COMMISSION STAFF WORKING DOCUMENT 2023 Country Report - Slovakia Accompanying the document Recommendation for a COUNCIL RECOMMENDATION on the 2023 National Reform Programme of Slovakia and delivering a Council opinion on the 2023 Stability Programme of Slovakia
Date: 2023-05-24
Institutions: European Commission, Secretariat-General
Subjects: Slovakia, economic policy, economic recovery, economic reform, energy policy, fiscal policy, housing policy, renewable energy, stability pact, stability programme

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 24.5.2023  SWD(2023) 625 final  COMMISSION STAFF WORKING DOCUMENT 2023 Country Report -  Slovakia Accompanying the document Recommendation for a COUNCIL RECOMMENDATION on the 2023 National Reform Programme of Slovakia and delivering a Council opinion on the 2023 Stability Programme of Slovakia {COM(2023) 625 final}  
 
 
 
 
 
 
 
 
 
 
 
ECONOMIC AND EMPLOYMENT SNAPSHOT 

A global slowdown and structural 
challenges undermine growth 
prospects 

The  highly  open  Slovak  economy  is  back 
to  the  pre-pandemic  level  in  terms  of 
gross domestic product, but prospects for 
2023  are  moderate.  Slovakia  is  among  the 
countries  with  the  highest  share  of  exporting 
firms.  Its  manufacturing  sector  is  its  growth 
engine which renders it vulnerable to external 
shocks  due  to  its  high  level  of  integration  in 
global  value  chains.  Moreover,  due  to  higher 
prices of commodities and fast growth of unit 
labour  costs,  Slovakia’s  cost  competitiveness 
has declined. Likewise, fast-growing household 
debt  associated  with  elevated  house  prices 
contribute to macroeconomic vulnerabilities in 
Slovakia  (see  also  chapter  3  Curbing  house 
price  growth  and  household  debt) (1).  Inflation 
is  expected  to  peak  during  early  2023  and 
reach the annual level of 10.9% in 2023. Food 
prices  are  expected 
to  continue  driving 
inflation  in  2023  but  non-energy  inflation  is 
projected  to be  persistent  overall,  affected  by 
higher  costs  of  inputs  and  labour  amid  tight 
labour  supply.  The  growth  of  the  unit  labour 
costs might remain more persistent. Slovakia’s 
current  account  balance  declined  sharply  in 
2022, just like in most other EU countries, due 
primarily  to  high  energy  prices  and  supply-
chain  disruptions  in  the  export  industries.  The 
Slovak  current  account  balance  is  forecast  to 
strengthen  but  to  remain  in  a  non-negligible 

deficit.  These  vulnerabilities  are  assessed  in 
the In-Depth Review for Slovakia. (2)  

has 

fallen 

Slovakia 

Slovakia  has  slowed  down  in  its  efforts 
to catch up with the EU average, although 
further  growth  opportunities  exist  in  the 
green  and  digital  economy.  In  the  last 
decade, 
behind 
substantially in its attempts to catch up the EU 
average  on  labour  productivity  and  stands  at 
74%  (measured  in  PPS  per  employee  for 
2021), unlike the direct peers (see Annex 12). 
The  country’s  export-driven  growth  model, 
based  on 
industrial 
production,  faces  challenges  as  its  significant 
car  manufacturing  sector  faces  structural 
change  in  automation,  continued  component 
shortages  and  the  transformation  towards 
electromobility.  This  underscores  the  need  to 
speed  up  preparations  for  the  green  and 
digital transition.  

labour  costs 

low 

in 

Several  challenges  still  need  to  be 
overcome  by  Slovakia  if  it  is  to  benefit 
from  the  full  potential  of  the  green  and 
digital  transition.  Mismatches  between 
current skillsets of the labour force and future 
labour  market  needs  are  high.  Research  and 
innovation  (R&I)  spending  remains  relatively 
low 
(see  Annex  11).  Amid  high  energy 
intensity,  the  green  transition  lacks  sufficient 
investment  in  energy  efficiency,  renewable 
energy,  and  the  circular  economy.  Therefore, 
raising 
long-term  productivity  growth  and 
industrial  competitiveness  requires  shifting  to 
a  more  diversified  and  environmentally 
sustainable  economy.  To  do  so,  Slovakia 
industrial  transition 
should  speed  up 
its 
towards  net-zero  emissions  and 
increase 
investments in production capacities for clean 
technologies  and  the  reskilling  and  upskilling 
in  green  and  digital 
of 

its  workforce 

(1)  For more information see Thematic Notes to Support In-
Depth Reviews on Housing Market Developments, 
External Sustainability Analysis and Inflation 
Differentials in Europe and Implications for 
Competitiveness 

(2)  European Commission (2023), In-Depth Review for 
Slovakia, Commission staff working document 
(COM(2023) 643 final). 

2 

 
 
 
 
                                                 
                                                 
to 

(SDGs),  but  more  effort  is  required  in 
some areas. Slovakia has advanced on SDGs 
related 
sustainability. 
environmental 
However,  it  needs  to  improve  in  the  provision 
of and access to affordable and clean energy 
(SDG  7).  Moreover,  it  remains  well  below  the 
EU  average 
(Responsible 
for  SDG  12 
production  and  consumption)  and  SDG  13 
local 
(Climate  action).  Slovak  cities  and 
communities  top  the  EU  charts  for  their 
sustainability and environmental quality of life 
(SDG 11). The country’s performance on SDGs 
on  fairness  has  been  improving  but  has  been 
making  slower  progress  on  the  goals  on 
education, health and gender balance (SDGs 3, 
4  and  5)  and  the  country  remains  below  the 
EU  average.  It  also  remains  below  the  EU 
average  for  most  of 
indicators  on 
productivity  and  macroeconomic  stability 
(SDGs 4, 8, 9 and 16; see Annex 1). 

the 

Public finances face sustainability 
challenges 

from 

After  the  COVID-19  crisis,  fiscal  policy 
focused on cushioning the impact of high 
inflation  and  energy  prices  in  2022.  The 
general  government  deficit  decreased  from 
5.4%  of  GDP  in  2021  to  2.0%  in  2022. 
Budgetary 
the 
revenues  benefited 
inflationary  spike,  increasing  from  39.4%  of 
GDP  in  2020  to  40.2%  in  2022.  The  new 
measures  introduced  to  lessen  the  impact  of 
high  energy  prices  had  been  shifted  from 
2022 to 2023. Total spending decreased from 
44.8% of GDP in 2020 to 42.3% in 2022. The 
government  budget  deficit  is  expected  to 
increase  to  6.1%  of  GDP  in  2023,  mostly  on 
the  back  of  measures  introduced  to  mitigate 
the impacts of high energy prices, but also due 
to  decreasing  VAT  rates  in  some  food  and 
leisure sectors, the family package including a 
tax  bonus  and  increased  child  allowances, 
introducing  a  parental  bonus  under 
the 
pension reform, as well as re-introducing free 
lunches  for  pupils.  In  2024,  the  government 
budget  deficit  is  expected  to  narrow  to  4.8% 
of GDP. 

technologies,  as  laid  out  in  the  EU’s  Green 
Deal industrial plan and the Net Zero Industry 
Act. 

from 

region 

labour 

and 
remain 

Slovakia’s  labour  market  has  seen  a 
the  pandemic,  but 
recovery 
employability 
force 
participation 
structural 
challenges,  especially  in  some  regions. 
The  capital 
is  more  productive, 
innovative,  and  has  better  job  prospects.  By 
contrast,  unemployment  rates  are  particularly 
high  in  the  eastern  part  of  the  country.  The 
lack  of  employment  opportunities  in  these 
regions,  as  well  as  the  overall  lack  of  early 
childhood  education  and  care  places  for 
children  aged  less  than  3  years  continue  to 
pose  challenges  to  increasing  the  number  of 
women  working  or  looking  for  work  and 
overcoming  the  gender  pay  gap.  Bogus  self-
employment  remains  a  serious  challenge  in 
Slovakia. According to Eurostat, the percentage 
of  self-employed  persons with  only  one  client 
or  a  dominant  client  (31.9%)  is  among  the 
highest  in  the  EU.  Youth  unemployment  was 
20.6% 
in  2021,  above  the  EU  average 
(16.6%).  The  displaced  persons  from  Ukraine, 
as well as many Roma people, face challenges 
in accessing essential services and inclusion in 
mainstream  education,  as  well  as  access  to 
affordable  housing  in  the  very  tight  housing 
market.  This  hinders their participation  on  the 
labour  market  (Annex  14).  Addressing  these 
challenges  is  crucial  for  increasing  labour 
market participation and for implementing the 
European  Pillar  of  Social  Rights  and  reaching 
the 2030  EU  headline  targets.  In  addition  to 
the  support  from  the  Recovery  and  Resilience 
Facility  (see  next  chapter),  Slovakia  benefits 
from  a  significant  amount  of  EU  cohesion 
funds,  which  help  to  overcome  regional 
disparities  by  fostering  regional  convergence 
through investments, in for example, the green 
and digital transition. However, Slovakia faces 
challenges  in  absorbing  a  significant  amount 
of  funds  from  the  2014-2020  programming 
period  while  launching  in  parallel  the  new 
2021-2027  programming  period  with  the 
overall  allocation  of  EUR  16  billion 
(EU 
contribution and national funding). 

Slovakia  is progressing  towards  reaching 
the  UN  Sustainable  Development  Goals 

3 

 
overall  weakening  of  global  demand.  Energy 
prices in Slovakia increased by 18.8% in 2022, 
one  of  the  lowest  increases  recorded  among 
the EU Member States. Despite an increase in 
nominal  compensation  of  about  7.7%,  real 
wages (and real minimum wages) fell in 2022 
because of elevated inflation.  

The inflow of Ukrainian workers may help 
strengthen  Slovakia’s  workforce  across 
the  skills  spectrum.  An  analysis  by  the 
Ministry  of  Labour,  Social  and  Family 
Affairs (4)  confirmed  that  Slovakia  has  a  high 
number  of  job  vacancies  (81 000  in  January 
2023,  with  about  35%  concentrated  in  the 
Bratislava region). It further shows that around 
32 000 vacancies do not require specific skills 
and  are  suitable  for  workers  with  language 
barriers, including people from Ukraine.  

The  general  government  debt  will  again 
increase on the  forecast  horizon.  After  an 
increase to an all-time high of 61.0% in 2021, 
the government debt-to-GDP ratio declined to 
57.8% in 2022 and is set to increase to 58.3% 
in 2023 and to 58.7% in 2024.  

Spending  reviews  contribute  to  fiscal 
sustainability  of  public  expenditures.  The 
purpose of the review is to identify appropriate 
saving measures by reconsidering expenditure 
priorities 
and 
upcoming 
legislative 
environmental  needs.  Possible 
changes  limiting  the  scope  of  expenditure 
reviews could pose a risk to the sustainability 
of public finances. 

social 

to 

The  ageing  population  poses  challenges 
to  the  long-term  sustainability  of  public 
finances. (3) Slovakia faces high medium- and 
long-term fiscal sustainability risks (see Annex 
21). Ageing is the biggest challenge as it leads 
to higher spending on pensions, and to a lesser 
care. 
extent  healthcare  and 
According  to  the  Commission’s  2021  Ageing 
Report, the old-age dependency ratio (the ratio 
of people over 65 to people of working age, i.e. 
20-64  years  old)  is  expected  to  almost  triple 
from  2019  to  2060,  as 
life  expectancy 
increases.  Pension  expenses  are  estimated  to 
increase from 8.3% of GDP in 2019 to 13.4% 
in 2050, one of the largest increases in the EU. 

long-term 

Economic and social consequences 
of Russia’s invasion of Ukraine  

of 

effects 

Russia’s  military 
The 
aggression  against  Ukraine  constrained 
economic growth in Slovakia. The recovery 
of  industrial  exports  slowed  down  due  to 
increased  energy  prices  and  lower  growth  in 
Slovakia’s  main  export  markets,  amid  an 

(3)  The assessment of the fiscal sustainability risks for 

Slovakia over the short, medium and long term follows 
the same multi-dimensional approach as in the 
European Commission’s 2022 Debt Sustainability 
Monitor, updated based on the Commission’s 2023 
spring forecast. The analysis further relies on ageing 
costs from the 2021 Ageing Report. Hence, the recently 
adopted pension reform has not been taken into 
account.  

(4)  https://www.upsvr.gov.sk/statistiky/nezamestnanost-

mesacne-statistiky.html?page_id=1254 

4 

 
                                                 
 
                                                 
Box 1: 

Box on energy policy response in Slovakia 

Slovakia adopted various support measures to cushion the impact of energy price driven 
inflation  on  households  and  businesses.  For  2023,  their  gross  budgetary  costs  are 
projected in the Commission 2023 spring forecast to amount to 2.0 % of GDP. (5) Most 
measures  preserve  the  price  signal,  although  they  do  not  target  the  most  vulnerable 
households.  

To mitigate the social impacts of energy inflation, energy prices have been capped for 
companies and businesses at EUR 199 per MWh for electricity and EUR 99 per MWh 
for  natural  gas.  The  State  reimburses  100%  of  what  is  above  the  cap  for  small 
companies  regulated  by  the  national  regulator  (ÚRSO)  and  80%  of  what  is  above  the 
caps  for  unregulated  companies.  This  state  support  is  limited  to  a  maximum  monthly 
subsidy  per  company  of  EUR  200  000.    In  2023,  households  will  have  a guaranteed 
final  price  of  electricity  at  the  level  of  2022,  the  final  price  of  gas increased  by  15% 
compared  to  2022.  The  limit  for  the  price  of  heat  supply  in  2023  cannot  exceed  the 
single-component value of the maximum price of heat last approved or determined by 
ÚRSO for 2022 by more than 20 euros, up to a maximum of 199 euros per MWh. Price 
caps have also been introduced for energy producers, which will be taxed  at 90% if 
the caps exceed: EUR 100 per MWh for garbage plants; EUR 120 for solar power plants; 
EUR  180  for  nuclear,  wind,  hydro,  geothermal  power  plants;  EUR  230  for  lignite-fired 
power plants; and EUR 240 for biomass and biogas power plants. 

Slovakia applies the EU solidarity contribution in application of Council Regulation (EU) 
2022/1854 (6), for the 2022 fiscal year at a rate of 55%. Such excess profit is expected 
to be gained by the oil refinery Slovnaft a.s., with additional tax revenue estimated at 
about EUR 412 million in 2022 and EUR 209 million in 2023. 

Gas is a sizeable component in Slovakia’s energy mix. The country has taken action to 
improve  its  overall  security  of  energy  supply  to  decrease  its  reliance  on  fossil  fuels. 
More  specifically,  Slovakia  has  introduced  measures  to  update  the  electricity  load-
shedding rules, involving the reassessment of the consumption reductions for individual 
customers  in  the  load-shedding  plan.  Slovakia  also  decided  to  secure  minimum  gas 
supplies for electricity production: the national Transmission System Operator is tasked 
with preparing a list of critical subjects in the electricity sector, which includes ensuring 
the necessary gas volumes are delivered, as well as the volumes needed for storage. 

(5)  For 2022, gross budgetary costs of measures amounted 
to 0.2% of GDP. Some of the measures outlined in this 
box were already in place in 2022. 

(6)  I.e. a mandatory temporary solidarity contribution at a 

rate of at least 33% to the extraordinary and 
unexpected profits of businesses active in extracting 
crude petroleum, natural gas, coal, and refinery sectors. 
It is calculated on taxable profits, as determined under 
national tax rules in the fiscal year starting in 2022 
and/or in 2023, which are above a 20% increase of the 
average yearly taxable profits in 2018-2021. 

5 

 
 
 
                                                 
 
 
THE RECOVERY AND RESILIENCE PLAN IS UNDERWAY 

Slovakia’s  recovery  and  resilience  plan  (RRP) 
aims to address the key challenges related to 
the  green  transition,  education,  research  and 
innovation,  health  and  long-term  care,  public 
administration  and  the  digital  transition.    It 
consists  of  58  reforms  and  58  investments 
that  are  supported  by  EUR  6  billion  in  grants, 
representing  6.1%  of  GDP  (see  Annex  3  for 
more details).  

of 

implementation 

The 
Slovakia’s 
recovery  and  resilience  plan  has  so  far 
been well underway, however it is facing 
some challenges going forward. During the 
year  2022,  Slovakia  submitted  two  payment 
requests.  On  29  July  2022,  the  Commission 
disbursed  EUR  398.7  million  of  grants  to 
Slovakia,  based  on  the  country’s  satisfactory 
achievement of the first 14 milestones of the 
RRP.  On  22  March  2023,  the  Commission 
disbursed another EUR 708.8 million of grants, 
after  Slovakia  satisfactorily  achieved  14 
milestones and 2 targets. As a result, Slovakia 
has  been  among  the  Member  States  with the 
fastest progress in the  implementation  of the 
recovery  and  resilience  plan,  but  potential 
headwinds  due  to  administrative  capacity 
bottlenecks,  together  with  the  need  to  start 
the 
working  on  additional  measures  of 
REPowerEU  chapter  submitted  by  Slovakia  as 
part of its plan revision on 26 April 2023, call 
for  strengthened  focus  on  implementation. 
Slovakia’s  request  to  modify  its  plan  due  to 
high  inflation  experienced  in  2022,  and  a 
decrease  by  €0.2  billion  in  the  national  funds 
earmarked for financing the plan. The request 
revision  of 
the  downward 
also 
Slovakia’s  maximum  RRF  grant  allocation 
(from  €6.3  to  €6  billion).  In  the  REPowerEU 
chapter  Slovakia  proposes  six  new  reforms 
and  eight  new  investments  which  include 
considerable  reforms  in  support  of  renewable 
energy  sources,  including  geothermal  energy 
transformative 
and 
investments  in  the  electricity  grid  and  energy 
efficiency,  as  well  as  in  support  for  transport 

the  hydrogen  sector, 

reflects 

6 

sector,  households  at  risk  of  energy  poverty 
and green skills. 

The  following,  more  detailed 
review  of 
measures being implemented under the RRP in 
no way implies formal Commission approval or 
rejection of any payment requests.  

and 

decarbonisation 

The  national  authorities  have  adopted 
several  measures  that  help  create  the 
conditions 
its  green 
for  advancing 
transition.  A  significant  share  of  the  plan  is 
focused  on  meeting  the  green  and  climate 
objectives. With two components dedicated to 
industry 
climate 
adaptation,  Slovakia’s  RRP  strikes  a  balance 
between  reforms  and  investments  aimed  at 
climate  adaptation  and  mitigation  and  sets  a 
promising  blueprint  to  facilitate  the  green 
transition  from  an  economic  model  that  is 
industrialised  and  carbon-intensive 
heavily 
towards  one  that  is  more  diversified  and 
sustainable.  Slovakia  passed  several  reforms 
that  laid  the  legal  groundwork  for  creating 
new  cycling  lanes  and  expanding  rail  work 
contributing 
infrastructure, 
to 
Slovakia’s  modal 
towards  more 
sustainable  means  of  transportation.  The 
government  also  passed  a  reform  increasing 
technical  capacity  for  electricity  transmission, 
which  should  enable  new  renewable  energy 
sources  to  be  connected  to  the  grid  and 
stimulate  cross-border  energy  cooperation 
with 
Slovakia 
implemented a measure on modernisation and 
strengthening  of  the  capacities  of  police 
forces,  which  involved  creating  a  specialised 
unit 
investigating 
crimes  and  unauthorised 
environmental 
toxic 
manipulation  with  hazardous  and 
materials.  Slovakia 
launched  one  of  the 
flagship investments of its climate adaptation 
component, a call for pilot projects to revitalise 
the  Muránska  Planina  and  Polonina  national 
parks  and  as  such  promote  soft  tourism  that 
aims  to  limit  its  impact  on  the  environment 

therefore 
shift 

Furthermore, 

detecting 

Hungary. 

and 

for 

 
 
main priorities of the RRP. Slovakia passed 
a  reform  on  optimising  the  hospital  network 
and  a  reform  on  preparing  health  investment 
projects, which will introduce more systematic 
planning  of  investments  in  the  healthcare 
sector (including new hospitals funded as part 
of  the  RRP).  A  new  law  on  establishing  the 
network  of  general  care  providers  and  on 
introducing  zoning  was  also  passed,  which 
should  trace  the  regional  disparities  in  the 
provision  of  medical  care  across  the  country. 
Slovakia 
reform 
consolidating the system for supervising social 
care,  which  is  fragmented  across  various 
regional  and  national  authorities,  resulting  in 
an uneven provision of social care. 

introduced 

also 

a 

throughout 

In the area of public administration, there 
are  important  reform  and  investment 
the  RRP.  This 
measures 
includes  i) strengthening  the  administrative 
capacity  both  at  local  and  at  national  level, 
ii) adopting  the  Recovery  and  Resilience  Act, 
iii) establishing  the  National  Implementation 
and  Coordination  Authority,  iv) setting  up  a 
repository  system,  and  v)  providing  the  legal 
basis  for  the  audit  system.  Slovakia  already 
implemented  key  reforms  to  simplify  and 
speed up public procurement procedures, while 
ensuring  proper  safeguards,  and  to  further 
increase  professionalisation  by  strengthening 
the capacity of the Public Procurement Office. 
The  government  adopted  a  significant  reform 
reorganising  the  judicial  court  map,  which  is 
expected to, once operational, ensure that the 
justice  system  is more  effective,  and  improve 
the integrity of the judiciary. Slovakia also took 
important  measures 
in  the  fight  against 
corruption  and  money  laundering.  Besides 
organisational  changes  in  the  police  force  to 
increase  the  capacity  to  detect  and  fight 
against  new  forms  of  crime  and  corruption, 
important  legislation  was  adopted  to  improve 
the police's authority and capacity to verify the 
origin  of  assets,  operationalise  the  office  for 
managing  seized  assets  and  a  Central 
Accounts  Register,  and  generally  to  increase 
the  possibilities  for  the  freezing  of  assets. 
Slovakia  is  also  implementing  a  reform  in 
public  investment  management,  aiming  at 
increasing  the  economic  value  and  higher 
return  on  investment  of  new  projects,  with 

and  sustainable  employment  opportunities  in 
these  regions.  The  government  also  improved 
the  system  for  managing  construction  and 
demolition  waste,  putting 
legal 
obligations  to  ensure  that  at  least  70%  of 
non-hazardous  construction  and  demolition 
waste 
is  recovered.  Furthermore,  Slovakia 
passed a reform of the public procurement act 
which,  among  other  things,  solidifies  green 
rules for public procurement.   

in  place 

on 

the 

and 

has 

quality 

implemented 

repeatedly  been  subject 

Slovakia 
several 
education reforms and investments in its 
education institutions. Slovakia consistently 
scores below the EU average on key education 
indicators, 
and 
inclusiveness,  of  its  education  system.  The 
country  has 
to 
country-specific recommendations in this area 
over  the  years.  To  address  these  challenges, 
Slovakia reformed the governance structure of 
its universities and adopted a strategy on their 
internationalisation.  The  government  also 
passed  a  reform  aimed  at  stimulating  the 
research  capacity  of  Slovak  universities  by 
setting up partnerships between institutions of 
higher  learning  and  by  sharing  their  research 
infrastructure.  Furthermore,  to  strengthen  the 
coordination  of  R&I  policies,  the  adopted  R&I 
reform creates a new governance structure at 
the Government Office with a key role for the 
Governance  Council  for  RDI  and  improves 
evaluation processes. The reform of the Slovak 
Academy  of  Science  will  allow  the  institution 
to pursue joint projects and research with the 
private  sector  and  receive  private  funding. 
Moreover,  Slovakia  developed  a  manual  on 
how  to  remove  physical,  technological  and 
informational  barriers  in  schools  and  make 
for  pupils  with 
them  more  accessible 
disabilities. This know-how will be crucial when 
completing 
in 
ensuing 
removing  physical  barriers  in  252  secondary 
schools  by  the  second  quarter  of  2025.  The 
education  and  skills  measures  of  the  Slovak 
plan  are  not  only  targeting  young  people,  but 
they  also  allocate  significant  resources  to 
providing  older  people  with  digital  skills  and 
equipment.  

investment 

the 

As the Slovak healthcare sector struggled 
during the COVID-19 pandemic, reforming 
the healthcare system became one of the 

7 

 
Box 2: 

List of key deliverables under the RRP in 2023-2024 

  Package of measures to promote alternative propulsions in transport 

  Land planning reform 

  Reform of pre-primary education 

  New curriculum for primary and lower-secondary education 

  Introduction of performance contracts in higher education 

  Launch of several calls for support for research and innovation 

  Reform of emergency healthcare 

  Operationalisation of the newly reorganised court network 

  Increased infrastructure and capacity to help in the fight against money laundering 

  Investment plan for e-government solutions 

  Creation of a single electronic platform for public procurement processes 

  Package of reforms to reduce administrative burden for businesses 

main focus on improved prioritisation, planning 
and ex ante economic evaluations. 

steps 

towards 

Slovakia  has  taken  several  important 
initial 
increasing 
digitalisation  in  the  public  sector,  the 
economy  and  society.  In  December  2021, 
the  authorities  adopted  the  ‘National  Concept 
for  Informatisation  of  Public  Administration’ 
for  2021-2030.  This  establishes  a  strategic 
framework  setting  out  four  priority  axes  that 
the  e-government  and 
are  aligned  with 
cybersecurity  measures  included  in  the  RRP. 
Moreover,  a  support  scheme  has  been 
including  SMEs, 
launched  for  companies, 
research  institutes,  public  bodies  and  other 
beneficiaries  for  research,  development  and 
application  of  advanced  digital  technologies. 
The scheme will serve as a basis for launching 
demand  calls  for  support  to  a  wide  range  of 
projects  in  the  field  of  digital  technologies. 
Furthermore,  to  counter  the  risk  of  older  and 
disadvantaged people being left behind in the 
digital  transition,  the  authorities  completed  a 
pilot  project  for  improving  their  digital  skills, 

which involved a sample of 1000 people. This 
was  achieved  through  a  combination  of 
training  in  digital  skills  and  providing  tablets 
and  internet  connections.  The  pilot  project  is 
being followed up in 2023 and beyond through 
the roll-out of a large-scale programme based 
on  the  experience  gathered  from  the  pilot 
stage. 

8 

 
 
FURTHER PRIORITIES AHEAD 

Beyond those tackled in the RRP, Slovakia 
faces further challenges. These are related 
in  particular  to  dealing  with  the  overheated 
housing  market, 
improving  administrative 
efficiency,  boosting  green  and  digital  skills, 
reducing 
strengthening 
regional  disparities  and 
the 
phasing-out  of  fossil  fuels.  Addressing  these 
challenges will also help Slovakia make further 
the  SDGs  where 
progress 
currently 
further 
improvement.  

in  achieving 
there 

supporting 

inclusion, 

social 

room 

for 

is 

Curbing house price growth and 
household debt  

Household  debt  has  been  growing 
for  households, 
strongly,  especially 
whose debt almost doubled over the last 
decade.  The  challenging  macroeconomic 
situation has led to a number of vulnerabilities 
emerging  that  are  assessed  in  the  In-depth 
Review  for  Slovakia (7).  Household  debt  has 
been  growing  due  to  low interest  rates  in  the 
years 
favourable 
the 
macroeconomic  developments  before 
pandemic.  Despite  adequate  macroprudential 
measures,  household  borrowing 
remained 
strong  even  during  the  pandemic  thanks  to 
government support schemes (see Graph 3.1). 
However,  the  gradual  increasing  costs  of 
borrowing and the decline in purchasing power 
will likely weaken demand for mortgages. 

2012-2021 

and 

(7)  European Commission (2023), In-Depth Review for 
Slovakia, Commission staff working document 
(COM(2023) 643 final). 

9 

Graph 3.1: House price (2015 = 100) and 
mortgage growth 

MFI – monetary financial institution 
Nominal and real house price index (2015=100) and 
year-on-year change in loans (outstanding amounts at 
the end of the period or stocks) for house purchase 
granted by MFIs  
Source: Eurostat, ECB (BSI) 

Housing  supply  lags  behind  the  strong 
demand,  which  worsens  the  availability 
of  housing  and  results  in  housing  prices 
rising  (see  Graph  3.1).  System  of  the  state 
supported  rental  housing  was  supposed  to 
address the shortage of housing, but no major 
progress  has  yet  been  made.  The  time  for 
getting a building permit is one of the longest 
in  the  high-income  OECD  countries.  However, 
this  is  expected  to  improve  thanks  to  two 
newly approved construction laws that aim to 
reduce 
in 
administrative 
construction procedures. A reform of the rental 
market could further help reduce the pressure 
on  property  prices 
in  some  regions  and 
improve  workers’  ability  to  move  around  for 
employment.  

burden 

the 

A  reform  of  property  taxation  could  also 
play  a  role  in  tempering  the  house  price 
is 
dynamics.  The  recurrent  property  tax 
relatively low (0.5% of GDP vs 1.1% in the EU, 
see  Annex  19).  Slovakia  uses  area-based 
property  taxation,  which  is  common  in  some 
central  and  eastern  European  countries  (e.g. 
Czechia, Poland), but exceptional among OECD 
countries.  A  market-based  property  tax  could 
be  considered  to  increase  tax  revenue  and 
dampen the growth in property prices.  

0204060801001201401601802000510152025303508Q409Q410Q411Q412Q413Q414Q415Q416Q417Q418Q419Q420Q421Q422Q42015=100Rate of change y-o-y (%)MFI loans for house purchase (y-o-y growth rate)Real House Price Index (2015=100), right axisNominal House Price Index (2015=100), right axis 
 
                                                 
  
Improving the business 
environment, administrative 
capacity and the justice system 

to 

improve 

reforms 

implement 

Increasing  the  ability  and  capacity  of 
Slovakia's public administration to invest 
remains  a 
and 
challenge.  The  effectiveness  of  Slovakia’s 
public  administration  continues  to  rank  below 
the  EU-27  average  (see  Annex  13).  Slovakia's 
absorption capacity of EU funds is among the 
lowest  in  the  EU,  which  undermines  the 
country's ability to capitalise on the green and 
transitions.  Strong  measures  are 
digital 
inefficient 
needed 
the 
management  of  funding  and 
insufficient 
capacity  of  line  ministries  to  launch  and 
implement calls under various funding sources 
(see  Annexes  4  and  13).  The  fragmented 
system  of  local  government  and  insufficient 
coordination  between  various 
levels  of 
government continues to create bottlenecks in 
implementing 
and 
investment 
important  policies.  Slovakia  also  scores  below 
the  EU  average  on  various  e-government 
indicators  as  well  as  on  government 
transparency  and  oversight  institutions.  While 
important reforms under the RRP are expected 
to  improve  the  effectiveness  of  the  justice 
system,  some  concerns  remain  over  the 
cooperation  of  law  enforcement  bodies  and 
the  objectivity  of  prosecutorial  decisions, 
linked in particular to the Prosecutor-General's 
in  high-level 
use  of  discretionary  powers 
corruption investigations.  

projects 

to 

be 

the 

can 

processes 

further 
Digital 
streamlined  and  new  opportunities  to 
digitalise exploited, especially in the area 
of  the  tax  system  and  tax  compliance. 
tax 
Despite  some  simplifications 
registration  system  for  new  companies,  the 
digitalisation 
is 
tax 
progressing  slowly.  Electronic  invoicing  and 
pre-filled  tax  returns  are  overdue,  affecting 
the 
The  VAT 
compliance gap continued its downward trend, 
decreasing  from  15%  in  2019  to  13.9%  in 
2020,  but  remains  above  the  EU  average  of 
9.1%. 

administration 

collection 

capacity. 

tax 

of 

the 

increase 

Although  the  business  environment  is 
improving,  addressing 
remaining 
challenges  is  crucial  for  Slovakia  so  it 
can 
its  competitiveness  and 
boost  investment  and  innovation.  Despite 
implementing  reforms  under  the  RRP  in  the 
area  of  public  procurement  to  simplify  and 
speed  up  procedures  and  improve  the  control 
mechanism,  the  use  of  quality  and  lifecycle 
cost  criteria  remains  limited  (see  Annex  12). 
Although  the  RRP  includes  relevant  measures 
to  address  Slovakia's innovation  performance, 
for  which  various  indicators  score  below  the 
EU  average,  further  measures  are  needed  to 
sustain  public  R&D  funding  and  improve  the 
entire  innovation  landscape  (see  Annex  11). 
Slovakia has made some progress in reducing 
the  administrative  burden  for  businesses,  but 
professional  services 
tax  advisers, 
lawyers,  patent 
architects,  civil  engineers, 
agents  and  tourist  guides)  remain  highly 
regulated (see Annex 12). 

(e.g. 

There  is  scope  to  limit  late  payment 
problems  and  improve  access  to  finance. 
Late  payments  continue  to  be  a  serious 
structural  issue,  affecting  the  liquidity  of 
SMEs. This is noticeably the case in the health 
sector, with an average payment time of 232 
days  (four  times  the  exceptional  period  of  60 
days as set out in the Late Payment Directive). 
Furthermore,  less  productive,  and  indebted 
firms have been affected by the various crises 
in recent years with the number of bankruptcy 
declarations  significantly  exceeding  the  EU 
average  and  business  registrations  slightly 
below  the  EU  average  in  2022.  Access  to 
finance  is  still  underdeveloped  with  both  the 
loan index and the equity index ranking below 
the EU average (see Annex 12).   

Promoting green and digital skills 
to foster labour market 
productivity  

Addressing skills mismatches and making 
further investments in adult learning can 
help  Slovakia’s  labour  productivity  catch 

10 

 
 
 
up with the EU average. In 2021, Slovakia's 
labour  productivity  stood  at  74%  of  the  EU 
average,  lower  than  the  level  observed  in 
preceding  years (8).  Moreover,  the  Education 
and  Training  Monitor  2022  highlights  that 
Slovakia has a skill mismatch rate of 35%, one 
of the highest among OECD countries, which is 
particularly evident in key sectors essential to 
the  country’s  future  development.  In  2020, 
the 
12.4%  of  employers 
unavailability 
the 
appropriate  skills  is  a  major  obstacle  to 
achieving  climate-related  goals,  such  as 
lessening  the  impacts  of  weather  events  and 
reducing  emissions,  while  33.28%  considered 
it a minor obstacle (9).   

reported 
that 
personnel  with 

of 

Including  green and  digital  skills  training 
in  adult  learning will  be  crucial  to  address 
labour  market  needs  and  boost 
the 
productivity.  For  instance, to  keep  up  with the 
growth  in  the  automotive  sector,  industry 
workers  need  to  acquire  more  advanced 
towards  clean 
technical  skills.  The  shift 
vehicles is projected to significantly affect the 
occupational  and  skills  profile  of  the  sector, 
with  over  half  of  the  total  job  openings 
forecast to require high-level qualifications by 
2025 (10).  So  far  Slovakia  has  carried  out 
limited  actions  to  address  the  need  for 
upskilling,  reskilling  and  adult  learning  in  this 
area.  In  2019,  the  Ministry  of  Environment 
adopted  a  ‘strategy  for  the  environmental 
policy of the Slovak Republic until 2030’ which 
envisaged 
for 
and 
no 
development, 
sustainable 
implementation  has  been  observed.  The 
recently 
Slovakia’ 
allocated EUR 72 million from the EU cohesion 
policy  funds  to  green  skills  but  the  details  of 
the  planned  measures  are  still  undetermined. 
For  now,  there  is  a  lack  of  mapping  and 
forecasting of the need for green skills across 
sectors and occupations that would enable the 
appropriate  policy  interventions  to  be  shaped. 
Innovation 
According 
in 
Scoreboard  of  2022, 

the  European 
lifelong 

training 
but 

‘Programme 

education 

adopted 

learning 

to 

(8)  Labour productivity per person employed and hour 

worked, EUROSTAT 

(9)  EIBIS Survey, 2020. 

Slovakia  is  well  below  the  EU  average (11). 
Furthermore, the country is also below the EU 
average  for  above-basic  overall  digital  skills. 
This  situation  presents  significant  challenges, 
as  individuals  without  digital  knowledge  face 
greater difficulties in finding jobs. In December 
2022, Slovakia adopted a digital skills strategy 
and  an  action  plan  setting  out  the  main 
priority areas for action in the coming years to 
improve digital literacy in all segments of the 
population.   

Addressing poverty, social 
exclusion and regional disparities 

Soaring  energy  and  food  prices  have 
exacerbated 
the  already  challenging 
situation  for  low-income  families.  The 
share  of  persons  at  risk  of  poverty  or  social 
exclusion increased to 15.6% in 2021 (12). The 
electricity  and  natural  gas  price  caps,  which 
were  introduced  along  with  other  support 
measures  at  the  end  of  2022,  mitigated  the 
effect  of  inflation  on  energy  poverty.  Yet,  the 
poverty  rate  is  expected  to  increase  further 
due to the rising cost of living and the limited 
minimum  income  support.  Moreover,  as  Table 
A17.1  shows,  the  intensity  of  poverty  and 
social  exclusion  differs  across  regions.  This 
coexists with a range of other socio-economic 
problems  characterised  by  strong  regional 
disparities  which  contribute  to  the  social 
the  country,  such  as 
fragmentation  of 
unemployment and greenhouse gas emissions, 
insufficient water and waste infrastructure, as 
well  as  the  lack  of  digital  connectivity  (Annex 
10) and the shortage of schoolteachers (Annex 
15).  

of  Roma 

Social  challenges  are  most  predominant 
in  Roma  communities  and  a  significant 
share 
be 
marginalised. The 2021 Roma Survey shows 
felt 
that  45%  of  Roma 
discriminated  against  when  looking  for  a  job, 
that 28% live in homes without access to tap 

in  Slovakia 

continue 

to 

(11)  European Innovation Scoreboard, 2022 

(10)  Blueprint for sectoral cooperation on skills - Responding 

(12)  Eurostat, People at risk of poverty or social exclusion 

to skills mismatches at sectoral level 

(TIPSLC10) 

11 

 
                                                 
                                                 
water,  and  that  48%  live  in  severe  material 
deprivation (13).  Slovakia  acknowledges  the 
issue  and  the  need  to  foster  the  inclusion  of 
Roma  people  in  all  spheres  of  life.  The  EU  is 
helping  Slovakia  to  advance  on  systemic 
solutions for Roma inclusion, including through 
the  RRF  and  EU  cohesion  policy  funds.  Still, 
challenges  persist  as  regards  access  to  basic 
services,  inclusion  in  mainstream  education, 
enhancing social mobility, ensuring that Roma 
people  benefit  from  labour  market  policies 
including  those  focusing  on  upskilling  and 
reskilling, and increasing the number of Roma 
who  hold  influential  positions  at  public  and 
private institutions (14).  

a 

geographically 

The  healthcare  system  is  underfunded 
inefficiencies,  among 
and  experiences 
which 
uneven 
distribution  of  primary  care  providers.  
Public  spending  on  prevention  programmes  is 
among the lowest in the EU while the number 
of  outpatient  consultations  with  specialists 
(Annex  16)  and  hospitals  admissions  are 
among  the  highest (15).  The  weak  position  of 
primary care in part reflects the low number of 
general  practitioners  and  paediatricians,  as 
their  uneven  distribution  across 
well  as 
country. The assessment made by the Ministry 
of  Heath, in  order  to  establish  the  network  of 
general  outpatient  care  providers,  shows  that 
as  of  1 January  2022  66  out  of  71  districts 
did  not  have  a  sufficient  number  of  general 
practitioners  and  that  the  situation  is  more 
serious in  the  western  part  of  Slovakia.  Some 
of 
58 
paediatricians (16). 

shortage 

districts 

have 

a 

(13)  European Union Agency for Fundamental Rights (2022), 

Roma in 10 European Countries - Main results. 

(14)  European Commission SWD (2023), Assessment report 

of the Member States’ national Roma strategic 
frameworks. 

(15)  OECD/European Commission: State of Health in the EU · 

Slovakia · Country Health Profile 2021. 

(16)  Results of the assessment of the state of the public 

minimum network of general outpatient care providers 
and classification of districts as of 1 January 2022 
https://www.health.gov.sk/?vseobecna-ambulantna-
starostlivost  

12 

Advancing the green transition and 
boosting resource efficiency 

a 

Slovakia  remains  a  structurally  energy-
intensive 
high 
economy  with 
dependency  on  fossil  fuel  imports.  The 
primary  energy  intensity  remains  high  for 
Slovakia at around 80% above the EU average 
in  2020 (17).  Its  final  energy  consumption 
increased by 13.5% between 2015 and 2021. 
The progress made in reducing net greenhouse 
gas  emissions  has  largely  stalled  in  recent 
years  (see  Annex  6).   After  the  conclusion  of 
the  negotiations  for  a  revision  of  the  Energy 
Efficiency  Directive,  the  ambition  of  both  the 
EU  and  national  targets  as  well  as  of  the 
national  measures  for  energy  efficiency  to 
meet these targets is expected to increase. 

Slovakia  was  able  to  diversify  its  import 
away from Russia mainly the natural gas 
imports,  but  gas  saving  measures  have 
not  been  sufficiently  deployed (18).  Since 
summer 2022, the share of imports of natural 
gas  from  Russia  fell  from  85%  to  currently 
remains  nonetheless 
about  50%,  which 
significant (19).  Slovakia’s  electricity  networks 
remain  very  well 
its 
neighbours  (see  Annex  7).  The  Slovenské 
elektrárne  utility  continues  efforts to  diversify 
the  nuclear  fuel  supplies,  100%  of  which  is 
currently imported from Russia (20). Slovakia is 
one  of  the  three  countries  in  the  EU  not  to 

interconnected  with 

(17)  EU energy in figures, 2022, page 124.  

(18)  In 2020, natural gas accounted for 25% of Slovakia´s 
gross inland consumption. Oil and petroleum products 
accounted for 22%, nuclear energy for 24%, solid fossil 
fuels for 14% and renewables and biofuels for 13% ( 
EU Energy in figures 2022, p. 230). 

(19)  A new natural gas cross-border interconnector between 
Slovakia and Poland opened in late 2022, which allows 
for a significant capacity (5.7 bcm/year) for supplies 
from Norway and the Baltic Sea terminals. The state-
owned SPP utility contracted a number of LNG 
shipments through terminals in Croatia in 2022 (with 
imports ensured via a pipeline through Croatia and 
Hungary). The oil shipped from Adriatic Sea terminals 
also partly provided an alternative to the Druzhba 
pipeline imports from Russia. 

(20)  Slovakia met gas storage obligations last winter, 

reaching 91.29% by 1 November 2022 (above the EU 
legal obligation of 80%). 

 
                                                 
                                                 
the 

Environment in 2023, could simplify processes 
for  certain  aspects  of 
renewables 
permitting  procedures.  Further  measures  are 
needed  to  increase  the  uptake  of  energy 
communities  in  Slovakia.  Furthermore,  the 
deployment  of  renewable  solutions  such  as 
heat 
and 
geothermal 
biomethane  could  lower  the  carbon  footprint 
of  the  heating  sector.  Around  35%  of  citizens 
are  are  connected  to  the  district  heating 
system, which mainly uses gas. 

pumps, 

energy 

to 

increase 

increase 

renewables. 

investments 

the 
More 
flexibility  of 
the  Slovak  electricity 
network  could  help  accommodating  the 
in  the  volume  of 
expected 
Investment 
intermittent 
decisions  could  be 
facilitated  by  more 
transparent  information  on  releasing  the  new 
capacities  for  connection  to  the  grid.  An 
updated 
for 
connecting  new  renewable  to  the  grid  could 
further 
the  use  of  booked 
capacities through fees and time limits. Lower 
grid  connection  fees (including the  ‘G-charge’) 
would  accelerate  new 
into 
renewables.  

reservation  mechanism 

investments 

incentivise 

and 

As  regards  the  renovation  of  buildings, 
further  measures  would  help  address 
energy  poverty  and  accelerate  a  deep 
renovation  of  public  property.  The  RRP 
green  renovation  scheme  adopted  in  mid-
2022  is  incentivising  deep  renovation  and 
provides  the  opportunity  for  households  to 
reduce  their  energy  demand.  However,  its 
successful implementation depends on further 
simplification, 
further 
assistance 
targeting  energy  poverty  and 
measures 
disadvantaged  groups. 
In  contrast,  energy 
efficiency  improvements  in  public  and  private 
non-residential  buildings  have  lagged  behind 
and  could  be  accelerated  by  adjusting 
renovation schemes and tapping more into the 
private  funding.  As  the  effective  use  of 
funding  requires  prioritisation  of  the  worst 
performing  public  buildings,  energy  data  on 
public  buildings  are  still  missing.  Systemic 
data  collection  and  a  gradual  roll-out  of 
energy  efficiency  passports  for  buildings 
in  the  planning  of  targeted 
would  help 
investments.  

to 

have achieved the 15% gas demand reduction 
target. Its natural  gas consumption decreased 
by 1% between August 2022 and March 2023, 
compared 
the  18% of gas  demand 
reduction over the same period at EU-27 level. 
Due  to  its  high  reliance  on  imported  coal  and 
natural  gas,  the  district  heating  sector  has  a 
great 
into 
for 
decarbonisation.  Finally,  while  energy  prices 
have decreased, uncertainty remains regarding 
next  winter,  which  requires  continued  efforts 
to  structurally  reduce  gas  demand.  Reducing 
is  an 
Slovakia’s  reliance  on  fossil  fuels 
essential part of ensuring security of supply. 

investments 

potential 

More ambitious EU targets under the ‘Fit 
for 55’ and REPowerEU plan underline the 
urgency  for  Slovakia  to  speed  up  the 
green  transition.  The  cumulative  installed 
capacity of solar and wind energy was around 
7% (21)  of  total  installed  capacity  in  2022, 
which  is  the  second  lowest  in  the  EU.  While 
Slovakia surpassed its 14% renewable energy 
to 
target 
contributions from solid biomass, an increased 
level  of  ambition  in  renewables  would  be 
warranted  in  the  context  of  the  Fit  for  55 
target  would 
Package,  where 
amount  to  32%.  As  a  basic  planning  tool, 
updated  Slovak  national  energy  and  climate 
(NECP)  should,  among  other  things 
plan 
increased  renewable  energy 
introduce  an 
target and a development plan for renewables.  

for  2020, 

the  2030 

largely 

thanks 

for 

despite 

available 

sources, 

There  is  potential  for  further  reforms  to 
facilitate the investments into renewable 
energy 
important 
legislation adopted in 2022. While the RRF 
reforms  have  led  to  a  significant  increase  in 
connecting 
capacity 
the 
renewables  to  the  grid  (by  up  to  1100 MW  in 
early  2023),  only  a  small  share  of  the  free 
capacity  has  been  used  to  connect  new 
renewable 
particular, 
permitting procedures need to be  accelerated, 
the 
e.g.  by  simplifying  and  digitalising 
(EIA), 
Environmental 
integrating the EIA and construction permitting 
into  a  single  procedure,  and  setting  up 
renewables acceleration areas. The update EIA 
legislation, which is planned by the Ministry of 

Impact  Assessment 

installations. 

In 

(21)  EU Energy in Figures (2022). Page. 100. 

13 

 
                                                 
Taxation and legislative measures to curb 
the  continued  rise  in  transport-related 
greenhouse  gas  and  pollutant  emissions 
appear  insufficient.  The  share  of  transport 
taxation as well as the resource and pollution 
charges  in  total  tax  revenues  (0.58%  and 
0.07% respectively)  are well below the EU-27 
average  (1%  and  0.19%  respectively,  see 
in  Annex  19).  The 
more 
registration  tax  for  low-emission  cars  has 
recently  been  reduced,  but  the  current  tax 
regime does not sufficiently encourage people 
to  purchase  low  and  zero-emission  vehicles. 
indexation  of  environmental 
Moreover,  an 
charges  would  promote  sustainable 
tax 
revenues and address negative environmental 
externalities. 

information 

Slovakia  appears  to  be  particularly 
vulnerable  to  floods  in  and  wildfires. 
Between  1980  and  2020,  only  around  4%  of 
disaster losses were insured in SK.  The current 
protection  gap  for  wildfires  suggests  that  the 
insurance  coverage  remains  low  compared  to 
projected risk, and this could result in losses to 
be  covered  by  the  public  sector,  thereby 
potentially posing a risk to public finances. 

14 

 
 
 
  strengthening  the  capacity  of  the  public 
administration  to  deliver  the  reforms  and 
investments  and  to  continue  to  strengthen 
the  tax  compliance  and  digitisation  of  tax 
administration;  

  supporting  competitiveness  and  growth  of 
labour  productivity  by  addressing  skills 
mismatches  and  investing  in  green  and 
digital skills; 

  enhancing  social  inclusion,  in  particular  of 
Roma  people,  by  addressing 
regional 
disparities  in  the  access  to  social  services 
and  essential  infrastructure,  and  inclusion 
in education; 

  reducing  fossil  fuel  dependence  through 
reforms  and  investments  that  enable  the 
uptake  of  renewable  energy, 
including 
those that augment grid capacity, and lead 
to energy savings and energy efficiency, as 
well  as  continue 
to  diversify  energy 
imports,  especially  gas,  away  from  Russia 
while ensuring security of supply;  

  expanding  the  share  of  revenue  from 
environmental taxation in total tax revenue, 
especially  in  the  area  of  transport-related 
greenhouse gas and pollutant emissions.  

KEY FINDINGS 

Slovakia’s  recovery  and  resilience  plan 
includes measures to address a series of 
structural challenges through:  

  improving the availability of early childhood 
education  and  care;  increasing  the  quality, 
inclusiveness  and  digitalisation  of  schools; 
improving 
and 
relevance of higher education; and pursuing 
desegregation  of  Roma  pupils  throughout 
the education system; 

governance, 

quality 

  making 

investments 

building 
into 
railways, 
renovation,  modernisation  of 
decarbonisation  of 
industry,  deploying 
renewable  energy  sources,  strengthening 
nature  and  biodiversity  protection  and 
boosting the circular economy; 

  digitalising  the  public  and  private  sector 
and  reforming  R&I  governance  as  well  as 
funding; 

  introducing 

to 

reforms 

the 
efficiency  of  the  public  administration  and 
the  effectiveness  of  the  judicial  system  in 
line with European standards; 

improve 

  improving 

the 

cost-
effectiveness of the healthcare system and 
the optimisation of the healthcare network. 

resilience 

and 

Slovakia  should  maintain  the  momentum  in 
the steady implementation of the recovery and 
resilience  plan  and  swiftly 
the 
addendum,  including  the  REPowerEU  chapter, 
its 
with  a  view 
implementation. 

initiating 

finalise 

rapidly 

to 

Beyond  the  reforms  and  investments  in 
the RRP, Slovakia would benefit from:  

  reforming  property  taxation  and  increasing 
the supply of affordable housing to reduce 
concerns  about  the  housing  market  and 
household indebtedness;  

15 

 
 
 
 
ANNEXES 

 
 
 
 
LIST OF ANNEXES 

Cross-cutting indicators 

A1.  Sustainable Development Goals 

A2.  Progress in the implementation of country-specific recommendations 

A3.  Recovery and resilience plan - overview 

A4.  Other EU instruments for recovery and growth 

A5.  Resilience 

Environmental sustainability 

A6.  European Green Deal 

A7.  Energy security and affordability 

A8.  Fair transition to climate neutrality 

Productivity 

A9.  Resource productivity, efficiency and circularity 

A10.  Digital transformation 

A11.  Innovation 

A12.  Industry and single market 

A13.  Public administration 

Fairness 

A14.  Employment, skills and social policy challenges in light of the European Pillar of Social Rights 

A15.  Education and training 

A16.  Health and health systems 

A17.  Economic and social performance at regional level 

Macroeconomic stability 

A18.  Key financial sector developments 

A19.  Taxation 

A20.  Table with economic and financial indicators 

A21.  Debt sustainability analysis 

A22.  Macroeconomic imbalance procedure assessment matrix 

19 

22 

22 

25 

28 

30 

32 

33 

33 

38 

42 

45 

45 

47 

50 

53 

57 

59 

59 

62 

64 

66 

69 

69 

72 

74 

75 

78 

 
 
 
LIST OF TABLES 

A2.1. 
Summary table on 2019-2022 CSRs 
A3.1. 
Key elements of Slovakia’s RRP 
A5.1. 
Resilience indices summarising the situation across RDB dimensions and areas 
A6.1. 
Indicators tracking progress on the European Green Deal from a macroeconomic perspective 
A7.1. 
Key energy indicators 
A8.1. 
Key indicators for a fair transition in Slovakia 
A10.1.  Key Digital Decade targets monitored by DESI indicators 
A11.1.  Key innovations indicators 
A12.1. 
Industry and the Single Market 
A13.1.  Public administration indicators 
A14.1.  Social Scoreboard for Slovakia 
A14.2.  Situation of Slovakia on 2030 employment, skills and poverty reduction targets 
A15.1.  EU-level targets and other contextual indicators under the European Education Area strategic framework 
A16.1.  Key health indicators 
A17.1.  Selected indicators at regional level –Slovakia 
A18.1.  Financial soundness indicators 
A19.1.  Taxation indicators 
A20.1.  Key economic and financial indicators 
A21.1.  Debt sustainability analysis - Slovakia 
A21.2.  Heat map of fiscal sustainaibility risks - Slovakia 
A22.1.  Assessment of macroeconomic imbalances matrix 

LIST OF GRAPHS 

Progress towards the SDGs in Slovakia in the last 5 years 
Slovakia's progress on the 2019-2022 CSRs (2023 European Semester) 
Total grants disbursed under the RRF 
Fulfilment status of milestones and targets 
Disbursements per pillar 
Cohesion policy funds 2021-2027 in Slovakia: budget by fund 
Synergies between cohesion policy funds and the RRF with its six pillars in Slovakia 
Cohesion policy funds contribution to the SDGs in 2014-2020 and 2021-2027 in Slovakia 
Thematic – greenhouse gas emissions from the effort sharing sectors in Mt CO2eq, 2005-2021 
Energy mix (top) and electricity mix (bottom), 2021 
Thematic – environmental investment needs and current investment, p.a. 2014-2020 
Underground storage levels in Slovakia 
Share of gas consumption per sector, 2021 
Slovakia´s retail energy prices for industry (top) and households (bottom) 
Fair transition challenges in Slovakia 
Distributional impacts of energy prices due to rising energy expenditure (2021-2023) 

A1.1. 
A2.1. 
A3.1. 
A3.2. 
A3.3. 
A4.1. 
A4.2. 
A4.3. 
A6.1. 
A6.2. 
A6.3. 
A7.1. 
A7.2. 
A7.3. 
A8.1. 
A8.2. 
A11.1.  Patent applications filled under PCT in 2020 (per billion GDP in PPS) 
A12.1.  Labour productivity per person (in PPS and in % of the EU) 
A12.2.  Business environment and productivity drivers 
A13.1.  Slovakia. a) E-government maturity and e-government users, b) Open government data maturity indicator: 2022 scores (% 

of the total maximum score) (lhs); country ranking, overall score (rhs) 

A15.1.  Early leavers from education and training by region in Slovakia in 2013, 2018 and 2022 (%) 
A16.1.  Life expectancy at birth, years 
A16.2.  Projected increase in public expenditure on healthcare over 2019-2070 
A17.1.  GDP per capita (2010) and GDP growth (2011-2020) - Slovakia 
A17.2.  Labour productivity (real GVA per worker) developments, 2000-2020 
A18.1.  Evolution of credit activity 
A18.2.  Housing prices 
A19.1.  Tax revenues from different tax types, % of total revenue 
A19.2.  Tax wedge for single and second earners, % of total labour costs, 2022 

26 
28 
32 
33 
38 
42 
47 
50 
53 
58 
59 
60 
62 
64 
67 
69 
72 
74 
75 
77 
78 

24 
25 
29 
29 
29 
30 
30 
31 
33 
34 
35 
38 
39 
39 
42 
43 
51 
53 
54 

58 
62 
64 
64 
66 
66 
69 
70 
73 
73 

20 

 
 
 
LIST OF MAPS 

A17.1.  Population changes in Slovakia between 2011 and 2020 
A17.2.  Excess mortality in Slovakia during the COVID-19 pandemic 

67 
67 

21 

 
 
 
 
CROSS-CUTTING INDICATORS 
ANNEX 1: SUSTAINABLE DEVELOPMENT GOALS 

This  Annex  assesses  Slovakia’s  progress  on 
the  Sustainable  Development  Goals  (SDGs) 
along  the  four  dimensions  of  competitive 
sustainability.  The  17  SDGs  and  their  related 
indicators  provide  a  policy  framework  under  the 
UN’s  2030  Agenda  for  Sustainable  Development. 
The  aim  is  to  end  all  forms  of  poverty,  fight 
inequalities  and  tackle  climate  change  and  the 
environmental crisis, while ensuring that no one is 
left  behind.  The  EU  and  its  Member  States  are 
committed  to  this  historic  global  framework 
agreement  and  to  playing  an  active  role  in 
maximising  progress  on  the  SDGs.  The  graph 
below  is  based  on  the  EU  SDG  indicator  set 
developed  to monitor progress  on  the  SDGs  in  an 
EU context. 

indicators  related 

Slovakia  performs  very  well  or  is  improving 
to  environmental 
on 
sustainability (SDGs 2, 6, 9, 11, 13, 15) but is 
moving  away  on  SDG  7.  It  performs  well  in 
sustainable  mobility  as  the  share  of  public 

indexes  pertaining 

transport  increased  to  26.2%,  well  above  the  EU 
average of 17.2%. Slovakia has reduced its rate of 
severe  housing  deprivation  to  3.2%,  compared  to 
is  however 
the  EU  rate  of  4.3%.  Slovakia 
underperforming  on 
to 
affordable  and  clean  energy  (SDG  7).  While  the 
share of renewable energy increased from 12.9% 
to 17.4% in 2021, Slovakia’s capacity to generate 
renewable  energy  falls  below  the  EU  average  of 
21.8%.  Energy  productivity  has  only  slightly 
improved,  compared  to  the  progress  the  EU 
achieved in  the  same timeframe (from  4.8  to  5.0 
EUR/kgoe, 
the  average  EU 
improvement  of  7.8  to  8.6  EUR/kgoe).  Slovakia’s 
dependency  on  imported  energy  as  part  of  its 
overall energy mix decreased from 60.6% in 2016 
to 52,6% in 2021, which was slightly below the EU 
average of 55.5%. Slovakia also performs well on 
the share of recycling as part of overall municipal 
waste  with  the  country  more  than  doubling  this 
percentage from 23% in 2016 to 48.9% in 2021, 
well above the EU average of 49,6%. 

compared 

to 

Graph A1.1: Progress towards the SDGs in Slovakia in the last 5 years 

For detailed datasets on the various SDGs, see the annual Eurostat report ‘Sustainable development in the European Union’; for 
details on extensive country-specific data on the short-term progress of Member States: Key findings - Sustainable development 
indicators - Eurostat (europa.eu). The status of each SDG in a country is the aggregation of all the indicators for the specific goal 
compared to the EU average. A high status does not mean that a country is close to reaching a specific SDG, but signals that it is 
doing better than the EU on average. The progress score is an absolute measure based on the indicator trends over the past 5 
years. The calculation does not take into account any target values as most EU policy targets are only valid for the aggregate EU 
level. Depending on data availability for each goal, not all 17 SDGs are shown for each country. 
Source: Eurostat, latest update of early April 2023, except for the EU Labour Force Survey (LFS) indicators released on 27 April 
2023. Data mainly refer to 2016-2021 or 2017-2022. 

22 

 
 
 
 
 
 
Slovakia is progressing on its net greenhouse gas 
emissions, which have decreased from 6.3 tonnes 
per  capita  in  2016  to  5.9  in  2021,  performing 
better than the 2021 EU average of 7.4 tonnes per 
capita.  Investments  and  reforms  included  in  the 
recovery  and  resilience  plan’s  components  on 
renewables, 
industry  decarbonisation,  energy 
efficiency,  waste  disposal  and  R&D  will  boost 
Slovakia’s performance on environmental SDGs.  

Slovakia is performing very well on one SDG 
related to fairness (SDG 1) and is improving, 
albeit  at  an  uneven  pace,  on  most  of  the 
others  (SDGs  2,  3,  4,  5,  7,  8)  but  needs  to 
catch  up  with  the  EU  notably  on  SDG  4. 
Slovakia  performs  better  than  the  EU  on  one 
indicator on poverty and inequality (SDG 1), which 
is  predominantly  thanks  to  the  low  dispersion  of 
wages in the country. Although still lagging behind 
the  EU  average,  Slovakia  improved  on  some 
quality  education  indicators  (SDG  4),  such  as  the 
participation  in  early  childhood  education  (rising 
from  72.2%  in  2015  to  78.1%  in  2020).  The 
participation of adults in learning programmes and 
the  high  rate  of  early  school  dropouts  still  cause 
concern as these trends affect growth and overall 
productivity. On SDG 5 (Gender equality), Slovakia 
is  significantly  improving  on  the  ratio  of  senior 
management  positions  held  by  women  as  the 
percentage  of  female  board  members  doubled 
from  15.1%  in  2017  to  30.3%  in  2022,  hovering 
just  below  the  EU  average  of  32.2%.  Slovakia’s 
capacity 
to  provide  affordable  energy  has 
worsened  as  the  percentage  of  citizens  unable  to 
adequately heat their homes has risen from 5,1% 
in  2016  to  5,8%  in  2021.  However,  this  is  still 
below  the  EU  average  of  6,9%  in  2021.  The 
recovery and resilience plan includes measures to 
improve  pupils’  skills  and  to  render  the  various 
levels of the education system more inclusive and 
equitable,  i.e.  by  creating  more  places  in  pre-
school  establishments,  updating  school  curricula, 
tackling  segregation  of  the  Roma  population, 
providing  specialised  training  for  teachers  and 
raising 
for 
employing teaching staff (Components 6, 7, 8).   

prerequisites 

professional 

the 

Slovakia  is  improving  on  SDG  indicators 
related  to  productivity  (SDGs  4,  8,  9), 
although  its  expenditure  on  research  and 
development  have  been  stagnating  lately.  At 
0.93%  of  GDP 
is 
significantly below the EU average of 2.26%. This 
stifles  innovation  and  prevents  Slovakia  from 
its  productivity  by  employing  more 
boosting 

in  2021,  R&D  funding 

23 

as 

such 

to  patent 

inhabitants)  were  submitted 

technological 
solutions 
artificial 
cloud 
intelligence,  digitalisation,  automation, 
systems and other benefits of the latest scientific 
and  hi-tech breakthroughs.  The  ratio  of  personnel 
employed  in  R&D  has  slightly  increased  and 
reached  0.83%  of  the  active  population  in  2021. 
However,  it  remains  below  the  EU  average  of 
1.5%. Slovakia should provide more support to its 
researchers  and  companies 
their 
research  as  only  9  patent  applications  (per  one 
million 
in  2022 
compared  to  the  EU  average  of  151  patent 
applications  per  one  million  inhabitants.  Tertiary 
educational  attainment,  a  crucial  ingredient  for 
raising 
the  proficiency,  competitiveness,  and 
technological  aptitude  of  the  Slovak  population, 
has been steadily increasing and, at 39.1% of the 
population  aged  25-34  in  2022,  has  almost 
caught  up  with  the  EU  average  of  42%.  On  that 
note,  the  share  of  adults with  at least basic  level 
digital  skills  stood  at  55.2%  in  2021,  performing 
better than the EU average of 53.9%. Furthermore, 
the  proportion  of  adults  participating  in  learning 
remains improved significantly. In 2022, 12,8% of 
the  Slovak  adult  population  participated  in  a 
learning  course  in  the  past  four  weeks,  thus 
surpassing the EU average of 11,9.%. The share of 
households with an internet connection of at least 
100  Mbps  has  increased  to  66.7%  in  2021  (just 
below  the  EU  average  of  70.2%).  Investment  in 
digital 
infrastructure  and  educational  reforms 
outlined in the recovery and resilience plan should 
further improve long-term productivity. 

Slovakia  is  improving  on  SDG  indicators 
related  to  macroeconomic  stability  (SDGs  8 
and 16). Real GDP per capita in Slovakia has been 
increasing,  reaching  EUR 16,300  in  2022  in  real 
terms.  However,  with  convergence  slowing  down, 
the  country’s  performance  in  this  respect  is  still 
less  than  the  EU  average  of  EUR  28  820  that 
same  year.  The  investment  share  of  GDP  slightly 
dropped  from  21.1%  in  2017  to  20,4%  in  2022, 
trailing  behind  the  EU  average  of  23.2%.  The 
employment rate has been consistently increasing, 
reaching  76.7%  of  the  population  aged  20-64  in 
2022,  and  outpacing  the  EU  average  of  74,6%. 
The  long-term  unemployment  rate  has  slightly 
risen  (to  4.1%  in  2022),  now  standing  above  the 
EU  median  of  2.4%.  Measures  presented  in  the 
recovery  and  resilience  plan  should  stimulate 
much  needed  investment  and  help  further  reduce 
long-term unemployment. 

 
As the SDGs form an overarching framework, any 
links  to  relevant  SDGs  are  either  explained  or 
depicted with icons in the other Annexes. 

24 

 
ANNEX 2: PROGRESS IN THE IMPLEMENTATION OF COUNTRY-SPECIFIC 
RECOMMENDATIONS 

Graph A2.1: Slovakia's progress on the 2019-2022 
CSRs (2023 European Semester) 

The Commission has assessed the 2019-2022 
country-specific  recommendations  (CSRs) (22) 
addressed  to  Slovakia  as  part  of  the  European 
Semester. These recommendations concern a wide 
range of policy areas that are related to 15 of the 
17 Sustainable Development Goals (see Annexes 1 
and 3). The assessment considers the policy action 
the 
taken  by  Slovakia 
commitments  in  its  recovery  and  resilience  plan 
(RRP) (24).  At  this  stage  of  RRP  implementation, 
51%  of  the  CSRs  focusing  on  structural  issues 
from  2019-2022  have  recorded  at  least  ‘some 
progress’,  while  44%  recorded  ‘limited  progress’ 
(see  Graph A2.1).  As  the  RRP  is  implemented 
further,  considerable  progress 
in  addressing 
structural CSRs is expected in the years to come. 

to  date (23)  and 

Source: European Commission 

(22)  2022 CSRs: EUR-Lex - 32022H0901(25) - EN - EUR-Lex 

(europa.eu) 

      2021 CSRs: EUR-Lex - 32021H0729(26) - EN - EUR-Lex 

(europa.eu) 
2020 CSRs: EUR-Lex - 32020H0826(25) - EN - EUR-Lex 
(europa.eu) 
2019 CSRs: EUR-Lex - 32019H0905(25) - EN - EUR-Lex 
(europa.eu) 

(23)  Including policy action reported in the national reform 

programme and in Recovery and Resilience Facility (RRF) 
reporting (twice a year reporting on progress in implementing 
milestones and targets and resulting from the payment 
requests assessment). 

(24)  Member States were asked to effectively address all or a 

significant subset of the relevant country-specific 
recommendations issued by the Council in 2019 and 2020 in 
their RRPs. The CSR assessment presented here considers the 
degree of implementation of the measures included in the 
RRP and of those carried out outside of the RRP at the time 
of assessment. Measures laid down in the Annex of the 
adopted Council Implementing Decision on approving the 
assessment of the RRP, which are not yet adopted or 
implemented but considered credibly announced, in line with 
the CSR assessment methodology, warrant ‘limited progress’. 
Once implemented, these measures can lead to 
‘some/substantial progress or full implementation’, 
depending on their relevance. 

25 

No progress5%Limited progress44%Some progress42%Substantial progress7%Full implementation2% 
 
                                                 
 
  
 
 
 
Table A2.1: Summary table on 2019-2022 CSRs 

(Continued on the next page) 

26 

SlovakiaAssessment in May 2023*RRP coverage of CSRs until 2026**Revelant SDGs2019 CSR 1Some progressAchieve the medium-term budgetary objective in 2020.Not relevant anymoreNot applicableSDG 8, 16Safeguardthelong-termsustainabilityofpublicfinances,notablythat of the healthcare and pension systems.Some ProgressRelevant RRP measures implemented in 2022 and planned for 2023 and 2025.SDG 3, 82019 CSR 2Limited progressImprove the quality and inclusiveness of education at all levels and foster skills.Limited ProgressRelevant RRP measures implemented in 2022 and planned as of 2023. SDG 4, 8, 10Enhance access to affordable and quality childcare and long-term care.Limited ProgressRelevant RRP measures  implemented in 2022 and planned as of  2023, 2024SDG 3, 4, 5Promote integration of disadvantaged groups, in particular Roma.Limited ProgressRelevant RRP measures planned as of  2022, 2023, 2024SDG 1, 2, 4, 8, 102019 CSR 3Limited progressFocus investment-related economic policy on healthcare,Some ProgressRelevant RRP measures  implemented in 2022 and planned as of   2023, 2024, 2025SDG 3, 10, 11research and innovation,Some ProgressRelevant RRP measures implemented in 2022 and planned as of 2023SDG 9, 10, 11transport, notably on its sustainability,Limited ProgressRelevant RRP measures implemented in 2021 and 2022 and planned as of 2023, 2025 and 2026.SDG 10, 11digital infrastructure,Limited ProgressRelevant RRP measures planned as of 2023. SDG 9, 10, 11energy efficiency,Some ProgressRelevant RRP measures implemented in  2022 planned as of  2023, 2024 and 2026.SDG 7, 10, 11competitiveness of small and medium-sized enterprises,Some ProgressRelevant RRP measures planned as of 2023, 2024 and 2025.SDG 8, 9, 10, 11and social housing, taking into account regional disparities.Limited ProgressSDG 1, 2, 10, 11Increase the use of quality-related and lifecycle cost criteria in public procurement operations.Limited ProgressRelevant RRP measures implemented in  2022 and planned as of  2023.SDG 92019 CSR 4Some progressContinue to improve the effectiveness of the justice system, focussing on strengthening its independence, including on judicial appointments.Some ProgressRelevant RRP measures implemented in  2022 and planned as of  2023 and 2024.SDG 16Increaseeffortstodetectandprosecutecorruption,inparticularinlarge-scale corruption cases.Limited ProgressRelevant RRP measures implemented in  2022 and planned as of  2023.SDG 162020 CSR 1Some progressInlinewiththegeneralescapeclause,takeallnecessarymeasurestoeffectivelyaddressthepandemic,sustaintheeconomyandsupporttheensuingrecovery.Wheneconomicconditionsallow,pursuefiscalpoliciesaimedatachievingprudentmedium-termfiscalpositionsandensuringdebtsustainability,whileenhancinginvestment. Not relevant anymoreNot applicableSDG 8, 16Strengthentheresilienceofthehealthsystemintheareasofhealthworkforce, critical medical products and infrastructure.Limited ProgressRelevant RRP measures implemented in  2022 and planned as of 2023,2024 and 2025.SDG 3Improveprimarycareprovisionandcoordinationbetweentypesofcare.Some ProgressRelevant RRP measures implemented in  2022 and planned as of 2023,2024 and 2025. SDG 32020 CSR 2Some progressProvide adequate income replacement, Substantial ProgressSDG 1, 2, 8, 10and ensure access to social protection and essential services for all. Limited ProgressSDG 1, 2, 10Strengthen digital skills. Limited ProgressRelevant RRP measures implemented in  2022 and planned as of 2023 and 2024.SDG 4Ensure equal access to quality education.Limited ProgressRelevant RRP measures implemented in  2022 and planned as of 2023, 2024 and 2025SDG 4, 8, 102020 CSR 3Some progressEffectivelyimplementmeasurestoensureliquidityforsmallandmedium-sized enterprises and self-employed. Substantial ProgressSDG 8, 9Close digital infrastructure gaps. Limited ProgressRelevant RRP measures planned as of 2023 and 2024.SDG 9Front-load mature public investment projects Some ProgressRelevant RRP measures implemented in  2021 and 2022 and planned as of 2023, 2024, 2025  and 2026.SDG 8, 16and promote private investment to foster the economic recovery. Some ProgressRelevant RRP measures implemented in  2021 and 2022 and planned as of 2023, 2024, 2025  and 2026.SDG 8, 9Focusinvestmentonthegreenanddigitaltransition,inparticularonclean and efficient production and use of energy and resources, Some ProgressRelevant RRP measures implemented in  2021 and 2022 and planned as of 2023, 2024 and 2026.SDG 6, 7, 9, 12, 13, 15sustainable public transport, Limited ProgressRelevant RRP measures implemented in   2022 and planned as of 2023, 2025 and 2026.SDG 11and waste management. Some ProgressRelevant RRP measures implemented in 2022.SDG 6, 12, 15 
 
 
 
  
 
Table (continued) 

Note: 
* See footnote (24). 
** RRP measures included in this table contribute to the implementation of CSRs. Nevertheless, additional measures outside the 
RRP may be necessary to fully implement CSRs and address their underlying challenges. Measures indicated as ‘being 
implemented’ are only those included in the RRF payment requests assessed by the European Commission.  
Source: European Commission. 

27 

2020 CSR 4Some progressEnsureeffectivesupervisionandenforcementoftheanti-moneylaundering framework. Some ProgressRelevant RRP measures implemented in 2022 and planned as of 2023.SDG 8, 16Ensure a favourable business environment Some ProgressRelevant RRP measures planned as of 2023, 2024 and 2025.SDG 8, 9and quality public services through enhanced coordination and policy-making. Limited ProgressRelevant RRP measures planned as of 2022, 2023, 2024 and 2026.SDG 10, 11, 16Address the integrity concerns in the justice system.Some ProgressRelevant RRP measures implemented in  2022 and planned as of  2023 and 2024.SDG 162021 CSR 1Some progressIn2022,maintainasupportivefiscalstance,includingtheimpulseprovidedbytheRecoveryandResilienceFacility,andpreservenationally financed investment. Some ProgressNot applicableSDG 8, 16Wheneconomicconditionsallow,pursueafiscalpolicyaimedatachievingprudentmedium-termfiscalpositionsandensuringfiscalsustainability in the medium term. Some ProgressNot applicableSDG 8, 16Atthesametime,enhanceinvestmenttoboostgrowthpotential.Payparticularattentiontothecompositionofpublicfinances,onboththerevenueandexpendituresidesofthebudget,andtothequalityofbudgetarymeasuresinordertoensureasustainableandinclusiverecovery.Prioritisesustainableandgrowth-enhancinginvestment,inparticularinvestmentsupportingthegreenanddigitaltransition. Full implementationNot applicableSDG 8, 16Giveprioritytofiscalstructuralreformsthatwillhelpprovidefinancingforpublicpolicyprioritiesandcontributetothelong-termsustainabilityofpublicfinances,including,whererelevant,bystrengtheningthecoverage,adequacyandsustainabilityofhealthand social protection systems for all.Some ProgressNot applicableSDG 8, 162022 CSR 1Limited ProgressIn2023,ensurethatthegrowthofnationallyfinancedprimarycurrentexpenditureisinlinewithanoverallneutralpolicystance,takingintoaccountcontinuedtemporaryandtargetedsupporttohouseholdsandfirmsmostvulnerabletoenergypricehikesandtopeoplefleeingUkraine.Standreadytoadjustcurrentspendingtotheevolving situation.No ProgressNot applicableSDG 8, 16Expandpublicinvestmentforthegreenanddigitaltransitions,andforenergysecuritytakingintoaccounttheREPowerEUinitiative,includingbymakinguseoftheRecoveryandResilienceFacilityandother Union funds.Substantial ProgressRelevant RRP measures planned as of 2023SDG 8, 16Fortheperiodbeyond2023,pursueafiscalpolicyaimedatachieving prudent medium-term fiscal positions.Some ProgressNot applicableSDG 8, 16Makethetaxmixmoreefficientandmoresupportivetoinclusiveandsustainablegrowth,includingbyleveragingthepotentialofenvironmental and property taxation.No ProgressNot applicableSDG 8, 10, 12Continuetostrengthentaxcompliance,includingbyfurtherdigitalising tax administration.Limited ProgressNot applicableSDG 8, 9, 162022 CSR 2Proceedwiththeimplementationofitsrecoveryandresilienceplan,inlinewiththemilestonesandtargetsincludedintheCouncilImplementing Decision of 13 July 2021.Submitthe2021-2027cohesionpolicyprogrammingdocumentswithaviewtofinalisingtheirnegotiationswiththeCommissionandsubsequently starting their implementation.2022 CSR 3Limited progressReduceoverallrelianceonfossilfuelsanddiversifyimportsoffossilfuels.Limited ProgressRelevant RRP measures planned as of 2023SDG 7, 9, 13Acceleratethedeploymentofrenewablesbyfurtherfacilitatinggridaccess,introducingmeasurestostreamlinepermittingandadministrative proceduresLimited ProgressRelevant RRP measures planned as of 2023SDG 7, 8, 9, 13and modernising the electricity network.Limited ProgressRelevant RRP measures planned as of 2023, 2024 and 2025SDG 7, 9, 13Reduce reliance on natural gas in heating and industry.Limited ProgressRelevant RRP measures planned as of 2023SDG 7, 9, 13Adjustrenovationpoliciestoaccelerateandincentivisedeeprenovations of buildings.Some ProgressRelevant RRP measures being implemented as of 2022SDG 7RRP implementation is monitored by assessing RRP payment requests and analysing reports published twice a year on the achievement of the milestones and targets. These are to be reflected in the country reports. Progress on the cohesion policy programming documents is monitored under the EU cohesion policy. 
 
  
 
ANNEX 3: RECOVERY AND RESILIENCE PLAN - OVERVIEW 

is  published  in  the  Recovery  and  Resilience 
Scoreboard (25).  The  Scoreboard  also  gives  an 
overview  of  the  progress  made  in  implementing 
the RRF as a whole, in a transparent manner. The 
graphs in this Annex show the current state of play 
of  the  milestones  and  targets  to  be  reached  by 
Slovakia 
as 
subsequently 
satisfactorily fulfilled by the Commission. 

assessed 

and 

Table A3.1: Key elements of Slovakia’s RRP 

Source: RRF Scoreboard 

The  Recovery  and  Resilience  Facility  (RRF)  is 
the centrepiece of the EU’s efforts to help it 
recover  from  the  COVID-19  pandemic,  speed 
up  the  twin  transition  and  strengthen 
resilience  against  future  shocks.  The  RRF 
also  contributes  to  implementation  of  the 
SDGs  and  helps  to  address  the  Country 
Specific  Recommendations  (see  Annex 2). 
its  current  recovery  and 
Slovakia  submitted 
(RRP)  on  29 April 2021.  The 
resilience  plan 
on 
Commission’s 
positive 
16 June 2021 
on 
and 
Council’s 
the  way  for  disbursing 
13 July 2021  paved 
EUR 6.3  billion  in  grants  under  the  RRF  over  the 
2021-2026 period.   

assessment 

approval 

into  force  of  the  RRF 
Since  the  entry 
Regulation  and  the  assessment  of  the 
national  recovery  and  resilience  plans, 
geopolitical  and  economic  developments 
have caused major disruptions across the EU. 
In  order  to  effectively  address  these  disruptions, 
the  (adjusted)  RRF  Regulation  allows  Member 
States to amend their recovery and resilience plan 
for  a  variety  of  reasons.  In  line  with  article  11(2) 
of the RRF, the maximum financial contribution for 
Slovakia was moreover updated on 30 June 2022 
to an amount of EUR 6 billion in grants. 

In this context, Slovakia submitted an amended 
RRP  to  the  Commission  on  26  April  2023  to 
take  account  of  its  revised  maximum  financial 
contribution,  in  line  with  Article  18  of  the  RRF 
Regulation  and  due  to  objective  circumstances 
that make it no longer possible to achieve certain 
milestones  and  targets  in  the  RRP  in  line  with 
Article  21  of  the  RRF  Regulation.  The  reduced 
financial allocation (EUR 300 million in RRF grants) 
spreads  across  the  whole  RRP,  leading  to  a 
proportional  reduction  of  targets.  The  scope  and 
timeline of a number of measures in areas such as 
education,  health  and  long-term  care,  transport 
and  justice,  were  considered  to  be  negatively 
affected by inflation on construction costs, market 
shortages  and  delays.  The  revised  RRP  includes  a 
new  REPowerEU  chapter  with  additional 
reforms  and  investments  covering  four  thematic 
areas:  renewables  and  grids,  energy  efficiency, 
transport and green skills. This is part of the EU’s 
efforts  to  respond  to  the  economic  hardship 
and global energy market disruptions caused 
by Russia’s invasion of Ukraine. 

Slovakia’s  progress  in  implementing  its  plan 

(25)  https://ec.europa.eu/economy_finance/recovery-and-

resilience-scoreboard/country_overview.html 

28 

Current RRPScope Initial planCID adoption date (date of submission) 13 July 2021Total allocation EUR 6.3 billion in grants (6.5% of 2021 GDP)Investments and reforms 58 investments and 58 reforms Total number of milestones and targets196 
 
 
     
 
 
 
                                                 
 
 
 
Graph A3.1: Total grants disbursed under the RRF 

and  to  fight  money  laundering  and  to  accelerate 
procurement  procedures,  as  well  as  investments 
aimed at the protection of nature and biodiversity. 

Graph A3.2: Fulfilment status of milestones and 
targets 

This graph displays the share of satisfactorily fulfilled 
milestones and targets. A milestone or target is satisfactorily 
fulfilled once a Member State has provided evidence to the 
Commission that it has reached the milestone or target and 
the Commission has assessed it positively in an implementing 
decision. 
Source: RRF Scoreboard 

Note: This graph displays the amount of grants disbursed so 
far under the RRF. Grants are non-repayable financial 
contributions. The total amount of grants given to each 
Member State is determined by an allocation key and the 
total estimated cost of the respective RRP. 
Source: RRF Scoreboard 

Slovakia’s  second  payment  request  was  positively 
assessed  by  the  Commission,  taking  into  account 
the  opinion  of  the  Economic  and  Financial 
Committee,  leading  to  EUR  708.8  million  being 
disbursed 
(net  of  pre-
financing)  on  22 March 2023.  The  related  16 
milestones and targets cover reforms of education 
and  training,  healthcare,  research  and  innovation, 
to  attract  skilled  workers,  boost 
measures 
digitalisation and make the economy more circular 

in  financial  support 

Graph A3.3: Disbursements per pillar 

Note: Each disbursement reflects progress in the implementation of the RRF, across the six policy pillars. This graph displays how 
disbursements under the RRF (excluding pre-financing) relate to the pillars. The amounts were calculated by linking the milestones 
and targets covered by a given disbursement to the pillar tagging (primary and secondary) of their respective measures. 
Source: RRF Scoreboard 

29 

€ 1.93billionSatisfactorily fulfilledNot fulfilled0 mln150 mln300 mln450 mlnGreen transitionDigitaltransformationSmart,sustainable andinclusive growthSocial andterritorialcohesionHealth, andeconomic, socialand institutionalresiliencePolicies for thenext generation 
 
     
     
     
ANNEX 4: OTHER EU INSTRUMENTS FOR RECOVERY AND GROWTH 

The  EU  budget  of  over  EUR  1.2  trillion  for 
2021-2027  is  geared  towards  implementing 
the  EU’s  main  priorities.  Cohesion  policy 
investment amounts to EUR 392 billion across the 
EU and represents almost a third of the overall EU 
budget, including around EUR 48 billion invested in 
line with REPowerEU objectives. 

Graph A4.1: Cohesion policy funds 2021-2027 in 
Slovakia: budget by fund 

European Social Fund Plus (ESF+) allocates notably 
EUR 353 million to the thematic area of education 
and  skills,  with  EUR  535  million  dedicated  to  the 
development of digital skills and jobs. his funding 
will  be  stronger  green  and  digital  skills  thanks  to 
support  for  digital  reskilling/upskilling,  including 
to 
through 
educational  curricula  adapted 
twin 
transitions.  

individual  earning  accounts,  and 

the 

to 

in 

invested 

Of  the  investments  mentioned  above,  EUR  2 
billion  will  be 
line  with 
REPowerEU objectives. This is on top of the EUR 
1 billion dedicated to REPowerEU under the 2014-
2020 budget. EUR 1 332 million (2021-2027) and 
EUR  782  million  (2014-2020)  is  for  improving 
energy  efficiency;  EUR  665  million  (2021-2027) 
and EUR 248 million (2014-2020) is for renewable 
energy and low-carbon R&I.  

(1) million EUR in current prices, % of total; (total amount 
including EU and national co-financing) 
Source: European Commission, Cohesion Open Data 

Graph A4.2: Synergies between cohesion policy 
funds and the RRF with its six pillars in Slovakia 

(ERDF) (27)  will  boost 

In  2021-2027,  in  Slovakia,  cohesion  policy 
funds (26)  will  invest  EUR  8.5  billion  in  the 
green  transition  and  EUR  0.5  million  in  the 
digital  transformation  as  part  of  the 
country’s total allocation of EUR 16.1 billion. 
In  particular,  the  European  Regional  Development 
Fund 
research  and 
innovation,  digitalisation  and  energy  efficiency. 
lie  at  the  heart  of  ERDF  support  to 
SMEs 
companies,  and  financial 
instruments  will  be 
deployed widely to improve their access to finance. 
Over 16 000 households will improve their energy 
performance  and  20 000  will  get  high-capacity 
internet  connection.  Particular  attention  should  be 
paid 
to  ensuring  administrative  capacity  at 
regional and local levels to implement investment 
projects, 
in  particular  for  marginalised  Roma 
communities.  The  Just  Transition  Fund  will 
facilitate  the  green  transition  and  foster  job 
creation in regions with coal mining and emission-
intensive industries. This will help Slovakia fulfil its 
commitment  to  phase  out  coal  extraction  and 
coal-based electric power generation by 2023. The 

(1) million EUR in current prices (total amount, including EU 
and national co-financing)   
Source: European Commission  

In  2014-2020,  cohesion  policy  funds  made 
EUR 14.3 billion available to Slovakia (28), with 
an  absorption  of  72% (29). 
Including  national 
financing,  the  total  investment  amounted  to  EUR 
17.8 billion - around 3% of GDP for 2014-2020.  

flexibility 

Slovakia  continues  to  benefit  from  cohesion 
policy 
support  economic 
to 
recovery,  step  up  convergence  and  provide 
vital support to regions following the COVID-
19  pandemic.  The  Recovery  Assistance  for 
Cohesion and the Territories of Europe instrument 

(26)  European Regional Development Fund (ERDF), Cohesion Fund 
(CF), European Social Fund+ (ESF+), Just Transition Fund 
(JTF) excluding Interreg programmes. Total amount includes 
national and EU contributions. Data source: Cohesion Open 
Data. 

(28)  Cohesion policy funds include the ERDF, CF, ESF and the 
Youth Employment Initiative (YEI). ETC programmes are 
excluded here. According to the ‘N+3 rule’, the funds 
committed for 2014-2020 must be spent by 2023. REACT-
EU is included in all figures. The total amount includes EU 
and national co-financing. Data source: Cohesion Open Data. 

(27)  ERDF’s expected achievements from the 2021-2027 

(29)  2014-2020 Cohesion policy EU payments by MS is updated 

programmes. 

daily on Cohesion Open Data.   

30 

2,92418%9,73460%2,83518%6544%CFERDFESF+JTF8,391 769 2,997 3,309 780 320 8,474 541 2,113 3,504 166 727 0100020003000400050006000700080009000Green transitionDigitaltransformationSmart, sustainableand inclusivegrowthSocial and territorialcohesionHealth, economic,social andinstitutionalresiliencePolicies for the nextgenerationEU CP 2014-2020 (million EUR)EU CP 2021-2027 (million EUR) 
 
  
                                                 
   
                                                 
 
 
(REACT-EU) (30)  under  NextGenerationEU  provides 
EUR  745  million  on  top  of  the  2014-2020 
cohesion  policy  allocation  for  Slovakia.  REACT-EU 
financed close to 2 million COVID-19 vaccines and 
other  medical  supplies.  Close  to  5 500  SMEs 
received  loans  to  overcome  the  lockdown  period 
and  450,000  workers  benefited  from  short-time 
work  and  similar  schemes.  With  SAFE  (Supporting 
Affordable  Energy),  the  2014-2020  cohesion 
policy funds may also be mobilised by Slovakia to 
support 
and 
companies  particularly  affected  by  high  energy 
prices.  In  addition,  Cohesion’s  Action  for  Refugees 
in Europe (CARE) supports Slovakia and its regions 
in  providing  emergency  assistance  to  people 
fleeing  from  Russia’s  invasion  of  Ukraine  with  a 
total budget of EUR 41 million.   

households, 

vulnerable 

jobs 

In both 2014-2020 and 2021-2027, cohesion 
policy  funds  have  contributed  substantially 
the  Sustainable  Development  Goals 
to 
(SDGs).  These  funds  support  11  of  the  17  SDGs, 
notably  SDG  9 
innovation  and 
‘industry, 
infrastructure’  and  SDG  8 
‘decent  work  and 
economic growth’ (31).  

Graph A4.3: Cohesion policy funds contribution to 
the SDGs in 2014-2020 and 2021-2027 in 
Slovakia 

for 

Fund 

Agricultural 

with  EUR  3.4  billion  in  2023-2027.  The  two  CAP 
Funds  (European  Agricultural  Guarantee  Fund  and 
European 
Rural 
Development),  contribute  to  the  European  Green 
Deal while ensuring long-term food security. They 
promote  social,  environmental  and  economic 
sustainability  and  innovation  in  agriculture  and 
rural  areas,  in  coordination  with  other  EU  funds. 
The European Maritime, Fisheries and Aquaculture 
Fund  makes  EUR  15  million  available  in  2021-
2027.  

Slovakia  also  benefits  from  other  EU 
programmes,  notably  the  Connecting  Europe 
Facility,  which  under  CEF  2  (2021-2027)  has  so 
far  allocated  EU  funding  of  EUR  223.3  million  to 
seven  specific  projects  on  strategic  transport 
networks.  Similarly,  Horizon  Europe  has  so  far 
allocated more than EUR 300 million to Slovak R&I 
actors,  while  in  the  previous  programming  period, 
Horizon  2020  earmarked  EUR  1.4  billion.  The 
Public  Sector  Loan  Facility  established  under  the 
Just Transition Mechanism makes EUR 34.8 million 
of  grant  support  from  the  Commission  available 
for  projects  located  in  Slovakia  for  2021-2027, 
which will be combined with loans from the EIB to 
support  investments  by  public  sector  entities  in 
just transition regions.  

received 

support  under 

Slovakia 
the 
European  instrument  for  temporary  support 
in  an 
to  mitigate  unemployment  risks 
emergency  (SURE)  to  finance  short-time  work 
schemes to mitigate the impact of COVID-19. The 
Council granted financial assistance to Slovakia of 
EUR 630 million in loans, which supported around 
30%  of  workers  and  25%  of  firms  in  2020,  and 
around 11% of workers and 15% of firms in 2021. 

(1) 5 largest contributions to SDGs in million (EUR) current 
prices 
Source: European Commission  

Other  EU  funds  make  significant  resources 
available for Slovakia. The common agricultural 
policy  (CAP)  made  EUR  5.5  billion  available  in 
2014-2022,  and  will  continue  to  support  Slovakia 

(30)  REACT-EU allocation on Cohesion Open Data. 

(31)  Other EU funds contribute to the implementation of the 
SDGs. In 2014-2022, this includes both the European 
Agricultural Fund for Rural Development (EARDF) and the 
European Maritime and Fisheries Fund (EMFF). 

Instrument 
designing 

(TSI) 
The  Technical  Support 
and 
supports 
in 
Slovakia 
implementing  growth-enhancing 
reforms, 
including  the  implementation  of  its  recovery 
and resilience plan (RRP). Slovakia has received 
significant  support  since  2016,  including  for:  (i) 
local  and  regional  governance;  (ii) 
reforming 
identifying 
reforms  and 
the  most  suitable 
investments in line with the REPowerEU plan; and 
(iii) increasing the efficiency of public spending (32).   

(32)  Country factsheets on reform support are available here. 

31 

6,2063,3781,2757289584,8982,7162,1981,58981801,0002,0003,0004,0005,0006,0007,000SDG 9 Industry,innovation,infrastructureSDG 8 Decent workand economicgrowthSDG 7 Affordableand clean energySDG 1 No povertySDG 6 Clean waterand sanitationEU CP 2014-2020 (millions EUR)EU CP 2021-2027 (millions EUR) 
     
                                                 
                                                 
ANNEX 5: RESILIENCE 

This  Annex  illustrates  Slovakia’s  relative 
resilience capacities and vulnerabilities using 
the  Commission’s 
resilience  dashboards 
(RDB) (33).  Comprising  a  set  of  124  quantitative 
indicators,  the  RDB  provide  broad  indications  of 
Member  States’  ability  to  make  progress  across 
four interrelated dimensions: social and economic, 
green, digital, and geopolitical. The indicators show 
vulnerabilities (34)  and  capacities (35)  that  can 
become  increasingly  relevant,  both  to  navigate 
ongoing  transitions  and  to  cope  with  potential 
future shocks. In doing so, the RDB help to identify 
areas  for  further  analysis  to  build  stronger  and 
more  resilient  economies  and  societies.  They  are 
summarised  in  Table  A5.1  as  synthetic  resilience 
indices,  which 
relative 
situation for each of the four dimensions and their 
underlying areas for Slovakia and the EU-27 (36). 

the  overall 

illustrate 

in 

the  other 

capacities  in  the  social  and  economic  dimension, 
three 
and  medium  capacities 
dimensions.  Slovakia  shows  stronger  capacities 
than  the  EU  average  in  the  areas  ‘raw  material 
and  energy  supply’  (due  mainly  to  increasing 
supplier diversification) and, notably, ‘value chains 
and  trade’  (due  mainly  to  both  high  intra  and 
extra-EU  trade  openness).  There  is  room  for 
improving  capacities  compared  to  the  EU  in  all 
areas  of  the  social  and  economic  dimension  (for 
example,  in  terms  of  healthy  life  years  at  birth, 
preventable and treatable mortality, and childcare 
access),  but  also  in  relation  to  ‘climate  change 
mitigation  and  adaptation’, 
‘digitalisation  for 
industry’,  ‘cybersecurity’,  ‘financial  globalisation’ 
and ‘security and demography’. 

Table A5.1: Resilience indices summarising  the 
situation across RDB dimensions and areas 

According  to  the  set  of  resilience  indicators 
under the RDB, Slovakia generally displays a 
similar  level  of  vulnerabilities  compared  to 
the  EU  average.  Slovakia  shows  medium-low 
vulnerabilities in the green dimension, and medium 
vulnerabilities  in  the  social  and  economic,  digital 
and  geopolitical  dimensions. 
It  has  higher 
vulnerabilities  than  the  EU  average  in  relation  to 
‘inequalities  and  social  impact  of  the  transitions’ 
(due  mainly  to  high  employment  in  energy-
intensive 
sectors), 
‘digitalisation  for  industry’  (due  to  gender  and 
access  gaps  in  ICT)  and  ‘financial  globalisation’ 
(due  to  high  outward  FDI  concentration).  Slovakia 
has  lower  vulnerabilities  in  the  areas  ‘climate 
change  mitigation  and  adaptation’,  ‘sustainable 
use of resources’, ‘cybersecurity’ and ‘security and 
demography’. 

automation-prone 

and 

(1) Data are for 2021, and EU-27 refers to the value for the 
EU as a whole. Data underlying EU-27 vulnerabilities in the 
area ‘value chains and trade’ are not available as they 
comprise partner concentration measures that are not 
comparable with Member States’ level values.  
Source: JRC Resilience Dashboards - European Commission 

Compared to the EU average, Slovakia shows 
an overall lower level of capacities across all 
RDB  indicators.  It  has  medium-low  resilience 

(33)  For details see https://ec.europa.eu/info/strategy/strategic-
planning/strategic-foresight/2020-strategic-foresight-
report/resilience-dashboards_en; see also 2020 Strategic 
Foresight Report (COM(2020) 493).  

(34)  Vulnerabilities describe features that can exacerbate the 

negative impact of crises and transitions, or obstacles that 
may hinder the achievement of long-term strategic goals. 

(35)  Capacities refer to enablers or abilities to cope with crises 
and structural changes and to manage the transitions.  

(36)  This Annex is linked to Annex 1 on SDGs, Annex 6 on the 
green deal, Annex 8 on the fair transition to climate 
neutrality, Annex 9 on resource productivity, efficiency and 
circularity, Annex 10 on the digital transition and Annex 14 
on the European pillar of social rights. 

32 

SKEU-27SKEU-27Vulnerabilities IndexHighMedium-highMediumMedium-lowLowNot availableCapacities IndexHighMedium-highMediumMedium-lowLowNot availableDimension/AreaVulnerabilitiesCapacitiesSocial and economicHealth, education and workInequalities and social impact of the transitionsGreenEconomic & financial stability and sustainabilitySustainable use of resourcesClimate change mitigation & adaptationDigitalEcosystems, biodiversity, sustainable agricultureDigital for industryDigital for personal spaceCybersecurityDigital for public spaceRaw material and energy supplyGeopoliticalValue chains and tradeFinancial globalisationSecurity and demography 
 
                                                 
 
  
 
 
 
ENVIRONMENTAL SUSTAINABILITY 
ANNEX 6: EUROPEAN GREEN DEAL 

green 

transition 

requires 
Slovakia’s 
continued  action  on 
renewable  energy, 
energy  efficiency  and  sustainable  transport 
among  others.  Implementation  of  the  European 
Green  Deal  is  underway  in  Slovakia;  this  Annex 
provides a snapshot of the key areas involved (37). 

less  than 

Slovakia  has  not  yet  defined  all  the  climate 
policy  measures  it  needs  to  reach  its  2030 
climate 
target  for  the  effort  sharing 
sectors (38).  Data  for  2021  on  greenhouse  gas 
emissions  in  these  sectors  are  expected  to  show 
its  annual 
the  country  generated 
emission  allocations (39).  Current  policies 
in 
Slovakia  are  projected  to  keep  the  increase  of 
these emissions contained at 9% relative to 2005 
levels  in  2030.  The  additional  measures  tabled 
would  contain  them  at  an  increase  of  1%.  This is 
too  high  to  comply  with  the  effort  sharing  target 
even before the target was made more ambitious 
to  meet  the  EU’s  55%  objective, 
let  alone 
Slovakia’s  new  target  to  reduce  emissions  by 
22.7% (40). In its recovery and resilience plan (RRP), 
Slovakia  has  allocated  43  %  of  its  Recovery  and 

(37)  The overview in this Annex is complemented by the 

information provided in Annex 7 on energy security and 
affordability, Annex 8 on the fair transition to climate 
neutrality and environmental sustainability, Annex 9 on 
resource productivity, efficiency and circularity, Annex 11 on 
innovation, and Annex 19 on taxation. 

(38)  Member States’ greenhouse gas emission targets for 2030 
(‘effort sharing targets’) were increased by Regulation (EU) 
2023/857 (the Effort Sharing Regulation) amending 
Regulation (EU) 2018/842, aligning the action in the 
concerned sectors with the objective to reach EU-level, 
economy-wide greenhouse gas emission reductions of at 
least 55% relative to 1990 levels. The Regulation sets 
national targets for sectors outside the current EU Emissions 
Trading System, notably: buildings (heating and cooling), road 
transport, agriculture, waste, and small industry. Emissions 
covered by the EU ETS and the Effort Sharing Regulation are 
complemented by net removals in the land use sector, 
regulated by Regulation (EU) 2018/841 (the Land Use, Land 
Use Change and Forestry (LULUCF) Regulation) amended by 
Regulation (EU) 2023/839. 

(39)  Slovakia's annual emission allocations for 2021 were some 
22.8 Mt CO2eq, and its approximated 2021 emissions were 
at 20.0 Mt (see European Commission, Accelerating the 
transition to climate neutrality for Europe’s security and 
prosperity: EU Climate Action Progress Report 2022, 
SWD(2022)343). 

(40)  See the information on the distance to the 2030 climate 

policy target in Table A6.1. Existing and additional measures 
as of 15 March 2021. 

Resilience  Facility  grants  to  key  reforms  and 
investments to attain climate objectives (41). 

Graph A6.1: Thematic – greenhouse gas emissions 
from the effort sharing sectors in Mt CO2eq, 
2005-2021 

Source: European Environmental Agency. 

The capacity of Slovakia’s land use sector to 
remove  carbon  can  only  be  upheld  with 
afforestation  and  reforestation  and  better 
landscape  protection  and  management. 
Despite increases in 1992 and 2020 due to lower 
harvesting,  net  removals  through  Slovakia’s  land 
use  sector  are  shrinking  due  to  the  unbalanced 
age  structure  of  its  forests.  Slovakia’s  land  use, 
land-use  change  and  forestry 
(LULUCF)  net 
removals  target  for  2030  implies  to  remove 
6 821 kt CO2eq (see Table A6.1) (42).  

Fossil  fuels  and  nuclear  energy  play  a 
substantial  role  in  Slovakia’s  energy  mix 
with  renewable  energy  playing  a  more 
secondary  role.  In  2021,  natural  gas  accounted 
for  26%  of  Slovakia’s  energy  mix,  and  coal  for 
16%,  while  oil  makes  up  21%.  Nuclear  is  also  a 
very  significant  component  in  Slovakia’s  energy 
mix,  amounting  to  23%,  while  renewables  only 
make  up  14%  of  the  total  energy  mix.  Slovakia’s 
renewables  target  presented  in  the  NECP  is  24%. 
However,  the  current  trajectory  is  at  19.2%.  In 
2021,  Slovakia’s  electricity  mix  was  substantially 
fuelled  by  nuclear  energy  (53%),  with  only  a 
quarter  coming  from  renewable  sources.  Natural 
gas  comes  in  third,  with  15%.  The  Nováky  coal 
power  plant  will  stop  receiving  subsidies  to  burn 
local coal by the end of 2023, as set out under the 

(41)  For example, investments in industrial decarbonisation, 

energy efficiency, rail expansion, water retention and nature 
restoration measures.  

(42)  This value is indicative and will be updated in 2025 (as 

mandated by Regulation (EU) 2023/839). 

33 

051015202520052021Domestic transport (excl. aviation)Buildings (under ESR)AgricultureSmall industryWaste 
 
 
                                                 
      
                                                 
 
 
action  plan  for  the  transformation  of  the  Upper 
Nitra  Coal  Region,  but  a  specific  date  for  the 
closure of the plant has not been set yet. 

storage)  and  will  improve  the  possibilities  to 
connect new renewable sources to the grid. 

Graph A6.2: Energy mix (top) and electricity mix 
(bottom), 2021 

The energy mix is based on gross inland consumption and 
excludes heat and electricity. The share of renewables 
includes biofuels and non-renewable waste.  
Source: Eurostat 

Renewable  energy  plays  a  significant  role  in 
decarbonising  Slovakia’s  energy  system. 
Slovakia’s  target of  19.2%  of  share  of  energy 
from  renewable  sources  in  gross  final  energy 
consumption  by  2030  included  in  the  NECP  was 
considered  unambitious  in  the  2020  assessment 
by the Commission. Slovakia will need to increase 
its  renewable  energy  target  in  the  updated  NECP 
to  reflect  the  more  ambitious  EU  climate  and 
energy targets in the Fit for 55 Package and in the 
REPowerEU  Plan.  The  RRP  envisages  direct 
investments which are set to increase the installed 
renewables  capacity  by  120 MW,  representing 
approximately  20%  of  its  current  wind  and  solar 
capacity.  The  plan  envisages  key  reforms  in  the 
area of market design and support to renewables 
which will set the basis for an accelerated uptake 
of  clean  energy  in  Slovakia.  In  particular,  the 
legal  framework  will  facilitate  new 
updated 
activities  and  access  for  participants  to  the 
communities, 
electricity  market 
electricity 
aggregators, 

self-consumers,  and 

(energy 

in 

improved 

promoting 

through  a 

Slovakia’s  RRP  focuses  on  energy  efficiency, 
particularly 
large-scale  and 
comprehensive  renovation  wave  of  family 
houses, 
energy 
performance and adaptation to the changing 
climate  (e.g.,  green  roofs,  water  retention 
systems).  Slovakia’s  NECP  targets  for  primary 
and final energy consumption (PEC and FEC) were 
considered  of 
the  2020 
low  ambition 
Commission  assessment.  Based  on  the  energy 
consumption trajectory for 2018-2021, Slovakia is 
not  expected  to  be  on  track  to  meet  its  2030 
targets  nor  for  PEC  or  for  FEC,  as  these  were 
notified  in  its  NECP. (43)  The  investment  in  the 
Slovak  RRP  of  EUR  528  million  will  result  in 
30 000  family  houses  being  renovated  and  at 
least 30% primary energy savings on average. To 
reach  out  to  homeowners,  regional  centres  have 
a 
been 
created 
communication 
the 
campaign. 
investment  will  promote 
recycling  of 
of 
construction  materials 
demolition  waste  supported  by  a  reform  offering 
simplified and user-friendly access to the support 
schemes.  The  Slovak  RRP  also  pledges  to  invest 
EUR 206.6  million 
into  renovating  public  and 
protected historic buildings to improve their energy 
efficiency.  

In  addition, 
the 

accompanied 

prevention 

and 

and 

by 

the 

and 

Transport  emissions  keep  rising  while  the 
share  of  cleaner  means  of  transport  is  only 
slowly increasing. In 2021, applicable air quality 
limits (44)  on  particulate  matter  (PM10)  were 
exceeded  in  the  Banská  Bystrica  and  Košice 
regions 
agglomeration. 
Furthermore,  for  two  air  quality  zones  the  target 
values  regarding  ozone  concentration  were  not 
met  in  2020.  With  1.5%,  the  share  of  zero-
emission  vehicles  in  newly  registered  passenger 
cars in Slovakia is very low, mostly due to the high 
price  compared  with  household  incomes.  But  the 
stock  of  zero-emission  vehicles  is  growing  fast, 
despite no incentives being offered.  

Košice 

(43)  After the conclusion of the negotiations for a recast EED, the 
ambition of both the EU and national targets as well as of 
the national measures for energy efficiency to meet these 
targets is expected to increase. 

(44)  As established by the Ambient Air Quality Directive. In 2020, 

no exceedances were registered in neither the Košice 
agglomeration nor in the Košice region.  

34 

 
        
                                                 
Graph A6.3: Thematic – environmental investment 
needs and current investment, p.a. 2014-2020 

and 

evaluation, 

extreme. Slovakia intends to review its adaptation 
strategy by 2025 in order to include a framework 
for  monitoring 
boost 
implementation, and step up capacity building and 
cooperation  between  stakeholders.  Heat-related 
to 
mortality  and  morbidity  are  projected 
significantly  rise,  mostly  in  cities.  Slovakia’s  RRP 
has  measures  on  restoring  water  courses,  water 
retention,  and  protecting 
forests.  Slovakia’s 
insurance  protection  gap  for  floods  and  wildfire 
needs  to  be  monitored  as  it  could  pose  a  risk  to 
public  finances  if  insurance  penetration  remains 
low.  

Slovakia  still  provides  fossil  fuel  and  other 
environmentally harmful subsidies that could 
be  considered  for  reform,  while  ensuring 
food  and  energy  security  and  mitigating 
social  effects.  Fossil  fuel  subsidies  in  Slovakia 
amounted  to  EUR  502  million  in  2020,  a  100% 
increase  since  2015,  which  puts  low  carbon 
alternatives  at  a  disadvantage.  Environmentally 
harmful  subsidies  have  been  identified,  via  an 
initial  assessment,  in the agriculture,  forestry  and 
fishing, electricity, gas, steam and air conditioning, 
transportation  and  storage  and  mining  and 
quarrying sectors. Slovakia is taking its first steps 
to phase out a subsidy on power generation from 
lignite,  as part  of  the  reforms included in its  RRP. 
Examples  of  such  subsidies  include  the  flat  rate 
taxation  of  privately  used  company  cars  or  the 
fuel tax refund for agriculture (49). A mapping of all 
environmentally  harmful  subsidies  by  Slovakia 
would help prioritise candidates for reform. 

Slovakia  has  the  potential  to  rely  more  on 
environmental  taxes,  making  polluters  pay. 
Slovakia  gradually  increased  landfill  fees  since 
2019  for  municipal,  hazardous  and  other  waste 
and for construction and demolition waste, under a 
reform  implemented  in  mid-2022,  as  part  of  its 
RRP. As of early 2022, the deposit-refund system 
for 
packaging  began 
operating. Slovakia still has scope for stepping up 
the  use  of  pollution  taxes,  for  example,  on  solid 

single-use  beverage 

(49)  Fossil fuel figures in 2021 in EUR from the 2022 State of the 
Energy Union report. Initial assessment of environmentally 
harmful subsidies done by the Commission in the 2022 
toolbox for reforming environmentally harmful subsidies in 
Europe, using OECD definitions, and based on the following 
datasets: OECD Agriculture Policy Monitoring and 
Evaluations; OECD Policy Instruments for the Environment 
(PINE) Database; OECD Statistical Database for Fossil Fuels 
Support; IMF country-level energy subsidy estimates. Annex 4 
of the toolbox contains detailed examples of subsidies on 
the candidates for reform. 

Source: European Commission. 

Slovakia  would  benefit  from  investing  more 
in  protecting  nature  and  biodiversity,  better 
landscape  and  water  management,  and 
addressing  pollution  in  particular.  Between 
2014  and  2020,  environmental 
investment 
needs (45)  were  estimated  to  be  at  least  EUR  2.1 
billion  while  investment  stood  at  around  EUR  1.2 
billion, leaving a gap of at least EUR 0.9 billion per 
year  (see  Graph  A6.4) (46).  With  about  30%, 
Slovakia  is  among  the  EU  countries  with  the 
highest  Natura  2000  coverage  of  its  territory (47). 
Sufficient  resources  are  to  be  allocated  to 
protection,  management, 
conservation 
measures,  and  leveraged  with  private  investment 
to maintain and restore the protected species and 
habitats.  

and 

Climate  change  is  affecting  many  sectors  in 
Slovakia, 
implying  challenges  to  water 
management among others (48). Between 2000 
and  2020,  the  hydrological  regime  became  more 

(45)  Environmental objectives include pollution prevention and 

control, water management and industries, circular economy 
and waste, biodiversity and ecosystems (European 
Commission, 2022, Environmental Implementation Review, 
country report Slovakia) 

(46)  When also accounting for needs estimated at EU level only 

(e.g., water protection, higher circularity, biodiversity 
strategy).  

(47)  In 2021, Slovakia had 37.4% terrestrial protected areas 

(Natura 2000 and nationally designated areas), against the 
EU average of 26.4% (European Environment Agency, 2023, 
Natura 2000 Barometer). 

(48)  European Environmental Agency, Advancing towards climate 

resilience in Europe, forthcoming. 

35 

1763103192201305254194095791410.0100.0200.0300.0400.0500.0600.0700.0Pollutionprevention andcontrolWater (industries,excl. protection)Circular Economy(incl. waste)Biodiversity andecosystemsR&I&D and otherEUR million (at current prices)Current investmentTotal need 
        
                                                 
                                                 
fuels or a pay-as-you-throw scheme in addition to 
an  increase  in  the  landfill  tax  for  municipal 
waste (50).  

By  earmarking  a  higher  share  of  EU 
Emissions  Trading  System  (ETS)  revenue  for 
climate  action,  Slovakia  could  reduce  its 
exposure  to  the  cost  of  carbon.  In  2021,  its 
revenue from the EU  ETS amounted to some EUR 
276  million.  In  recent  years,  Slovakia  has  been 
allocating  less  than  20%  to  climate  and  energy-
related purposes, far below the minimum 50% set 
by the ETS Directive. 

(50) European Commission, 2021, Green taxation and other 

economic instruments – Internalising environmental costs to 
make the polluter pay, Ensuring that polluters pay. 

36 

 
                                                 
Table A6.1: Indicators tracking progress on the European Green Deal from a macroeconomic perspective 

Sources: (1) Historical and projected emissions, as well as Member States’ climate policy targets and 2005 base year emissions 
under the Effort Sharing Decision (for 2020) are measured in global warming potential (GWP) values from the 4th Assessment 
Report (AR4) of the Intergovernmental Panel on Climate Change (IPCC). Member States’ climate policy targets and 2005 base 
year emissions under the Effort Sharing Regulation (for 2030) are in GWP values from the 5th Assessment Report (AR5). The 
table above shows the base year emissions 2005 under the Effort Sharing Decision, using AR4 GWP values. Emissions for 2017-
2021 are expressed in percentage change from 2005 base year emissions, with AR4 GWP values. 2021 data are preliminary. The 
table shows the 2030 target under Regulation (EU) 2023/857 that aligns it with the EU’s 55% objective, in percentage change 
from 2005 base year emissions (AR5 GWP). Distance to target is the gap between Member States’ 2030 target (with AR5 GWP 
values) and projected emissions with existing measures (WEM) and with additional measures (WAM) (with AR4 GWP values), in 
percentage change from the 2005 base year emissions. Due to the difference in global warming potential values, the distance to 
target is only illustrative. The measures included reflect the state of play as of 15 March 2021.  
(2) Net removals are expressed in negative figures, net emissions in positive figures. Reported data are from the 2023 
greenhouse gas inventory submission. 2030 value of net greenhouse gas removals as in Regulation (EU) 2023/839 
amending Regulation (EU) 2018/841 (LULUCF Regulation) – Annex IIa, kilotons of CO2 equivalent, based on 2020 submissions. 
(3) Renewable energy and energy efficiency targets and national contributions are in line with the methodology established under 
Regulation (EU) 2018/1999 (Governance Regulation).  
(4) Percentage of total revenue from taxes and social contributions (excluding imputed social contributions). Revenue from the EU 
Emissions Trading System is included in environmental tax revenue.  
(5) Expenditure on gross fixed capital formation for the production of environmental protection services (abatement and 
prevention of pollution) covering government, industry, and specialised providers.  
(6) European Commission, Study on energy subsidies and other government interventions in the European Union, 2022 edition.  
(7) The climate protection gap refers to the share of non-insured economic losses caused by climate-related disasters. This 
indicator is based on modelling of the current risk from floods, wildfires and windstorms as well as earthquakes, and an 
estimation of the current insurance penetration rate. The indicator does not provide information on the split between the 
private/public costs of climate-related disasters. A score of 0 means no protection gap, while a score of 4 corresponds to a very 
high gap (EIOPA, 2022).  
(8) Sulphur oxides (SO2 equivalent), ammonia, particulates < 10 µm, nitrogen oxides in total economy (divided by GDP).  
(9) Battery electric vehicles (BEV) and fuel cell electric vehicles (FCEV). 

37 

2030200520172018201920202021target/valueWEMWAMGreenhouse gas emission reductions in effort sharing sectors (1)Mt CO2 eq; %; pp23.0-7%-8%-13%-18%--22.7%-31.7-23.7Net carbon removals from LULUCF (2)kt CO2eq-4,750-5,725-4,751-5,515-7,695-7,658-6821n/an/a200520172018201920202021Share of energy from renewable sources in gross final consumption of energy (3)%6%11%12%17%17%17%19%Energy efficiency: primary energy consumption (3)Mtoe17.416.115.816.015.216.315.7Energy efficiency: final energy consumption (3)Mtoe11.611.111.111.210.411.410.3201620172018201920202021201920202021Environmental taxes (% of GDP)% of GDP2.52.52.52.52.52.42.42.22.2Environmental taxes (% of total taxation)(4)% of taxation 7.67.57.37.37.16.75.95.65.5Government expenditure on environmental protection% of total exp.1.72.02.02.02.12.01.71.61.6Investment in environmental protection (5) % of GDP0.40.40.40.3--0.40.40.4Fossil fuel subsidies (6)EUR2021bn0.30.30.30.60.5-53.050.0-Climate protection gap (7) score 1-42.41.61.5Net greenhouse gas emissions1990 = 10056.058.058.055.051.056.076.069.072.0Greenhouse gas emission intensity of the economykg/EUR'100.520.520.500.460.45-0.310.300.26Energy intensity of the economykgoe/EUR'100.210.210.200.200.20-0.110.11-Final energy consumption (FEC)2015=100103.4110.6110.4111.0103.0113.5102.994.6-FEC in residential building sector2015=100102.1106.1103.5133.0138.1140.9101.3101.3106.8FEC in services building sector2015=100100.7109.8101.294.085.3108.4100.194.4100.7Smog-precursor emission intensity (to GDP) (8)tonne/EUR'101.031.020.930.840.80-0.930.86-Years of life lost due to air pollution by PM2.5per 100.000 inh.1020.71118.41103.3808.8845.2-581.6544.5-Years of life lost due to air pollution by NO2per 100.000 inh.83.6108.9113.587.045.1-309.6218.8-Nitrates in ground watermg NO3/litre16.516.218.316.218.6-21.020.8-Terrestrial protected areas% of total36.437.4-37.437.437.426.226.426.4Marine protected areas% of total------10.7-12.1Organic farming% of total utilised agricultural area9.89.99.910.311.78.88.59.1-201720182019202020212022202020212022Share of zero-emission vehicles (9)% in new registrations0.20.30.21.21.51.85.48.910.7Number of AC/DC recharging points (AFIR categorisation)---46916212517188626330028432518Share of electrified railways%43.843.843.743.743.743.756.6n/a56.6Hours of congestion per commuting driver per year23.323.423.823.4n/an/a28.7n/an/aMobilityFiscal and financialindicatorsEnergyPollutionBiodiversityClimate'Fit for 55'DistanceProgress to policy targetsNational contribution to 2030 EU targetSlovakiaEU 
 
     
 
ANNEX 7: ENERGY SECURITY AND AFFORDABILITY 

Slovakia  continues  to  depend  on  Russian 
fossil  fuels,  and  efforts  to  reduce  this 
dependency are progressing too slowly. Fossil 
fuels  and  nuclear  energy  are  a  big  part  of  its 
energy  mix.  This  makes  its  economy  particularly 
sensitive to global price developments, requiring it 
to  step  up  efforts  on  the  energy  transition.  This 
Annex (51)  sets out actions carried out by  Slovakia 
to  achieve  the  REPowerEU  objectives,  including 
through  the  implementation  of  its  recovery  and 
resilience plan in order to improve energy security 
and  affordability  while  accelerating  the  clean 
energy  transition,  and  contributing  to  enhancing 
the  EU’s  competitiveness  in  the  clean  energy 
sector (52). 

Slovakia  is  highly  exposed  to  a  possible 
disruption  of  Russian  energy  imports  and 
rising  import  costs,  which  would  adversely 
affect the supply side of the economy. It is in 
a  very  good  position  in  terms  of  natural  gas 
underground  storage  capacities (53)  due  to  its 
favourable  geological  condition,  with  a  total 
storage  capacity  amounting  to  3.98  billion  cubic 
metres  (bcm).  Slovakia  fulfilled  its  gas  storage 
obligations  last  winter,  reaching  91.29%  by  1 
November (above the EU legal obligation of 80%), 
and  ended  the  heating  season  with  a  filling  gas 
storage  at  58.23% at  15 April  2023 (54).  Slovakia, 
like other EU countries, has been trying to diversify 
since the start of the war in Ukraine. However, the 
country’s  major  gas  supplier,  SPP,  only  signed 
larger contracts with Norway and liquefied natural 
gas  (LNG)  suppliers  in  May  2022,  and  since 

(51)  It is complemented by Annex 6 as the European Green Deal 
focuses on the clean energy transition, by Annex 8 on the 
actions taken to mitigate energy poverty and protect the 
most vulnerable ones, by Annex 9 as the transition to a 
circular economy will unlock significant energy and resource 
savings, further strengthening energy security and 
affordability, and by Annex 12 on industry and single market 
complementing ongoing efforts under the European Green 
Deal and REPowerEU. 

(52)  in line with the Green Deal Industrial Plan COM(2023) 62 
final, and the proposed Net-Zero Industry Act COM(2023) 
161 final. 

(53)  Slovakia operates two underground storage facilities: Láb 

(including Gajary baden) managed by Nafta, and UGS Lab IV 
– Pozagas managed by Pozagas. 

(54)  Regulation of the European Parliament and of the Council 
amending Regulations (EU) 2017/1938 and (EC) No 
715/2009 with regard to gas storage and Implementing 
Regulation (EU) 2022/2301 of 23 November 2022 setting 
the filling trajectory with intermediary targets for 2023 for 
each Member State with underground gas storage facilities 
on its territory and directly interconnected to its market area. 

summer  2022,  only  50%  of  Slovakia’s  gas  flows 
come from Russia. Slovakia is looking into making 
some  changes  to  the  gas  transmission  system  to 
support  new  gas  supply  routes,  e.g.  by  importing 
gas  through  the  reverse  flow  from  Austria  and 
Czechia, or through the planned Slovak-Hungarian 
pipeline  expected 
in 
to  be 
2027. The  interconnection  between  Slovakia  and 
Poland,  with  a  capacity  of  5.7  bcm/year  going  to 
Poland  and  up  to  4.7  bcm/year  going  to  Slovakia, 
was  completed  and  became  operational 
in 
November  2022.  Other  infrastructure  projects  in 
neighbouring  countries  might  help  Slovakia  to 
secure  gas  supply,  e.g.  from  the  floating  storage 
regasification  unit  being  developed  in  Gdansk  or 
the LNG terminal being developed in Krk. 

commissioned 

Graph A7.1: Underground storage levels in 
Slovakia 

Source: JRC calculation based on AGSI+ Transparency 
Platform, 2022 (Last update 2 May 2023) 

introduced  measures 

The  security  of  supply  of  the  gas  and 
electricity  systems  are  closely  related,  and 
Slovakia has some specific measures in place 
in  case  of  full  disruption.  In  case  of  gas 
emergency,  Slovakia 
to 
choose  from,  such  as  immediate  preparedness 
the  diversification  of  supply 
measures,  e.g. 
sources,  withdrawal  from  gas  storage,  and 
voluntary consumption reduction. Alternatively, it is 
considering fuel switching measures, e.g. from coal 
to  gas,  and  additional  nuclear  capacity is planned 
for  2023.  Slovakia  has  measures  such  as  energy 
efficiency  improvements  to  help  reduce  natural 
gas demand in the residential sector and in public 
and  private  non-residential  buildings,  thermostat 
adjustments,  or  the  use  of  heat  pumps.  Over  the 
period  August  2022  –  March  2023,  1%  of  gas 
consumption has been saved in Slovakia compared 
to the previous 5-years average.  

The  nuclear  fuel  diversification  process  is 
underway.  Slovakia’s  nuclear  fuel  comes  from 

38 

 
 
                                                 
 
 
 
Russia, but discussions are ongoing with potential 
suppliers to diversify supplies. 

Graph A7.3: Slovakia´s retail energy prices for 
industry (top) and households (bottom) 

Graph A7.2: Share of gas consumption per sector, 
2021 

Source: Eurostat 

Slovakia  is  upgrading  its  grid  infrastructure, 
but further infrastructure investments would 
make  it  possible  to  accommodate  a  higher 
share of renewable electricity. Slovakia is well 
interconnected  with  its  neighbours  in  terms  of 
electricity.  The  focus  of  investments  is  on  smart 
grids and distribution grid modernisation for better 
integration  of  renewables.  Slovakia  has  two  on-
going  Projects  of  Common  Interest  on  smart 
electricity  grids  with  its  neighbours.  It  is  a  net 
importer of electricity.  

To shield consumers from soaring prices, the 
government  has  put  various  measures  in 
place.  Several  of  them  are  aimed  at  families 
(such  as  bigger  tax  breaks  for  families  with 
children,  or  child  allowances).  However,  the  main 
way  of  minimising  the impact  of  price  spikes  has 
been  regulated  electricity  and  gas  prices  for 
households  and  small  businesses.  Energy  price 
caps  for  companies  and  businesses  from  2023 
have  also  been  announced.  Energy  prices  will  be 
capped  at  EUR  199/MWh  for  electricity  and  EUR 
99/MWh  for  natural  gas.  Prices  for  households 
have  been  capped  at  EUR  61/MWh  for  electricity 
and natural  gas prices could  increase by no more 
to  2022.  Electricity 
than  15% 
consumption  by  households,  but  even  more  by 
businesses,  has  dropped.  The  reason  for  this  is 
that prices are so high that consumers are forced 
to  save  energy  (e.g.  in  sectors  like  aluminium, 
fertilisers). 

compared 

(1) On electricity, the band consumption is DC for households 
and ID for industry 
(2) On gas, the band consumption is D2 for households and I4 
for industry  
Source: Eurostat 

Slovakia  is  lagging  behind  in  its  framework 
to  support  energy  communities  and  enable 
consumers  to  actively  participate  in  the 
energy  transition.  However,  family  homes  and 
apartment  blocks  can  apply  for  support  in  the 
form  of  a  voucher  for  small  installations  for  the 
use  of  renewable  energy  sources,  thanks  to  a 
national  project  run  by  the  Slovak  Innovation  and 
Energy  Agency  called  Zelená  domácnostiam 
(Green  for  Households).  The  project  is  funded  by 
the  operational  programme  Quality  of 
the 
Environment,  managed  by  the  Slovak  Ministry  of 
the  Environment.  The  support 
is  for  small 
installations to produce electricity up to 10 kW and 
for heat-generating equipment (55). 

Slovakia has high ambitions to transform its 
energy  system,  and  further  policy  support 
could  help  decarbonise  the  economy.  The 
recovery  and  resilience  plan  envisages  direct 
investments,  set  to  increase  installed  renewables 
capacity  by  120  MW,  representing  approximately 
20%  of  its  current  wind  and  solar  capacity.  The 

(55)  Green Households Programme – Policies – International 

Energy Agency 

39 

31.7%27.2%1.4%12.1%27.0%0.6%EnergyIndustryTransportServices and public sectorHouseholdsAgriculture, forestry andfishery050100150200250300350€/MWhGas SlovakiaGas EUElectricity SlovakiaElectricity EU050100150200250300€/MWhGas SlovakiaGas EUElectricity SlovakiaElectricity EU 
      
       
                                                 
communities, 

plan  envisages  key  market  design  reforms  and 
support  for  renewables  to  pave  the  way  for  the 
accelerated  uptake  of  clean  energy.  In  particular, 
the  updated  legal  framework  will  facilitate  new 
activities  and  access  to  the  electricity  market 
self-
(energy 
consumers,  and  electricity  storage)  and  increase 
the  possibilities  of  connecting  new  renewable 
sources  to  the  grid.  There  is  still  potential  in  key 
sectors  for  Slovakia  to  be  able  to  reach  its 
renewables  penetration  and  decarbonisation 
targets.  This  includes  doing  more  to  harness  its 
geothermal potential. 

aggregators, 

Slovakia belongs to the countries that invest 
very  little  in  energy  R&I.  Public  investment  in 
R&I as an EU Energy Union priority is alarming. It 
decreased  more  than  threefold,  from  0,029%  in 
2014  to  0,08%  in  2021  (share  of  GDP).  Private 
R&I  investments  saw,  on  the  other  hand,  an 
increase  from  EUR  7  million  in  2014  to  EUR  25 
million  in  2019.  While  the  public  investments 
focus on sustainable transport (55%) and efficient 
systems 
are 
private 
overwhelmingly  dominated  by  nuclear  safety 
(92%).    The  number  of  patent  families  filed  in 
2019  for  clean  technologies  was  6,  representing 
around 1,1 patent families per million inhabitants. 

investments 

(34%), 

40 

 
Table A7.1: Key energy indicators 

(1) The ranking of the main suppliers is based on the latest available figures (for 2021) 
(2) FSRU included 
(3) Venture Capital investments include Venture Capital deals (all stages) and Private Equity Growth/Expansion deals (for 
companies that have previously been part of the portfolio of a VC investment firm). 

Source: Eurostat, Gas Infrastructure Europe (Storage and LNG Transparency Platform), JRC SETIS (2022), JRC elaboration based 
on PitchBook data (06/2022) 

41 

EU20182019202020212018201920202021Import Dependency [%] 64%70%56%53%58%61%57%56%of Solid fossil fuels 92%92%86%88%44%44%36%37%of Oil and petroleum products 101%101%102%98%95%97%97%92%of Natural Gas 90%137%88%69%83%90%84%83%Dependency from Russian Fossil Fuels [%]of Hard Coal 39%39%35%26%40%44%49%47%of Crude Oil100%100%100%100%30%27%26%25%of Natural Gas 100%100%85%69%40%40%38%41%20152016201720182019202020212022Gross Electricity Production (GWh)26,90327,06427,73826,97128,43428,83830,016-Combustible Fuels7,0087,0157,3677,5427,9537,8978,999-Nuclear15,14614,77415,08114,84315,28215,44415,730-Hydro4,1374,6064,6233,8794,5714,7994,552-Wind6666645-Solar 506533506585589663671-Geothermal 0000000-Other Sources100130155116333159-Net Imports of Electricity (GWh)2,3882,6513,0283,6821,700319774-   As a % of electricity available for final consumption 9%10%11%14%7%1%3% -Electricity Interconnection (%)--43.30%42.65%45.3%41.4%40.2%47.0%20152016201720182019202020212022Gas Consumption (in bcm)4.64.74.74.64.74.95.55.3Gas Imports - by type (in bcm)4.44.45.24.46.74.35.1-Gas imports - pipeline4.44.45.24.46.74.35.1-Gas imports - LNG0.00.00.00.00.00.00.0-Gas Imports - by main source supplier (in bcm) (1)Russia4.44.34.44.46.73.73.5-Not specified0.00.10.80.00.00.61.6-2019202020212022LNG TerminalsNumber of LNG Terminals (2)LNG Storage capacity (m3 LNG)Underground StorageNumber of storage facilities2222Operational Storage Capacity (bcm)4.44.4442019202020212022VC investments in climate tech start-ups and scale-ups (EUR Mln) (3)as a % of total VC investments in Slovakian.a.n.a.n.a.n.a.Research & Innovation spending in Energy Union R&i priorites (2)Public R&I (EUR mln)431.7%922.5%827.2%n.a.Public R&I (% GDP)0.0%0.0%0.0%n.a.Private R&I (EUR mln)25.32n.a.n.a.n.a.Private R&I (% GDP)0.00n.a.n.a.n.a.DIVERSIFICATION OF GAS SUPPLIESCLEAN ENERGYSLOVAKIAENERGY DEPENDENCEELECTRICITY 
 
 
 
     
 
 
ANNEX 8: FAIR TRANSITION TO CLIMATE NEUTRALITY 

This  Annex  monitors  Slovakia’s  progress  in 
ensuring  a  fair  transition  towards  climate 
neutrality  and  environmental  sustainability, 
notably  for  workers  and  households 
in 
vulnerable  situations.  Employment  in  energy-
intensive  industries  remained  stable  in  Slovakia, 
which  has  one  of 
the  highest  shares  of 
employment  in  automotive  manufacturing  and  in 
the  steel  industry in  the  EU.  Support is  needed  to 
provide  the  labour  force  with  the  skills  for  the 
green 
the  Council 
Recommendation (56),  support  the  fair  transition 
and  implement  REPowerEU.  Slovakia’s  recovery 
and  resilience  plan  (RRP)  outlines  crucial  reforms 
and  investment  for  a  fair  green  transition (57), 
complementing  the  territorial  just  transition  plans 
and  actions  supported  by  the  European  Social 
Fund Plus (ESF+). 

line  with 

transition, 

in 

Graph A8.1: Fair transition challenges in Slovakia 

Source: Eurostat, EMPL-JRC GD-AMEDI/AMEDI+ projects and 
World Inequality Database (see Table A8.1).           

Employment 
in  Slovakia’s  sectors  most 
affected  by  the  green  transition  remains 
stable  and  the  green  economy  is  expanding, 
in  declining  activities  need 
but  workers 
active  support.  The  greenhouse  gas 
(GHG) 
emissions  intensity  of  employment  in  Slovakia 
declined  slightly  from  14.8  to  14.2  tonnes  per 
worker  between  2015  and  2021,  and  is  now 
slightly above the EU average of 13.7 tonnes (see 
in 
Graph A8.1  and  Table A8.1).  Employment 
Slovakia’s 
(EII) 
represented  a  high  and  stable  share  of  5.7%  of 

energy-intensive 

industries 

in 

of 

the 

and 

(16.2% 

Slovenia 

employees 

total employment in 2021 (in 2020: 5.6% vs 3.0% 
in the EU). Slovakia still has the EU's highest share 
total 
of  direct  automotive  employment 
manufacturing 
in 
manufacturing) (58).  Yet,  employment  in  mining 
and quarrying has decreased by 16.0% since 2015 
(to  around  7 000  workers).  As  regards  direct 
employment  in  the  EU  steel  industry  per  capita, 
third  highest  share  after 
Slovakia  has 
Luxembourg 
(189 
employees/100 000  people) (59).  The  job  vacancy 
rate  in  construction,  a  key  sector  for  the  green 
transition,  is  one  of  the  lowest  in  the  EU  (0.4  vs 
4.0% in EU in 2022) (60). Within the RRP two major 
decarbonisation 
envisaged: 
decommissioning  the  coal  power  plant  in  Nováky 
and the transition of the coal mining region “Horná 
Nitra”,  also  supported  by  ESF  and  ESF+  (as  an 
operation of strategic importance). In particular, in 
Horna  Nitra  region,  the  ESF  has  been  funding  a 
project  on  promoting  employability  with  a  budget 
of EUR 12 million, taken over by a similar project 
funded by the Just Transition Fund (JTF). Their aim 
is  to  mitigate  the  impact  of  the  cessation  of 
mining  activities  on  employees  and  create  the 
conditions  for  their  smooth  transition  to  new 
employment in other sectors in the region.  

steps 

are 

In 

sectors. 

Upskilling  and  reskilling  rates  in  declining 
and  transforming  sectors  are  stable  at  a 
relatively  low  level.  Skills  are  key  for  smooth 
labour  market  transitions  and  preserving  jobs  in 
transforming 
energy-intensive 
industries,  workers’  participation  in  education  and 
training increased from 4.0% in 2015 to 16.2% in 
2022,  and  is  now  above  the  EU  average  (10.4%). 
Although the adult learning rate is relatively low, a 
below-average  share  of  citizens  believe  they  do 
not  have  the  necessary  skills  to  contribute  to  the 
green  transition  (23%  in  Slovakia  vs.  38%  in 
EU) (61)  (cf.  Annex  15).  To  address  the  need  for 
skills training, specific investment is planned under 
the  RRP  and 
programme 
(encompassing  JTF  and  ESF+/ERDF)  for  reskilling 
workers  in  regions  affected  by  the  transition.  The 
Territorial  Just  Transition  Plan  (TJTP)  sets  the 
strategy  for  the  investment  of  EUR  459  million, 
while the ESF+/ERDF funding of skills will amount 

“Slovakia” 

the 

(56)  Council Recommendation of 16 June 2022 on ensuring a fair 
transition towards climate neutrality (2022/C 243/04) covers 
employment, skills, tax-benefit and social protection 
systems, essential services and housing 

(58)  ACEA, 2020 

(59)  European Steel in Figures 2022, EUROFER 

(60)  Eurostat (JVS_A_RATE_R2)  

(57)  See 2022 Country Report (Annex 6) and Annex 3 for an 

(61)  Special Eurobarometer 527. Fairness perceptions of the 

overview. 

green transition (May – June 2022). 

42 

00.20.40.60.811.21.41.61.82GHG per workerEmployment EIIEducation &training EIIEnergy povertyTransportpoverty(proxy)CarboninequalityEU LatestSK Latest (vs EU Latest)SK 2015 (vs EU Latest) 
 
  
                                                 
                                                 
 
to  EUR  308  million 
(with  EUR  72  million 
specifically on green skills and jobs and the green 
economy). The activities will be based on past re-
skilling projects (REPAS/KOMPAS). 

Graph A8.2: Distributional impacts of energy prices 
due to rising energy expenditure (2021-2023) 

Mean change of energy expenditure as a percentage (%) of 
total expenditure per income decile (D) due to observed price 
changes (August 2021 – January 2023 relative to the 18 
months prior), excl. policy support and behavioural responses. 
Source: EMPL-JRC GD-AMEDI/AMEDI+ projects, based on 
Household Budget Survey 2015 and Eurostat inflation data 
for CP0451 and CP0452.      

Energy  poverty  indicators  remained  stable 
overall  in  recent  years  but  the  spike  in 
energy prices can be expected to worsen the 
situation.  The  share  of  the  total  population 
unable to keep their homes adequately warm was 
5.8%  in  2021  (below  the  EU  average  of  6.9%  in 
2021), identical to the 2015 value (after a peak at 
7.8%  in  2019) (62).  In  particular,  18.8%  of  the 
population  at  risk  of  poverty  were  affected  in 
2021 (EU: 16.4% in 2021), as were 4.4% of lower 
middle-income households (in deciles 4-5) in 2020 
(EU: 8.2% in 2021). For higher income deciles, this 
share  is  at  5%  or  below.  Before  the  energy  price 
hikes, an estimated 68.3% of the total population 
and,  at  95.3%,  virtually  the  entire  (expenditure-
based)  at-risk-of-poverty  (AROP)  population  had 
residential  expenditure  on  electricity,  gas,  and 
other  fuels (63)  above  10%  of  their  household 
budget  (markedly  above  the  EU  averages  of 
26.9% and 48.2%, respectively). Slovakia is one of 
countries  with  an  official energy 
the 

few 

(62)  Energy poverty is a multi-dimensional concept. The indicator 
used focuses on an outcome of energy poverty. Further 
indicators are available at the Energy Poverty Advisory Hub. 

(63)  Products defined according to the European Classification of 

Individual Consumption according to Purpose (ECOICOP): CP045. 

43 

Regarding 

poverty definition (64). 
adopted 
measures,  Slovakia  has  put  in  place  a  framework 
strategy  for  promoting  social 
inclusion  and 
combating poverty. A housing allowance is in place 
to  cover  part  of  the  cost  of  housing,  including 
energy. Nevertheless, by the Energy Poverty Index 
from  2019  it  was  listed  among  the  ten  EU 
Member States most behind in terms of alleviating 
energy poverty (65). 

the 

The  increased  energy  prices  in  2021-2023 
are  negatively  affecting  household  budgets, 
in  particular  for  low-income  groups.  As  a 
result of price changes during the August 2021 to 
January  2023  period  relative  to  the  18  months 
prior (cf. Annex 7), in the absence of policy support 
share  of 
responses, 
and  behavioural 
individuals living in households which spend more 
than  10%  of  their  budget  on  energy  would  have 
increased  by  5.0  percentage  points  (pps)  for  the 
whole  population,  but  not  at  all  among  the 
(expenditure-based)  AROP  population 
(which 
started from an already very high share), while the 
EU-level increases were higher (16.4 pps and 19.1 
pps,  respectively) (66).  Expenditure  shares  of  low 
and  lower-middle  income  groups  would  have 
increased the most, for both electricity and gas, as 
shown  in  Graph A8.2.  74%  of  Slovaks  say  they 
would  to  reduce  their  energy  use  mainly  for 
economic  reasons  because  of  the  prices (67). 
Among  the  (expenditure-based)  AROP  population, 
individuals living in households with budget shares 
for  private  transport  fuels (68)  above  6%  would 
have  increased  by  5.3  pps  same  as      the  EU 
average  and  standing  below  the  EU  average  in 
January  2023  (21.4%  vs  37.9%)  Slovakia  is 
among  the  EU  countries with  smallest  market  for 
electric cars and lowest number of new electric car 
registrations in 2022 (69).  

(64)  According to Act No. 250/2012 Coll. on Regulation in 

Network Industries, energy poverty is "a condition where the 
average monthly household expenditure on the consumption 
of electricity, gas, heat for heating and for the preparation of 
domestic hot water constitutes a significant share of the 
household's average monthly income”. 

(65)  Energy poverty in Slovakia: Officially defined, but misrepresented 
in major policies, Energy Policy, Volume 168, September 2022, 
113095 

(66)  EMPL-JRC GD-AMEDI/AMEDI+ ; see details in the related 

technical brief 

(67)  Special Eurobarometer 527. 

(68)  ECOICOP: CP0722. 

(69)  https://www.eea.europa.eu/ims/new-registrations-of-electric-

vehicles 

0.0%0.5%1.0%1.5%2.0%2.5%3.0%ElectricityGasElectricityGasElectricityGasElectricityGasElectricityGasElectricityGasElectricityGasElectricityGasElectricityGasElectricityGasD1D2D3D4D5D6D7D8D9D10SK GasSK ElectricityEU GasEU Electricity 
   
                                                 
                                                 
Table A8.1: Key indicators for a fair transition in Slovakia 

Source: Eurostat (env_ac_ainah_r2, nama_10_a64_e, ilc_mdes01), EU Labour Force Survey, EMPL-JRC GD-AMEDI/AMEDI+ 
projects and World Inequality Database (WID). 

Access  to  public  transport 
is  perceived 
relatively  positively  and  displays  a  modest 
urban-rural  divide  compared  to  other  EU 
countries. Citizens perceive public transport to be 
relatively  available  (61%  vs  55%  in  the  EU), 
affordable  (59%  vs  54%)  and  of  good  quality 
(68%  vs  60%).  As  regards  these  perceptions,  the 
urban-rural divide is less pronounced than in most 
other  Member  States  and  rural  areas  outperform 
the  EU  average  for  rural  areas (70).  The  average 
carbon  footprint  of  the  top  10%  of  emitters 
among  the  population  in  Slovakia  is  about  4.3 
times  higher  than  that  of  the  bottom  50%,  while 
the  EU  average  is  5.0  times  higher  (see  Graph 
A8.1).  In  Slovakia,  the  average  levels  of  air 
pollution  in  2020  stood  above  the  EU  average 
(14.5  vs  11.2  µg/m  PM2.5),  with  all  regions 
exposed  to  critical  levels  of  air  pollution (71), 
leading  to  significant  health  impacts, in  particular 
on vulnerable groups, and 3 918 premature deaths 
annually (72). 

(70)  EU: 46%, 48% and 56% respectively. Special Eurobarometer 

527. 

(71)  Two times higher than the recommendations in the WHO Air 

Quality Guidelines (annual exposure of 5µg/m3) 

(72)  EEA- Air Quality Health Risk Assessment 

44 

IndicatorDescriptionSK 2015SK LatestEU LatestGHG per workerGreenhouse gas emissions per worker - CO2 equivalent tonnes14.814.2 (2021)13.7 (2021)Employment EIIEmployment share in energy-intensive industries, including mining and quarrying (NACE B), chemicals (C20), minerals (C23), metals (C24), automotive (C29) - %5.55.6 (2020)3 (2020)Education & training EIIAdult participation in education and training (last 4 weeks) in energy-intensive industries - %416.2 (2022)10.4 (2022)Energy povertyShare of the total population living in a household unable to keep its home adequately warm - %5.85.8 (2021)6.9 (2021)Transport poverty (proxy)Estimated share of the AROP population that spends over 6% of expenditure on fuels for personal transport - %16.121.4 (2023)37.1 (2023)Carbon inequalityAverage emissions per capita of top 10% of emitters vs bottom 50% of emitters4.44.3 (2020)5 (2020) 
 
                                                 
 
 
  
 
PRODUCTIVITY 
ANNEX 9: RESOURCE PRODUCTIVITY, EFFICIENCY AND CIRCULARITY 

The  circular  economy  transition  is  key  to 
climate  and 
delivering  on 
the  EU’s 
environmental  goals  and  provides 
large 
socio-economic  benefits. It  spurs  job  growth, 
innovation  and  competitiveness  and 
fosters 
resilience  and  resource  security.  The  circularity 
transition  of  industry,  the  built  environment  and 
agri-food  can  generate  significant  environmental 
improvements (see Annex 6), as they rank among 
the most resource-intensive systems. 

The  pace  of  Slovakia’s  circular  economy 
transition  is  insufficient  to  meet  the  EU’s 
circular  economy goals.  The  EU’s  2020  circular 
economy  action  plan  aims  at  doubling  circular 
material  use  by  2030  vs  2020.  Slovakia’s  use  of 
circular  material  has  only  slightly  increased  from 
5.3% in 2016 to 8.3% in 2021, which is well below 
the  EU  average  of  11.7%.  The  CEAP  also  aims  to 
significantly  decrease  the  EU’s  material  footprint. 
In 2020, Slovakia’s material footprint (13.3 tonnes 
per  head)  was  just  below  the  2020  EU  average 
(13.7 tonnes per head). The labour market benefits 
of  the  circular  transition  remain  limited  and  have 
hardly evolved since 2016 (Annex 8). 

Graph A9.1: Trend in material use 

Source: Eurostat 

Graph A9.2: Treatment of municipal waste 

to 

recently 

integrate 
Slovakia  started 
circular  economy  principles  into  its  policies, 
but  more  measures  are  needed.  The  first 
comprehensive  circular  economy  strategy  ‘Closing 
the  loop  in  the  Slovak  Republic’  was  developed  in 
2022  in  cooperation  with  OECD (73)  under  the 
Instrument. 
Commission’s  Technical  Support 
the 
Priority  areas  are  food  and  biowaste, 
construction  sector,  sustainable  production  and 
consumption  with  a 
economic 
instruments.  Slovakia  has 
taken  first  steps 
towards circularity. A fee for light plastic bags was 
introduced  in  2018.  Landfill  fees  have  gradually 
increased since 2019 for municipal, hazardous and 
other  waste  and  construction  and  demolition 
waste in 2022. In 2021, a waste law was modified 
to  prohibit  the  incineration  of  waste  that  can  still 
be  recovered  or  recycled  including  a  ban  on 
landfilling  food  waste  from  2023.  As  of  2022, 
Slovakia was among the first EU Member States to 
introduce  a  deposit-refund  system  for  single-use 
beverage packaging. 

focus  on 

(73)  OECD, 2022, Closing the loop in the Slovak Republic: A 
roadmap towards circularity for competitiveness, eco-
innovation and sustainability, available at this link 

45 

Source: Eurostat 

Slovakia’s  recycling  performance  has  been 
growing  swiftly  in  recent  years  but  remains 
below  the  EU  average  and  recycling  targets. 
With a municipal waste recycling rate of 48.9% in 
2021, Slovakia has missed the EU target for 50% 
recycling  by  2020.  Slovakia  is  at  risk  of  missing 
the  EU’s  recycling  targets  for  municipal  and 
packaging  waste  for  2025  and  is  at  a  significant 
distance  from  the  landfill  reduction  target  for 
2035.    Despite  a  decrease  in  landfilling  of 
municipal waste from 65.5% in 2016 to 40.7% (74) 

(74)  Note a significant data break between 2019 and 2020 due 
to adjustments in the statistical reporting methodology. 

 
 
 
                                                 
            
 
      
                                                 
 
Table A9.1:  Overall and systemic indicators on circularity 

(1) Persons employed in the circular economy only tracks direct jobs in selected sub-sectors of NACE codes E, C, G and S; (2) the 
circular material use rate measures the share of material recovered and fed back into the economy in overall material use; (3) the 
recovery rate of construction and demolition waste includes waste which is prepared for reuse, recycled or subject to material 
recovery, including through backfilling operations; (4) soil sealing: 2016 column refers to 2015 data; (5) food waste includes 
primary production, processing and manufacturing, retail and distribution, restaurants and food services, and households.  
Source: Eurostat, European Environment Agency 

roofs,  water 

to  foster  climate  adaptation  (such  as  installing 
green 
retention  system)  and 
recycling  and  prevention  of 
improving 
the 
construction  waste.  There 
is  still  scope  for 
renovating existing buildings and for increasing the 
share  of  secondary 
in 
construction.  

raw  materials  used 

The  agri-food  system  has  scope  to  reduce 
food waste. Slovakia’s composting and anaerobic 
digestion per head has almost tripled since 2016, 
but  remained  below  the  EU  average  in  2021  at 
77 kg  per  head  vs  100  kg  per  head.  Increasing 
composting and anaerobic digestion could enhance 
Slovakia’s  strategic  autonomy  by  generating 
biomethane and/or producing organic fertilisers.  

There remains a financing gap in the circular 
economy, 
including  waste  management.  
Additional investments will be required to address 
growing  needs.  The  financing  gap  was  estimated 
at  EUR  91  million  per  year  between  2014  and 
2020.  Over  this  period,  investment  needs  were 
estimated to be at least EUR 409 million per year 
while  investment  baselines  were  EUR  318  million 
per year (see Annex 6). 

in 2021, Slovakia still has one of the highest rates 
in the EU (23% EU average in 2021). A significant 
number  of  irregular  and  substandard  landfills  in 
Slovakia are still lacking rehabilitation and definite 
closure and present serious risks for human health 
and environment (75). 

The industrial system is increasingly circular. 
The  economy,  particularly  industry,  is  not  yet 
efficient at using materials to produce wealth, with 
a  1.9  purchasing  power  standard  per  kilogramme 
vs  2.3  for  the  EU.  However,  it  has  been  steadily 
indicating  significant 
increasing  since  2016, 
potential to boost secondary raw materials’ use. 

The  built  environment  system  continues  to 
resources 
the  depletion  of 
exacerbate 
despite  recent  improvements.  The  recovery 
rate of construction and demolition waste remains 
below  the  EU  average  (81%  vs  89%).  Progress  is 
expected  as  a  result  of  the  reform  adopted  in 
2022  to  facilitate  achieving  the  70%  recycling 
target  for  construction  and  demolition  waste.  Soil 
sealing  progressed  between  2015  and  2018  at  a 
faster  rate  than  the  EU  average.  Slovakia  has 
launched  under  its  RRP  a  pilot  scheme  for  large-
scale  renovation to  make  at  least  30 000  family 
houses  more  energy-efficient,  including  measures 

(75)  Waste: Commission decides to refer SLOVAKIA to Court 

(europa.eu) 

46 

 
                                                 
 
       
 
ANNEX 10: DIGITAL TRANSFORMATION 

transformation  by  2030, 

Digital  transformation  is  key  to  ensuring  a 
resilient and competitive economy. In line with 
the  Digital  Decade  Policy  Programme,  and  in 
particular  with  the  targets  in  that  Programme  for 
digital 
this  Annex 
describes  Slovakia’s  performance  on  digital  skills, 
digital 
the 
digitalisation  of  businesses  and  public  services. 
Where relevant, it makes reference to progress on 
implementing  the  Recovery  and  Resilience  Plan 
(RRP).  Slovakia  allocates  21%  of  its  total  RRP 
budget to digital (EUR 1.3 billion) (76). 

infrastructure/connectivity 

and 

The  Digital  Decade  Policy  Programme  sets 
out a pathway for Europe’s successful digital 
transformation  by  2030.  The  Programme 
provides  a  framework  for  assessing  the  EU’s  and 
Member States’ digital transformation, notably via 
the  Digital  Economy  and  Society  Index  (DESI).  It 
also  provides  a  way  for  the  EU  and  its  Member 
States  to  work  together,  including  via  multi-
country  projects,  to  accelerate  progress  towards 
the  Digital  Decade  digital  targets  and  general 
objectives (77).  More  generally,  several  aspects  of 
digital  transformation  are  particularly  relevant  in 
the current context. In 2023, the European Year of 
Skills, building the appropriate skillset to make full 
use of the opportunities that digital transformation 
offers  is  a  priority.  A  digitally  skilled  population 
increases the development and adoption of digital 
technologies  and  leads  to  productivity  gains (78). 
Digital  technologies,  infrastructure  and  tools  all 
play  a  role  in  the  fundamental  transformation 
needed to adapt the energy system to the current 
structural challenges (79). 

Slovakia is close to the EU average on digital 
skills,  but  some  areas  show  need  for 
improvement.  The  country  is  just  above  the  EU 
average for basic digital skills. However, over 72 % 

(76)  The share of financial allocations that contribute to digital 
objectives has been calculated using Annex VII of the RRF 
Regulation. 

(77)  The Digital Decade targets as measured by DESI indicators 
and complementary data sources are integrated to the 
extent currently available and/or considered particularly 
relevant in the MS-specific context.  

(78)  See for example OECD (2019): OECD Economic Outlook, 

Digitalisation and productivity: A story of complementarities, 
OECD Economic Outlook, Volume 2019 Issue 1 | OECD 
iLibrary (oecd-ilibrary.org). 

(79)  The need and possible actions for a digitalisation of the 
energy system are laid out in the Communication 
‘Digitalisation the energy system – EU action plan’ 
(COM(2022)552. 

of  Slovaks  have  at  least  basic  content  creation 
skills which is the second highest score in Central 
and Eastern Europe  and above the EU average of 
66%.  The  percentage  of 
ICT  specialists  has 
continuously  grown  since  2017,  at  a  growth  rate 
slightly above the EU average. Slovakia’s National 
Digital Skills Strategy and Action Plan 2023-2026, 
adopted  in  December  2022,  acknowledges  the 
need  to  improve  the  digital  competencies  in 
Slovakia  in  order  to  contribute  to  the  collective 
efforts to achieve the 2030 Digital Decade target 
of  80%  of  individuals  aged  between  16  and  74 
with  ‘at  least  basic’  digital  skills,  as  well  as  to 
contribute to  the  20 million  ICT  specialists  target. 
The  RRP  is  expected  to  contribute  to  boosting the 
level  of  digital  skills  in  various  parts  of  the 
population. For example, Slovakia has successfully 
concluded the pilot phase of the 'senior tablet (80)' 
project  that  distributes  tablets  to  elderly  people 
and  disadvantaged  persons  and  trains  them  on 
how to use the devices.  

Digital  infrastructure  and  connectivity  have 
improved,  but  progress  is  still  needed  to 
support Slovakia’s digital economy. While very 
high  capacity  network  (VHCN)  coverage  continued 
to  grow,  it  remains  just  below  the  EU  average 
(71%  vs  73%).  Fibre-to-the-  Premise 
(FTTP) 
coverage is on the other hand 67%, above the EU 
average  of  56%.  Slovakia  progressed  quickly  also 
concerning  5G  coverage.  55%  of  the  populated 
areas  now  benefit  from  overall  5G  coverage,  an 
important increase compared to the 14% coverage 
of  last  year  but  still  significantly  below  the  EU 
average  of  81%.  In  terms  of  5G  coverage  on  the 
3.4–3.8  GHz  spectrum  Slovakia  scores  slightly 
below  the  EU  average  of  41%.  According  to  the 
DESI  report,  despite  relatively  low  prices,  Slovak 
users  prefer  to  opt  for  slower  broadband.  It  is 
important  to  ensure  that  end  users  are  aware  of 
the  tangible  benefits  of  accessing  high  and  very 
high internet speeds. Slovakia is not using its RRP 
to 
connectivity 
increase 
infrastructure. 

investment 

in 

40%  of  Slovak  SMEs  don’t  reach  even  the 
basic level of  digital  intensity,  which is  worse 
is 
than  the  EU  average,  although  the  gap 
narrowing. 
digital 
technologies  such  as  cloud  computing,  artificial 
intelligence or big data by companies is below the 
EU average. Nearly 30% of Slovak companies are 
not  taking  any  action  to make progress  on digital 

of  advanced 

The  use 

(80)  https://www.digitalniseniori.gov.sk/ 

47 

 
 
                                                 
                                                 
 
transformation (81)  and  the  proportion  of  SMEs 
selling online is only at 14% (19% on EU average). 
As  part  of  its  RRP,  Slovakia  rolled  out  a  new 
scheme (82) to support research and application of 
advanced  digital 
technologies  by  companies, 
research institutions and other entities.  

Slovakia  is  approaching  the  EU  average  on 
digital  public  services,  against  the  background 
of  an  increase  of  the  digitally  offered  public 
services.  Moreover,  Slovakia  scores  above  the  EU 
average  with  81%  of  eGovernment  users,  Almost 
4  million  people  (or  almost  72%  of  the  citizens) 
have  access  to  an  electronic  identification  (eID) 
scheme,  which  has  been  notified  to  the  European 
Commission  under  the  eIDAS  Regulation.  Slovakia 
is  furthermore  involved  via  public  and  private 
entities in one large-scale pilot projects testing the 
European  Digital  Identity  Wallet  in  a  number  of 
everyday  use  cases.  Slovakia’s  performance 
concerning  access  to  eHealth  records  is  much 
poorer  (a  score  of  44  which  is  below  the  EU 
average of 71), suggesting that there is significant 
room  for  improvement. It  should  also  be  noted 
that  the  RRP  includes  significant  investments  in 
digital public services for priority life situations.  

(81)  https://www.trend.sk/spravy/digitalizaciou-nezaobera-30-

percent-slovenskych-firiem 

(82)  https://www.mirri.gov.sk/sekcie/informatizacia/digitalna-

transformacia/schema-podpory-digitalnej-
transformacie/index.html 

48 

 
                                                 
Table A10.1: Key Digital Decade targets monitored by DESI indicators 

(1) The 20 million target represents about 10% of total employment. 
(2) The Fibre to the Premises coverage indicator is included separately as its evaluation will also be monitored separately and 
taken into consideration when interpreting VHCN coverage data in the Digital Decade. 
(3) At least 75 % of Union enterprises have taken up one or more of the following, in line with their business operations: (i) cloud 
computing services; (ii) big data; (iii) artificial intelligence.  

Source: Digital Economy and Society Index 

49 

EUDigital Decade target by 2030 DESI 2021DESI 2022DESI 2023DESI 2023(EU)Digital skillsAt least basic digital skillsNA55%55%54%80%% individuals2021202120212030ICT specialists (1)4.2%4.3%4.3%4.5%20 million% individuals in employment aged 15-7420202021202120212030Digital infrastructure/connectivityFixed Very High Capacity Network (VHCN) coverage50%67%71%73%100%% households20202021202220222030Fibre to the Premises (FTTP) coverage (2)49%62%67%56%-% households20202021202220222030Overall 5G coverage0%14%55%81%100%% populated areas202020212022202220305G coverage on the 3.4-3.8 GHz spectrum bandNANA39%41%-% populated areas202220222030Digitalisation of businessesSMEs with at least a basic level of digital intensityNANA60%69%90%% SMEs202220222030Big data (3)6%6%6%14%75%% enterprises20202020202020202030Cloud (3)NA31%31%34%75%% enterprises2021202120212030Artificial Intelligence (3)NA5%5%8%75%% enterprises2021202120212030Digitalisation of public servicesDigital public services for citizensNA656777100Score (0 to 100)2021202220222030Digital public services for businessesNA757884100Score (0 to 100)2021202220222030Access to e-health recordsNANA4471100Score (0 to 100)202320232030Slovakia 
 
 
  
 
 
 
 
 
 
ANNEX 11: INNOVATION 

This  Annex  provides  a  general  overview  of  the 
performance of Slovakia’s research and innovation 
system,  which  is  essential  for  delivering  the  twin 
green and digital transition. 

Slovakia  is  an  ‘emerging  innovator’  and  the 
gap  between  its  performance  and  the  EU 
average  is  widening.  According  to  the  2022 
edition of the European Innovation Scoreboard (83), 
its  performance  is  improving  (by  4.6  percentage 
points)  but  at  a  rate  lower  than  the  EU  average 
(9.9 pps). 

R&D  intensity (84)  remains  low.  While  2020 
saw a solid year-on-year increase in R&D intensity 
(0.83% of GDP in 2019 against 0.91% in 2020), it 
remains significantly below EU  average (2.26% in 
2021)  and  below  the  country’s  peak  in  2015 
(1.16%). This is driven by low levels of both public 
expenditure  on  R&D  (0.41%  of  GDP in  2021)  and 
private  expenditure  on  R&D  (0.52%).  Moreover, 
dissatisfactory 
implementation  of  European 
Structural  and  Investment  Funds  in  the  research 
and innovation (R&I) thematic area (85)  resulted in 
several  decommitments  and  hindered  the  flow  of 
resources to R&I beneficiaries. Slovakia’s recovery 
and 
addresses 
plan 
underinvestment  within  the  system  and  puts 
to  ensure  more  efficient 
forward 
management  and  strengthening  of  R&I  funding. 
R&I 
large 
Considering 
investment (86) 
further 
Slovakia's 
commitments are necessary to sustain public R&D 
funding beyond 2026. In this sense, the new 2030 
R&D  expenditure  targets (87),  featuring  in the  new  
national  R&I  strategy,  represent  a  good  approach 
for the period ahead. 

resilience 

reforms 

volume 

(RRP) 

RRP, 

the 

of 

in 

barrier  to  better  performance  for  the  R&I 
ecosystem. Scientific excellence remains weak, as 
evidenced  by  the  share  of  scientific  publications 
among  the  top  10%  most  cited  publications.  The, 
currently percentage is around half the EU average 
(4.5%  in  2019  compared  to  the  EU  average  of 
9.8%).  The  low  quality  of  the  scientific  base  also 
results  in  a  low  ability  to  retain  researchers  and 
attract  students (88).  Slovakia’s  RRP  aims  to 
scientific 
introduce  a 
performance  evaluations 
to 
improve the quality of their scientific performance. 
The  RRP  also  features  investment  streams  for 
excellent science teams and young scientists. 

system  of  periodic 

for  universities, 

are 

Science-business 
not  well 
links 
established  and  hinder  the  transfer  of 
technology  and  knowledge.  Public  expenditure 
on R&D financed by business enterprise (national) 
as a percentage of total public R&D expenditure is 
significantly  below  the  EU  average  (1.98%  in 
2020, in comparison to the EU average of 7.45%) 
and  shows  a  worrying  downward  trend.  More 
positively,  the  number  of  public-private  scientific 
total 
co-publications  as  a  percentage  of 
publications  is  increasing  but  also  remains  below 
the EU average (6.6% in 2021 compared with the 
EU 
Private-sector 
commercialisation of research is held back by the 
lack  of  innovation  spending  and  the  lack  of 
business  engagement  with  higher  education 
institutions (89). 
science-business 
cooperation,  the  RRP  aims  to  mobilise  private 
participation  in  R&D  though  several  schemes  and 
by  transforming  the  Slovak  Academy  of  Sciences 
facilitate 
organisation, 
into 
collaboration with private entities. 

average 

7.1%). 

foster 

public 

To 

of 

to 

a 

A  weak  public  research  system  and  low-
quality  scientific  outputs  constitute  a  major 

(83)  2022, European Innovation Scoreboard, Country profile: 

Slovakia, ec_rtd_eis-country-profile-sk.pdf (europa.eu). The 
EIS provides a comparative analysis of innovation 
performance in EU countries, including the relative strengths 
and weaknesses of their national innovation systems. 

(84)  R&D intensity is defined as gross domestic expenditure on 

R&D as a percentage of GDP. 

(85)  OECD (2021) ‘Promoting Research and Innovation in the 

Slovak Republic through an effective use of European Funds’. 

(86)  Total RRP volume equals 206% of public R&D expenditure in 

2020. 

(87)  Public expenditure on R&D from the national budget to reach 
0.67% of GDP by 2030 and private expenditure on R&D to 
reach 1.2% of GDP. 

The  data  show  mediocre  results  in  terms  of 
innovation  outputs  and  business  innovation 
performance.  Slovakia  performs  poorly  as 
regards  the  number  of  patent  applications  (in 
2019,  0.5 patents  were  filed  under  the  Patent 
Cooperation Treaty per billion GDP against the EU 
average  of  3.3).  Though  the  share  is  higher  for 
thematic 
and 
and 
communication  technology  patent  applications, 
numbers  are  falling  in  both  those  fields.  The 
number  of  researchers  employed  by  businesses 

information 

green 

(88)  In Slovakia, the share of tertiary students enrolled abroad is 
the second highest in the EU. (Education at a Glance 2022: 
OECD Indicators). 

(89)  OECD (2021) SME and Entrepreneurship Policy in the Slovak 

Republic 

50 

 
 
                                                 
                                                 
 
was  very  low  (in  2019,  1.5  per  thousand  active 
population against the EU average of 5.1), and, in 
2020, small and medium-sized enterprises (SMEs’) 
expenditure  on  R&D  accounted  for  just  0.21%  of 
GDP, compared with the EU average of 0.36%. 

Graph A11.1: Patent applications filled under PCT 
in 2020 (per billion GDP in PPS) 

Source: Eurostat, 2022 

Although  Slovakia  offers  generous  R&D  tax 
incentives,  the  take-up  rate  by  firms  is  still 
relatively  low  (foregone  tax  revenues  at  0.028% 
against EU average of 0.100% in 2019). While the 
availability  of  venture  capital  continues 
to 
increase,  venture  capital 
investment  as  a 
percentage of GDP remains below the EU average 
(see  Table  A11.1).  The  RRP  envisages  voucher 
support schemes: innovation vouchers to stimulate 
SMEs  to  cooperate  with  research  organisations 
and  digital  vouchers  to  promote  the  digitalisation 
for  SMEs  and 
of  services  and  processes 
enterprises. The resources available under the RRP 
will  be  used  to  set  up  financial  instruments  to 
support  innovation.  However,  the  RRP  does  not 
tackle (90) 
innovation 
issues  with  the  overall 
support  set-up  to  further  enhance  innovation 
diffusion in business. 

(90)  These issues are also addresses in Programme Slovakia: 

2021-2027 under Specific goal: Development/expansion of 
R&D capacities and advanced technologies in RIS3 domains.  

51 

0.50123456789SEFIDKDENLATFRBEITLUSIIEESEEMTHUPTCZCYLVELHRLTBGPLSKRO 
   
 
 
 
 
 
 
                                                 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Table A11.1: Key innovations indicators 

(1) EU average for the latest available year or the year with the highest number of country data. 
Source: Eurostat, OECD, DG JRC, Science-Metrix (Scopus database and EPO’s Patent Statistical database), Invest Europe 

52 

EUaverage (1)R&D intensity (GERD as % of GDP)0.611.160.830.910.932.26Public expenditure on R&D as % of GDP0.350.830.370.420.410.76Business enterprise expenditure on R&D (BERD) as % of GDP0.260.320.450.490.521.49Scientific publications of the country within the top 10% most cited publications worldwide as % of total publications of the country 2.73.74.5::9.8PCT (Patent Cooperation Treaty) patent applications per billion GDP (in PPS)0.50.60.5::3.3Public-private scientific co-publications as % of total publications5.45.26.166.67.1Public expenditure on R&D financed by business enterprise (national) as % of GDP0.0280.0360.0080.008:0.054New graduates in science & engineering per thousand pop. aged 25-3417.613.198.8:16Total public sector support for BERD as % of GDP0.0310.0350.045::0.194R&D tax incentives: foregone revenues as % of GDP0.000020.0030.028::0.1Share of environment-related patents in total patent applications filed under PCT (%)17.7 20.210 : :13.3 Venture capital (market statistics) as % of GDP0.0010.0080.0110.0170.0250.074Employment in fast-growing enterprises in 50% most innovative sectors9.67.77.8::5.520212020Slovakia201020152019Finance for innovation and economic renewalKey indicators Quality of the R&I systemAcademia-business cooperationHuman capital and skills availabilityPublic support for business enterprise expenditure on R&D (BERD)Green innovation  
 
 
 
  
 
ANNEX 12: INDUSTRY AND SINGLE MARKET 

Productivity  growth remains a key  challenge 
for  the  Slovak  economy.  Underperformance  in 
education  and  innovation  areas,  low  efficiency  of 
public  institutions  and  the  quality  of  the  business 
environment  result  in  low  labour  productivity  in 
Slovakia.  In  the  last  decade,  productivity  has 
decreased from 82% per person in PPS in 2011 to 
73% in 2022 of the EU average, markedly lagging 
behind its direct peers (Graph A12.1).  

value 

chains 

in  global 

Moreover,  the  impact  of  high  energy  prices  and 
disturbances 
that 
businesses  and  industry  faced  further  negatively 
affect  productivity  growth  (see  also  Annex  7). 
Productivity in different sectors varies significantly 
according  to  exposure  to  international  markets, 
size of firm and foreign vs. domestic ownership of 
businesses.  Even 
though  overall  productivity 
growth in industry was the 2nd highest in the EU in 
2021 (14.5% in SK vs 7.1% in the EU), in 2022 it 
has considerably declined and reached a negative 
growth of 2.6%, below the EU average of 1.4%. 

In  addition,  Slovakia  has  one  of  the  highest  skills 
shortages  across  a  number  of  high  and  medium-
skilled  jobs  in  the  EU (91),  which  significantly 
affects the country’s economic growth. 

Graph A12.1: Labour productivity per person (in 
PPS and in % of the EU) 

Source: Eurostat 

Slovak  businesses  face  risks  related  to  the 
current geopolitical situation, affecting their 
competitiveness.  In  the  World  Competitiveness 
ranking,  Slovakia  ranks  49th  (out  of  69  countries) 
in 2022, its position in the economic performance 
indicator  deteriorating  by  10  places  compared  to 
2019 (92).  

While still recovering from the pandemic crisis, the 
energy  crisis  has  a  substantial  impact  on  the 
operations  of  businesses,  especially  for  energy-
intensive industries, such as aluminium, ferroalloy, 
steel and fertilisers, resulting in worker layoffs and 
reductions in or shutdown of production processes.  

At  the  end  of  2022  the  confidence  indicator  in 
industry was the lowest since May 2020, adversely 
affected notably by the decrease in orders, mainly 
recorded in manufacturing (93). On the other hand, 
more  and  more  industrial  firms  are  using  the 
threat  of  energy  crisis  as  an  opportunity  and  are 
starting  to  build  their  own  power  installations. 
Also,  the  decarbonisation  scheme  under  the 
Recovery  and  Resilience  Facility  could  increase 
energy security and further contribute to the green 
transition  of  the  industrial  producers  with  the 
highest emissions. 

Slovak  businesses  are  well  integrated  into 
the Single Market and in global value chains. 
Slovakia’s trade integration in goods within the EU 
(63% in SK vs. the 21% EU average) and openness 
to  imports  of  goods  within  and  outside  the  EU 
(82%  in  SK  vs.  the  33%  EU  average)  are  the 
highest in the EU as a share of national GDP (94).  

integration 

The  Slovak  economy  is  vulnerable  to  external 
shocks due to its dependence on industry, exports 
and  high 
in  global  value  chains. 
Slovakia  has  the  2nd  highest  share  of  exporting 
and  importing  firms  among  EU  member  states. 
The  number  of  Slovak  firms  facing  disruptions  in 
the  form  of  materials  shortages  increased  from 
23%  in  2021  to  32%  in  2022,  with  the  most 
significant impact in the automotive industry.  

improvement 
(such  as 

Slovakia  could  further  benefit  from  the 
Single  Market.  The  Single  Market  Scoreboard 
in 
indicates  scope  for  further 
Slovakia.  Professional  services 
tax 
advisers, architects, civil engineers, lawyers, patent 
remain  highly 
agents  and 
tourist  guides) 
regulated (95).  Lawyers  in  Slovakia  are  subject  to 
incompatibility 
and  multidisciplinary 
restrictions.  This  could  affect  the potential  of  this 
sector to innovate and roll out digital solutions and 
new  business  models.  The  fragmented  system 
regulating  civil  engineers  could  hinder  the  free 

rules 

(91)  Education and Training Monitor 2022 (europa.eu) 

(94)  Single Market Scoreboard 2021 

(92)  Rankings published by the World Competitiveness Center - 

IMD, 2022 

(95)  Communication on updating the reform recommendations 
for regulation in professional services, COM(2021)385 

(93)  SK Statistical Office: Business tendency surveys, Nov. 2022 

53 

405060708090200520062007200820092010201120122013201420152016201720182019202020212022CzechiaHungaryPolandSlovakia 
 
   
                                                 
                                                 
 
 
movement  of  professionals  and 
rules 
spreading  responsibility  over  different  categories 
of professionals in the same area of activity could 
impact the efficiency of service provision.  

the 

(RRP)  on 

The adopted reform under Slovakia’s recovery and 
resilience  plan 
the  recognition  of 
professional  qualifications  could  simplify  some 
aspects  of  this  for  foreign  professionals,  to 
facilitate their establishment in Slovakia. However, 
the  reform is  primarily  focused  on  the  healthcare 
sector and is limited to certain aspects only. 

regulatory  barriers 

in  professional 
Reducing 
services can promote market entry and may foster 
competition  on  quality  and  prices,  as  well  as 
productivity increases in the regulated sectors and 
across industries to whom they serve as inputs (96).  

Graph A12.2: Business environment and 
productivity drivers 

Source: 1) % of GDP, 2021 Eurostat;  
2) composite indicator, 2021 European Investment Fund 
access to finance index;  
3) average payment delay in number of days, 2022 Intrum;  
4) % of firms in manufacturing facing constraints, 2022 
European Commission business consumer survey;  
5) proportion of contracts awarded with a single bidder, 2022 
Single Market Scoreboard. 

The  business  environment  is  improving,  but 
challenges  remain.  A  reform  under  the  RRP  to 
reduce  administrative  burden  for  businesses  was 
introduced.  State  administration  offices  will 
systematically  ensure  compliance  with  the  new 
measures such as 1in2out rule, ex-post evaluation 
of  laws  and  regulations,  and  protection  against 
that 
unjustified  Gold-Plating.  Also,  barriers 

businesses perceive as redundant will be removed. 
A  second  anti-bureaucratic  package  of  198 
individual  measures  (followed  by  the  first  one  of 
2020)  based  on  stakeholder  consultations  was 
adopted 
the  business 
environment  and  reduce  the  excessive  regulatory 
burden on businesses (97).  

in  2022 

improve 

to 

On the other side, late payments continue to be a 
serious  structural  issue,  especially  in  the  health 
sector,  with  an  average  payment  time  of  232 
days (98),  seriously  affecting  SMEs’  liquidity  and 
the 
investment.  This 
exceptional  period  of  60  days  set  out  in  the  Late 
Payment Directive for this sensitive sector.  

is  almost  four 

times 

With  one  of  the  highest  inflation  rates  in  the  EU, 
and  producer  prices  having  increased  by  almost 
40% by the end of 2022 compared to the previous 
year (99), late payments degrade Slovak purchasing 
power,  exacerbating  the  problem.  Moreover,  the 
multiple crises have mainly harmed Slovakia’s less 
productive,  unprofitable,  and 
indebted  firms. 
Slovakia  reported  three  times  more  bankruptcy 
declarations in 2022 than the EU average (262 vs. 
86),  while  business  registrations  were  slightly 
below the EU average (120 in SK vs. 121 in the EU 
in 2022) (100).  

to 

Energy  costs,  skilled  staff  and  uncertainty 
about  the  future  have  become  the  major 
long-term  barriers 
investment.  The 
investment  level  in  Q2  2022  compared  to  Q4 
2019  decreased  by  almost  10%  in  Slovakia (101). 
Obstacles such as lower demand for products and 
services  and 
labour  market  and  business 
regulations  further  hampered  growth  and  risked 
delaying  the  digital  and  green  transitions  of  the 
economy.  Further  efforts  would  be  needed  to 
facilitate permitting procedures such as by revising 
the  thresholds  for  a  full  Environmental  Impact 
Assessment  on 
to 
renewable 
accelerate  the  deployment  of  renewable  energy 
installations.  

technologies, 

A  Eurobarometer  survey (102)  shows  that  62%  of 
investors  are  either  fairly  or  very 
surveyed 

(97)  economy.gov.sk_kilecko2 (gov.sk) 

(98)  GROW monitoring report, February 2023  

(99)  Eurostat: Industrial producer prices 

(100) Eurostat: Business registration and bankruptcy index 

(101) EIB Investment Survey, 2022 

(96)  OECD - impact of_the_2022 RRP on PMR.pdf 

(102) For more information, please see the EU Justice Scoreboard. 

54 

1) Businessinvestments2) EIF access tofinance index3) Payment gap- G2B3) Payment gap- B2B4) Materialshortage4) Labourshortage5) Single bidsEuropean UnionSlovakia 
      
                                                 
                                                 
based  on  engagement  with  various  stakeholders 
beyond  public  procurement  professionals.  The 
efficiency  of  the  tendering  process  might  be 
further enhanced by streamlining and rationalising 
the national e-procurement system. 

strategic 

dependencies 

Slovakia  could  play  an  important  role  in 
addressing 
by 
in  critical  raw 
developing  value  chains 
materials.  It  has  a  long-standing  mining  and 
metallurgy tradition and a good mineral potential. 
Slovakia  is  the  most  significant  EU  producer  of 
magnesite and magnesium compounds. In 2019, it 
ranked  4th  globally 
in  mined  production  of 
magnesite,  accounting  for  nearly  4%  of  world 
production. Moreover, Slovakia was the 3rd largest 
producer  of  manganese  ferroalloys  in  the  EU.  In 
addition,  it  hosts  a  notable  production  of  primary 
aluminium  and  talc,  among  other  mineral  and 
metal commodities. Intensifying the dialogue with 
the  conditions  under  which 
the  public  on 
sustainable  raw  materials  extraction,  processing 
and  recycling  could  take  place  would  help  to 
spread  awareness  and  knowledge  about  the 
importance  of  raw  materials  for  the  green  and 
digital transition in Slovakia and the EU.  

unconfident  in  terms  of  their  investment  being 
if 
law  and  courts 
protected  by 
something  goes  wrong.  As  the  main  reason  for 
their  concerns,  most  respondents  (80%)  give 
‘unpredictable,  non-transparent  administrative 
conduct, and difficulty to challenge administrative 
decisions in court’. 

in  Slovakia 

Improving  access  to  finance  also  remains 
critical  for  boosting  investment.  Access  to 
finance  continues  to  be  underdeveloped  in  both 
loans  and  equity,  which  hampers  investment 
potential  in  Slovakia.  The loan  index  in  2021  was 
still  below  the  EU  average  and  remained  almost 
on the same level as in 2013. The equity index has 
decreased in  recent  years;  in  2021  it  reached the 
lowest  level  since 2013 (0.05), well  below the EU 
average (0.23).  

in 

Slovakia’s 

performance 

Moreover, 
the 
percentage indicator for rejected or refused loans, 
the  7th  worst  in  the  EU  in  2022,  continues  to  be 
weak. 17% of SMEs applying for a bank loan were 
rejected  or  refused  loans  in  2022.  At  the  same 
time,  the  interest  rates  charged  on  SMEs’  bank 
overdrafts and credit lines were the highest in the 
EU in 2021 (4.9% compared to the EU average of 
2.5%) (103).  Financial  instruments  are  planned  to 
support  innovative  businesses  under  the  RRP  but 
more  needs  to  be  done  to  further  promote  the 
availability of finance for entrepreneurs, especially 
SMEs and innovative firms (see also Annex 11). 

Despite  the  adoption  of  the  comprehensive 
RRF reform on public procurement, helping to 
simplify  and  accelerate  procedures  and 
improve  control  mechanisms,  challenges 
persist.  Slovakia  still  significantly  underperforms 
in  the  use  of  quality-related  and  lifecycle  cost 
criteria  in  public  procurement  operations.  96%  of 
public  contracts  (the  highest  proportion  in  the  EU 
in  2022) were awarded based on price alone (104). 
Also,  the  competition  on  the  public  procurement 
market  has  deteriorated  in  recent  years.  The 
percentage  of  public  contracts  awarded 
in 
procedures  where  there  was  just  one  bidder 
increased  almost  by  10%  in  the  last  five  years 
(30% in 2022 compared to 21% in 2018).  

On the other side, Slovakia could benefit from the 
planned  professionalisation  of  public procurement 

(103) SAFE 2022, SAFE 2021 

(104) Single Market Scoreboard, 2022 

55 

 
                                                 
Table A12.1: Industry and the Single Market 

(*) Last available year 
Source: (1) AMECO, (2) Eurostat: NAMA_10_LP_A21, (3) ECFIN BCS, (4) Eurostat: jvs_a_rate_r2, (5) COMEXT, (6) Eurostat: 
nrg_inf_epc, (7) Eurostat: BOP_C6_A, (8) OECD, (9) Single Market Scoreboard, (10) EIB survey, (11) Eurostat: sts_rb_a, (12) Intrum 
(13) SAFE Survey, (14) EIF SME Access to Finance Index. 

56 

POLICY AREAINDICATOR NAME20182019202020212022EU27 average (*)Net private investment, level of private capital stock, net of depreciation, % GDP (1)3.44.21.722.33.7Net public investment, level of public capital stock, net of depreciation, % GDP (1)0.60.50.30.10.20.4Real labour productivity per person in industry (% yoy)(2)7.310-10.214.5-2.61.4Cost competitive-nessNominal unit labour cost in industry (% yoy)(2)1.3-4.412.8-6.79.42.9Material shortage (industry), firms facing constraints, % (3)1299233247Labour shortage using survey data (industry), firms facing constraints, % (3)352714232728Vacancy rate (business economy)(4)1.210.70.70.93.1Concentration in selected raw materials, Import concentration index based on a basket of critical raw materials (5)0.230.20.230.240.250.18Installed renewables electricity capacity, % of total electricity produced (6)41.441.540.942.4n.a.50.9Single Market integrationEU trade integration, % (7)68.867.362.066.973.545.8RestrictionsEEA Services Trade Restrictiveness Index (8)0.040.040.040.04n.a.0.05Public procurement Single bids, % of total contractors (9)212526273029Investment obstaclesImpact of regulation on long-term investment, % of firms reporting business regulation as major obstacle (10)4225.921.122.427.829.6Bankruptcies, Index (2015=100)(11)539.7605.5406.8355.1262.586.8Business registrations, Index (2015=100) (11)139.2143.3135.6143.1120.1121.2Payment gap - corporates B2B, difference in days between offered and actual payment (12)0214131313Payment gap - public sector, difference in days between offered and actual payment (12)4316101315Share of SMEs experiencing late payments in past 6 months, % (13)n.a.54.350.845.655.143EIF Access to finance index - Loan, Composite: SME external financing over last 6 months, index values between 0 and 1 (14)0.370.320.30.34n.a.0.46EIF Access to finance index - Equity, Composite: VC/GDP, IPO/GDP, SMEs using equity, index values between 0 and 1 (14)0.060.070.070.05n.a.0.23BUSINESS ENVIRONMENT - SMEsBusiness demographyLate paymentsAccess to financeHEADLINE INDICATORSEconomic StructureRESILIENCEShortagesStrategic dependenciesSINGLE MARKET 
 
      
 
law  enforcement  system, 

The 
justice  system  faces  challenges  as 
regards  its  efficiency.  The  time  to  resolve 
administrative cases at first instance continued to 
increase  to  679  days  in  2021  (from  585  days  in 
2020).  At  the  same  time,  the  rate  of  resolving 
administrative  cases  at  first  instance  decreased 
(to 80.1% in 2021 from 86% in 2020). The quality 
of  the  justice  system  is  overall  good,  although 
some  concerns  remain  regarding  the  integrity  of 
the 
linked  to  the 
discretionary  power  of  the  Prosecutor-General  to 
annul investigations of high-level corruption cases. 
Some further challenges remain in the prevention 
of  and  fight  against  corruption.  The  level  of 
digitalisation  of 
is  very 
advanced.  Digital  tools  are  widely  used  in  courts, 
including  an  electronic  case  management  system, 
technology 
for  distance  communication  and 
electronic  case  allocation.  As  regards  judicial 
independence, no systemic deficiencies have been 
reported (109). 

justice  system 

the 

ANNEX 13: PUBLIC ADMINISTRATION 

This  Annex  outlines  the  performance  of 
Slovakia’s  public  administration,  which  is 
essential for providing services and carrying 
out  reforms.  Overall, 
the  effectiveness  of 
Slovakia’s  public  administration  continues  to  rank 
below  the  average  in  the  EU-27 (105).  To  address 
this,  there  are  plans  to  reduce  the  administrative 
burden,  helping  citizens  as  well  as  businesses. 
Multi-level  governance  remains  a  challenge  as 
Slovakia  has  a  very  fragmented  system  of  local 
government, making it more difficult to implement 
policies and investment projects. 

Policy-making  and  regulatory  governance 
remain  at  a  good  level.  Slovakia’s  scores  in 
these areas are around the EU average or slightly 
above it. Slovakia has adopted the core regulatory 
impact  assessment  processes,  although  these 
could be more evenly applied across the board. 

There  are  difficulties  in  ensuring  sufficient 
administrative  capacity.  Importantly,  political 
influence in staffing and appraisals remains a risk. 
As  regards  European  Structural  and  Investment 
Funds  (ESIF),  Slovakia  continues  to  battle  with 
inefficient  management  and 
low  absorption, 
leading  to  significant  decommitments (106).  With 
the deadline for the use of funds from ESIF 2014-
2020  approaching,  Slovakia  has  currently  used 
only around 72%3 (see also Annex 4). 

indicators, 

e-government 

low  scores 
‘impact’ 

Slovakia  scores  below  the  EU  average  on 
various 
and 
government 
transparency  and  oversight 
institutions  (Graph  A13.1  and  Annex  10).  In  the 
provision  of  open  data,  it  scores  29th  out  of  35 
in  the 
countries,  with  especially 
dimensions  of 
(Graph 
‘portal’  and 
A13.1b) (107).  Slovakia  remains  below  average  in 
the  online  provision  of  services.  The  overall  e-
government  maturity  score  is  62%  compared  to 
an  EU  average  of  73% (108),  although  with  an 
above  average  score  at  regional  and  local  level. 
The  range  of  activities  of  its  independent  fiscal 
institution  is  also  narrower  than  that  of  the 
average EU country, but this has expanded slightly 
in recent years.  

(105) Worldwide Governance Indicators, 2021 

(106) https://www.mfsr.sk/files/archiv/8/MaUS_NIRP2.pdf  

(107) https://data.europa.eu/en/publications/open-data-maturity  

(108) https://digital-strategy.ec.europa.eu/en/library/egovernment-

benchmark-2022  

(109) For a more detailed analysis of the performance of the 
justice system in Slovakia, see the 2023 EU Justice 
Scoreboard (forthcoming) and the country chapter for 
Slovakia in the 2023 Rule of Law Report (forthcoming). 

57 

 
 
                                                 
                                                 
 
Table A13.1: Public administration indicators 

(1) High values denote a good performance, except for indicator # 6. (2) 2022 value. If not available, the 2021 value is shown. 
(3) Measures the user centricity (including for cross-border services) and transparency of digital public services as well as the 
existence of key enablers for the provision of those services. (4) Defined as the absolute value of the difference between the 
percentage of men and women in senior civil service positions. 
Flags: (b) break in time series; (d) definition differs; (u) low reliability. 
Source: ICT use survey, Eurostat (# 1); E-government benchmark report (# 2); Open data maturity report (# 3); Labour Force 
Survey, Eurostat (# 4, 5, 7), European Institute for Gender Equality (# 6); Fiscal Governance Database (# 8, 9); OECD Indicators of 
Regulatory Policy and Governance (# 10).  

Graph A13.1: Slovakia. a) E-government maturity and e-government users, b) Open government data 
maturity indicator: 2022 scores (% of the total maximum score) (lhs); country ranking, overall score 
(rhs) 

(1) a) 2022 data for the e-government maturity indicator and 2021 data for the e-government users indicator, b) right hand side 
chart: low values denote a good performance 
Source: a) E-government benchmark report and Eurostat, b) Open Data Maturity | data.europa.eu 

58 

0510152025300%10%20%30%40%50%60%70%80%90%PolicyQualityPortalImpactTotal20182019202020212022Open data 2022Open data rankingSK2022EU27SK0102030405060708090100User centricityTransparencyKey enablersCB servicesTotalE-government maturityE-governmentusersSK201720182019202020212022EU-27(2)156.961.669.367.862.1n/a64.82n/an/an/a60.659.862.472.93n/a0.70.30.50.50.60.8436.838.342.845.252.2 (b)51.052.054.46.76.93.26.1 (b)22.2 (b)16.963.47.05.65.60.46.011.072.02.32.22.02.0 (b)2.41.580.80.80.80.80.8n/a0.791.41.41.41.41.4n/a1.5101.97n/an/an/a1.98n/a1.7Medium term budgetary framework indexIndicator (1)E-government and open government dataShare of individuals who used the internet within the last year to interact with public authorities (%)E-government benchmark overall score (3) Open data and portal maturity indexEducational attainment level, adult learning, gender parity and ageingShare of public administration employees with tertiary education (levels 5-8, %)Participation rate of public administration employees in adult learning (%)Gender parity in senior civil service positions (4)Ratio of 25-49 to 50-64 year olds in NACE sector OPublic financial management Strength of fiscal rules indexEvidence-based policy makingRegulatory governance 
 
  
 
   
 
FAIRNESS 
ANNEX 14: EMPLOYMENT, SKILLS AND SOCIAL POLICY CHALLENGES IN LIGHT OF 
THE EUROPEAN PILLAR OF SOCIAL RIGHTS  

The  European  Pillar  of  Social  Rights  is  the 
compass  for  upward  convergence  towards 
better  working  and  living  conditions  in  the 
EU. This Annex provides an overview of Slovakia’s 
progress in implementing the Pillar’s 20 principles 
and EU headline and national targets for 2030 on 
employment, skills and poverty reduction. 

Table A14.1: Social Scoreboard for Slovakia 

(6.2%), 

the  EU  average 

crisis in line with economic activity (110). It reached 
76.7%  in2022,  above  the  EU  average  of  74.6% 
and  the  2030  national  target  (76.5%).  While  the 
unemployment  rate  at  6.1%  in  2022  was  slightly 
below 
long-term 
unemployment  is  still  a  challenge:  the  share  of 
long-term  unemployed  people  out  of  the  total 
number  of  jobseekers  in  the  same  quarter  was 
66.7%  (EU:  37.7%).  In  addition,  there  are  big 
regional  disparities  between  the  west  of  the 
‘catching-up’ 
country  and 
regions (111) 
and 
Bánskobystrický),  where  unemployment  rates  are 
much  higher.  Active  labour  market  policies  in 
Slovakia  suffer  from  a  lack  of  administrative 
capacity, especially at local level, and they do not 
sufficiently  respond  to  the  needs  of  the  most 
vulnerable  groups.  The  European  Social  Fund  Plus 
(ESF+)  is  set  to  finance  activities  tackling  long-
term  employment  with  tailor-made  support  to 
jobseekers,  with  a  budget  of 
disadvantaged 
EUR 641 million. 

the  eastern  and 
(Košický, 

Prešovský 

Update of 27 April 2023. 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 2023. Due to changes in the 
definition of the individuals' level of digital skills in 2021, 
exceptionally only levels are used in the assessment of this 
indicator; NEET: neither in employment nor in education and 
training; GDHI: gross disposable household income. The Social 
protection and inclusion section and the income quintile share 
ratio indicator are based on the 2020 data, as the 2021 
statistical update became available after the cut-off date. 
Source: Eurostat 

The Slovak labour market recovered in 2021 
and  2022,  but  many  challenges  persist, 
particularly  long-term  unemployment.  The 
employment  rate  recovered  from  the  COVID-19 

The  insufficient  capacity  of  early  childhood 
remains  a  major 
education  and  care 
challenge  and  contributes  to  the  persisting 
gender pay gap. Slovakia ranks at the bottom of 
the  Gender  Equality  Index  2022  (56  out  of  100 
points).  The  gender  employment  gap  increased  to 
8.1percentage points in 2022 from 7.3 percentage 
points  in  2020.  The  gender  pay  gap  (15.8%), 
although  narrowing  since  2019,  is  still  above  the 
EU  average  (13%) (112).  The  relatively  low  labour 
market participation of women with young children 
is  also  an  issue.  This  is  caused  by  the  limited 
availability  of  early  childhood  education  and  care 
facilities  (enrolment  rate  for  children  aged  less 
than  3  years  is  only  7%) (113)  and  a  low  offer  of 
flexible work arrangements. 

Skills  mismatches,  low  participation  in  adult 
learning  and  a  relatively  high  rate  of  young 
people  not  in  education,  employment  or 

(110) GDP growth in 2021 and 2022 was 3% and 1.8% 

respectively. 

(111) Slovakia Catching-up Region Initiative (CuRI). 

(112) Report on the social situation of the Slovak population for 
2021 (Ministry of Labour, Social Affairs and Family). 

(113) Communication of the European Commission on the 
European Care Strategy, COM(2022) 440 final. 

59 

7.455.1812.38.1376.76.14.1126.8513.818.440.023.63.24.83.2Critical situationTo watchWeak but improvingGood but to monitorOn averagePolicy areaHeadline indicatorDynamic labour markets and fair working conditionsEmployment rate(% of population aged 20-64, 2022)Unemployment rate(% of active population aged 15-74, 2022)Long term unemployment(% of active population aged 15-74, 2022)GDHI per capita growth                                                              (2008=100, 2021)Equal opportunities and access to the labour marketEarly leavers from education and training(% of population aged 18-24, 2022)Share of individuals who have basic or above basic overall digital skills (% of population aged 16-74, 2021)Youth NEET rate(% of population aged 15-29, 2022)Gender employment gap(percentage points, 2022)Income quintile ratio (S80/S20) (2020)Better than averageBest performersSocial protection and inclusionAt risk of poverty or social exclusion (in %) (2020)At risk of poverty or social exclusion for children (in %) (2020)Impact of social transfers (other than pensions) on poverty reduction (% reduction of AROP) (2020)Disability employment gap (ratio) (2020)Housing cost overburden (% of population) (2020)Children aged less than 3 years in formal childcare (% of under 3-years-olds) (2020)Self-reported unmet need for medical care (% of population 16+) (2020) 
 
 
 
   
 
                                                 
 
to  11.6% 

training 
labour 
(NEET)  are  aggravating 
market  conditions.  The  proportion  of  young 
people  NEET  was  14%  in  2021  (EU:  13.1%)  and 
in  Q4-2022 (114).  Successful 
fell 
European  Social  Fund projects in  this  area  will  be 
followed  by  ESF+  funding  under  a  specific  Youth 
Guarantee priority to support reaching the national 
targets.  Among  OECD  countries,  Slovakia  has  one 
of the highest skills mismatches rate (35%) in the 
EU-ISCED  3-8 (115)  and  is  largely  affected  by 
waves of automation. Slovakia should make more 
efforts in reskilling/upskilling and adult learning. To 
achieve  the  national  target  for  participation  in 
adult  learning  over  the  past  12  months  of  50%, 
targeted  action  is  needed (116).  Furthermore,  the 
participation  in  adult  learning  over  the  past  4 
weeks  is  significantly  lower  than  the  EU  average 
(4.8% vs 10.8% in 2021) (117). 

Table A14.2: Situation of Slovakia on 2030 
employment, skills and poverty reduction targets 

(15.6%).  Yet,  there  are  large  regional  disparities, 
with  the  east  of  the  country  experiencing  deeper 
levels  of  poverty  and  social  exclusion.  In  2020, 
AROPE  rates  were  5%  in  Bratislava,  10%  in 
Western  Slovakia  and  above  20%  in  Eastern 
Slovakia.  Tackling  these  differences  is  crucial  to 
achieving the 2030 EU headline target on poverty 
reduction  (70 000  fewer  people  AROPE  compared 
to 2019). Minimum income support is provided by 
in  material  need’ (119)  scheme, 
the‘assistance 
which  faces  challenges,  including  in  terms  of  its 
adequacy (120). 

reached  15.4% 

The  risk of  the  social  situation  deteriorating 
is exacerbated by high inflation and a lack of 
affordable  housing.  The  annual  inflation  rate  in 
(Euro  area 
December  2022 
average  was  9.2 %).  Despite  highlighting  social 
and  rental  housing  as  one  of  the  government’s 
priorities, Slovakia has so far failed to significantly 
invest  in  this  area.  In  December  2021,  the 
European  Systemic  Risk  Board  warned  Slovakia 
about medium-term vulnerabilities in the country’s 
residential  real  estate  sector (121).  The  housing 
situation  also  hampers  integrating  the  80 000 
displaced people from Ukraine staying in Slovakia. 
Women,  children,  older  people  and  persons  with 
disabilities make up most of the displaced people 
residing in Slovakia, and this presents a challenge 
for social inclusion and the education system. 

(1) Adult Education Survey, adults in learning in the past 12 
months 
(2) Number of persons at risk of poverty or social exclusion 
(AROPE), reference year 2019 
Source: Eurostat, DG EMPL. 

Slovakia  performs  well  on  the  share  of 
people  at  risk  of  poverty  or  social  exclusion 
(AROPE)  but 
regional  disparities 
remain. Despite an increase in 2021, Slovakia has 
one  of  the  lowest  AROPE  rates  in  the  EU (118) 

large 

largest  Roma  population 

The  situation  of  the  Roma  population 
remains  alarming 
in  terms  of  poverty, 
employment, education, social exclusion, and 
access  to  basic  services.  Slovakia  has  one  of 
the  EU. 
the 
Approximately  200 000  people  live  in  excluded 
areas,  with  no  access  to  drinking  water  from  the 
public  water  supply  and  essential  services (122).  A 
major  challenge  is  the  low-absorption  level  of 
European  Regional  Development  Fund  funding  for 
the MRC (123). According to the latest Roma Survey 

in 

(114) Youth unemployment and NEET – Employment Institute 

(iz.sk). 

(115) Education and Training Monitor 2022 (International Standard 
Classification of Education 3-8: upper secondary to PhD 
education). 

(119) Pomoc v hmotnej núdzi 

(120) Exploratory study: filling in the knowledge gaps and 

identifying strengths and challenges in the effectiveness of 
the EU Member States’ minimum income schemes (2021-
2022), APPLICA/ICF. 

(116) Participation in learning within the last 12 months. 

(121) 2022/C 122/07. 

(117) Report on the social situation of the Slovak population for 
2021 (Ministry of Labour, Social Affairs and Family). 

(118) Share of people at risk of poverty or social exclusion, 

Eurostat, ILC_PEPS01N. 

(122) Atlas of Roma Communities, Ministry of Interior, 2019. 

(123) In the 2014-2020 programming period, only some EUR 50 

million has so far been spent (less than 1% of the total ERDF 
allocation. 

60 

IndicatorsLatest dataTrend            (2015-2022)National target by 2030EU target by 203076.7(2022)42.6(2016)+47(2021)Adult learning1 (%)5060Employment (%)7778Poverty reduction2 (thousands)-70-15 000 
 
     
 
                                                 
                                                 
2021  by  the  EU  Agency for Fundamental  Rights, 
the  situation  of  Roma  NEETs  is  among  the  worst 
across  the  countries  observed  and  has  been 
deteriorating  since  2016.  The  same  survey  shows 
that Slovakia has the highest  figure in the EU for 
segregation  of  Roma  children  in  education,  which 
has  been  deteriorating  since  2016. 
its 
Partnership  Agreement,  Slovakia  committed  to 
invest EUR 900 million in MRC areas. 

In 

61 

 
 
ANNEX 15: EDUCATION AND TRAINING 

This  Annex  outlines  the  main  challenges  for 
Slovakia’s education and training system in light of 
the  EU-level  targets  of  the  European  Education 
Area  strategic  framework  and  other  contextual 
indicators,  based  on  the  analysis  from  the  2022 
Education and Training Monitor. 

EU 

Student 

average. 

Low  quality  and  inclusiveness  of  education 
continue  to  be  long-standing  challenges.  The 
proportion of young people with low basic skills in 
reading,  mathematics  and  science  -  as  measured 
by the PISA test (124) – is significantly higher than 
socio-economic 
the 
background greatly affects their performance. The 
proportion of pupils with special educational needs 
placed  in  fully  separate  educational  settings  in 
Slovakia is the highest among the 23 EU countries 
surveyed  (5.63%  vs  1.55%  in  EU-23) (125).  This 
trend  affects  in  particular  Roma  children  due  to 
misdiagnosis.  In  2020,  17%  of  pupils  from  the 
marginalised  Roma  communities  aged  6  to  15 
attended  a  special  school  or  a  special  needs 
class (126). Slovakia is preparing a curricular reform 
at  primary  and 
level,  and 
inclusive  education;  however, 
legislation  on 
stakeholders  have  voiced  concerns  regarding  the 
poor consultation process. 

lower  secondary 

Participation  in  early  childhood  education 
and care (ECEC) above age 3 remains one of 
the  lowest  in  the  EU  (78.1%  vs  EU  93%  in 
2020).  Furthermore,  only  33%  of  Roma  children 
above  age  3  attended  ECEC  (27%  in  2016) (127). 
Compulsory pre-primary education for 5-year-olds 
was  introduced  in  September  2021,  and  legal 
entitlement to ECEC for 4-year-olds is planned for 
2024  and  for  3-year-olds  in  2025.  Sustainable 
public financing, and high quality and inclusiveness 
of ECEC are key for inclusive growth. 

Early school leaving is below the EU average, 
but affects mainly the Roma community (128). 
The  share  of  early  leavers  from  education  and 

(124) OECD Programme for International Student Assessment. 

(125) The European Agency Statistics on Inclusive Education: 2018 

Dataset Cross-Country Report. https://www.european-
agency.org/resources/publications/european-agency-
statistics-inclusive-education-2018-dataset-cross-country 

training  decreased  further  in  2022  to  7.4%  (EU: 
9.6%),  but  remained  above  the  level  from  a 
decade ago (6.4% in 2013). Despite a notable drop 
in  2022,  the  rate  remains  the  highest  in  eastern 
Slovakia (10.9%), with its prevalence of the Roma 
population  and  with  consequences  for  their  job 
prospects and social inclusion (see Annex 14). The 
proportion of Roma aged 20-24 who completed at 
least  upper  secondary  education  decreased  to 
28% in 2021 from 38% in 2016 (129). Furthermore, 
the  proportion  of  Roma  children  aged  6-15 
attending  schools  where  ‘all  or most  schoolmates 
are Roma’ has increased to 65% (2020) from 60% 
in 2016 (130). 

Graph A15.1: Early leavers from education and 
training by region in Slovakia in 2013, 2018 and 
2022 (%) 

(1) Eastern Slovakia is a region in Slovakia at NUTS2 level.  
Source: Eurostat 

the 

The  quality  and  attractiveness  of  the 
teaching  profession  are  limited  and  teacher 
rise.  Continuing 
shortages  are  on 
professional development opportunities are limited 
and  schools  have  low  budgets  for  in-service 
training. Significant proportions of students do not 
choose the teaching profession due to low salaries 
(58%),  low  social  recognition  (31%)  and  high 
stress  (26%) (131).  Lower  secondary  teachers  in 
Slovakia  earn  23.4%  less  than  other  tertiary-
educated  employees (132).  The  recently  published 
teacher  forecasting  model  shows  that  by  2025, 
Slovakia  may  lack  almost  8 600  teachers (133), 
mainly  in  cities  and  the  Bratislava  region.  The 
biggest  demand  is  for  qualified  teachers  of 
languages, mathematics, physics, and information 

(129) Ibid. 

(130) EU SILC_MRK 2020. 

(126) EU SILC_MRK survey 2020. 

(127) FRA Roma Survey 2021. Roma in 10 European countries. 
https://fra.europa.eu/sites/default/files/fra_uploads/fra-
2022-roma-survey-2021-main-results_en.pdf 

(128) The estimated share of Roma in Slovakia is 9.1% (CoE, 

2011) 

(131) Perignáthová, M., (2019). Atraktivita učiteľského povolania. 

https://www.minedu.sk/data/att/15376.pdf. 

(132) OECD, 2022. Education at a Glance - Slovakia. 

(133) Balberčáková, M. et al., (2023). Prognóza počtu žiakov a 

učiteľov podl’a okresov do roku 2030. 
https://www.minedu.sk/data/att/25814.pdf  

62 

0%2%4%6%8%10%12%14%16%201320182022EUSlovakiaEastern Slovakia 
 
                                                 
  
                                                 
 
Table A15.1: EU-level targets and other contextual indicators under the European Education Area 
strategic framework 

Source: (1,3,4,5,7,8,9,10,11) = Eurostat; 2 = OECD (PISA); 6 = European Commission (Joint Research Centre). Notes: Data is not 
yet available for the remaining EU-level targets under the European Education Area strategic framework, covering 
underachievement in digital skills and participation of adults in learning. The equity indicator shows the gap in the share of 
underachievement in reading, mathematics and science (combined) among 15-year-olds between the lowest and highest quarters 
of socio-economic status. 

technology,  elementary  and  vocational  education 
and  training  teachers (134). 
In  2023,  Slovakia 
implements  two  salary  increases:  by  10%  from 
January and by 12% from September. Slovakia is 
considering  regional  top-up  contributions  to  the 
salaries in regions with higher costs of living (135). 

Participation in higher education continues to 
grow,  but  the  gender  gap  is  among  the 
widest  in  the  EU.  Between  2013  and  2022,  the 
tertiary  educational  attainment  rate  grew  by  9.4 
pps. However, the gender gap in favour of women 
has  also  widened;  at  22.8  pps,  it  was  in  2022 
among  the  highest  in  the  EU.  The  proportion  of 
graduates  in  science,  technology,  engineering  and 
mathematics  in  2021  was  below  the  EU  average 
(21.86% v 26%). 

(134) Profesia Portal, (2022). Profesia zmapovala, koľko sa v 
školstve reálne zarába a či je o miesta učiteľov záujem. 
https://firma.profesia.sk/profesia-zmapovala-kolko-sa-v-
skolstve-realne-zaraba-ci-je-o-miesta-ucitelov-zaujem/ 

(135) Balberčáková, M. et al., (2022). Možnosti regionálneho 

odmeňovania pedagogických a odborných zamestnancov v 
školstve. https://www.minedu.sk/data/att/25036.pdf 

on 

focused 

expanding 

The  reforms  and  investment  supported  with 
EU  funds  aim  to  help  address  some  of  the 
key challenges. Under the recovery and resilience 
plan,  Slovakia  started  to  develop  reforms  and 
investments 
ECEC, 
modernising  school  education,  reducing  early 
school  leaving,  improving  inclusiveness,  and  the 
quality  of  teacher  education.  In  higher  education, 
reforms are being implemented to improve quality, 
The 
and 
internationalisation 
programme 
includes 
further  measures  to  improve  the  quality  and 
inclusiveness  of  education,  with  a  focus  on  key 
competences,  digitalisation,  well-being,  and  the 
desegregation  of  the  Roma  community.  For 
example,  EUR 355  million  are  allocated  for 
education  support 
to  disadvantaged  people, 
notably  Roma.  Efficient  implementation  of  these 
measures  will  be  crucial  to  bring  the  necessary 
results. In 2022/23, over 10500 displaced children 
from Ukraine were integrated  in schools, however 
around 60% are outside the schooling system (136). 

(2021-2027)’ 

governance. 

‘Slovakia 

(136) http://bit.ly/3WsntL3 

63 

96%72.2%91.9%78.1%202093.0%2020Reading< 15%32.1% 20.0%31.4%201822.5%2018Mathematics< 15%27.7% 22.3%25.1%201822.9%2018Science< 15%30.7% 21.1%29.3%201822.3%2018< 9 %6.9%11.0%7.4% 9.6%Men6.9%12.5%7.5%11.1%Women6.8%9.4%7.3%8.0%Cities2.8%u9.6%:u8.6%Rural areas10.1%12.2%8.4%10.0%Native6.9%10.0%7.4%8.3%EU-born:u20.7%:u20.3%Non EU-born:u23.4%:u22.1%6Equity indicator (percentage points)::30.9201819.320187Exposure of VET graduates to work based learningTotal ≥ 60% (2025) : :56.5%60.1%45%31.3%36.5%39.1%42.0%Men23.5%31.2%27.9%36.5%Women39.6%41.8%50.7%47.6%Cities50.2%46.2%59.8%52.2%Rural areas23.8%26.9%29.4%30.2%Native31.2%37.7%39.1%43.0%EU-born:u32.7%:u39.5%Non EU-born:u27.0%:u35.7%37.2% 38.3%40.3%202039.2%2020Tertiary educational attainment (age 25-34)8Total8By gender9By degree of urbanisation10By country of birth11Share of school teachers (ISCED 1-3) who are 50 years or over1Participation in early childhood education (age 3+)2Low achieving 15-year-olds in:Early leavers from education and training (age 18-24)3Total3By gender4By degree of urbanisation5By country of birth20152022IndicatorTargetSlovakiaEU27SlovakiaEU27 
                                                 
                                                 
 
  
 
ANNEX 16: HEALTH AND HEALTH SYSTEMS 

A  healthy  population  and  an  effective, 
accessible  and  resilient  health  system  are 
prerequisites  for  a sustainable  economy and 
society.  This  Annex  provides  a  snapshot  of 
in 
population  health  and  the  health  system 
Slovakia.  

Slovakia’s  life  expectancy  at  birth  is  among 
the  lowest  in  the  EU,  and  it  continued  to 
decline  significantly  in  2021.  Between  2019 
and  2020,  life  expectancy  decreased  in  line  with 
the  EU  average.  In  2021,  however,  Slovakia 
suffered  one  of  the  largest  year-on-year drops in 
life  expectancy  of  all  EU  countries,  with  a 
reduction  of  more  than  2 years,  compared  to  a 
decline  of  approximately  4 months  across  the  EU 
(Graph  A16.1).  This  large  decline  closely  reflects 
the  much  higher  COVID-19  mortality  in  2021, 
which  increased  almost  fourfold  compared  to 
2020 (137)  -. In 2020, the leading causes of death 
system 
the 
were  diseases  of 
(“cardiovascular  diseases”)    followed  by  cancer. 
Cancer  mortality  is  one  of  the  highest  in  the  EU, 
with  colorectal  and  lung  cancer  being  the  most 
frequent causes of cancer death.   

circulatory 

Graph A16.1: Life expectancy at birth, years 

is 

goods 

medical 

average 
(mainly 
pharmaceuticals) (EUR 471 vs EUR 596 per capita 
in  the  EU  overall).  However,  these  absorb  a  share 
of  Slovakia’s 
is 
markedly above the EU average (31.8% vs 18.2%).  

total  health  spending 

that 

Spending  on  prevention  remains  among  the 
lowest  in  the  EU.  Between  2019  and  2020,  the 
share of spending on prevention in Slovakia’s total 
health  expenditure  increased  from  0.8%  to  just 
above  1%.  Despite  this  minor  increase,  Slovakia 
remains the EU country that allocates the smallest 
share  of  its  total  health  budget  to  prevention. 
Across  the  EU,  spending  on  prevention  increased 
by 26% on average, driven by increased spending 
on  disease  detection,  surveillance,  control  and 
response programmes as part of the public health 
response  to  COVID-19.  Low  spending  levels  in 
Slovakia 
the 
preparedness  of  the  health  system  for  possible 
future  public  health  crises.  In  per-capita  terms, 
Slovakia  spent  EUR 15.25  on  prevention  in  2020, 
which  is  only  about  half  of  what  other  EU 
countries  with  comparable 
levels  of  health 
spending  per  capita  spent  on  prevention.  Public 
spending on health is projected to increase by 2.5 
percentage  points  of  GDP  by  2070,  raising 
significant  fiscal  sustainability  concerns 
(see 
Annex 21 and Graph A16.2).  

questions 

hence 

raise 

on 

Graph A16.2: Projected increase in public 
expenditure on healthcare over 2019-2070 

Source: Eurostat 

Except for medical goods, health spending in 
Slovakia remains significantly lower than the 
EU  average.  Against  the  backdrop  of  a  1% 
decline  in  nominal  GDP  between  2019  and  2020, 
Slovakia’s  health  expenditure  climbed  by  nearly 
2%, making up 7.23% of GDP. Nonetheless, this is 
the  sixth-lowest  share  in  the  EU  (EU  average: 
10.9%). 
terms,  Slovakia  spent 
EUR 1 480  (in  purchasing  power  standards)  on 
health  in  2020,  which  is  less  than  half  the  EU 
average  and  a  slight  decrease  in  real  terms 
(-0.4%) from 2019. The only area where Slovakia’s 
level  of  health  spending  is  comparable  to  the  EU 

In  per-capita 

(137) Based on data provided directly by Member States to ECDC 
under the European Surveillance System (data current as of 
13 April 2023). 

AWG reference scenario 
Source: European Commission / EPC (2021) 

Slovakia  has  a  shortage  of  nurses.  Slovakia 
has  a  slightly  lower  density  of  doctors  and  a 
substantially  lower  density  of  nurses  than  the  EU 
average.  Relatively  low  salaries  compared  to 
neighbouring  countries  –  especially  for  nurses, 
combined with poor working conditions and limited 
low 
career  prospects,  explain  their  relatively 
numbers. While the number of doctors has slowly 
increased    over  the  last  decades  the  density  of 
nurses  has  been  on  a  long-term  downward  trend, 

64 

77.377.377.477.877.074.680.980.981.081.380.480.1201620172018201920202021SlovakiaEU6.65.70.92.50246810EUSlovakia% of GDP20192070increase 
 
          
                                                 
        
 
Table A16.1: Key health indicators 

Note: The EU average is weighted for all indicators, except for (*) and (**), for which the EU simple average is used. The simple 
average for (*) uses data for 2020 or most recent year if former not available. Doctors' density data refer to practising doctors in 
all countries except EL, PT (licensed to practice) and SK (professionally active). Nurses' density data refer to practising nurses in all 
countries except FR, PT, SK (professionally active) and EL (nurses working in hospitals only).  
Source: Eurostat ; except: ** ECDC 

pledged  to  implement  a  number  of  important 
the  
reforms  and 
functioning of primary care and support the set-up 
of  a 
in 
underserved areas.  

large  number  of  outpatient  clinics 

investments 

improve 

to 

Slovakia  allocated  20%  of  the  resources 
under its RRP to health investments. Slovakia 
is  one  of  the  countries  that  allocated  the  largest 
relative  share  of  funds  under  their  RRP  to 
investments in health. An ambitious set of reforms 
and investments worth more than EUR 1.25 billion 
will  be  implemented  to  strengthen  the  physical 
and digital infrastructure of the Slovak healthcare 
system  and  improve  its  quality,  accessibility  and 
efficiency.  

levelling  off  in  recent  years.  However,  a  similar 
reversal  was  not  observed  in  the  number  of 
nursing  graduates  Eurostat 
reports,  which 
continued  to  decline  in  2020  to  nearly  half  the 
level  it  was  in  2014.  To  improve  the  retention  of 
health  graduates  and  personnel,  Slovakia  has 
taken  measures  to  reduce  the  salary  gap  with 
neighbouring countries for clinical staff working in 
hospitals,  and  has  pledged  to  redesign  certain 
aspects  of  medical  training  programmes  to  make 
these more appealing.    

severe 

(GPs)  and 
and 

The  age  profile  of  primary  care  physicians 
raises  concerns  about  future  shortages. 
Among  Slovak  physicians,  shortages  of  general 
paediatricians  are 
practitioners 
disproportionately 
especially 
concentrated  in  rural  areas (138).  Their  insufficient 
number  impinges  on  the  efficiency  of  the  overall 
health  system,  as  overburdened  primary  care 
to  act  as  effective 
physicians  are  unable 
gatekeepers  to  specialist  care  and  minimise 
avoidable  referrals.  The  age  composition  of  GPs 
and  paediatricians  aggravates  concerns  about 
their supply in the near future: in July 2022, 41% 
of GPs and 48% of paediatricians were aged 63 or 
above,  with  a  large  proportion  of  them  likely  to 
retire  in  the  coming  few  years (139).  Under  its 
(RRP),  Slovakia 
recovery  and  resilience  plan 

(138) OECD/European Observatory on Health Systems and Policies 
(2017), Slovak Republic: Country Health Profile 2017, State 
of Health in the EU, OECD Publishing, Paris/European 
Observatory on Health Systems and Policies, Brussels. 
https://www.euro.who.int/__data/assets/pdf_file/0009/35599
5/Health-Profile-Slovak-Rep-Eng.pdf 

(139) Ministry of Health of the Slovak Republic (2022). Retrieved 

on 12 December 2022, from: 
https://www.health.gov.sk/Clanok?v-ktorych-okresoch-budu-
moct-vseobecni-lekari-a-pediatri-poziadat-o-nenavratnu-
financnu-podporu-na-zriadenie-ambulancie. 

65 

20172018201920202021EU average (latest year) Treatable mortality per 100 000 population (mortality avoidable through optimal quality healthcare)173.7165.3163.5168.8NA91.7 (2020)Cancer mortality per 100 000 population311.4310.6293.3301.8NA242.2 (2020)Current expenditure on health, % GDP 6.86.77.07.2NA10.9 (2020)Public share of health expenditure, % of current health expenditure79.980.179.880.3NA81.2 (2020)Spending on prevention, % of current health expenditure 1.00.80.81.0NA3.4 (2020)Acute care beds per 100 000 population491481485481NA387.4 (2019)Doctors per 1 000 population *3.43.53.63.7NA3.9 (2020)Nurses per 1 000 population *5.75.75.75.8NA8.3 (2020)Consumption of antibacterials for systemic use in the community, daily defined dose per 1 000 inhabitants per day (total consumption for CY and CZ) **18.520.218.013.214.514.5 (2021) 
                                                 
 
   
 
ANNEX 17: ECONOMIC AND SOCIAL PERFORMANCE AT REGIONAL LEVEL 

This  Annex  showcases  the  economic  and 
social regional dynamics in Slovakia, providing 
an  update  on  economic,  social  and  territorial 
cohesion 
in  and  among  the  Slovak  regions 
compared  with  the  EU  as  a  whole  and  the  main 
regional economic recovery challenges. 

Regional  disparities  have  diminished,  but 
large gaps persist between the capital region 
and  the  rest  of  the  country.  The  gap  between 
Bratislava  and  the  other  three  regions  increased 
during  the  period  of  rapid  growth  in  2001-2010. 
Convergence  with  the  EU  average  stalled  at  first 
and  was  then  reversed  in  2011-2020.  Bratislava 
recorded  a  much  lower  average  growth  rate  than 
the  other  regions  in  the  latter  decade  (see  Graph 
A17.1) and this led to a slight reduction in the gap 
between the capital and the rest of the country. In 
the capital region of Bratislava, GDP per capita in 
purchasing  power  standards  grew  steadily  from 
116%  of  the  EU  average  in  2000  to  195%  in 
2013 but then fell back again in relative terms to 
149%  in  2021.  GDP  per  capita  in  other  regions 
grew  until  2015  and 
slightly  decreased 
afterwards,  reaching  63%  of  the  EU  average  in 
Western  Slovakia 
in  Central 
Slovakia, and 51% in Eastern Slovakia.  

in  2021,  57% 

Graph A17.1: GDP per capita (2010) and GDP 
growth (2011-2020) - Slovakia 

(1) Bubble size corresponds to population size, 2020 
Source: EUROSTAT, DG REGIO elaboration 

The  capital  region  is  more  productive  and 
innovative  than  the  other  regions.  Labour 
productivity  in  Slovakia,  measured  as  gross  value 
added  per  worker  in  purchasing  power  standards, 
was  73%  of  the  EU  average  in  2020.  Bratislava 
(108%) scored much higher than the three regions 
of  Western,  Central  and  Eastern  Slovakia  (68%, 
60%  and  65%  respectively).  Regional  disparities 
remained  rather  stable  in  2011-2020  (Graph 
A17.2).  Real  annual  productivity  growth  rates 
varied from 0.18% in the central region to 1.42% 
in  Eastern  Slovakia  in  2011-2020.  At  the  NUTS3 
level,  the  regions  of  Trnava  in  Western  Slovakia 

66 

and  Košice  in  Eastern  Slovakia,  stand  out  as  the 
most  productive  ones.  R&D  expenditure  in  the 
capital  region,  at  1.4%  of  GDP,  was  twice  that  in 
the other regions but still much lower than the EU 
average  of  2.3%.  The  Bratislava  region  is  only  a 
moderate innovator, while the other three regions 
are  classified  as  emerging  innovators  (the  lowest 
category)  on  the  regional  innovation  scoreboard 
2021 (see Annex 11). 

Graph A17.2: Labour productivity (real GVA per 
worker) developments, 2000-2020 

Source: EUROSTAT, DG REGIO elaboration 

All  Slovak  regions  except  Bratislava  rank 
below  the  EU  average  on  competitiveness. 
The regional competitiveness index for the capital 
region  was  113.6  in  2022  (the  EU  average  is  set 
at  100).  Further  to  the  east,  the  overall  index 
declined  to  84.8  in  Western  Slovakia,  80.4  in 
Central Slovakia and 72.4 in Eastern Slovakia. The 
Bratislava region performed much better than the 
others on every component of the index. The only 
exception was the quality of institutions, for which 
the  rather  negligible  differences  reflected  a  high 
degree of administrative centralisation. 

Slovakia  reduced  greenhouse  gas  emissions 
by  38%  since  1990  until  2021.  In  2021, 
emissions  per  capita  varied 
from  6.1 tCO2 
equivalent  per  person  in  Central  Slovakia  to 
10.7 tCO2  equivalent  per  person  in  the  Bratislava 
capital region. The average carbon footprint in the 
EU was 8 tCO2 equivalent per capita. 

Better job opportunities attract workforce to 
the  Bratislava  region.  The  employment  rate  in 
Bratislava  (83.4%)  was  much  higher  than  the  EU 
average  (73.1%)  in  2021,  but  declined  as  one 
went  further  east  (77.3%,  73.9%  and  68.5%  in 

0.51.01.52.02.53.0406080100120140160180200Annual real GDP per head growth2011-2020 (average % change on the preceding year)GDP (PPS) per head in 2010 (EU = 100)Capital regionOther NUTS2 regionsNational averageEU275152535455565000102030405060708091011121314151617181920thousands of EUR per  personCapital regionOther NUTS2 regionsEU27National average 
 
  
  
 
 
Table A17.1: Selected indicators at regional level –Slovakia 

Source: Eurostat, EDGAR database 

Bratislava is even bigger. Eastern Slovakia has the 
highest  share  of  early  school  leavers  (almost 
double  the  national  average),  which  may  reflect 
the  high  concentration  of  Roma  population  in  the 
region and the challenges of their integration into 
mainstream  education.  By  contrast,  the  share  of 
young  people  with  tertiary  education  is  higher  in 
Eastern  Slovakia  than  in  Central  and  Western 
Slovakia,  which may  reflect  the  presence  of large 
foreign  enterprises  and 
technology  clusters, 
particularly around the regional capital city Košice. 

caused 

substantial 

COVID-19 
excess 
mortality  in  2020  and  2021.  Compared  with 
2015-2019,  mortality 
increased  by  21-31% 
(Map A17.2).  In  Eastern  Slovakia,  in  particular, 
excess  mortality  was  high  compared  to  other  EU 
regions.  Slovakia's  unemployment  rate  increased 
from  5.8%  in  2019  to  6.7%  in  2020  due  to  the 
pandemic.  It  increased  slightly  further  to  6.8%  in 
2021,  but  this  masked  some  divergence  between 
the  regions:  while  unemployment  in  the  capital 
almost  returned  to  the  pre-pandemic  level,  it 
stagnated  in  Western  Slovakia  and  continued  to 
rise in Central and Eastern Slovakia. 

Map A17.2:  Excess mortality in Slovakia during the 
COVID-19 pandemic 

Central 

Eastern 

Slovakia 
and 
Western, 
respectively). 
Bratislava's 
Conversely, 
unemployment  rate  of  2.6%  was  lower  than  the 
EU  average  of  7.0%  and  the  rates  for  Western, 
Central  and  Eastern  Slovakia  (4.7%,  7.5%  and 
10.9%  respectively).  54%  of  employment 
in 
Bratislava  was  in  knowledge-intensive  services, 
but the corresponding figure for the other regions 
varied  between  30%  and  38%.  A  similar  pattern 
emerges  for  employment 
in  high-technology 
sectors (12.5% in the capital region and less than 
5%  in  the  other  regions  in  2021).  The  capital 
region  experienced  high  population  growth  (Map 
A17.1),  mainly  due  to  net  migration,  in  2011-
2020. The population increases in Easter Slovakia 
reflect higher fertility rates, which have more than 
compensated  for  the  mildly  negative  migration 
balance of the region. 

Map A17.1:  Population changes in Slovakia 
between 2011 and 2020 

The  east  of  the  country  is  relatively  more 
affected by poverty and social exclusion. The 
share  of  people  at  risk  of  poverty  or  social 
exclusion (AROPE) is lower that the EU average in 
all regions, but in Central and Eastern Slovakia it is 
double that in Western Slovakia and the gap  with 

67 

NUTS region nameGDP per head (purchasing power standard/PPS)Productivity (gross value added (PPS) per person employed)R&D expenditureCO2 emissions from fossil fuels per headUnemployment ratePeople at-risk-of-poverty or social exclusionPopulation aged 30-34 with high educational attainmentEarly school leaversEU27 = 100,2020EU27 = 100, 2020% of GDP,2019tCO2 equivalent,2021% of active population,2021% of population, 2020% of population aged 30-34,2021% of population aged 18-24,2021European Union100.0100.02.38.07.021.641.69.7Slovakia70.173.30.88.76.813.840.27.8Bratislava region161.6108.21.410.72.65.961.5Western Slovakia64.767.80.68.14.79.532.9Central Slovakia55.760.50.76.17.418.033.57.5Eastern Slovakia50.065.20.510.710.918.443.814.4 
 
 
 
 
 
 
 
 
 
  
 
68 

 
 
MACROECONOMIC STABILITY 
ANNEX 18: KEY FINANCIAL SECTOR DEVELOPMENTS 

is 

sector 

banking 

Slovakia’s 
highly 
concentrated  and  predominantly  foreign 
owned. 
Total  banking-sector  assets  were 
equivalent  to  105.8%  of  GDP  in  Q3-2022.  The 
is  highly  concentrated  and 
banking  sector 
predominately 
(foreign-owned 
foreign  owned 
banks  account  for  around  87%  of  total  banking-
sector  assets).  The  five  largest  banks  in  the 
system hold 79.3% of total banking-sector assets. 
The  market  funding  ratio  has  declined  further  in 
recent years and stood at a relatively low 24.5% in 
2021  (EU  average:  50.8%)  as  bank  loans  are  the 
most  significant  form  of  financing.  Stock  market 
capitalisation remains very low at 2% of GDP (EU 
average: 85.5%).  

The  Slovakian  banking  sector 
remains 
resilient.  It  is  highly  profitable  and  well 
capitalised. Banking-sector profitability remained 
high in Q2-2022, with a return on equity  of 8.8% 
(EU  average:  6.1%).  This  was  largely  due  to  the 
increasing growth in net interest income due to the 
increase in interest rates. The cost-to-income ratio 
declined  to  51.5  %  in  Q3-2022  from  53.7%  in 
2021.  The  banking  capital-adequacy  ratio  was 
18.9% in Q3-2022 (EU average: 18.6%), signalling 
the robustness of the banking sector. Slovak banks 
remain well capitalised, with a common equity tier 
1 ratio of 16.5% in Q3-2022 (EU average: 15.3%). 
There  is  a  significant  amount  of  liquidity  in  the 
banking  system,  as  the  liquidity  coverage  ratio 
was at 152.3% in Q3-2022. To further strengthen 
the  resilience  of  credit  institutions,  the  country’s 
central bank, the National Bank of Slovakia (NBS), 
announced  in  June  2022  an  increase  in  the 
countercyclical capital buffer rate applicable to the 
risk  exposure  of  local  banks  from  1%  to  1.5%  as 
of 1 August 2023 (140).  

Slovakian  banks  are  continuing  to  reduce 
their  non-performing  loans  (NPLs).  The  NPL 
ratio  decreased  further  to  1.8%  in  Q3-2022,  the 
lowest  level  since  2016  (EU  average:  1.8%) 
despite  the  gradual  unwind  of  pandemic-support 
measures.  Similarly,  the  coverage  ratio  of  NPLs 
remained  high  at  70.2%  in  Q3-2022,  which 
reflects  banks’  ability  to  absorb  future  losses. 
Asset  quality  has  improved  for  both  loans  to 
corporates and loans to households. However, the 
financial 
economic 
conditions  (higher  energy  prices,  rising  inflation, 

slowdown  and 

current 

higher  interest  rates,  and  growing  uncertainty) 
could  pose  risks  –  primarily  for  the  debt-
repayment capacity of borrowers.  

Graph A18.1: Evolution of credit activity 

Source: ECB. 

Lending  activity  strengthened  in  2021  and 
increased  even  further  by  the  end  of  2022. 
Lending to non-financial corporations increased by 
10.2%  year-on-year,  while  lending  to  households 
increased  by  10.O%  year-on-year.  Inflation  and 
higher  interest  rates  are  expected  to  have  a 
greater impact  on  non-financial  corporations  than 
on  households  due  to  the  higher  increases  in 
wholesale  prices  faced  by  industry.  According  to 
the NBS, although only a relatively small share of 
firms  are  energy  intensive,  it  often  accounts  for 
a greater share of banks’ corporate loans.  

Household  debt  continued  to  rise  but  is 
expected  to  fall  in  the  coming  months. 
According  to  Eurostat,  household  debt  rose  from 
42.5%  of  GDP  in  2019  to  47%  of  GDP  in 
2021 (141).  Rising  interest  rates  and  economic 
uncertainty  are  expected  to  dampen  demand  for 
mortgages,  thus  mitigating  the  risks  associated 
with  rising  indebtedness. Rising interest  rates  and 
economic  uncertainty  are  also  likely  to  end  the 
recent  pattern  of  sharp  growth  in  property  prices. 
The  NBS  partially  adjusted  the  total  debt-to-
income limit for mortgage loans held by people in 
retirement.  The  new  rules  came  into  force  in 

(141)

https://ec.europa.eu/eurostat/databrowser/view/tipspd2

(140) https://nbs.sk/en/financial-stability/fs-instruments/ccyb/. 

2/default/table?lang=en. 

69 

-4-20246810121416Total privateNFCHH% 
 
 
                                                 
  
                                                 
 
 
Table A18.1: Financial soundness indicators 

(1) Last data: Q3 2022. 
(2) Data is annualized. 
Source: ECB, Eurostat, S&P Global Capital IQ Pro. 

January  2023  and  aim  to  prevent  retired  people 
from having excessively large mortgages.  

house-price  growth;  and  (iii)  rising  household 
indebtedness. 

Following price growth throughout 2021, the 
housing market saw continued price gains in 
the  first  quarter  of  2022.  House-price  growth 
has accelerated  since the beginning of 2019, and 
this  rapid  pace  continued  until  the  summer  of 
2022,  when  year-on-year  growth  in  house  prices 
reached  almost  30%.  According  to  the  NBS,  this 
growth  was  mainly  caused  by  strong  demand  for 
housing,  due  to  accumulated  savings  during  the 
pandemic,  low  interest  rates  on  mortgage  loans, 
and  the  expectation  of  further  increases  in  real-
estate  prices (142).  The  housing  market  began  to 
change  course  in  Q3-2022  due  to  rising  housing 
prices, higher interest rates, and the reduced credit 
capacity  of  households.  The  total  number  of 
purchase  transactions  for  real  estate  began  to 
decline in recent months. 

In  December  2021,  the  European  Systemic 
Risk  Board (143)  issued  a  warning  to  Slovakia 
about  medium-term  vulnerabilities  in  the 
residential 
real-estate  market  being  a 
potential  risk  to  the  country’s  financial 
the  main 
stability.  The  ESRB  considered 
vulnerabilities  to  be:  (i)  the  increasing  risk  of 
house-price  overvaluation;  (ii)  the  high  rate  of 

(142) https://nbs.sk/en/publications/financial-stability-

report/financial-stability-report-november-2022/. 

(143)

https://www.esrb.europa.eu/news/pr/date/2022/html/es

rb.pr220211~9393d5e991.en.html. 

70 

Graph A18.2: Housing prices 

(1) 2015=100. 
Source: Eurostat. 

The insurance sector is rather small. The total 
assets  of  all  insurers  are  equivalent  to  4.9%  of 
GDP in Q2-2022. The level of sector capitalisation 
in terms of the SCR ratio was 207.2% in Q2-2022. 
According  to  NBS,  in  Q1-2022  the  profitability  of 
the insurance sector increased by 14.0% year-on-
year  due  to  extraordinary  effects  (e.g.  higher 
of 
dividends 
buildings).   Following  EIOPA’s  investigation  of  a 
breach  of  Union  law  by  the  Slovak  insurance 
supervisory authority (NBS) and the hereto related 
recommendations, 
the  European  Commission 
adopted  in  September  2022,  a  formal  opinion 
requiring  the  NBS  to  fully  comply  with  the  EU 

subsidiaries, 

sales 

from 

020406080100120140160180200201720182019202020212022EUMedianTotal assets of the banking sector (% of GDP)91.791.291.6100.1108.2105.8276.8207.9Share (total assets) of the five largest banks (%)74.575.675.776.879.3--68.7Share (total assets) of domestic credit institutions (%)115.615.114.914.213.513.0-60.2NFC credit growth (year-on-year % change)7.88.24.45.17.810.2-9.1HH credit growth (year-on-year % change)12.410.78.56.79.210.0-5.4Financial soundness indicators:1        - non-performing loans (% of total loans)3.73.22.92.52.01.81.81.8- capital adequacy ratio (%)18.617.818.019.319.418.918.619.8- return on equity (%)29.39.38.35.38.48.86.16.6Cost-to-income ratio (%)157.856.458.059.753.751.560.651.8Loan-to-deposit ratio (%)196.298.599.195.489.695.888.678.0Central bank liquidity as % of liabilities1.71.70.75.011.16.9-2.9Private sector debt (% of GDP)89.890.591.094.595.0--120.7Long-term interest rate spread versus Bund (basis points)59.948.950.047.329.393.3-93.3Market funding ratio (%)29.828.828.025.024.5-50.840.0Green bonds issued to all bonds (%)---0.00.71.43.92.31-34-1011-1718-2425-27Colours indicate performance ranking among 27 EU Member States. 
                                                 
 
  
 
   
 
prudential  regime  for  insurance  and  reinsurance 
undertakings in the EU (Solvency II).  

71 

 
ANNEX 19: TAXATION  

This  Annex  provides  an 
indicator-based 
overview of Slovakia’s tax system.  It includes 
information on the tax structure (the types of tax 
that  Slovakia  derives  most  of  its  revenue  from), 
the  tax  burden  on  workers,  and  the  progressivity 
and redistributive effect of the tax system. It also 
provides 
tax  collection  and 
compliance. 

information  on 

Slovakia’s tax revenues are relatively low in 
relation  to  its  GDP.  The  tax  mix  can  be  made 
more  efficient  and  more  supportive  of  inclusive 
and  sustainable  growth.  Table  A19.1  shows  that 
Slovakia’s  tax  revenues  as  a  percentage  of  GDP 
(34.7%  in  2022)  were  considerably  below  the  EU 
aggregate  (40.6%  in  2021),  even  though  they 
were about 8 percentage points (pps)  higher than 
in  2010.  The  ratio  of  revenues  from  labour  taxes 
to total  tax revenues (53.8% in 2021)  was above 
the  EU  aggregate  (51.4%  in  2021),  as  was  the 
share  of  consumption  taxes  in  total  tax  revenues 
(32.7%  in  2021;  EU:  27.5%).  Environmental  taxes 
were above the EU aggregate in 2021, as a share 
of both GDP and total taxation (see Graph A19.1), 
but this was due to energy tax revenues based on 
a  large  tax  base,  whereas  transport  and  resource 
and  pollution  taxes  generated  below-average 
revenues.  

More  use  could  be  made  of  property  and 
environmental  taxation.  To  promote  greener 

Table A19.1: Taxation indicators 

for 

tax 

transport,  Slovakia  has  recently  reduced  the 
low-emission  cars.  The 
registration 
registration  tax  ranges  from  EUR  33  to  over 
EUR 3 000.  Revenues  from  property  taxes  remain 
low  as  a  percentage  of  both  GDP  and  total  tax 
revenue  (see  Graph  A19.1).  This  is  also  the  case 
for revenues from recurrent property taxes, which 
are  among  the  taxes  least  detrimental  to  growth 
and which remain well below the EU aggregate. As 
in  the  case  of  environmental  taxation,  property 
taxation also indicates that more use can be made 
of tax bases. 

Strengthening the taxation system could help 
in light of high long-term fiscal sustainability 
risks. Slovakia faces high fiscal sustainability risks 
due  to  a  combination  of  an  ageing  population,  a 
fiscally unsustainable pension system and a fiscal 
policy  framework 
that  does  not  sufficiently 
incentivise fiscal sustainability. In relation to fiscal 
sustainability  challenges,  there  is  room  to  make 
greater  use  of  tax  types  that  are  currently 
underused,  such  as  environmental  and  property 
taxes.  However,  given  the  background  of  high 
inflation,  rising  food  and  energy  costs,  the 
government  has  introduced  permanent  increases 
for  family  benefits  (higher  child  allowances  and 
tax  breaks).  At 
level,  one-off 
payments for pensioners and energy subsidies for 
firms  have  been  introduced.  At  the  local  level, 
property  taxation  has  been  slightly  increased.  At 

the  national 

(1) Forward-looking effective tax rate (OECD). 
(2) A higher value indicates a stronger redistributive impact of taxation. 
(*) EU-27 simple average 
For more data on tax revenues as well as the methodology applied, see European Commission, Directorate-General for Taxation 
and Customs Union, Taxation trends in the European Union: data for the EU Member States, Iceland, Norway and United Kingdom: 
2021 edition, Publications Office of the European Union, 2021, https://data.europa.eu/doi/10.2778/843047 and the Data on 
Taxation webpage, https://ec.europa.eu/taxation_customs/taxation-1/economic-analysis-taxation/data-taxation_en. 
For more details on the VAT gap, see European Commission, Directorate-General for Taxation and Customs Union, VAT gap in the 
EU: report 2022, Publications Office of the European Union, 2022, https://data.europa.eu/doi/10.2778/109823.  
Source: European Commission, OECD. 

72 

2010201920202021202220102019202020212022Total taxes (including compulsory actual social contributions) (% of GDP)27.834.434.635.234.737.939.940.040.6Labour taxes (as % of GDP)14.418.518.919.320.020.721.320.9Consumption taxes (as % of GDP)9.811.511.411.710.811.110.711.2Capital taxes (as % of GDP)3.64.34.34.97.18.18.08.5Total property taxes (as % of GDP)0.40.40.50.51.92.22.22.2Recurrent taxes on immovable property (as % of GDP)0.40.40.50.51.11.21.21.1Environmental taxes as % of GDP2.12.52.52.42.42.42.22.2Tax wedge at 50% of average wage (Single person) (*)31.837.336.436.937.333.932.331.932.131.7Tax wedge at 100% of average wage (Single person) (*)38.141.941.341.541.641.040.139.939.739.7Corporate income tax - effective average tax rates (1) (*)19.319.319.319.519.419.1Difference in Gini coefficient before and after taxes and cash social transfers (pensions excluded from social transfers) (2) (*)5.65.06.38.67.78.17.8Outstanding tax arrears: total year-end tax debt (including debt considered not collectable) / total revenue (in %) (*)22.122.831.640.7VAT Gap (% of VAT total tax liability, VTTL)15.013.911.09.1SlovakiaEU-27Tax structureProgressivity & fairnessTax administration & compliance 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
Graph A19.1: Tax revenues from different tax types, % of total revenue 

Source: European Commission 

increase 

Digitalisation  of  tax  administration  could  be 
further  developed  in  order  to  reduce  tax 
arrears and compliance costs. The VAT gap (the 
gap  between  revenues  actually  collected  and  the 
theoretical  tax  liability)  in  Slovakia  continued  its 
downward  trend,  falling  from  15%  in  2019  to 
13.9% in 2020, but is still above the EU-wide gap 
of  9.1%.  This 
in  compliance  was 
accompanied  by  a  sudden  drop  in  the  bankruptcy 
rate,  which  fell  by  nearly  33%  in  2020.  The 
measures  underlying  this  drop  include  postponed 
deadlines  for  filing  VAT  and  income  tax  returns, 
and  wage  subsidies  to  employers  aimed  at 
maintaining  pre-pandemic  employment.  Although 
not  mandatory,  real-time  electronic  reporting  of 
data to the tax administration could also improve 
tax  compliance.  Slovakia  is  among  the  Member 
States  that  have  provided  estimates  of  their 
corporate income tax (CIT) gap or have taken steps 
to  do  so.  Slovakia  has  also  reduced the threshold 
for  the  reduced  CIT  rate  for  micro-taxpayers 
(i.e. taxpayers  with  an  annual  taxable  revenue 
below EUR 49 790). In relation to tax efficiency in 
Slovakia in 2019, the time spent filing tax returns 
has  decreased  for  CIT  but  has  increased  for 
personal income taxation (PIT). 

amendments 

the  end  of  2022,  the  parliament  also  approved 
several 
taxation 
(e.g. taxation  of  excess  profits,  VAT  reductions  for 
certain  venues,  abolition  of  concession  fees,  and 
higher insurance levies). 

linked 

to 

Labour  taxation  is  less  progressive  than  the 
EU  average  due  to  a  relatively  high  tax 
wedge  for  lower  income  levels.  Graph  A19.2 
shows  that  the  labour  tax  wedge  for  Slovakia  in 
2022 was above the EU average for single people 
at 50% of the income level  of the average wage, 
and  close  to  the  EU  average  at  higher  levels  of 
income. Second earners at a wage level of 67% of 
the  average  wage,  whose  spouses  earn  the 
average wage, were subject to a tax wedge above 
the EU average.  

Graph A19.2: Tax wedge for single and second 
earners, % of total labour costs, 2022 

Second earner tax wedge assumes first earner at 100% of 
the average wage and no children. 
Source: European Commission 

73 

37.339.541.643.645.42025303540455050100150Tax wedge, % of total labour costsEarnings as % of the average wageSingle earner - SKSingle earner - EU averageSecond earner -  SKSecond earner -  EU average51.4327.5421.0153.7732.6913.54Tax revenue shares in 2021, Slovakia (outer ring) and EU (inner ring)Taxes on labourTaxes on consumptionTaxes on capital6.094.320.581.000.070.191.322.640.002.7502468Slovakia -environmentaltaxationEU -environmentaltaxationSlovakia -property taxationEU - propertytaxationEnvironmental and property taxation as % of total tax revenue, Slovakia and the EUEnergy taxesTransport taxesResource/pollution taxesRecurrent property taxesOther property taxes 
      
 
 
 
 
      
 
ANNEX 20: TABLE WITH ECONOMIC AND FINANCIAL INDICATORS 

Table A20.1: Key economic and financial indicators 

(1) Domestic banking groups and stand-alone banks, EU and non-EU foreign-controlled subsidiaries and EU and non-EU foreign-
controlled branches. 
(2) Net international investment position (NIIP) excluding direct investment and portfolio equity shares.  
Source: Eurostat and ECB as of 2 May 2023, where available; European Commission for forecast figures (Spring forecast 2023). 

74 

2004-072008-122013-1920202021202220232024Real GDP (y-o-y)7.82.12.8-3.34.91.71.72.1Potential growth (y-o-y)5.83.72.21.41.71.92.52.1Private consumption (y-o-y)6.51.22.7-1.12.65.50.60.8Public consumption (y-o-y)2.11.92.6-0.64.2-4.32.91.3Gross fixed capital formation (y-o-y)9.9-1.53.8-10.93.55.99.03.7Exports of goods and services (y-o-y)17.74.14.4-6.310.92.33.26.1Imports of goods and services (y-o-y) 16.51.64.9-8.112.14.03.95.2Contribution to GDP growth:Domestic demand (y-o-y)6.40.62.8-3.13.03.42.81.5Inventories (y-o-y)0.6-0.60.4-1.92.6-0.1-0.10.0Net exports (y-o-y)0.72.0-0.31.6-0.8-1.6-0.90.6Contribution to potential GDP growth:Total Labour (hours) (y-o-y)0.40.7-0.1-0.7-0.30.20.40.0Capital accumulation (y-o-y)1.21.01.10.50.50.61.01.0Total factor productivity (y-o-y)4.22.11.21.61.51.11.01.1Output gap1.7-0.1-0.3-2.80.30.0-0.7-0.7Unemployment rate14.812.69.86.76.86.15.85.4GDP deflator (y-o-y)3.11.00.82.42.47.59.85.7Harmonised index of consumer prices (HICP, y-o-y)4.12.71.02.02.812.110.95.7HICP excluding energy and unprocessed food (y-o-y)3.02.51.32.43.410.410.93.1Nominal compensation per employee (y-o-y)8.43.84.03.96.96.09.77.4Labour productivity (real, hours worked, y-o-y)4.91.82.26.04.7-2.50.81.5Unit labour costs (ULC, whole economy, y-o-y)1.92.02.75.41.36.28.45.3Real unit labour costs (y-o-y)-1.11.01.93.0-1.0-1.3-1.3-0.3Real effective exchange rate (ULC, y-o-y)5.82.21.31.21.02.21.61.3Real effective exchange rate (HICP, y-o-y)7.02.60.22.10.02.1..Net savings rate of households (net saving as percentage of net disposable income)0.61.72.65.54.2-2.6..Private credit flow, consolidated (% of GDP)7.76.05.72.84.48.1..Private sector debt, consolidated (% of GDP)48.566.584.794.792.291.8..of which household debt, consolidated (% of GDP)13.124.637.346.547.047.1..of which non-financial corporate debt, consolidated (% of GDP)35.442.047.548.245.244.6..Gross non-performing debt (% of total debt instruments and total loans and advances) (1)1.53.43.42.11.7...Corporations, net lending (+) or net borrowing (-) (% of GDP)-2.63.61.43.20.8-4.21.80.4Corporations, gross operating surplus (% of GDP)30.930.829.425.325.724.126.926.4Households, net lending (+) or net borrowing (-) (% of GDP)-0.10.71.12.92.2-1.7-2.4-0.8Deflated house price index (y-o-y).-3.64.17.23.01.3..Residential investment (% of GDP)3.02.93.03.84.04.3..Current account balance (% of GDP), balance of payments-7.2-3.6-1.30.6-2.5-8.2-7.0-5.6Trade balance (% of GDP), balance of payments-2.8-0.22.02.10.0-5.7..Terms of trade of goods and services (y-o-y)-0.7-1.2-0.3-0.4-0.9-3.91.20.6Capital account balance (% of GDP)0.21.31.30.81.31.2..Net international investment position (% of GDP)-47.2-61.4-65.5-64.7-59.9-61.0..NENDI - NIIP excluding non-defaultable instruments (% of GDP) (2)0.3-9.9-14.0-14.8-14.4-18.2..IIP liabilities excluding non-defaultable instruments (% of GDP) (2)43.457.179.0102.2120.291.1..Export performance vs. advanced countries (% change over 5 years)83.916.43.78.01.5...Export market share, goods and services (y-o-y)7.7-2.20.73.3-4.2-1.50.52.2Net FDI flows (% of GDP)-5.7-2.0-0.92.60.3-2.1..General government balance (% of GDP)-2.7-5.4-2.1-5.4-5.4-2.0-6.1-4.8Structural budget balance (% of GDP)..-2.0-4.3-5.5-2.0-5.8-4.5General government gross debt (% of GDP)34.640.151.658.961.057.858.358.7forecast 
 
 
 
   
 
 
 
ANNEX 21: DEBT SUSTAINABILITY ANALYSIS 

This  Annex  assesses  fiscal  sustainability 
risks  for  Slovakia  over  the  short,  medium 
and  long  term.  It  follows  the  same  multi-
dimensional 
European 
Commission’s  2022  Debt  Sustainability  Monitor, 
updated  based  on  the  Commission’s  2023  spring 
forecast. 

approach 

the 

as 

1  -  Short-term  risks  to  fiscal  sustainability 
are 
low  overall.  The  Commission’s  early-
detection  indicator  (S0)  does  not  signal  major 
short-term  fiscal  risks  (Table  A21.2). (144)  Gross 
financing needs are expected to remain at around 
7% of GDP in the short term (i.e. over 2023-2024), 
declining  compared  with  the  recent  peak  in  2020 
(Table  A21.1).  Financial  markets’  perceptions  of 
remain  overall  positive,  as 
sovereign 
confirmed by the ratings of the main agencies. 

risk 

2 - Medium-term risks to fiscal sustainability 
are high overall.  

The  DSA  for  Slovakia  shows  that,  under  the 
baseline,  the  government  debt  ratio 
is 
projected  to  increase  over  the  medium  term 
reaching close to 85% of GDP in 2033. (Table 
A21.1  and  Graph  1) (145), (146)  The  assumed 
structural  primary  balance  (a  deficit  of  3.3%  of 
It 
GDP)  contributes 
appears 
fiscal 
compared  with 
performance, indicating that the country has room 

these  developments. 

past 

low 

to 

(144) The S0 is a composite indicator of short-term risk of fiscal 
stress. It is based on a wide range of macro-financial and 
fiscal variables that have proven to perform well in the past 
in detecting situations of upcoming fiscal stress.  

(145) The assumptions underlying the Commission’s ‘no-fiscal 
policy change’ baseline notably comprise: (i) a structural 
primary deficit, before ageing costs, of 3.3% of GDP as of 
2024; (ii) inflation converging linearly towards the 10-year 
forward inflation-linked swap rate 10 years ahead (which 
refers to the 10-year inflation expectations 10 years from 
now); (iii) the nominal short- and long-term interest rates on 
new and rolled over debt converging linearly from current 
values to market-based forward nominal rates by T+10 (as 
for all Member States); (iv) real GDP growth rates from the 
Commission 2023 spring forecast until 2024, followed by 
EPC/OGWG ‘T+10 methodology projections between T+3 and 
T+10, i.e. for 2025-2033 (on average 1.6%); (v) ageing costs 
in line with the 2021 Ageing Report (European Commission, 
Institutional Paper 148, May 2021). For information on the 
methodology, see the 2022 Debt Sustainability Monitor 
(European Commission, Institutional Paper 199, April 2023). 

for  corrective  action.  At  the  same  time,  the 
baseline  projections  up  to  2033  benefit  from  a 
favourable (although diminishing) snowball effect, 
notably  thanks  to  the  impact  of  Next  Generation 
EU,  with  real  GDP  growth  at  around  1.6%  over 
2025-2033.  Government  gross  financing  needs 
are expected to increase over the projection period, 
reaching  11.5%  of  GDP  in  2033,  above  the  level 
forecast for 2024 (Table A21.1). 

The  baseline  projections  are  stress  tested 
against  four  alternative  scenarios  to  assess 
the  impact  of  changes  in  key  assumptions 
(Graph  1).  For  Slovakia,  reverting  to  historical 
fiscal  trajectories  under  the  ‘historical  structural 
primary  balance  (SPB)’  scenario  would  lead  to  a 
significantly  lower  government  debt  ratio.  If  the 
SPB  gradually  converged  to  a  deficit  of  2.2%  of 
GDP (its historical 15-year average), the projected 
debt-to-GDP  ratio  would  be  around  8  pps.  lower 
compared  to  the  baseline  in  2033.  A  permanent 
worsening  of  the  macro-financial  conditions,  as 
reflected  under  the  ‘adverse  interest-growth  rate 
differential’  scenario  (i.e.,  1  pp.  higher  than  the 
baseline)  would  result  in  a  persistently  higher 
government debt-to-GDP ratio, by around 5 pps. of 
GDP  by  2033,  as  compared  with  the  baseline.  A 
temporary  worsening  of  financial  conditions,  as 
reflected  in  the  ‘financial  stress‘  scenario’  (i.e. 
temporarily  increase  of  interest  rates  by  1  pp.), 
would lead to a broadly similar debt-to-GDP ratio 
by  2033  compared  with  the  baseline.  The  ‘lower 
structural primary balance (SPB)’ scenario (i.e., SPB 
level  permanently 
the 
cumulative forecast change), would also lead to a 
significantly  higher  government  debt-to-GDP  ratio 
by  2033  (by  around  +9  pps.  of  GDP)  compared 
with  the  baseline,  with  debt  increasing  beyond 
90% of GDP.  

reduced  by  half  of 

Additionally,  stochastic  debt  projections 
(Graph  2) (147)  These 
indicate  high  risk 
stochastic  simulations  point  to  a  68%  probability 
of  the  debt  ratio  in  2027  being  greater  than  in 
2022, entailing high risk given the initial moderate 
debt  level.  In  addition,  such  shocks  point  to 
significant uncertainty (i.e., the difference between 
the  10th  and  90th  debt  distribution  percentiles) 

(146) Table 1 shows the baseline debt projections and its 

(147) These projections show the impact on debt of 2000 different 

breakdown into the primary balance, the snowball effect (the 
combined impact of interest payments and nominal GDP 
growth on the debt dynamics) and the stock-flow 
adjustment.  

shocks affecting the government’s primary balance, 
economic growth, interest rates and exchange rates. The 
cone covers 80% of all simulated debt paths, therefore 
excluding tail events 

75 

 
 
                                                 
                                                 
 
 
liability 

negative net international investment position, the 
share of short-term government debt held by non-
residents,  and 
risks 
to  contingent 
stemming  from  the  private  sector,  including  via 
the  possible  materialisation  of  COVID-19  crisis 
related state guarantees. On the other-hand, risk-
mitigating factors include the lengthening of debt 
maturity  in  recent  years  and  relatively  stable 
financing  sources  (with  a  diversified  and  large 
investor  base).  In  addition,  the  structural  reforms 
under  the  NGEU/RRF,  if  fully  implemented,  could 
have  a  further  positive  impact  on  GDP  growth  in 
the  coming  years,  and  therefore  help  to  mitigate 
debt sustainability risks. 

surrounding 
projections. 

the  government  debt  baseline 

3  -  Long-term  risks  to  fiscal  sustainability 
are high overall. (148)  

in 

The  S2  sustainability  gap  indicator  (at  11.3 
pps.  of  GDP)  points  to  high  risk,  suggesting 
that  Slovakia  would  need  a  substantial 
improvement 
its  structural  primary 
balance to ensure debt stabilisation over the 
long  term.  This  result  is  mostly  underpinned  by 
the projected increase of ageing costs, particularly 
pension  spending  (4.0  pps.  of  GDP)  as  well  as 
health  care  and  long-term  care  expenditure  (joint 
contribution  of  3.2  pps.  of  GDP),  as  well  as  an 
unfavourable initial budgetary position (3.8 pps. of 
GDP) (Table A21.1). The reform measures included 
in 
to  contribute 
remain  essential 
improving  the  fiscal  sustainability  of  the  pension 
system. However, as a number of investments and 
reforms  in  the  RRP  contribute  to  supporting  the 
efficiency of the Slovak health and long-term care 
systems,  it  will  be  important  to  carefully  monitor 
their implementation. 

the  RRP 

Combined  with  debt  vulnerabilities,  as 
highlighted by the S1 indicator, overall long-
term  risks  are  assessed  as  high.  The  S1 
sustainability  gap 
that  a 
substantial consolidation effort of 8.5 pps. of GDP 
would be needed to reduce debt to 60% of GDP by 
2070. This result is mainly driven by ageing costs 
(5.3  pps.  of  GDP)  and  an  unfavourable  initial 
budgetary position (3.2 pps. of GDP) (Table A21.1).  

indicator  signals 

Finally,  several  additional  risk  factors  need 
to  be  considered  in  the  assessment.  On  the 
one hand, risk-increasing factors are related to the 
rates,  Slovakia’s 
recent 

increase 

interest 

in 

(148)The S2 fiscal sustainability gap indicator measures the 

permanent fiscal effort (SPB adjustment) in 2024 that would 
be required to stabilise public debt over the long term. It is 
complemented by the S1 fiscal sustainability gap indicator, 
which measures the permanent fiscal effort required in 2024 
to bring the debt-to-GDP ratio to 60% in the long term (by 
2070). For both the S1 and S2 indicators, the risk 
assessment depends on the amount of fiscal consolidation 
needed: ‘high risk’ if the required effort exceeds 6 pps. of 
GDP, ‘medium risk’ if it lies between 2 pps. and 6 pps. of 
GDP, and ‘low risk’ if the effort is negative or below 2 pps. of 
GDP. The overall long-term risk classification brings together 
the risk categories derived from S1 and S2. S1 may notch up 
the risk category derived from S2 when it signals a higher 
risk than S2. See the 2022 Debt Sustainability Monitor for 
further details. 

76 

 
                                                 
Table A21.1: Debt sustainability analysis - Slovakia 

Source: Commission services. 

Table A21.2: Heat map of fiscal sustainaibility risks - Slovakia 

Source: Commission services. 

77 

Table 1. Baseline debt projections20202021202220232024202520262027202820292030203120322033Gross debt ratio (% of GDP)58.961.057.858.358.759.761.363.265.768.671.975.780.184.7Changes in the ratio10.92.2-3.20.50.41.01.51.92.52.93.33.84.34.6of whichPrimary deficit4.24.31.05.03.63.73.84.04.24.44.64.95.15.3Snowball effect1.7-2.9-4.2-5.0-3.1-2.7-2.3-2.1-1.7-1.5-1.3-1.0-0.7-0.7Stock-flow adjustments5.00.8-0.10.4-0.10.00.00.00.00.00.00.00.00.0Gross financing needs (% of GDP)14.27.83.68.16.56.97.37.78.38.89.510.110.811.5S1S2Overall index  (pps. of GDP)8.511.3of which Initial budgetary position3.23.8Debt requirement0.0Ageing costs5.37.6of which    Pensions2.94.0     Health care1.21.6     Long-term care0.91.6Others0.30.4Table 2. Breakdown of the S1 and S2 sustainability gap indicators010203040506070809010020202021202220232024202520262027202820292030203120322033Graph 1. Deterministic debt projections Historical SPB scenarioLower SPB scenarioFinancial stress scenarioAdverse 'r-g' scenarioBaseline% of GDPp10p20p40p60p80p903040506070809020202021202220232024202520262027% of GDPGraph 2. Stochastic debt projections 2023-2027MedianBaselineBaselineHistorical SPBLower SPBAdverse 'r-g'Financial stressOverallMEDIUMHIGHHIGHMEDIUMMEDIUMHIGHDebt level (2033), % GDP84.776.993.789.684.9Debt peak year20332033203320332033Fiscal consolidation space63%49%79%63%63%Probability of debt ratio exceeding in 2027 its 2022 level68%Difference between 90th and 10th percentiles (pps. GDP)31.0(1)Debtlevelin2033.Green:below60%ofGDP.Yellow:between60%and90%.Red:above90%.(2)Thedebtpeakyearindicateswhetherdebtisprojectedtoincreaseoveralloverthenextdecade.Green:debtpeaksearly.Yellow:peaktowardsthemiddleoftheprojectionperiod.Red:latepeak.(3)Fiscalconsolidtationspacemeasurestheshareofpastfiscalpositionsinthecountrythatweremorestringentthantheoneassumedinthebaseline.Green:highvalue,i.e.theassumedfiscalpositionisplausiblebyhistoricalstandardsandleavesroomforcorrectivemeasuresifneeded.Yellow:intermediate.Red:low.(4)Probabilityofdebtratioexceedingin2027its2022level.Green:lowprobability.Yellow:intermediate.Red:high(alsoreflectingtheinitialdebtlevel).(5)thedifference between the 90th and 10th percentiles measures uncertainty, based on the debt distribution under 2000 different shocks. Green, yellow and red cells indicate increasing uncertainty.Short termMedium term - Debt sustainability analysis (DSA)Long termOverall                               (S0)Overall Deterministic scenariosStochastic projectionsS2S1Overall(S1 + S2)LOWHIGHHIGHHIGHHIGH 
 
 
 
 
   
 
 
   
 
ANNEX 22: MACROECONOMIC IMBALANCE PROCEDURE ASSESSMENT MATRIX  

The  Macroeconomic 
Imbalance  Procedure 
matrix presents the main elements of the in-
depth  review  undertaken  for  Slovakia (149).  
Slovakia was selected for an in-depth review in the 
in-depth 
2023  Alert  Mechanism  Report.  This 
review  on  the  prevention  and  correction  of 
macroeconomic  imbalances  presents  the  main 
findings  on  the  gravity  and  evolution  of  the 
challenges  identified,  as  well  as  policy  responses 
and potential policy needs. Findings cover all areas 
of vulnerability assessed in the in-depth review.  

of  2022  and is  forecast  to  turn  negative in  2023 
due  to  slower  demand  for  mortgages  driven  by 
higher  costs  of  borrowing  and  deteriorated 
purchasing  power  of  households.  The  current 
account  deficit  is  expected  to  narrow  but  remain 
substantial,  at  -7.0%  in  2023.  The  recovery  of 
export  destinations  and  easing  in  supply  chain 
bottlenecks  should  support  exports  which  are 
expected to grow in real terms at over 3% in 2023 
and  6%  in  2024  while  energy  prices  decrease 
should make imports cheaper. 

Slovakia's  policy  setup  in  respect  with  the 
identified  vulnerabilities  can  be  considered 
as broadly appropriate, but addressing some 
remaining policy needs can contribute to the 
reduction  of  macroeconomic  vulnerabilities.  
Reforms  and  investments  in  several  areas  within 
the  recovery  and  resilience  plan  (RRP)  have  the 
potential  to  further  increase  the  competitiveness 
of  the  Slovak  business  sector  and  exports  but 
elevated inflation represent a risk. In addition, the 
plan  envisages  policies  to  reduce  dependence  on 
energy imports, which also contribute to improving 
the current account balance. Some measures have 
been  recently  taken  to  mitigate  housing  market 
risks.  The  macroprudential  policy  have  been 
recently  tightened  and  could  be  viewed  as 
appropriate.  The  administrative  burden  while 
obtaining building permits will be addressed by the 
recently  approved  Construction  Act  and  Act  on 
Land  Planning.  The  announced  system  of  state 
supported  rental  housing  could 
improve  the 
insufficient  supply  of  housing.  Changes  in  the 
system  of  property  taxation  could  dampen  the 
strong  demand  for  housing  properties  and.  The 
strengthening  of  tax  compliance  could  contribute 
to  the  reduction  of  the  gap  between  housing 
demand and supply.   

Based  on  this  assessment,  the  Commission 
considered  in  its  communication  European 
Semester – 2023 Spring Package (COM(2023) 
600 final) that Slovakia does not experience 
imbalances. 

competitiveness, 

Slovakia  is  facing  vulnerabilities  related  to 
deteriorating  price 
its 
external  balance,  house  prices  and  private 
debt.    Inflation  in  Slovakia  has  grown  rapidly  in 
recent  years,  driven  by  the  rise  in  energy  prices. 
The pass-through to other components of inflation 
could remain more entrenched. The growth of unit 
labor  costs  is  in  line  with  the  long-term  trend  of 
wages catching up with the EU average. The NIIIP 
is  consistently  negative  but  stable  since  2009  at 
around  -60%  to  -70%.  The  dynamics  of  the 
current  account  were  mainly  determined  by  the 
movements  of  the  trade  balance.  The  growth  of 
housing prices accelerated in the recent years but 
in  the  second  half  of  2022. 
slowed  down 
real 
Favourable  economic  development, 
interest 
liquidity 
rates,  and  easily  available 
motivated  households  to  take  mortgages  for 
property  purchases.  House  prices  appear  to  be 
overvalued.  The  growth  in  house  prices  is  closely 
linked 
increased 
substantially over the last years but slowed in the 
second  half  of  2022  on  the  back  of  increasing 
interest rates.  

to  household  debt 

that 

low 

Going  forward,  most  of  the 
identified 
vulnerabilities  could  ease,  but  risks  and 
uncertainties remain elevated. Unit labour cost 
growth is projected to moderate to 5.5% in 2023. 
Inflation is expected to decline below 11% in 2023 
but  still  remains  at  5.7% 
in  2024  as  the 
governmental  measures  mitigating  energy  prices 
are  being  phased  out.  Tight  monetary  conditions 
and  less  easy  access  to  credit  are  expected  to 
dampen  the  demand  for  loans,  and  this  decrease 
the  housing  prices  growth.  Growth  in  housing 
prices has already slowed down in the second half 

(149) European Commission (2023), In-Depth Review for Slovakia, 
Commission staff working document (COM(2023) 643 final), 
in accordance with Article 5 of Regulation (EU) No 
1176/2011 on the prevention and correction of 
macroeconomic imbalances.  

78 

 
 
                                                 
 
Table A22.1: Assessment of macroeconomic imbalances matrix 

Source: European Commission 

79 

Gravity of the challengeEvolution and prospectsPolicy responseUnsustainable trends, vulnerabilities and associated risksPrivate debtThe household debt-to-GDP ratio has increased by over 20 pps over the last decade to 48%, which is still below the prudential threshold (50%), but well above the fundamental benchmark (29%). Approximately 25% of households have a mortgage, which is an increase of 5 pp since 2017, and most of these are higher-income, younger households. The demand for loans has been strong in the recent years despite of tightening macroprudential conditions. In 2022, household credit flows accelerated to 4.2% of GDP, which is the second highest value in the EU and more than twice exceeding the benchmark for credit flows of 1.9% of GDP.The pandemic did not weaken household demand for loans due to government support measures. In the first half of 2022, the demand for new loans more than doubled compared to the previous year. As a result, the volume of approved loans reached all-time highs. However, in the second half of 2022 the demand for loans significantly eased as mortgage rates increased. Property sales slowed and the number of available advertised properties started to increase. The rising cost of living contributed in September 2022 to the weakest annual increase in loans to households since 2013, with demand for new loans falling the most.In response to the rapid growth of household debt, since 2018 the NBS has introduced a set of borrower-based measures since 2018, including limits on the loan-to-value (LTV), debt-to-income (DTI), and debt service-to-income (DSTI) ratio. Even if the measures did not dampen the demand for loans, they helped to increase the resilience of the financial system. In 2022, the NBS tightened DTI limit further for people, whose loan repayment could exceed retirement age as recommendated by the ESRB. There is a potential room for tackling the vulnerabilities arising from topping-up of existing mortgages.  As inflation began to rise sharply in the euro area in 2022, the ECB responded by tightening monetary policy. Average interest rates on new mortgages in Slovakia increased from 1% to 3% over a year, which shall limit further increase of mortgage debt as the main component of private debt.Housing marketAfter a sharp decline by as much as 25% during the global financial crisis, property prices in Slovakia increased in nominal terms by 90% between 2012 and 2022, while disposable income increased by 57% over that period. Over half of this increase in house prices took place over the last three years. They grew by 21.3% in 2022, which is high growth rate by historical standards compared to other EU countries. Housing prices appear to be overvalued in recent years, which reduces housing affordability in Slovakia. Housing supply is insufficient and has been lagging behind the strong demand in recent years. The rental market does not function well and is hardly an alternative to the housing purchase.After the outbreak of the pandemic, housing prices accelerated even more due to an extremely eased monetary policy accompanied by supportive government measures and an additional demand for housing due to changes in working patterns. The growth in housing prices peaked in the first half of 2022, due to expectation of a rise in interest rates. With rising interest rates, lending slowed down in the second half of 2022. Consequently, housing prices decreased by 1.9.% q-o-q in the fourth quarter of 2022, even though they still grew by 15% annually. In the next 2 years, inflation in the euro area is expected to remain elevated, which will cause monetary policy to remain tight. Worse access to credit together with a reduction in household purchasing power should dampen the demand for housing going forward. The construction sector is expected to recover after the lifting of bottlenecks in supply chains, while the new construction law should support supply by reducing the administrative burden. In 2018, the NBS introduced a new set of macroprudential measures. Although the restriction of credit supply did not translate into a decrease in demand for housing, the resilience of the financial system improved. The lending conditions for people, whose loan repayment should exceed retirement age were tightened in 2022. The record length of dealing with building permits should be addressed by new construction law approved in 2022, entering into force from April 2024. The System of the State supported rental housing adopted in 2022 is supposed to improve the insufficient availability of rental housing. However, progress in the construction of new apartments has been limited so far. Shift from the area-based property taxation to the market-based system could improve the fairness, bring revenues to public finances, and dampen the strong demand for housing properties. External positionBefore the pandemic crisis, Slovakia had been recording moderate current account deficits, which have widenend  since then. After an improvement to 0.6% in 2020, the balance declined to -2.5% of GDP in 2021 and to -8.2% in 2022. This is significantly below the level explained by economic fundamentals, as well as below the levels required to stabilise the NIIP over the medium term, or to reach the NIIP prudential benchmark. The NIIP has been broadly stable over the last decade, but at significant negative levels. It recorded  63% of GDP in 2022. The NIIP excluding non-defaultable instruments has been much more favourable, as foreign direct investment account for a large share of liabilities.The decline in the current account balance after 2020 was one of the sharpest among the EU countries. The current account dynamics were mainly determined by the worsening of the trade balance, mainly the balance of trade in energy goods. The current account deficit is expected to decrease from 8.2% in 2022 to 7.0% in 2023 and to 5.6% in 2024 due to lower energy prices, subsiding supply-chain bottlenecks and a better economic outlook for the export destinations. The NIIP is expected to remain broadly stable, reflecting the large stable stock of foreign direct investment.Further policy progress to reduce the energy dependency and intensity of the economy is needed.  Policies  under REPowerEU and RRP envisaged to reduce dependency on energy imports over the medium term, which are also conducive to improving the current account balance,  need to be implemented. The government should remove administrative barriers to the expansion of renewable sources of energy, improve the regulative framework and expand grid capacity. The temporary government intervention in the energy market should expire after 2024 to decrease government lending.CompetitivenessThe average annual growth of unit labour costs in Slovakia was 4.6% over the years 2015-2022, compared to an EA average of 1.9%. Slovakia consistently outpaced inflation in the EU and the EA over the period 2018-2021 and reached 12.1% in 2022 which was one of the highert rates in the euro area, contributing also to headline REER appreciation. The asymmetric impact of supply-chain bottlenecks and the energy price shock contributed to lower Slovak exports and a loss in market share.Slovak inflation is expected to remain among the highest in the EA due to strong price growth at the beginning of 2023 and the expected growth in retail energy prices in 2024 after the government interventions are withdrawn. High inflation and a tight labour market are expected to keep pressure on wages contributing to a higher growth of ULC. However most of the factors  limiting Slovak exports should subside by the end of 2023, resulting in a strong growth of exports.Slovakia’s economy could benefit from the implementation of the government’s national strategy for research and innovation, which aims to simplify burdensome regulation and to improve the labour force by attracting and retaining educated young people. Slovakia could promote the automobile industry by further improving local conditions for investment and innovation.