term 
care,  healthcare  and  pension  reforms.  The  reforms,  particularly  of  the  pension  system,  labour 
market,  and  health  and  long-term  care  systems,  will  also  contribute  towards  long  term  fiscal 
sustainability.  A  number  of  measures  included  in  the  plan  will  help  to  improve  the  business 
environment  and boost investment  and research,  development  and innovation (RDI) while also 
ensuring  the  digital  and  green  transitions.  These  include  reforms  and  investments  in  RDI  and 
education and training, an improved capital markets framework to attract equity investments, and 
new  acts  to  address  bureaucracy  and  improve  and  simplify  spatial  planning.  Reforms  to 
modernise public administration and increase the efficiency, and greening, of public procurement 
will contribute to a strengthening of the national institutional framework. 

In terms of administrative organisation, the government of Slovenia approved the recovery 
and resilience plan in the government session of 28 April 2021. The Government Office for 
Development  and  European  Cohesion  Policy  was  responsible  for  the  preparation  and 
coordination of the recovery and resilience plan and its submission to the European Commission. 
For the implementation of the plan, three offices of the Ministry of Finance - the Office for the 
Implementation  of  the  RRP,  the  Budget  Supervision  Office  and  the  Department  for  the 
Management of EU Funds - will perform the roles of the Coordinating Authority, National Audit 
Coordinator  and  National  Cost  Coordinator,  respectively.  Relevant  line  ministries  will  be 
involved  in  the  implementation  of  individual  components  of  the  plan.  Section  4.10  provides 
further information on the designation of entities and their respective responsibilities. 

The  plan  addresses  the  issues  of  gender  equality  and  equal  opportunities  for  all.  In 
particular,  the  plan  refers  to  relevant  national  legislation  (i.e.  Law  on  Equal  Opportunities  for 
Women  and  Men,  Protection  from  Discrimination  Act,  and  Law  on  Equal  Opportunities  for 
Persons  with  Disabilities),  the  EU  acquis  and  European  Pillar  of  Social  Rights,  and  relevant 
international  conventions  (e.g.  the  UN  Convention  on  the  Rights  of  Persons  with  Disabilities). 
Slovenia states  that respect  for these principles will be ensured at  all stages of preparation and 
implementation of the envisaged reforms and investments. The plan describes key challenges in 
the  area  of  gender  equality  and  supports  them  with  disaggregated  data  and  to  a  lesser  extent 
addresses the challenges of equality of all. 

Slovenia  carried  out  a stakeholder  consultation with  local  and  regional  authorities,  social 
partners, civil society organisations and other relevant stakeholders before the submission 
of  the  recovery  and  resilience  plan.  For  the  plan  implementation,  consultations  with  social 

20  Pending  final  adoption  by  the  Council,  after  endorsement  by  the  European  Council.  The  text  agreed  by  the 
Eurogroup  on  16  December  2020  is  available  at: https://data.consilium.europa.eu/doc/document/ST-14356-2020-
INIT/en/pdf 

23 

 
 
                                                           
partners  or  relevant  stakeholders  are  envisaged  for  key  reforms  (e.g.  pension  system,  health 
system, flexible forms of work, public sector pay system, renewable energy sources) before the 
adoption of the relevant legislation. 

The  Technical  Support  Instrument  (TSI)  provides  expertise  in  building  capacities  to 
implement the plan in a number of areas. Slovenia will, for example, receive technical support 
in  the  areas  of  pensions,  healthcare,  capital  markets,  renewable  energy  and  nature  protection 
needs,  and  transport.  The  Horizon  Europe  Policy  Support  Facility  will  be  available  during  the 
implementation  of  the  plan  to  provide  sectoral  support  for  the  design,  implementation  and 
evaluation of research and innovation policy reforms. 

Slovenia’s  plan  includes  four  multi-country  projects  in  the  digital  sector:  i)  European 
common data infrastructure and services;  ii)  Low-Power Processors and Semiconductor Chips; 
iii)  European  Blockchain  Service  Infrastructure;  and  iv)  European  quantum  communications 
infrastructure.  The  European  common  data  infrastructure  and  services  and  the  Low-Power 
Processors and Semiconductor Chips  projects  may take shape of planned important  projects  of 
common European interest (IPCEI). Slovenia aims to contribute to building a new generation of 
energy-saving infrastructure and services from edge to cloud, implementing cutting edge and fast 
expandable  industrial  and  service  applications,  and  increasing  the  cybersecurity  of  cloud 
infrastructure  and  services.  In  addition,  Slovenia’s  objectives  are  to  strengthen  planning 
capabilities and increase the innovativeness and resilience of semiconductor value chains in the 
EU  and  Slovenia,  to  extend  the  applicability  of  European  blockchain  service  infrastructure  by 
integrating  it  with  a  series  of  national  infrastructures,  and  to  establish  a  national  quantum 
communication  infrastructure  network  connected  to  the  national  networks  of  neighbouring 
countries.  Slovenia  has  engaged  in  close  cooperation  with  several  Member  States  who  have 
expressed their interest to participate in these projects. 

In accordance with Article 18(4)(g) of the RRF Regulation, Slovenia carried out a security 
self-assessment  for  investments  in  connectivity.  In  the  Digital  transformation  of  the  public 
sector  and  public  administration  component,  Slovenia  explains  that  where  digital  solutions  are 
based  on  the  use  of  new  generation  5G  networks,  the  5G  investments  will  be  subject  to  the 
legislation implementing the European Commission Communication of 29 January 2020 Secure 
5G deployment in the EU — Implementing the EU toolbox21. Throughout the plan, several other 
components  (i.e.  C1K1  “Renewable  energy  and  energy  efficiency”,  C2K1  “Digital 
transformation  of  the  economy”,  C3K5  “Strengthening  competences,  in  particular  digital 
competences and those required by the professions of the future and the green transition”, C4K1 
“Health”  and  C4K2  “Social  security  and  long-term  care”)  include  a  section  that  outlines  the 
contribution  of  the  measures  to  the  Union’s  open  strategic  autonomy  and  security  issues. 
Strategic measures mentioned in the security self-assessment would need to be closely monitored 
during the implementation of the plan. 

21 COM(2020) 50. 

24 

 
 
                                                           
The  plan  outlines  a  communication  strategy  to  raise  awareness  and  ensure  visibility  and 
recognition of the Recovery and Resilience Facility’s contribution to the economic recovery 
and  green  and  digital  transition  of  the  country  to  the  citizens.  The  strategy  focuses  on 
communicating both reforms and investments and identifies joint communication actions on the 
projects of strategic importance to be implemented together with the European Commission.  

In  the  communication  strategy,  the  Slovenian  authorities  plan  to  target  five  main  groups 
(general public, potential beneficiaries, relevant stakeholders by component, participants in 
project,  media).  General  communication  objectives  have  been  developed  for  all  target  groups 
that  will  be  appropriately  adapted  through  communication  messages  to  the  target  groups. 
Communication  will  take  place  at  two  levels:  (i)  the  content  by  development  area  and 
component; and (ii) targeted and proportionate to the size of the projects financed. It is envisaged 
to  use  different  communication  channels  and  actions.  Regionally  relevant  content  will  be 
communicated  through  the  regional  and  local  media.  The  overall  coordination  of  the 
communication strategy  and its implementation  will be ensured by  the coordinating body. The 
strategy stipulates regular monitoring of the communication impact. 

The scope of communication and promotion will be proportionate to the amount of funding 
allocated  and  to  the  strategic  importance  of  the  reform  or  project.  The  labelling  will  take 
into account the communication guidelines for European cohesion policy implemented under the 
Common  Provisions  Regulation  and  the  specific  RRF  guidance  issued  by  the  European 
Commission. In terms of communication, special attention will be given to projects of strategic 
importance, which will be selected in each of the plan’s four policy clusters. Communication on 
these  projects  envisages  development  of  national  communication  campaigns  and  active 
cooperation  with  the  European  Commission.  For  communication  and  dissemination  of 
information on the Slovenian recovery and resilience plan and its implementation, the authorities 
have  set-up  a  dedicated  sub-page  to  the  already  existing  national  key  landing  webpage  on  the 
European funds.   

State  aid  and  competition  rules  fully  apply  to  the  measures  funded  by  the  Recovery  and 
Resilience Facility. Union funds channelled through the authorities of Member States, like the 
RRF funds, become state resources and can constitute State aid if all the other criteria of Article 
107(1)  TFEU  are  met.  When  this  is  the  case  and  State  aid  is  present,  these  measures  must  be 
notified and approved by the Commission before Member States can grant the aid, unless those 
measures are covered by an existing aid  scheme or comply  with  the applicable conditions  of a 
block  exemption  regulation,  in  particular  the  General  Block  Exemption  Regulation  declaring 
certain categories of aid compatible with the internal market in application of Articles 107 and 
108 TFEU22. When State aid is present and it requires notification, it is the duty of the Member 
State to notify State aid measures to the Commission before granting them, in compliance with 
Article 108(3)  TFEU.  In  this  respect,  the  State  aid  analysis  carried  out  by  Slovenia  in  the 

22 Commission Regulation (EU) No 651/2014, OJ L 187, 26.6.2014, p. 1. 

25 

 
 
                                                           
recovery  and  resilience  plan  cannot  be  deemed  a  State  aid  notification.  In  as  far  as  Slovenia 
considers that a specific measure contained in the recovery and resilience plan entails de minimis 
aid  or  aid  exempted  from  the  notification  requirement,  it  is  the  responsibility  of  Slovenia  to 
ensure full compliance with the applicable rules. 

4.  SUMMARY OF THE ASSESSMENT OF THE PLAN 

4.1. Comprehensive  and  adequately  balanced  response  to  the  economic  and  social 

situation 

The  plan  follows  a  holistic  approach  to  ensure  economic  recovery  and  enhance  socio-
economic  resilience.  This  is  done  with  the  support  of  83  measures  (33  reforms  and  50 
investments). The plan helps to tackle key structural challenges and paves the way for the twin 
transition.  The  total  financial  allocation  of  the  recovery  and  resilience  plan  amounts  to 
EUR 2.5 billion, with EUR 1.8 billion requested in the form of non-repayable financial support 
and another EUR 0.7 billion in loans. 

The  plan’s  reforms  and  investments  have  many  interdependent  and  complementary 
objectives.  In  particular,  reforms  leverage  the  impact  of  associated  investments,  notably  by 
bringing structural change and increasing the participation of private operators. Overall, the plan 
is  balanced  and  focuses  on  Slovenia’s  main  challenges,  which  -  beside  the  twin  transition  - 
largely  refer  to  the  country’s  institutional  resilience,  effectiveness  and  sustainability  of 
healthcare, long-term care, pensions and education systems, and the need to boost the productive 
potential of the economy by investing in research and innovation and by improving the business 
environment.  

The components in the plan address all six pillars defined in the RRF regulation: (i) green 
transition;  (ii)  digital  transformation;  (iii)  smart,  sustainable  and  inclusive  growth,  including 
economic  cohesion,  jobs,  productivity,  competitiveness,  research,  development  and  innovation, 
and a well-functioning single market with strong SMEs; (iv) social and territorial cohesion; (v) 
health,  and  economic,  social  and  institutional  resilience,  with  the  aim  of,  inter  alia,  increasing 
crisis preparedness and crisis reaction capacity; and (vi) policies for the next generation, children 
and the youth, such as education and skills. The coverage of the plan’s components toward the 
six  pillars  is  summarised  in  Table  X  below.  All  pillars  are  covered  by  at  least  one  component 
while a component may contribute to several pillars. 

Table 4. Coverage of the Facility’s six pillars by the components of the Slovenian plan 

Green 
transition 

Digital 
transition 

Smart, 
sustainable 
& inclusive 
growth 

Social and 
territorial 
cohesion 

Health, and 
economic social 
and institutional 
resilience 

Policies for 
the next 
generation 

Green transformation 

C1 K1: Renewable energy and 
energy efficiency 

C1 K2: Sustainable renovation of 

○  

● 

● 

○ 

○ 

26 

 
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
● 

● 

● 

 ○ 

 ○ 

○ 

 ○ 

buildings 

C1 K3: A clean and safe 
environment  

C1 K4: Sustainable mobility 

C1 K5: Circular economy – 
resource efficiency 

Digital Transformation 

C2 K1: Digital transformation of 
the economy 
C2 K2: Digital transformation of 
the public sector and public 
administration 
Smart sustainable and inclusive 
growth 

C3 K1: RDI – research, 
development and innovation 

C3 K2: Raising productivity, a 
business-friendly environment for 
investors  
C3 K3: Labour market – measures 
to reduce the impact of negative 
structural trends  
C3 K4: Restructuring of Slovenian 
tourism and investment in 
infrastructure in the field of tourism 
and cultural heritage  
C3 K5: Strengthening competences, 
in particular digital competences 
and those required by the 
professions of the future and the 
green transition 

C3 K6: Efficient public institutions 

Health and welfare 

C4 K1: Health 

C4 K2: Social security and long-
term care 

C4 K3: Housing 

○ 

○ 

○ 

○ 

○ 

● 

● 

● 

● 

● 

● 

○  

● 

● 

○ 

○ 

○ 

○ 

○ 

○ 

○  

 ○ 

○ 

○  

○ 

 ○ 

○ 

○ 

● 

○  

○ 

● 

○ 

○  

○ 

○ 

● 

● 

○ 

Key: ‘●’ investments and reforms of the component primarily contribute to the pillar; ‘○’ the component partially contributes to 
the pillar. 

Green transition 

The plan has a strong focus on the green transition. The five components in cluster 1 “Green 
transformation” that contribute primarily to the green transition pillar account for more than two-
fifths of the total financial allocation. These include key reforms to unlock the renewable energy 
potential  in  component  C1K1  “Renewable  energy  and  energy  efficiency”,  to  expand  public 
transport and alternative fuels in component C1K4 “Sustainable mobility” and to introduce green 
budgetary planning in C1K5 “Circular economy”.  

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Key  investments  will  target  the  energy  transition.  In  particular,  investments  in  component 
C1K1 “Renewable energy and energy efficiency” will support the development and integration 
of renewable energy sources (EUR 130 million), complemented by measures to promote energy 
efficiency  investments  in  the  economy,  as  well  as  pilot  projects  to  promote  the  use  of  new 
technologies  in  the  economy  to  reduce  energy  consumption.  Component  C1K2  “Sustainable 
renovation of buildings” includes investments in energy efficiency of buildings (EUR 86 million) 
to  achieve  average  energy  savings  and  reductions  in  greenhouse  gas  emissions  of  around  30% 
compared with the situation prior to renovation.  

The  plan  also  covers  investments  in  climate  change  adaptation  and  environmental 
protection. The largest investment in the plan is included in component C1K3 “Clean and safe 
environment”  and  it  addresses  climate  change  adaptation  investments  focused  on  flood 
prevention  (EUR 310 million).  Additional  significant  investments  on  environment  in  the  same 
component  include  measures  on  energy-efficient  wastewater  and  drinking  water  systems 
(EUR 107 million). A dedicated scheme for promoting circular economy principles in production 
processes is also included in component C1K5 “Circular economy” (EUR 20 million). 

On transport, a sizeable effort is  made to increase the sustainability of the sector. A very 
significant allocation in component C1K4 “Sustainable transport” is dedicated to the upgrading 
of rail infrastructures (more than EUR 280 million), complemented with investments to digitalise 
rail  and  road  transport,  to  enable  greenhouse  gases  emissions  reductions,  and  investments  in 
electric charging infrastructures to promote e-vehicles.  

Several  other  measures  in  other  components  will  at  least  partially  support  the  green 
transition pillar. These include (i) investments in research and innovation focusing on the low 
carbon economy, circular economy and sustainable food systems in component C3K1 “Research 
and  innovation”;  (ii)  measures  promoting  green  public  procurement  in  component  C3K2 
“Raising  productivity”;  (iii)  investments  in  sustainable  tourism  accommodation  in  component 
C3K4  “Restructuring  of  Slovenian  tourism”;  and  (iv)  measures  in  component  C3K5 
“Strengthening competences” focusing on the development of green skills and the provision of 
more modern and environmentally friendly education infrastructure. 

Digital transformation 

The components that contribute primarily to the digital transformation pillar account for 
12.75%  of  the  total  financial  allocation.  Key  measures  in  the  two  components  in  cluster  2 
“Digital  transformation”  cover  the  digitalisation  of  both  the  public  and  the  private  sector.  In 
particular,  investments  in  connectivity  (EUR 30 million)  are  expected  to  contribute  to  boost 
digitalisation in certain areas of the country that are currently not covered and are unlikely to be 
covered in the near future. 

Component  C2K2  “Digital  transformation  of  the  public  sector”  includes  a  strategy  for 
digital  transformation  of  the  public  sector,  accompanied  by  prominent  investments.  The 

28 

 
 
component  includes  a  reform  that  introduces  electronic  IDs  for  citizens  and  companies  and 
investments  in  digital  skills  are  envisaged  to  reduce  the  digital  divide  (EUR 66.72 million  are 
directed  to  digitalisation  of  education,  science  and  sport).  Some  key  parts  of  the  public  sector 
(e.g.  justice  and  internal  security)  will  benefit  from  better-performing  equipment  and  better-
skilled civil servants. The digital transformation of public services linked to spatial planning, real 
estate, nature and water is also targeted by the plan (EUR 33.5 million).  

The measures included in component C2K1 “Digital transformation of the economy” will 
also  support  businesses  transformation  through  digital  technologies.  Increased  support  for 
digitalisation  of  few  consortia  will  aim  to  increase  competitiveness  of  large  companies  and 
SMEs  (EUR 44 million).  This  component  also  comprises  four  multi-country  projects  on 
microelectronics, cloud, quantum communication and blockchain. 

Several measures in other components will at least partially support the digital pillar. These 
include, for instance, (i) measures in smart electricity distribution network in C1K1 “Renewable 
energy  and  energy  efficiency”,  (ii)  investments  in  the  digitalisation  of  roads  and  rail  in  C1K4 
“Sustainable transport”, (iii) investments in research and innovation focusing on digitalisation in 
component  C3K1  “Research  and  innovation”;  (iv)  the  establishment  of  a  digital  governance 
platform  by  beneficiaries  in  the  investments  to  provide  innovative  ecosystems  in  component 
C3K2 “Raising productivity”; (v) investments  fostering digital literacy in the education system 
(EUR 56 million)  in  C3K5  “Strengthening  competences”,  (vi)  the  digital  transformation  of 
public procurement in C3K6 “Effective public institutions; and (vii) the sizeable investments in 
the area of e-health in C4K1 “Health” (EUR 83 million). 

Smart, sustainable and inclusive growth 

The components that contribute primarily to the pillar of smart, sustainable and inclusive 
growth account for 19.3% of the total proposed spending. Key measures are included in all 
components of cluster 3 “Smart sustainable and inclusive growth”. Given the wide scope of the 
third RRF pillar, the below list is not exhaustive.  

In particular, labour market and pension reforms  in component C3K3 “Labour  market” 
will  contribute  to  sustainable  growth.  The  pension  reform  will  contribute  to  the  long-term 
sustainability and adequacy of the pension system; legislation on a short-time work scheme that 
should allow the labour market to deal with major shocks in times of crisis.  

The plan is expected to contribute to productivity and competitiveness through a number 
of  measures.  Component  C3K2  “Raising  productivity”  includes  a  reform  to  support  the 
development  of  alternative  investment  funds  and  investments  to  boost  productivity  and 
investments of companies (EUR 138.5 million). Those investments take into account the role of 
SMEs by dedicating a very large portion of the allocation to SMEs support (EUR 121 million). 
Measures  in  component  C3K4  “Restructuring  of  Slovenian  tourism”  also  include  prominent 
investments  to  upgrade  the  tourism  and  culture  sectors  (EUR  127  million)  with  the  aim  to 

29 

 
 
improve  the  international  positioning  of  Slovenia  as  a  leading  destination  in  the  field  of 
environmental sustainability.  

Further  measures  are  expected  to  improve  research,  development  and  innovation. 
Component  C3K1  “RDI”  includes  measures  to  increase  the  efficiency  of  public  investment  in 
RDI, accompanied by sizeable financing for research projects in the green and digital transition 
(EUR 117.52 million).  Reforms  of  public  institutions  in  component  C3K6  “Effective  public 
institutions”  will  contribute  to  lowering  administrative  burdens  and  improving  public 
procurement. 

Several  other  measures  will  support  at  least  partially  the  objective  of  smart,  sustainable 
and inclusive growth. Those include, inter alia, measures in the field of education in component 
C3K5 “Strengthening competences”, and investments in support of green and digital transitions 
in  clusters  1  and  2,  particularly  those  sub-measures  specifically  targeting  SMEs,  such  as 
investments to support environmentally-friendly production processes and resource efficiency in 
SMEs in component C1K5 “Circular economy” and investments for the digital transformation of 
businesses in C2K1 “Digital transformation of the economy”. 

Social and territorial cohesion 

The social and territorial cohesion dimension is mainstreamed across the plan. A number of 
measures  relate  to  areas  in  which  also  European  Structural  and  Investment  Funds  promote 
cohesion, while ensuring that double funding is avoided.  

Several measures across various clusters and components will contribute to the objective of 
territorial  cohesion.  These  include:  (i)  geographically  balanced  investments  in  tourism 
accommodation  and  infrastructure  (EUR 127 million)  in  C3K4  “Restructuring  of  Slovenian 
tourism”;  (ii)  connectivity  measures  in  component  C2K2  “Digital  transformation  of  the  public 
administration”,  which  will  contribute  to  bridging  the  digital  divide  between  rural  and  urban 
areas (EUR 30 million); (iii) measures in component C1K3 “Clean and safe environment”, such 
as investments in flood and landslide prevention (EUR 335 million) and wastewater and drinking 
water  systems  across  the  country  (EUR 107 million).  The  key  reforms  of  the  labour  market  in 
component C3K3 “Labour market”, and the reforms of the healthcare and long-term care system 
in  cluster  4  “Health  and  welfare”,  as  well  as  investments  in  lifelong  learning  in  C3K5 
“Strengthening  competences”  will  also  have  an  impact  across  the  country.  The  territorial 
cohesion  dimension  is  taken  into  account  but  is  less  pronounced  in  case  of  the  research, 
development  and  innovation,  and  the  raising  productivity,  a  business-friendly  environment  for 
investors’  components.  Component  C4K3  “Housing”  contributes  primarily  to  the  social  and 
territorial cohesion pillar and accounts for 2.4% of the total financial allocation. The component 
focuses  on  investments  totalling  EUR 60 million  in  affordable  housing  to  mitigate  the  social 
impact of the crisis on marginalised people. 

Health, and economic, social and institutional resilience 

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The components that contribute primarily to the pillar of health, and economic, social and 
institutional resilience account for 12.4% of the total financial allocation. Key measures to 
bolster the health, social and institutional system’s resilience are foreseen in two components of 
cluster 4 “Health and welfare”.  

The  limited  resilience  of  the  healthcare  system  will  be  tackled  by  targeted  measures.  
Reforms  in  the  healthcare  system  foreseen  in  component  C4K1  “Health”  will  provide  the 
definition  of  statutory  health  insurance  rights,  restructure  the  complementary  health  insurance 
system, reform the remuneration system for health professions, and provide sustainable financing 
of  the  system.  Targeted  primary  care  investments  (mainly  in  training  of  healthcare  staff)  are 
welcomed as a starting point for further improvements in the quality of care. Key investment in 
healthcare  is  linked  with  improving  the  infrastructure  and  treatment  of  infectious  and 
communicable  diseases,  as  the  COVID-19  epidemic  showed  many  shortcomings  in  that  area 
(EUR 110 million).  

Social  and  institutional  resilience  will  be  improved  with  the  adoption  of  comprehensive 
legislation  regulating  long-term  care  system.    These  measures  are  included  in  component 
C4K2 “Social security and long-term care”. They will integrate both healthcare and social care 
services,  while  investments  in  nursing  homes  and  care  homes  will  set  up  appropriate 
infrastructure and improve the accessibility and quality of care (EUR 79 million). 

Several other measures in other components will at least partially support the objective of 
health, and economic, social and institutional resilience. These include, for instance, reforms 
and  measures  to  improve  efficiency  and  effectiveness  of  public  administration  in  component 
C3K6 “Effective public institutions”, and the labour market reform in component C3K3 “Labour 
market”. The resilience of Slovenia’s public administration is also increased by the measures on 
the  digital  transformation  of  public  administration  (EUR 62.05 million)  in  component  C2K2 
“Digital  transformation  of  the  public  administration”.  By  aiming  to  reduce  the  share  of 
households below the housing poverty threshold, the measures in  component C4K3 “Housing” 
also contribute to increasing social resilience. 

Policies for the next generation, children and the youth, such as education and skills 

The  components  that  contribute  primarily  to  the  policies  for  the  next  generation  pillar 
account  for  10.8%  of  the  total  financial  allocation.  It  includes  important  reforms  and 
investments in component C3K5 “Strengthening competences” to improve quality of education.  

The plan has a strong focus on acquiring skills. In particular, sizeable investments are planned 
in  component  C3K5  “Strengthening  competences”,  aiming  at  equipping  students  and  teachers 
with  new  skills  for  the  digital  and  green  transition  and  to  improve  their  financial  literacy 
(EUR 110 million).  

The plan also  provides for  more  modern, digital and environmentally friendly  education. 
in  schools 
Component  C3K5  “Strengthening  competences”  also  covers 
infrastructure (EUR 145 million), complemented by investments in digital education (EUR 41.1 

investments 

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million)  included  in  component  C2K2  “Digital  transformation  of  the  public  administration”, 
aiming at strengthening the resilience of the education system.  

Measures  in  other  components  will  also  pursue  policies  for  the  next  generation,  children 
and the youth. In particular, labour market measures in component C3K3 “Labour market” are 
expected to support youth employment. That component, as well as components C4K1 “Health” 
and  C4K2  “Social  security  and  long-term  care”  also  include  key  structural  reforms  to  address 
demographic trends and ensure greater intergenerational fairness. Measures in C4K3 “Housing” 
will target  socially disadvantaged  and marginalised  groups, including  young people and  young 
families. 

Overall assessment 

Taking  into  consideration  all  reforms  and  investments  envisaged  by  Slovenia,  its  recovery  and 
resilience plan represents, to a large extent a comprehensive and adequately balanced response to 
the economic and social situation, thereby contributing appropriately to all six pillars referred to 
in Article 3 of the RRF Regulation, taking the specific challenges and the financial allocation of 
Slovenia  into  account.  This  would  warrant  a  rating  of  A  under  the  assessment  criterion  2.1  in 
Annex V of the RRF Regulation. 

4.2. Link with country-specific recommendations and the European Semester  

Overall,  the  plan  provides  an  adequate  response  to  a  large  set  of  economic,  social  and 
environmental  challenges  faced  by  Slovenia.  The  plan  introduces  reforms  and  investments 
addressing  a  significant  subset  of 
the  country-specific 
the  challenges 
recommendations to Slovenia as part of the European Semester. In particular, the plan addresses 
challenges  related  to  fiscal  policies  and  public  finances,  social  safety  nets,  employment  and 
social, business environment and investments in RDI, green and digital transitions.  

identified 

in 

Slovenia  has  implemented  measures  sustaining  the  economy  to  effectively  address  the 
COVID-19  pandemic  (CSR  1,  2020).  Slovenia  managed  to  attain  a  relatively  healthy  fiscal 
position  prior  to  the  COVID-19  crisis,  reducing  public  debt  substantially  close  to  the  60% 
threshold.  This  allowed  it  to  borrow  relatively  easily  and  cheaply  on  the  markets  to  create 
sufficient  fiscal  space  for  the  seven  stimulus  packages  introduced  since  April  2020.  These 
packages have so far sustained the economy and should support recovery in the near future, in 
line  with  the  first  recommendation  of  2020.  When  the  epidemiological  situation  improves,  the 
temporary  measures  adopted  in  the  crisis  would  need  to  be  gradually  withdrawn  to  achieve  a 
prudent medium-term fiscal position and ensure debt sustainability. 

Social safety net 

The  plan  intends  to  address  in  a  comprehensive  manner  the  long-standing  Council 
recommendations  to  Slovenia  on  social  safety  net  (CSR  1,  2020,  CSR  1,  2019).  The  plan 
includes  the  following  key  structural  reforms  of  the  long-term  care,  healthcare,  and  pension 
systems, covering the three pillars of the social safety net. 

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The long-term  care reform in component C4K2 “Social security and long-term care” is a 
key  measure  of  the  plan.  It  would  establish  a  comprehensive  long-term  care  regime,  which 
currently  does  not  exist  in  Slovenia.  The  reform  will  establish  a  new  social  security  pillar 
focused on the specific needs of those requiring long-term care, ensuring equal access regardless 
of  socio-economic  status.  It  would  cover  both  institutional  care  in  nursing  homes  for  the  most 
complex needs as well as community day care and care at home to pursue the goal of reducing 
dependency on health institutions. For family members, especially  for women, the new regime 
should reduce the burden of informal care and thereby allow them to take up (full-time) formal 
employment. At the same time, investments  in  care homes, complying with modern standards, 
should improve the quality of care and living considerably for all age groups.  

The  healthcare  reform  in  component  C4K1  “Health”  should  make  the  system  more 
efficient. Improvements in primary care should reduce the burden on (and cost of) secondary and 
tertiary care. Together with measures in long-term care, the healthcare reform should also lead to 
a  better  integration  of  long-term  care  and  healthcare  and  thus  improve  their  resilience, 
accessibility  and  quality.  To  address  shortages  of  health  workers,  the  secondary  professional 
education in area of health and social services would be modernised and allow more enrolments 
at  the  medical  faculties.  The  reform  would  be  supported  by  the  planned  reform  of  the 
remuneration system of  the public sector in  component  C3K6 “Efficient  public institutions” to 
improve  incentives  and  overall  working  conditions  in  the  sector.  The  implementation  of  the 
reforms may result into higher financing needs for both healthcare and long-term care and it will 
therefore  be  crucial  that  all  elements  of  the  reforms  (i.e.  quality,  accessibility  and  long-term 
fiscal sustainability) are fully implemented. 

The pension reform should ensure the fiscal sustainability of the system in the medium to 
long term. These objective should be achieved, among others, through parametric reforms and 
other  flanking  measures  in  component  C3K3  “Labour  Market”.  These  measures  aim,  for 
example, to prolong employment at the end of the career by limiting loopholes such as using sick 
leave or unemployment benefits as a bridge to retirement.  

Employment and social 

Slovenia has been relatively successful in mitigating the social and employment impact of 
the COVID-19 crisis (CSR 2.1, 2020). Seven stimulus packages have been adopted since April 
2020 providing horizontal and sectoral support to the economy as well as employees and people 
in need. The plan intends to develop some of these measures further and incorporate them on a 
permanent legal framework in the reform foreseen in component C3K3 “Labour market”.  

Several  measures  in  component  C3K3  “Labour  market”  are  intended  to  improve  the 
functioning  of  the  labour  market  in  normal  and  exceptional  situations  (CSR  2.2,  2020). 
Support  will  be  provided  to  companies  and  employees  to  establish  more  flexible  working 
arrangements. A legal act will adopted for the crisis short-time working scheme to be applied in 
times  of  extreme  stress  to  provide  employers  and  employees  with  a  dependable  framework  to 
deal with crises. The legislation on unemployment benefits will be amended to promote longer 

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working  lives.  Amendments  to  healthcare  and  pension  legislation  are  envisaged  to  improve 
occupational rehabilitation.  

Other  measures  in  the  same  component  C3K3  increasingly  target  active  labour  market 
policies to reduce the number of long-term unemployed persons and older workers (CSR 2, 
2019).  In  particular,  these  measures  target  specific  groups  or  employment  situations  like  long-
term unemployment or a low level of skills. The effectiveness of occupational rehabilitation will 
be increased. Employers will be incentivised to hire young staff on a permanent basis instead of 
as “student workers” or on other temporary contracts. This would support a faster transition of 
young wage earners from education into a standard employment relationship. 

Measures  in  the  area  of  education  and  training  should  also  help  address  the  labour 
shortages  with  which  Slovenia  was  faced  in  an  increasing  number  of  sectors  before  the 
outbreak  of  the  COVID-19  crisis  (CSR  1,  2019).  Component  C3K5  “Strengthening 
competences”  aims  to  improve  the  resilience  of  the  labour  market  and  the  employability  of 
workers in precarious situations. The plan envisages support for the re-skilling and up-skilling of 
workers,  the  promotion  of  life-long  learning,  and  the  promotion  of  vocational  education  and 
apprenticeships in particular in areas with high and growing labour demand that is hard to cover 
like health sector. Education and training should become more relevant for the labour market and 
the digitalisation should play a much greater role in education.  

Component C4K3 “Housing” is expected to help mitigating the social impact of the crisis 
(CSR 2, 2020). The reform and investments in this component are expected to reduce the cost of 
housing  for  people  at  risk  of  poverty  and  social  exclusion  and  other  vulnerable  groups  by 
increasing the number of public housing through new constructions and activation of the existing 
housing stock.  

Business environment  

Several  measures  of  the  plan  are  expected  to  improve  access  to  finance  and  the 
development  of  equity  markets  (CSR  2.1,  2019).  Besides  several  incentive  schemes, 
component  C3K2  “Raising  productivity”  would  establish  a  legal  regime  for  alternative 
investment funds that would provide both investors and companies with better-tailored financial 
instruments  and  more  choice  in  the  design  of  their  portfolios.  This  new  regime  would  have  to 
build  on,  and  be  fully  consistent  with,  existing  EU-wide  capital  market  legislation  as  well  as 
ongoing initiatives at EU level. 

The plan also tackles administrative burdens and regulatory restrictions, which are other 
important  obstacles  for  private  entrepreneurship  (CSR  2.2,  2019;  CSR  3,  2020).  The 
Debureaucratisation  Act  and  the  recast  of  the  Construction  Act  and  the  Spatial  Planning  Act 
included in  component  C3K6 “Effective Public  Institutions”, together with  measures to  reduce 
the cost and the time necessary to comply with administrative requirements in cluster 2 “Digital 
Transition”,  will  help  the  private  sector  to  take  up  its  economic  activities  after  the  crisis. 
Furthermore,  at  least  four  components  (C1K1  “Renewable  Energy  Sources  and  Energy 
Efficiency”,  C3K2 “Raising Productivity”,  C3K4 “Tourism and Culture”, and  C3K6 “Efficient 

34 

 
 
 
Public  Institutions”  would  contribute  to  the  streamlining  and  modernising  of  regulatory 
requirements in their respective areas. 

The  plan  intends  to  further  reduce  the  inefficiencies  in  Slovenia’s  public  procurement 
system (CSR 2.3, 2019). Spending the funds efficiently is a crucial success factor for the plan, 
since Slovenia intends  to make intensive use of  public calls for tenders in the implementation. 
Component  C3K6  “Efficient  Public  Institutions”  should  help  to  increase  the  level  of 
professionalization among stakeholders in public procurement in Slovenia, to establish a public 
procurement academy, to push the digital transformation of public procurement and to increase 
competition  in  public  procurement  procedures.  Moreover,  changes  in  the  way  public 
procurement is organised in the health sector would be part of the planed revision of the public 
procurement  act.  The  plan  does  not  address  the  CSR  sub-part  recommending  to  “carry  out 
privatisations  in  line  with  the  existing  plans”  (CSR  2.4,  2019).  This  seems  understandable  in 
light of the high degree of uncertainty regarding the economic developments and the improved 
governance of state-owned companies compared to the time when the list had been established. 
Furthermore, progress was made in the past on privatisations in the banking sector and plans are 
ongoing in the tourism sector.  

The  plan  is  expected  to  improve  the  business  environment,  promote  investment  and 
support  productivity  enhancing  reforms  (CSR  2,3,  2019,  CSR  3,  2020).  Demographic 
changes, combined with low innovation and low public investment are undermining Slovenia’s 
growth  potential.  The  components  “Raising  productivity,  a  business-friendly  environment  for 
investors”  (C3K2)  and  “Research,  development  and  innovation”  (RDI;  C3K1)  comprise  of 
measures to improve productivity in Slovenia. The former aims at improving access to capital for 
young and innovative companies, the provision of direct subsidies to support investments that are 
suited to increase the productivity of the economy, and the creation of innovative ecosystems of 
economic and business infrastructure. In addition, a number of other measures should contribute 
to  higher productivity in specific sectors  (e.g. in  the circular economy, tourism and culture) or 
horizontally through the provision of a more efficient digital and physical infrastructure (e.g. the 
components  on  the  digital  transition,  sustainable  mobility  or  effective  public  institutions)  or 
increased human capital (e.g. the component on strengthening competences).  

Investments in RDI, green and digital transitions 

The plan is expected to give a significant boost to (public) investment in Slovenia (CSR 3, 
2019; CSR 3, 2020). The components of the plan combine direct public investment and support 
of private investments with reforms to make investments in areas like RDI more attractive and 
efficient, or set the necessary regulatory framework for investments in dynamic areas, such as the 
green  transition  or  the  circular  economy.  These  measures  would  help  the  country  meeting 
important  targets  like  the  2050  climate  neutrality  objective  and  the  2030  energy  and  climate 
targets. The measures would broaden digital capacities and competences considerably.  

Component C3K1 “Research, development and innovation” is set to support investment in 
RDI  through  various  measures  and  increase  the  efficiency  and  effectiveness  of  these 
investments and hence improve the performance of the national RDI ecosystem (CSR 3.1, 

35 

 
 
2019;  CSR  3.8,  2020).  It  also  aims  at  improving  the  coordination  of  RDI  between  research 
institutes  and  companies  as  well  as  among  researchers.  With  the  creation  of  a  market  for 
alternative investment funds Slovenia tries to channel more money into RDI by start-ups, small 
and  mid-sized  companies.  As  described  in  more  detail  in  paragraph  4.3  below,  investment  in 
RDI  under  the  plan  will  be  primarily  focussed  on  the  green  and  digital  transition  and  on  the 
attractiveness of Slovenia as a location for RDI in Europe. 

With significant reforms and investments in cluster 1, the plan focuses investments on the 
green  transition  (CSR  3.2,  2019;  CSR  3,  2020).  With  component  C1K1  “Renewable  energy 
and energy efficiency” Slovenia intends to adapt the relevant legislation to make investments in 
clean and efficient production and use of energy more attractive. As explained in more detail in 
paragraph 4.5 below, important reforms are expected to remove bottlenecks and provide support 
for obtaining consents and permits for renewables projects and to facilitate investments in energy 
efficiency  and  new  technologies  for  demand-response  services.  Reforms  and  investments  in 
components  C3K1  “Clean  and  safe  environment”  are  focused  on  environmental  infrastructure, 
such  as  flood  prevention  and  wastewater  and  drinking  water  systems.  The  measures  in 
component C1K4 “Sustainable transport” will also promote public transport and the transition to 
alternative  fuels.  The  reform  and  investment  measures  in  the  plan  described  in  more  detail  in 
paragraph 4.5 below, are aimed at reducing emissions from transport, which alone is responsible 
for more than two-fifth of the country’s total CO2 emissions.  

The  digital  challenge  (CSR  3,  2020)  is  addressed  through  two  dedicated  components  in 
cluster  2  “Digitalisation”  but  also  through  specific  measures  in  other  components.  The 
digitalisation is  expected to  be a  core driver of economic  growth  in  the  future in  Slovenia and 
crucial  for  the  international  competitiveness  of  its  small  open  economy.  As  described  in  more 
detail  in  section  4.6  below,  Slovenia  intends  to  introduce  an  e-ID  and  to  adopt  a  national 
cybersecurity strategy. Significant investments would go into the creation of cloud capacities, the 
digitalisation  of  public  services,  the  broadband  rollout  (5G),  the  modernised  digital  education 
infrastructure,  and  e-health.  Furthermore,  the  plan  intends  to  promote  the  digitalisation  of  the 
public administration and the public sector. The existing one-stop shop for business operators for 
their  dealings  with  the  public  administration  and  the  government  will  be  expanded  to  cover 
citizens  as  well.  To  contribute  to  increasing  European  industrial  data  cloud  capacities  and  the 
ability to develop the most powerful, cutting edge, and sustainable processors, the plan intends to 
support the establishment of hybrid cloud, the development of low-consumption processors and 
semiconductor chips.  

Investments  in  digital  infrastructure  will  be  complemented  by  investment  in  the  digital 
skills  of  employees  and  citizens  (CSR  3.11,  2020).  The  development  of  digital  literacy  at  all 
levels  of  education  system  and  lifelong  learning  will  be  supported  through  an  overhaul  of 
curricula  at  all  education  levels  (from  early  childhood  education  and  care  to  higher  education) 
foreseen  in  component  C3K5  “Strengthening  competences”.  The  aim  of  the  measures  is  to 
integrate basic computing and digital competences in the curricula. To empower schools for this 
task, 20 000 teachers/educators will be trained in digital skills. 

Overall assessment  

36 

 
 
Taking into consideration the reforms and  investments envisaged by Slovenia, its recovery and 
resilience  plan  is  expected  to  contribute  to  effectively  addressing  a  significant  subset  of 
challenges  identified  in  the  country-specific  recommendations,  or  challenges  in  other  relevant 
documents officially adopted by the Commission under the European Semester, and the recovery 
and  resilience  plan  represents  an  adequate  response  to  the  economic  and  social  situation  of 
Slovenia. This would warrant a rating of A under the assessment criterion 2.2 in Annex V of the 
Regulation.
RRF 

37 

 
 
Table  5.  Mapping  of  country  challenges 
recommendations and the components of the Slovenian recovery and resilience plan 

in  2019-20  country-specific 

identified 

Component of the plan*  

Country challenges  

 1   2   3   4    5    1   2    1    2    3   4   5   6   1   2   3  

Associated CSR (2019-
2020) or Euro Area recommenda
tions 
Fiscal policy and public finances 

C1  

C2  

C3  

C4  

Public debt sustainability 

2019.1, 2020.1.1, 2020.1.2 

  ● 

  ●  ● 

Employment protection 
legislation and framework 
for labour contracts   
Social protection 
and Unemployment 
benefits   
Active Labour Market 
policies  
Skills & life-long 
learning  
Health & long-term care  

Labour market, social safety net and education  

2019.1.5, 2020.2.2, 2020.2.3  

                    ●    

 2020.2.1  

2019.1.5 

          ●     

   ●  

   ●  

2019.1.5, 2020.3.11 

   ●  

   ○  

   ●  

2019.1.2, 2020.1.2, 2019.1.3  

   ●   ●  

Investment-related policies  

Research and innovation  

2019.3.1, 2020.3.8  

   ●  

Digital transition  

Green transition  

2020.3.5, 2020.3.9, 2020.3.10, 
2020.3.12, 2020.3.13  
2019.3.2, 2019.3.3, 2019.3.4, 
2020.3.5, 2020.3.6, 2020.3.7  

   ●   ●   ● 

   ●  

   ●  

●   ●   ●   ●   ●  

   ●  

Productivity and business environment  

Access to finance 

2019.2.1, 2020.3.1  

    ●     

Business environment  

2019.2.2, 2020.3.2  

○ 

Public administration  

2019.2.3  

●  ●   ●      ●     

   ●     

   ●     

Key:  “●”  investments  and  reforms  of  the  component  significantly  address  the  challenge;  “○”  the 
component partially addresses the challenge 

38 

 
 
 
 
 
 
 
 
 
 
 
 
 
                       
  
  
  
  
  
  
   
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
   
   
   
   
   
   
   
   
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 
4.3. Growth  potential,  job  creation,  economic,  institutional  and  social  resilience, 
European  Pillar  of  Social  Rights,  mitigating  the  impact  of  the  crisis,  and  social 
territorial cohesion and convergence  

Fostering economic growth and jobs 

The  plan  contains  several  investments  and  reforms  that  aim  to  foster  economic  growth, 
stimulating job creation and boosting the growth potential of the Slovenian economy, and 
mitigating  the  adverse  effects  of  the  crisis.  The  plan  will  help  provide  a  short-term  demand 
boost and stimulate investment, thus contributing to the recovery of the economy in the short to 
medium  term.  Reforms  will  help  raise  growth  in  the  medium  and  long  run.  Among  the  most 
important  reforms  that  address  the  growth  potential  of  the  economy  are  the  reforms  aiming  to 
improve  labour  supply,  reform  of  the  RDI  system,  public  administration  reforms  and 
improvement of the education system.  

in  component  C3K3  “Labour  market”  aim  at 

increasing  the 
Proposed  reforms 
participation  rate  of  older  people  in  the  labour  market,  and  raising  labour  supply. 
Importantly,  the  plan  proposes  to  amend  the  unemployment-benefit  provisions  in  the  Labour 
Market Regulation act with a view to increase the employment of older people and prevent early 
exits from the labour market. A pension reform will ensure the fiscal sustainability of the pension 
system (i.e. risks stemming from age-related expenditure will be significantly reduced from the 
current high-risk category) and adequacy of pensions. This reform will be adopted by the end of 
2024,  after  proper  analytical  work  and  consultations  with  social  partners.  The  reform  will,  in 
addition  to  parametric  changes  in  the  system,  aim  at  extending  the  period  of  employment  and 
increasing  the  labour  market  integration  of  older  people  while  ensuring  the  adequacy  of  the 
pension system. While the details are still to be fleshed out in the implementation, these are key 
reforms  that  will  contribute  to  growth,  intergenerational  fairness  and  fiscal  sustainability  and 
they need to be implemented in line with the full ambition laid out in the plan. These reforms are 
complemented  by  additional  training  measures  to  improve  the  employability  of  older  workers. 
Furthermore, reforms that will boost labour supply include measures to encourage the inclusion 
of workers with disabilities and young people in the labour market, the latter through support to 
access quality jobs with open-ended contracts. 

Boosting investments will also raise the country’s potential GDP in the medium to long run. 
In  line  with  this  goal,  several  components  across  clusters  1,  2  and  3  of  the  plan  envisage 
increasing investments in numerous areas. With investments in cluster 3, Slovenia will  provide 
support  for  productive  investments  by  enterprises  (C3K2  “Raising  productivity”,  mainly 
focusing on energy efficiency and the circular economy) and also specifically for investments in 
the tourism sector (C3K4 “Restructuring of Slovenian tourism and investment in infrastructure in 
the  field  of  tourism  and  cultural  heritage”).  Planned  investments  in  improving  the  quality  of 
tourist  accommodation  infrastructure,  public  tourism  infrastructure  and  the  renewal  of  cultural 
heritage  are  expected  to  lead  increased  growth  potential  for  Slovenian  tourism.  Component 
C1K1  “Renewable  energy  and  energy  efficiency”  also  envisages  support  for  productive 
investments in the renewable energy sector, to be directed to a large extent in new technologies, 
creating  potential  for  future  growth.  Finally,  the  plan  also  provides  for  support  for  the  digital 

39 

 
 
transformation  of  the  economy  (component  C2K1),  to  enable  companies  to  increase  their 
productivity.  This  should  accelerate  the  uptake  of  advanced  technologies  in  companies  and 
enable them to be more productive. 

A  key  pillar  of  the  plan  deals  with  investment  in  research  and  development  which  is 
instrumental in boosting total factor productivity (component C3K1). A number of elements 
of the plan directly address productivity: 

  The  plan  proposes  to  finance  two  research  and  innovation  programmes,  in  green  and 
digital  technologies.  Substantial  support  will  be  directed  to  research  and  development 
activities of research organisations and enterprises, including for setting up demonstration 
projects. Targeted calls (green and digital) are expected to significantly increase research 
capacity  in  these  priority  areas.  These  programmes  are  also  expected  to  support 
dissemination  and 
into  market 
applications, benefitting the economy and society at large. 

technological  knowledge 

translation  of  relevant 

  The envisaged funding instruments for researcher mobility schemes will support human 
resources for R&D, with a view to reversing the brain drain and attracting/retaining top 
talents in the country. Given that researchers will come to Slovenia after several years of 
residence  abroad,  they  are  expected  to  make  a  significant  contribution  to  the 
internationalisation of the R&D system  and R&D capacity building  (e.g. access  to  new 
knowledge  and  know-how,  access 
transfer  of 
knowledge, benefitting local researchers/organisations). These measures are expected to 
boost  the  scientific  and  technological  performance  of  the  host  institutions  and  increase 
their participation in top EU/international R&D programmes. 
In the long-term, the success of the economy depends greatly on the quality and content 
of  the  education  and  training  provided.  The  plan  envisages  the  modernisation  of 
education,  including  higher  education  programmes  and  infrastructure.  In  particular,  the 
emphasis is on the strengthening of digital and sustainable development competences and 
on financial literacy. This is expected to reduce the mismatch between current and future 
labour market needs and the skills of the labour force. 

international  networks/teams, 

to 

 

  Productivity of the economy is also expected to be supported by the de-bureaucratisation 

measures included in the plan, which will improve the business environment. 

Improved public procurement procedures, also set out in the plan, are expected to lead to greater 
competitiveness  of  the  economy.  Slovenia  will  also  reform  planning  and  construction 
procedures.  The  renewal  of  the  Building  Act  and  the  Spatial  Planning  Act  aims  to  accelerate 
planning and permit procedures and thus support faster economic development. 

The plan also includes investment measures with potentially significant short-term effects 
on  job  creation.  Among  these  measures  are  the  sustainable  renovation  of  public  buildings, 

40 

 
 
aiming to increase their energy efficiency23, investments in flood protection measures, extension 
of water and wastewater systems, and investments in hospital and long-term care networks and 
affordable housing. 

Investments  in  the  plan  financed  through  the  RRF  are  expected  to  be  additional  to  the 
baseline without the RRF. According to the data presented in the plan, the baseline of growth 
enhancing  public  expenditures  not  financed  by  the  RRF  over  the  period  of  2021-2026  is 
approximately  at  the  same  level  as  it  was  in  the  three-year  period  before  the  pandemic  (2017-
2019). The projected RRF-financed growth enhancing expenditure is estimated at 0.75% of GDP 
in 2021-2026.  

The  plan  includes  the  analysis  of  general  economic  impact.  The  analysis  provided  by  the 
Slovenian authorities is based on the European Commission’s standard QUEST III R&D model. 
The  expenditure  from  the  plan  has  been  classified  into  four  model  groups  of  measures: 
infrastructure  investment;  various  forms  of  aid;  RDI;  and  human  capital.  Investment  in  public 
infrastructure  has  been  simulated  through  a  temporary  increase  in  government  investment. 
Various forms of aid (mainly to enterprises) have been simulated by reducing the cost of tangible 
capital  of  companies  producing  finished  products.  Similarly,  the  promotion  of  RDI  has  been 
simulated  by  reducing  the  cost  of  intangible  capital  for  companies  producing  intermediate 
products.  Measures  in  the  area  of  education  (human  capital)  have  been  simulated  through  a 
labour  productivity  (efficiency)  shock.  Some  of  the  measures  deemed  to  contribute  in  limited 
manner  to  higher  productivity  were  simulated  as  a  temporary  increase  in  government 
consumption. 

The model-based analysis on the macroeconomic impact included in the plan shows clear 
long-term  positive  results.  The  presented  estimated  impact  appears  somewhat  lower  than  the 
Commission’s own expectations regarding the results of the plan (see Box 2). The RRP results 
do not  take into account the positive impact  of the plans of Slovenia’s trading  partners, which 
again provide positive influence for the small open economy.  The simulations also do not take 
fully  into  account  the  impact  of  the  envisaged  reform  measures,  as  the  details  will  only  be 
formulated  later.  The  conversion  of  individual  measures  into  model  shocks  requires  additional 
analyses  (e.g.  how  the  reform  of  the  education  system  will  affect  the  efficiency  of  future 
economy). 
employees 

educational 

structure 

changes 

the 

the 

or 

of 

in 

23 The employment impacts of building energy renovations are discussed, among others, in: Zangheri, P., Armani, 
R.,  Kakoulaki,  G.,  Bavetta,  M.,  Martirano,  G.,  Pignatelli,  F.  and  Baranzelli,  C.,  Building  energy  renovation  for 
decarbonisation and Covid-19 recovery, EUR 30433 EN, Publications Office of the European Union, Luxembourg, 
2020,  ISBN  978-92-76-24766-1,  doi:10.2760/08629,  JRC122143.,  and  in  Shnapp,  S.,  Paci,  D.  and  Bertoldi,  P., 
Untapping  multiple  benefits:  hidden  values  in  environmental  and  building  policies,  EUR  30280  EN,  Publications 
Office of the European Union, Luxembourg, 2020, ISBN 978-92-76-19983-0, doi:10.2760/314081, JRC120683.   

41 

 
 
                                                           
Box 2: Stylised NGEU impact simulations with QUEST - Slovenia 

Model simulations conducted by the Commission using the QUEST model show that the 
economic impact of the NGEU in Slovenia could lead to an increase of GDP of between 
1.1% and 1.7% by 2026.24  After 20 years, GDP could be 0.5% higher. Spillovers account 
for a large part of such impact.  
According  to  these  simulations,  this  would  translate  into  up  to  6,000  additional  jobs.  Cross 
border (GDP) spillovers account for 0.6 pps in 2026, showing the value added of synchronised 
expenditure  across  Member  States  (line  2).    Even  in  a  scenario  with  a  lower  productivity  of 
NGEU funds, it would still lead to a significant impact (line 3).25  

Table 1: QUEST simulation results (deviation of real GDP level from non-NGEU case, linear 
disbursement assumption over 6 years) 
Scenario 

2021  2022  2023  2024  2025  2026  2027  2028  2029  2030  2040 

Baseline 

   of which spillover 

Low productivity 

0.9 

0.4 

0.6 

1.4 

0.6 

1.0 

1.4 

0.6 

1.0 

1.5 

0.6 

1.0 

1.6 

0.6 

1.0 

1.7 

0.6 

1.1 

1.3 

0.6 

0.7 

0.9 

0.4 

0.3 

0.9 

0.3 

0.3 

0.8 

0.2 

0.3 

0.5 

0.1 

0.2 

This stylised scenario does not include the possible positive impact of structural reforms, 
which  can  be  substantial.  A  model-based  benchmarking  exercise  shows  that  undertaking 
structural  reforms  that  would  result  in  halving  the  gap  vis-à-vis  best  performers  in  terms  of 
indicators of structural reforms could raise Slovenia GDP by 14% in 20 years time, more than 
the 10% found for the EU average, the difference reflecting the relatively larger gaps towards 
best performers in Slovenia.26  
Due  to  the  differences  in  the  assumptions  and  methodology,  the  results  of  this  stylised 
assessment  cannot  be  directly  compared  to  the  numbers  reported  in  chapter  4  of 
Slovenia’s RRP.  

Strengthening social cohesion 

While Slovenia already has a strong social protection system, the plan aims to reinforce it 
further.  In  particular,  it  is  aimed  at  improving  the  long-term  care  system  and  providing 
significantly more housing units for the vulnerable population.  If implemented in  line with  the 
targets,  the  long-term  care  reform  will  provide  the  sustainable  funding  basis  for  the  long-term 
care  system  in  Slovenia.  The  long-term  care  reform  is  expected  to  relieve  the  burden  on  the 

24  RRF  amounts  to  roughly  90%  of  NGEU,  which  also  includes  ReactEU,  Horizon,  InvestEU,  JTF,  Rural 
Development and RescEU. 
25 Technically, the low productivity scenario considers a significantly reduced output elasticity of public capital. 
26  Varga,  J,  in  't  Veld  J.  (2014),  “The  potential  growth  impact  of  structural  reforms  in  the  EU:  a  benchmarking 
exercise”, European Economy Economic Papers no. 541. 

42 

 
 
 
 
  
 
 
                                                           
families of people needing special care, instead establishing a system funded by society. In the 
broader system, people needing care do not depend on the resources available for their families, 
but  all  people  in  an  equal  position  are  expected  to  receive  equal  care.  The  measure  will  be 
strengthened by the construction of long-term care nursing homes and care homes, to be made 
available  as  an  alternative,  non-compulsory  service  in  addition  to  the  community-based  care 
services. 

The plan contains measures to address gender mainstreaming and equality for all. The plan 
states that under the Law on Equal Opportunities for Women and Men, all ministries must ensure 
that all measures and policies are systematically assessed from a gender equality perspective or 
that the possible effects on the situation of women and men are taken into account at all stages of 
their implementation. The forthcoming National Programme for Equal Opportunities for Women 
and Men up to 2030 will also contribute to this goal. Mainstreaming of gender equality and equal 
opportunities  for  all  should  be  ensured  through  measures  in  several  components,  notably  on 
sustainable  renovation  of  buildings,  clean  and  safe  environment,  circular  economy,  digital 
transformation  of the public administration, research  and innovation,  education, labour market, 
social  security  and  long-term  care,  health  system  and  affordable  housing.  For  example,  the 
greater availability of affordable housing renting will benefit older women who are at greater risk 
of  poverty  or  social  exclusion,  persons  with  disabilities,  and  younger  families.  Setting  up  the 
long-term  care  system  will  enable  integrated  social  and  healthcare  services  for  all  age  groups, 
which  is  currently  the  case  only  for  those  over  65  years.  The  long-term  care  reform  is  also 
expected to strengthen the development of community-based services in line with the process of 
deinstitutionalisation  and  to  contribute  to  women’s  ability  to  re-enter  the  labour  market  by 
improving  the  availability  of  long-term  care  services  for  all  ages  across  the  country.  The 
introduction  of  more  flexible  working  arrangements  would  improve  the  gender  gap  among  the 
active population in caring responsibilities. The subvention for open-end contracts in the labour 
market  component  will  increase  employment  levels  of  young  women  (up  to  25  years)  who 
currently  face  the  second  highest  share  of  short-term  jobs  in  Europe,  while  people  with 
disabilities  will  benefit  from  adapting  their  workplaces  to  more  flexible  forms  of  work.  The 
renovation of public buildings is planned to include improvement of their accessibility through 
architectural adaptability for people with disabilities. The needs of disadvantaged groups, such as 
children with special needs, will be taken into account in the context of digitalising the education 
sector and constructing a suitable modern education infrastructure. 

The most important policy for children and youth in the plan is the modernisation of the 
education  system.  Scheduled  reforms  and  investments  will  further  strengthen  the  quality  of 
education in particular by adapting education, study and training programmes in different fields 
across  the  education  system,  and  supporting  the  development  of  teacher  competences  towards 
the acquisition of green and digital competences to enable full participation in society and in the 
labour  market.  Connectivity  of  educational  institutions  is  also  expected  to  be  enhanced,  thus 
reducing the digital divide.  

The  education  policy  measures  will  also  strengthen  the  link  between  education  and  the 
labour  market,  ensuring  a  faster  and  easier  transition  of  young  people  into  the  labour 

43 

 
 
market.  The  revamping  of  education  programmes  through  the  plan  is  expected  to  enable  the 
education system to respond more quickly to the needs of the labour market and society, and the 
strengthening  of  key  competences  of  young  people  is  expected  to  improve  their  active 
participation in both of these. 

Reducing vulnerability and increasing resilience 

The  plan  includes  various  measures  to  increase  economic  and  social  resilience  to  shocks. 
Among the most important measures in this regard are reforms of the business environment and 
labour markets and the actions taken to mitigate the effects of climate change. In the area of the 
environment,  the  plan  will  provide  funding  for  prevention  activities  (flood  prevention, 
earthquake  prevention)  and  for  coordinated  response  activities,  creating  a  competent  force  to 
respond in a coordinated and timely manner in the event of floods and major fires. These actions 
are  expected  to  limit  the  magnitude,  duration  and  damage  of  such  disasters.  The  activities  for 
flood  prevention  also  contribute  to  the  prevention  and  preparedness  for  natural  disasters  by 
regulating  water  circulation,  preventing  soil  erosion,  and  ensuring  the  wood-production, 
environmental and nature-conservation functions of forests. 

The  plan  includes  elements  to  enable  services  to  be  available  remotely  for  segments  of 
society. The plan provides for significant advancement in government e-services. This will lead 
to better coverage of services for citizens, faster processing of applications, and reduced social 
barriers  for  people  with  special  needs.  Digital  services  in  health  are  expected  to  contribute 
towards the faster and more efficient management of healthcare needs. In addition, IT networks 
are planned to be improved with the RRF funding, thus making them and IT systems as a whole 
more resilient. 

The  plan  also  envisages  more  flexible  working  methods.  As  part  of  the  plan,  Slovenia  will 
carry  out  a  pilot  programme  to  address  issues  facing  teleworkers.  Information  will  be  made 
available for employers and employees, and practical problems, such as health and safety issues 
and working time recording, will be studied. Practical projects will be carried out in a number of 
companies to identify the changes needed to implement teleworking more broadly. It is expected 
that these results will enable more teleworking in the future, either always or in case there is a 
need. This would also increase the resilience of society. Another measure in the labour market, 
the  establishment  of  a  permanent  short-time  work  scheme,  will  address  negative  social 
consequences  and  make  society  economically  and  socially  more  resilient  to  labour  market 
shocks. 

Resilience will also be improved through the creation of new and updated medical facilities 
and equipment. The plan provides for the construction of two hospitals, aimed at the control of 
infectious diseases, in Ljubljana and Maribor. This will enable to better tackle future challenges 
requiring the availability of modern hospital beds. The creation of long-term care hospitals will 
also  support  this  aim.  In  addition,  the  plan  seeks  to  increase  the  response  speed  of  emergency 
medical teams by providing better IT solutions and new ambulances. 

Cohesion and convergence 

44 

 
 
The  investments  proposed  in  the  plan  envisage  supporting  territorial  cohesion.  To  some 
extent  this  aspect  will  be  supported  through  investment  in  digital  services,  communication 
networks, energy networks, improvement of public transport services, and targeted investments 
in productivity and tourism. 

Investments in the energy sector in component C1K1 will take place throughout Slovenia. 
These  include  the  restructuring  of  district  heating  systems  and  investments  to  strengthen  the 
electricity distribution network to  ensure the connection of an increased  number of renewables 
generating installations throughout Slovenia, thereby strengthening territorial cohesion. 

Promoting and increasing the competitiveness of public transport has the potential to bring 
the  country  closer  together.  The  use  of  public  transport  was  severely  affected  during  the 
pandemic.  Through  better  management  of  public  transport  services,  it  will  be  possible  to 
improve the mobility of  the population  while reducing emissions  from  transport. The plan will 
provide  for  major  investments  for  the  upgrading  of  congested  railway  lines  and  stations.  For 
remote  areas  not  fully  benefitting  from  public  transport,  investments  to  promote  transition  to 
clean vehicles in road transport is expected to have a positive effect. The plan will address this 
through  the  appropriate  geographical  diversification  of  recharging/supply  infrastructure  for 
alternative fuels in transport. 

Investments  in  digitalisation  are  also  expected  to  have  a  positive  effect  on  territorial 
cohesion. With public and private ICT services more readily available through support under the 
plan, the attractiveness of more remote areas increases, as the need to physically move decreases. 
The  plan  also  provides  for  investments  in  fast  networks  in  underserved  areas,  allowing  more 
people to use high-quality connections in rural and mountainous areas. This is further supported 
by planned measures under the labour market component to improve teleworking conditions. 

The plan also provides for investment grants in border areas to improve productivity and 
make production processes cleaner. In addition to the planned strategic investments, a separate 
funding is planned for smaller enterprises in the border areas. The call for such projects will be 
separate  from  the  call  for  larger,  more  strategic  projects.  This  is  expected  to  ensure  that 
investments by SMEs in remote locations are also properly supported. 

With  component  C3K4,  the  plan  aims  to  ensure  that  investments  in  tourism  and  culture 
support territorial cohesion. The tourism strategy divides Slovenia into four regions in terms of 
tourism  products,  within  which  the  35  leading  destinations  are  evenly  distributed.  The  leading 
destinations  are  evenly  distributed  throughout  the  country,  with  17  belonging  to  the  eastern 
cohesion region and 18 to the western cohesion region. Investments in the restoration of cultural 
monuments will be spread throughout Slovenia. 

Overall assessment 

Taking  into  consideration  all  reforms  and  investments  envisaged  by  Slovenia,  its  recovery  and 
resilience plan is expected to have a high impact on strengthening growth potential, job creation, 
and  economic,  social  and  institutional  resilience  of  the  Member  State,  on  contributing  to  the 
implementation  of  the  European  Pillar  of  Social  Rights,  including  through  the  promotion  of 

45 

 
 
policies for children and youth, and on mitigating the economic and social impact of the COVID-
19 crisis, thereby enhancing the economic, social and territorial cohesion and convergence within 
the Union. This would warrant a rating of A under the assessment criterion 2.3 of Annex V of the 
RRF Regulation. 

46 

 
 
 
Box 3:  Employment and social challenges in light of the Social Scoreboard 
accompanying the European Pillar of Social Rights 

a 

remains 

Slovenia  performs  relatively  well  on  most  indicators  of  the  social  scoreboard  supporting  the 
European  Pillar  of  Social  Rights.  The  COVID-19  crisis  has  impacted  negatively  on  employment, 
which declined by 0.8 percentage points to 75.6% 
in  2020,  compared  with  the  year  before,  while 
unemployment increased by 0.5 percentage points 
to 5.0%. Labour market participation of older and 
low-skilled  workers 
challenge. 
Participation of these workers in lifelong learning 
is also below the EU average. Although the share 
of people at risk of poverty or social exclusion is 
well below the EU average, it remains high for the 
elderly.  Also,  poverty  risks  and inequalities  (also 
below  the  EU  average)  may  increase  due  to  the 
economic and social impact of the crisis. The net 
earnings  of  a  full-time  single  worker  earning  the 
average  wage  are  slowly  increasing  but  this 
remains  to  be  monitored.  While  education  in 
general  performs  well,  with  low  number  of  early 
leavers  from  education  and  training,  good  basic 
skills and high tertiary education attainment, there 
are  gaps  between  men  and  women,  as  well  as 
between the native-born and foreign born pupils at 
all levels of education. 

Slovenia’s  Recovery  and  Resilience  Plan 
addresses  some  of  the  key  employment  and 
social challenges relevant for implementing the 
Pillar, in particular the ones linked with access 
to healthcare and long-term care. The plan also 
aims  to  improve  access  to  non-profit  rental 
housing  for  young  people,  the  socially  deprived 
and  other  marginalised  groups  which  would  also 
contribute to the greater social inclusion of these groups.  To foster equal opportunities and access to 
the  labour  market,  the  plan  envisages  a  measure  supporting  young  people  in  their  transition  to  the 
labour market. Furthermore, adapting working environments to the needs of people with disabilities is 
also set out in the plan. As for healthcare, some measures aim to increase its accessibility and resilience, 
while  long-term  financial  sustainability  will  also  be  addressed.  The  plan  also  covers  long-term  care 
reform and investment measures, such as the adoption of relevant legislation and investment in long-
term  care  facilities.  In  addition,  by  setting  up  a  proper  long-term  care  system,  informal  caretakers  / 
caretakers at home will be relieved from informal care of family members and can re-enter the labour 
market.  

The  plan  particularly  fosters  dynamic  labour  markets  and  fair  working  conditions  through  an 
ambitious investment in skills that match the labour market needs. It also aims to modernize the 
47 
education  and  training  system  in  the  light  of  digital  and  green  transitions.  This  investment  will 
contribute to reducing the mismatch between competences acquired during education and those sought 
by employers, thus facilitating a better transition from education to the labour market. Actions include 
promoting  vocational  education  and  apprenticeships,  training  mentors  in  companies,  improving  the 

Critical situationTo watchWeak but improvingGood but to monitorOn averageBest performersSocial Scoreboard for SLOVENIAEqual opportunities and access to the labour marketEarly leavers from education and training (% of population aged 18-24) (2020)Youth NEET (% of total population aged 15-24) (2020)Gender employment gap (2020)Income quintile ratio (S80/S20) (2019)At risk of poverty or social exclusion (in %) (2019)Dynamic labour markets and fair working conditionsEmployment rate (% population aged 20-64) (2020)Unemployment rate (% population aged 15-74) (2020)Long term unemployment (% population aged 15-74) (2020)GDHI per capita growth (2019)Net earnings of a full-time single worker earning AW (2019)Update of 29 April 2021. Members States are classified on the Social Scoreboard according to a statistical methodology agreed with the EMCO and SPC Committees. It looks jointly at levels and changes of the indicators in comparison with the respective EU averages and classifies Member States in seven categories. For methodological details, please consult the Joint Employment Report 2021; NEET: neither in employment nor in education and training; GDHI: gross disposable household income.Social protection and inclusionImpact of social transfers (other than pensions) on poverty reduction (2019)Children aged less than 3 years in formal childcare (2019)Self-reported unmet need for medical care (2019)Individuals' level of digital skills (2019)Better than average 
 
4.4. The principle of ‘do no significant harm’  

Slovenia’s recovery and resilience plan provides an assessment for compliance with the ‘do 
no  significant  harm’  (DNSH)  principle.  Slovenia’s  recovery  and  resilience  plan  follows  the 
methodology  set  out  in  the  technical  guidance  on  the  application  of  ‘do  no  significant  harm’ 
(DNSH)  under  the  Recovery  and  Resilience  Facility  Regulation27.  Slovenia  has  included  a 
detailed  DNSH  assessment,  in  accordance  with  the  template  provided  by  the  Commission,  for 
each measure included in its recovery and resilience plan. 

Each  ‘do  no  significant  harm’  assessment  follows  a  two-step  approach.  The  first  step 
assesses whether there is a risk that a measure could do significant harm to one or more of the 
environmental  objectives.  Certain  measures  that  contribute  substantially  to  one  of  the  six 
environmental objectives are considered compliant with DNSH for that objective, in line with the 
DNSH technical guidance. Other measures (e.g. in education and culture, labour market, public 
administration)  have  no  or  insignificant  foreseeable  impact  on  some  or  all  of  the  six 
environmental  objectives.  Other  measures  are  designed  to  ensure  compliance  with  DNSH, 
including  broad  support  schemes  that  span  across  sectors  and  activities  (e.g.  in  research  and 
innovation,  productivity,  and  energy  efficiency  in  the  economy).  For  measures  requiring  a 
second  step  ‘substantive  DNSH  assessment’  as  per  the  DNSH  technical  guidance  (e.g. 
renewables  power  production  and  district  heating,  water  management,  sustainable  mobility, 
digitalisation,  touristic  investments,  and  new  building  constructions),  Slovenia  has  provided 
evidence and assurances substantiating that the measures will not lead to significant harm to any 
of the six environmental objectives. 

Some measures include specific evidence and commitments through milestones and targets 
to  substantiate  that  they  will  not  lead  to  significant  harm  to  environmental  objectives. 
These  examples  include  measures  supporting  productivity  investments  covering  installations 
under the EU Emissions Trading System (ETS), broad support schemes spanning across sectors 
and  activities,  investments  in  renewables  power  production,  and  flood  prevention  measures. 
Slovenia  ensures  DNSH  compliance  of  financial  support  to  sectors  covered  by  the  ETS  by, 
among other conditions, making the selection of supported projects conditional upon achieving 
greenhouse  gas  emissions  that  are  substantially  below  the  relevant  benchmarks  established  for 
free  allocation  as  set  out  in  Commission  Implementing  Regulation (EU)  2021/447.  Where  the 
emission  reductions  are  not  substantially  lower  than  the  relevant  benchmarks,  Slovenia  has 
committed  to  provide  an  explanation  on  why  this  level  of  emission  reductions  cannot  be 
achieved.  This  condition  is  substantiated  in  the  component  description,  included  in  the  DNSH 
assessment,  and  reflected  in  the  milestones  and  targets  for  this  measure.  The  selection  criteria 
therefore  ensure  that  projects  supported  under  the  Recovery  and  Resilience  Facility  are  in 

27 Commission Notice 2021/C58/01. 

48 

 
 
 
                                                           
accordance with the DNSH technical guidance and will not lead to significant harm to any of the 
six environmental objectives within the meaning of Article 17 of the Taxonomy Regulation. The 
selection  criteria  for  broad  industry  support  schemes,  including  investments  in  research  and 
innovation  and  SMEs,  will  exclude  fossil  fuels,  activities  that  are  not  substantially  below  the 
ETS benchmarks for free allocation, incinerators, and landfills. Through this approach, Slovenia 
ensures 
the  recovery  and  resilience  plan  are 
DNSH-compliant. 

the  broad  measures 

included 

that 

in 

The  plan  includes  investments  to  increase  renewables  power  production,  including 
hydropower.  While  these  investments  fully  contribute  to  climate  mitigation  objectives,  they 
require specific attention in terms of DNSH compliance for the objectives of the sustainable use 
and protection of water, and the protection of biodiversity. Slovenia ensures DNSH compliance 
by  confirming  that  the  measure  is  not  expected  to  have  significant  negative  effects  on  Natura 
2000 and by introducing selection criteria for these investments, requiring compliance with the 
relevant EU and national environmental acquis and with Section 4.5 ‘Electricity generation from 
hydropower’ (Annex  I of the Commission  Delegated Regulation  (EU) (C(2021) 2800/3) under 
the Taxonomy Regulation (EU) 2020/852). Similarly, investments in flood prevention measures 
envisaged  in  the  plan  will  favour  and  integrate  nature-based  solutions  and  blue  or  green 
infrastructure.  Slovenia  will  also  ensure  DNSH  compliance  of  any  possible  residual  impact  of 
those investments, especially with the objectives for the sustainable use and protection of water 
and biodiversity. Project selection in fact will require, in addition to compliance with the relevant 
EU and national environmental acquis, compliance with the relevant annexes of the Commission 
Delegated Regulation  (EU) (C(2021) 2800/3) under the Taxonomy  Regulation  (EU) 2020/852. 
These requirements are also reflected in the milestones and targets for these measures. 

Overall assessment 

Taking  into  consideration  the  assessment  of  all  the  measures  envisaged,  no  measure  for  the 
implementation  of  reforms  and  investment  projects  included  in  Slovenia’s  recovery  and 
resilience  plan  is  expected  to  do  any  significant  harm  to  environmental  objectives  within  the 
meaning  of  Article  17  of  Regulation  (EU)  No  2020/852  (the  principle  of  ‘do  no  significant 
harm’). This would warrant a rating of A under the assessment criterion 2.4 of Annex V of the 
RRF Regulation. 

4.5. Green transition  

Climate target 

The  plan  correctly  follows  the  methodology  for  climate  tracking  set  out  in  Annex  VI  by 
identifying  both  the  intervention  fields  and  the  corresponding  coefficients  for  the 
calculation of support to climate-change objectives for the relevant measures. Whenever the 
selected intervention field includes specific additional conditions, those are substantiated in the 
component  description  and  reflected  in  the  milestones  and  targets  for  the  measure  (e.g.  high-
efficiency  cogeneration;  energy  renovation  of  buildings;  construction  of  new  energy-efficient 

49 

 
 
 
buildings;  and  wastewater  and  drinking-water  investments  compliant  with  energy-efficient 
criteria).  To  ensure  an  accurate  selection  of  the  intervention  fields,  and  to  avoid  any 
overestimations of the contribution of certain measures to the climate objectives, the plan splits 
the  measures  based  on  their  costs  whenever  possible.  In  particular,  the  plan  excludes  from  the 
climate  tagging:  (i)  costs  for  seismic  or  static  renovation  of  buildings;  and  (ii)  costs  for  the 
prevention  of  non-climate-related  natural  risks  (i.e.  earthquakes).  When  the  type  of  measure 
contributes  to  both  the  climate  and  digital  targets  (e.g.  research  and  innovation  projects  to 
support the green and digital transition; and renewal of the education system for the green and 
digital  transition),  the  plan  considers  that  only  half  of  the  relevant  costs  will  contribute  to  the 
climate target. The plan does not propose any increased climate coefficients for any measure. 

Overall,  the  plan  contributes  to  climate  objectives  for  42.4%  of  Slovenia’s  allocation  of 
EUR 2.5 billion, and the climate target of 37% is  therefore  considered to have been  met. 
Nine  of  the  16  components  in  the  recovery  and  resilience  plan  include  expenditure  that 
contributes to the climate objective. 

The  most  significant  contributions  to  the  climate  target  are  included  in  Cluster  1  of  the 
plan.  In  particular,  the  plan  allocates:  (i)  more  than  EUR  300  million  to  climate-change-
adaptation measures to prevent and manage the risk of floods (component C1K3); (ii) EUR 290 
million  to  upgrade  and  digitalise  railways  (component  C1K4);  and  (iii)  EUR  146  million  to 
promote  the  deployment  of  renewables  by  investing  in  high-efficiency  RES  district  heating, 
installing  new  RES  capacity  and  upgrading  the  electricity-distribution  network  (component 
C1K1).  Other  important  investments  contributing  to  the  climate  target  include:  (i)  energy-
efficiency renovation of buildings (component C1K2) and (ii) resource-efficiency investments in 
SMEs (component C1K5). 

Clusters 3 also includes other measures contributing to the plan’s climate target. The largest 
measures  include:  (i)  productivity  investments  focused  on  energy  and  resource  efficiency 
(component C3K2); (ii) research and innovation projects focusing on the low carbon economy, 
resilience and adaptation to climate change, and focusing on the circular economy (C3K1), and 
(iii) the energy renovation and the  construction  of energy-efficient  buildings in  various sectors 
(components C3K4 and C3K5).  

Table 6. Contribution to climate objectives per component 

Component 

Total cost 
(EUR million) 

C1 K1: Renewable energy and energy efficiency 
C1 K2: Sustainable renovation of buildings 
C1 K3: A clean and safe environment  

146.00 
86.05 
472.80 

Contribution 
to climate 
objectives 
(EUR million) 
143 
62.02 
365.16 

Share of 
contribution 
to climate 
objectives 
5.8% 
2.5% 
14.7% 

50 

 
 
 
 
 
a 

business-friendly 

C1 K4: Sustainable mobility 
C1 K5: Circular economy – resource efficiency 
C2 K1: Digital transformation of the economy 
C2  K2:  Digital  transformation  of  the  public  sector  and 
public administration 
C3 K1: RDI – research, development and innovation 
C3 K2: Raising 
productivity, 
environment for investors  
C3 K3: Labour market 
and 
C3 K4: Restructuring  of  Slovenian 
investment  in  infrastructure  in  the  field  of  tourism  and 
cultural heritage  
C3 K5: Strengthening competences, in particular digital 
competences  and  those  required  by  the  professions  of 
the future and the green transition 
C3 K6: Efficient public institutions 
C4 K1: Health 
C4 K2: Social security and long-term care 
C4 K3: Housing 
Total 

tourism 

311.90 
48.00 
56.50 
260.17 

132.22 

157.50 

56.28 

127.00 

282.05 
24.72 
0 

0 

40 

55.4 

0 

13.8 

264.36 

67.64 

0 
224.90 
79.00 
60.00 
2 482.68 

0 
0 
0 
0 
1 067.6 

11.4% 
1% 
0% 

0% 

1.6% 

2.2% 

0% 

0.6% 

2.7% 

0 
0 
0 
0 
42.4% 

Green transition 

The  plan  has  a  strong  focus  on  the  green  transition,  with  a  dedicated  cluster  of  five 
components,  totaling  42%  of  the  plan’s  financial  allocation.  Cluster  1  “Green  transition” 
includes  key  reforms  to  unlock  renewable-energy  potential  and  sustainable  mobility,  both  of 
which  are  essential  steps  to  decarbonise  the  energy  and  transport  sector.  Investments  in  RES, 
energy efficiency of public buildings, flood prevention measures, the environment, upgraded rail 
infrastructure, and dedicated measures on the circular economy will also contribute to the green 
transition  of  the  economy.  The  envisaged  reforms  and  investments  will  support  the 
implementation of the European Green Deal and will help accelerate Slovenia’s green transition 
while contributing to economic recovery.  

On the contribution to the EU’s 2030 climate and energy-related targets, the recovery and 
resilience  plan  broadly  addresses  the  three  key  policy  challenges  identified  in  the 
Commission’s recommendations on the Slovenian national climate and energy plan. In fact, 
the  recovery  and  resilience  plan  includes  key  reforms  and  investments  to  promote  renewable 
energy, and to support energy efficiency and sustainable transport. 

Component  C1K1  “Renewable  energy  and  energy  efficiency”  is  expected  to  help  achieve 
the RES target. The legislative reforms aim to address regulatory challenges and RES network 
integration,  while  striking  a  balance  between  nature-protection  requirements  and  further 
development  of  RES.  By  setting  up  a  single  contact  point  for  administrative  procedures  for 
investors,  and  by  reducing  the  time  taken  for  administrative  procedures  to  obtain  permits  and 
authorisations, the plan is expected to help unlock the existing potential of private investment in 
renewables. Moreover, the reform is expected to implement the recommendations resulting from 
technical  assistance  on  the  revision  of  legislation  for  spatial  planning  of  wind  power  plants, 
financed under the Technical Support Instrument. In addition, the mapping of suitable areas for 

51 

 
 
 
RES investments based on nature-protection requirements should help provide further clarity for 
investors.  The recovery  and resilience plan will  also  increase the use of  renewables in  district-
heating  systems.  In  addition,  the  plan  will  include  actions  to  develop  energy  infrastructure,  in 
particular  by  developing  and  upgrading  the  electricity-distribution  grids  to  cater  for  a  slight 
increase  in  RES  capacity.  The  impact  of  the  proposed  investments  in  RES  on  the  2030  RES 
target (both the proposed investment in hydropower/geothermal plants as well as the alternative 
of  constructing  solar-power  plants  on  public  buildings)  is  expected  to  be  moderate  to  low, 
especially if compared with the share that has been calculated using the formula in Annex II of 
the  Governance  Regulation  as  described  in  the  assessment  of  the  final  national  energy  and 
climate plan28. However, the plan also sets out a complementary future scheme to support RES 
that  will  be  financed  with  national  support.  This  complementary  future  scheme  would  be 
developed  by  building  on  the  results  of  the  reforms  and  its  details  are  not  specified  yet.  The 
recovery and resilience plan states that the legislative changes in the RES reform will explicitly 
plan  for  Slovenia  to  participate  in  the  renewables  financing  mechanism,  to  complement  RES 
investments in the country. The planned contribution to the renewables financing mechanism is 
not yet quantified. 

On  energy  efficiency,  the  recovery  and  resilience  plan  covers  energy-efficiency  measures  in 
industry,  as  well  as  a  dedicated  component  on  the  energy  renovation  of  buildings.  These  two 
issues are discussed in the two bullet points below.  

  The  plan  tackles  the  need  to  decarbonise  the  industrial  sector.  Component  C1K1 
“Renewable energy and energy efficiency” includes an important reform to promote the 
implementation of energy-audit recommendations and an energy-management system by 
making  exemptions  from  RES  and  CHP  charges  conditional  upon  fulfilling  certain 
energy-efficiency obligations. The reform also introduces a digital platform with energy 
‘e-identities’  to  facilitate  access  by  users  and  exchanges  between  RES  producers  and 
industrial  consumers.  This  digital  platform  will  improve  the  functioning  of  the  national 
ETS registry through the implementation of advanced technologies, which will increase 
transparency and reduce the risk of fraud. In addition, a pilot phase will be initiated with 
the setting up of a regulatory ‘sandbox’ to promote demand-response technologies. While 
the energy savings to be achieved in this first pilot phase are unclear, demand-response 
technologies  can  make  energy  systems  more  efficient,  and  a  second  phase  for  energy-
efficiency  investments  is  already  planned.  The  investment  is  expected  to  increase  the 
implementation  of recommendations from  energy audits in  industry by  at  least  10%.  In 
addition,  the  substantial  investments  in  the  productivity  component  will  have  an 
important energy-efficiency dimension. This is because investments in ETS sectors will 
be  conditional  on  achieving  greenhouse  gas  emissions  that  are  substantially  below  the 
relevant benchmarks set for free allocation.  

28 https://ec.europa.eu/energy/sites/default/files/documents/staff_working_document_assessment_necp_slovenia_en.pdf  

52 

 
 
                                                           
  On the energy efficiency of buildings, the plan covers a broad range of reforms and 
investments,  covering  both  construction  and  renovation.  Component  C1K1 
“Renewable  energy  and  energy  efficiency”  includes  a  reform  measure  to  promote  the 
energy-efficiency potential of the construction sector by adopting a building-information-
modelling (BIM) strategy. This strategy promotes the use of building information models 
both in the building-construction and building-management phases. As foreseen in C1K2 
“Sustainable renovation of buildings”, the implementation of the recently adopted long-
term  renovation  strategy  (LTRS)  will  make  it  possible  to  identify:  (i)  cost-effective 
renovation approaches, policies and measures to promote cost-effective deep renovations 
of buildings; (ii) measures to guide investment decisions by individuals, the construction 
industry and financial institutions; and (iii) an assessment of expected energy savings and 
wider  benefits.  In  particular,  the  reform  foreseen  in  component  C1K2  will  introduce  a 
legal ban on the design and installation of heating-oil, mazut and coal boilers for heating 
buildings.  The  reform  introduced  in  C1K2  will  also  set  up  a  revolving  fund  for  energy 
renovations in the public sector to be self-financed with energy savings. On investments, 
the  plan  broadly  responds  to  the  objectives  of  the  Renovation  Wave  and  the  national 
energy  and  climate  plan.  The  recovery  and  resilience  plan  and  in  particular  component 
C1K2, has a strong focus on the energy renovation of public buildings and a rather small 
allocation for the energy renovation of publicly owned residential buildings, for which a 
minimum  of 30% energy  savings overall, compared to  ex-ante  emissions,  is  laid  down. 
The level of investment suggests a high level of ambition on renovation, in line with the 
objective indicated in  the  LTRS to  achieve minimum energy-performance requirements 
in  renovations.  For  private  residential  buildings,  the  plan  explains  that  the  actions  on 
public buildings will be complemented with additional comparable investments financed 
from  other  sources  (i.e.  the  ESIF,  EU  REACT,  the  national  budget  or  investors’  own 
resources).  In  any  event,  the  plan  also  requires  energy  renovations  of  buildings  in  the 
tourism sector, which should require an energy performance certificate of at least class B. 
The reform linked to housing will cover the acquisition and renovation of approximately 
2 000 existing housing units. In addition to the increased energy efficiency of buildings, 
some  of  such  investments  will  also  address  broader  resource  efficiency  considerations, 
such as water use or sustainable construction materials. 

Component  C1K4  “Sustainable  transport”  has  a  very  significant  focus  on  promoting 
sustainable transport with concrete reforms and investments. These measures will promote: 
(i) public transport; (ii) rail passenger and freight transport; (iii) alternative fuels in transport; and 
(iv) the digital transformation of rail and road transport. The reform on public transport foreseen 
in  that  component  will  provide  an  improved  governance  framework  for  public  transport  by 
setting up an integrated public-passenger operator at national level, which will help integrate rail 
and bus public transport with intercity, urban, school and commuter transport. The reform is also 
expected  to  enhance  the  accessibility  and  competitiveness  of  public  transport  so  that  it  can 
recover after the pandemic. Under the reform of the deployment of alternative fuels also foreseen 
in  component  C1K4,  an  entity  will  be  designated  to  coordinate  the  needs  of  the  transport  and 
energy  sectors.  This  will  help  to  ensure  and  coordinate  the  deployment  of  alternative-fuels 

53 

 
 
infrastructure  and  thus  make  the  transition  to  zero-emission  mobility  more  resilient.  Key 
investments  for  the  upgrade  of  railway  stations  and  railway  lines  will:  (i)  target  the  most 
problematic areas of dense traffic; (ii) remove bottlenecks and increase the capacity, speed and 
safety  of  rail  transport;  and  (iii)  improve  the  attractiveness  of  rail  transport  for  passengers.  In 
addition,  the  digitalisation  of  road  transport  should  allow  real-time  adjustment  of  travel  speed 
limits to prevent accidents and congestion and to reduce emissions and air pollution.  

The plan aims to increase resilience towards climate change. The component C1K3, “Clean 
and  safe  environment”  includes  the  creation  of  dedicated  centres  to  prevent,  prepare  for,  and 
respond to  climate change  and climate-driven disasters.  It  also  sets  out  plans to  train  the civil-
protection forces to ensure integrated actions and raise awareness among the general public. The 
component  specifically  targets  the  risk  of  floods,  which  is  one  of  the  most  relevant  climate-
change-related  risks  for  Slovenia.  In  particular,  it  envisages  the  adoption  of  a  flood-risk 
management  plan  for  the  period  2022-2026,  to  ensure  that  risk  management  becomes  a 
including  by  promoting  nature-based  solutions.  The  reform  will  be 
permanent 
complemented  by  very  significant  investments  to  prevent  flood  risks,  which  will  prioritise 
nature-based  solutions  and  green  infrastructure  to  the  extent  possible.  The  measures  aim  to 
protect 62 000 additional people from climate-related flood risks. 

task, 

The  plan  contributes  to  the  EU  environmental  policy with  a  focus on  water  management 
and the circular economy. The following two points discuss each of these issues.  

  On  water,  the  plan  proposes  significant  measures  to  build  and  upgrade  energy-
efficient  wastewater  and  drinking-water  systems,  including  the  reduction  of  water 
leakages.  It  also  aims  to  increase  the  efficiency  of  public  environmental-protection 
services  by:  (i)  ensuring  environmental  charges  on  water  use  are  cost-effective;  (ii) 
upgrading  the  information  system  for  monitoring  and  reporting  the  activities  of  the 
municipal  utilities;  and  (iii)  increasing  data  access.  The  measures  in  C1K3  “Clean  and 
safe  environment”  are  expected  to  increase  the  efficiency  of  the  water-management 
system  by:  (i)  increasing  energy  efficiency;  (ii)  strengthening  system  response  and 
adaptation; (iii) reducing water losses; and (iv) promoting water reuse.  

  The  plan  also  includes  reforms  and  investments  to  accelerate  the  transition  to  a 
circular economy. Component C1K5 “Circular economy” adopts a holistic approach to 
circularity, including concrete measures on: (i) material productivity; (ii) eco-innovation; 
and (iii) the link to  waste-management and support  schemes. The dedicated component 
on  the  circular  economy  takes  into  account  the  full  lifecycle  of  material  goods,  from 
waste prevention to consumption and more efficient recycling. The planned reform will 
set up a legal framework to: (i) reduce food waste; (ii) review and update the collection 
system  for  packaging  waste;  and  (iii)  carry  out  waste-awareness  projects  to  promote 
changes in consumption patterns. The reform included in the plan will also: (i) strengthen 
the existing green public-procurement system by integrating circular public-procurement 
principles;  and  (ii)  introduce  green  budgetary  planning.  A  one-stop  shop  for  circular-
economy projects will also be set up. The reform will contribute to a more efficient and 
faster  implementation  of  investments  in  circular-innovation  projects.  The  plan  also 

54 

 
 
focuses  on  circular-economy  solutions  to  increase  the  capacity  of  the  wood-processing 
sector.  The  investment  and  activities  under  component  C1K5  and  the  investment  and 
activities under component  C3K2 will mutually  reinforce each other  and ensure mutual 
coherence. 

Slovenia  has  included  measures  in  cluster  1  of  its  plan,  which  contribute  indirectly  to 
biodiversity. The plan does not contain any measures directly addressing biodiversity. However, 
some measures for climate mitigation and adaptation contained in the plan may also indirectly be 
beneficial  to  biodiversity,  given  that  climate  change  is  one  of  the  main  threats  to  biodiversity. 
For  example,  the  plan  tackles  the  key  challenge  for  Slovenia’s  green  transition  of  developing 
renewable  technologies,  without  harming  the  extensive  coverage  of  Natura  2000  areas.  This  is 
because the reform to unlock the potential of renewables in Slovenia in component C1K1, will 
take into account the findings of a sensitivity mapping of biodiversity. In component C1K3, the 
reform  that  deals  with  protecting  forests  from  climate  change  and  forest  restoration  following 
climate  change  addresses  the  Commission’s  recommendations  for  Slovenia’s  common 
agricultural policy strategic plan issued in SWD(2020) 394 of 18 December 2020. It does this by 
fostering  the  sustainable  forest  management  of  forestry  land  and  enhancing  multifunctionality, 
forest protection and restoration of forest ecosystems, in particular after catastrophic events. This 
forest reform aims for Slovenia’s forests to reach good condition of habitats and species linked to 
the forests in order to: (i) enhance ecological services and biodiversity; and (ii) build resilience to 
threats such as climate-change impacts on forests. The accompanying investment in the Centre 
for  Seeds,  Nurseries  and  Forest  Protection  is  a  cornerstone  measure  for  increasing  long-term 
quantity, quality and resilience in EU forests, notably against fires, pests and other threats likely 
to  increase  with  climate  change.  With  a  focus  on  genetic  preservation  and  genetic  diversity, 
biodiversity-friendly forest  practices  will be further developed. The integration of nature-based 
solutions in flood-prevention investments may also contribute to biodiversity objectives. Finally, 
the  investments  in  wastewater  installations  will  also  prioritise  areas  with  a  greater  positive 
impact on Natura 2000 sites and water-protection areas, while at the same time focusing on the 
energy  efficiency  of  the  wastewater  systems.  Slovenia  has  carried  out  a  systematic  DNSH 
assessment indicating that none of the proposed measures generates harm to the protection and 
restoration of biodiversity and ecosystems. 

Lasting impact  

The measures put forward in the plan are expected to generally have a positive long-term 
impact  on  environmental  objectives.  The  development  of  RES  promoted  with  the  plan  will 
stimulate investments that provide new jobs in the short term (in the construction and installation 
phase)  and  in  the  long  term  (in  the  operation  and  maintenance  phase).  Supporting  the 
development of RES will help create green jobs. The energy-efficiency reforms and investments, 
although  small,  could  contribute  to  lower  energy  bills,  thus  partly  mitigating  the  economic 
effects of the crisis. In particular, the creation of a revolving fund to be self-financed with energy 
savings  will  ensure  a  continuous  source  of  funding  for  future  renovation  of  buildings  in  the 
public sector. The combination of energy renovation with seismic renovation will also ensure a 
lasting impact of the energy-renovation investments, as Slovenia is one of the EU countries with 

55 

 
 
the  highest  seismic  risk.  Reforms  and  investments  in  the  sustainable  transport  component  are 
expected  to  contribute  to  significant  reductions  in  greenhouse-gas  emissions  and  air  pollution 
from transport, thus ensuring a better living environment for the population and better operating 
conditions  for  economic  operators.  Measures  increasing  the  resilience  of  forests  will  in  turn 
support  a  more  resilient  economy  in  rural  areas.  The  introduction  of  green  budgetary  planning 
and of circular public-procurement principles will also have a lasting impact on transforming the 
economy into a circular one, where the value of products and materials is maintained for as long 
as  possible.  This  is  expected  to  bring  economic  benefits  by  creating  an  optimal  business 
environment for sustainable growth, job creation and innovation. 

Overall assessment 

Taking  into  consideration  the  assessment  of  all  the  measures  envisaged,  the  recovery  and 
resilience  plan  is  expected,  to  a  large  extent,  to  make  a  significant  contribution  to  the  green 
transition or to address the challenges resulting from it and ensures that at least 37% of its total 
allocation contribute to the climate target. This would warrant a rating of A under criterion 2.5 of 
Annex V of the RRF Regulation. 

4.6. Digital transition  

Digital tagging 

The recovery and resilience plan correctly follows the methodology for digital tracking in 
Annex  VII  by  identifying  intervention  fields  and  corresponding  coefficients  to  calculate 
support to the digital objectives for each investment measure. To ensure an accurate selection 
of  the  intervention  fields  and  to  avoid  any  overestimations  of  the  contribution  of  certain 
measures  to  the  digital  objectives,  the  plan  splits  the  measures  based  on  their  costs  whenever 
possible  (i.e.  for  the  investment  on  strengthening  skills,  especially  digital  skills  and  skills 
required by the professions of the future – the comprehensive transformation of green and digital 
education to  emphasise  sustainability  and resilience). The plan does not  propose any increased 
digital coefficients for any measure.  

When the type of measure contributes to both the climate and digital targets  (e.g. research and 
innovation projects to support the green and digital transition, or renewal of the education system 
for the  green and digital  transition), the plan considers  that only half of the relevant  costs  will 
contribute to the digital target. 

Overall, based on the methodology, the plan contributes to digital objectives for 21.4% of 
Slovenia’s  allocation  of  EUR 2.5  billion  and  the  digital  target  of  20%  is  therefore 
considered  to  have  been  met.  The  most  significant  contributions  to  the  digital  target  are 
included in Cluster 2. In particular, the plan allocates more than EUR 260 million to improve the 
digital transition of the public administration (which also includes connectivity) and over EUR 
55 million to support the digitalisation of the business sector. Slovenia has also earmarked in the 
plan  four  multi-country  projects  to  foster  the  development  of  advanced  technologies  in 
collaboration with other Member States. Other significant investments include e-health (EUR 83 

56 

 
 
million)  in  the  health  component  and  strengthening  digital  skills  in  the  education  component 
(EUR 60 million). 

Table 7. Contribution to digital objectives per relevant component  

Component 

Total cost 
(EUR million) 

C1 K1: Renewable energy and energy efficiency 
C1 K2: Sustainable renovation of buildings 
C1 K3: A clean and safe environment  
C1 K4: Sustainable mobility 
C1 K5: Circular economy – resource efficiency 
C2 K1: Digital transformation of the economy 
C2 K2: Digital transformation of the public sector and 
public administration 
C3 K1: RDI – research, development and innovation 
C3 K2: Raising productivity, a business-friendly 
environment for investors  
C3 K3: Labour market 
C3 K4: Restructuring of Slovenian tourism and 
investment in infrastructure in the field of tourism and 
cultural heritage  
C3 K5: Strengthening competences, in particular digital 
competences and those required by the professions of 
the future and the green transition 
C3 K6: Efficient public institutions 
C4 K1: Health 
C4 K2: Social security and long-term care 
C4 K3: Housing 
Total 

Digital transition 

146.00 
86.05 
472.80 
311.90 
48.00 
56.50 
260.17 

132.22 

157.50 

56.28 

127.00 

264.36 

0 
224.90 
79.00 
60.00 
2 482.68 

Contribution 
to digital 
objectives 
(EUR million) 
32 
0 
0.90 
30.09 
0 
56.50 
258.89 

Share of 
contribution 
to digital 
objectives 
1.3% 
0% 
0.04% 
1.2% 
0% 
2.3% 
10.4% 

10 
0 

0 

1 

60.35 

0 
83 
0 
0 
532.7 

0.4% 
0% 

0% 

0.04% 

2.4% 

3.3% 
0 
0 
21.4% 

The  plan  aims  to  increase  the  efficiency  and  growth  of  businesses,  especially  traditional 
businesses.  On  the  one  hand,  reforms  and  investments  in  Component  C2K1  “Digital 
transformation  of  the  economy”  should  accelerate  the  greater  use  of  advanced  technologies  in 
business processes. On the other hand, they should help companies to adapt to market needs and 
a  changing  regulatory  framework,  while  improving  market  access  through  better  transparency 
and security. The reforms related to the digitalisation of businesses should contribute to create a 
digital  transformation  of  enterprises  strategy  that  will  foster  the  wider  integration  of  advanced 
technologies, especially in relation to the necessary skills to implement these technologies. The 
strategy will contribute to the objective of making the 2020s Europe’s digital decade. The reform 
will  also  reduce  administrative  burden  for  businesses,  by  creating  a  single  digital  identity  for 
companies.  This  will  improve  companies’  access  to  the  market,  increasing  security,  reducing 
operational risks and increasing the quality of business. The plan also envisages: (i) the adoption 
of  guidelines  for  innovative  public  procurement;  and  (ii)  the  development  of  the  connectivity 
toolbox  roadmap,  which  will  foster  5G  and  broadband  roll-out  with  the  introduction  of  best 

57 

 
 
 
 
practices.  The  reforms  proposed  in  this  component  are  expected  to  contribute  to  a  faster  and 
more efficient implementation of the two investments: the establishment of a hybrid cloud  and 
the  industrial/business  digital  transformation  programme  (this  programme  will  focus  on  the 
development and implementation of a digitalisation strategy for 20 consortia of large, medium-
sized and small enterprises). 

The digitalisation of public administration brings a holistic and comprehensive approach to 
facilitate  a  significant  change  of  the  sector.  The  dedicated  component  C2K2  “Digital 
transformation of the public sector and public administration” dedicates 10.4% of the total plan 
allocation  to  the  digitalisation  of  the  public  administration  with  a  total  of  almost  EUR  260 
million.  A  balanced  package  of  reforms  and  investments  will  bring  significant  changes, 
supporting  investments  in  ICT  infrastructure  to  strengthen:  (i)  e-government;  (ii)  the  data 
economy; and (iii) the research and development potential of artificial intelligence. In particular, 
the  plan  introduces  a  national  electronic  identifier,  which  will  enable  the  rapid  and  uniform 
development of e-services at national and international level, facilitating access to interoperable 
e-services.  By  adopting  the  digital  public  services  strategy  2021-2030,  re-establishing  the 
Informatics  Development  Council  as  a  one-stop  shop  for  coordination  of  all  IT-related 
investments, Slovenia’s plan is expected to guide investments in the digitalisation of the public 
sector. In addition, the national cybersecurity strategy aims to strengthen cybersecurity capacity 
and  diminish  cybersecurity  risks,  raising  awareness  about  cybersecurity  at  national  level. 
Investment in research, development and innovation on the digital transition should contribute to 
the implementation of digital solutions that are state of the art. 

The  dedicated  component  C2K2  “Digital  transformation  of  the  public  sector  and  public 
administration” addresses the digital  transformation  of several  parts of the public sector. 
On  internal  security,  the  plan  aims  to  improve  and  upgrade  the  technology  available  to  the 
Slovenian  police  by:  (i)  ensuring  that  police  applications  run  smoothly;  and  (ii)  constructing  a 
state-wide,  TETRA  digital-radio  network  infrastructure  for  11 000  users.  An  additional 
investment  focuses on tackling the need for  real-time spatial  data and services. This  additional 
investment  will  seek  to  use  innovative  approaches  and  modern  technologies  to  access  and  use 
real estate records, environmental records, water records, economic public-infrastructure records, 
and  building-land  records.  The  plan  also  emphasises  the  digital  transformation  of  the 
agricultural, food and forestry sector, which will also ultimately contribute to the objectives of 
the  European  Green  Deal.  The  objective  is  to  complement  activities  under  the  Common 
Agricultural Policy, to harness the potential of precision farming and reduce the environmental 
impact  of  agriculture,  such  as  the  sustainable  use  of  fertilisers,  and  to  simplify  the 
implementation of the common agricultural policy. This will be achieved by: (i) interconnecting 
different  databases;  and  (ii)  establishing  a  single  gateway  to  consult  databases  and  tools  to 
improve the management of agricultural land and forests. These measures are expected to enable 
savings on inputs and the reduction of farm-related greenhouse gas emissions. The plan is also 
expected  to  contribute  to  the  digitalisation  of  justice,  particularly  regarding  the  electronic 
communication  between  courts/prosecution  and  the  parties.  For  example,  targeted  investment 
will create or upgrade videoconferencing and associated audio equipment for courts and build a 

58 

 
 
virtual  assistant  at  the  Supreme  State  Prosecutor’s  Office.  This  would  contribute  to  further 
improving the quality of the justice system, including access to justice. 

The  plan  includes  investments  to  boost  connectivity  in  areas  where  there  is  currently  no 
broadband infrastructure and where this infrastructure  is unlikely to be developed in the 
near future (‘white areas’), with an allocation of EUR 30 million. This sum is part of a larger 
effort to ensure broadband connectivity for at least 8 500 households in white areas. Connectivity 
initiatives are crucial to ensure that all citizens can access basic services online and benefit from 
an  enriched,  accessible  and  secure  digital  space,  thus  preventing  social  exclusion.  This 
investment will ensure digital connectivity for households. Over the long term, this is expected to 
strengthen the economic (cost-efficiency, increased productivity and competitiveness) and social 
(contribution  to  the  creation  of  a  digital  society)  dimensions  and  territorial  cohesion  by 
increasing resilience and reducing disparities between regions, local  communities and different 
groups of population. In addition, the plan also proposes the creation of 40 publicly owned long-
distance and optical R&D network connections with transmission speeds of 100 Gbps. This will 
ensure high-speed  and reliable optical  connections for at  least  75% of all  connections between 
public institutes in the Academic and Research Network of Slovenia. The plan also proposes to 
set up two data centres to store data, thus making research data more accessible. Moreover, 228 
educational  organisations  shall  be  connected  to  optical  connections  above  1Gbps  reaching 
40 000 pupils.  

The plan will also ensure interoperability, more efficient management and better safety by 
digitalising  rail  and  road  transport.  Investments  in  European  Train  Control  System  (ETCS) 
will ensure the interoperability of the Slovenian railway system with the European rail network. 
This will improve the capacity of the rail network, increase the permeability of the rail network 
and the safety of rail, reduce the burden on drivers and also reduce travel times. By digitalising 
road infrastructure, the plan will integrate modern IT to increase transport safety and fluidity and 
the efficiency of road transport. 

The plan has a particular focus on e-health by proposing fast access to high-quality data in 
healthcare.  This  will  primarily  be  ensured  by:  (i)  integrating  new  digital  services  into 
healthcare;  (ii) promoting the use of information technology to  communicate with  patients  and 
stakeholders;  (iii)  introducing  quality  monitoring  based  on  real-time  data;  (iv)  improving 
capacity and patient-management planning; and (v) improving the planning of hospital facilities, 
medical services and material requirements. The importance placed on the transformation of the 
health  system  is  accompanied  by  a  sizeable  allocation  of  funding  (EUR  83  million)  to  this 
investment. 1 500 doctors are expected to have access to the new digital e-health system. 

Improving  skills  is  a  key  focus  for  digitalisation  in  the  plan,  with  significant  measures  to 
support  digital  skills  development.  These  measures  are  discussed  further  in  the  two  bullet 
points below.  

  The plan addresses the development of digital skills in the public administration. In 
particular,  component  C2K2  “Digital  transformation  of  the  public  sector  and  public 
administration”  proposes  the  creation  of  a  competence  centre,  which  will  contribute  to 

59 

 
 
the  strategic  approach  to  skills  management  and  act  as  a  training  centre  for  the  public 
sector.  The  underpinning  investment  will  support  200  training  sessions,  40  specialised 
sessions  and  8  new  e-training  sessions  per  year.  The  centre  will  aim  for  40 000 
participants including 1 000 IT specialists trained by 2026. Its aim will be to increase: (i) 
information  literacy;  (ii)  online  communication  and  collaboration;  (iii)  digital  content 
creation; (iv) security; (v) digital skills for management; and (vi) methods and techniques 
for decision support in the public administration.  

  On  the  digital  skills  of  the  wider  population,  Slovenia  has  a  strong  focus  on 
strengthening  digital  skills  throughout  the  whole  educational  system,  including 
reducing  the  digital  divide  in  terms  of  connectivity  of  schools.  Under  component 
C2K2, Slovenia will develop 12 new IT solutions for: (i) digitalised curricula; (ii) e-home 
reading;  (iii)  project-based  learning;  (iv)  e-national  examination  including  electronic 
examination  for  testing  students’  digital  skills;  (v)  sport  for  all  platforms  (providing 
information for sports recreation programmes for citizens); (vi) citizens’ rights in sports 
platforms  (a  record  of  technically  qualified  and  professionally  educated  workers  and 
athletes);  (vii)  training  programmes  in  remote  sport  platforms  (digital  solutions  for 
accreditation); (viii) user-friendly sport infrastructure (overview of the public and private 
sport infrastructure platform); (ix) learning analytics (analysing data generated by digital 
teaching);  (x)  an  application  to  motivate  pupils;  and  (xi)  an  application  to  improve  the 
employability of VET graduates, (xii) an application for systemic improvements and the 
development  of higher education (called Record 2.0). Comprehensive transformation  of 
digital education includes several measures under component C3K5 to train professionals 
in  education,  and  various  projects  on  educational  establishments  to  support  updated 
teaching  practices  (study  development,  development  of  ordinary  buildings  and  e-
buildings, examples of good practice, etc.). This will be underpinned by two reforms to: 
(i)  modernise  the  curricula  for  digital  skills  development;  and  (ii)  create  digitally 
equipped learning places for students in pilot programmes. 

The plan also addresses investment needs in culture. On the digitalisation of culture, the plan 
is allocating almost EUR 10 million to build an e-culture platform, an e-inheritance system, and 
an upgraded system to increase the accessibility of cultural heritage (on the website e.ARH.si). 
The  plan  will  help  cultural  institutions  to  use  dynamic  e-services  (such  as  development  and 
management of an e-platform for books, theatre, visual arts, media, design, architecture, music, 
multimedia and film) and specific IT solutions are expected to deliver more digitalised archives. 
The  plan  will  also  seek  to  integrate  high-quality  e-content  into  the  European  digital  library 
Europeana.  

Slovenia intends to be part of four digital multi-country projects. As a signatory of several 
declarations at EU level, Slovenia reaffirms its commitments to develop advanced technologies 
and contribute to cross-border collaboration between Member States in the digital domain. Two 
of  the  projects  Slovenia  is  participating  in  may  take  shape  of  planned  Important  Projects  of 
Common  European  Interest  (IPCEIs)  in  the  areas  of  ‘Next-generation  cloud  infrastructure  and 
services’  and  ‘Low-power  processors  and  semiconductor  chips’.  These  projects  aim  to:  (i) 
develop and firstly industrially deploying the next generation of data processing (cloud and edge) 

60 

 
 
infrastructure  and  services;  and  (ii)  initiate  at  least  3  projects  in  microelectronics.  In  addition, 
Slovenia  is  directing  several  investments  to  the  European  Blockchain  Service  Infrastructure 
(EBSI),  which  will  support  the  opening  of  a  larger  number  of  EBSI  nodes  for  additional 
needs/services  at  national  level.  The  European  quantum  communication  infrastructure  is  the 
fourth  multi-country  project  aiming 
to  establish  a  national  quantum  communication 
infrastructure network connected to the national networks of neighbouring countries and a space 
segment linking optical ground stations in Member States via satellites. The aim of the project is 
to ultimately ensure the connection of dedicated satellites to other national networks across the 
EU and worldwide.  

Lasting impact 

The digitalisation reforms and investments proposed by Slovenia are mutually reinforcing 
and  balanced  and  are  expected  to  increase  the  country’s  competitiveness.  Slovenia  is 
expected to be able to boost the efficiency of the economy and maximise the use of digitalisation 
potential  by:  (i)  accelerating  the  use  of  advanced  technologies  in  business  processes;  (ii) 
adjusting  to  market  needs;  (iii)  increasing  consumer  safety;  (iv)  using  innovation-procurement 
guidelines;  and  (v)  creating  a  digital  identity  for  companies.  Reforms  and  investments  in  the 
public  administration  are  expected  to  help  provide  the  public  with  user-centric,  accessible  and 
interoperable  e-services  through  the  use  of  eIDs.  Measures  targeting  several  sectors  (such  as 
agriculture and forestry, justice, culture, health, spatial planning, and internal security) should in 
turn  bring  the  necessary  changes  for  the  comprehensive  modernisation  of  the  public 
administration.  The  efficiency  gains  resulting  from  the  digitalisation  of  the  administration  are 
expected to  have a lasting impact  beyond the lifetime of the Recovery and Resilience Facility. 
The  plan  goes  beyond  acquiring  IT  equipment  and  adjusting  the  legislative  framework.  The 
important  underlying  measures  that  will  be  key  for  unlocking  long-lasting  effects  are  those 
measures focused on skills and connectivity. These two elements are the essential backbone for 
ensuring that both the public sector and businesses are ready to absorb the investments proposed 
under the plan.  

Overall assessment 

Taking  into  consideration  the  assessment  of  all  the  measures  envisaged,  the  recovery  and 
resilience  plan  is  expected,  to  a  large  extent,  to  make  a  significant  contribution  to  the  digital 
transition or to address the challenges resulting from it and ensures that at least 20% of its total 
allocation  contribute  to  support  digital  objectives.  This  would  warrant  a  rating  of  A  under 
criterion 2.6 of Annex V of the RRF Regulation. 

4.7. Lasting impact of the plan  

Structural change in administration and institutions  

The  implementation  of  the  reforms  envisaged  in  the  recovery  and  resilience  plan  is 
expected  to  bring  about  structural  changes  to  the  public  administration,  improving  its 
effectiveness  and  efficiency.  The  adoption  of  the  civil-service  management  strategy  and  the 
reform of civil-service legislation will help modernise the human-resources-management system 

61 

 
 
in the Slovenian public administration. A skills centre will be set up to provide training for staff 
and to introduce a standardised skills-assessment system for public servants. Efforts will also be 
made to strengthen the digital awareness and skills of civil servants. In addition, the introduction 
of a new public-sector wage system is expected to improve the quality of staffing and its overall 
performance, while preserving the fiscal sustainability of the system.  

The  plan  will  foster  private  investment  and  further  improve  the  provision  of  services  to 
businesses  and  the  public.  Building  on  the  public  consultations  and  efforts  of  the  Strategic 
Council  for  Debureaucratisation,  several  measures  aimed  at  simplifying  existing  laws  and 
procedures  are  set  to  be  adopted.  Reform  efforts  will  also  focus  on  better  management  of 
national and municipal spatial planning. To this end, the planned amendment of the Construction 
Act and the Spatial Planning Act aim at digitalising the key spatial-data systems and simplifying 
the  procedures  for  obtaining  construction  permits.  Furthermore,  the  provision  of  public  e-
services  for  citizens  and  businesses  will  be  improved,  for  example  by  setting  up  a  national  e-
identity system. 

A number of measures will help to modernise the public-procurement system in Slovenia. 
The  Public  Procurement  Academy  should  raise  the  level  of  professionalisation  of  the  staff 
working in the field, while some procurement procedures will be simplified and the existing IT 
systems  upgraded.  To  promote  green  and  innovative  procurement  and  increase  competition  in 
the system, amendments to the Public Procurement Act are set to be adopted in 2021. Technical 
assistance will support reforms in this area and help assess progress after implementation. 

Several  reforms  and  investments  in  the  plan  contribute  to  the  digitalisation  of  public 
administration.  Slovenia  plans  to  adopt  the  strategy  for  the  development  of  digitalisation  of 
public  administration  and  to  set  up  the  Informatics  Development  Council.  This  should  ensure 
that all the IT development activities in the State administration (including investment projects, 
technical standards and solutions deployed in the public sector) are coherent and cost-efficient. 
The  implementation  of  the  national  cybersecurity  strategy  is  expected  to  increase  the  level  of 
cybersecurity  in  Slovenia,  partly  by  promoting  relevant  research  and  development  and  by 
fostering cooperation between the public sector, the private sector and civil society.  

Structural change in policies  

Structural changes are also  planned in the legal framework in several  other policy areas. 
The  reforms  in  the  areas  of  renewable  energy  sources  (RES),  energy  supply,  and  energy 
efficiency will provide the enabling conditions for investments relevant for the green transition. 
Reforms  are  expected  to  facilitate  administrative  and  other  procedures  to  accelerate  the 
construction  of  some  RES  installations  by  simplifying  the  procedures  and  reducing  the  time 
needed  to  obtain  a  building  permit.  The  electricity-distribution  network  is  also  expected  to  be 
modernised to allow for the faster deployment of RES. The reforms will also promote the use of 
RES in existing district-heating systems.  

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If implemented in a timely manner, the flagship reforms of the healthcare and long-term-
care systems will provide high-quality services while ensuring fiscal sustainability. Together 
with the pension reform, these reforms should make the social security system in Slovenia much 
more  effective  in  meeting  the  country’s  needs.  The  reform  of  long-term  care  in  particular  will 
create  a  comprehensive  regime  integrating  both  healthcare  and  social-care  services,  which 
currently does not exist in Slovenia.  

Further  reform  measures  will  focus  on  supporting  productive  foreign  and  domestic 
investment.  A  law  on  forms  of  alternative  investment  funds  will  be  adopted.  This  law  will 
define  three  types  of  alternative  investment  funds  and  provide  a  predictable  legal  environment 
for their functioning. A strategy will also be drawn up to support the development of Slovenia’s 
capital markets.  

Finally,  the  reform  of  the  Social  Housing  Fund  will  address  the  long-term  financial 
sustainability  of  public-housing  funds  by  harmonising  the  levels  of  non-profit  rent.  The 
reform could be an important factor in the economic development of the construction sector. 

Lasting impact  

Overall, the  measures  included in the plan are expected to address  the root causes of the 
challenges identified and not just the symptomatic issues.  Investments and reforms included 
in the plan are complementary and can be expected to have a lasting impact (on the long-lasting 
impacts of green and digital investment, see Sections 4.5 and 4.6 above).  

Taking into consideration all reforms and investments envisaged by Slovenia in its recovery and 
resilience  plan,  their  implementation  is  expected,  to  a  large  extent,  to  bring  about  a  structural 
change  in  the  administration  and  in  relevant  policies  and  to  have  a  lasting  impact.  This  would 
warrant a rating of A under criterion 2.7 of Annex V of the RRF Regulation. 

4.8. Milestones, targets, monitoring and implementation  

Adequacy  of  the  structure  tasked  with  implementing  the  plan,  monitoring  of  progress  and 
reporting 

The arrangements and mechanisms to collect, store and report data on the milestones and 
targets  are  described  clearly  and  appear  adequate.  The  plan  clearly  identifies  the  bodies 
responsible  for  implementing  the  components.  Ministry  of  Finance,  the  Office  for  the 
Implementation of the Recovery and Resilience Plan, acting as the Coordinating Authority, will 
have the overall responsibility for monitoring and implementing the plan as a whole. It will be 
responsible for monitoring, verifying and validating the achievement of milestones and targets. 
Moreover,  the  Coordinating  Authority  will  be  responsible  for  drawing  up  and  signing  the 
management declaration, while the National Cost Coordinator will be responsible for preparing 

63 

 
 
 
payment  requests  and  submitting  them  to  the  European  Commission.  Section  4.10  lays  out 
further information on the designation of entities and the description of their respective tasks. 

Milestones, targets and indicators  

Milestones,  targets,  and  indicators  for  the  implementation  are  of  sufficient  quality  to 
ensure the effective monitoring of the recovery and resilience plan. Their number is adequate 
and meaningful, and appropriate to ensure that progress in implementing the plan can be robustly 
tracked,  while  remaining  manageable.  The  request  for  loans  is  accompanied  by  additional 
milestones and targets to measure progress in the additional reforms and investments supported. 
The  plan  therefore  generally  puts  forward  acceptable  milestones  and  targets.  A  number  of 
monitoring  steps  will  also  be  included  in  the  operational  arrangements  to  facilitate 
implementation progress. 

Overall,  the  plan’s  milestones  and  targets  are  sufficiently  detailed  and  clear.  Reforms  are 
underpinned by clear commitments, which include an appropriate level of additional qualitative 
information  to  ensure  that  the  key  policy  intentions  are  reflected.  The  reforms  are  clearly 
trackable, focusing on discrete key moments in the reform process, such as the entry into force of 
new  acts  or  amendments.  In  a  number  of  cases,  milestones  and  targets  for  reforms  include 
commitments  as  to  the  expected  results  of  the  implementation  of  reforms  on  the  ground. 
Milestones  and  targets  related  to  investments  are  unambiguous  and  precise,  and  most  of  these 
have  quantitative  targets.  These  milestones  and  targets  successfully  highlight  key  moments  for 
the delivery of the expected output, such as the award of contracts following a call for tender, the 
completion of projects, or the entry into operation of infrastructure.  

The set of milestones and targets presented strikes an appropriate balance between realism 
and  ambition.  The  focus  is  clearly  on  output  indicators,  and  the  timeline  envisaged  is 
appropriate for their delivery and execution. For reforms, the key milestones and targets present 
sufficient  assurances  that  key  elements  from  country-specific  recommendations  will  be 
appropriately reflected while taking into account the need to: (i) ensure appropriate consultation 
of  stakeholders;  and  (ii)  develop  quality  legislation  and  measures.  For  investments,  the 
commitments  envisaged  would  meaningfully  contribute  towards  addressing  the  key  challenges 
identified, while taking  due account  of:  (i) the level  of complexity;  and  (ii) in  many cases, the 
need  to  complete  public-procurement  procedures.  For  both  reforms  and  investments,  the 
milestones  and  targets  selected  are  generally  consistent  with  long-term  objectives,  which  are 
further enshrined in the descriptions provided for each measure. 

The sequencing of milestones and targets is sufficiently regular to enable payments and to 
allow progress to be monitored. In general, larger investments and significant reforms follow a 
lifecycle  approach  that  ensures  that  their  progress  through  key  stages  on  the  way  to  full 
implementation is appropriately monitored. For certain reforms, this sequencing also covers: (i) 
steps leading up to  the  adoption of legislative amendments  by  the  National  Assembly; and (ii) 
steps for monitoring the actual impact of such legal changes on the situation on the ground. For 
investments,  larger  and  more  complicated  projects  are  organised  into  more  milestones  and 
targets  (the  targets  could  include  the  award  of  contracts)  or  intermediate  cumulative  targets. 

64 

 
 
Therefore, the sequencing of milestones and targets is commensurate with the importance of the 
given reform  or investment,  and this sequencing ensures that the overall number of milestones 
and  targets  remains  manageable.  All  milestones  and  targets  are  expected  to  be  reached  by  Q2 
2026, in line with the requirements of the Recovery and Resilience Facility. 

The proposed indicators linked to the achievement of milestones and targets are  generally 
relevant  and  acceptable.  They  provide  direct  or  suitable  proxy  measures  for  the  successful 
implementation  of  the  reforms  and  investments.  For  milestones,  the  qualitative  indicators 
provide  the  necessary  assurances  on  the  key  qualitative  characteristics  of  the  milestone  (for 
example, the adoption of key legislation or the award of contracts following tenders). For targets, 
quantitative  indicators  are  directly  linked  to  the  expected  outputs  and  deliverables.  These 
indicators  include,  for  example,  the  number  of  pieces  of  infrastructure  that  are  put  to  their 
intended  use  or  the  number  of  completed  projects  by  companies.  Overall,  the  indicators  are 
sufficiently granular to accurately reflect the level of ambition for each measure. 

The  data-collection  and  data-verification  mechanisms  are  generally  robust.  All  indicators 
proposed  are  under  the  control  of  the  Member  State,  which  can  realistically  be  considered 
directly  responsible  for  their  delivery.  In  each  case,  a  reporting  institution  is  identified,  which 
should ensure that collection methods are sound, reliable, and verifiable. Due attention has been 
paid  to  the availability of data-collection mechanisms to  ensure that indicators can be properly 
measured,  thereby  ensuring  their  robustness.  Verification  mechanisms  are  specified  for  each 
separate milestone and target. These mechanisms should make it possible to accurately track the 
achievement of milestones. 

Overall organisational arrangements 

Arrangements  set  up  to  devise,  negotiate  and  ensure  the  efficient  and  regular 
implementation of the plan appear credible. The authorities designated for the implementation 
of the plan are legally empowered through the Decision of the Government of 28 April 2021 and 
will be further strengthened in the National Decree, which is to be adopted by 1 September 2021. 
Moreover,  the  designated  authorities  have  adequate  administrative  capacity.  They  also  have 
sufficient knowledge and experience in: (i) similar instruments; (ii) similar development policies; 
and (iii) implementation of other EU funds. Procedures are in place to ensure that adequate staff 
are available at all levels. Section 4.10 provides further details on the designation of authorities, 
their respective tasks and description of the internal control systems. 

Overall assessment 

The  arrangements  proposed  by  Slovenia  in  its  recovery  and  resilience  plan  are  expected  to  be 
adequate to ensure effective monitoring and implementation of the recovery and resilience plan, 
including the envisaged timetable, milestones and targets, and the related indicators. This would 
warrant a rating of A under the assessment criterion 2.8 of Annex V of the RRF Regulation. 

4.9. Costing  

Slovenia  has  provided  individual  estimated  costs  for  all  investments  and  reforms  in  the 
recovery  and  resilience  plan.  Slovenia  has  provided  clear  and  sufficient  information  and 

65 

 
 
evidence to consider that costs are reasonable and plausible, as the amounts are appropriate and 
in  line  with  the  nature  and  type  of  envisaged  investments.  For  all  investments  and  reforms, 
calculations behind the cost estimates are provided, and for the majority, comparative cost data is 
provided. For demand-driven measures (such as investments in decarbonisation and productivity 
of  companies,  support  for  RDI,  business  digitalisation  investments),  a  milestone  or  target 
covering  the  full  budgetary  execution  has  been  included,  providing  further  reassurance  with 
regards to the cost estimates. 

Evidence  was  provided  establishing  the  eligibility  of  the  costs.  All  costs  are  incurred  after 
February 2020 and do not substitute recurring national budgetary expenditure. Value added tax 
has been excluded from  the calculations behind  all measures.  In certain  limited cases, the plan 
includes  labour  costs  for  temporarily  recruited  civil  servants  whose  work  is  essential  to  the 
successful  implementation  of  investments  and  reforms,  such  as:  (i)  digitalisation  of  the  public 
service;  (ii)  organisation  of  R&D  investments;  (iii)  education;  and  (iv)  healthcare.  Slovenia 
provided  reassurances  that  all  such  recruitment  is  temporary.  Cost  estimates  are  generally 
detailed and well-substantiated and based on a variety of sources. The template tables are filled 
in with the basic costing information on the methodology and on budgetary implications.  

Reasonable costs 

Cost estimates for most of the measures in the plan are reasonable.  In most cases, the cost 
estimates  are  presented  clearly  and  are  appropriate  for  the  specific  reforms  and  investments. 
They  are  sufficiently  clear  and  understandable,  although  the  level  of  details  provided  varies 
between  measures.  It  is  clear  from  the  document  and  its  annexes  how  Slovenia  calculated  the 
amount  estimated.  The  underlying  assumptions  behind  the  cost  estimates  are  generally  sound, 
although  in  certain  cases  they  could  be  justified  better  or  more  clearly.  On  occasions,  when 
deriving costs from similar projects adjustments made are not fully explained.  Slovenia did not 
provide an independent validation for any of the cost estimates proposed. 

Plausible costs 

The  estimated  total  costs  of  the  plan  are  in  line  with  the  nature  and  the  type  of  the 
envisaged  reforms  and  investments.  Slovenia  has  provided  an  extensive  collection  of 
documents  that  broadly  substantiate  the  cost  estimates:  studies,  reports,  and  calculation  sheets. 
Slovenia has provided information on the cost of similar reforms and investments that have been 
carried  out  in  the  past  whenever  possible.  However,  for  a  limited  number  of  investments 
underlying  evidence  is  not  provided,  although  in  certain  cases  these  are  pilot  or  innovative 
projects without obvious relevant precedents. Comparative cost data for the main cost drivers of 
the  proposed  reforms  and  investments  have  been  made  available  for  the  large  majority  of 
measures,  although  at  occasion  the  relevance  of  supporting  documentation  could  be  further 
justified.    The  estimated  cost  of  proposed  reforms  and  investments  is  in  line  with  –  and 
consistent with – similar reforms/investments, including those funded by other EU programmes 
if  available.  For  certain  investments,  while  costs  remain  plausible,  they  are  in  the  high  range 
compared to the costs of similar past investments.   

66 

 
 
Cost  estimates  are  generally  plausible,  taking  into  account  the  limits  of  an  ex-ante-based 
assessment  of  cost  estimates.  The  output  targets  provided  in  the  plan  for  investment  are 
commensurate with the costing justifications and assumptions provided. 

No double EU financing 

Slovenia has provided information on whether parts of the proposed measures are covered 
or planned to be covered by other EU financing. In the few cases where other EU financing is 
involved,  Slovenia  has  provided  information  on  the  name  of  the  instruments,  the  amounts 
covered  or  expected  to  be  covered,  and  a  clear  description  of  which  parts  of  the  measures  are 
expected to be covered. These amounts are clearly identified in the standard tables. Slovenia has 
given assurances that the costs that are expected to be covered by other EU financing have been 
taken  out  of  the  cost  calculation.  If  other  EU  financing  is  planned,  there  is  a  clear  delineation 
between the elements of the measures covered by RRF and those covered by EU financing. The 
description of the audit and control system will provide an assurance that the same costs will not 
be financed from different sources (see Section 4.10 Adequacy of arrangements to avoid double 
EU funding). 

Commensurate and cost-efficient costs 

The recovery and resilience plan is expected to effectively help address a significant subset 
of  challenges  identified  in  the  country-specific  recommendations.  As  discussed  in  Sections 
4.1 and 4.3, the plan contains measures to support economic growth and economic cohesion in 
an  inclusive  manner.  In  particular  this  means  addressing  the  weaknesses  of  the  Slovenian 
economy,  boosting  its  growth  potential,  stimulating  job  creation,  and  mitigating  the  adverse 
effects of the crisis. Several of these measures also contribute effectively to the implementation 
of the European Pillar of Social Rights, including through the promotion of policies for children 
and young people.  The control and audit system to be in place for RRF-related spending and the 
public procurement system in Slovenia will further support the objective of cost-efficiency. 

It is deemed that the costs of the plan are commensurate to its economic and social impact.  

Overall assessment 

The justification provided by Slovenia on the amount of the estimated total costs of the recovery 
and resilience plan is to a medium extent reasonable, plausible, in line with the principle of cost-
efficiency and is commensurate to the expected national economic and social impact.  

Slovenia provided sufficient information and evidence that the amount of the estimated cost of 
the reforms and investments of the recovery and resilience plan to be financed under the Facility 
is not covered by existing or planned Union financing. This would warrant a rating of B under 
the assessment criterion 2.9 of Annex V of the RRF Regulation.  

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4.10. 

Controls and audit  

The  Commission  has  assessed  the  systems  planned  to  be  put  in  place  in  time  for 
disbursements  as  adequate.  Finalisation  of  the  legal  and  institutional  framework  is  pending 
until Slovenia has: (i) set up the Office for the Implementation of the RRP (which will operate 
until  1 August 2021)  to  act  as  the  coordinating  authority;  (ii)  adopted  the  National  Decree  and 
the Guidelines of the Coordinating Authority and other entities; and (iii) finalised upgrades to the 
uniform accounting system of the Ministry of Finance’s MFERAC IT system29. These measures 
are  spelled  out  in  a  dedicated  milestone  in  the  Council  Implementing  Decision.  The  National 
Decree  and  the  Guidelines  of  the  Coordinating  Authority  and  other  entities,  which  are  to  be 
adopted by 1 September 2021, will cover the following rules and procedures: 

• 

• 
• 
• 
• 

• 

• 

procedures for carrying out audits and controls to ensure compliance with applicable 
EU and national legislation;   
verification of milestones and targets and associated reporting deadlines;   
procedures for reimbursement of unduly spent EU funds;   
an anti-fraud strategy;   
a system  for  reporting on detected irregularities  and suspected fraud, and additional 
measures to contribute to managing the risk of fraud;   
specific provisions on the guidelines to ensure coherent work for ministries and other 
implementing institutions, with a clear delineation of the use of funds from different 
EU sources;   
detailed  description  of  the  functions  of  the  internal  organisational  units  in  the 
supporting  ministries  and  mutual  relations  between  the  authorities  involved  in  the 
implementation of the plan. 

The MFERAC IT-system upgrades  are to be finalised by 1 September 2021. The upgrades 
include currently missing fields for data encoding, verification and reporting of milestones and 
targets. The system will enable monitoring and reporting on the plan. It will also generate data 
for the preparation of payment claims. The review phase of the data fields is currently underway. 
Data from indirect budget users, agencies and other bodies that do not have access to MFERAC 
will be sent by the leading ministries in Excel tables, which will be imported into MFERAC in 
such  a  way  that  all  necessary  information  is  made  available  in  one  place.  All  necessary  IT 
support will be provided by the National Cost Coordinator, which is the certifying authority for 
the  implementation  of  European  cohesion  policy  and  has  more  than  15  years  of  experience  in 
providing a computerised audit trail in this area. 

Robustness of internal control system and distribution of roles and responsibilities 

The  Slovenian  set-up  of  the  internal-control  system  as  described  in  the  plan  is  based  on 
existing  processes  and  structures.  In  its  Decision  of  28 April 2021  submitted  along  with  the 

29 Ministrstvo za Finance - Enotni Racunovodski Sistem.  

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plan, the government formally designated the authorities involved in the implementation of the 
plan. The designated authorities are: (i) the Office for the Implementation of the Recovery and 
Resilience Plan, designated as the Coordinating Authority; (ii) the Budget Supervision Office of 
the Republic of Slovenia, designated as the National  Audit  Authority;  and (iii) the Ministry of 
Finance’s  Department  for  the  Management  of  EU  Funds,  designated  as  the  National  Cost 
Coordinator.  The  Coordinating  Authority  and  the  National  Audit  Authority  are  both 
organisationally  and  functionally  separate  bodies  within  the  Ministry  of  Finance.  The  National 
Costing Coordinator is a department of the Ministry of Finance. The structures also include the 
supporting ministries that are involved in the implementation of the plan.  

The  Coordinating  Authority  has  yet  to  be  legally  created.  In  the  Decision  of  28  April,  the 
government tasked the Ministry of Public Administration with preparing by 1 June 2021, and in 
consultation  with  the  Ministry  of  Finance,  an  amendment  to  the  Decree  on  Bodies  within 
Ministries.  This  amendment  will  make  it  possible  to  create  a  new  body  within  the  Ministry  of 
Finance,  serving  as  the  Coordinating  Authority  for  the  implementation  of  the  plan.  The  body 
itself is to be set up by 1 August 2021 at the latest. The adoption of the National Decree and the 
Guidelines of the Coordinating Authority and upgrade of the central IT system MFERAC by 1 
September 2021 is captured by a dedicated milestone in the Council Implementing Decision. 

Among  other  tasks,  the  Coordinating  Authority  will  be  responsible  for  the  monitoring, 
verification  and  validation  of  the  achievement  of  milestones  and  targets.  It  will  also 
implement controls and control measures at the level of ministries and beneficiaries involved in 
the  implementation  of  the  plan.  The  Coordinating  Authority  will  also  prepare  and  sign  the 
management  declaration.  The  National  Audit  Coordinator  will  be  responsible  for  carrying  out 
audits  and  preparing  summaries  of  audits  to  accompany  payment  requests.  Among  its  other 
tasks,  the  National  Cost  Coordinator  will  be  responsible  for:  (i)  making  payments  at  national 
level;  (ii)  preparing  requests  for  advance  payment;  (iii)  preparing  requests  for  payment  and 
submission  to  the  European  Commission;  (iv)  carrying  out  checks  in  connection  with  the 
preparation of payment requests; and (v) providing extracts from the MFERAC IT system.  

Audits by the National Audit Coordinator will be conducted by sampling based on a risk 
assessment  and  an  audit  strategy.  The  audit  coordinator  will  verify  that  the  expenditure 
included  in  the  payment  application  to  the  European  Commission  is  carried  out  in  accordance 
with  the  RRF  Regulation  and  draw  up  a  summary  of  conducted  audits.  The  frequency  and 
coverage of the checks will be proportionate to the size of the financial support to the measures 
and  to  the  level  of  risk  identified  by  the  National  Audit  Coordinator.  The  Budget  Supervision 
Office has established working procedures in place in its procedural manuals on audit work.  It 
also  has  a  risk  register,  which  is  updated  at  least  once  per  year.  The  risk  register  will  be 
complemented with the tasks to be carried out in the plan.  

The responsibility for ensuring an adequate audit trail lies with all stakeholders involved in 
the  implementation  of  the  plan.  An  audit  trail  will  be  ensured  for  each  project  at  all  levels. 
Documentation  will  also  be  kept  for  each  project,  and  this  documentation  will  be  available  to 
relevant national authorities as well as the European Commission, OLAF, the European Court of 
Auditors  and  the  European  Public  Prosecutor’s  Office.  The  designation  of  authorities  and  the 

69 

 
 
description  of  their  tasks  ensures  the  clear  identification  of  the  bodies  responsible  for  controls 
and the segregation of their functions from  the  bodies involved in  implementing the measures. 
The authority responsible for audit is also clearly identified and its independence ensured. 

Adequacy of control systems and other relevant arrangements 

Arrangements and mechanisms to collect, store and make available data on final recipients 
are  clearly  described  and  adequate.  The  data  will  be  centrally  managed  in  the  MFERAC  IT 
system, which, in addition to the financial flows, will also ensure the monitoring and reporting 
on the projects of the recovery and resilience plan. The system enables the overall monitoring of 
aggregated  data.  The  line  ministries  will  collect  data  for  audits  and  controls  and  for  providing 
comparable information on the use of funds in line with the RRF Regulation. This will include 
data on final recipients, contractors, subcontractors, and beneficial owners. It will also include a 
list  of  all  measures  under  the  plan.  The  collected  data  will  be  accessible  by  national  and  EU 
supervisory institutions. The accessibility of data will also be laid down in the National Decree. 
The Coordinating Body will be responsible for ensuring accessibility. 

Risk  management  covers:  (i)  the  internal-control  environment;  (ii)  risk  management;  (iii) 
control  activities;  (iv)  information  and  communication;  (v)  training;  and  (vi)  supervision. 
Together, these components can prevent fraud, corruption, conflict of interest etc.  

Slovenia intends to use different risk-assessment tools including the ARACHNE tool, made 
available by the European Commission, for internal control and risk prevention. The other 
tools  that  will  be  used  for  this  purpose  are  GVIN  (an  analytical  tool  for  detailed  market 
monitoring), ERAR (the national  registry of public entities’ transactions);  and (iii) AJPES  (the 
national business register).    

For  preventing/detecting  fraud,  corruption  and  conflicts  of  interest,  the  authorities  will 
implement  procedures  to  manage  various  risks  and  give  guidance  for  this  purpose. 
Identified  business  risks  are  recorded  in  the  risk  register,  which  contains  a  description,  a  risk 
assessment,  an  action  to  address  the  risk,  and  a  responsible  person.  All  ministries  in  Slovenia 
have a risk register in place. The risks  are defined by reference to the tasks or activities of the 
individual internal organisational units of the government bodies. The risk register is updated at 
least  once  per  year,  or  whenever  major  organisational  changes  occur.  Furthermore,  the  bodies 
involved in  implementing the plan  are  required to  comply with  the legislation on integrity and 
prevention  of  corruption  and  other  relevant  rules.  Under  the  Public  Finance  Act,  all  ministries 
also  have  an  internal  audit  service,  which  is  responsible  for  identifying  fraud  and  suspected 
fraud.  The  systems  in  place  for  internal  control  and  risk  prevention  consist  of:  (i)  appropriate 
checks;  (ii)  training  of  staff;  (iii)  sufficient  use  of  appropriate  risk-assessment  tools;  (iv)  the 
development of procedures to prevent, detect, and correct suspected fraud and irregularities; (v) 
the  development  of  an  integrity  plan;  (vi)  a  code  of  ethics  for  the  civil  service;  and  (vii)  staff 
experience.  

Authorities have put in place integrity plans to identify: (i) risks; (ii) the severity of risks; (iii) 
risk-prevention  measures;  and  (iv)  risk-management  policies.  In  addition,  the  Coordinating 
Authority will prepare an anti-fraud strategy by 1 September 2021. The purpose of the strategy 

70 

 
 
will  be  to  set  up  a  legal,  institutional  and  operational  framework  to  effectively  and  efficiently 
fight  fraud  in  the  implementation  of  the  plan.  The  main  focus  of  the  strategy  will  be  on  the 
prevention, deterrence, detection and reporting of fraud and corruption.  It will also incorporate 
DG OLAF’s guidelines, which refer to: (i) national anti-fraud strategies and assessment of fraud 
risk; and (ii) effective and proportionate anti-fraud measures. 

In  addition  to  the  anti-fraud  strategy,  all  bodies  involved  are  also  preparing  and 
implementing  additional  measures  to  help  manage  the  risk  of  fraud  and  respond  to 
detected  fraud.  This  includes  a  self-assessment  of  risks  by  each  ministry.  The  Integrity  and 
Prevention  of  Corruption  Act  obliges  all  public  bodies  to  draw  up  an  integrity  plan,  which  is 
notified to the Commission for the Prevention of Corruption. The law also requires: (i) the use of 
anti-corruption clauses in public-procurement contracts; and (ii) the reporting of assets of public 
officials managing public contracts. All state authorities, public organisations and public officials 
are obliged to report any discovered offences. 

For the correction of fraud, corruption and conflicts of interest, the information provided 
by  the  European  Commission  on  the  list  of  indicators  (‘red  flags’),  in  the  context  of  EU 
cohesion policy, will be taken into account by the Coordinating Authority. This information 
will  be  used  by  the  Coordinating  Authority  when  it  is  drawing  up  the  guidelines  for  all 
authorities involved in the implementation of the plan. The Coordinating Authority will develop 
the  procedures  for  reporting  on  irregularities  by  individual  ministries  and  it  will  monitor  any 
corrective actions. A register of detected irregularities will be kept as part of risk management. 
The National Decree will formalise the reporting on detected irregularities, suspected fraud and 
fraud. When reporting on the achievement of milestones and targets, the leading ministries will 
also report on any irregularities detected and suspected fraud. In addition, any person can report 
suspected fraud at any time to the national and European contact point already in place.  

The National Audit Coordinator is also tasked with reporting irregularities and suspected 
fraud  to  OLAF.  In  doing  so,  the  National  Audit  Coordinator  will  be  guided  by  the 
recommendations  of  the  European  Commission.  The  supporting  ministries,  the  Coordinating 
Authority  and the National  Audit  Coordinator are jointly responsible for  verifying whether the 
corrective measures were taken.  

In  addition,  Slovenia’s  Interdepartmental  Working  Group  on  Cooperation  with  OLAF 
already coordinates the sending of information on detected irregularities in the use of EU 
funds.  The  working  group  includes  representatives  of  the  Ministry  of  Finance  (including  the 
Budget Supervision Office), the Public Prosecutor’s Office, the Commission for the Prevention 
of  Corruption,  the  Ministry  of  Justice,  the  Ministry  of  Interior,  the  Agency  for  Agricultural 
Markets  and  Rural  Development,  and  the  Government  Office  for  Development  and  European 
Cohesion Policy.  

Overall, the strategic objective will be achieved through: (i) strengthening the ethical culture 
of  fraud  prevention;  (ii)  improving  the  management  of  fraud  risk  in  the  implementation  of  the 
plan;  (iii)  ensuring  effective  supervisory  and  control  systems;  and  (iv)  improved  cooperation 

71 

 
 
with  the  authorities  responsible  for  the  detection,  investigation  and  prosecution  of  fraud  in  the 
implementation of plan. 

Based on the abovementioned observations, the plan seems to be in line with the assessment 
guidelines for anti-fraud measures. The plan provides for the collection, storage and making 
available of data on all categories of data mentioned in Article 22 of the RRF Regulation (final 
recipients,  etc.).  Furthermore,  the  plan  includes  a  general  description  of  measures  to  prevent, 
detect, investigate, and correct serious irregularities, including by reporting suspicions to national 
investigative/prosecution  authorities  and  OLAF.  The  European  Public  Prosecutor  Office 
contributes to the protection of the Union's financial interests, requiring also a swift finalisation 
of  the  procedure  for  appointing  European  Delegated  Prosecutors  to  the  European  Public 
Prosecutor Office.  

Adequacy of arrangements to avoid double EU funding 

The plan adequately describes the systems in place to ensure avoidance of double funding 
from  the  RRF  and  other  EU  financial  instruments.  Double  funding  will  be  checked  before 
payments  from  the  national  budget  are  made,  or  when  checks  are  carried  out.  At  that  stage  it 
must be verified whether there is double funding from other EU or national funds or any other 
sources  of  funding.  The  occurrence  of  double  funding  will  be  checked  at  the  project-selection 
stage by means of  a declaration by the beneficiary. A controller in  the Coordinating Authority 
will  also  check  the  possibility  of  double  funding  during  implementation.  This  check  will  be 
based  on:  (i)  signed  declarations  by  the  beneficiary;  (ii)  the  adequacy  of  the  beneficiary’s 
separate  accounts  to  monitor  implementation;  (iii)  available  data  in  the  IT  systems  MFERAC, 
ARACHNE,  GVIN  and  ERAR;  and  (iv)  a  list  of  projects  at  higher  risk  of  double  funding 
identified by the responsible ministry.  

The  IT  system  MFERAC  will  also  provide  another  layer  of  control  to  check  for  double 
funding. Each project in the system will be recorded with a unique code that is used uniformly 
regardless of the source of funding. Each project has its own group of budget lines showing the 
source of funding. Payment from the state budget will be made from the budget lines indicated in 
the project. This means that a project cannot be financed from different sources. If a project were 
to  be financed from different  sources, it would be divided into sub-projects,  each with  its own 
financing plan and budget lines. The arrangements to detect and avoid double funding from the 
RRF and other EU funds are clearly described. Moreover, the arrangements prove sufficient and 
adequate to exclude the possibility of double funding. 

Legal empowerment and administrative capacity of control function 

The designated authorities are legally empowered through the Decision of the Government 
of 28 April 2021. This will be further confirmed in the National Decree, which will formalise the 
audit and control systems mentioned above.  

The  Ministry  of  Finance  (fulfilling  in  three  different  units  the  roles  of  Coordinating 
Authority,  National  Audit  Coordinator  and  National  Costing  Coordinator)  has  adequate 
in:  (i)  similar  instruments;  (ii) 
administrative  capacity,  knowledge  and  experience 

72 

 
 
development  policies;  and  (iii)  implementation  of  other  EU  funds.  Procedures  are  in  place  to 
ensure that adequate staff are available at all levels. Posts are defined in the Act on the Internal 
Organisation and Classification of Posts in the respective bodies and in the Catalogue of Posts. 
The  organisational  charts  and  a  detailed  description  of  the  functions  of  units  in  ministries  and 
other bodies are given in the descriptions of the management and control systems for these units. 

Moreover,  if  it  proves  necessary,  recruitment  of  additional  staff  is  planned  to  ensure  proper 
implementation  of  the  plan.  The  authorities  may  also  contract  appropriate  external  experts  to 
perform certain tasks. 

Overall assessment 

The arrangements proposed by Slovenia in the recovery and resilience plan to prevent, detect and 
correct  corruption,  fraud  and  conflicts  of  interest  when  using  the  funds  provided  under  the 
Facility, including the arrangements aimed to avoid double funding from the Facility and other 
Union programmes, are assessed to be adequate.  

This  would  warrant  a  rating  of  A  under  the  assessment  criterion  2.10  of  Annex  V  of  the  RRF 
Regulation.  

4.11. 

Coherence  

The recovery and resilience plan presented by Slovenia is structured around four coherent 
clusters,  which  contribute  to  the  common  objectives  of  the  Facility.  The  wide  range  of 
measures will support the recovery of Slovenia’s economy and strengthen its resilience against 
future shocks. The plan includes important reforms to close the generational gap and further the 
green and digital transition, providing for sustainable and inclusive growth. Each cluster is built 
around  components  including  consistent  packages  of  both  reforms  and  investments,  pursuing 
complementary aims and mutually reinforcing measures. 

Mutually-reinforcing measures 

The first cluster, which aims to decarbonise the economy, includes a subset of measures on 
energy efficiency, sustainable mobility and the circular economy. This subset of measures are 
expected to contribute to achieving both the objectives of the National Climate Plan by 2030 as 
well as the EU’s goal for climate neutrality by 2050. It covers a wide range of investments that 
will  increase  the  use  of  renewable  energy  sources.  This  is  backed  by  two  interlinked  reforms, 
which  will  effectively  reduce  barriers  to  the  deployment  of  renewable  energy  and  ultimately 
increase  the  share  of  renewable  energy  sources  in  existing  district-heating  systems.  Energy 
efficiency  will  be  improved  both  through  investments  in  the  renovation  of  existing  public 
buildings  and  changes  in  the  underlying  legal  framework.  In  the  area  of  sustainable  mobility, 
Slovenia will put forward a comprehensive legal package on the use of alternative fuels and the 
public passenger-transport system, including a number of investments in rail infrastructure. The 
carbon-intensity of the transport industry is one of the main causes for Slovenia’s high level of 
greenhouse-gas emissions. The envisaged reforms and investments will therefore be crucial for 

73 

 
 
the  economy’s  shift  towards  climate  neutrality.  In  addition,  several  measures  will  enhance  the 
transition  to  a  low-carbon  circular  economy  and  contribute  to  the  mainstreaming  of  climate 
action and environmental sustainability. 

The  second  cluster,  which  aims  to  foster  the  digital  transformation,  plans  a  number  of 
complementary investments that will promote the use of new technologies in less advanced 
and more traditional industries and in the public administration. In addition, several reforms 
are expected to strengthen the long-term prospects for the digitalisation of the economy and the 
public  sector,  ultimately  increasing  Slovenia’s  digital  competitiveness.  However,  this  cluster 
goes  beyond  the  national  level.  The  European  dimension  is  reflected  in  the  cross-border  and 
multi-country projects in the areas of joint Common data infrastructure and services, blockchain, 
microelectronics, and quantum-communication infrastructure. By adopting a national strategy for 
the digital transformation of business, the measures are expected to facilitate and enhance the use 
of digital solutions. In addition, the creation of a digital identity for citizens and businesses that 
can be used for both administrative purposes and between businesses will simplify market access 
and improve transparency. Furthermore, the plan encompasses e-solutions in the area of public 
procurement, which is consistent with a reform of the public-procurement system included in the 
plan.  For  the  digital  transformation  of  the  public  administration,  the  plan  sets  out  six  reforms, 
including  measures  to  promote  e-services  and  improve  the  digital  skills  of  staff  in  the  public 
administration. With the adoption of a national digital public services strategy, Slovenia aims to 
lay  the  foundation  for  a  forward-looking  policy  framework.  This  will  be  complemented  by 
establishing a new body: the IT Development Council, which will be responsible for steering and 
coordinating the development of digital solutions in the public sector. 

The  third  cluster  aims  to  support  businesses,  among  others  the  tourism  sector,  and 
promote research and innovation. This cluster plans a balanced mix of reforms and investment 
to enhance smart, sustainable and inclusive growth. It includes investments to foster funding for 
scientific and technological research activities and stimulate investments in innovative projects, 
which will be safeguarded by: (i) reforms to improve the underlying legislative framework; and 
(ii) a new set-up for monitoring and evaluating research and innovation policies. This subset of 
measures  will  have  a  mutually-reinforcing  effect  with  clusters  1  and  2  and  will  increase  the 
efficiency and effectiveness of investments in more advanced technologies. It will also increase 
investments  contributing  to  the  decarbonisation  of  the  economy.  In  addition,  the  plan  sets  out 
coherent reforms and investments to create a business-friendly environment for investors. These 
reforms  include  legal  changes  to  reduce  administrative  barriers  and  remove  the  root  causes  of 
underinvestment,  as  well  as  legal  changes  to  improve  access  to  finance.  A  new  strategy  for 
Slovenia’s  capital  market  will  promote  alternative  products  on  the  capital  market  and 
investments  in  investment  funds.  In  addition,  the  cluster  entails  measures  to  increase  the 
resilience  of  the  tourism  industry  and  provides  for  new  solutions  for  green  tourism.  The 
investments  are  consistent  with  the  planned  reforms,  which  seek  to  modernise  the  legal 
framework and develop a medium-term strategy for cultural tourism and sustainable tourism in 

74 

 
 
Slovenia by 2028. These measures will also help Slovenia achieve its energy and climate policy 
objectives and complement the overarching green objectives of cluster 1. Furthermore, cluster 3 
includes a consistent package of reforms and investments, which will strengthen the resilience of 
the  labour  market  and  emphasise  upskilling  and  training  activities.  In  particular,  this  will 
contribute to the mainstreaming of equality and create equal opportunities for all. By increasing 
employment  among  older  people  and  creating  new  job  opportunities  for  younger  people,  the 
measures will effectively address the needs of the most vulnerable groups in Slovenian society. 
The long-term prospects of employees will be safeguarded by the preparation of a green paper on 
the future of work and an analysis of the impact of digitalisation on the Slovenian labour market. 
These measures are therefore mutually reinforcing with cluster 2. 

The fourth cluster, which aims to improve healthcare and set up a long-term care system, 
includes  important  reforms  to  ensure  high-quality,  accessible  and  financially  sustainable 
public  health  and  social  care.  The  overarching  objective  of  achieving  long-term  fiscal 
sustainability  will  also  bridge  the  generational  gap  and  ensure  sustainable  growth,  which  is  in 
line  with  component  3.  The  measures  in  the  area  of  social  security  will  reduce  the  number  of 
people at risk of poverty or social exclusion by improving the institutional and legal framework. 
Furthermore, investments providing for financing schemes for public rental housing will improve 
the situation of socially disadvantaged groups. This will be strengthened by bringing forward a 
reform of the underlying legislation on housing policy. 

Complementarity of measures 

All  clusters  in  the  plan  pursue  complementary,  consistent  and  coherent  objectives.  The 
various components complement each other and create important synergies. In particular, cluster 
1 and cluster 2 include significant interdependencies. All clusters are expected to contribute, at 
least  to  some  extent,  to  ‘greening’  the  planned  activities,  including  new  construction,  and  will 
help reduce greenhouse-gas emissions in the economy. Increasing the use of digital solutions will 
help  decarbonise  the  economy,  but  it  will  also  create  smart,  sustainable  and  inclusive  growth. 
The  digital  dimension  is  identifiable  in  all  clusters.  It  is  particularly  identifiable  in:  (i)  the 
investments  in  smart  grids,  the  promotion  of  advanced  technologies  to  stimulate  demand-
response actions in the industry, and the digitalisation of rail and road infrastructure in cluster 1; 
(ii)  the  digital  transformation  of  businesses  and  the  public  administration  in  cluster  2;  (iii)  the 
comprehensive  overhaul  of  curricula  with  green  and  digital  skills  and  increased  training  of 
workers in cluster 3; and (iv) the e-health elements in cluster 4. The focus on improving access to 
finance  in  cluster  3  will  also  foster  investments  included  in  the  green  and  digital  components. 
This is also expected to boost employment and lead to the creation of new jobs in the medium 
and  long  term.  The  social  dimension  is  therefore  coherently  addressed  in  all  four  clusters  and 
will effectively contribute to the implementation of the European Pillar of Social Rights. Overall, 
the plan will equip the next generation of Slovenes with the relevant skills and create a future-
proof  business  environment  to  ensure  the  competitiveness  of  the  Slovenian  economy  in  the 
future. 

75 

 
 
In  conclusion,  the  plan  does  not  present  inconsistencies  or  contradictions  between  the 
content  of  the  different  clusters  and  components.  Due  care  was  given  to  ensure  that 
implementation  timelines  and  reforms  and  investments  were  aligned  to  ensure  successful 
delivery of the measures. In order to promote wider coherence across instruments, notably with 
the European cohesion policy funds, a balanced territorial allocation of resources is encouraged.  

Overall assessment 

Taking  into  consideration  the  qualitative  assessment  of  all  components  of  Slovenia’s  recovery 
and resilience plan, their individual weight (importance, relevance, financial allocation) and their 
interactions,  the  plan  contains  measures  for  the  implementation  of  reforms  and  public 
investments which, to a high extent, represent coherent actions. This would warrant a rating of A 
under the assessment criterion 2.11 of Annex V of the RRF Regulation. 

76 

 
 
 
 
ANNEX  -  CLIMATE  AND  DIGITAL  TAGGING  IN  THE  RECOVERY  AND  RESILIENCE  PLAN  OF 
SLOVENIA  

Measure  
ID  

Measure/  
Sub-Measure Name  

Climate  

Digital  

Budget

(EUR 
m)  

Int. 
field  

Coeff
. %  

Int.  
field  

Coeff
. %  

C1K1.I.D  

Energy  efficient  restructuring  of  district 
systems with the use of renewable sources  

11,00  

034bis

100%

C1K1.I.E  

Production  of  electricity  from  renewable 
energy sources  

50,00   032  

100%

C1K1.I.F  

Strengthening 
network (transformer stations)  

the  electricity  distribution 

30,00   033  

100%

033  

40%  

C1K1.I.F  

Strengthening 
network (low-voltage network)  

the  electricity  distribution 

50,00   033  

100%

033  

40%  

C1K1.I.G  

Investing  in  increasing  energy  efficiency  in 
the economy  

5,00   024   40%  

C1K2.I.B  

Sustainable  renovation  and  management  of 
buildings  

58,02  

026bis

100%

C1K2.I.B  

C1K3.I.E  

C1K3.I.E  

Sustainable  renovation  and  management 
of buildings 
of 
technical building systems  

individual upgrading 

- 

10,00   026   40%  

Social  and  economic  resilience  to  climate-
related disasters in the Republic of Slovenia 
–  SLO  SERCID 
-  Construction  of 
new energy efficient buildings  

Social  and  economic  resilience  to  climate-
related disasters in the Republic of Slovenia 
–  SLO  SERCID  -  Trainings  and  awareness 
raising measures: floods  

23,42   025ter  40%  

0,34   035  

100%

77 

 
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
C1K3.I.E  

Social  and  economic  resilience  to  climate-
related disasters in the Republic of Slovenia 
–  SLO  SERCID  -  Trainings  and  awareness 
raising measures: fires  

0,34   036  

100%

C1K3.I.E  

Social  and  economic  resilience  to  climate-
related disasters in the Republic of  Slovenia 
– SLO SERCID_ICT solution  

0,91  

100%

011  

C1K3.I.F  

Climate  change  adaptation  - Reducing  flood 
risks   

310,00   035  

100%

C1K3.I.G  

Centre for  Seeds,  nurseries  and 
protection  

forest 

5,10   025ter  40%  

C1K3.I.H  

Urban waste  water discharge  and  treatment 
projects  

34,00  

041bis

40%  

C1K3.I.I  

Drinking water projects 

33,70  

039bis

40%  

C1K3.I.H  

Urban wastewater discharge  and  treatment 
projects (loans) 

20,00  

041bis

40%  

C1K3.I.I  

Drinking water projects (loans) 

20,00  

039bis

40%  

C1K4.I.C  

C1K4.I.C  

C1K4.I.C  

C1K4.I.C  

Increasing 
railway 
capacity_ Upgrading  of 
Kranj-Jesenice-d.m.  

infrastructure 
line 

the  railway 

89,13   065  

100%

railway 

Increasing 
infrastructure 
capacity_ Digitalisation of  the  railway  line 
Kranj-Jesenice-d.m.  

10,04   070   40%  

070  

100%

railway 

Increasing 
capacity_ upgrading 
of Grosuplje and Domžale railway stations  

infrastructure 

19,66   066   40%  

Increasing 
railway 
capacity_ Upgrading  of 
Brezovica – Preserje – Borovnica railway 
line  

infrastructure 
the  Ljubljana-

72,27   064  

100%

78 

 
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
C1K4.I.C  

railway 

infrastructure 
Increasing 
capacity_ Upgrading  the  Ljubljana  railway 
station  

93,00   064  

100%

C1K4.I.D  

Digitalisation 
road infrastructure_rail   

of rail 

and 

8,00   071   40%  

071  

100%

C1K4.I.D  

Digitalisation 
and road infrastructure_road dedicated 
part to GHG emissions reduction  

of rail 
in 

063bis

12,05  

40%   063bis  

100%

C1K4.I.E  

Fostering the deployment of alternative fuels 
infrastructure in transport  

7,75   077  

100%

C1K5.I.B  

C1K5.I.B  

to 

through 

strategic 

project for 

the 
the 
a 
to  green 

Integrated 
decarbonisation  of Slovenia 
transition 
circular economy_ Contributing 
skills  
Integrated 
the 
decarbonisation  of  Slovenia  through  the 
transition 
a 
circular economy_Support to environmentall
y-friendly production processes and resource 
efficiency in SMEs   

strategic 

project 

for 

to 

9,20  

01  

100%

10,80   047   40%  

C1K5.I.C  

Increasing environmentally-friendly wood 
processing  to  accelerate  the  transition  to  a 
climate-neutral society  

28,00   047   40%  

C2K1.I.B  

Industrial/business 
transformation agenda_large enterprises  

digital 

34,00  

010bis  

100%

C2K1.I.B  

Industrial/business 
transformation agenda_SMEs  

digital 

10,00  

C2K1.I.C  

C2K1.I.D  C2K1.I.
E  

C2K1.I.F  

Establishment  of  hybrid  cloud  infrastructure 
at  the  Ministry  of  Economic  Development 
and Technology  

2,50  

Cross  border  and  multi-country  projects  - 
European  common  data  infrastructure  and 
services and  Low-Power  Processors  and 
Semiconductor Chips   
Cross  border  and  multi-country  projects  -
Services 
Blockchain 
 European 
Infrastructure  

7,50  

2,50  

100%

010  

100%

010  

021quater  

100%

100%

010  

79 

 
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
C2K2.I.G  

Modernising the digital environment of 
public administration  

60,77  

C2K2.I.H  

Gigabit infrastructure  

30,00  

C2K2.I.I  

Digitalisation of internal security  

23,63  

C2K2.I.J  

Digitising education, science and sport  

66,73  

C2K2.I.K  

Green Slovenian location framework  

33,50  

C2K2.I.L  

The digital transition in agriculture, food and 
forestry  

24,06  

C2K2.I.M  

Digitalisation in the field of culture  

9,90  

100%

011  

100%

053  

100%

011  

100%

055  

100%

011  

100%

011  

100%

011  

C2K2.I.N  

Digitalisation in the field of justice  

10,31  

011quater 

100%

C3K1.I.B  

C3K1.I.B  

C3K1.I.B  

research and innovation 
Co-financing  of 
projects  in  support  of  green  transition  and 
digitalisation  - focusing  on  the  low  carbon 
economy, 
to 
climate change  

resilience  and  adaptation 

10,00   022   

100%

Co-financing of research innovation projects 
and 
in 
digitalisation - digital related R & I  

support  of  green 

transition 

Co-financing of research innovation projects 
in 
and 
digitalisation 
circular 
economy  

support  of  green 
- focusing 

transition 

on 

10,00  

009bis  

100%

45,00   023   40%  

C3K1.I.D  

Co-financing 
demonstration and pilot projects  

of investments in 

RDI 

30,00   023   40%  

80 

 
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
C3K2.I.C  

C3K2.I.C  

C3K4.R.A  

C3K4.I.B  

C3K4.I.B  

Providing 
of 
economic and business infrastructure: SMEs  

ecosystems 

innovative 

121,00   047   40%  

innovative 

ecosystems 

of 
Providing 
economic  and  business infrastructure:  large 
enterprises  
Enhancing the 
development 
sustainable 
of tourism - upgraded data monitoring in the 
Slovenian Green Tourism Scheme  

The  sustainable  development  of 
accommodation offer to 
value of tourism - energy renovation  

raise 

tourist 
the  added 

The  sustainable  development  of 
accommodation offer to 
value 
efficient buildings  

tourist 
the  added 
tourism - new energy 

raise 

of 

17,50  

047bis

40%  

1,00  

100%

011  

24,25   025   40%  

10,25   025ter  40%  

C3K5.R.A  

Renovating  the  education  system  for  the 
green and digital transitions - green skills  

1,31  

01  

100%

C3K5.R.A  

Renovating the  education  system  for  the 
green and digital transitions - digital skills  

1,31  

100%

108  

C3K5.R.B  

Reform  of  higher  education  for  a  green  and 
resilient transition - green skills  

1,01  

01  

100%

C3K5.R.B  

Reform  of  higher  education  for  a green  and 
resilient transition - digital skills  

1,01  

100%

108  

C3K5.R.C  

secondary 
Modernisation 
vocational training and  vocational  education 
including apprenticeships - green skills  

of 

1,67  

01  

100%

C3K5.R.C  

Modernisation 
secondary 
vocational training and  vocational  education 
including apprenticeships - digital skills  

of 

1,67  

C3K5.I.E  

comprehensive 

The 
transformation 
(sustainability  and  resilience)  of  green  and 
digital education - digital skills  

27,87  

100%

108   

100%

108  

81 

 
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
C3K5.I.E  

comprehensive 

The 
transformation 
(sustainability  and  resilience)  of  green  and 
digital education - green skills  

2,44  

01  

100%

C3K5.I.F  

Pilot  projects  to  prepare  the  ground  for 
higher  education  reform  for  a  green  and 
resilient transition - green skills  

28,49   01  

100%

C3K5.I.F  

Pilot  projects  to  prepare  the  ground  for 
higher  education  reform  for  a  green  and 
resilient transition- digital skills  

28,49  

100%

108  

C3K5.I.H  

Greening 
Slovenia  

education 

infrastructure 

in 

40,01   025ter  40%  

C3K5.I.H  

Greening 
Slovenia (loans)  

education 

infrastructure 

in 

41,80   025ter  40%  

C4K1.I.C  

Health digital transformation  

83,00  

100%

095  

Int. Field = intervention field 

Coeff. = Coefficient for the calculation of support to climate change objectives and to digital transition, 
on the basis of Annex VI and Annex VII to the RRF Regulation 

82