COMMISSION STAFF WORKING DOCUMENT 2024 Country Report – Slovenia Accompanying the document Recommendation for a COUNCIL RECOMMENDATION on the economic, social, employment, structural and budgetary policies of Slovenia
Date: 2024-06-19
Institutions: European Commission, Secretariat-General
Subjects: Slovenia, budget policy, economic and social cohesion, economic policy, economic recovery, economic reform, employment policy, fiscal policy, social policy, stability pact

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, XXX  SWD(2024) 624/4 SENSITIVE* UNTIL ADOPTION COMMISSION STAFF WORKING DOCUMENT 2024 Country Report – Slovenia         Accompanying the document Recommendation for a COUNCIL RECOMMENDATION on the economic, social, employment, structural and budgetary policies of Slovenia     {COM(2024) 624}  * Distribution only on a ‘Need to know’ basis - Do not read or carry openly in public places. Must be stored securely and encrypted in storage and transmission. Destroy copies by shredding or secure deletion. Full handling instructions https://europa.eu/!db43PX  
 
 
 
 
 
 
 
 
 
 
 
ECONOMIC AND EMPLOYMENT SNAPSHOT 

Slower growth, decreasing 
inflation and a tight labour market 

Growth in Slovenia decreased in 2023 but 
remained  above  the  EU  average (1). 
Slovenia  has  a  dynamic,  export-oriented 
economy  with  industry  comprising  a  high 
share 
in  total  value  added.  Despite  the 
devastating  floods  in  the  summer  of  2023 
that  caused  extensive  damage  to  properties 
and  infrastructure,  real  GDP  grew  by  1.6%. 
This is a decrease from the 2.5% in 2022 but 
is significantly above the 0.5% growth rate in 
the  EU.  GDP  growth  was  mainly  driven  by 
domestic  demand,  especially  in  construction 
investment.  Higher  borrowing  costs  weighed 
on 
in  machinery  and 
equipment, but construction was supported by 
significant inflows of EU funds, including those 
under  the  recovery  and  resilience  plan  (RRP), 
and  the  funds  from  the  2014-2020  cohesion 
policy  programme.  Employment  growth  and 
rising  real  wages  further  boosted  growth  in 
the 
consumer 
external 
improve,  price 
environment  continues 
levels 
and 
pressures 
normalise,  economic  growth  is  forecast  to 
further increase this year and the next. 

investment 

spending. 

inventory 

As 
to 

abate 

the 

Inflation  is  set  to  continue  declining. 
Harmonised  Index  of  Consumer  Prices  (HICP) 
inflation  decreased  from  9.3%  in  2022  to 
7.2%  in  2023,  still  significantly  above  the 
5.4% in the euro area. The fall in inflation was 
driven  by  decreasing  prices  of  energy,  goods 
and  food  whereas  the  services 
inflation 
remained relatively high until the end of 2023, 
moderating  thereafter.  Inflation  is  forecast  to 
decline  further,  dropping  to  2.2%  in  2025. 
Inflation  excluding  energy  and  unprocessed 

food  remains  somewhat  higher  than  the 
inflation,  as  prices  of  services 
headline 
continued to increase rapidly. 

After  sustained  increases,  both  exports 
and  imports  declined  in  2023.  Inflation 
(including  that  related  to  high  energy,  raw 
material,  and  rising  producer  prices),  and 
global supply chain constraints have adversely 
the  competitiveness  of  export-
affected 
oriented  and  energy-intensive  industries  (e.g. 
chemicals, aluminium, steel and paper, as well 
as  the  automotive  industry,  see  Annex  12). 
Competitiveness  indicators  have  deteriorated, 
with  production  volumes  decreasing  and  unit 
labour  costs  continuing  to 
increase.  The 
decline of imports was caused by a substantial 
downward  adjustment  of  inventories,  which 
contributed negatively (-4.4 percentage points) 
to GDP growth. Exports and imports of services 
increased.  The  current  account  balance  has  a 
surplus,  as  before  the  energy  price  crisis. 
Exports of goods and services are expected to 
grow  in  2024-2025  as  the  situation in  export 
markets  improves.  Imports  are  expected  to 
pick up as the process of reducing the amount 
of inventory gradually abates. 

Expenditure 

is 
The  general  government  deficit 
expected  to  remain  below  3%  of  GDP  in 
2024 (2).  Most  of  the measures  implemented 
to mitigate the economic and social impact of 
high  energy  prices  are  being  withdrawn  in 
2024. 
flood 
reconstruction  financing  will  reach  1.0%  of 
GDP  in  2024  and  gradually  decline  in  the 
coming years. This expenditure will be partially 
offset  by  a  higher  corporate  income  tax  rate 
and a new tax on banking assets for the period 
public 
2024-2028.  Nationally 
investment  is  projected  to  remain  high,  at 
5.3%  of  GDP  in  2024.  Public  finances  in  the 

financed 

related 

to 

(1)  The cut-off date for the data used to prepare the 27 

(2)  European Commission, 2024, Spring 2024 Economic 

Country Reports was 15 May 2024. 

Forecast. 

2 

 
 
 
 
coming  years  will  also  be  impacted  by  the 
gradual  phasing  in  of  the  long-term  care, 
health and public sector wage system reforms. 
The  government  debt  dropped  below  70%  of 
GDP  in  2023  and  is  on  a  declining  path.  In 
recent  years,  Slovenia  made  significant 
progress 
in  developing  green  budgeting 
techniques. 

indications  that  labour  is  not  being  allocated 
efficiently to the most productive sectors (see 
Graph 1.1). 

Graph 1.1: Indicator of allocative efficiency 
within industries 

facing 

record 

(78%). 

The  labour  market  remains  tight  with 
labour  shortages  holding  back  economic 
In  2023,  the  employment  rate 
growth. 
The 
high 
a 
reached 
unemployment  rate  reached  a  new  low  of 
3.7% in 2023 and gross nominal  wages grew 
by some 9.7%, while  real wages increased by 
labour 
2.1%.  Many  sectors  are 
shortages,  with  the  vacancy  rates  being  the 
highest  in  construction  and  hospitality  sectors 
and the number of vacancies being highest in 
manufacturing.  Amongst  the  businesses  that 
recruited  ICT  specialists,  Slovenia  has  the 
highest 
reporting 
share  of  businesses 
finding  sufficiently  skilled 
difficulties 
employees in the EU (Annex 10). Furthermore, 
businesses appear to be hoarding labour, even 
in times of weaker growth, so they can resume 
recovers. 
fully  when  demand 
production 
Despite  positive  trends  in  employment  and 
unemployment,  the  share  of  young  people  in 
temporary  employment  reached  one  of  the 
highest  levels  in  the  EU  in  2022  (Annex  14). 
The  participation 
in  adult  education  and 
training  has  decreased  significantly  since 
2016  (also  Annex  14)  and  Slovenia  is  falling 
well short of its target of having at least 60% 
of  all  adults  participating  in  education  and 
training every year by 2030.  

in 

in 

increase 

(1)  This 
indicator  measures  the  extent  to  which 
productive resources (in this case labour) are channelled 
towards their most efficient use (i.e. comparatively more 
productive  firms)  within  narrowly  defined  industries 
(NACE  Rev.  2.,  1  or  2  digit  level).  Allocative  efficiency  is 
measured  as  the  percentage 
industry-
productivity  connected  with  the  actual  allocation  of 
employment across firms (the co-variance), relative to a 
baseline  scenario  in  which  employment  is  allocated 
uniformly.  A  positive  (negative)  number  indicates  that 
is  concentrated  among  above-average 
employment 
(below-average)  productivity  firms.  The 
interquartile 
range  plots  the  distribution  among  the  Member  States 
(for  which  data  are  available).  This  measure  is  inspired 
by the breakdown of productivity developed in Olley and 
Pakes (1996). Sectors: C Manufacturing; F Construction; G 
Wholesale 
I 
Accommodation  and  food  services;  J  Information  and 
communication;  M_N  Professional,  administrative  and 
support services. 
Source: European Commission’s elaboration calculations 
based on 2018 ORBIS data. 

trade;  H 

Transport; 

retail 

and 

is  placing  an 
The  ageing  workforce 
additional strain on the labour market. In 
2030,  there  will  be  40 000  fewer  employees 
than  in  2022 (3).  Attracting  unemployed  or 
inactive people into the workforce is becoming 
increasingly difficult as this pool is drying out. 
Recruiting  from  abroad  continues  to  be  the 
most  promising  option  for  businesses.  Further 
increases in labour supply and productivity will 
be  needed  to  secure  long-term  growth  and 
improve  competitiveness.  There  are  also 

(3)  2024 Ageing Report projections. 

Low productivity growth  

Slovenia’s  labour  productivity  remains 
below  EU  levels  and  shows  no  sign  of 
catching  up.  Since  2008,  labour  productivity 
has fluctuated between 80 and 85% of the EU 
average, which is near the EU median. On the 
positive  side,  productivity  in 
industry  has 
increased  faster  than  in  the  rest  of  the  EU 

3 

-0.6-0.4-0.200.20.40.6CFGHIJMNinterquartile range (p25-p75)SI 
 
  
Box 1: 

Slovenia’s competitiveness in brief 

Slovenia remains competitive in its key export markets, facilitated by good performance 
in  terms  of  some  single  market  indicators,  openness  to  trade  and  high  levels  of  public 
investment. Slovenian industry, which has a high share in gross value added to  GDP, has been 
able to improve its productivity faster than its competitors. In addition, Slovenia’s RRP includes 
measures  that  aim  to  address  long-standing  challenges,  such  as  reducing  the  administrative 
burden,  improving  the  public  procurement  system,  and  increasing  the  efficiency  of  its  public 
administration. However, competitiveness challenges remain. 

•  Access to private capital could be improved. A lack of such access restrains investment 

and growth of young and innovative firms and possibly hinders other investments. 

•  Lack  of  availability  of  skilled  labour  resulting  from  an  ageing  working  force  and 
workers’  possible  lack  of  ability  to  move  to  the  more  productive  sectors  could  hold  back 
growth and efficiency  gains,  including through a broad uptake of advanced technologies by 
businesses. 

•  There  is  room  for  further  improvements  to  the  business  environment  and  the 

efficiency of state institutions needs to be improved by means of cutting red tape. 

(Annex  12),  and  total  factor  productivity (4) 
growth  has  also 
remained 
consistently 
significantly above the EU average.  

Graph 1.2: Drivers of labour productivity 
growth 

(1) Growth accounting on GDP per hour worked 
Source: European Commission (Autumn 2023 Forecast) 

This  can  be  attributed  to  Slovenia’s  high 
share  of  R&D  personnel,  its  high  level  of 
post-secondary educational attainment and its 
high  proportion  of  doctorate  graduates  in 

(4)  A measure of productivity accounting for effects in total 
output not caused by traditionally measured inputs of 
labour and capital. 

technology, 

engineering 

science, 
and 
mathematics. Despite this, patent applications 
remain  relatively  low  (Annex  11),  as  is  the 
R&D expenditure in the public sector. Slovenia 
is a ‘moderate innovator’ and the gap between 
the country’s performance and that of the EU 
is  becoming  larger.  The  2022  Programme  for 
International Student Assessment (PISA 2022) 
showed  that  the  share  of  top-performing  15-
year-old  Slovenians  decreased  in  basic  skills 
(mathematics and reading), which could affect 
the  supply  of  skills  and  the  capacity  for 
innovation in future (see Annex 15). 

in 

equipment 

investments 

Low  levels  of  private  investment  and 
capital  accumulation  are  holding  back 
productivity  growth.  The  ratio  of  business 
investment  to  GDP  is  below  the  EU  average. 
and 
While 
relatively  high,  Slovenian 
machinery  are 
businesses 
less  than  their  foreign 
competitors  in  intellectual  property  products 
and buildings. The average R&D expenditure is 
lower  than  the  EU  average.  Obstacles  to 
investment  in  2023  included  lack  of  skilled 
labour,  high  energy  costs,  disrupted  access  to 
inputs and financial constraints (5). 

invest 

The  capital  market  is  not  providing  good 
alternatives  to  bank  financing.  Slovenian 

(5)  2023 EIBIS survey 

4 

-10-8-6-4-202468200020052010201520202025% changeCapital deepeningTFPLabour productivity 
  
 
 
 
Box 2: 

UN Sustainable Development Goals (SDGs) 

Slovenia  is  making  progress  on  all  SDGs  related  to  competitiveness  and 
productivity 
(SDGs 4,  8,  9)  although  there  remains  some  room  for 
improvement.  Slovenia  is  below  the  EU  average  in  SDG 9  related  to  innovation, 
industry and resilient infrastructure in areas of sustainable industry, patent applications, 
R&D  expenditure  and  use  of  passenger  public  transport.  In  SDG 8,  related  to  decent 
work  and  economic  growth,  Slovenia  has  a  higher  material  footprint  than  the  EU 
average.  Material  footprint  increased  over  2015-2020,  while  it  declined  for  the  EU 
average (see Annex 1). 

Out of the 17 indicators, 7 SDGs remain below the EU average. These relate to: 
(i) environmental stability (SDGs 2, 9, 12, 13); (ii) fairness, in the areas of good health 
and  well-being  (although  negligeable);  (iii) gender  equality  (SDGs 3  and  5);  and 
(iv) macroeconomic  stability,  in  the  area  of  peace,  justice  and  strong  institutions 
(SDG 16). 

from 

consumption 

Revenue 
taxes  and 
environmental  taxes,  particularly  those  on 
transport fuel, as a share of total taxation are 
above  the  EU  average.  On  the  other  hand, 
capital  taxes  and  recurrent  property  taxes 
remain  very  low,  with  a  share  about  half  the 
EU average. The government has announced a 
tax  reform,  the  details  of  which  are  currently 
being discussed with various stakeholders. 

Reforms to the public sector wage system 
since 2018 have fragmented it, making it 
less  attractive  for  employment.  Uneven 
wage  growth  between  individual  professions 
led 
to  divergencies  across  wages  of 
comparable  professions.  The  share  of  staff 
under  the  age  of  39  continues  to  fall  (see 
Annex  13)  and  various  public  sector  units 
reportedly  have  problems  in  filling  vacant 
posts,  especially  with  younger  people  and 
workers  with  digital  skills.  These  challenges, 
and  concerns  over  public  finances,  have 
prompted  the  government  to  put  forward  a 
reform as part of the RRP.  

poverty 

For  3  out  of  the  16  criteria  of  the 
European Pillar of Social Rights, Slovenia 
is  among  the  best  performers.  However, 
old-age 
challenge, 
the 
particularly  for  women,  pointing 
inadequacy  of  the  social  protection  system. 
The  impact  of  social  benefits  (other  than 
pensions)  on  poverty  reduction  decreased 
significantly between 2021 and 2022. 

remains 

to 

a 

companies rely more on bank funding and less 
on capital market funding than competitors in 
the  other  EU  countries.  The  liquidity  of  the 
Ljubljana  Stock  Exchange is  low.  The  value  of 
annual  private  equity  investment  was  just 
0.1% of nominal GDP in 2022, only a sixth of 
the  EU  average  and  a  tenth  of  the  most 
advanced  economies (6).  The  role  of  venture 
capital  in  the  economy  is  limited  (0.01%  of 
nominal  GDP  compared  to  0.09%  in  the  EU-
27).  The  Association  of  Financial  Markets  in 
Europe  ranks  Slovenia  among  the  weakest  in 
most  indicators  regarding  the  efficiency  of 
capital  markets (7).  The  role  of  institutional 
investors 
Therefore, 
opportunities  to  develop  risky  but  potentially 
very  lucrative  business  ideas  are  hampered, 
which affects Slovenia’s competitiveness. 

limited. 

also 

is 

Slovenia  relies  heavily  on  labour  taxes 
including  social  contributions  paid  by 
employees. Tax revenue as a share of GDP is 
only slightly below the EU average (see Annex 
19).  The  highest  personal  income  tax  bracket 
(50%)  and  the  taxation  of  earnings  from 
labour  (the  tax  wedge)  for  various  income 
levels  remain  among  the  highest  in  the  EU. 
Social contributions as a share of GDP are the 
highest  in  the  EU.  A  new  long-term-care 
contribution  will  be  introduced  in  July  2025. 

(6)  See Capital Market Union indicators 11 and 16 

(7)  AFME: Capital Markets Union Key Performance 

Indicators – Sixth Edition 2023 

5 

 
 
 
IMPLEMENTATION OF KEY REFORMS AND 
INVESTMENTS USING EU INSTRUMENTS 

Funding from the Recovery and Resilience 
Facility  (RRF)  and  cohesion  policy  is 
mutually reinforcing Slovenia’s efforts to 
boost  its  competitiveness  and  stimulate 
In  addition  to  the 
sustainable  growth. 
EUR 2.7  billion  of  RRF  funding  described  in 
Annex  3,  cohesion  policy  funding  provides 
Slovenia  with  EUR 3.2  billion for  the  2021-
2027  period.  Combined  support  from  these 
two 
represents  9.40%  of 
Slovenia’s  GDP  in  2023,  compared  to  the  EU 
average of 5.38% (see Annex 4).  

instruments 

transformation 

Under  its  recovery  and  resilience  plan 
(RRP),  Slovenia  has 
launched  crucial 
policy  measures  that  are  expected  to 
improve 
its  competitiveness.  The  RRP 
envisages  major  reforms  in  areas  like  the 
digital 
public 
barriers, 
administration, 
alternative  fuels  infrastructure,  and  public 
procurement.  Slovenia  is  carrying  out  major 
investments  in  railway  infrastructure,  energy 
renovation  of  buildings,  construction  of 
affordable  public  housing,  education,  and  the 
digital and green transition of the economy. 

administrative 

the 

of 

of 

implementation 

Slovenia’s 
The 
recovery and resilience plan is underway, 
however 
requires 
timely  completion 
increased efforts. Slovenia has submitted 2 
payment 
to  65 
requests,  corresponding 
milestones  and  targets 
in  the  plan  and 
resulting  in  an  overall  disbursement  of  EUR 
586 million on 28 December 2023 (see Annex 
3).  The  size  and  complexity  of  the  plan,  and 
challenges  linked  to  absorption  capacity,  call 
for  accelerating  investments  and  addressing 
strengthening 
emerging 
administrative  capacities 
that 
reforms and investments can be completed on 
time.  Investments,  in  particular,  are  highly 
concentrated  towards  the  end  of  the  RRP 
implementation and merit special attention. 

to  ensure 

delays 

while 

sustainable 

focused  on 

Cohesion  policy  funding  helps  tackle 
Slovenia’s  growth  and  competitiveness 
challenges  and  reduce  the  country’s 
territorial and social disparities. Under the 
cohesion  policy  programme, 
2014-2020 
research  and 
support  was 
innovation,  SMEs, 
transport, 
energy  efficiency,  climate  adaptation,  and 
2021-2027 
employment. 
programming  period,  support  is  focused  on 
boosting  Slovenia’s 
the 
green,  digital  and  energy  transitions  including 
renewable  energies  and  energy  efficiency, 
climate  adaptation,  sustainable 
transport, 
lifelong  learning  and  social  cohesion,  as  well 
as improving living and working conditions.  

competitiveness, 

the 

For 

Removing barriers to improve the 
business environment  

implementation 

includes 
The  RRP’s 
important steps to reduce the regulatory 
burden  and 
the  business 
improve 
environment.  The  Debureaucratisation  Act 
entered  into  force  in  January  2022  and  was 
followed  up  by  amendments  to  a  further  24 
pieces  of  legislation  in  2022.  The  reform,  a 
measure 
introduced 
the 
for 
simplifications  and 
individuals and businesses by cutting reporting 
requirements  and  frequency,  easing  licencing 
procedures, 
and 
and 
introducing 
reporting.  Moreover,  over  200  laws  and  by-
laws have been repealed. 

auditing, 
identification 

reduced  burdens 

simplifying 

electronic 

under 

RRP, 

Slovenia  is  speeding  up  the  roll-out  of 
renewable  energy  installations  in  the 
power  sector.  The  Act  on  the  Promotion  of 
the  Use  of  Energy  from  Renewable  Energy 
Sources  was  adopted  in  July  2021  under  the 
RRP. It lifts legal and administrative barriers to 

6 

 
 
Installations  for 

spatial planning and establishes a single point 
of  contact  to  assist  investors  with  procedures 
for installation and operation. The new Act on 
the  Deployment  of 
the 
Production  of  Electricity  from  Renewable 
Energy  Sources,  part  of 
the  REPowerEU 
chapter  was  also  adopted  in  July  2023.  It 
provides a legal basis for drawing up an action 
plan that identifies potential priority areas for 
solar  and  wind  installations.  A  comprehensive 
reform  of  alternative  fuel  deployment  in 
transport was adopted in 2023.  

Slovenia  has  taken  measures  to  reform 
its  public  procurement  system,  but 
challenges  remain.  The  amended  Public 
Procurement  Act  of  2021  aims  to  improve 
competition  and  digitalisation. 
In  addition, 
since  August  2021,  Slovenia’s  national 
databases have been aligned with the Tenders 
(TED)  databases.  Further 
Electronic  Daily 
reforms aiming to increase competition in the 
public procurement market were implemented 
with  help  from  the  European  Commission’s 
Technical  Support  Instrument.  Further  work, 
such  as  establishing  a  public  procurement 
academy,  is  ongoing  to  address  challenges. 
Despite  these  combined  efforts,  Slovenia  still 
has a very high share of single bids and a low 
share of contracts awarded to foreign bidders. 

Boosting investments in the green 
and digital transitions 

Slovenia  has  adopted  a  business  digital 
transformation  strategy,  which  introduces 
a  single  register  for  all  business  operators.  In 
line with the strategy, at least 200 businesses 
will  acquire  an  e-identity.  To  facilitate  the 
digital  transition  of  the  economy,  the  RRP  is 
supporting the development of tailored digital 
strategies 
to 
transform 
technology, 
organisation  and  culture.  The  development  of 
these digital strategies brings large companies 
and  SMEs  together.  The  large  companies 
should  benefit  from  access  to  specialised 
knowledge,  while  SMEs  get  access  to  new 
markets and vast amounts of data. About 23% 
of  the  EUR  43  million  of  RRP  funding  are 
allocated  to  SMEs.  Under  the  cohesion  policy 

large 
business, 

for  23 
their 

companies 

7 

programme,  around  EUR  24.5  million  is  being 
spent on helping SMEs to digitalise. 

The  RRF  and  cohesion  policy  will  support 
investments  and  leverage  private  funds 
in  research,  development  and  innovation 
(R&I), a critical driver of productivity and 
economic  growth.  Cohesion  policy  funding 
for  the  2014-2020  period  helped  promote 
research  hubs  such  as  the  National  Institute 
for  Biotechnology.  It  attracted  researchers 
from around Slovenia and abroad, successfully 
creating  the  link  between  research,  business, 
and  private 
investment.  The  benchmark 
research  hub  was  supported  with  EUR  25.8 
million 
Regional 
Development Fund (see Annex 4). 

European 

from 

the 

project 

The  RRF  provides  EUR  51.64  million  for 
RDI projects in the field of the green and 
digital  transition.  The  investments  are  to 
support 
promoting 
collaboration  between  research  organisations, 
large  companies  and  SMEs.  They  aim  to 
strengthen  public-private  cooperation  and 
stimulate  entrepreneurial  investment  in  the 
green transition. 

consortia 

Slovenia  will  reduce  the  social  and 
economic  costs  of  the  national  coal  exit 
strategy  (end  date  2033)  and  facilitate 
the  green  transition  with  the  help  of 
cohesion policy funding. The Just Transition 
Funds  (JTF)  will  promote  sustainable  energy 
the 
and 
diversification of the local economy in the two 
coal  regions,  Savinjsko-šaleška  and  Zasavje, 
investing  EUR  258  million.  Moreover, by  using 
the JTF, Slovenia will also step up the training 
and reskilling of workers.  

restructuring, 

energy 

and 

the 

increase 

To 
productivity  and 
competitiveness  of  companies  while 
decarbonizing  the  economy,  Slovenian 
authorities  have  approved  63  direct 
investment  projects.  These  provide  a  total 
of EUR 88.5 million in RRP funding. Supported 
projects  have  to  comply  with  a  set  of 
environmental 
criteria, 
specifically  energy  and  material  efficiency, 
and, like all projects under the RRP, they have 
to apply the ‘do no significant harm’ principle. 

performance 

 
Slovenia is  developing a  green budgeting 
framework.  A  methodology  was  adopted  in 
2023 and is being implemented in 2024. This 
reform  is  expected  to  support  the  monitoring 
of  green  budget  expenditure,  the  assessment 
of environmental and climate impacts of fiscal 
policy  and  the  alignment  of  budgetary  and 
fiscal policies with climate objectives. 

Reforms to support the labour 
market 

to 

By reforming the educational system and 
in  digital  and  green  skills 
investing 
Slovenia is investing in its future. Slovenia 
launched  an  RRF-funded  campaign  to  train 
20 000  teachers  (approximately  40%  of  the 
their 
educational  workforce) 
knowledge  and  skills  in  the  areas  of  digital, 
sustainable  and  financial  literacy.  This  should 
empower them to make learning more flexible 
and make the educational system more robust 
if pandemic-like crises arise. It is expected that 
the  measure  will  help  students 
in  their 
transition to the labour market  and help align 
the  education  system  with  labour  market 
needs. 

boost 

For  those  already  in  the  labour  market,  the 
European  Social  Fund  Plus 
(ESF+)  help 
increase  skills  development  through  lifelong 
learning,  with  a  budget  of  around  EUR  207 
million  (Annex  4).  A  key  area  of  ESF+  support 
is  strengthening  the  competences,  including 
digital and green skills, of the adult population, 
especially vulnerable groups.   

Reforming healthcare, long-term 
care, pensions and public sector 

A  pension  reform  is  expected  to  be 
adopted in 2024.  According to the RRP, the 
first  step  is  the  consultation  of  the  draft  law 
with  the  social  partners.  The  proposals  are 
expected  to  address  the  adequacy  and  fiscal 
sustainability of the pension system. Based on 
the RRP, this is expected to include increasing 
the  early  retirement  age  and  the  regular 

8 

the 

indexation 
revising 
retirement  age, 
formula  and  taking  more  years  of  the  career 
into account. The reform will be complemented 
by labour market reforms to limit the practice 
receiving  unemployment 
of 
benefits for an extended period.  

retiring  after 

A  comprehensive  healthcare  reform  is 
expected  to  enter  into  force  in  2024.  Its 
aim  is  to  address  chronic  problems  in  the 
system  and  ensure  the  quality,  accessibility, 
and  financial  sustainability  of  healthcare. 
Some  targeted  measures  have  already  been 
taken  or  are  envisaged  for  2024.  They  aim 
primarily  to  improve  the  efficiency  of  the 
healthcare  system  and  attract  more  doctors 
into primary care. Among the measures taken 
is 
voluntary 
complementary  healthcare  insurance  by  the 
broadened  coverage  of  the  mandatory  health 
insurance sticks out (see Annex 16).   

replacement  of 

the 

the 

recommendation 

A  coherent  regulatory  framework  for 
long-term  care  (LTC)  is  a  long-standing 
country-specific 
for 
Slovenia.  As  part  of  the  RRP,  a  new  law  on 
LTC  entered  into  force  in  2023.  The  right  to 
family care has been applicable since January 
2024,  whereas  other  rights  and  a  new  LTC 
insurance will become applicable over the next 
12  months.  However,  several  implementing 
acts  are  still  pending.  These  need  to  be 
adopted  swiftly 
to  ensure  a  coherent 
regulatory  framework  and  provide  sufficient 
time for stakeholders as the implementation is 
in  particular 
already 
pervasive labour shortages. 

facing  headwinds, 

establish   

system, 

Important  public  sector  reforms,  which 
form part of the RRP, are expected to be 
adopted  in  2024.  The  reform  of  the  public 
sector  wage  system  aims  to  modernise  the 
remuneration 
differentiated  remunerations  for  public  sector 
segment  and  address  shortages  of  specific 
professions in the public sector, while ensuring 
its fiscal sustainability. The reform is expected 
to be concluded in 2024 and is currently being 
discussed 
The 
establishment  of  a  Competence  Centre  is 
expected to help develop civil servants’ digital 
skills  and 
resource 
management  of  the  public  administration. 

stakeholders. 

the  human 

improve 

with 

 
Box 3: 

Combined action for more impactful EU funds 

To  boost  economic  growth  and  maximise  the  impact  of  EU  funding,  Slovenia's  RRP  includes 
reforms that support investments under other EU instruments, creating significant synergies and 
complementarities  between  the  various  funds.  For  example,  Slovenia’s  RRP  supports  a 
comprehensive reform of public passenger transport that will result in a new body to coordinate 
and  align  all  modes  and  operators  of  public  passenger  transport.  The  corresponding  RRF 
investments will enable railway sections and stations to be upgraded, most notably in Ljubljana, 
which is the largest passenger hub. The multi-fund cohesion policy programme for 2021-2027 
will  help  prepare  local  sustainable  transport  strategies  and  investments  in  additional  railway 
sections and stations that will complement rail transport with local buses, bikes and other green 
forms of transport. The RRP reform will ensure that these investments are fully integrated and 
coordinated at national level, which has never been achieved before. 

RRP  is  funding  the  rehabilitation  of  sites 
threatened  by  landslides  and  the  creation  of 
modular response units specialised and trained 
to  respond  to  climate-related  disasters  at 
national, regional and local level. 

Drafts  of  the  two  reforms  have  been  shared 
with social partners. 

Protecting homes and businesses 
from natural disasters 

Supported  by  the  RRP  and  cohesion 
policy,  Slovenia  will  speed  up  flood 
protection and flood prevention measures 
at  national,  regional  and  local  level 
through  a  new  Slovenian  Flood  Risk 
Management  Plan  for  2023-2027.  The 
reform  makes  flood  risk  management  a 
permanent task with dedicated resources from 
the  national  budget.  This  will  help  prevent 
devastating  floods  like  the  one  in  August 
2023, which is estimated to have caused EUR 
1 billion of direct damage to the economy and 
total indirect costs of EUR 9.9 billion. 

To  help  implement  the  flood  protection  plan, 
2021-2027  cohesion  policy  funding  and  the 
RRP  have  in  total  earmarked  EUR  349  million 
to  ensure  the  direct  safety  of  more  than 
38 000  people,  their  homes,  businesses  and 
jobs.  The  anti-flood  measures  prioritise 
nature-based 
green 
and 
solutions 
infrastructure as much as possible.  

Making  effective  use  of  various  EU 
funding sources, Slovenia has taken steps 
to  respond  swiftly  to  natural  disasters. 
2021-2027  cohesion  policy  funding  supports 
for 
investments 
climate-related disasters such as floods, forest 
fires, sleet or storms. To complement this, the 

technical  equipment 

in 

9 

 
 
 
 
FURTHER PRIORITIES AHEAD 

to 

Slovenia  faces  additional  challenges 
sustainability, 
fiscal 
related 
healthcare,  long-term  care,  the  labour 
market  and  the  green  transition.  Tackling 
these  will  help  increase  Slovenia’s  long-term 
competitiveness  and  ensure  the  resilience  of 
its economy. It will also help the country make 
further progress in achieving the SDGs. 

is 

important  that  the  challenges 
It 
identified are addressed both at national 
and  regional  level.  This  will  help  reduce 
the 
regional 
administrative  and  investment  capacity  in  a 
balanced way across the country. 

disparities 

improve 

and 

Addressing fiscal sustainability 
and the quality of public finances 

The  sustainability  of  Slovenia’s  public 
finances  remains  challenging 
in  the 
medium and long term. Medium-term fiscal 
sustainability 
risks  appear  medium.  The 
government  debt  ratio  is  expected  to  slightly 
decline until 2026 before rising to around 73% 
of  GDP  in  2034  (see  Annex  21).  Long-term 
fiscal sustainability risks appear overall high in 
view  of  the  unfavourable  initial  budgetary 
position and above all of the projected  rise in 
ageing  costs.  Ageing  costs’  developments  are 
primarily  driven  by  a  projected  increase  in 
pension expenditure (3.1 pps.), as well as long-
term  and  health  care  expenditure  (0.9  pp. 
each)  (Table  A21.1,  Table  2).  While  a  number 
of 
in  the  RRP 
contribute  to  supporting  the  efficiency  of  the 
Slovenian health and long-term care systems, 
additional  measures  may  be  required  to 
further 
fiscal 
sustainability. 

investments  and  reforms 

improve 

overall 

the 

Sustainability  goes  hand  in  hand  with 
is 
quality  of  public  finances.  Slovenia 

10 

More 

efficient 

developing a new green budgeting framework, 
which  is  expected  to  improve  the  quality  of 
public  finances  and  contribute  to  the  green 
transition (8). 
public 
procurement  can  help  make  considerable 
savings  in  certain  areas  and  help  redirect 
resources 
to  areas  of  greater  need. 
Furthermore,  spending  reviews  help  identify 
areas  of  lower  priority  or  in  which  there  is 
inefficient  spending.  Full  implementation  of 
their findings – including past findings – would 
allow  the  government  to  repurpose  that 
expenditure  to  address  fiscal  challenges,  help 
better  target  spending towards  those  in  need, 
and  offset  costs  projected  to  increase  due  to 
ageing and new reforms (e.g. in the healthcare 
sector, etc.). 

of 

is  high, 

line  ministries  with 

While  public 
its 
investment 
effectiveness  and  efficiency  could  be 
improved. The planning for public investment 
appears  to  be  carried  out  exclusively  at  the 
level 
limited 
coordination across sectors, including with the 
Ministry of Finance.  The strategic relevance of 
the National Development Programme is hard 
to assess without a coherent set of long-term 
planning  documents  and  an 
integrated 
medium-term  plan  for  potential  investments 
(see  Annex  13).  Better  coordination  and 
management  would  improve  the  efficiency  of 
public  investment,  including  the  prioritisation 
of projects in line with national  and European 
priorities, 
growth 
thereby 
potential and fiscal sustainability.  

strengthening 

The  Institute  of  Macroeconomic  Analysis 
and  Development  and  the  Fiscal  Council 
have  established  themselves  as  trusted 
independent  institutions.  The  lifting  of  the 
ceiling  for  the  number  of  technical  staff 

(8)  Ministry of Finance, 2023, 

https://www.gov.si/assets/ministrstva/MF/Proracun-
direktorat/Drzavni-proracun/NRP/Metodologija-za-
zeleno-proracunsko-nacrtovanje.pdf   

 
 
 
and  (ii)  the  expected  upward  pressure  on 
wages  in  the  healthcare  sector  due  to  labour 
shortages.  The  focus  of  the  health  reform 
under  the  RRP  is  on  access  to  high-quality 
improving  social  rights  and 
services  and 
inclusion.  The  additional  strain  on  public 
reflections  on 
finances 
mechanisms 
financial 
sustainability  and  burden-sharing  as  the  new 
system  matures  and  needs  become  apparent 
beyond what is expected under the RRP.  

requires 
to 

safeguard 

further 

Slovenia encounters obstacles in securing 
an  adequate  number  of  staff  in  order  to 
apply  the  new  long-term  care  (LTC)  law 
effectively. At entry points to LTC, which are 
critical for evaluating individuals' eligibility for 
care, there is a specific weakness with staff, in 
lack  of 
particular,  understaffing  and  a 
effective 
and 
efficient 
expertise. 
functioning  of  the  newly  established  LTC 
system  will 
investments, 
beyond  the  RRP,  in  both  infrastructure  and 
human resources for all types of care offered 
(institutional, community, day care). 

require 

further 

The 

The  financing  of  the  LTC  system  should 
be sufficiently flexible. The three sources of 
funding  -  the  new  insurance  scheme,  the 
government  budget  and  user  contributions  - 
are  expected  to  cover  the  estimated  costs  of 
the  system,  in  its  current  form.  However, 
beyond  the  RRP,  there  is  a  risk  that  in  the 
longer  term  they  might  not  suffice  if  costs 
increased  considerably,  e.g.,  because  of 
inflation  or  greater  usage  of  the  LTC  than 
expected.  This  calls  for  further  consideration 
of  possible  mitigating  measures,  which  would 
provide  flexibility  on  the  revenue  side.  These 
could  take  the  form  of  a  regular  review  or 
some adjustment mechanism of the insurance 
or the government contribution. 

working at the Fiscal Council and an improved 
access  to  budgetary  information  would  ease 
its constraints and boost its capacity.  

Ensuring quality and sustainability 
of healthcare and long-term care 

Timely  access  to  publicly  funded  health 
services  in  Slovenia 
is  a  matter  of 
growing  concern.  Labour  shortages  stretch 
the  available  resources  in  primary  care  to  its 
limits (9).  Workers 
including 
doctors,  were  on  strike  for  several  weeks 
earlier  in  2024,  demanding  better  pay  and 
better  working  conditions.  The  aggravating 
situation requires attention. 

in  healthcare, 

The  share  of  government  spending  on 
healthcare relative to GDP is expected to 
rise considerably in the mid to long term. 
While  the  share  was  relatively  low  compared 
to the EU average until 2023, it is expected to 
increase this year due to the integration of the 
voluntary complementary healthcare insurance 
into the mandatory public health insurance (10). 
In the mid to long term, government spending 
is also expected to continue rising significantly 
due  to:  (i)  the  rapid  ageing  of  the  Slovenian 
population in the coming years and decades as 
projected by the Ageing Report (Annex 16) (11); 

(9)  At 3.3 practising doctors per 1 000 population in 2021, 
the number of physicians in Slovenia was below the EU 
average of 4.1 per 1 000. In addition, only 18.6% of the 
physicians in Slovenia are generalists, compared with 
an EU average of 20.4%. OECD/European Observatory 
on Health Systems and Policies (2023), Slovenia: 
Country Health Profile 2023, State of Health in the EU. 

(10)  Contributions to the voluntary health insurance schemes 
comprised 13.4% of health expenditure in Slovenia in 
2021. As the additional contribution to the mandatory 
health insurance equals that of the former voluntary 
contribution, the share of health expenditure accounted 
for by public sources, which stood at 73.7 % in 2021, 
can be expected to rise by around 13 percentage points. 
OECD/European Observatory on Health Systems and 
Policies (2023), Slovenia: Country Health Profile 2023, 
State of Health in the EU. 

(11)  European Commission and Economic Policy Committee, 
2024, 2024 Ageing Report – Economic and budgetary 
projections for the 27 EU Member States (2022-2070), 
Publications Office of the European Union, Luxembourg. 

11 

 
 
 
 
 
 
 
 
 
Deploying capital and investing in 
labour to improve productivity and 
growth 

Despite  the  recent  trend  of  positive 
growth,  Slovenia’s  businesses  still  invest 
in  other 
less  than  their  competitors 
countries.  While  the  2017–2022  period  saw 
one  of  the  highest  increases  in  investment  in 
the EU, the overall investment-to-GDP ratio in 
Slovenia  remained  slightly  lower  than  the  EU 
average  in  2022  (21.6%,  EU:  22.4%).  As 
employment  continued  to  grow,  capital  per 
work  remained  stagnant.  Housing  investment 
remains  relatively 
low,  as  does  business 
investment  in  construction  and  intellectual 
property  products  (software,  data,  R&D).  On 
the  other  hand,  business  investment  into 
machinery  and  equipment  is  relatively  high, 
reflecting  the  high  share  of  industry  in  the 
economy.  Surveys (12)  suggest  that  the  low 
level  of  business  investment  is  related  to  the 
lack  of  skilled  labour.  Otherwise,  the  share  of 
companies  reporting  obstacles  to  investment 
is lower than on average in the EU (Annex 12). 
Access to credit remains above the EU average 
but  alternative  financing  possibilities  are 
rather limited. 

Beyond  influencing  investment  decisions, 
labour  shortages  are  also  holding  back 
short-term  growth.  At  a  time  of  lower 
increasing 
economic  growth,  wages  are 
rapidly,  and  companies  are  hoarding  workers. 
With a high employment rate, the potential to 
find  more  employees  within  Slovenia 
is 
becoming  limited.  As  workforce  participation 
rates among people in the 55+ age group are 
among the lowest in the EU, there is potential 
to  extend  their  careers.  To  maintain  or 
increase  growth  and  productivity,  workers 
should  move  from  less  productive  to  more 
productive  sectors  of  the  economy  and  new 
workers need to come in from abroad.   

Low levels of investments in housing also 
impact  negatively on  productivity, labour 

(12)  See European Investment Bank Investment Survey 

2023. 

12 

mobility  and  the  attractiveness  for 
foreign  labour.  Lack  of  housing  in  those 
areas  where  employment  is  concentrated  is 
becoming  a  problem,  particularly  for  young 
in  some 
people.  Therefore,  house  prices 
regions  have  reached  relatively  high  levels 
compared to incomes, which affects the ability 
of  workers  to  relocate  (also  to  work  more 
productively)  and  makes  it  more  difficult  to 
attract  foreign  workers.  Low  availability  of 
housing  in  urban  areas  increases  commuting 
time,  exacerbating  transport  emissions.  Low 
into  housing  also 
levels  of 
jeopardises  the  objectives  of  renovating  the 
housing  stock  and  therefore  achieving  the 
emission reduction targets.  

investment 

those 

The  upskilling  and  reskilling  of  the 
workforce  can  help  improve  efficiency 
learning  has 
and  productivity.  Lifelong 
become  a  constant  requirement  to  help 
workers  become  employable  in  sectors  that 
are key to the green economy and support the 
green transition, as well as learn about how to 
use  digital  tools  to  operate  high-tech  tools, 
including 
supported  by  artificial 
intelligence. This not only concerns high-skilled 
workers. Older and low-skilled workers require 
digital  skills,  but  currently  possess  them  only 
to  a  limited  extent  (see  2023  country  report). 
Along  the  same  lines,  it  will  be  crucial  to 
monitor and address the significant increase in 
the share of students with only a low level of 
basic skills in mathematics and reading in the 
OECD’s  Programme  for  International  Student 
Assessment  (PISA)  tests  between  2018  and 
2022. 
In  this  regard,  particular  attention 
should  be  paid  to  basic  skills  in  the  ongoing 
curricula  reform.  The  high  share  (51.2%)  of 
foreign-born students who did not achieve the 
minimum  level  of  proficiency  in  mathematics 
also requires additional attention (Annex 15). 

the 

2023, 

More  effective  integration  policies  could 
labour  shortages  and 
address 
precariousness. 
Slovenian 
In 
authorities  adopted  measures  to  help  non-EU 
nationals  gain  employment  in  response  to 
severe labour shortages in several sectors and 
recurrent  complaints  from  employers  about 
lengthy administrative procedures to get work 
permits. The amendments to the Employment, 
Self-employment  and  Work  of  Foreigners  Act 

 
 
to 

facilitate  and  speed  up 

and  to  the  Foreigners  Act  simplified  the 
procedures for employing foreign workers to a 
certain extent. In addition, asylum seekers can 
now access the labour market 3 months after 
their  work  permit  application  is  registered 
(previously  9  months).  Further  steps  could  be 
taken 
the 
employment of foreign workers. There is still a 
foreign  workers’ 
significant  backlog  of 
applications  –  many  have  to  wait  6  to  8 
months  due  to  excessively  cumbersome  legal 
requirements.  These  delays  are  related  to 
understaffing,  poor  wages,  overly  complex 
bureaucratic 
legislation 
administrative 
in 
procedures 
overworked  staff  and  a  very  high  turnover  of 
employees. Further efforts are also needed to 
reduce  the  share  of  temporarily  employed 
young  people  in  Slovenia,  which  remains 
among  the  highest  in  the  EU  (40.7%  vs  EU 
average of 35.9%) 

excessively 

resulting 

and 

The  relatively  high  labour  tax  wedge 
labour  supply  and 
negatively  affects 
long-term growth. In 2023, Slovenia’s labour 
tax  wedge  (the  taxation  of  earnings  from 
labour)  for  a  single  person  at  50%  of  an 
average  wage  was  5.5  percentage  points 
higher  than  the  EU  average  and  at  average 
wage  3.1  percentage  points  higher.  The  gap 
with  the  EU  has  increased  since  2010  (see 
Annex  19).  The  IMD  World  Competitiveness 
Centre  ranks  Slovenia (13)  as  51st  out  of  64 
countries in 2023 in relation to how tax policy 
supports 
identifies 
competitiveness  and 
specifically the high tax burden on labour as a 
challenge.  A  lower  labour  tax  wedge  would 
reduce labour costs and boost labour demand. 
Higher  net  wages  would  also  improve  labour 
supply (14).  Such 
restructuring,  while 
respecting 
fiscal  sustainability,  could  be 
achieved  through  a  rebalancing  of  taxes 
towards  growth-friendly  tax  sources  that  are 
recurrent 
currently  used 
property taxes. 

including 

less, 

tax 

There  is  room  to  improve  the  business 
environment.  The  number  of  obstacles  to 
doing  business  for  companies  remain  rather 
high  and  are  related  to,  for  instance,  the 
inefficiency of state institutions, excessive red 
tape  and  lengthy  procedures  (Annex  12).  The 
IMD  World  Competitiveness  Centre  ranks 
Slovenia (15)  as  42nd  out  of  64  countries  in 
2023.  It  also  identifies  a  downward  trend  in 
business  and  government  efficiency  since 
2019.  Furthermore,  an  outsized  role  of  state-
owned  enterprises  (ranging  from  tourism  to 
insurance  markets)  in  the  Slovenian  economy 
may  negatively  affect  competitiveness  and 
increase inefficiency (16). 

Equity markets remain underdeveloped as 
financing 
is  heavily  skewed  towards 
loans.  Based  on  the  European  Investment 
Fund (EIF) access to finance index (17), Slovenia 
remains  one  of  the  weakest  performers, 
having  a  very  low  ratio  of  venture  capital 
investment  to  GDP  (Annex  12).  Furthermore, 
institutional  investors  only  play  a  limited  role 
in  the  market.  There  appears  to  be  a  lack  of 
mechanisms  to  transfer  private  savings  and 
foreign  investments  into  the  development  of 
innovative,  fast-growing  firms  that  normally 
have  difficulties  in  applying  for  bank  funding. 
The  stock  market  has  seen  very  few,  small 
initial  public  offerings  and  an  alternative 
market  is  planned  but  has  yet  to  be  created. 
Lack  of  venture  capital  investment  and  low 
R&D  expenditure  in  the  public  sector  hinder 
Slovenia’s 
competitiveness  and  have  a 
negative  impact  on  its  performance  on  the 
(Annex  11).  These 
Innovation  Scoreboard 
deficits 
the 
affecting 
negatively 
are 
competitiveness  of  the  economy,  as  well  as 
medium-  and  long-term  prospects  for  foreign 
direct investments and growth.  

(13)  Institute for Management Development, 2023, IMD 

World Competitiveness Yearbook 2023 – Country Profile 
Slovenia, Lausanne. 

(15)  Institute for Management Development 2023 

https://worldcompetitiveness.imd.org/  

(16)  OECD Economic Survey, Slovenia 2022. 

(14)  Institute of Macroeconomic Analysis and Development 

(17)  EIF Working Paper 2023/92, The 2022 EIF SME Access 

(IMAD), 2019, Economic Issues 2019, Ljubljana. 

to Finance Index August 2023 update. 

13 

 
 
 
Climate  change  adaptation  is  of  key 
importance.  Slovenia  is  highly  vulnerable  to 
climate  change-related  weather  events,  with 
floods  posing  the  greatest  risk  (see  Annex  5). 
This was further confirmed by the catastrophic 
floods of August 2023, which affected a large 
part  of  Slovenia’s 
territory  and  caused 
unprecedented  economic  damage.  Green 
infrastructure  and  nature-based  solutions  are 
key  to  mitigating  in  particular  the  impact  of 
floods while preserving the free flow of rivers 
and  aquatic  ecosystems  (see  Annexes  6  and 
17).  Furthermore,  there  are  still  climate 
change-related institutional weaknesses.  

challenges 

There  are 
to  achieving 
sustainable  water  management  and 
biodiversity  protection.  The  estimated 
annual  investment  gap  for  sustainable  water 
management,  as  well  as  for  biodiversity  and 
ecosystems remains wide (see Annex  6). With 
the  increasing  pressures  on  water  and  nature 
from  climate  change-related  weather  events 
and  intensive  agriculture,  it  will  be  crucial  to 
ensure a more sustainable and efficient use of 
water and other natural resources. 

lagging 

The  take-up  of  sustainable  transport  is 
still 
in  Slovenia.  The  high 
dependence  on  private  cars  and  the  still 
lagging  take-up  of  sustainable  modes  of 
transport have a negative impact on Slovenia’s 
ability  to  help  achieve  the  EU  target  of 
reducing  final  energy  consumption  by  11.7% 
by  2030.  Car  trips  accounted  for  90%  of 
distances  travelled  in  Slovenia  in  2021  (see 
Annexes  6  and  17).  Despite  many  large 
railway investments being in progress, there is 
still  further  room  to  increase  the  take-up  of 
public  transport  by  improving  the  frequency, 
reliability,  accessibility  and  availability  of 
national and local public rail and bus transport, 
particularly  with  soft  measures  such  as  the 
coordination of timetables and single ticketing.  

Accelerating the green transition 
to bolster competitiveness  

There is a surge in solar photovoltaics in 
Slovenia, but the uptake of wind remains 
sluggish. In 2023, the total renewable energy 
capacity  in  Slovenia  increased  by  23%  year-
on-year, continuing the positive trend recorded 
in  previous  years.  In  2023  alone,  408 MW  of 
new  solar  photovoltaics  were  deployed  in 
Slovenia, bringing the total solar photovoltaics 
installed  capacity  to  over  1  GW.  At  the  same 
time,  wind  capacity  has  remained  sluggish 
with  a  total  installed  capacity  of  only  3 MW 
(see  Annex  7),  while  estimates  show  a 
potential  deployment  of  up  to  6-15  GW (18). 
Therefore,  further  efforts,  e.g.  removing  the 
remaining  bottlenecks  in  permitting  processes 
for wind installations, are required to reap the 
full  potential  of  renewable  energy  sources  in 
Slovenia  in  line  with  the  2030  EU  renewable 
energy  targets.  Strengthening  the  electricity 
grid  beyond  the  measures  listed  in  the  RRP 
and  deploying  electricity  storage  continues  to 
be  crucially  important  for  the  continuous 
energy 
connection 
installations and the balancing of the system.  

renewable 

new 

of 

shocks  and 

High  dependence  on  fossil  fuels  exposes 
to 
Slovenia’s  economy  and  people 
potential  price 
supply 
constraints.  Slovenia  has  taken  steps  to 
reduce  dependence  on  Russian  pipeline  gas 
imports by concluding supply agreements with 
Algeria.  Addressing  the  structural  dependence 
requires 
on  gas  and  other  fossil  fuels 
accelerating 
the 
economy. Increased deployment of renewables 
and  rolling  out  energy  efficiency  measures 
across  all  sectors  of  the  economy  beyond 
those  already  planned  in  the  RRP  are  key  to 
bringing  down  energy  costs.  Implementing 
energy  efficiency  measures  in  the  building 
sector  remains  a  priority  in  order  to  reduce 
energy demand and decrease the dependence 
on fossil fuels. 

transition  of 

the  green 

(18)  https://www.energetika-

portal.si/podrocja/energetika/projekt-res-slovenia/  

14 

 
 
Box 4: 

The mid-term review of cohesion policy funding for Slovenia 

• 

• 

The mid-term review of the cohesion policy funds is an opportunity to assess cohesion 
policy programmes and to tackle emerging needs and challenges in EU Member States 
and their regions. Member States are reviewing each programme taking into account, among 
other things, the challenges identified in the European Semester, including in the 2024  country-
specific recommendations. This review forms the basis for a proposal by the Member State for 
the definitive allocation of 15% of EU funding included in each programme.   

Slovenia  has  made  progress  in  implementing  cohesion  policy  programmes  and  the  European 
Pillar of Social Rights, but challenges remain as outlined in this report, including  in Annexes 14 
and 17. In particular, Slovenia continues to register pronounced regional disparities between the 
capital region and the other parts of the country. Against this background, it is still important to 
continue implementing planned priorities, paying particular attention to: (i) flood protection and 
climate  mitigation  measures,  prioritising  nature-based  solutions;  (ii)  sustainable  transport  to 
reduce the heavy reliance on passenger cars for commuting; (iii) territorial just transition plans, 
supporting  the  coal  phase-out,  and  a  strengthening  of  administrative  capacity  to  manage 
cohesion  funds;  (iv)  public-private  R&D  partnerships  to  increase  labour  productivity;  (v)  adult 
learning, including in digital and green skills, and active labour market policies, i.e.  measures to 
help  vulnerable  groups  find  or stay  in  work;  (vi)  modernising  and  digitalising  social  and labour 
market  services,  (vii)  stepping  up  the  integration  of  migrant  workers  in  the  labour  market  and 
society;  and  (viii)  accelerating  deinstitutionalisation  and  development  of  quality,  adequate  and 
affordable  community-based  social  services,  in  particular  long-term  care,  to  increase  social 
inclusion. 

Slovenia  could  also  benefit  from  the  opportunities  provided  by  the  Strategic  Technologies  for 
Europe Platform (STEP) initiative (19) to boost investments in the developing and manufacturing 
of clean and resource-efficient technologies, particularly in the renewable energies and heating 
sector.  Addressing  shortages  of  skills  and  labour  are  equally  instrumental  for  the  long-term 
competitiveness and sustainability of Slovenian businesses. 

(19)  Regulation (EU) 2024/795) 

15 

 
 
 
KEY FINDINGS 

With  its  wide  policy  scope,  Slovenia’s 
(RRP) 
Recovery  and  Resilience  Plan 
includes measures to address a series of 
structural  challenges,  in  synergy  with 
other  EU  funds,  including  cohesion  policy 
funds by: 

installations 

•  Speeding  up  the  roll-out  of  renewable 
boosting 
and 
energy 
investments 
in  the  green  and  digital 
transitions,  including  in  digital  and  green 
skills  to  align  the  education  system  with 
labour market needs; 

•  Speeding 

up 

planning  and 
the 
implementation of flood protection and 
flood prevention and the response to other 
natural disasters; 

•  Removing 

administrative 

and 
increasing 
and 
digitalisation, 
in  the  public  procurement 

regulatory  barriers  and 
professionalisation, 
competition 
system;  

•  Strengthening 

its  healthcare, 

long-
term  care  and  pensions  system  with 
relevant reforms. 

of 

implementation 

The 
Slovenia’s 
recovery  and  resilience  plan  is  facing 
increasing  challenges.  Renewed  efforts  are 
key for a successful implementation of all the 
measures of Slovenia’s recovery and resilience 
plan by August 2026. 

Beyond  the  reforms  and  investments  in 
the RRP and cohesion policy programmes, 
Slovenia would benefit from: 

•  Pursuing  policies  that  support  long-
term fiscal sustainability by shifting the 
tax  burden  from  labour  towards  more 
growth-friendly  sources  and ensuring  the 

16 

sustainability  of 
the  social  protection 
system beyond measures taken in the RRP; 

•  Improving  the  efficiency  of  public 
investment, 
including  by  carrying  out 
spending  reviews  to  prioritise  expenditure 
and  address  new 
challenges, 
fiscal 
especially 
in  areas  where  costs  are 
expected  to  mount  due  to  reforms  or 
ageing;  

•  Taking  measures  to  further  encourage 
private  investment,  including  in  housing 
in 
research  and 
innovation;  

large  urban  areas, 

•  Improving  the  conditions  for  venture 
institutional 
capital 
investment  and 
investors,  and  participation 
in  financial 
markets; 

•  Taking further measures to ensure the 
labour  by 
availability  of  skilled 
addressing  skills  shortages 
that  are 
prevalent in healthcare and long-term care, 
as well as in other productive sectors of the 
economy – this could be done by: (i) further 
encouraging  more  people  to  work  or  look 
for work; (ii)  transferring workers from low 
to 
sectors; 
(iii) streamlining  the  processes  for  issuing 
work  permits  for  non-EU  workers;  and 
(iv) strengthening  basic  and  digital  skills, 
particularly those of young people including 
by reinforcing basic skills in school curricula 
as part of the ongoing curricula reform; 

productivity 

high 

•  Further  strengthening  the  electricity 
grid  and  deploying  storage  installations to 
enable continuous integration of renewable 
energy sources; 

•  Strengthening  Slovenia’s  resilience  to 
climate  change-related  weather  events, 
while 
water 
management and biodiversity protection; 

sustainable 

ensuring 

 
 
•  Significantly  increasing  the  use  of 
public  transport,  building  on  measures 
such as single ticketing and coordination of 
timetables.  

17 

 
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 – implementation 

A4.  Other EU instruments for recovery and growth 

A5.  Resilience 

Environmental sustainability 

A6.  European Green Deal 

A7.  Energy transition and competitiveness 

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 

LIST OF TABLES 

A2.1. 
A3.1. 

Summary table on 2019-2023 CSRs 
Key facts of the Slovenian RRP 

21 

23 

23 

25 

29 

31 

34 

36 

36 

40 

45 

48 

48 

50 

52 

54 

59 

61 

61 

64 

66 

68 

72 

72 

75 

77 

78 

26 
29 

 
 
 
Support from EU instruments in Slovenia 
Resilience indices across dimensions for Slovenia and the EU-27 
Indicators tracking progress on the European Green Deal from a macroeconomic perspective 
Key Energy Indicators 
Key indicators for a fair transition in Slovenia 
Circularity indicators 

A3.2.  Measures in Slovenia's RRP 
A4.1. 
A5.1. 
A6.1. 
A7.1. 
A8.1. 
A9.1. 
A10.1.  Key Digital Decade targets monitored by the Digital Economy and Society Index indicators 
A11.1.  Key innovation indicators 
A12.1. 
Industry and the Single Market 
A13.1.  Public administration indicators 
A14.1.  Social Scoreboard for Slovenia 
A14.2.  Situation of Slovenia 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 in Slovenia 
A18.1.  Financial soundness indicators 
A19.1.  Taxation indicators 
A20.1.  Key economic and financial indicators 
A21.1  Debt sustainability analysis – Slovenia  
A21.2  Heat map of fiscal sustainability risks – Slovenia  

LIST OF GRAPHS 

Progress towards the SDGs in Slovenia 
Slovenia’s progress on the 2019-2023 CSRs (2024 European Semester) 
Total grants disbursed under the RRF 
Total loans disbursed under the RRF 
Distribution of cohesion policy funding across policy objectives in Slovenia 
Distribution of RRF funding by pillar in Slovenia 
Greenhouse gas emissions from the effort sharing sectors in Mt CO2eq, 2005-2022 
Changes in livestock density and organic farming 
Environmental investment gap, annual average 
Slovenia´s energy retail prices for households and industry & service 
Trends in electricity prices for non-household consumers (EU and foreign partners) 
Slovenia's installed renewable capacity (left) and electricity generation mix (right) 
Fair transition challenges in Slovenia 
Job vacancy rate in transforming sectors and mining and quarrying 
ETS emissions by sector since 2013 
Treatment of municipal waste 

A1.1. 
A2.1. 
A3.1. 
A3.2. 
A4.1. 
A4.2. 
A6.1. 
A6.2. 
A6.3. 
A7.1. 
A7.2. 
A7.3. 
A8.1. 
A8.2. 
A9.1. 
A9.2. 
A12.1.  Real labour productivity in industry per hour worked 
A12.2.  Labour productivity and unit labour costs at industry level 
A13.1.  Government effectiveness 
A15.1.  Underachievement rates by field, PISA 2012, 2018 and 2022 
A16.1.  Life expectancy at birth, years 
A16.2.  Projected increase in public expenditure on healthcare over 2024-2070 
A19.1.  Tax revenues for different tax types as % of total taxation 
A19.2.  Tax wedge for single and second earners as a % of total labour costs, 2023 

LIST OF MAPS 

A17.1.  Slovenia, NUTS-3: GDP per capita growth 2013-2022 

22 

30 
33 
34 
39 
44 
46 
49 
51 
52 
58 
60 
61 
62 
65 
67 
69 
73 
75 
77 
80 
80 

23 
25 
30 
30 
32 
32 
36 
38 
38 
40 
41 
41 
45 
46 
48 
49 
54 
55 
59 
64 
66 
66 
76 
76 

68 

 
 
 
 
 
 
CROSS-CUTTING INDICATORS 
ANNEX 1: SUSTAINABLE DEVELOPMENT GOALS 

This  Annex  assesses  Slovenia’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. 

related 

Slovenia  is  improving  on  most  of  the  SDG 
environmental 
indicators 
sustainability (SDGs 2, 6, 7, 9, 11, 12, 13, 15), 
but it needs to catch up with the EU average 
on some (SDGs 2, 12). While Slovenia has made 
some  progress  in  increasing  its  capacity  for 

to 

final 

(RRP) 

energy 

in  gross 

is  expected 
energy 

electricity  generation  from  renewable  energy 
sources  and  decarbonising  its  heating  sector  (see 
Annex  7),  it  continued  in  2022  to  use  the 
mechanism of statistical transfer to reach 25% of 
renewable 
energy 
consumption  (SDG  7).  The  recovery  and  resilience 
plan 
to  boost  Slovenia’s 
capacity  by  addressing 
renewable 
regulatory  challenges  (see  Annex  7).  Slovenia  has 
made  some  progress  on  SDG 13  (Climate  action) 
over the last few years, but it still needs to catch 
up  with  the  EU  average.  In  particular,  Slovenia 
reduced  the  net  greenhouse  gas  emissions  from 
9.0  tonnes  per  capita  in  2017  to  7.3  tonnes  per 
capita in 2022, which now corresponds with the EU 
average value for 2022. Despite improvements on 
industry,  innovation  and  infrastructure  (SDG 9), 
Slovenia  still  needs  to  catch  up  with  the  EU 
average  on  certain  indicators.  In  particular,  the 
share of buses and trains in passenger transport is 
very low (10.0% in 2021, compared to EU average 
of  13.7%).  The  Slovenian  RRP  contains  several 
measures  aimed  at  increasing  the  currently  low 

Graph A1.1: Progress towards the SDGs in Slovenia 

For detailed datasets on the various SDGs, see the annual Eurostat report ‘Sustainable development in the European Union’; for 
details on extensive country-specific data on the short-term progress of Member States: Key findings – Sustainable development 
indicators - Eurostat (europa.eu). A high status does not mean that a country is close to reaching a specific SDG, but signals that it 
is doing better than the EU on average. The progress score is an absolute measure based on the indicator trends over the past 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 25 April 2024. Data refer mainly to the period 2017-2022 or 2018-2023. Data on SDGs may 
vary across the report and its annexes due to different cut-off dates. 

23 

 
 
 
 
 
 
 
use of public transport and significantly improving 
the country’s railway infrastructure, which will help 
the  country  tackle  this  challenge.  In  terms  of  life 
below  water  (SDG 14),  the  share  of  marine 
protected areas in Slovenia (5% in 2021) is visibly 
lower than the EU average (12.1% in 2021). 

Slovenia  performs  well  or  is  improving  on 
some  SDG  indicators  related  to  fairness 
(SDGs 1, 4, 5, 7, 8, 10) but needs to catch up 
with  EU  average  on  access  to  healthcare 
(SDG 3).  Slovenia  performs  well  on  poverty  and 
basic needs (SDG 1) and compared to EU average 
(21.6% in 2022) has a low share of people at risk 
of poverty  or social  exclusion (13.3% in 2022). In 
addition,  Slovenia  has  improved  on  the  fairness-
related gender equality indicator (SDG 5) but it still 
needs to catch up with EU average. The quality of 
education (SDG 4) is above the EU  average but is 
getting worse. According to the PISA 2022 survey, 
about one quarter of students from Slovenia lacks 
the  minimum  level  of  proficiency  in  mathematics 
and  reading,  and  the  rate  of  underachieving 
students  rose  significantly  (by  8.2%)  in  both 
mathematics  and  reading  between  2018  and 
2022. Despite good progress, Slovenia is only just 
above the EU average when it comes to affordable 
and clean energy (SDG 7). On access to healthcare 
(SDG 3),  self-reported  unmet  needs  for  medical 
care are higher than in the EU (3.7% of population 
aged 16 or over, in 2022; EU average: 2.2%). The 
Slovenian RRP contains several measures aimed at 
addressing this challenge effectively, including key 
reforms in long-term care and healthcare. 

internet 

connection.  The 

Slovenia  performs  well  on  most  SDG 
indicators related to productivity (SDGs 4, 8, 
9)  but  still  needs  to  catch  up  with  the  EU 
average  for  SDG 9.  Slovenia  has  made 
significant  progress  on  sustainable  infrastructure 
(SDG 9) regarding the share of households with a 
high-speed 
share 
increased  from  50.4%  in 2015  to  65.5% in  2020 
and  75.5%  in  2022.  On  digital  skills  (SDG 4),  the 
share  of  adults  with  at least  basic digital  skills is 
still  below  the  EU  average  (46.7%  in  2023;  EU 
average:  55.6%)  and  Slovenia  needs  to  catch  up. 
The  share  of  adults  aged  16  to  74  with  at  least 
basic digital skills has fallen over time from 49.7% 
(in  2021)  to  46.7%  (in  2023).  This  means  that 
more  than  half  of  the  Slovenian  population  aged 
16  to  74  lacks  basic  digital  skills.  The  Slovenian 
RRP  will  help  digitalise  the  country’s  public  and 
private  sector  and  boost  digital  skills.  The 

measures  under  the  RRP  will  ensure  that  further 
progress is made on these SDGs. 

Slovenia  performs  well  on  SDG  indicators 
related  to  macroeconomic  stability  (SDGs  8, 
16,  17).  Slovenia  performs  well  on  indicators 
measuring  employment 
(SDG 8).  Notably,  the 
percentage  of  young  people  not  in  employment, 
education  or  training  is  low  compared  to  the  EU 
average  (7.8%  in  2023;  EU  average:  11.2%)  and 
the  long-term  unemployment  rate  is  also  below 
the EU average (1.4% in 2022; EU average: 2.1%). 
On SDG 16 (Peace, justice and strong institutions), 
Slovenia is catching up with the EU average. Based 
on recent data, the perceived independence of the 
justice system in Slovenia is now for the first time 
as  high  as  the  EU  average  (in  2023,  53%  of 
Slovenians  rated  it  as  very  or  fairly  good;  EU 
average:  53%).  Slovenia’s  real  GDP  per  capita  is 
still 
lagging  behind  the  EU  average  (SDG 8) 
(EUR 22 090 in 2023; EU average: EUR 28 940). It 
also had a lower investment share of GDP (SDG 8) 
than  the  EU  average  (21.6%  of  GDP  in  2022;  EU 
average:  22.7%).  A  particular  challenge  for 
Slovenia  is  with  the  long-term  sustainability  of 
public  finances,  given  its  ageing  population  and 
pressures  on  public  spending  from  pensions, 
healthcare and long-term care. The Slovenian RRP 
includes measures to address the impact of long-
term  care  on  fiscal  sustainability.  With  regard  to 
‘Partnership  for  goals’ 
is 
progressing  well  and  performing  above  the  EU 
average. 

(SDG 17),  Slovenia 

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 

The Commission has assessed the 2019-2023 
country-specific  recommendations  (CSRs) (20) 
addressed  to  Slovenia  as  part  of  the 
European  Semester.  These  recommendations 
concern  a  wide  range  of  policy  areas  that  are 
related to  14  of  the  17  Sustainable Development 
Goals  (see  Annexes  1  and  3). The  assessment 
considers  the  policy  action  taken  by  Slovenia  to 
date and  the  commitments  in  its  recovery  and 
resilience  plan  (RRP) (21).  At  this  stage  of  RRP 
implementation,  64%  of  the  CSRs  focusing  on 
structural  issues  from  2019-2023  have  recorded 
at  least  ‘some  progress’,  while  18%  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. 

Graph A2.1: Slovenia’s progress on the 2019-2023 
CSRs (2024 European Semester) 

Source: European Commission. 

(20)  2023 CSRs: EUR-Lex - 32023H0901(24) - EN - EUR-Lex 

(europa.eu) 

2022 CSRs: EUR-Lex - 32022H0901(24) - EN - EUR-Lex 

(europa.eu) 

      2021 CSRs: EUR-Lex - 32021H0729(25) - EN - EUR-Lex 

(europa.eu) 
2020 CSRs: EUR-Lex - 32020H0826(24) - EN - EUR-Lex 
(europa.eu) 
2019 CSRs: EUR-Lex - 32019H0905(24) - EN - EUR-Lex 
(europa.eu) 

(21)  Member States were asked to effectively address in their 
RRPs all or a significant subset of the relevant country-
specific recommendations issued by the Council. 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 Progress2%Limited Progress18%Some Progress64%Substantial Progress7%Full Implementation9% 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Table A2.1:  Summary table on 2019-2023 CSRs 

(Continued on the next page) 

26 

SloveniaAssessment in May 2024RRP coverage of CSRs until 2026Relevant SDGs2019 CSR 1Limited progressAchieve the medium-term budgetary objective in 2020.No longer relevantNot applicableSDG 8, 16Adopt and implement reforms in healthcareLimited ProgressRelevant RRP measures planned as of 2024SDG 3and long-term care that ensure quality, accessibility and long-term fiscal sustainability.Some ProgressRelevant RRP measures being implemented since 2021.SDG 3Ensurethelong-termsustainabilityandadequacyofthepensionsystem,includingbyadjustingthestatutoryretirementagerestrictingearly retirement and other forms of early exit from the labour market.Limited ProgressRelevant RRP measures planned as of 2024.SDG 8Increasetheemployabilityoflow-skilledandolderworkersbyimprovinglabourmarketrelevanceofeducationandtraining,lifelonglearningandactivationmeasures,includingthroughbetterdigitalliteracy.Some ProgressNot applicableSDG 4, 82019 CSR 2Some progressSupport the development of equity markets.Some ProgressRelevant RRP measures being implemented as of 2021.SDG 8, 9Improve the business environment by reducing regulatory restrictions and administrative burden.Some ProgressRelevant RRP being implemented as of 2021.SDG 8, 9Improve competition, professionalisation and independent oversight in public procurement.Some ProgressRelevant RRP measures being implemented as of 2021.SDG 9Carry out privatisations in line with the existing plans.Some ProgressNot applicable SDG 92019 CSR 3Some progressFocus investment-related economic policy on research and innovation,Some ProgressRelevant RRP measures planned as of 2022.SDG 9, 10, 11low carbon and energy transition,Some ProgressRelevant RRP measures planned as of 2022.SDG 7, 9, 10, 11, 13sustainable transport, in particular rail, and Some ProgressRelevant RRP measures planned as of 2022.SDG 10, 11environmental infrastructure, taking into account regional disparities.Some ProgressRelevant RRP measures planned as of 2022.SDG 6, 10, 11, 12, 152020 CSR 1Some progressTakeallnecessarymeasures,inlinewiththegeneralescapeclauseoftheStabilityandGrowthPact,toeffectivelyaddresstheCOVID-19pandemic,sustaintheeconomyandsupporttheensuingrecovery.Wheneconomicconditionsallow,pursuefiscalpoliciesaimedatachievingprudentmedium-termfiscalpositionsandensuring debt sustainability, while enhancing investment. No longer relevantNot applicableSDG 8, 16Ensuretheresilienceofthehealthandlong-termcaresystem,includingbyprovidingtheadequatesupplyofcriticalmedicalprod-ucts and addressing the shortage of health workers.Some ProgressRelevant RRP measures being implemented as of 2021.SDG 32020 CSR 2Substantial progressMitigate the social and employment impact of the COVID-19 crisis, including by providing adequate income replacement and social protection, Substantial ProgressRelevant RRP measures planned as of 2021.SDG 1, 2, 8, 10enhancing short-time work schemes and through flexible working arrangements. Substantial ProgressRelevant RRP measures planned as of 2024.SDG 8Ensure that these measures provide adequate protection for non-standard workers.Some ProgressRelevant RRP measures planned as of 2025.SDG 1, 2, 8, 102020 CSR 3Some progressContinue to swiftly implement measures to provide liquidity and financing to businesses and households and Full ImplementationRelevant RRP measures planned as of 2022.SDG 8, 9reduce administrative burden. Some ProgressRelevant RRP measures being implemented as of 2021.SDG 8, 9Front-load mature public investment projects and Substantial ProgressRelevant RRP measures planned as of 2023.SDG 8, 16promote private investment to support the economic recovery. Some ProgressRelevant RRP measures being implemented as of 2023SDG 8, 9Focusinvestmentonthegreenanddigitaltransition,inparticularonclean and efficient production and use of energy, Some ProgressRelevant RRP measures planned as of 2022.SDG 7, 9, 13environmental infrastructure,Some ProgressRelevant RRP measures planned as of 2022.SDG 6, 12, 15sustainable transport,Some ProgressRelevant RRP measures planned as of 2022.SDG 11research and innovation, and Some ProgressRelevant RRP measures planned as of 2021.SDG 9the rollout of the 5G network. Some ProgressRelevant RRP measures planned as of 2022.SDG 9Promote digital capacities of businesses, andSome ProgressRelevant RRP measures being implemented as of 2021.SDG 9 
 
 
 
  
 
Table (continued) 

(Continued on the next page) 

27 

 strengthen digital skills, Some ProgressRelevant RRP measures planned as of 2022.SDG 4e-commerce and Limited ProgressRelevant RRP measures planned as of 2021.SDG 9e-health.Limited ProgressRelevant RRP measures planned as of 2024.SDG 32021 CSR 1No longer relevantIn2022,maintainasupportivefiscalstance,includingtheimpulseprovidedbytheRecoveryandResilienceFacility,andpreservenationally financed investment.No longer relevantNot applicableSDG 8, 16Wheneconomicconditionsallow,pursueafiscalpolicyaimedatachievingprudentmedium-termfiscalpositionsandensuringfiscalsustainability in the medium term. No longer relevantNot applicableSDG 8, 16At the same time, enhance investment to boost growth potential.Payparticularattentiontothecompositionofpublicfinances,onboththerevenueandexpendituresidesofthebudget,andtothequalityofbudgetarymeasuresinordertoensureasustainableandinclusiverecovery.Prioritisesustainableandgrowth-enhancinginvestment,inparticularinvestmentsupportingthegreenanddigitaltransition. No longer relevantNot applicableSDG 8, 16Giveprioritytofiscalstructuralreformsthatwillhelpprovidefinancingforpublicpolicyprioritiesandcontributetothelong-termsustainabilityofpublicfinances,including,whererelevant,bystrengtheningthecoverage,adequacy,andsustainabilityofhealthand social protection systems for all.No longer relevantNot applicableSDG 8, 162022 CSR 1Some ProgressIn2023,ensurethatthegrowthofnationally-financedcurrentexpenditureisinlinewithanoverallneutralpolicystance,takingintoaccountcontinuedtemporaryandtargetedsupporttohouseholdsandfirmsmostvulnerabletoenergypricehikesandtopeoplefleeingUkraine.Standreadytoadjustcurrentspendingtotheevolving situation.Full Implementation Not applicableSDG 8, 16Expandpublicinvestmentforthegreenanddigitaltransitionandforenergysecurity,includingbymakinguseoftheRRF,RePowerEUand other EU funds.Some Progress Not applicableSDG 8, 16Fortheperiodbeyond2023,pursueafiscalpolicyaimedatachieving prudent medium-term fiscal positions.Full Implementation Not applicableSDG 8, 16Ensure the long-term fiscal sustainability of the healthcare andLimited Progress Relevant RRP measures planned as of 2024SDG 3long-term care systems.Some ProgressRelevant RRP measures planned as of 2023 SDG 3Introducecompensatingmeasurestofinalisetheshiftfromlabourtaxes,includingbyrebalancingtowardsmoregreenandgrowth-friendly taxes.Limited ProgressSDG 8, 10, 122022 CSR 2Proceedwiththeimplementationofitsrecoveryandresilienceplan,inlinewiththemilestonesandtargetsincludedintheCouncilImplementing Decision of 28 July 2021.Submitthe2021-2027cohesionpolicyprogrammingdocumentswithaviewtofinalisingtheirnegotiationswiththeCommissionandsubsequently starting their implementation.2022 CSR 3Some ProgressDiversifyimportsoffossilfuelsandreduceoverallrelianceonfossilfuelsSome ProgressRelevant RRP measures planned as of 2022.SDG 7, 9, 13byacceleratingthedeploymentofrenewables,inparticularbyfurther streamlining permitting procedures,Some ProgressRelevant RRP measures planned as of 2022.SDG 7, 8, 9, 13and strengthening of the electricity distribution network.Limited ProgressRelevant RRP measures planned as of 2022.SDG 7, 9, 13Increaseimplementationofenergyefficiencymeasures,notablyinthe building sector,Some ProgressRelevant RRP measures planned as of 2022.SDG 7electrification of the transport sector,Some ProgressRelevant RRP measures planned as of 2022.SDG 11and by ensuring that energy infrastructure and interconnections have sufficient capacity.Some ProgressSDG 7, 9, 132023 CSR 1Some ProgressWinddowntheenergysupportmeasuresinforcebytheendof2023usingtherelatedsavingstoreducethegovernmentdeficit.Shouldrenewedenergypriceincreasesnecessitatesupportmeasures,ensurethatthesearetargetedatprotectingvulnerablehouseholdsandfirms,fiscallyaffordable,andpreserveincentivesforenergysavings.Substantial Progress Not applicableSDG 8, 16Ensureprudentfiscalpolicy,inparticularbylimitingthenominalincreaseinnationallyfinancednetprimaryexpenditurein2024tonot more than 5.5%.Some Progress Not applicableSDG 8, 16PreservenationallyfinancedpublicinvestmentandensuretheeffectiveabsorptionofRRFgrantsandotherEUfunds,inparticularto foster the green and digital transitions.Full Implementation Not applicableSDG 8, 16RRP 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. 
 
 
  
 
Table (continued) 

Note:  
* See footnote (21) 
** 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 requestes submitted and positively assessed by the European 
Commission. 
Source: European Commission 

28 

Fortheperiodbeyond2024,continuetopursueamedium-termfiscalstrategyofgradualandsustainableconsolidation,combinedwithinvestmentsandreformsconducivetohighersustainablegrowth, to achieve a prudent medium-term fiscal position.Full Implementation Not applicableSDG 8, 16Ensure the long-term fiscal sustainability of the healthcare andLimited progressRelevant RRP measures planned as of 2024SDG 3long-term care systemsSome progressRelevant RRP measures planned as of 2023 SDG 3Rebalancetaxrevenuestowardsmoregrowth-friendlyandsustainable sources.no progressNot applicableSDG 8, 10, 122023 CSR 2  Ensure an effective governance structure and strengthen theadministrativecapacitytoallowforaswiftandsteadyimplementationofitsrecoveryandresilienceplan.SwiftlyfinalisetheREPowerEUchapterwithaviewtorapidlystartingitsimplementation.Proceedwiththespeedyimplementationofcohesionpolicyprogrammes,inclosecomplementarityandsynergywith the recovery and resilience plan.2023 CSR 3Some ProgressContinueeffortstodiversifygasimportsandreduceoverallrelianceon fossil fuelSome ProgressRelevant RRP measures planned as of 2022.SDG 7, 9, 13byacceleratingthedeploymentofrenewables,inparticularbyfurther simplifying and shortening the permitting procedures, andSome ProgressRelevant RRP measures planned as of 2022.SDG 7, 8, 9, 13strengtheningtheelectricitygrid,aswellasimprovingitsmanagement, including through digitalisation.Limited progressRelevant RRP measures planned as of 2022.SDG 7, 9, 13Increasetheimplementationofenergyefficiencymeasures,inparticular in the building sector,Some ProgressRelevant RRP measures planned as of 2022.SDG 7promote the electrification of the transport sector, andSome ProgressRelevant RRP measures planned as of 2022.SDG 11stepuppolicyeffortsaimedattheprovisionandacquisitionofskillsand competences needed for the green transitionLimited progressRelevant RRP measures planned as of 2022.SDG 4RRP implementation is monitored through the assessment of RRP payment requests and analysis of the bi-annual reporting on the achievement of the milestones and targets, to be reflected in the country reports. Progress with the cohesion policy is monitored in the context of the Cohesion Policy of the European Union. 
 
 
 
 
 
 
 
 
 
  
 
 
ANNEX 3: RECOVERY AND RESILIENCE PLAN – IMPLEMENTATION 

This Annex provides a snapshot of Slovenia’s 
implementation of its recovery and resilience 
plan  (RRP),  past  the  mid-way  point  of  the 
Recovery  and  Resilience  Facility’s 
(RRF) 
lifetime.  The  RRF  has  proven  central  to  the  EU’s 
recovery  from  the  COVID-19  pandemic,  helping 
speed  up  the  twin  green  and  digital  transition, 
while  adapting  to  geopolitical  and  economic 
resilience 
developments, 
against  future  shocks.  The  RRF  is  also  helping 
implement the UN Sustainable Development Goals 
and 
country-specific 
recommendations (see Annex 2).   

strengthening 

address 

and 

the 

The  RRP  paves  the  way  for  disbursing  up  to 
EUR 1.6 billion in grants and EUR 1.1 billion in 
loans  under  the  RRF  over  the  2021-2026 
period,  representing  4.3%  of  Slovenia’s 
GDP (22).  As  of  mid-May  2024,  EUR 841 million 
has  been  disbursed  to  Slovenia  under  the  RRF, 
comprising 
grants  and 
EUR 310 million in loans. 

EUR 530 million 

in 

Slovenia still has EUR 1.8 billion available in 
grants  and  loans  from  the  RRF.  This  will  be 
disbursed  after  the  positive  assessment  of  the 
future fulfilment of the remaining 149 milestones 
the  Council 
included 
and 
Implementing  Decision  (CID) (24),  ahead  of  the 
2026 deadline established for the RRF.  

targets (23) 

in 

Slovenia’s  progress  in  implementing  its  plan 
is  recorded  in  the  Recovery  and  Resilience 
Scoreboard (25).  The 
scoreboard  gives  an 
overview  of  the  progress  made  in  implementing 
the  RRF  as  a  whole.  Graphs  A3.1  and  A3.2  show 
the  current  state  of  play  as  reflected  in  the 
scoreboard. 

Slovenia’s RRP includes a REPowerEU chapter 
to phase out its dependency on Russian fossil 

(22)  GDP information is based on 2023 data. Source: 

https://ec.europa.eu/economy_finance/recovery-and-
resilience-scoreboard/index.html?lang=en   

(23)  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. 

(24)  https://data.consilium.europa.eu/doc/document/ST-8390-

2022-INIT/en/pdf  

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

resilience-scoreboard/country_overview.html 

fuels,  diversify 
its  energy  supplies,  and 
produce  more  clean  energy  in  the  coming 
years.  To  kick-start  the  REPowerEU  chapter’s 
implementation, EUR 24,4 million was disbursed as 
pre-financing  on  13 December 2023.  This  helped 
launch  relevant  reforms  like  removing  regulatory 
barriers  to  the  deployment  of  renewable  energy 
installations. 

The  plan  has  a  strong  focus  on  the  green 
transition, dedicating 48.9% of the available 
funds  to  measures  that  support  climate 
objectives  and  20.0%  of  its  total  allocation 
to support the digital transition. It also retains 
a  strong  social  dimension  with  social  protection 
measures,  especially 
to  healthcare, 
pensions, and long-term care. 

related 

Table A3.1:  Key facts of the Slovenian RRP 

Source: RRF Scoreboard 

timely 

requests 

With  2  payment 
completed, 
Slovenia’s  implementation  of  its  RRP  is 
completion 
underway.  However, 
requires  increased  efforts.  The  Commission 
gave  a  positive  assessment  of  Slovenia’s  first 
payment  request,  taking  into  account  the  opinion 
of the Economic and Financial Committee. This led 
to  EUR  50  million  being  disbursed  in  financial 
support  on  20  April  2023 (26).  The  related  12 
milestones  covered  reforms  and  investments  in 
low-power processors and semiconductor chips as 
well  as  in  European  common  data  infrastructure 

(26)  When requested payments are disbursed, the pre-financing 
is cleared proportionally. The net amounts are quoted here.   

29 

Initial plan CID adoption date28 July 2021Scope Revised plan with REPowerEU chapterLast major revision17 October 2023Total allocation EUR 1,613 million in grants and EUR 1,072 million in loans (4.3% of 2023 GDP)Investments and reforms 50 investments and 36 reforms Total number of milestones and targets205Fulfilled milestones and targets56 (27.3% of total) 
 
 
 
   
 
 
 
 
and  services,  and  others  in  the  areas  of  digital 
transformation,  business  environment,  long-term 
care and audit and control.   

Table A3.2:  Measures in Slovenia's RRP 

assessed 

positively 

The most recent payment request, which the 
on 
Commission 
27 November 2023,  led  to  the  disbursement 
of EUR 536 million on 28 December 2023. The 
disbursement reflected the positive assessment of 
43 milestones and targets covering among others 
flood risk measures, the use of renewable energy 
sources  and 
transformation  of 
businesses, tourism and culture. 

the  digital 

Graph A3.1: Total grants disbursed under the RRF 

Source: FENIX 

Note: This graph displays the amount of grants, including pre-
financing, 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 

Graph A3.2: Total loans disbursed under the RRF 

Source: RRF Scoreboard 

As  of  15  May  2024,  Slovenia  is  working 
towards its third payment request. Table A3.2 
highlights  some  relevant  measures  achieved  so 
far,  and  some  that  will  be  implemented  before 
2026 to keep making Slovenia’s economy greener, 
more digital, inclusive, and resilient.  

30 

EUR 275.56million (17.1%)Total allocation: EUR 1613millionEUR 310.09million (28.9%)Total allocation: EUR 1072millionReforms and investments implemented• Strategy for the digital transformation of enterprises• Decree on Development Incentives for Tourism• Strengthening of the capital marketUpcoming reforms and investments• Upgrade of railway lines• Investments in flood safety infrastructures• Provision of public rental housing 
   
 
   
 
   
 
 
 
 
 
 
 
ANNEX 4: OTHER EU INSTRUMENTS FOR RECOVERY AND GROWTH 

EU funding instruments provide considerable 
resources for recovery and growth to the EU 
Member States. In addition to the EUR 2.7 billion 
of  Recovery  and  Resilience  Facility  (RRF)  funding 
described in Annex 3, EU cohesion policy funds (27) 
provide  EUR  3.2  billion  to  Slovenia  for  the  2021-
2027  period (28).  Support 
two 
instruments combined represents around 9.40% of 
the  country’s  2023  GDP,  compared  to  the  EU 
average  of  5.38%  of  GDP (29).  Cohesion  policy 
supports  regional  development,  economic,  social 
and  territorial  convergence  and  competitiveness 
through  long-term  investment  in  line  with  EU 
priorities and with national and regional strategies. 

these 

from 

in 

and 

research 

During  the  2014-2020  programming  period, 
cohesion  policy  funds  boosted  Slovenia's 
competitiveness, with  tangible achievements 
notably 
innovation, 
sustainable  transport  and  employment.  By 
the end of the eligibility period in December 2023, 
2014-2020  cohesion  policy  funds (30)  had  made 
EUR  3.3  billion  available  to  Slovenia (31),  of  which 
EUR  2.2  billion  has  been  disbursed  since  March 
2020,  when  the  COVID-19  pandemic  began (32). 
The REACT-EU programme has helped mitigate the 
impact  of 
through 
preferential  loans  to  SMEs  and  the  purchase  of 
medical equipment. The achievements of cohesion 
policy funds over the programming period include 
support  provided  to  R&I  and  the  promotion  of 
research  hubs  such  as  the  National  Institute  for 
institute  attracts 
Biotechnology 
researchers 
abroad, 
successfully  creating  the  link  between  research, 

the  pandemic, 

(NIB).  This 

including 

Slovenia 

from 

and 

(27)  In 2021-2027, cohesion policy funds include the Cohesion 
Fund, the European Regional Development Fund, the 
European Social Fund Plus and the Just Transition Fund. 

(28)  European territorial cooperation (ETC) programmes are 
excluded from the figure. In 2021-2027, the total 
investment, including national financing, amounts to EUR 4.5 
billion. 

(29)  RRF funding includes both grants and loans, where 

applicable. The EU average is calculated for cohesion policy 
funds excluding ETC programmes. GDP figures are based on 
Eurostat data for 2022. 

(30)  In 2014-2020, cohesion policy funds included the Cohesion 

Fund, the European Regional Development Fund, the 
European Social Fund and the Youth Employment Initiative. 
REACT-EU allocations are included but ETC programmes are 
excluded. 

(31)  In 2014-2020, the total investment, including national 

financing, amounted to EUR 4.1 billion.  

(32) Cut-off date: 14 May 2024. 

In 

transport 

network.  New 

business,  and  private  investment  (also  see  Annex 
11).  This  benchmark  research  hub  was  supported 
by  EUR  25.8  million  from  the  European  Regional 
Development  Fund 
the  area  of 
(ERDF). 
sustainable  transport  and  decarbonisation  of 
travel,  EUR  128.6 million from  the Cohesion  Fund 
(CF)  has  supported  the  upgrade  of  the  Maribor-
Šentilj  railway  line  which  is  part  the  of  trans-
European 
tracks, 
modernised  stations,  less  noise,  and  new  park  & 
ride  facilities make  it  a  more  attractive means  of 
transport,  therefore  promoting  the  modal  shift 
from  road  to  rail,  helping  reduce  greenhouse  gas 
(GHG)  emissions.  This  structural  green  transport 
investment  eases  the  daily  commuting  for  the 
regional  and 
cross-border  workforce  when 
travelling to Slovenia's second largest  city. During 
the  same  period,  almost  10 000  unemployed 
people,  of  which  more  than  half  were  long-term 
unemployed,  received  support  from  measures 
under  the  European  Social  Fund  (ESF)  for  active 
inclusion to boost their employability. 

In  the  current  programming  period  (2021-
2027),  cohesion  policy will  provide a  further 
boost  to  Slovenia’s  competitiveness,  to  the 
green  transition  and  to  social  cohesion, 
improving  the  living  and  working  conditions 
of  Slovenia’s  people.  In  2021-2027,  the  ERDF 
and  CF  are  investing  EUR  2.1  billion  in  the  green 
transition,  the  largest  single  support  heading. 
Crucially, a portion of this funding will be spent on 
climate  mitigation  measures, 
in  particular  to 
provide flood-protection installations following the 
devastating  floods  of  August  2023.  EUR  109 
million  of  ERDF  support  has  been  earmarked  for 
new installations in the Savinja, Drava, and Vipava 
river  basins  alongside  complementary  support 
from  the  recovery  and  resilience  plan  (RRP)  and 
national  funds.  These  new  installations  are  being 
provided  based  on  a  fully  revised  national  flood-
protection  plan  for  these  three  river  basins,  to 
protect  9 000 people  and 4 700  hectares  of  land. 
In  the  area  of  sustainable  urban  transport, 
cohesion  policy  supports  alternative infrastructure 
for  a  door-to-door  modal  shift  away  from 
passenger  cars  to  reduce  GHG  emissions.  This  is 
implementing 
achieved,  for  example,  through 
digital  public  transport  optimisation  systems, 
providing quality separate bike lanes and curtailing 
road  traffic  in  inner  cities.  A  total  of  698 000 
passengers per year will benefit from modernised 
public transport and 1.1 million users per year will 
be able to use new cycling infrastructure. The Just 
Transition Fund will help ease the implementation 

31 

 
 
 
 
railway line to and from Maribor, Slovenia’s second 
largest  city.  The  contribution  of  cohesion  policy 
and the RRP funding by different policy objectives 
is illustrated by Graphs A4.1 and A4.2. 

Graph A4.2: Distribution of RRF funding by pillar in 
Slovenia 

(1) Each RRP measure helps achieve the aims of two of the 
six policy pillars of the RRF. The primary contribution is shown 
in the outer circle while the secondary contribution is shown in 
the inner circle. Each contribution represents 100% of the RRF 
funds. Therefore, the total contribution to all pillars displayed 
on this chart amounts to 200% of the RRF funds allocated to 
Slovenia. 
Source: European Commission 

The Technical Support Instrument (TSI) helps 
Slovenia  invest  in  its  public  administration 
and create a better enabling environment for 
EU  and  national  investment.  The  TSI  has 
funded  projects 
to  design  and 
in  Slovenia 
implement growth-enhancing reforms since 2016. 
The support provided in 2023 included the review 
the  Slovenian  Industrial  Strategy  2021-2030;  the 
implementation  of  the  economic,  social  and 
governance  risk  management  framework  for  the 
financial  sector;  and  the  improvement  of  the 
capacities  to  prevent  and  manage  wildfires.  The 
TSI is also helping Slovenia to increase its overall 
capacity  to  implement  the  RRP  by  integrating  the 
‘do  no  significant  harm’  principle  into  public 
funding  programmes,  as  well  as  by  improving 
mechanisms  for  the  monitoring,  reporting  and 
implementing of the RRP. 

Slovenia  also  receives  funding  from  several  other 
EU  instruments,  including  the  ones  presented  in 
Table A4.1. 

of  the  Territorial  Just  Transition  Plans,  including 
coal phase-out by 2033, by promoting sustainable 
energy  and  energy  restructuring,  diversifying  the 
local economy in the two coal regions, and training 
and  reskilling  workers.  These  measures  will  help 
people  better  overcome  the  challenges  of  the 
green  and  digital  transition.  The  ESF+  will  help 
boost  skills  development  in  the  labour  market, 
including lifelong learning, with a budget of around 
EUR  207  million.  The  key  areas  of  ESF+  support 
will  include  the  strengthening  of  a  wide  range  of 
competences of the adult population especially the 
most vulnerable groups, including digital and green 
skills. With this work, cohesion policy substantially 
contributes  to  achieving  the  UN  Sustainable 
Development  Goals 
in 
innovation, 
particular 
infrastructure), SDG 8 (Decent work and economic 
growth) and SDG 7 (Affordable and clean energy). 

in  Slovenia, 

(Industry, 

(SDGs) 

SDG 

9 

Graph A4.1: Distribution of cohesion policy funding 
across policy objectives in Slovenia 

Source: European Commission 

Through combined action, cohesion policy and 
the RRP has a mutually reinforcing impact in 
Slovenia.  To  adapt  to  climate  change,  cohesion 
policy  supports  investments  in  flood-protection 
installations,  and  in  technical  equipment  to  deal 
with  climate-related  disasters  such  as  floods, 
forest  fires,  sleet  or  storms.  To  complement  this, 
the RRP is funding flood-protection measures, the 
rehabilitation of sites threatened by landslides and 
the creation of modular response units specialised 
and trained to respond to climate-related disasters 
at national, regional and local level. On sustainable 
transport, the RRP supports the creation of a public 
passenger  transport  body  coordinating  all  public 
transport  modes.  Corresponding  RRP  investments 
upgrade  railway  sections  and  stations,  most 
notably  Ljubljana  railway  station  which  is  the 
largest  passenger  hub.  Cohesion  policy  supports 
local  sustainable  transport strategies and enables 
infrastructure  upgrades  such  as  the  suburban 

32 

PO1 Smarter EuropePO2 Greener EuropePO3 Connected EuropePO4 Social EuropePO5 Europe closer to citizensPO8 JTF specific objectiveGreen transitionDigital transformationSmart, sustainable andinclusive growthSocial & territorial cohesionHealth & resilienceNext generation 
   
   
Table A4.1:  Support from EU instruments in Slovenia 

(1) RRF implementation period is 2021-2026. 
(2) The public sector loan facility’s programming period is 2021-2025 and the amount reflects the national share in its grant 
component reserved until the end of the period. 
(3) Common agricultural policy programming periods are 2014-2022 and 2023-2027. 
(4) EMFF – European Maritime and Fisheries Fund, EMFAF – European Maritime, Fisheries and Aquaculture Fund. 
(5) Data on the Connecting Europe Facility covers transport and energy and has a cut-off date of 15 May 2024. 
(6) Data on Horizon Europe (2021-2027) has a cut-off date of 13 May 2024. 
(7) 2021-2027 data on the LIFE programme has a cut-off date of 15 May 2024. 
(8) The amount of the EU guarantee signed under the EFSI Infrastructure and Innovation Window was derived based on the 
signed amount of the operations and the average internal multiplier, as reported by the EIB (cut-off date is 31 December 2023). 
(9) The amount of the EU guarantee and of the volume of operations signed under InvestEU includes the EU compartment as well 
as the Member State compartments (cut-off date is 31 December 2023).   
(10) SURE - European instrument for temporary support to mitigate unemployment risks in an emergency. 
Source: European Commission 

33 

Amount 2021-2027 (EUR million)Cohesion policy3 242.1RRF grants (1)1 612.9Public sector loan facility (grant component) (2)19.6Common agricultural policy (3)1 232.0EMFF/EMFAF (4)23.9Connecting Europe Facility (5) 236.2Horizon 2020 / Horizon Europe (6) 262.5LIFE programme (7) 30.2Volume of operations (EUR million)European Fund for Strategic Investment 2015-2020 (8) 195.5InvestEU 2021-2027 (9) 67.0PeriodTotal amount available (EUR million)Disbursed amount (EUR million)SURE (10)2020-20221 113.71 113.7RRF 2021-20261 072 310.12 300.0EU grantsAmount 2014-2020 (EUR million)3 336.9-- 82.0 16.8EU loans21.8 420.6 378.7 63.9EU guaranteesEU Guarantee (EUR million) 
 
  
 
ANNEX 5: RESILIENCE 

Table A5.1:  Resilience indices across dimensions for Slovenia and the EU-27 

(1) The synthetic indices aggregate the relative resilience situation of countries across all considered indicators. For an indicator, 
each country’s relative situation in the latest available year is compared with the collection of values of that indicator for all 
Member States and all years in the reference period. 
Source: Resilience Dashboards - version spring 2024, data up to 2022 

50% of its capacity indicators are medium-high or 
high. 

in 

its 

reduced 

It  has  further 

Slovenia  could  further  strengthen  its  strong 
the  social  and  economic 
position 
dimension,  where  its  vulnerabilities  are  now 
at  medium-low  and  its  capacities  medium-
high. 
long-term 
unemployment rate with respect to the 2023 RDB, 
and  is  one  of  the  EU  countries  with  the  second 
lowest  proportion  of  its  population  at  risk  of 
poverty or social exclusion (AROPE) and one of the 
lowest  income  quintile  share  ratios,  pointing  to 
overall  relatively  low  inequalities.  However,  its 
proportion of young people neither in employment 
nor in education and training has slightly increased 
and,  while  still  relatively  low  in  the  EU,  is  now  in 
the medium-low vulnerability category. In terms of 
capacities, it has managed to increase further the 
proportion  of  children  under  3  in  formal  childcare 
and its government investment to GDP ratio.  

In 
the  green  dimension,  Slovenia  has 
maintained  its  medium  vulnerabilities  and 
medium-high 
reduced 
capacities. 
environmental patents per capita has weakened its 
position  in  this  dimension,  and  urban  wastewater 
treatment  as  well  as  one  of  the  highest  risks  of 
soil  erosion  by  water  remain  a  major  concern.  At 
there  has  been  a  small 
the  same 

time, 

Its 

resilience 

This  Annex  uses  the  Commission’s  resilience 
dashboards  (RDB) (33)  to  show  Slovenia’s 
relative 
and 
vulnerabilities (34)  that  may  be  of  relevance 
for  societal,  economic,  digital  and  green 
transformations, and for dealing with future 
shocks and geopolitical challenges. (35)  

capacities 

increased 

to  medium,  while 

According  to  the  RDB’s  set  of  resilience 
indicators,  Slovenia’s  overall  vulnerabilities 
have 
its 
capacities  remained  unchanged  at  medium-
high. 
Its  vulnerabilities  and  capacities  are 
comparable  to  the  EU’s.  This  is  reflected  in  the 
its  vulnerability  and  capacity 
distribution  of 
its  vulnerability 
indicators.  Around  40%  of 
indicators are medium-low and low, while close to 

(33)  Https://ec.europa.eu/info/strategy/strategic-

planning/strategic-foresight/2020-strategic-foresight-
report/resilience-dashboards_en. Resilience is defined as the 
ability not only to withstand and cope with challenges but 
also to undergo transitions, in a sustainable, fair, and 
democratic manner. 2020 Strategic Foresight Report: 
Charting the course towards a more resilient Europe 
(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, 
while capacities refer to enablers or abilities to cope with 
crises and structural changes and to manage transitions. 

(35)  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. 

34 

SISIEU-272023 RDB2024 RDB2024 RDBHighMedium-highMediumMedium-lowLowHighMedium-highMediumMedium-lowLowDimensionDistribution of indicators by vulnerabilities and capacitiesOverall resilienceVulnerabilities0.640.560.50Capacities0.640.610.67VulnerabilitiesSocial and economicVulnerabilities0.850.760.47Capacities0.700.620.670.420.550.65GreenVulnerabilities0.440.500.44Capacities0.740.690.70CapacitiesGeopoliticalVulnerabilities0.640.470.41Capacities0.630.650.65DigitalVulnerabilities0.600.610.52Capacities0%20%40%60%80%100%Vulnerabilities(60 indicators)Capacities(64 indicators) 
 
 
 
   
 
 
improvement in the harmonised risk indicator 1 for 
pesticides (36).  

In  the  digital  dimension,  vulnerabilities  have 
improved, to medium-low, and are above the 
EU  average  and  capacities  have  remained 
unchanged below the EU average. With respect 
to digital skills, Slovenia’s performance is close to, 
but  not  quite  on  a  par  with,  the  EU  average.  The 
number  of 
information  and  communication 
technology  (ICT)  Master’s  graduates  in  the  20-29 
age  group  also  remains  below  the  EU  average, 
giving Slovenia a lower degree of preparedness for 
the digital transition.   

vulnerabilities 

With  respect  to  the  2023  RDB,  Slovenia’s 
have 
geopolitical 
deteriorated,  but  its  capacities  have,  at 
medium-high,  remained  stable.  The  main 
reasons  for  the  change  in  vulnerability  are  the 
Extra-EU  import  and  export  partners  that  remain 
highly  concentrated  and  Slovenia’s  exceptionally 
high borrowing from the rest of the world in 2022, 
when its ratio of net lending over GDP increased to 
1.4% of GDP. 

(36)  For more information on this indicator: 

https://food.ec.europa.eu/plants/pesticides/sustainable-use-
pesticides/harmonised-risk-indicators_en. 

35 

 
 
ENVIRONMENTAL SUSTAINABILITY 
ANNEX 6: EUROPEAN GREEN DEAL 

Slovenia  has  made  progress  in  the  green 
transition,  with  more  action  needed  on 
specifying  the  funding  framework  for  the  climate 
and  energy  transition,  on  sustainable  water 
management,  on  strengthening  the  institutional 
framework on climate adaptation, and other areas. 
This Annex provides a snapshot of climate, energy, 
and  environmental  aspects  of  the  transition  in 
Slovenia (37). 

Slovenia’s draft updated national energy and 
climate plan (NECP) does not yet map all its 
investment needs against sources of funding 
to  achieve  its  2030  climate  and  energy 
targets. The plan does not provide information on 
public  (EU  and  national)  and  private  funding.  It 
only  outlines  the  budget  allocated  to  energy 
projects  under  Slovenia’s  recovery  and  resilience 
plan  and  under  the  2021-2027  cohesion  policy 
programme (38).  

In 

2022, 

target (39). 

With  the  planned  additional  measures, 
Slovenia is projected to reach its 2030 effort 
sharing 
Slovenia’s 
greenhouse  gas  emissions  from  its  effort  sharing 
sectors  are  expected  to  be  6.1%  below  2005 
levels.  Additional  policies  considered  in  Slovenia’s 
draft updated NECP are projected to reduce these 
emissions  by  28.8%  from  2005  levels  by  2030. 
This  is  1.8  percentage  points  below  Slovenia’s 
effort  sharing  target  to  reach  a  27%  reduction. 
With current policies alone, Slovenia is projected to 
reduce  its  effort  sharing  emissions  by  9.1%  from 
2005  levels  by  2030,  which  is  17.9  percentage 

(37)  This Annex is complemented by Annex 7 on energy transition 

and competitiveness, Annex 8 on the fair transition to 
climate neutrality, Annex 9 on resource efficiency, circularity, 
and productivity, and relevant topics in other annexes to this 
country report. 

(38)  See the Commission’s (2023)  assessment of the draft 

national energy and climate plan of Slovenia. 

(39)  The national greenhouse gas emission reduction target is 
laid down in Regulation (EU) 2023/857 (the Effort Sharing 
Regulation). The aim is to align action in the sectors 
concerned with the objective to reach the EU-level economy 
wide target of greenhouse gas reductions of at least 55% 
compared to 1990 levels. The target also applies to the 
sectors outside the current EU Emissions Trading System, 
notably buildings (heating and cooling), road transport, 
agriculture, waste, and small industry (known as the effort 
sharing sectors). 

36 

points  short  of  the  target (40).  This  highlights  the 
importance  of  implementing  the  full  range  of 
policies and  measures in the draft updated NECP. 
The  plan  confirms  Slovenia’s  commitment  to 
achieve  climate  neutrality  by  2050.  Slovenia’s 
climate  law,  which  is  currently  under  preparation, 
is set to establish a more efficient framework for 
obtaining  data  on  greenhouse  gas  emissions  and 
monitoring  the  implementation  of  climate  policy 
measures. 

Graph A6.1: Greenhouse gas emissions from the 
effort sharing sectors in Mt CO2eq, 2005-2022 

Source: European Environment Agency 

There  is  scope  for  increasing  Slovenia’s 
targets  for  renewable  energy  and  energy 
efficiency  in  its  final  updated  NECP (41). 
Currently  set  at  30-35%  by  2030  in  the  draft 
renewable  energy 
updated  NECP,  Slovenia’s 
contribution  target 
is  significantly  below  the 
required contribution of 46%. Its energy efficiency 
contributions  of  6.03  Mtoe  in  primary  energy 
consumption  and  4.43  Mtoe 
in  final  energy 
consumption  for  2030  are  also  less  ambitious 

(40)  The effort sharing emissions for 2022 are based on 
approximated inventory data. The final data will be 
established in 2027 after a comprehensive review. 
Projections on the impact of current policies (‘with existing 
measures’, WEM) and additional policies (‘with additional 
measures’, WAM) as per Slovenia’s draft updated NECP. 

(41)  The EU target set out in the revised Renewable Energy 

Directive is to have 42.5% of gross final energy consumption 
coming from renewable energy sources by 2030, with the 
aspiration to reach 45%. The formula in Annex I to Directive 
(EU) 2023/1791 sets the indicative national contribution for 
Slovenia at 5.79 Mtoe for primary energy consumption. The 
Commission communicated a corrected national contribution 
of 4.32 Mtoe in final energy consumption for 2030 in 
accordance with Article 4(5) of the Energy Efficiency 
Directive to increase the contribution towards the Union’s 
binding energy efficiency target. See the Commission 
Recommendation of 18.12.2023 to Slovenia. 

0246810121420052022MtCO2eWasteSmall industryAgricultureBuildings (under ESR)Domestic transport (excl. aviation) 
 
 
 
      
 
 
 
than  those  required  by  the  Energy  Efficiency 
Directive. 

Continued momentum is crucial for the take-
off of zero-emission mobility in Slovenia (42). 
By  the  end  of  2023,  electric  vehicles  (in  the 
segment  of  light  vehicles  weighing  up  to  3.5 
tonnes) represented roughly 1% of Slovenia’s total 
It’s  2 000  publicly 
fleet. 
passenger  vehicle 
accessible  charging  points  provided  a  charging 
point  for every  six  electric  vehicles  (above the  EU 
average  of  1:10).  State  subsidies  are  planned  in 
2024  to  boost  the  rollout  of  public  and  private 
charging infrastructure. Car trips account for more 
than  90%  of  distances  travelled  in  Slovenia.  Rail 
plays a significant role in the transport of freight, 
accounting  for  34%  of  freight  transported  (the 
remainder  being  transported  by  road).  However, 
only  50%  of  the  rail  network  is  electrified  (EU 
average: 56%).  

Slovenia's  land  use  sector  is  performing 
strongly 
in  removing  carbon  from  the 
atmosphere  through  land  use,  land  use  change 
and  forestry  (LULUCF).  The  country’s  forests  are 
responsible  for  a  major  share  of  the  removals. 
However,  to  reach  the  2030  LULUCF  target, 
additional  carbon  removals  of  212 kt CO2eq (43) 
are  needed.  According  to  the  latest  projections, 
Slovenia's efforts are paying off and it is on track 
to meet the target (44). 

climate 

On 
institutional 
adaptation, 
weaknesses  are  a  key  challenge  in  Slovenia. 
The  country  is  vulnerable  to  climate  change-
related events such as heavy flooding, windstorms, 
heatwaves,  and  wildfires.  Agriculture  and  forestry 
have  embraced  adaptation 
strategies,  but 
implementation  has  been  slow  and  uneven. 
identified 
Furthermore,  Slovenia  has  not  yet 
further  vulnerabilities  beyond  these  sectors.  In 
1980-2020, only 6% of reported losses caused by 
climate-related  events  were  insured.  Flood  is  the 
highest risk, as evidenced by the floods of summer 
2023,  but  its  potential  economic  impacts  can  be 
mitigated  by  good  insurance  coverage.  Nature-

(42)  Unless otherwise indicated, data in this section refer to 
2021. See European Commission, 2023, EU transport in 
figures, transport.ec.europa.eu. 

(43) National LULUCF targets of the Member States in line with 

Regulation (EU) 2023/839. 

(44)  Projections submitted in Slovenia’s draft updated national 

energy and climate plan, 2023. 

based solutions are key to mitigating the impact of 
floods.  Integrating  adaptation,  such  as  nature-
based solutions, into sectoral policies, including for 
flood  protection,  is  necessary,  as  is  setting  up  a 
monitoring,  reporting  and  evaluation  system,  and 
of 
better 
government (45). 

coordination 

between 

sectors 

Slovenia  would  benefit  from  improving  its 
sustainable  water  management  and  the 
status  of  its  freshwater  bodies.  The  water 
exploitation  index  plus  (WEI+)  stood  at  0.4%  in 
2019.  On  average,  4.3%  of  Slovenia’s  area  was 
impacted by droughts in 2000-2020, compared to 
52.4%  in  2022.  The  country  would  benefit  from 
using its water resources more efficiently. In 2021, 
Slovenia’s  economy  generated  EUR  61  per  cubic 
metre  of  water  abstracted,  below  the  EU  average 
of EUR 398. Forests and  woodlands are generally 
the  most  impacted  ecosystems.  According  to  the 
second  river  basin  management  plan,  59%  of 
surface  water  bodies  are  in  at  least  a  good 
ecological  status,  and  only  1%  are  in  a  good 
chemical  status.  According  to  the  latest  data,  not 
all  marine  waters  are  in  a  good  environmental 
status,  as  tracked  by  the  descriptors  used  in  the 
Marine Strategy Framework Directive. 

Slovenia  continues  to  face  challenges  in  the 
areas  of  biodiversity  and  nature  protection 
and  restoration.  At  the  end  of  2021,  40.5%  of 
Slovenia’s  land  areas  and  only  5%  of  its  marine 
area were under protection. According to the report 
on  the  conservation  status  of  protected  habitats 
and species covered by Article  17 of the Habitats 
Directive,  in  2013-2018,  38%  of  habitats  and 
29%  of  species  were  in  a  good  conservation 
status.  Agricultural 
is  still  affected  by 
land 
biodiversity  loss  and  the  common  farmland  bird 
index stood at 81.6 in 2020, above the EU average 
of  78.2.  The  EU  has  launched  an  infringement 
procedure against Slovenia for the deterioration of 
several  bird  and butterfly species  in  Natura  2000 
sites,  mainly  due  to  unsustainable  agricultural 
practices. 

(45)  See the Commission’s 2023 assessment and 

recommendation on Slovenia’s progress on climate 
adaptation. 

37 

 
 
 
(14.1 mg nitrate/l vs 20.5) and 9% of groundwater 
monitoring  stations  showed  levels  above  the 
maximum of 50 mg nitrate/l. 

Slovenia  would  benefit  from  investing  more 
in  sustainable  water  management  and  in 
measures  to  protect  biodiversity.  Between 
2014  and  2020,  environmental  investment  gap 
was  estimated  at  EUR  493  million  per  year, 
equivalent to 1.1% of GDP, above the EU average 
of  0.8%.   The  gap  is  estimated  to  be  increasing 
over  the  2021-2027  period  at  EUR  627  million  a 
year (1.1% of GDP). There remains an opportunity 
to  increase  funding,  in  particular  for  sustainable 
water  management 
(EUR  284  million)  and 
pollution prevention and control (EUR 125 million). 
Slovenia  would  also  benefit  from  investing  in 
circular economy and biodiversity and ecosystems.  

Graph A6.3: Environmental investment gap, annual 
average 

The numbers are computed by the European Commission 
based on the latest internal reports, Eurostat, EIB and national 
data sources. 
Source: European Commission 

Graph A6.2: Changes in livestock density and 
organic farming 

Livestock unit (LSU)/ha of UAA: it measures the stock of 
animals (cattle, sheep, goats, equidae, pigs, poultry and 
rabbits) converted in LSUs per hectare of UAA. 
Source: Eurostat 

tillable  area 

Intensive  agriculture  has  a  major  impact  on 
ecosystems, biodiversity, and air quality. The 
value  of  the  agricultural  sector’s  annual  output 
totalled  EUR  1.2  billion (46)  in  2023.  Slovenia  is in 
the  process  of  converting  to  organic  agriculture, 
with  the  share  of  its  utilised  agricultural  land 
(UAA)  under  organic  farming  reaching  10.8%  in 
2021  versus  the  EU  average  of  9.1% (47)  and  the 
EU-wide  goal  of  at 
least  25%  by  2030. 
Furthermore,  conservation  tillage  practices,  which 
increase  soil  organic  carbon,  covered  12%  of 
Slovenia’s 
in  2016.  Slovenia’s 
livestock  density  index  decreased  from  1.04%  to 
1.01% in 2010 to 2020 but remained well above 
the EU average of 0.75%. In parallel, the share of 
extensive  animal  farming (48)  in  Slovenia’s  UAA 
decreased from 69.7% in 2013 to 24.9% In 2016, 
above  the  EU  average  of  23.8%.  The  intensive 
rearing  is  among  the  most  polluting  industrial 
activities  for  ammonia  emissions  into  air.  The 
agricultural  sector  was  responsible  for  92.6%  of 
Slovenia’s  total  ammonia  emissions  in  2021  (EU 
average:  90.7%).  According  to  the  latest  figures, 
Slovenia  has  a  nitrogen  surplus,  with  an  average 
nitrogen  balance  of  43.2 kg  of  nitrogen  per 
in 
hectare 
the  EU  average 
groundwater  stands  below 

in  2019.  The  content  of  nitrate 

(46)  Production value at basic price (2015=100). 

(47)  In 2020. 2021 data is not available. 

(48)  Share of utilised agricultural area with livestock density 

below one livestock unit per hectare. 

38 

01202468101220162020% LSU per hectare% of total utilised agricultural areaLivestock density index Slovenia (% LSU per ha)Livestock density index EU-27 (% LSU per ha)Organic farming Slovenia (% of total utilised agricultural area)Organic farming EU-27 (% of total utilised agricultural area)127771341441252841081110100200300400Pollution prevention &controlWater managementCircular economy andwasteBiodiversity andecosystemsmillion EUR2014-20202021-2027 
       
 
       
 
 
 
 
 
 
 
 
Table A6.1:  Indicators tracking progress on the European Green Deal from a macroeconomic perspective 

Sources:  (1)  Member  States’  emission  data  for  2019  and  2020  are  in  global  warming  potential  (GWP)  values  from  the  4th 
Assessment Report (AR4) of the Intergovernmental Panel on Climate Change (IPCC). Member States’ 2005 base year emissions 
under  Regulation  (EU)  2018/842,  emissions  data  for  2021  and  2022,  and  2030  projections  are  in  GWP  values  from  the  5th 
Assessment Report (AR5) of the IPCC. 2021 data are based on the final inventory reports, 2022 data are based on approximated 
inventory reports and European Environmental Agency’s calculation of effort sharing emissions. The final data for 2021 and 2022 
will  be  established  after  a  comprehensive  review  in  2027.  The  2030  target  is  in  percentage  change  of  the  2005  base  year 
emissions. Distance to target is the gap between the 2030 target and projected effort sharing emissions with existing measures 
(WEM) and with additional measures (WAM), in percentage change from the 2005 base year emissions. The measures included 
for  the  2030  emission  projections  reflect  the  state  of  play  as  reported  in  Member  States'  draft  updated  national  energy  and 
climate plans or, if unavailable, as reported by 15 March 2023 as per Regulation 2018/1999. (2) Net removals are expressed in 
negative figures, net emissions in positive figures. Reported data are from the 2024 greenhouse gas inventory submission. 2030 
value  of  net  greenhouse  gas  removals  as  in  Regulation  (EU)  2023/839  –  Annex  IIa.  (3)  The  2030  national  objectives  for 
renewable  energy  and  energy  efficiency  are  indicative  national  contributions,  in  line  with  Regulation  (EU)  2018/1999  (the 
Governance  Regulation),  the  EU-level  2030  renewable  energy  target  set  out  in  Directive  EU/2018/2001  amended  by  Directive 
EU/2023/2413 (the revised Renewable Energy Directive) – 42.5% of gross final energy consumption with the aspiration to reach 
45% –, and the formula in Annex I to Directive (EU) 2023/1791 (the Energy Efficiency Directive). (4) Passenger battery electric 
vehicles (BEV) and fuel cell electric vehicles (FCEV). (5) The climate protection gap refers to the share of non-insured economic 
losses caused by climate-related disasters, based on modelling of the risk from floods, wildfires, windstorms, and the insurance 
penetration rate. Scale: 0 (no protection gap) –4 (very high gap) (European Insurance and Occupational Pensions Authority, 2022). 
(6) Total water consumption in renewable freshwater resources available for a territory and period. (7) Material extractions  for 
consumption and investment. (8) Years of potential life lost through premature death due to exposure to particulate matter with a 
diameter  of  less  than  2.5  micrometres.  (9)  Share  of  habitats  in  good  conservation  status  according  to  the  records  submitted 
under  Art.  17  of  the  Habitats  Directive  (Directive  92/43/EEC)  for  2013-2018.  (10)  Multi-species  index  measuring  changes  in 
population abundances of farmland bird species. (11) Source: annex 12 of the Commission’s proposal for a soil monitoring law, 
SWD (2023) 417 final. (12) Estimates of organic carbon content in arable land. 

39 

Target200520192020202120222030WEMWAMProgress to climate and energy policy targetsGreenhouse gas emission reductions in effort sharing sectors (1)Mt CO2eq, %, pp11,826.3-9%-18%-12%-6%-27%-171.8Net greenhouse gas removals from LULUCF (2)Kt CO2eq-7 230-641.000-397.000-321.000-169.000-146n/an/aShare of energy from renewable sources (1) (3)%20%22%25%25%23%0.46--Energy efficiency: primary energy consumption (3)Mtoe7.26.56.16.36.25.8Energy efficiency: final energy consumption (3)Mtoe5.14.94.44.74.74.3Projected20182019202020212022202120222030Green transition: mobility         Greenhouse gas emissions: road transportMt CO2e---5.26.1769.0786.65.0Share of zero-emission vehicles in new registrations (4)% 0.60.83.13.15912.1n/aNumber of publicly accessible AC/DC charging points --40112281596299178446956n/aShare of electrified railways%50.5%50.5%50.5%50.5%-56.1%-n/aGreen transition: buildings         Greenhouse gas emissions: buildingsMt CO2e---1.31.2537.0486.70.7Final energy consumption in buildings2015=10096.2%93.1%93.1%97.6%90.2%104.0%97.2% Climate adaptation         Climate protection gap (5)score 1-4--1.51.81.61.51.5n/a20182019202020212022202020212022State of the environmentWater | Water exploitation index (WEI+) (1) (6)% of renewable freshwater0.60.4---3.6--Circular economy | Material footprint (7)tonnes per person14.213.412.714.916.614.214.814.9Pollution | Years of life lost due to air pollution by PM2.5 (8)per 100.000 inhabitants826623567543-545584-Biodiversity | Habitats in good conservation status (9)%38.214.7                       Common farmland bird index (10)2000=100797782--78--Green transition: agri-food sectorOrganic farming% of total utilised agricultural area10.0110.3510.2910.81-9.1--Nitrates in groundwatermg NO3/litre-----20.42--Food waste per capitaKg per capita6868-130131-Share of soil in poor health (11)%3041Soil organic matter in agricultural land (12)Mt per ha19----7,904--DistanceEU-27 
 
     
 
ANNEX 7: ENERGY TRANSITION AND COMPETITIVENESS 

Slovenia  has  also 
implemented  several 
across-the-board  compensation  mechanisms. 
The  government  reduced  the  cost  of  energy  for 
households  and  certain  protected  consumer 
groups  by  lowering  taxes,  excise  duties  and 
contributions. The measures setting the maximum 
retail electricity and gas prices, including those for 
households  and  small  business  consumers,  have 
been  extended  to  the  end  of  2024,  and  to  April 
2024 in the case of natural gas. Through a Decree, 
below-cost  prices  for  the  supply  of  electricity  for 
micro,  small  and  medium-sized  enterprises  were 
also brought in for a period in 2023.  

Graph A7.1: Slovenia´s energy retail prices for 
households and industry & service 

(1) For industry, consumption bands are I3 for gas and IC for 
electricity, which refer to medium-sized consumers and 
provide an insight into affordability 
(2) For households, the consumption bands are D2 for gas 
and DC for electricity 
(3) Industry prices are shown without VAT and other 
recoverable taxes/levies/fees as non-household consumers 
are usually able to recover VAT and some other taxes 
Source: Eurostat 

consumers 

In  relative  terms,  electricity  prices  for  non-
household 
increased 
significantly compared to the US, Japan, and 
to  a  lesser  extent,  the  UK,  thus  potentially 
affecting  the  international  competitiveness 
of energy-intensive industries in Slovenia. 

have 

This  Annex (49)  sets  out  Slovenia’s  progress 
and  challenges  in  accelerating  the  net-zero 
energy  transition  while  bolstering  the  EU’s 
competitiveness 
energy 
sector (50). It considers measures and targets put 
forward in the draft updated National Energy and 
Climate Plans (NECPs) for 2030 (51). 

clean 

the 

in 

Slovenia  has  made  efforts  to  decrease  its 
dependence on Russian natural gas, including 
by  strengthening  gas  interconnection  with 
Italy  and  contracting  alternative  supplies.  It 
saw  a  record  increase  in  deployment  of  solar 
photovoltaics 
in  2023.  However,  new  wind 
capacities  have  not  been  deployed  in  years  and 
remain  at  an  insignificant  level.  Further  uptake  in 
deployment of renewable energy, particularly wind, 
as  well 
efficiency 
improvements would supporting Slovenia to reach 
its  2030 targets  and  support  the  competitiveness 
of  its  energy  system.  Already  supporting  its 
domestic 
competitiveness 
a 
manufacturing 
in 
batteries and solar modules. 

involved  primarily 

is 
industry 

additional 

vibrant 

energy 

as 

Slovenian  households  experienced 
lower 
average  electricity  prices  than  the  EU 
average  in  the  second  of  2023  and  have 
largely  been  shielded 
the  price 
increases  of  the 
last  year  thanks  to 
regulatory  and  fiscal  interventions.  Following 
a peak in first halve of 2023, industrial consumers 
saw  a  gradual  decline 
in  average  gas  and 
electricity prices, dipping by 17% and 7.5%, in line 
with the EU average, in the second half of 2023. 

from 

Some  of  the  support  measures  have  been 
well  targeted  towards  helping  vulnerable 
households  and  companies  alleviate  the 
inflation,  but 
impacts  of  energy-price 

(49)  It is complemented by Annex 6 as the European Green Deal 

focuses on the clean energy transition and by Annex 8 on the 
action taken to protect the most vulnerable groups, 
complementing ongoing efforts under the European Green 
Deal, REPowerEU and European Green Deal Industrial Plan. 

(50)  In line with the Green Deal Industrial Plan and the Net-Zero 

Industry Act. 

(51)  Slovenia submitted its draft updated NECP in June 2023, 
and the Commission issued an assessment and country-
specific recommendations on 18 December 2023. 
Commission Recommendation, Assessment (SWD) and 
Factsheet of the draft updated National Energy and Climate 
Plan of Slovenia - European Commission (europa.eu). 

40 

0.000.050.100.150.200.250.300.35€/KWhGas (industry & service) - SIGas (industry & service) - EUGas (households) - SIGas (households) - EUElectricity (industry & service) - SIElectricity (industry & service) - EUElectricity (households) - SIElectricity (households) - EU 
 
 
   
 
 
 
Graph A7.2: Trends in electricity prices for non-
household consumers (EU and foreign partners) 

(1) For Eurostat data (EU and SI), the band consumption is ID 
referring to large-sized consumers with an annual 
consumption of between 2 000 MWh and 20 000 MWh, such 
as in electricity intensive manufacturing sectors, and gives an 
insight into international competitiveness  
(2) JP = Japan 
Source: Eurostat, IEA 

Consumer  empowerment  in  the  electricity 
and gas markets is significant. Deployment of 
smart  meters  is  up  to  92%,  and  there  are 
increasing investments in energy communities and 
individual/collective 
High 
switching  rates  in  electricity  and  gas  were  also 
observed in Slovenia. 

self-consumption. 

gas 

trading 

company 

Slovenia  has  taken  measures  to  strengthen 
alternative supplies of natural gas. Slovenia’s 
largest 
contracted 
alternative  gas  supplies  from  Algeria,  imported 
through  Italy,  in  2022  and  then  increasing  the 
volumes  in  2024.  Slovenia’s  domestic  annual 
needs  (0.8  bcm),  are  unlikely  to  lessen  in  the 
coming  years,  due  to  the  expected  entry  into 
operation of a gas-fired Combined Heat and Power 
Plant  in  Ljubljana  in  2024.  Slovenia  reduced  its 
gas demand between August 2022 and December 
2023 by only 11% compared to the average of the 
previous  5  years.  Following  the  enhancement  of 
the  Gorizia/Šempeter  interconnection  point  with 
Italy  completed  in  2022,  a  second  stage  of  the 
project  is  planned  on  the  Slovenian  territory  with 
the aim of further increasing bidirectional capacity 
from  1.22 
The 
reinforcements  of  the  gas  infrastructure  carried 
out in Croatia, included in Croatian RRP, will enable 
Slovenia to access the expanded Krk LNG terminal 
by  increasing  the  cross-border  capacity  between 
the  two  countries  up  to  1.5  bcm/y.  However,  the 
additional  quantities  of  gas  from  Krk  will  not  be 
available for booking until 2025 to 2026.  

to  1.53 

bcm/y. 

bcm/y 

Renewable installed capacity surged in 2023, 
thanks  to  the  uptake  of  solar  photovoltaics, 
while  the  deployment  of  wind  capacities 
remained  stagnant.  Slovenia’s  total  renewable 
in  2023  was  2296  MW (52) 
energy  capacity 
(increase  of  23%  from  2022).  This  was  driven by 
the  acceleration  of  solar  photovoltaic  deployment 
to  the  amount  of  408  MW,  resulting  in  total 
installed  capacity  of  1034  MW  in  2023.  On  the 
other hand, the wind capacity currently deployed in 
Slovenia  remains  insignificant  (3  MW) (53),  with 
limited plans for its deployment between by 2030. 

Graph A7.3: Slovenia's installed renewable 
capacity (left) and electricity generation mix 
(right) 

(1) "Other" includes solid biofuels, liquid biofuels and biogas 
Source: IRENA, Ember 

Slovenia  has  taken  steps  to 
implement 
reforms  to  accelerate  the  deployment  of 
renewables.  Following  the  2021  Act  on  the 
Promotion  of  the  Use  of  Renewable  Energy 
Sources,  another  important  RRP  reform  in  spatial 
planning and permitting was enacted in July 2023 
through the Act on the Deployment of Installations 
for  the  Production  of  Electricity  from  Renewable 
Energy Sources. The Act sets out a legal basis for 
drawing  up  an  action  plan  identifying  potential 
priority  areas  for  solar  and  wind  installations.  It 
also  sets  out  certain  priority  areas  for  solar 
photovoltaic  installations  such  as  the  rooftops  of 
larger  buildings,  car  parks,  abandoned  landfills, 
and others. It sets out the conditions under which 
the  installation  of  solar  photovoltaic  panels  on 
certain new constructions, reconstructed buildings, 
and  some  existing  buildings,  is  compulsory.  It 
simplifies  the  permitting  procedures  for  the 
installation  of  solar  photovoltaic  panels  on  co-
owned properties. Most recently, in April 2024, the 

(52)  IRENA Report 2023. 

(53)  International Renewable Energy Agency, Renewable energy 

statistics 2023. 

41 

050100150200250300Index ( 2018 S2 = 100)JPUKUSSIEU 
  
 
 
Slovenian  Parliament  passed  the  Energy  Act, 
legal 
comprehensively  adapting  the  country's 
framework  in  the  energy  sector  to  support  the 
green  transition.  Despite  the  legal  improvements 
made,  installations  of  wind  power  plants  are  still 
being delayed due to local opposition and lengthy 
municipal  permitting  procedures  (see  also  Annex 
12).  So  far,  Slovenia  has  not  set  up  auctions  to 
support uptake of renewable energy. Furthermore, 
the project pipeline of renewable energy projects is 
not  clear  either,  as  Slovenia  has  not  published its 
long-term schedule for auctions for the next 3 or 5 
years.  Nor  are  the  details  clear  on  timing,  the 
frequency  of  auction  procedures,  expected 
capacity and budget, and eligible technologies.  

appear 

NECP’s 

proportion 

considerable 

of 
Slovenia’s 
renewables  in  heating  and  cooling  (34%  in 
2022)  is  mainly  the  result  of  biomass  use. 
Heat pumps cover about a tenth of this. The draft 
rather 
targets 
updated 
unambitious,  linked  to  a  decrease  in  the  use  of 
biomass.  The  uptake  in  share  of  renewables  is 
expected  mainly  to  come  from  heat  pumps  and 
other  sources  of  renewable  heat.  Through  the 
support  from  the  RRP  in  the  amount  of  EUR  31 
million, at least 45 MW of new renewable district 
heating capacity will come online by 2026. Support 
for  district  heating  decarbonisation,  amounting  to 
more  than  EUR  32  million,  will  also  be  provided 
through the European Regional Development Fund. 
The  new  Energy  Act  laid  out  several  measures  to 
reinforce  the  decarbonisation  efforts  by  obliging 
municipalities  to  prepare  plans  and  set  objectives 
for  increasing  their  share  of  renewable  energy 
consumption, energy savings as well as targets for 
the  energy  renovation  of  public  buildings.  Plans 
will  cover  actions  to  phase  out  heating  on  fossil 
fuels.  Also  importantly  from  the  decarbonisation 
installation  of  boilers  using 
perspective,  the 
natural gas or liquefied petroleum gas for heating 
in new residential buildings starting 2025.  

grid 

remain 

upgrades 

a 
Electricity 
precondition for greater uptake of renewable 
energy.  Slovenia  has  a  robust  transmission 
network  and  strong  interconnection  links  with 
neighbouring  EU  countries,  which  have  been 
reinforced  with  the  implementation  of  recent 
Projects  of  Common  Interest  with  Croatia  and 
Hungary.  Still,  the  transmission  network  will  need 
to  be  reinforced  to  enable  the  connection  of  new 
renewable 
generation  facilities,  mainly  from 
sources,  an  expected 
in  electricity 
loads.  Ensuring  network 
demand,  and  peak 

increase 

including 

through  currently 

flexibility, 
limited 
electricity  storage  units,  will  also  be  necessary  to 
support the green transition. Besides digitalisation, 
investments  are  particularly  needed  on 
the 
distribution  grid,  given  one  quarter  of  all 
applications  for  small-scale  electricity  generation 
installations  were  rejected  in  2022  due  to  grid 
constraints (54). The electrification of transport and 
heating  will  put  additional  strain  on  the  grid.  The 
implementation  of  the  priorities  set  out  in  the 
recently  endorsed  Central  and  South  Eastern 
Europe Energy Connectivity (CESEC) electricity and 
renewable  energy  action  plan (55)  and  the  CESEC 
action  plan  on  gases (56)  will  be  crucial  for 
accelerated 
infrastructure  development  and 
market integration.  

room 

Energy efficiency gains have slowed down in 
Slovenia, 
for 
leaving  significant 
improvement. In 2022, Slovenia’s primary energy 
consumption  was  6.2  Mtoe,  a  2.2%  decrease 
compared 
to  2021,  and  a  9.3%  decrease 
compared  to  2012.  Its  final  energy  consumption 
was 4.7 Mtoe, a 0.1% decrease compared to 2021, 
and  a  4.1%  decrease  compared  to  2012.  In  the 
last  year,  the  best  results  came  from  the 
residential sector, which decreased its final energy 
consumption  by  10.5%,  and  the  worst  from  the 
transport  sector,  which  increased  its  final  energy 
consumption by 10.1%. 

includes 

investments 

Slovenia has implemented a series of energy 
efficiency measures, primarily in the building 
sector, with the support of several EU funds. 
Its  RRP 
in  the  energy 
renovation  of  public  buildings  and  publicly  owned 
residential buildings, as well as the refurbishment, 
extension,  and  construction  of  tourist  facilities 
(EUR 196.9 million). It also includes investments in 
energy  efficiency  and  decarbonisation  of  industry 
(EUR  42.4  million).  Under  cohesion  policy,  almost 
13%  of  overall  funding  (around  EUR  320  million) 
is  in  energy  efficiency,  with  most  of  it  going  into 

(54)  Energy Agency, Report on the energy situation in Slovenia, 

2022. 

(55)  CESEC electricity and renewable energy action plan (2024), 
https://circabc.europa.eu/ui/group/e334255a-6951-4933-
923d-0afd1b105268/library/3f18bd9c-f32f-4054-8c61-
ba9d49c0e09f/details. 

(56)  CESEC action plan on gases (2024), 

https://circabc.europa.eu/ui/group/e334255a-6951-4933-
923d-0afd1b105268/library/f2fced37-5172-4905-be11-
dd384ec46be9/details. 

42 

 
 
building renovations. The key enabling measure to 
increase energy efficiency in industry is the energy 
savings obligation scheme for energy suppliers. 

Most  of  the  financial  support  schemes  for 
energy  efficiency  are  grant-based  and  the 
use  of  financial  instruments  is  limited.  In 
energy  efficiency,  Slovenia  mainly  uses  grants-
based  funding  schemes  implemented  through the 
Ecofund, which also deploys soft loans.  

to 

reduce 

buildings’ 

Slovenia  needs  to  continue  working  towards 
reaching  its  long-term  renovation  strategy 
target 
energy 
consumption  by  17%  by  2030  compared  to 
2020.  The 
residential  sector’s  final  energy 
consumption  declined  by  2.3% (57)  between  2020 
and  2022.  Heating  and  cooling  represent  almost 
final  energy 
80%  of  Slovenia’s 
residential 
consumption,  34%  of  which 
from 
comes 
renewables.  Heating  with  a  heat  pump  is  only 
cheaper  than  heating  with  a  fossil  fuel  boiler  if 
electricity costs the end-user less than three times 
the price of gas. In Slovenia, residential electricity 
costs the end-user 1.97 times more than the price 
of  gas.  Slovenia  does  a  low  number  of  checks  on 
products  covered  by  eco-design  and  energy 
labelling.  A  low  number  of  market  surveillance 
activities  gives 
concern  about 
compliance levels. 

cause 

for 

(ICT) 

communication 
training,  and  product 
innovators.  Its  weaknesses  are  non-research  and 
expenditures, 
development-related 
venture 
innovation 
expenditures  per  employee,  knowledge-intensive 
services exports, and environmental technologies. 

innovation 
expenditures, 

capital 

has 

significant 

Slovenia 
battery 
manufacturing  capacity  and  capacity  for 
photovoltaic  module  manufacturing,  whose 
deployment  has  been  increasing  in  the  last 
few  years.  Behind  the  manufacturing  operations 
of  both  technologies  are  mainly  Slovenian  pure 
market  players  (see  also  Annex  12).  Annual 
capacity  for  the  production  of  solar  modules  by 
Slovenia’s lead manufacturer is approximately 750 
MW. There are also several battery manufacturers 
in  Slovenia,  some  of  which  have  been  operating 
for  over  half  a  century. 
leading  battery 
manufacturer  owns  three  production  facilities  in 
Slovenia  and  one  abroad.  Its  portfolio  includes 
different  types  of  lead  and  lithium-ion  batteries. 
Recently, the company unveiled ambitious plans to 
start  its  first  gigafactory  for  lithium-ion  energy 
storage systems in Prevalje, set to come online in 
2024.  The  different  activities  of  the  consortium 
brought 
leading  battery 
manufacturer, including support for production and 
research  and  development,  have  been  supported 
through the Slovenia’s RRP.  

together  by 

the 

Its 

Slovenia  has  put  forward  some  plans  that 
are indicative of the increased role hydrogen 
will have in its economy. Slovenia has plans to 
construct  two  electrolysers  for  storing  surplus 
electricity  in  the  form  of  hydrogen  as  part  of  its 
draft  updated  NECP,  with  the  electrolysers’  exact 
capacity  yet  to  be  defined.  It  also  intends  to 
establish  two  hydrogen  corridors  with  Hungary, 
Italy,  Croatia  and  Austria,  consisting  partly  of  the 
existing  gas  infrastructure  and  partly  of  new 
hydrogen infrastructure, with indicative completion 
dates after 2030.  

is  a  Moderate 

Slovenia 
Innovator  with 
performance at 95.1% of the EU average. Its 
co-publications, 
strengths  are  public-private 
lifelong 
international  scientific  co-
publications, businesses providing information and 

learning, 

(57)  Final energy consumption in households from Eurostat (data 
tables of December 2023), climate corrected by the Joint 
Research Centre with reference period 2005-2022 (FEC 
climate corrected = FEC/ (HDD/HDD reference period). 

43 

 
 
Table A7.1:  Key Energy Indicators 

(1) The ranking of the main suppliers is based on the latest available figures (for 2022) 
(2) Venture Capital investment includes Venture Capital deals (all stages), Small M&A deals and Private Equity (PE) growth deals 
(for companies that have previously been part of the portfolio of a VC investment firm or have received Angel or Seed funding). 
Source: Eurostat, Gas Infrastructure Europe, JRC elaboration based on PitchBook data (03/2024), JRC SETIS (2024) 

44 

20192020202120222019202020212022Import Dependency [%] 52.1%45.7%48.6%54.0%60.5%57.5%55.5%62.5%of Solid fossil fuels 20.1%17.7%11.0%28.1%43.3%35.8%37.3%45.8%of Oil and petroleum products 101.4%99.5%99.6%98.4%96.7%96.8%91.7%97.7%of Natural Gas 99.2%99.4%99.4%99.5%89.7%83.6%83.6%97.6%Dependency from Russian Fossil Fuels [%]of Natural Gas 11.8%8.7%13.6%8.6%39.7%41.3%41.1%21.0%of Crude Oil0.0%0.0%0.0%0.0%28.8%26.7%26.4%19.5%of Hard Coal3.7%21.9%0.2%0.0%43.5%49.1%47.4%21.5%2016201720182019202020212022Gas Consumption (in bcm)0.9                   0.9                   0.9                   0.9                 0.9                 1.0                 0.8                 Gas Consumption year-on-year change [%]6.1%4.8%-1.9%1.5%0.0%5.4%-11.1%Gas Imports - by type (in bcm)0.9                   0.9                   0.9                   0.9                 0.9                 0.9                 0.8                 Gas imports - pipeline0.9                   0.9                   0.9                   0.9                 0.9                 0.9                 0.8                 Gas imports - LNG0.00.00.00.00.00.0-                 Gas Imports - by main source supplier (in bcm) (1)Austria0.5                   0.7                   0.6                   0.8                 0.8                 0.8                 0.7                 Russia0.3                   0.2                   0.3                   0.1                 0.1                 0.1                 0.1                 20192020202120222023LNG Terminals - storage capacity m3 LNGNumber of LNG Terminals00000LNG Storage capacity (m3 LNG)00000Underground StorageNumber of storage facilities00000Technical Capacity (bcm)0.00.00.00.00.020162017201820192020202120222023Gross Electricity Production (GWh) (2)16,500            16,326            16,327            16,100          17,191          15,877          13,616          -              Combustible Fuels5,730           5,610           5,397           5,287         5,239         4,715         3,958         -              Nuclear5,715           6,285           5,776           5,821         6,353         5,706         5,606         -              Hydro4,782           4,141           4,893           4,683         5,225         4,997         3,401         -              Wind6                   6                   6                   6                 6                 6                 6                 -              Solar267               284               255               303             368             453             646             Geothermal-                -                -                -              -              -              -              -              Other Sources-                -                -                -              -              -              -              -              Gross Electricity Production [%]Combustible Fuels34.7%34.4%33.1%32.8%30.5%29.7%29.1%-              Nuclear34.6%38.5%35.4%36.2%37.0%35.9%41.2%-              Hydro29.0%25.4%30.0%29.1%30.4%31.5%25.0%-              Wind0.0%0.0%0.0%0.0%0.0%0.0%0.0%-              Solar1.6%1.7%1.6%1.9%2.1%2.9%4.7%-              Geothermal0.0%0.0%0.0%0.0%0.0%0.0%0.0%-              Other Sources0.0%0.0%0.0%0.0%0.0%0.0%0.0%-              Net Imports of Electricity (GWh)1,176-               516-                  502-                  319-                2,003-             270-                1,446             -              As a % of electricity available for final consumption -9.0%-3.8%-3.6%-2.3%-15.4%-2.0%11.0%-              Electricity Interconnection [%]83.6%73.6%76.2%78.9%65.8%75.6%82.1%Share of renewable energy consumption - by sector [%]-              Electricity32.1%32.4%32.3%32.6%35.1%35.0%37.0%-              Heating/cooling35.6%34.6%32.3%32.1%32.1%35.2%34.0%-              Transport1.6%2.6%5.5%8.0%10.9%10.6%7.8%-              Overall22.0%21.7%21.4%22.0%25.0%25.0%25.0%-                 20192020202120222023VC investments in climate tech start-ups and scale-ups (EUR Mln)-                3.55              -                -                 1.70               as a % of total VC investment (3) in Slovenia start-ups and scale-ups-                32.4%-                -              3.7%Research & Innovation spending in Energy Union R&i prioritesPublic R&I (EUR mln)-              -              Public R&I (% GDP)-                -                -                -              -              Private R&I (EUR mln)15.6              -                -                -              -              Private R&I (% GDP)0.032%-                   -                   -                 -                 ELECTRICITY/ENERGYCLEAN ENERGYSloveniaEUENERGY DEPENDNCEDIVERSIFICATION OF GAS SUPPLIES 
 
   
 
ANNEX 8: FAIR TRANSITION TO CLIMATE NEUTRALITY 

This  Annex  monitors  Slovenia’s  progress  in 
ensuring  a  fair  transition  towards  climate 
neutrality  and  environmental  sustainability, 
particularly  for  workers  and  households  in 
vulnerable situations. Slovenia’s green economy 
is  expanding.  Between  2015  and  2021,  total  jobs 
in  the  environmental  goods  and  services  sector 
grew  by  19.7%  (to  around  30  200)  (EU:  18.2%), 
reaching  3.1%  of  total  employment  (EU:  2.7%). 
Also between 2015 and 2022, the greenhouse gas 
(GHG)  emission  intensity  of  Slovenia’s  workforce 
(see  Graph  A8.1  and  Table  A8.1)  declined  from 
14.1  to  12.6  tonnes  per  worker,  below  the  EU 
average  (14.3  tonnes  per  worker  in  2022) (58), 
indicating  a  positive  trend  in  the  green  transition. 
Slovenia  has  implemented  some  measures  for  a 
fair  transition  to  achieving  climate  neutrality  in 
line with the Council Recommendation on ensuring 
a fair transition towards climate neutrality (59), but 
more  strategic  orientation  is  needed.  Green  skills 
are  integrated  in  some  active  labour  market 
measures.  Slovenia’s  recovery  and  resilience  plan 
(RRP)  addresses  bottlenecks  that  prevent  lasting 
and  sustainable  growth,  while  investments  are 
targeted 
transition 
towards  a  greener  economy,  maximising  the 
benefits  of  digitalisation  and  ensuring  social-
economic cohesion and resilience. The Strategy for 
Greening  Education  and  Research  Infrastructure 
contributes  to  the  green  transition.  The  European 
Social Fund Plus (ESF+) contributes to job creation, 
upskilling and reskilling programmes for the green 
transition and circular economy. 

towards  accelerating 

the 

Employment  in  Slovenia’s  sectors  that  are 
most  affected  by  the  green  transition  is 
slowly  decreasing.  In  2023,  employment  in 
Slovenia’s  energy-intensive  industries  comprised 
4.4% of total employment (EU: 3.5%). Employment 
in mining and quarrying in 2023 was the same as 
in  2015,  with  some  fluctuation 
in  between, 
standing at 3 100 workers 2023). The job vacancy 
rate in construction (see Graph A8.2), a key sector 
for  the  green  transition,  is  higher  than  the  EU 

average (6.2% vs 3.6% in EU in 2023), in line with 
the  perception  of  small  and  medium-sized 
enterprises  (SMEs)  in  the  sector,  where  81% 
agreed that skills shortages are holding them back 
in general  business activities (60).  According to the 
labour 
European  Labour  Authority 
shortages were reported in 2023 for a number of 
occupations 
required  specific  skills  or 
knowledge  for  the  green  transition (62),  including 
electrical  engineers, 
insulation  workers,  and 
building  and  related  electricians.  At  least  2.3%  of 
ESF+  labour  market  support,  such  as  activation 
programmes,  will  be  focused  on  increasing  the 
number of people with green skills.   

(ELA) (61), 

that 

Graph A8.1: Fair transition challenges in Slovenia 

Source: Eurostat, EU Labour Force Survey, EMPL-JRC GD-
AMEDI/AMEDI+ and DISCO(H) projects (see Table A8.1). 

Upskilling  and  reskilling  in  declining  and 
transforming  sectors  slightly  increased,  but 
skill  shortages  remain,  causing  bottlenecks. 
Skills are key for smooth labour market transitions 
and  help  keep  workers  in  the  labour  market 
without  their  numbers  being  reduced.  In  energy-
intensive 
in 
education  and  training  increased  from  9.6%  in 
2015  to  17.5%  in  2023,  above  the  EU  average 
(10.9%).  In  Slovenia,  40%  of  the  SMEs  think  that 
the  skills  required  for  greening  business  activities 
are  becoming  more  important  (EU:  42%) (60).  If 
Slovenia matches its projected contribution to the 
EU’s 2030 renewable energy target, between 200 

industries,  workers’  participation 

(58)  Workforce-related calculations are based on the EU Labour 
Force Survey. Note, in the 2023 country report for Slovenia, 
such indicators were calculated based on employment 
statistics in the national accounts. This may result in limited 
comparability across the two reports. 

(59)  The 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. 

(60)  Eurobarometer on skills shortages, recruitment, and retention 

strategies in small and medium-sized enterprises. 

(61)  Based on the European Labour Authority 2024 EURES Report 
on labour shortages and surpluses 2023, i.e., data submitted 
by the EURES National Coordination Offices. 

(62)  Skills and knowledge requirements are based on the 

European Skills Competences and Occupations (ESCO) 
taxonomy on skills for the green transition. 

45 

0.00.51.01.52.0Greenhouse gasemissions per workerEmployment inEnergy-IntensiveIndustriesEducation & trainingin Energy-IntensiveIndsutriesEnergy povertyTransport poverty(proxy)Carbon inequalitySI Latest vs EU LatestEU LatestSI 2015 vs EU Latest 
 
 
  
 
 
Table A8.1:  Key indicators for a fair transition in Slovenia 

Source: Eurostat (env_ac_ainah_r2, lfsa_egan2d, ilc_mdes01), EU Labour Force Survey (break in time series in 2021), EMPL-JRC 
GD-AMEDI/AMEDI+ and DISCO(H) projects. 

and  1  000  additional  skilled  workers  will  be 
needed  for  the  deployment  of  wind  and  solar 
energy,  which may  require  an  investment in  skills 
of  EUR  1.4-1.7  million (63). To  address 
this 
challenge, specific investments under the Recovery 
and Resilience Facility and the Just Transition Fund 
provide  training  for  reskilling  workers  in  regions 
affected by the transition, together with a broader 
training  offer  at  national  level  and  flexibility 
mechanisms to encourage in-company  training. In 
into 
Slovenia,  ESF+  funds  will  be 
vocational  education  and  training  programmes, 
which  also 
include  measures  on  the  green 
transition and the promotion of lifelong learning to 
help  in  the  adaption  to  the  digitalisation  and 
automation of jobs.  

invested 

Energy  poverty  indicators  have  worsened 
slightly  following  the  spike  in  energy  prices 
but  remain  well  below  the  EU  average.  The 
share  of  the  population  unable  to  keep  their 
homes  adequately  warm  fell  from  5.6%  in  2015 
to  2.6%  in  2022,  well  below  the  EU  average 
(9.3%) (64). However, the indicator increased by 0.9 
percentage points between 2021 and 2022 on the 
back  of  energy  price  spike  due  to  supply 
constraints caused by the COVID-19 pandemic and 
Russia’s  war  of  aggression  against  Ukraine, 
despite  the  emergency  measures  implemented  in 
Slovenia, while increasing slightly to 2.6% in 2022. 
In  2022,  only  7.3%  of  the  population  at  risk  of 
poverty  (AROP)  and  2.5% of  lower  middle-income 
households  were  affected.  However,  in  January 
2023,  47.5%  of  the  AROP  population  spent  more 
than 6% of their budget on private transport fuels 
(EU:  37.1%) (65).    The  Action  Plan  to  Alleviate 

(63)  EMPL-JRC AMEDI+ project. 

(64)  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. 

(65)  Affordability of private transport fuel is one key dimension of 
transport poverty. The indicator has been developed in the 
context of the EMPL-JRC GD-AMEDI/AMEDI+ projects. 

Energy  Poverty  was  adopted  in  November  2023 
for  a  three-year  period.  The  budget  of  EUR  33.8 
million  (of  which  EUR  15  million  from  Cohesion 
policy  -  ERDF)  earmarked  for  its  implementation 
will  support  8  000  households  mainly  through 
investments 
in  renewables  and  energy-saving 
measures. 

Graph A8.2: Job vacancy rate in transforming 
sectors and mining and quarrying 

B - Mining and quarrying 
C - Manufacturing 
D - Electricity, gas, steam and air conditioning supply 
E - Water supply; sewerage, waste management and 
remediation activities 
F - Construction 
H - Transportation and storage 
Source: Eurostat jvs_a_rate_r2. 

Air  pollution  remains  a  critical  issue  leading 
to environmental inequalities in Slovenia. The 
average levels of air pollution in 2021 stood above 
the  EU  average  (12.2  vs  11.4  µg/m3  PM2.5),  with 
87% of the population living in regions exposed to 
critical levels of air pollution (66). This has led to a 
significant  impact  on  health,  affecting  vulnerable 
groups  in  particular,  and  an  estimated  1 191 
premature  deaths  annually  due  specifically  to  air 
pollution (67). In 2021, the consumption footprint of 

Methodology explained in Economic and distributional effects 
of higher energy prices on households in the EU. 

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

Quality Guidelines (annual exposure of 5µg/m3). 

(67)  EEA- Air Quality Health Risk Assessment 

46 

0.0%1.0%2.0%3.0%4.0%5.0%6.0%7.0%BCDEFHEU 2023SI 2023SI 2015IndicatorDescriptionSI 2015SIEUGHG per workerGreenhouse gas emissions per worker - CO2 equivalent tonnes14.112.6 (2022)14.3 (2022)Employment EIIEmployment share in energy-intensive industries, including mining and quarrying (NACE B), chemicals (C20), minerals (C23), metals (C24), automotive (C29)5.6%4.4% (2023)3.5% (2023)Education & training EIIAdult participation in education and training (last 4 weeks) in energy-intensive industries9.7%17.5% (2023)10.9% (2023)Energy povertyShare of the total population living in a household unable to keep its home adequately warm5.6%2.6% (2022)9.3% (2022)Transport poverty (proxy)Estimated share of the AROP population that spends over 6% of expenditure on fuels for personal transport33.5%47.5% (2023)37.1% (2023)Carbon inequalityRatio between the consumption footprint of the top 20% vs bottom 20% of the income distribution1.31.3 (2021)2.7 (2021) 
 
 
 
   
 
 
  
 
the 20% of the population with the highest income 
was  1.3  times  the  footprint  of  the  poorest  20% 
(EU:  1.8) (68).  For  both  groups,  the  footprint  is 
highest for food and housing.  

policy 

orientation, 

A stronger and more strategic orientation of 
a fair transition towards climate neutrality is 
needed. While green skills are integrated in some 
active  labour  market  measures,  no  operational 
definition  of  ‘green’  currently  exists  at  national 
level.  Slovenia  would  benefit  from  a  strategic 
cross-cutting 
addressing 
research gaps related to labour and social aspects 
of  the  green  transition  and  analyse  its  impact  on 
the  labour  market.  Slovenia  has  a  very  well-
developed  system  of  enabling  access  to  finance 
and  markets  for  SMEs.  Slovenia  would  benefit 
from  a  growth-friendly  and  green  tax  reform 
which  could  enable  a  shift  away  from  labour 
taxation  and  further  stimulate  labour  supply  and 
sustainable growth through a higher proportion of 
recurrent property taxes. Furthermore, it should be 
ensured  that  social  partners,  especially  workers’ 
organisations,  and  civil  society  actively  and 
meaningfully  participate  in  the  decision-making 
process, to achieve a just and fair transition (69). 

(68)  Developed in the context of the EMPL-JRC DISCO(H) project. 
Methodology explained in Joint Research Centre, 2024. 
Carbon and environmental footprint inequality of household 
consumption in the EU. JRC137520. The EU average refers to 
EU27 without Italy (household income data not available for 
IT in the HBS) 

(69)  Based on the monitoring review of the Council 

Recommendation on ensuring a fair transition towards 
climate neutrality, which took place in October 2023. 

47 

 
 
PRODUCTIVITY 
ANNEX 9: RESOURCE PRODUCTIVITY, EFFICIENCY AND CIRCULARITY 

The green transition of industry and the built 
environment,  in  particular  decarbonisation, 
resource  efficiency  and 
is 
Slovenia’s 
essential 
competitiveness (70). In this regard, priorities for 
Slovenia are the use of circular materials and the 
uptake of circular business models in industry and 
construction. 

circularity, 

boost 

to 

Slovenia  is  on  track  to  achieve  the  EU 
Circular  Economy  Action  Plan’s  goals. 
However, the material footprint is still higher than 
the EU average. After a drop in 2019 and 2020, it 
increased  to  16.6  tonnes  per  capita  in  2022  – 
versus  an  EU  average  of  14.9  tonnes  per  capita. 
Between  2010  and  2020,  the  amount  of  total 
waste  produced increased  from  2.3  to  3.6  tonnes 
per  capita,  below  the  EU  average. The  draft 
updated  national  energy  and  climate  plan 
recognises  circular  economy  as  a  key  tool  for 
decarbonisation  and  competitiveness.  Slovenia 
identifies  the  transition  to  low-carbon  circular 
economy  as  a  key  priority  for  the  overall 
sustainable  development  of  the  country.  To 
increase  material  efficiency,  it  identifies  a  set  of 
measures 
innovation,  public 
procurement,  waste  prevention,  product  design, 
reuse, 
reparability  of  products  and  public 
awareness as well as legislative amendments. 

in  research  and 

Graph A9.1: ETS emissions by sector since 2013 

Source: European Commission 

In  2023,  the  sectors  covered  by  the  EU 
emissions 
in 
Slovenia (71)  emitted  27%  less  greenhouse 

trading 

system 

(ETS) 

in  2019,  with  the 

gases  than 
largest 
decrease  between  2021  and  2022.  In  2023, 
70%  of  greenhouse  gases  emitted  by  Slovenia’s 
ETS  installations  came  from  power  generation, 
significantly  more  than  the  EU  average  (57%). Of 
the  total  emissions  from  all  industry  sectors, 
cement,  and  lime  production  emitted  53%,  30% 
came from other industries (72), and 18% from the 
metals  industry.  Between  2019  and  2023,  the 
power  sector 
registered  a  higher  emissions 
reduction  (28%)  than  the  industry  sectors  (23%). 
Between  2013  and  2023,  greenhouse  gas 
emissions  declined  by  44%  in  power  generation 
and by 18% in industrial manufacturing, leading to 
a  total  greenhouse  gas  reduction  of  38%  in  this 
period. There is still room for improving Slovenia’s 
industrial  efficiency. 
In  2022,  the  secondary 
material  use  rate  dropped  to  9.4%  versus  an  EU 
average of 11.5%. Resource productivity increased 
at  a  slower  pace  and  reached  2.04  purchasing 
power  standards  per  kilogram  (PPS/kg)  in  2022 
versus  an  EU  average  of  2.45  PPS/kg.  Resource 
the 
productivity 
economy  uses  material  resources  to  produce 
wealth.  Improving  resource  productivity  can  help 
minimise  negative  impacts  on  the  environment 
and  reduce  dependence  on  volatile  raw  material 
markets.  Slovenia  was  dependent  on  imports  for 
46.3%  of  materials  used  in  2022,  compared  with 
an  EU  average  of  22.4%,  making  the  country 
comparatively  more  vulnerable  to  supply  chain 
disruptions.  To  tackle  water  scarcity,  Slovenia 
reused  26.25  million  m3  of  water  in  2019  for 
industrial and agricultural activities.  

expresses  how 

efficiently 

Slovenia’s  industry  is  progressing  in  taking 
up  circular  economy  approaches.  The  2022 
Eco-Innovation  Scoreboard  placed  the  country  in 
the  ‘eco-innovation  average  performers  group’, 
with  a  score  of  115.9.  As  of  September  2023, 
Slovenia totalled 60 awarded EU Ecolabel licences 
and 158 products with the EU Ecolabel, showing a 
rather  low  but  steadily  increasing  take-up  of 
products and licences. 

(70)  See also Annexes 6, 7 and 12. 

(71)  This analysis excludes air travel.  For more details and the 
data sources, see Weitzel, M; van der Vorst, C. (2024), 
Uneven progress in reducing emissions in the EU ETS, JRC 
Science for policy brief, JRC138215, Joint Research Centre. 

(72)  Of the greenhouse gas emissions classified as coming from 
the ‘other’ group, it appears that 50% in fact relate to the 
manufacture of paper and paperboard, and 20% (in 2023) to 
the manufacture of certain non-metallic mineral products 
(NACE code 23.99).  

48 

00.20.40.60.810123456720132014201520162017201820192020202120222023Emissions relative to 2013Mt CO2eCement & LimeChemicalsMetalsRefineriesPower generationOtherSlovenia (both axes) 
 
 
  
 
 
 
 
 
Table A9.1:  Circularity indicators 

Source: Eurostat, European Environment Agency 

room 

there 

is  still 

Slovenia  has  made  significant  progress  with 
its  waste  management  system  over  the  last 
for 
decade,  but 
improvement. The municipal waste recycling rate 
stood  at  62.6%  in  2022,  meeting  the  2025 
recycling  target  of  55%  well  in  advance.  With  a 
recycling  rate  of  plastic  packaging  at  50%  in 
2021, the country has also reached the packaging 
waste  recycling  targets  for  2025.  Still,  problems 
exist with the purity of separately collected waste 
and  the  management  of  disposed  packaging. 
Furthermore,  Slovenia 
top 
performers  in  e-waste  recycling,  with  a  rate  of 
87.1% in 2021. Moreover, the country is not at risk 
of  missing  the  2035  landfilling  target.  Innovation 
in  waste  treatment  technologies  is  still  low,  as 
illustrated  by  the  fact  that  no  new  patents  were 
registered in 2021. 

is  among 

the 

In  2020, 

increasing  since  2015. 

Slovenia could use its existing building stock 
more  efficiently.  In  2023,  Slovenia’s  building 
permits index, based on useful floor area, stood at 
169.6 (73)  on  average.  Construction  activity  has 
been 
the 
residential floor area per capita was 35.70 m2 per 
capita,  versus  an  EU  average  of  52.33 m2  per 
capita.  The  non-residential  floor  area  per  capita 
also  stood  below  the  EU  average  in  2020,  at 
15.64 m2  per  capita  versus  an  EU  average  of 
19.40 m2  per  capita;  it  has  remained  relatively 
stable  over  time (74).  Slovenia  submitted  a  long-
term  renovation  strategy  in  2020.  It  recognises 
building  construction  and  renovation  as  a  priority 
area  for  the  transition  to  a  low-carbon  circular 
economy. 

(73)  2015=100. Statistics | Eurostat (europa.eu) 

(74)  EU Building Stock Observatory - Factsheets (europa.eu). 

49 

Graph A9.2: Treatment of municipal waste 

Source: Eurostat 

The  built  environment  could  decrease  its 
waste  generation  and  improve  its  treatment 
of  wastewater.  Construction  and  demolition 
waste  per  capita  increased  between  2012  and 
2020  but  remained  below  the  EU  average. 
Slovenia’s  recovery  rate  stood  at  90.4%  in  2021. 
Despite improvements, Slovenia does not perform 
well  in  wastewater  treatment  yet.  The  population 
connected  to  at 
least  secondary  wastewater 
treatment was only 67.6% in 2021, below the EU 
average  of  80.9%.  It  is  necessary  to  prioritise 
alignment with the higher EU standards to reduce 
environmental pressures  and  pollution  of  water 
ecosystems  and  to  restore  biodiversity  of  rivers, 
lakes, and sea waters. 

486504487511487010020030040050060020182019202020212022Kg per capita Waste treatment to be determinedLandfill/disposalTotal incineration (including energy recovery)Composting and digestionMaterial recyclingEU-27201820192020202120222023EU-27Latest yearIndustryResource productivity (purchasing power standard (PPS) per kilogram)1.82.12.02.12.0-2.52022Circular material use rate (%)10.010.29.910.19.4-11.52022Eco-innovation index (2013=100)97.0100.4106.8111.0115.9-121.52022Recycling of plastic packaging (%)48.850.344.650.0--40.72021Cost of air emissions from industry (EUR bn)2.01.61.51.6--352.72021Built environmentRecovery rate from construction and demolition waste (%)98.0-97.090.4--89.02020Soil sealing index (base year = 2006)103.1-----103.42018Non-residential floor area (m2 per capita)15.515.615.6---18.02020Waste backfilled (%)----70.6-9.92020 
 
            
 
 
   
 
ANNEX 10: DIGITAL TRANSFORMATION 

infrastructure/connectivity 

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  Slovenia’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).  Slovenia  allocates  20%  of  its  total  RRP 
(EUR 0.5 billion) (75).  Under 
budget 
Cohesion Policy,  an additional  EUR 0.3 billion (9% 
of  the  country’s  total  Cohesion  Policy  funding)  is 
allocated 
digital 
transformation (76). 

to  digital 

country’s 

and 

the 

to 

The  Digital  Decade  Policy  Programme  sets 
out  a  pathway  for  EU’s  successful  digital 
transformation  by  2030.  Slovenia’s  national 
roadmap outlines the actions it intends to take to 
reach the objectives and targets at national  level. 
The first Report on the State of the Digital Decade 
highlighted the need to accelerate and deepen the 
collective efforts to reach the EU-wide targets and 
objectives (77).  Among  others,  a  digitally  skilled 
population 
the  development  and 
adoption  of  digital  technologies  and  leads  to 
productivity  gains  and  new  business  models.  It 
also  leads  to  higher  inclusion  and  participation  in 
an environment increasingly shaped by the digital 
transformation (78). 
technologies, 
infrastructure  and  tools  all  play  a  role 
in 
addressing 
the  current  structural  challenges, 
including  strategic  dependencies,  cybersecurity 
and climate change.  

increases 

Digital 

(75)  The share of financial allocations that contribute to digital 
objectives has been calculated using Annex VII to the 
Recovery and Resilience Facility Regulation.  

(76)  This amount includes all investment specifically aimed at or 
substantially contributing to digital transformation in the 
2021-2027 Cohesion Policy programming period. The source 
funds are the European Regional Development Fund, the 
Cohesion Fund, the European Social Fund Plus, and the Just 
Transition Fund. 

(77)  European Commission (2023): Report on the State of the 

Digital Decade 2023, 2023 Report on the state of the Digital 
Decade | Shaping Europe’s digital future (europa.eu). 

(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) and OECD (2019): Going Digital: 
Shaping Policies, Improving Lives – 
Summary, https://www.oecd.org/digital/going-digital-
synthesis-summary.pdf. 

In  digital  skills,  Slovenia’s  performance  is 
below  the  EU  average,  and  the  need  for  a 
digitally  skilled  workforce  remains  a  key 
challenge. Slovenia’s performance on basic digital 
skills,  ICT  specialists  and  female  ICT  specialists 
has decreased and remains below the EU average. 
Moreover, 
far  behind 
innovation  leaders  in  the  EU.  78%  of  Slovenian 
enterprises  that  recruited  ICT  specialists  reported 
difficulties in finding sufficiently skilled employees, 
which is the highest percentage in the EU (79). 

the  country 

remains 

digital 

infrastructure/connectivity, 
In 
Slovenia  shows  a  mixed  performance.  The 
country’s  gigabit  connectivity,  measured  by  very 
high capacity  network (VHCN) coverage, is around 
the  EU  average,  but  the  country  still  faces 
challenges  in  rural  areas,  where  only  57%  of 
households  are  covered.  Overall  5G  coverage 
improve  considerably,  but  still 
continues 
average.  
EU 
remains 
As  set  out 
its  RRP,  Slovenia  engages 
considerably  in  EU-wide  collaboration  to  develop 
infrastructure 
technologies  by 
participating  in  multi-country  projects  on  cloud 
infrastructure  and  services,  semiconductors  and 
quantum communication infrastructure.  

for  advanced 

below 
in 

the 

to 

in 

The  performance  of  Slovenia 
the 
digitalisation of businesses slightly declined. 
The  country  performs  below  the  EU  average  for 
SMEs with at least a basic level of digital intensity. 
It  also  scores  below  the  EU  average  for  the 
indicator  that  measures  –  in  alignment  with  the 
respective  Digital  Decade  target  –  the  take-up  of 
at  least  one  of  the  following  three  technologies: 
cloud services, data analytics (big data) or artificial 
intelligence.  In  more  detail,  Slovenia  has  the 
lowest  score  in  the  EU  for  the  use  of  data 
analytics,  enterprises’  performance  in  using  cloud 
services  has  slightly  declined,  while  it  remains 
rather  stable  on  AI.  Moreover,  there  is  room  for 
improvement in the expenditure on R&D in the ICT 
sector. . The RRP includes measures to support the 
digitalisation  of  companies  that  aim  to  improve 
performance  in  this  area.  One  example  is  the 
Business Digital Transformation Programme, under 
which  consortia  of  large  companies  and  SMEs 
collaborate  to  extend  the  use  of  advanced 
technologies  and 
transfer  of  digital 
competences.  In  2022,  2.2%  of  enterprises  in 

the 

(79)  Source: Eurostat – European Union Survey on ICT Usage and 

e-Commerce in Enterprises. 

50 

 
 
 
 
 
Table A10.1:Key Digital Decade targets monitored by the Digital Economy and Society Index indicators 

a score of 88 out of 100 versus 79). Many of the 
digital  transformation  measures  in  the  Slovenian 
RRP are focused on public services. Among others, 
to  remove  obstacles  to  the  provision  of  digital 
public services and processes, including to enlarge 
in 
electronic 
the 
administrative processes.  

procedures 

scope 

of 

Source: Digital Economy and Society Index 

Slovenia  reported  ICT  service  outage  due  to 
cyberattacks  (e.g.  ransomware  attacks,  denial  of 
service  attacks).  Over  the  same  year,  27%  of 
enterprises  developed  or  reviewed  their 
ICT 
security policy within the previous 12 months.  

well 

fairly 

performs 

Slovenia 
on 
digitalisation  of  public  services.  It  is  coming 
closer  to  catching  up  with  the  EU  average  for 
digital public services for citizens and is very close 
to  the  EU  average  for  digital  public  services  for 
businesses. By contrast, access to electronic health 
records for citizens is above the EU average (with 

51 

EUDigital Decade target by 2030 2022202320242024(EU)Digital skillsAt least basic digital skills50%50%47%56%80%% individuals20212021202320232030ICT specialists (1)4.8%4.5%3.8%4.8%20 million% individuals in employment aged 15-7420212022202320232030Digital infrastructure/connectivityFixed very high capacity network (VHCN) coverage72%76%79%79%100%% households20212022202320232030Fibre to the premises (FTTP) coverage (2)72%76%79%64%-% households2021202220232023Overall 5G coverage37%64%82%89%100%% populated areas20212022202320232030Digitalisation of businessesSMEs with at least a basic level of digital intensity55%NA50%58%90%% SMEs2021202320232030Data analyticsNANA19%33%-% enterprises20232023Cloud38%38%36%39%-% enterprises2021202120232023Artificial intelligence12%12%11%8%-% enterprises2021202120232023AI or cloud or data analytics (3)NANA45%55%75%% enterprises202320232030Digitalisation of public servicesDigital public services for citizens69717779100Score (0 to 100)20212022202320232030Digital public services for businesses84838485100Score (0 to 100)20212022202320232030Access to e-health recordsNA808879100Score (0 to 100)2022202320232030(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.Slovenia(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. 
 
  
 
ANNEX 11: INNOVATION 

performance 

Slovenia  is  a  ‘moderate  innovator’,  and  the 
country’s  performance  gap  with  the  EU  is 
becoming  larger.  According  to  the  2023  edition 
of  the  European  Innovation  Scoreboard (80),  its 
by  2.9 
innovation 
percentage points since 2016, at a lower rate than 
the  EU’s  (8.5pp).  Its  overall  performance  remains 
slightly  below  the  EU  average  (95.1%  of  the  EU 
performance).   The  main  obstacles  hindering 
Slovenia’s  performance  continue  to  be  low  levels 
of  venture  capital  and  of  R&D  expenditure  in  the 
public sector.  

increased 

R&D  intensity (81)  stood  at  2.11%  of  GDP  in 
2022,  below  the  European  average  (2.24%) 
and  still  far  from  its  2013  level  (2.56%). 
After  a  sharp  decline  between  2014  and  2017, 
R&D  intensity  has  been  on  an  increasing  trend 
since  2018.  To  sustain  this  trend,  the  Slovenian 
scientific  research  and  innovation  strategy  2030 
contains  clear  commitments  to  raising  R&D 
investments  with  a  view  to  reaching  a  target  of 
1.25%  of  GDP  for  public  R&D  investment  and 
investment  by 
3.5%  of  GDP  for  total  R&D 
2030 (82). As such, it aims to provide a stable and 
predictable  framework  for  R&I  funding  over  the 
long term.  

and 

enhance 

governance 

Slovenia is taking concrete steps to  improve 
R&I 
the 
performance  of  its  public  research  system. 
intensity,  which  steadily  declined 
Public  R&D 
between  2010  and  2017,  has  been  on  an 
increasing trend since then and reached 0.60% of 
GDP  in  2022.  It  is  not  yet  back  to  its  2010  level, 
however,  and  remains  below  the  EU  average. 
Human resources are a competitive advantage and 
Slovenia scores highly when it comes to population 
involved  in  lifelong  learning.  The  percentage  of 
new graduates in science and engineering is close 
to  the  EU  average  and  Slovenia  ranks  relatively 
high  in  the  number  of  researchers  employed  by 
the  business  sector.  While  the  country’s  scientific 
performance,  measured  by  the  share  of  scientific 
publications  within 
top  10%  most-cited 
publications worldwide, has improved over the last 

the 

(80)  2023,  European 

Innovation  Scoreboard,  country  profile: 

Slovenia, ec_rtd_eis-country-profile-si.pdf (europa.eu). 

(81)  Defined  as  gross  domestic  expenditure  on  R&D  as  a 

percentage of GDP. 

(82)  Resolution  on 

the  Slovenian  scientific 

research  and 
(ReZrIS30),  adopted  by  the 

innovation  strategy  2030 
National Assembly on 23 March 2022. 

decade, it remains below the EU average. With the 
adoption of the Act on Research, Development and 
Innovation Activities, which is part of the recovery 
and  resilience  plan  (RRP),  Slovenia  introduced  a 
key  reform  aimed  at  introducing  performance-
based  funding  of  research  organisations  and 
facilitating 
the 
researchers’  mobility 
recruitment  of  foreign  talents.  In  addition,  a  new 
Programme  Committee  was  recently  established 
to  improve  the  coordination  of  R&I  policy  among 
the different actors involved. 

and 

financed 

on  R&D 

expenditure 

links  between  academia  and 
Stronger 
businesses  are  essential  for  the  deployment 
of innovations which are critical for the twin 
transition.  While  the  share  of  public-private 
scientific  co-publications  continues  to  increase, 
reaching  its  highest  level  since  its  peak  in  2014 
(9.8%  of  total  number  of  publications),  Slovenia’s 
public 
by 
businesses (83)  remains  low  (0.032%  of  GDP  and 
5.81%  of  total  public  expenditure  on  R&D).  The 
adoption of the Scientific Research and Innovation 
Activities  Act  enables  more  effective  and 
consistent  implementation  of  scientific  research 
and innovation policy measures. A new joint Public 
Agency  for  Scientific  Research  and  Innovation 
Activities  of  the  Republic  of  Slovenia  (ARIS)  was 
established,  adding  an  innovation  component  to 
existing 
research  activities.  The  new  ARIS 
introduced an innovation pillar to scientific work to 
link  and  transition  from  basic 
enhance  the 
research 
the  connection 
between  scientific  research  and  society.  This 
makes 
improving 
important  step 
transfer.  Nevertheless,  supportive 
knowledge 
measures,  such  as  improving  coordination  of 
relevant 
be 
strengthened (84),  building  on  the  efforts  already 
in  place  as  part  of  Slovenia’s  smart 
put 
specialisation  strategy.  These  efforts  aim  to 
integrate  the  economy,  knowledge  institutions, 
local communities, the state, and other innovation 
the 
(quintuple  helix) 
stakeholders 
enhancement of strategic research and innovation 
partnerships (SRIPs). 

to  application,  and 

stakeholders, 

through 

it  an 

need 

to 

in 

(83) The indicator shows the volume of contractual research, e.g. 
companies funding research institutions to conduct research 
for them. 

(84)  STIP  Compass  (OECD)  https://stip.oecd.org/stip/interactive-

dashboards/countries/Slovenia. 

52 

 
 
 
 
 
 
 
 
 
 
Table A11.1:Key innovation indicators 

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

investment 

The  lack  of  venture  capital  continues  to 
hinder  innovative  start-ups  from  scaling  up 
in  Slovenia.  Venture  capital 
in 
Slovenia amounts to 0.007% of GDP, which is the 
second  lowest  value  in  the  EU.  Access  to  finance 
during the scale-up stage remains a challenge for 
innovative  SMEs,  which  affects 
investment-
intensive 
such  as  deep-tech  and 
If 
manufacturing 
implemented  well,  the  recently  adopted  strategy 
for  the  development  of  the  capital  market  could 
stimulate  the  advancement  of  innovative  SMEs 
with  high  potential  for  fast  and  sustainable 
growth. 

Annex  12). 

sectors 

(also 

see 

patents  filed  under  the  PCT.  The  transition  to  a 
low-carbon  circular  economy  depends  on  the 
development  of  new  breakthrough  technologies. 
Slovenia  counts  several  demonstrators  for  low-
carbon technologies funded by the EU but needs to 
accelerate 
innovation  as  well  as  pilot  and 
demonstration  activities  and  increase  investment 
incentives for this purpose86. For 2024, the RRP for 
the  co-financing  of  R&I 
Slovenia  envisages 
investments 
country 
could  help 
increasingly  mobilise  its  R&I  capacities  towards 
the twin transition. 

that 

the 

Slovenia  is  underperforming  in  developing 
environment-related technologies but is keen 
to  improve.  A  high  share  of  energy-intensive 
industry  implies  vulnerability  in  complying  with 
climate  policies  and  Slovenia  shows  weaker 
performance when it comes to the development of 
green  technologies85,  as  reflected  in  the  limited 
in  all 
share  of  environment-related  patents 

(85)  2023,  European  Innovation  Scoreboard,  country  profile: 
(europa.eu). 
ec_rtd_eis-country-profile-si.pdf 

Slovenia, 
Climate change indicators compared to EU. 

53 

(86)  Demonstrators  are  projects 

that  demonstrate  how 
in  a  suitable  or  operational 
technologies 
environment.  Their  aim  is  to  accelerate  the  transfer  and 
uptake  of  clean  innovative  technologies  and  private  and 
public follow-up financing for their faster deployment. 

function 

R&D intensity (GERD as % of GDP)2.052.22.142.132.112.24Public expenditure on R&D as % of GDP0.660.520.560.550.60.73Business enterprise expenditure on R&D (BERD) as % of GDP1.391.671.571.561.481.48Scientific publications of the country within the top 10% most cited publications worldwide as % of total publications of the country 6.26.87.759.6Patent Cooperation Treaty (PCT)  patent applications per billion GDP (in PPS)3.11.81.973.4Public-private scientific co-publications as % of total publications7.89.29.59.79.87.6Public expenditure on R&D financed by business enterprise (national) as % of GDP0.080.050.0370.0320.054New graduates in science & engineering per thousand pop. aged 25-3413.514.615.21616.9Total public sector support for BERD as % of GDP0.2280.2260.2270.204R&D tax incentives: foregone revenues as % of GDP0.0520.1180.0820.104Share of environment-related patents in total patent applications filed under PCT (%)9.958.634.514.7Venture capital (market statistics) as % of GDP0.0010.0090.0020.0030.0070.085Employment share of high growth enterprises measured in employment (%)10.5910.68 12.512021Slovenia201020152020Key indicators 2022EU average (1)Finance for innovation and economic renewalQuality 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 

related 

recovery 

Following  a  quick 
from 
the 
Slovenia’s 
pandemic, 
COVID-19 
competitiveness is facing challenges. The IMD 
World Competitiveness Center ranks the country as 
42nd out of 64 in 2023. Slovenia’s slight downward 
trend 
to  business  and  government 
efficiency since 2019 has continued after a small 
upward  movement  in  2022 (87).  Inflation,  high 
energy  and  raw  material  prices,  a  rising  producer 
price  index,  and  global  supply  chain  constraints 
have particularly impacted the competitiveness of 
export-oriented 
(e.g. aluminium  and 
steel  and  paper  companies,  the  chemical  industry 
and  the  automotive  ecosystem).  Competitiveness 
indicators  have  deteriorated  overall  (including  for 
production 
energy-intensive 
labour  costs 
volumes  decreasing  and  unit 
increasing  (88).  These  industries  are  also  facing 
challenges  and  report  a  lack  of  funds  to  finance 
their transition to net-zero, which is also hampered 
by lengthy administrative procedures and a lack of 
investment in research and development.  

industries)  with 

industries 

in 

research 

functions, 

such 
is 

as 
reflected 

Slovenia  is  a  small,  open  and  diversified 
economy  with  one  of  the  highest  rates  of 
trade  integration  for  goods  in  the  single 
market.  However,  in  terms  of  services  trade, 
Slovenia  is  among  the  group  of  Member  States 
with the highest restrictiveness (Table  A12.1). The 
economy  continues  to  integrate  into  global  value 
chains,  for  instance  by  upgrading  production  with 
and 
other 
development.  This 
increasing 
economic complexity and a higher share of exports 
of  medium-  and  high-technology 
intensive 
products (88). Intra-EU trade represented 61.4% of 
GDP  in  2023  (mostly  due  to  this  high  integration 
of  trade  in  goods)  (Table  A12.1),  so  Slovenian 
exports  are very  concentrated.  They  are  therefore 
dependent  on  economic  developments  in  certain 
markets  and  vulnerable  to  cost  pressure  and 
decreasing  foreign  demand,  with  Germany,  Italy, 
Austria  and  Croatia  as  Slovenia’s  main  trading 
imported  a 
partners.  Slovenia  exported  and 
smaller share of goods within the single market in 
2023 than in 2022, with trade in goods with non-
EU  countries  increasing  considerably  (particularly 
exports)  (89).  However, this trend  is  largely  due to 
transactions  by  one  pharmaceutical  company 

between  its  logistical  centre  in  Slovenia  and 
headquarters in Switzerland.  

The  productivity  gap  with  the  EU  average 
persists  and  is  currently  at  levels  similar  to 
those  before  the  2008  financial  crisis.  In 
2023,  Slovenia’s  labour  productivity  stood  at 
around 85% of the EU average in terms of GDP in 
purchasing  power  standards  per  hour  worked  as 
well  as  per  person  employed  (90).  A  rather  low 
level  of  private 
is  hampering 
productivity  growth  as  well  as  the  country’s 
innovation  capacity.  However,  as  regards  growth 
of  total  factor  productivity  (TFP),  Slovenia  is 
outpacing 
Italy  and 
its  neighbours  Croatia, 
Hungary. TFP therefore provides robust support to 
the  overall 
labour  productivity  growth,  with 
deceleration  in  labour  productivity  due  to  the 
negative contribution of capital deepening. 

investment 

Graph A12.1: Real labour productivity in industry 
per hour worked 

Source: Eurostat, NAMA_10_LP_A2 ; Index, 2015=100 

Labour  productivity  in  industry  is  above  the 
EU  average  and  a  key  driver  of  productivity 
in  this  very  industrialised  economy 
(see 
Graph A12.1).  Over  the  last  few  years,  Slovenia’s 
productivity  growth  in  industry  has  been  faster 
than the EU  average. Following a decline of 4.6% 
in  2022,  which  had  followed  a  considerable 
growth of 7.1% in 2021 - a rebound from 2020 – 
2023  saw  a  very  modest  growth  of  labour 
productivity  in  industry  (0.1%)  (see  Graphs  A12.1 
and  A12.2).  Furthermore,  the  share  of  Slovenian 
industry  in  terms  of  value  added  to  GDP  remains 
higher  than  the  EU  average  (28.1%  in  2022  vs 
23.5%)  (91). 
in 
industry, for which Slovenia has one of the highest 

labour  shortages 

  Persistent 

(87)   IMD World Competitiveness Ranking. 

(88)   IMAD Productivity Report 2023. 

(90)   AMECO database, European Commission. 

(89)   Statistical Office of the Republic of Slovenia.  

(91)   World Bank - Industry, value added (% of GDP). 

54 

80859095100105110115120201520162017201820192020202120222023European Union- 27 countries (from 2020)  Industry (except construction)Slovenia Industry (except construction) 
 
 
   
 
 
rates  in  the  EU  (Table  A12.1),  present  a  further 
challenge,  with  vacancy  rates  also  above  the  EU 
average (regarding labour and skills shortages, see 
also Annex 14). This problem is exacerbated by an 
ageing  population  and  a  shrinking  number  of 
people  in  the  most  active  age  group  (20-64 
years) (88).  A  particular  shortage  of  ICT  specialists 
may  also  complicate  digital  transition  of  the 
economy (see also Annex 10). 

Graph A12.2: Labour productivity and unit labour 
costs at industry level 

stage  with 

Slovenia  has  successfully  advanced  to  the 
the  Once-Only 
production 
Technical  System  (OOTS) (93),  showcasing  its 
capability  through  successful  cross-border 
OOTS  transactions  during  a  test  dry-run.  As 
part  of  the  Single  Digital  Gateway  Regulation (94), 
the  system  will  enable  the  automated  cross-
border  exchange  of  evidence  between  competent 
authorities, improving online access to information, 
administrative  procedures  and  assistance  within 
the  EU.  The  onboarding  of  Slovenian  competent 
authorities  is  crucial  for  the  system  to  function 
smoothly and to reduce administrative burden.  

for 

the 

energy 

Tackling  process-related  barriers  related  to 
the deployment of renewables is particularly 
transition, 
important 
decarbonisation  and  ensuring  Slovenia’s 
energy  security.  Such  barriers,  as  reviewed  by 
the  Single  Market  Enforcement  Taskforce  (SMET), 
concern 
lengthy  permitting  procedures  and 
understaffed authorities. Slovenia is implementing 
measures  (including  through  the  RRP)  to  address 
these issues, but permitting procedures can still be 
very  lengthy  (see  also  Annex  7).  Slovenia’s  high 
level  of  industrialisation  provides  opportunities 
regarding 
net-zero 
technologies and Slovenian companies are already 
active  in  the  production  of  heat  pumps,  PV 
modules, batteries and storage (see also Annex 7). 
However,  Slovenia 
in  the 
development  of  such  technologies  and  this  is 
reflected  in  its  low  share  of  environment-related 
patents (see Annex 11). 

the  manufacturing 

is  underperforming 

of 

Slovenia is an attractive location for foreign 
direct  investment  and  its  economic  growth 
has outpaced that of many other EU Member 
States in recent years. However, a more modest 
rate of growth due to inflation, high energy prices 
and  the  impact  of  Russia’s  war  of  aggression 
against  Ukraine  may  affect  FDI  in  the  future.  In 
2022,  the  largest  FDI investor  in  the  country  was 
Austria (with a focus on manufacturing and trade, 
maintenance  and 
repair  of  motor  vehicles) 
followed  by  Luxembourg,  Switzerland,  Germany 
and  Croatia.  Regarding  investment  in  general,  a 
lower  share  of  firms  than  the  EU  average  is 
(Table  A12.1), 
reporting 

investment  obstacles 

Source: Eurostat, NAMA_10_LP_A21 ; Index, 2015=100 

Challenges  remain  despite  measures  to 
improve  the  business  environment.  Slovenia 
has  taken  several  measures  in  recent  years  to 
make  it  easier  to  do  business,  to  reduce  the 
administrative  burden  (for  instance  by  amending 
insolvency legislation and establishing a one-stop-
shop 
/  single  point  of  contact  system  for 
businesses)  and  to  attract  investment.  Overall, 
however,  obstacles  to  companies  remain  rather 
high and are related to, for instance, the efficiency 
of  state  institutions,  excessive  red  tape  and 
lengthy  procedures  (92).  The  Slovenian  recovery 
and  resilience  plan  (RRP)  also  aims  to  address 
such  challenges  through,  for  instance,  the  two 
Debureaucratisation  Acts,  which  endeavour  to 
reduce the burden of and digitalise administrative 
procedures.  

(92)   IMAD Development Report 2023. 

(94)   Regulation (EU) 2018/1724. 

(93)   Implementing Regulation (EU) 2022/1463. 

55 

90100110120130140150201520162017201820192020202120222023% of EUAgriculture, forestry and fishingIndustry (except construction)ConstructionWholesale and retail trade, transport, accommodation and food service activitiesInformation and communicationFinancial and insurance activitiesProfessional, scientific and technical activities; administrative and support service activities 
  
 
 
despite  an 
compared to 2022 (95).  

increase  of  this  share 

in  2023 

refused 

rejected  or 

With  an  underdeveloped  equity  market, 
financing  is  heavily  skewed  towards  loans, 
and  access  to  finance  remains  a  challenge 
for  companies  (particularly  SMEs).  Access  to 
loans remains above the EU average (Table A12.1 
with Slovenia also having one of the lowest shares 
of 
loans.  However,  as 
measured by the equity composite indicator in the 
EIF Access to Finance Index, Slovenia remains one 
of  the  weakest  performers  when  it  comes  to 
access to equity finance and its ranking compared 
with 
the  other  EU  Member  States  even 
deteriorated  in  2022  (compared  with  2021)  (96). 
Furthermore,  Slovenia  has  a  very  low  ratio  of 
venture capital investment to GDP, and this affects 
companies’ 
also 
Annex 11). The number of investors in the market 
is small, with institutional investors only playing a 
limited  role (97).  Strengthening  their  role  would 
help  preserve  capital  market  liquidity (88).  Policy 
action  in  this  area,  also  related  to  strengthening 
institutional  investors,  will  benefit  SMEs  during 
their scale-up stage. Through its RRP, Slovenia has 
been  taking  action  to  develop  its  capital  market 
and  improve  access  to  finance  (for  instance, 
through  its  Alternative  Investment  Funds  Act  and 
its Capital Markets Development Strategy).  

innovation 

capacity 

(see 

Competition in public procurement remains a 
challenge. Despite a decrease in 2023 compared 
to the preceding 3 years, Slovenia’s 44% share of 
contracts  awarded  where  there  was  just  a  single 
bidder is still very high and significantly above the 
EU  average  of  28%  (98).  In  addition,  a  quarter  of 
all  procedures  in  2023  were  unsuccessful  (99). 
However,  while  Slovenia’s  share  of  direct  awards 
was  still  above  the  EU  average,  it  was  reduced 
from  a  high  26%  in  2020  to  11%  in  2022  and 
10%  in  2023  (100).  A  very  low  share  of  contracts 
awarded  to  bidders  from  other  countries  (part  of 

(95)   EIB Investment Survey 2022. 

(96)   EIF SME Access to Finance Index. 

(97)  Bank of Slovenia Financial Stability Review of October 2023. 

(98)   The currently available data are preliminary. The technical 
preparation of a new public procurement platform means 
that only the regular data available in Tenders Electronic 
Daily (TED) have been taken into account. 

(99)   Commission calculations, based on TED. 

(100)  European Commission Single Market Scoreboard. 

the  Single  Market  and  beyond)  results  in  a 
business environment with few new entrants. This 
further  aggravates  the  lack  of  competition  in  this 
very small procurement market  with its structural 
deficiencies,  high  fragmentation  of  the  public 
procurement  system  and  complex  regulatory 
structure  where  public  procurement  legislation  is 
subject to frequent revisions  (101). 

To  address  these  challenges,  Slovenia  has 
started  to  implement  several  RRP  measures 
to  increase  competition,  digitalisation  and 
professionalisation  of  public  procurement. 
The  implementation  of  reforms  is  ongoing.  The 
development  of  the  planning  process,  thorough 
preparation  of  public  procurement  procedures, 
automation  of  processes  and  the  encouragement 
of  foreign  bidders  to  participate  in  the  market 
could  further  contribute  to  a  more  competitive 
environment  and  reduce  the  number  of  contracts 
awarded  based  on  the  lowest  price  instead  of  on 
the quality criterion or the best price-quality ratio. 
Moreover, 
e-
of 
-procurement 
decrease 
administrative burdens and improve access to the 
public  procurement  market. 
In  addition,  an 
aggregation  of  demand  techniques  can  also 
increase 
and 
professionalisation and lead to a further reduction 
in the share of negotiated procedures without prior 
publication. 

cost-effectiveness 

interoperability 

platforms 

greater 

will 

to 

enable 

The  government  has  taken  important  steps 
to more strategically leverage the 14,11% of 
that  Slovenia  spends  on  public 
GDP 
the 
In  2022, 
procurements. 
development  and  use  of  innovative  solutions  by 
public  authorities, 
the  government  adopted 
guidelines for innovative public procurement. It has 
also  been  developing  a  measurement  framework 
to monitor the environmental, social and economic 
effects  of  green  public  procurement 
(GPP). 
Measurement  results  create  a  baseline  for  the 
monitoring  of  the  effects  of  GPP  over  time  and 
can be used to improve GPP policies. 

The  share  of  SMEs  in  the  economy  is  higher 
than the EU average in terms of employment 
(73.3% compared to 64.4%) and value added 
to  51.8%)  (102),  with 
(66.9%  compared 

(101)  Ministry of Public Administration, statistical report on 

contracts awarded in 2022. 

(102)  SME Performance Review 2022/2023. 

56 

 
 
 
through 

companies  (103). 

SMEs 
lower  productivity 

generally 
domestically-oriented 
levels  than 
recording 
export-oriented 
The 
government  has  various  schemes  to  support  their 
financial 
growth  and  development 
incentives  and  a  strategy  for  export  promotion, 
with 
long-term 
competitiveness  and 
resilience  as  well  as 
attracting  sustainable  investment.  However,  the 
most serious problem identified by Slovenian SMEs 
is the availability of staff with the right skills, and 
this  may  lead  to  an  increasing  workload  for 
existing  staff,  increased  production  costs,  loss  of 
sales and reduced productivity  (104). 

ensuring 

aim 

the 

of 

Late  payments  can  affect  some  businesses, 
(particularly  SMEs),  but  they  are  not  a 
widespread  problem.  The  share  of  SMEs 
reporting  late  payments  is  below  the  EU  average 
and  decreased  in  2023  (compared  to  2022). 
Furthermore,  Slovenia  has  the  smallest  payment 
gap in the EU (i.e. the gap between the agreed and 
actual  payment  times)  when  it  comes  to  private 
sector/business-to-business  as  well  as  public 
sector  payments  (with  an  average  of  12  and  9 
days  respectively).  The  payment  gap  for  public 
sector  payments  clearly  decreased 
in  2023 
(compared to 2022) (Table  A12.1).  A considerably 
lower  share  of  companies  reports  that  they  were 
asked  to  accept  longer  payment  times  than  they 
felt  comfortable  with  from  the  public  sector 
compared  with  the  private  sector.  However,  47% 
of  enterprises  report  that  they  are  finding  it 
increasingly 
business 
environment to agree on payment terms which are 
fair for both sides  (105). 

difficult 

today’s 

in 

in 

The  role  of  state-owned  enterprises  (SOEs) 
may  be  hampering  investment, market  entry 
and  competition  in  some  sectors.  Despite 
improvements 
the  profitability  of  asset 
management of state-owned equity stakes, a lack 
of  good  corporate  governance  in  SOEs  may 
increase  inefficiency  and  impair  competitiveness, 
with  research  pointing  to  the  interference  of  the 
State and politics in company  operations  (92). The 
Slovenian State also continues to maintain a stake 
in non-strategic sectors (e.g. tourism).  

In 

the 

reduced 

the  number  of 

Barriers  also  remain  in  other  areas  that 
environment 
business 
impact 
the  past, 
(e.g. professional  services). 
Slovenia 
regulated 
professions  to  some  extent  (particularly  in  the 
crafts  sector),  but  regulatory  restrictiveness  is 
higher  than  the  EU  average  for  professions  such 
as  real  estate  agents,  lawyers,  civil  engineers, 
tourist  guides  (106).  Reducing 
architects  and 
regulatory  barriers  in  the  professional  services 
sector  will make  entry  easier  and improve  quality 
and  prices  (the  RRP  does  not  cover  this  aspect). 
The  fragmented  system  regulating  civil  engineers 
could  hinder  the  free  movement  of  professionals. 
The  rules  dividing  responsibility  between  different 
categories  of  professionals  in  the  same  area  of 
activity  could  reduce  the  proportionality  and 
efficiency  of  service  provision.  Variations 
in 
regional regulations governing tourist guides seem 
to  hinder  market  access  and  affect  both  national 
and cross-border service providers. 

Related  to  the  country’s  Single  Market 
performance,  Slovenia 
recorded  another 
improvement  in  its  transposition  deficit  in 
2023. This figure dropped to 0.8% (slightly above 
the EU average of 0.7%), which puts Slovenia back 
on track to reach the 0.5% target proposed in the 
Single  Market  Act.  The  conformity  deficit  (i.e.  the 
percentage of all directives transposed incorrectly) 
improved, decreasing to 0.8%, which is now below 
the  EU  average.  Slovenia  remains  below  the  EU 
average  as  regards  the  number  of  infringement 
cases (Table A12.1). In 2023, Slovenia solved 50% 
of the SOLVIT cases (8) it handled  as lead centre 
(below the EU average of 88.3%) (100). 

The  launch  of  the  unitary  patent  system  on 
1 June 2023 was a watershed moment in the 
completion  of  the  EU  Single  Market  for 
technology,  with  Slovenia  being  one  of  the 
17  Member  States  that  became  part  of  the 
system from the  very beginning.  The  EPO  has 
so far issued about 11 000 unitary patents. These 
are  mostly  owned  by  EU-based  entities.  Slovenia 
had submitted 49 unitary patent requests by May 
2024 and 48 of them had been registered  (107). 

(103)  OECD Economic Surveys: Slovenia 2022. 

(104)  Flash Eurobarometer 537. 

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

(105)  INTRUM European Payment Report 2023. 

(107)  European Patent Office. 

57 

 
 
 
Table A12.1:Industry and the Single Market 

Source: (1) AMECO, (2) Eurostat, (3) Single Market Scoreboard, (4) OECD, (5) ECFIN BCS, (6) COMEXT and Commission 
calculations, (7) EIB Investment Survey, (8) Intrum Payment Report, (9) SAFE survey, (10) EIF SME Access to Finance Index. 
* Own Commission calculations for the EU27 average. 

58 

POLICY AREAINDICATOR NAME20192020202120222023EU27 average*Net Private investment, level of private capital stock, net of depreciation, % GDP10-1,9-0,6-0,51,13,8Net Public investment, level of public capital stock, net of depreciation, % GDP11,21,31,92,52,51,2Real labour productivity per person in industry (% yoy)24,4-1,97,1-4,60,1-1,24Cost competitivenessNominal unit labour cost in industry (% yoy)2-0,14,20,212,412,39,83Single Market integrationEU Trade integration, % (Average intra-EU imports + average intra EU exports)/GDP260,955,861,670,161,442,9Transposition deficit, % of all directives not transposed30,61,61,210,80,7Conformity deficit, % of all directives transposed incorrectly30,91,21,31,30,81,1SOLVIT, % resolution rate per country385,7100,090,080,050,088,3Number of pending infringement proceedings3181928242325,9RestrictionsEEA Services Trade Restrictiveness Index40,070,070,070,070,070,05Single bids, % of total contractors304644514428,6Direct Awards, %321261911108,1Material Shortage (industry), firms facing constraints, %59,911,429,437,815,417,2Labour Shortage using survey data (industry), firms facing constraints, %537,020,132,441,444,123,3Vacancy rate, % of vacant posts to all available ones (vacant + occupied)22,7252,03,23,63,22,5Concentration in selected raw materials, Import concentration index based on a basket of critical raw materials60,170,170,160,150,240,22Installed renewables electricity capacity, % of total electricity produced20,40,40,40,450Investment obstaclesImpact of regulation on long-term investment, % of firms reporting business regulation as major obstacle721,413,916,413,017,022,2Bankruptcies, Index (2015=100)2116,3102,792,885,180,0105,6Business registrations, Index (2015=100)2104,193,6106,7114,3118,3120,2Payment gap - corporates B2B, difference in days between offered and actual payment8-1712121215Payment gap - public sector, difference in days between offered and actual payment8-201113916Share of SMEs experiencing late payments in past 6 months, %938,849,241,249,741,548,7EIF Access to finance index - Loan, Composite: SME external financing over last 6 months, index values between 0 and 1100,790,440,620,69-0,49EIF Access to finance index - Equity, Composite: VC/GDP, IPO/GDP, SMEs using equity, index values between 0 and 110 0,080,050,100,05-0,17ECONOMIC STRUCTUREShortagesStrategic dependenciesBUSINESS ENVIRONMENT - SMEsBusiness demographyLate paymentsAccess to financeSloveniaHEADLINE INDICATORSEconomic StructureSINGLE MARKETCompliancePublic procurement  
 
   
 
ANNEX 13: PUBLIC ADMINISTRATION 

the 

conditions 

Slovenia’s  public  administration  is  essential 
the  economy’s  competitiveness  by 
for 
the 
shaping 
twin 
for 
transitions  and  creating  a 
favourable 
business  environment.  The  perception  of 
government effectiveness in Slovenia is above the 
EU-27  average (Graph  A13.1).  The  reform  of  the 
public  pay  system  is  a  central  part  of  Slovenia’s 
recovery  and  resilience  plan  (RRP)  for  the  public 
is  ongoing.  Other 
administration,  and  work 
government 
advancing 
include 
digitalisation, improving working conditions for civil 
and 
servants, 
strengthening public procurement. 

revising  municipal 

priorities 

funding, 

Graph A13.1: Government effectiveness 

Average value over 2018-2022 and change over 2018-2022. 
The GDP per head bar shows the mean value of the 
government effectiveness indicator for the group of EU 
countries belonging to the same GDP per head cluster as 
Slovenia (EU countries are ranked in terms of their GDP per 
head and grouped into three equally sized clusters) 
Source: Worldwide Governance Indicators. 

Slovenia  put  in  place  new  measures  to 
increase  the  quality  of  public  policies.  The 
central  government  was  reorganised  to  improve 
coordination  and  allow  for  more 
integrated 
policymaking.  The  use  of  expert  advice  and 
stakeholder involvement has increased via a range 
of strategic councils. Impact assessments of legal 
proposals  are  well  established,  yet  they  do  not 
always  consider  the  overall  impact.  However,  the 
use of ex post evaluations is well below the EU-27 
average. 

attractiveness 

The 
public 
administration  as  an  employer  remains  a 
major challenge for Slovenia. The share of civil 
servants under the age of 49 is higher than the EU 

the 

of 

average, while the share of staff under the age of 
39  continues  to  fall.  The  civil  service’s  lack  of 
attractiveness  is  also  illustrated  by  the  large 
number of vacancies for which only one candidate 
applied (108).  At  the  same  time,  the  share  of  civil 
servants  with  higher  education  is  well  above  the 
EU average as is the share of staff participating in 
adult  learning.  The  gender  parity  for  senior  civil 
service positions, however, has dropped in the last 
few  years.  In  addition  to  the  public  wage  system 
reforms under the RRP, the government is working 
on 
resource 
management and digital skills for civil servants. 

improving 

further 

human 

Slovenia’s e-government maturity is close to 
the  EU  average.  In  2023,  the  country  made  it 
possible to access health services with eID. This is 
impact  on  the 
expected  to  have  a  positive 
provision  and  uptake  of  digital  services. 
In 
addition, Slovenia has laid down the legal basis for 
e-services,  and  the  first  eID  cards  were  issued  in 
2022.  Under  its  cohesion  policy  programme  for 
2021-2027,  Slovenia  aims 
the 
availability  of  digital  services  for  the  public, 
businesses,  research  organisations  and  public 
authorities. 
new 
technologies  and  business  models,  investing  in 
digitalising  public  services,  making  the  services 
more  inclusive  and  improving  the  population’s 
digital  skills.  Furthermore,  in  2024,  Slovenia  will 
set  up  a  competence  centre  to  help  develop  civil 
servants’ digital skills. 

increase 

involves 

creating 

This 

to 

Competition  in  public  procurement  continues 
to  be  weak.  The  relatively  high  percentage  of 
single  bids  and  negotiated  procedures  without 
publication are a good example (see Annex 12). A 
lack  of  competition  and  risks  of  corruption  can 
lead to overpricing in contracts as are likely to pay 
higher prices, which harms the public budget.  

level  of 

The  management  of  public  investment  in 
Slovenia is relatively weak across all stages 
of the investment cycle. The planning for public 
investment appears to be carried out exclusively at 
the 
limited 
coordination  across  sectors  and  no  involvement 
from the Ministry of Finance. A medium-term plan 
of  potential 
integrated  across 
sectors,  levels  of  government,  and  sources  of 
financing  and  anchored  into  a  coherent  set  of 
long-term planning documents is missing. While a 

line  ministries  with 

investments, 

(108) CSC, Annual Report, 2022 (accessed 07/11/2023). 

59 

-0.20.00.20.40.60.81.01.2SIEU-27GDP perhead clusterChange 2018-2022Average 2018-2022 
 
   
 
 
Table A13.1:Public administration indicators 

(1) High values denote a good performance, except for indicator # 6. (2) 2023 value. If unavailable, the latest value available is 
shown. (3) Measures the user centricity 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: E-government activities of individuals via websites, 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). 

for 

for 

larger 

reflected 

scrutiny 
is 

project 
methodology 
standardised 
assessments  is  in  place,  the  lack  of  systematic 
independent 
projects’ 
assessments 
in  major  upward 
revisions  to  more  than  half  the  projects  under 
implementation.  The  anchoring  of  the  investment 
the  National  Development 
portfolio 
Programme) 
into  the  medium-term  budgeting 
framework  is  missing  thus  leaving  investment 
allocation  -  especially  from  national  sources  - 
vulnerable to cyclical fluctuations. Ex-post reviews 
of  projects  are  carried  out  in  an  ad-hoc  basis, 
while  records  of  the  physical  state  of  existing 
assets are not maintained (109). 

(i.e. 

The Institute of Macroeconomic Analysis and 
Development  and  the  Fiscal  Council  are 
Slovenia’s 
independent  fiscal  institutions. 
Lifting the ceiling for the number of technical staff 

working  at  the  Fiscal  Council  and  an  improved 
access  to  budgetary  information  would  ease  its 
constraints and boost its capacity.  

justice  system  performs  efficiently 
The 
overall,  but  it  continues  to  face  challenges, 
particularly  in  economic  and  financial  crime 
court  cases (110).  In  2023,  the  average  length  of 
proceedings  at  first  instance  courts  was  still 
around  2  years in major  civil  cases  and  around  1 
year in litigious commercial cases. In appeal, these 
types  of  cases  continued  to  be  resolved  more 
quickly in around 3 months on average. Regarding 
the  quality  of  the  justice  system,  digital  tools  for 
case management are quite advanced, particularly 
in  courts.  Electronic  communication  between 
courts  and  the  parties  involved  has  been  further 
improved.  On  judicial  independence,  no  systemic 
deficiencies have been reported. 

(109) Belu Manescu, C. (2022), ‘New evidence on the quality of 
public investment Management in the EU’, European 
Economy Discussion Paper No 177, European Commission. 

(110) For a more details, see the 2024 EU Justice Scoreboard and 
the Commission’s 2024 Rule of Law Report (forthcoming). 

60 

SI20192020202120222023EU-27(2)1n/an/an/a81.378.475.02n/a69.166.668.774.875.830.70.80.90.90.90.8468.071.873.4 (b)75.470.5 (b)52.9517.89.928.3 (b)33.430.6 (b)17.9614.814.614.220.222.09.271.81.71.5 (b)1.41.81.580.70.80.80.8n/a0.790.40.40.40.4n/a1.410n/an/a1.52n/an/a1.7Medium-term budgetary framework indexIndicator (1)E-government and open government dataShare of internet users within the last year that used a public authority website or appE-government benchmark overall score (3) Open data and portal maturity indexEducational attainment level, adult learning, gender parity and ageingShare of public administration employees with higher 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 Slovenia’s 
progress in implementing the Pillar’s 20 principles 
and the EU headline and national targets for 2030 
on employment, skills and poverty reduction. 

Table A14.1:Social Scoreboard for Slovenia 

(1) Update of 27 October 2023. Members States are 
categorised based on the Social Scoreboard according to a 
methodology agreed with the EMCO and SPC Committees. 
Please consult the Annex of the Joint Employment Report 
2024 for details on the methodology.  
Source: Eurostat. 

The Slovenian labour market remained stable 
in  2023,  with  employment  remaining  at  a 
high  level  and  unemployment  reaching  a 
historical  low.  After  reaching  a  record  high  of 
77.9%  in  2022,  the  employment  rate  remained 
high at 77.5% in 2023, which is well above the EU 
average (75.3%), despite a slowdown in economic 
growth  in  2023.  The  unemployment  rate  further 
decreased  to  3.7%  in  2023,  well  below  the  EU 
average of 6.1%.  

labour  demand  and 

low 
Despite  high 
unemployment,  Slovenia  continues  to  face 
some  long-term  structural  challenges.  Older 
workers  have  low  rates  of  employment  and 

high 

long-term 

rate  of  older  workers 

activity,  particularly  those  with  a  low  level  of 
educational  attainment.  These  groups  also  face 
unemployment. 
persistently 
Despite  an  increase  in  the  retirement  age  and 
higher  income  incentives  to  work  longer,  the 
(55-64) 
employment 
decreased  slightly  from  55.2%  in  2022  to  54.2% 
in 2023. Young people also face challenges when 
entering the labour market. Although the share of 
precarious employment is decreasing, Slovenia still 
has  a  high  share  of  young  people  working  on 
temporary  contracts  (36.4%  vs  34.4%,  the  EU 
average in 2023) (111). Slovenia uses the European 
Social  Fund  Plus  (ESF+)  to  support  active  labour 
market  measures,  focusing  on  young  people, 
especially  those  neither  in  employment  nor  in 
education  and  training,  and  vulnerable  groups, 
such  as  the  long-term  unemployed.  Pension  and 
unemployment insurance reforms aim to promote 
longer  working  lives  and  reduce  the  gap  between 
the age that people stop working and the statutory 
retirement  age.  Addressing  these  challenges  will 
help Slovenia to make progress towards the 2030 
national employment rate target of 79.5%.  

industry  and 

There  are  still  significant  labour  shortages 
and participation in adult learning has fallen 
significantly.  After  reaching  a  record  high  3.0% 
in  2022,  the  vacancy  rate  slightly  decreased  by 
0.3  pps  but  remained  high  at  2.7%  in  2023  and 
continues  to  reflect  tightening  labour  market 
conditions.  The  rate  was  particularly  high  in  the 
in  services. 
construction  sector, 
Together  with  other  skills  and  labour  market 
challenges, this undermines Slovenia’s potential to 
improve its economic competitiveness. Cyclical and 
structural  factors,  such  as  an  ageing  workforce, 
changing  skills  requirements  and  unfavourable 
working conditions contribute  to labour shortages. 
At  the  same  time,  participation  in  education  and 
training  among  adults  (25-64)  has  decreased 
significantly  since  2016  (40.3%):  in  2022  only 
around a quarter of adults (26.5%) participated in 
education and training. Men participate much less 
(31.2%). 
frequently 
Participation  was  particularly  low  among  those 
with  medium  and  low  levels  of  skills  and  among 
older  workers.  The  share  of  individuals  with  basic 
overall  digital  skills  fell  from  55.13%  in  2019  to 

than  women 

(22%) 

(111) IMAD, Development report, 2023. 

61 

26.55.446.77.86.13.377.53.71.4118.413.310.337.3118.84.152.33.7Critical situationTo watchWeak but improvingGood but to monitorOn averageDynamic labour markets and fair working conditionsEmployment rate(% of the population aged 20-64, 2023)Unemployment rate(% of the active population aged 15-74, 2023)Long term unemployment(% of the active population aged 15-74, 2023)Gross disposable household income (GDHI) per capita growth(index, 2008=100, 2022)Social protection and inclusionAt risk of poverty or social exclusion (AROPE) rate (% of the total population, 2022)At risk of poverty or social exclusion (AROPE) rate for children(% of the population aged 0-17, 2022)Impact of social transfers (other than pensions) on poverty reduction(% reduction of AROP, 2022)Disability employment gap (percentage points, population aged 20-64, 2022)Housing cost overburden (% of the total population, 2022)Children aged less than 3 years in formal childcare (% of the under 3-years-old population, 2022)Self-reported unmet need for medical care (% of the population aged 16+, 2022)Better than averageBest performersPolicy areaHeadline indicatorEqual opportunities and access to the labour marketAdult participation in learning (during the last 12 months, excl. guided on the job training, % of the population aged 25-64, 2022)Early leavers from education and training(% of  the population aged 18-24, 2023)Share of individuals who have basic or above basic overall digital skills(% of the population aged 16-74, 2023)Young people not in employment, education or training(% of the population aged 15-29, 2023)Gender employment gap(percentage points, population aged 20-64, 2023)Income quintile ratio (S80/S20, 2022) 
 
 
 
   
 
 
 
46.7%  in  2023  (EU:  56%).  The  activation  of 
underrepresented  groups  and  incoming  migration, 
together  with  investments  in  adult  learning,  skills 
development  and  training  programmes,  could 
make  a  significant  contribution  to  maintaining  a 
sufficient labour supply in the coming years and to 
improving  the  overall  level  of  skills.  To  address 
these  challenges,  Slovenia  has  adopted  a  mix  of 
measures,  supported  by  the  ESF+,  including  the 
development  of  a  platform  for  long  term  skills 
forecasting,  a  nationwide 
learning 
campaign and the modernisation of labour market 
institutions and their services.  

lifelong 

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

(1) Adult Education Survey, adults in learning in the past 12 
months, special extraction excl. guided on-the-job training. 
(2) Change in the number of persons at risk of poverty or 
social exclusion (AROPE), reference year 2019. 
Source: Eurostat, DG EMPL. 

is 
The  education  and  training  system 
performing  well,  however  obstacles  remain 
for  some  groups.  In  the  PISA  2022  survey, 
Slovenian  pupils  outperformed  the  EU  average  in 
mathematics  and  science  but  achieved  overall 
lower  results  than  in  2018  (see  Annex  15). 
Slovenia  has  one  of  the  lowest  rates  of  early 
school leavers and there is a high level of tertiary 
educational  attainment.  However,  there  are  still 
significant differences on the basis of gender and 
between people born in and outside Slovenia. And 
a  well-established 
has 
although  Slovenia 
vocational  education  and  training  (VET)  system, 
with 7 out of 10 upper secondary students taking 
part  in  VET  programmes  in  2021,  improving  its 
appeal  and  alignment  with  the  labour  market 
requires  additional  efforts,  particularly  in  light  of 
labour  shortages.  Moreover,  Slovenia  continues  to 
face  a  shortage  of  teachers,  especially  in  STEM 
subjects.  The  low level  of participation in  learning 
activities by people from the most vulnerable, less 
educated  and  older  age  groups  remains  a 
structural  challenge.  The  ESF+  promotes  lifelong 
learning  and  flexible  upskilling  and  reskilling 
opportunities, and a national campaign on lifelong 
learning  is  expected  to  be  launched  in  2024. 
Additional  efforts,  such  as  improving  outreach  to 

low-skilled  and  older  workers  could  contribute  to 
reaching the national target of at least 60% of all 
adults participating in education and training every 
year by 2030.  

Slovenia  has  a  well-functioning  social 
protection  system,  but  poverty  among  older 
people  remains  a  concern.  In  2022,  Slovenia 
had  the  lowest  level  of  income  inequality  among 
all EU countries and the share of people at risk of 
poverty  or  social  exclusion  (AROPE),  despite  a 
slight  increase  of  0.5  pps  compared  to  the 
previous  year,  stood  at  a  low  level  in  2023  at 
13.3%. However, in particular older women are at 
risk: the AROPE rates of women over 65, at 23.4% 
and  over  75,  at  27.5%,  represent  a  further 
deterioration, and were almost twice as high as for 
the  general  population.  This  may  indicate  an 
inadequate level of pensions: nearly half of the old 
age  pensioners 
the 
national threshold of those at risk of poverty (EUR 
in  2022) (112).  Following  a 
827  per  month 
significant  decrease  of  more  than  6  pps  between 
2021  and  2022,  the  impact  of  social  transfers 
(other than pensions) on poverty reduction further 
decreased by almost 2 pps from 37.31% in 2022 
to 35.53% in 2023.  

receive  pensions  below 

level 

remains  a  concern 

While  the  housing  cost  overburden  rate 
remains  well  below  the  EU  average,  housing 
affordability  is  a  challenge  for  some.  The 
housing  cost  overburden  rate  was  at  a  generally 
low 
in  2023  (3.7%).  However,  housing 
affordability  does  not  only  affect  vulnerable 
groups,  such  as  single  person  households,  people 
with disabilities or migrants, but has also become 
and 
for  others.  While 
decreasing by 1.3 pps from 2022, the housing cost 
overburden 
rate  of  single-parent  households 
remained  relatively  high  at  11.2%  in  2023.  And 
even though the housing cost overburden rate for 
tenants  renting  at  market  prices  remained  stable 
compared  to  the  previous  year,  after  decreasing 
continuously since 2016, the rate (17.9%) remains 
more than four times higher than the rate for the 
general  population.  Under 
recovery  and 
resilience  plan,  Slovenia  intends  to  purchase  or 
construct nearly 5 000 non-profit flats by 2026 to 
improve  access  to  non-profit  rented  housing  for 
young  families,  socially  deprived  individuals  and 
people  from  marginalised  groups.  In  combination 
with the ESF+, further policy action can contribute 

its 

(112) ZPIZ, Annual report 2022, 2023. 

62 

IndicatorsLatest dataTrend            (2016-2023)2030 targetEU target 77.5(2023)26.5(2022)8(2023)Poverty reduction2 (thousands)-9-15,000Employment (%)79.578Adult learning1 (%)6060 
 
  
 
 
to  reaching  the  national  target  of  having  at  least 
9 000 fewer people at risk of poverty by 2030. 

63 

 
ANNEX 15: EDUCATION AND TRAINING 

This  Annex  outlines  the  main  challenges  of 
Slovenia’s  education  and  training  system 
based on the 2023 Education and Training Monitor 
and  the  2022  OECD  Programme  for  International 
Student Assessment (PISA) results (113). 

In  Slovenia,  the  share  of  students  with  low 
basic  skills  in  mathematics  and  reading 
increased  significantly  between  2018  and 
2022  but  remains  below  the  EU  average.  In 
2022,  24.6%  of  15-year-olds  did  not  achieve 
minimum  level  of proficiency  in  mathematics  and 
26.1%  in  reading  (EU  29.5%  in  mathematics  and 
26.2%  in  reading).  Between  2018  and  2022,  the 
rate  of  underachieving  students  rose  (by  8.2 pps) 
both  in  mathematics  and  reading  (vs  6.6 pps  and 
3.7  pps  in  the  EU).  In  science,  it  rose  by  4.9 pps 
over  the  last  decade  (2012-2022)  but  remains 
among  the  lowest  rates  in  the  EU  (17.8%  vs 
in  the  EU).  The  socio-economic  gap 
24.2% 
disadvantaged 
and 
between 
students (114)  in  mathematics  (31.3 pps)  is  also 
below  the  EU  average  (37.2 pps),  but  it  increased 
considerably (by 9.9 pps) between 2018 and 2022. 
to  have  a  more 
Migrant 
disadvantaged  socio-economic  background  and  in 
2022,  51.2%  of  foreign-born  students  did  not 
in 
achieve  minimum 
mathematics.  

level  of  proficiency 

advantaged 

students 

tend 

Boys are more frequently represented among 
underachieving students. The gender gap is the 
second highest in the EU in reading (17.6 pps) and 
above  the  EU  average  in  science  (6.9 pps  vs 
2.9 pps  in  the  EU).  Contrary  to  most  Member 
States,  there  is  also  a  significant  gender  gap  in 
mathematics  with  3.7 pps  more  low-performing 
boys than girls. 

rate  of 

The  share  of  Slovenian  top  performers 
decreased  in  both  mathematics  and  reading. 
The 
in 
mathematics  dropped  from  13.6%  in  2018  to 
9.4% in 2022 but remained above the EU average 
(7.9%). In reading, top performance dropped from 
7.8% in 2018 to 4.4% in 2022, which is below the 

top-performing  15-year-olds 

EU  average  at  6.5%.  In  science,  the  share  of  top 
performers  slightly  increased  between  2018  and 
2022 to 8%, which is above the EU average (6.9% 
in  2022).  While  Slovenia  currently  has  a  strong 
skills  base,  the  recent  decline  in  basic  skills 
performance  among  young  people  may  affect 
skills supply and skills shortages in future, as well 
as the innovation capacity and competitiveness of 
the  economy,  which  is  already  facing  challenges 
(see more analysis in the Annex 12). 

Graph A15.1: Underachievement rates by field, 
PISA 2012, 2018 and 2022 

Source: OECD (2023). 

in  recruiting 
Slovenia  faces  challenges 
qualified  teachers.  The  demand  for  human 
resources in education might  increase further (115) 
while around 6 500 teachers are expected to retire 
in  the  coming  decade (116).  Teacher  salaries  are 
slightly  below  those  of  other  tertiary-educated 
workers  in  Slovenia  (0.91  in  primary  and  0.94  in 
upper  secondary) (117).  Negotiations  between  the 
government  and  trade  unions  continue  within  the 
general  reform  of  the  public  sector  wage  system, 
where a specific pillar for education, research and 
culture workers is envisaged.  

Participation  in  early  childhood  education 
(ECEC)  is  relatively  high  and  early  school 
leaving  in  Slovenia  remains  low.  Participation 
in  early  childhood  education  for  children  from  3 
years  to  compulsory  primary  school  age  reached 
92.3%  in  2021,  around  the  EU  average.  Children 
from vulnerable groups participate less frequently 
in ECEC. For example, of the 5-year-olds in south-
eastern  Slovenia,  around  35%  of  Roma  children 
are  estimated  not  to  be  participating  in  preschool 
education (118).  In  2023,  5.4%  of  young  people 

(113) OECD (2023), Programme for International Student 

Assessment. 

(115) Employment Service of Slovenia, August 2022. 

(114) As defined by the PISA index of economic, social and cultural 

(116) Ministry of Education, 2023. 

status (ESCS). See: https://www.oecd-
ilibrary.org/sites/03c74bdd-
en/index.html?itemId=/content/component/03c74bdd-
en#chapter-d1e5625-0ddb24f583 

(117) OECD 2022 

(118) Child Guarantee National Action Plan of Slovenia 2022-

2030. 

64 

05101520253035SIEUSIEUSIEUMathematicsReadingScience%2012201820222030 EU target 
 
 
  
 
 
 
Table A15.1:EU-level targets and other contextual indicators under the European Education Area 
strategic framework 

Notes: b = break in time series; d = definition differs; e = estimated; p = provisional; u = low reliability; : = data not available. 
Source: 1,3,4,5,7,8,9,10,12=Eurostat; 11= Eurostat, Adult Education Survey; 2,6=OECD, PISA. 

aged  18-24  left  education  and  training  early  (vs 
9.5%  in  the  EU),  which  is  a  relatively  stable 
outcome over the last decade. Further efforts are 
needed to foster inclusion of children with special 
needs.  Only  around  26%  of  all  secondary  school 
facilities in Slovenia are adapted for children with 
reduced mobility (119). 

The  share  of  tertiary-educated  people  aged 
25-34  was  40.7%  in  2023.  This  outcome  is 
below the EU average (43.1%) and below the EU-
level target (45%) (see also Annex 11). The gender 
gap  in  tertiary  educational  attainment  is  the 
highest in  the  EU (23.6 pps  vs  11.2 pps  in  the  EU 
in  2023).  The  gap  between  native-born  and  non-
EU born people with tertiary education is also high 
and increasing (from 26.3 pps in 2021 to 34.1 pps 
in  2022).  The  share  of  graduates  in  science, 
and  mathematics 
technology, 
increased  (2016-2021)  by  3.1pps  to  28,1%  (EU 
average 25.4 %, 2021). The recent declines in top 
performance  in  mathematics  and  reading  among 
students  may  affect  innovation  capacity  and 

engineering 

(119) The Advocate of the Principle of Equality in Slovenia (2022). 

65 

in 

the  future. 

competitiveness 
In  vocational 
education and training, further efforts are needed 
to improve its labour market  relevance, and adult 
participation  in  lifelong  learning  is  well  above the 
EU average (see more in the Annex 14). 

EU 

in  curricular 

In 2024, Slovenia plans to adopt the National 
education  programme  until  2033  and 
continue 
reforms.  Several 
measures  to  address  teacher  shortage  were 
adopted  in  2023  and  a  new  communication 
strategy  on 
increasing  attractiveness  of  the 
teacher  profession  will  be  launched  in  2024.  The 
Slovenian  multi-fund 
policy 
programme  for  2021-2027  and,  in  particular,  the 
European  Social  Fund  Plus  are  expected  to 
substantially support relevant actions in education, 
training,  and  skills,  with  a  total  investment  of 
EUR 207.6  million  over  2021-2027.  Furthermore, 
the  RRP  allocates  around  EUR 71.24  million  to 
investments in the digitalising of higher education. 
With  EUR 59.98  million,  30  pilot  projects  for 
integrating  digital  and  sustainable  development 
competences  in  the  curricula  are  currently  being 
implemented. 

cohesion 

96%87.9%201391.8%201391.1%92.2%92.3%202192.5%2021,dReading< 15%21.1% 18.0%17.9% 22.5%26.1%202226.2%2022Mathematics< 15%20.1% 22.1%16.4%22.9%24.6%202229.5%2022Science< 15%12.9% 16.8%14.6%22.3%17.8%202224.2%2022< 9 %4.4% 12.6%4.2%10.5%5.4%b9.5%Men5.4%14.5%5.3%u12.1%5.8%bu11.3%Women3.2%u10.6%3.0%u8.7%4.9%bu7.7%Cities4.4%bu11.2%3.5%u9.4%5.4%bu8.6%Rural areas5.2%b14.0%4.4%u11.0%4.5%bu9.9%5By country of birthNative4.2% 11.3%3.6%9.2%4.5%b8.2%EU-born:u26.2%:u22.4%:bu21.0%Non EU-born10.9%u30.1%11.2%u23.0%14.8%bu21.6%6Socio-economic gap (percentage points)26.9:21.729.531.3202237.220227Exposure of VET graduates to work-based learning≥ 60% (2025) ::: :55.3% 64.5%45%35.3%34.1%40.7%38.7%40.7%b43.1%Men25.4%29.1%29.8%33.3%29.8%b37.6%Women45.6%39.2%53.1%44.2%53.4%b48.8%Cities42.2%b43.5%50.5%49.0%48.4%b53.3%Rural areas33.8%b24.8%38.0%27.7%38.8%b31.7%Native36.8%35.4%42.8%39.7%44.5%b44.2%EU-born32.4%u29.3%:u36.7%40.7%bu40.2%Non EU-born11.5%u24.2%19.7%31.0%15.1%bu37.1%11Participation in adult learning (age 25-64)≥ 47% (2025) ::40.3%201637.4%201626.5%202239.5%202214.1%201322.7%201322.3%23.8%23.7%202124.5%2021Tertiary educational attainment (age 25-34)8Total8By gender9By degree of urbanisation10By country of birth12Share of school teachers (ISCED 1-3) who are 55 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 urbanisation201220182023IndicatorTargetSloveniaEU-27SloveniaEU-27SloveniaEU-27 
 
 
  
 
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 
Slovenia. 

Life  expectancy  at  birth  in  Slovenia  remains 
above the EU average. There was a drop in life 
expectancy  in  Slovenia  with  the  onset  of  the 
COVID-19  pandemic  in  2020.  As  mortality  from 
COVID-19  declined  in  2022 (120),  life  expectancy 
increased  again,  although  not  to  pre-pandemic 
levels. The rate of treatable mortality is below the 
EU average. In 2021, the leading causes of death 
were  diseases  of 
system 
the 
(‘cardiovascular diseases’) and cancer, followed by 
COVID-19. Cancer  incidence  rates  are  higher  than 
the EU averages. Shortages in treatment resources 
may  restrict  access  to  treatments  and  contribute 
to  Slovenia’s  relatively  high  cancer  mortality  rate. 
Suicide  rates  are  a  matter  of  concern,  remaining 
higher  than  across  the  EU,  despite  falling  faster 
than the EU average. 

circulatory 

Graph A16.1: Life expectancy at birth, years 

a  mandatory  contribution  to  the  statutory  health 
insurance. This change is expected to increase the 
share  of  publicly  funded  health  expenditure  and 
keep  the  share  of  out-of-pocket  payments  below 
the EU average (12.9% of total health expenditure 
in  Slovenia  in  2021,  compared  to  14.5%  across 
the EU). Outpatient care receives the largest share 
of health spending, followed by inpatient care and 
spending  on  pharmaceuticals.  Based  on  the  age 
the  Slovenian  population,  public 
profile  of 
spending  on  health  is  projected  to  increase  by 
0.9 percentage  points  (pps)  of  GDP  by  2070, 
higher  than  the  EU  average  of  0.6 pps  (see 
Graph 16.2).  Population  ageing 
fiscal 
sustainability concerns for Slovenia in the medium 
term (see Annex 21). 

raises 

Graph A16.2: Projected increase in public 
expenditure on healthcare over 2024-2070 

Source: Eurostat 

Health  expenditure  relative  to  GDP  in  2021 
was below the EU average. Provisional data for 
2022  suggest  that  total  healthcare  spending  fell 
back to 9.2% of GDP. Per capita health expenditure 
in 2021 is about two thirds of the EU average and 
publicly  funded  health  expenditure  accounts  for 
73.8%  of  total  health  spending,  below  the  EU 
average of 81.1%. The main source of healthcare 
funding is the employment-based statutory health 
insurance. In 2024 the government is transforming 
the complementary voluntary health insurance into 

(120) Based on data provided directly by Member States to the 

European Centre for Disease Prevention and Control, under 
the European Surveillance System. 

Baseline scenario 
Source: European Commission / EPC (2024) 

In  2021,  spending  on  prevention  in  Slovenia 
amounted  to  5.4%  of  total  spending  on 
healthcare,  compared  to  6.0%  for  the  EU 
overall.  Between  2019  and  2021,  spending  on 
preventive  care 
increased  by  around  70%, 
compared  to  a  106%  increase  for  the  EU  overall. 
In  Slovenia,  the  main  factors  behind  the  increase 
in  2021  were 
in  preventive  care  spending 
immunisation  and  early  disease  detection 
programmes (both increased by around 150% due 
to COVID-19 measures). 

Despite  various  measures,  timely  access  to 
publicly funded health services in Slovenia is 
still  a  matter  of  concern.  The  list  of  fully 
funded  health  services 
is  decreasing,  posing 
further  access  challenges,  especially  for  people 
with 
income.  Short-term  measures  for 
additional funding, mainly for primary care teams, 
have  helped  to  scale  up  several  programmes  to 
address  preventable  and 
treatable  mortality 
(especially  for  chronic  conditions  and  vulnerable 
groups).  In  2022,  the  proportion  of  the  Slovenian 

low 

66 

81.281.581.680.680.781.380.981.081.380.480.180.6201720182019202020212022SloveniaEU6.66.90.60.902468EUSlovenia% of GDP20242070increase 
 
   
 
   
 
Table A16.1:Key health indicators 

Note: The EU average is weighted for all indicators except for doctors and nurses per 1 000 population, for which the EU simple 
average is used. Doctors’ density data refer to practising doctors in all countries except Greece, Portugal (licensed to practise) and 
Slovakia (professionally active). Nurses’ density data refer to practising nurses in all countries except Ireland, France, Portugal, 
Slovakia (professionally active) and Greece (hospital only). 
Source: Eurostat Database; except: * OECD, ** Joint Questionnaire on non-monetary healthcare statistics, *** ECDC, **** Council 
Recommendation on stepping up EU actions to combat antimicrobial resistance in a One Health approach. 

Further 

reforms 

targeting 

primary 
2021). 
healthcare  and  health  workforce 
issues  are 
planned  (scholarships  for  young  graduates  in 
primary  care  specialisation,  plans  for  reforms  of 
the public sector salary system). 

to 

plans 

Slovenia 

Through  its  recovery  and  resilience  plan 
invest 
(RRP), 
EUR 166.8 million  (6.21%  of  the  RRP’s  total 
value) in health system resilience and quality 
of  care.  The  RRP  plans  reforms  and  investments 
for  training  of  primary  care  staff,  care  networks 
(integrated  care,  mental  care  and  community-
based  services),  healthcare 
infrastructure  for 
communicable diseases and support for the digital 
transformation  of  the  National  Health  Service. 
Significant 
healthcare 
(EUR 103 million) is also planned under the 2021-
funds.  Planned 
2027  EU 
investments 
infrastructure  of 
public  healthcare  institutions,  medical  equipment, 
urgent 
services, 
digitalisation of healthcare, and various measures 
to  improve  the  accessibility,  effectiveness  and 
resilience of health services in Slovenia (122). 

cohesion  policy 
target  physical 

preventive 

funding 

health 

and 

for 

population reporting unmet needs for medical care 
(3.7%)  was  higher  than  the  EU  average  (2.2%), 
although differences between income groups were 
smaller than in 2021. However, the percentage of 
people  declaring  the  same  unmet  needs  in  2022 
remained unchanged from 2021 and above the EU 
average. The primary drivers for unmet needs are 
long  waiting  times, mainly  for  specialists,  elective 
surgery,  primary  care  physicians  and  emergency 
care.  Recent  reforms  and  investments  to  tackle 
this  issue  have  not  yet  produced  significant 
lists  are 
results.  For 
reportedly  the  most  frequent  barrier  to  accessing 
mental 
Fragmented 
management of mental health services and lack of 
specialised  staff  are  further  challenges  that  need 
to be overcome to improve prevention and care for 
mental health conditions. 

long  waiting 

services (121). 

instance, 

health 

Health  workforce  density  is  below  the  EU 
average  and  may  restrict  timely  access  to 
needed  care.  There  are  particular  concerns 
regarding  the  numbers  of  primary  care  doctors 
and hospital nurses. The low attractiveness of the 
nursing  profession  (working  conditions,  work–life 
balance) is reflected in a low density  of nurses in 
Slovenia. According to the newly adopted Eurostat 
definition  of  nurses,  following  the  EU  Directive 
2005/36/EC  on  the  recognition  of  professional 
qualifications,  there  are  only  4.5  nurses  per 
1 000 population  in  Slovenia  compared  to  an  EU 
average  of  7.9.  The  number  of  nursing  graduates 
per 100 000 population is among the lowest in EU. 
The  number  of  doctors  per  1 000 population  (3.3 
in  2021)  is  also  below  the  EU  average  (4.1  in 

(121) https://europa.eu/eurobarometer/surveys/detail/3032 

2024. 

(122) The EU cohesion policy data reflect the status as of 13 May 

67 

20182019202020212022EU average (latest year) Treatable mortality per 100 000 population (mortality avoidable through optimal quality healthcare)77,472,069,866,9NA93.3 (2021)Cancer mortality per 100 000 population309,3290,1290,7277,3NA235.4 (2021)Current expenditure on health, % GDP 8,38,59,49,59,210.9 (2021)Public share of health expenditure, % of current health expenditure72,872,873,273,8NA81.1 (2021)Spending on prevention, % of current health expenditure 3,13,23,25,4NA6.0 (2021)Available hospital beds per 100 000 population443443428425NA525 (2021)Doctors per 1 000 population3,23,33,33,3NA4.1 (2021)*Nurses per 1 000 population3,43,84,34,5NA7.9 (2021)Total consumption of antibacterials for systemic use, daily defined dose per       1 000 inhabitants per day ***13,213,010,210,212,419.4 (2022) 
 
 
 
  
 
ANNEX 17: ECONOMIC AND SOCIAL PERFORMANCE AT REGIONAL LEVEL 

Annex 17 showcases the economic and social 
regional  dynamics  in  Slovenia.  It  provides  an 
analysis  of  economic,  social,  and 
territorial 
cohesion  in  the  Slovenian  regions  and  assesses 
investment  and  subnational  reform 
emerging 
social 
needs 
development and competitiveness in the country. 

foster  economic  growth, 

to 

of 
Overview 
performance at regional level 

economic 

and 

social 

Regional  disparities 
in  Slovenia  have 
remained  prominent  despite  solid  recent 
overall  growth.  While  overall  GDP  growth  in 
Slovenia  in  2022  (2.6%)  and  in  2023  (1.6%)  was 
solid, the gap between the capital region and other 
regions  has  hardly  reduced  and  is  still  very 
pronounced. In 2022, GDP per capita in purchasing 
power  standards  (PPS)  at NUTS-3  level  compared 
to  the  national  average,  the  Ljubljana  region 
stands  out  at  146%,  which  was  almost  3  times 
higher than in the Zasavska region at 54% (2021: 
147%  and  53%).  These  figures  are  among  the 
biggest differences observed  since the monitoring 
of these data began. 

There  has  been  sustainable 
long-term 
convergence  with  the  rest  of  the  EU,  but 
disparities  between  the  regions  remain.  GDP 
per  capita  growth  in  the  capital  region  (2%)  was 
higher than the national average of 1.5% per year 
after  2012,  and  twice  the  EU  average  of  0.97%. 
Ten  of  the  12  NUTS-3  regions 
in  Slovenia 
outperformed  the  EU  average,  with  Pomurska  as 
the  frontrunner  at  2.1%.  However,  Obalno-Kraška 
(0.2%) and Zasavska (0.4%) had the lowest annual 
growth in 2012-2021 (Map A17.1). 

Convergence  between  the  NUTS-2  Slovenian 
regions  has  not  improved  in  recent  years.  In 
2022,  eastern  Slovenia  (82%)  continued  to  lag 
behind  western  Slovenia  (120%)  in  terms  of  GDP 
per  capita  of  the  national  average.  This  is  a 
consolidation of the recent situation back in 2021 
and 2020, where figures stood at 82% and 120% 
and at 83% and 119% respectively. Both NUTS-2 
regions contain NUTS-3 regions with a GDP below 
the national average. As the capital  region is part 
of  western  Slovenia,  however,  the  NUTS-2  region 
is  therefore  considerably  more  advanced  for 
statistical reasons. 

Map A17.1:  Slovenia, NUTS-3: GDP per capita 
growth 2013-2022 

Source: DG REGIO 

The regional differences in GVA per employee 
are more nuanced reflecting the high level of 
daily  commuting.  At  NUTS-3  level  in  2022,  the 
capital region accounted for 111% of the national 
average,  while  the  lowest-performing  Pomurska 
region stood at 87%. Data from 2023 confirm that 
the lower difference - compared to GDP per capita 
as  above  -  is  predominantly  due  to  the  intense 
into  the  capital  region (123), 
daily  commuting 
mainly  by  passenger  cars.  This  has 
largely 
contributed  to  the  30%  increase  in  the  country’s 
transport  carbon-footprint  between  2005  and 
2020. The two main reasons for the high level of 
commuting are the greater number of jobs and the 
considerably  higher  cost  of  housing  in  the  capital 
region. 

Decarbonisation  of  energy  production  is  a 
core  regional  challenge  for  Slovenia.  In  the 
in 
Savinjsko-Šaleška  region,  the  coal  mining 
Velenje and the Šoštanj lignite power plant will be 
phased out by 2033. The Zasavska region faces an 
incomplete transition away from coal. Slovenia’s 

(123) In 2023, more than half a million people in Slovenia, 

equalling 55.4% of the working population, commuted daily 
to another municipality for work. 142.500 commuted into 
Ljubljana (280.000 inhabitants). The nationwide share of 
work commuters has increased by almost one third since 
2003 when the share stood at 42.3%. 

68 

 
 
 
 
 
 
 
 
Table A17.1:Selected indicators at regional level in Slovenia 

Source: Eurostat, EDGAR database 

transition  towards  the  EU’s  2030  climate  targets 
and a zero-carbon economy by 2050 requires the 
full phase-out of coal. The challenges in these two 
coal  regions  are  different  in  scale,  but  centre 
of 
around  decarbonisation  and 
renewable  energies,  economic  diversification,  and 
creating  new  job  opportunities.  These  eastern 
Slovenian  regions  benefit  from  support  under  the 
Just Transition Fund (JTF; Map A17.2). 

expansion 

Map A17.2:  Territories most affected by the 
climate transition in Slovenia (NUTS-3 and below) 

Source: DG REGIO 
Slovenia  has  a  very  robust  labour  market, 
with  high  employment  (77.5%)  and  low 
unemployment (3.7%) across the regions. The 
country  outperforms  the  EU  average  (75.3%  and 
6.1% respectively). In 2023, the employment rate 
(age  20-64)  reached  79.2%  in  western  Slovenia 
and  75.9%  in  eastern  Slovenia.  Unemployment 
rates  were  also  low  in  both  regions,  standing  at 
3.5%  in  western  Slovenia  and  3.8%  in  eastern 
Slovenia.  The  figures  suggest  that,  on  the  whole, 

69 

lower  levels  of  GDP  do  not  lead  to  considerably 
lower levels of employment. 

its  neighbouring 

The devastating floods of August 2023 had a 
massive  regional  impact.  In  what  was  the 
heaviest  torrential  rain  ever  recorded  in  Slovenia 
and 
considerable 
amounts  of 
infrastructure  were  destroyed  or 
damaged  in  several  regions  (Map  A17.3).  Against 
some  very  substantial  overall  damage,  flood-
protection 
climate-mitigation 
measures  have  become  a  medium  and  long-term 
priority for the entire country. 

recovery 

regions, 

and 

Map A17.3:  Regional impact of the August 2023 
floods in Slovenia 

Source: International Federation of Red Cross Societies (IFRC) 

Investment  and  subnational  reform  needs 
ahead 

in 

recovery  and 

Investments 
climate 
adaptation  require  proper  planning  and 
coordination. High levels of investment in climate 
adaptation  measures  in  Slovenia,  in  particular 
flood protection, are expected when combining EU 

GDP per head (PPS)Productivity (GVA (PPS) per person employed)Real productivity growthGDP per head growthPopulation growthUnemployment rateRegional Competitiveness IndexCO2 emissions per headInnovation performanceEU27=100, 2022EU27=100,  2022Avg % change on preceding year, 2013-2022Avg % change on preceding year, 2013-2022Total % change, 2013-2021% of active population, 2023EU27=100, 2022tCO2 equivalent,  2022EU Regional Innovation Scoreboard, 2023European Union1001000.71.441.66.1100.08.0 Slovenija9081.71.12.322.63.7 8.7 Vzhodna Slovenija7374.51.12.040.73.899.410.6Moderate innovator oZahodna Slovenija109881.12.464.73.5109.66.5Strong innovator oNUTS-2 Region 
 
 
 
 
  
 
support from cohesion policy funding, the recovery 
and  resilience  plan  (RRP),  and  the  Solidarity  Fund 
(EUSF),  alongside  national 
funds.  Successful 
implementation  will  therefore  depend  on  careful 
planning, and sound coordination. Factors such as 
the limited capacity of the relevant public services, 
the shortage of labour and material, and demand-
driven  price  increases  need  to  be  considered  to 
ensure maximum complementary and efficiency of 
investments from different sources. 

Green investments can play a beneficial role 
with  flood-protection  measures.  On  climate-
adaptation  measures  co-financed  by  cohesion 
policy and other types of EU support, nature-based 
solutions  (NBS)  are  a  priority.  Flood-protection 
from  climate  and 
measures  would  benefit 
environmental  action,  such  as  the  restoration  of 
natural  water-retention  areas,  free-flowing  rivers, 
wetlands,  pillage  areas,  or  re-forestation  all  can 
help achieve the horizontal biodiversity investment 
and EU Nature Restoration Law targets.  

and 

from 

timely 

Investments  in  sustainable  transport  would 
coordinated 
profit 
implementation. Slovenia is facing the challenge 
of a fairly high CO² footprint and air pollution from 
transport due to the current unsustainable reliance 
on  individual  passenger  car  transport.  In  contrast, 
the  number  of  passengers  travelling  by  bus  or 
train is falling. The number of public-transport bus 
passengers  has  dropped  by  15-20%  between 
2010  and  2022.  The  number  of  train  passengers 
has dropped by 11% since 2008. Car sharing has 
dropped  by  16%  since  2017,  and  the  average 
number of passengers in a car currently stands at 
1.5.  It  appears  crucial  for  public  transport,  in 
particular  in  non-urban  areas,  to  be  upgraded  to 
provide  a  viable  alternative  to  the  car.  The 
substantial cohesion policy funding that is planned 
for  upgrading  the  railway  infrastructure  are  a 
useful  contribution  in  this  regard  and  should  be 
implemented  on 
the 
complementary RRP support. Multimodal transport 
and the prospective alternative-fuel  infrastructure 
can  help  to  achieve  the  much-needed  green 
transition of transport in Slovenia.  

together  with 

time 

efficiently 

Strengthening  the  administrative  capacity 
can  help  to  manage  cohesion  policy  funding 
more 
up 
timely 
implementation.  To  help 
implementation  of  projects,  it  would  be  useful  to 
strengthen 
public 
capacity 
administration.  Both,  potential  beneficiaries  and 

speed 
front-load 

and 

the 

the 

of 

local  authorities  often  receive  information  on 
upcoming calls for projects only at relatively short 
notice.  There  is  thus  a  need  for  more  strategic 
implementation  in  order  for  applicants  to  have 
sufficient time and information to prepare for the 
calls.  The  partnership  principle  is  to  be  widely 
applied at each step of the implementation.  

a 

comprehensive 

The  upcoming  reform  of  the  Balanced 
Regional  Development  Act  would  benefit 
from  a  strategic  approach.  The  Balanced 
Regional  Development  Act,  adopted  in  2016  and 
currently  under  revision,  is  an  opportunity  to 
provide 
all-encompassing 
definition of a Regional Development Strategy for 
the first time in Slovenia. It would be useful if this 
Strategy  included,  as  main  elements,  a  better 
consideration 
of 
development  needs  on  the  level  of  functional 
inclusive  approach 
territorial  areas,  a  more 
NGOs, 
(business, 
towards 
municipalities, and ministries), and the provision of 
a  continuous  and  stable  regional  development 
funding source from the national budget alongside 
the types of EU support. 

stakeholders 

coordination 

better 

and 

The  regional  development  agencies  could 
play  an  active  role  in  regional  policy.  In  the 
the  Balanced  Regional 
process  of  updating 
Development  Act,  the  existing  Regional  Develop-
ment  Agencies  (RDAs)  could  be  more  involved 
regional policy implementation, both in an EU and 
national  context.  Multi-level  governance  needs  to 
be  strengthened  to  ensure  better  coordination 
between the national, regional, and local level, also 
in view  of  a  tentative  transfer  of  spatial planning 
competencies to the regional level. 

The new laws on the restructuring of the coal 
regions  are  scheduled  for  adoption  in  2024. 
They  can  help  boost  decarbonisation 
in 
Slovenia.  To  successfully  implement  the  green 
transition  of  energy  production  in  Slovenia,  a 
is  under 
legislative 
prospective 
preparation  concerning 
from  coal, 
including  for  the  gradual  closure  of  the  Velenje 
coal  mine  and  the  restructuring  of  the  Savinjsko-
Šaleška  coal  region.  The  implementation  is  going 
hand  in  hand  with  additional  investments  in 
renewable  energy  sources  which,  together  with  a 
the 
timely  adoption,  will  help 
decarbonisation  of  electricity  production 
in 
Slovenia and deliver a just transition.  

framework 
the  exit 

to  boost 

70 

 
Slovenia could benefit from the opportunities 
of the STEP initiative to boost investments in 
critical 
industry 
transformation. 

technologies 

support 

to 

71 

 
MACROECONOMIC STABILITY 
ANNEX 18: KEY FINANCIAL SECTOR DEVELOPMENTS 

the  global  financial  crisis. 

Between June 2022 and November 2023, interest 
rates  on  new  loans  to  households  and  SMEs 
soared  by  around  4  percentage  points  to  levels 
In 
unseen  since 
November  2023,  interest  rates  on  new  loans  to 
households 
at 
house 
purchases 
floating/variable 
reached  5.66%,  quite 
significantly  above  the  euro  area  average  of 
4.87%, while interest rates on new loans to SMEs 
reached 5.51%, slightly below the 5.65% observed 
on average in the euro area. 

rates 

for 

Real  estate  vulnerabilities  have  declined  as 
the  residential  real  estate  market  has  been 
in 
cooling  since  Q1-2022.  Annual  growth 
residential  real-estate  prices  has  slowed  down 
from a peak of 17.0% in Q1-2022 to 7.4% in Q2-
2023  and  the  number  of  sales  also  fell  over  this 
period.  Demand  for  housing  loans  has  been 
reduced  by  higher  interest  rates,  the  weaker 
outlook  for  the  real-estate  market,  and  declining 
consumer  confidence.  Household  resilience  to 
rising debt-servicing costs has increased in recent 
years, 
to  macroprudential 
restrictions  on  household  lending,  although  these 
restrictions were slightly loosened in July 2023. On 
22 December 2023,  the  Bank  of  Slovenia  decided 
to  increase  its  countercyclical  capital  buffer  from 
0.5%  to  a  positive  neutral  rate  of  1%  as  of 
1 January 2025.  

in  part 

thanks 

Bank 

the 
and 

European 
Development 

Sustainable finance is not yet very developed 
in Slovenia, but some recent initiatives have 
shown  growing  awareness  of  the  sector’s 
potential.  In  June  2021  and  January  2023, 
Slovenia issued sovereign ‘sustainability’ bonds of 
EUR 1 billion  and  EUR 1.25 billion  respectively.  On 
for 
27 June 2023, 
Reconstruction 
invested 
EUR 35 million in a senior preferred green bond as 
part  of  Nova  Ljubljanska  Banka’s  EUR 500 million 
public issuance. In July 2021, the Bank Association 
of  Slovenia  issued  guidelines  summarising  key 
regulatory  requirements  in  sustainable  financing 
and  providing  banks  with  non-binding  guidelines 
for  the  development  of  sustainable  financing 
according  to  the  principle  of  proportionality.  In 
August  2022,  the  Bank  Association  of  Slovenia 
also  prepared  a  sample  questionnaire  to  assess 

government 

could  significantly 

Slovenia’s banking sector has performed well 
thanks to improving asset quality and a rise 
in  net  interest  income.  Return  on  equity  has 
systematically  exceeded  9%  since  2017,  and 
reached  a  record  high  of  17.0%  in  the  first  9 
months  of  2023  (vs  9.9%  in  the  EU),  mainly 
thanks  to  an  increase  in  net  interest  income  and 
low impairments. However, the new banking tax of 
0.2%  of  total  assets  (about  0.19%  of  GDP) 
on 
announced 
the 
by 
reduce 
4 September 2023 
banks’  future  profits  over  the  next  5  years.  The 
capital  adequacy  ratio  has  slightly  increased  over 
the  last  12  months,  and  reached  19.3%  in 
September  2023  (vs  19.6%  in  the  EU).  The  non-
performing-loan  ratio  has  continued  to  improve, 
and  fell  to  1.5%  in  September  2023  (vs  1.8%  in 
the EU), down from 1.9% a year earlier. However, 
the  rise  in  inflation  and  interest  rates  may  still 
negatively 
impact  the  debt  sustainability  of 
borrowers  in  the  future.  With  a  loan-to-deposit 
ratio of 70.1% (vs 93.3% in the EU), banks benefit 
from  a  substantial  excess  of  deposits  over  loans. 
This ensures a relatively stable funding basis  and 
abundant  liquidity,  allowing  banks  to  significantly 
reduce  the  funding  they  take  from  the  ECB  from 
5.91%  in  August  2021  to  0.20%  in  December 
2023  (vs  1.43%  in  the  euro  area).  Thanks  to  an 
increase in the liquidity buffer and a decline in net 
liquidity  outflows,  the  liquidity  coverage  ratio 
improved from 255% in September 2022 to 314% 
in  September  2023.  However,  this  generally 
positive outlook could be threatened in the future 
by political or legal developments. There is still no 
lasting  solution  to  the  legacy  portfolio  of  loans 
issued by Slovenian banks in Swiss francs (124), and 
adverse  court  rulings  on  this  issue  remain  a  real 
possibility,  even  if  the  issue  only  concerns  a  few 
banks. 

Credit  growth  has  fallen  due  to 
less 
attractive lending conditions. Due to the rise in 
interest  rates,  year-on-year  credit  growth  has 
plunged  since  its  peak  of  September  2022  and 
turned deeply negative to reach -4.8% (vs 0.4% in 
lending  to  non-financial 
the  euro  area)  for 
corporations 
in  December  2023.  Lending  to 
households  held  up  better  with  year-on-year 
growth  of  3.7%  (vs  0.3%  in  the  euro  area). 

(124) See previous country reports for more details on the issue of 

loans denominated in Swiss francs. 

72 

 
 
 
 
 
Table A18.1:Financial soundness indicators 

(1) Last data: Q3 2023. 
(2) Data are annualised. 
(3) Data available for EA countries only, EU average refers to EA area.  
Source: ECB, Eurostat. 

the  environmental,  social  and  management  (ESG) 
aspects of the companies financed by banks (125). 

The  Bank  of  Slovenia  has  set  up  a  fintech 
innovation  hub.  This  dedicated,  single  point  of 
contact  aims  to:  (i)  facilitate  the  exchange  of 
information related to innovative business models; 
and  (ii)  clarify  regulatory  requirements  for  the 
areas  within  the  competence  of  the  Bank  of 
Slovenia.  The  innovation  hub  targets  businesses 
planning  to  provide  solutions  based  on  financial 
technologies  in  Slovenia  or  within  the  European 
Economic Area (126). 

(31%  market 

The  insurance  market  is  highly  concentrated 
and  largely  state-owned.  It  is  dominated  by 
share), 
Zavarovalnica  Triglav 
(19%)  and 
followed  by  Zavarovalnica  Sava 
Generali 
these  companies 
controlled  two-thirds  of  the  insurance  market  in 
2023.  Generali  significantly  increased  its  market 
share  in  2020  by  acquiring  Adriatic  Slovenica 
Zavarovalna  druzba.  The  two  largest  insurers  are 
controlled by the Slovenian state.  

(16%).  Together, 

Insurers’  profitability  deteriorated  in  2022 
due  to 
inflation,  but  average  solvency 
remains adequate. Insurance corporations’ gross 
written premium increased again in 2022 (+6.2%), 
with  an  especially  strong  increase  in  the  general 
insurance  segment.  Non-life  insurers’  combined 

(125) Združenje bank Slovenije (ZBS), ESG questionnaire 

(126) Banka Slovenije, Fintech innovation hub 

73 

ratio  deteriorated  from  86%  in  2021  to  92%  in 
2022  but  remains  below  the  EU  average  (96%) 
and  the  critical  profitability  threshold  of  100%. 
This deterioration was mostly due to high inflation, 
which  led  to  a  rise  in  the  average  cost  of  claims 
that  was  only  partly  offset  by  an  increase  in 
premiums.  Insurers’  profit  decreased  by  14.4% 
between 2021 and 2022. Overall capital adequacy 
remained adequate (at least on average) at 233% 
in  2022,  slightly  up  from  231%  in  2021.  On 
6 July 2023,  the  Slovenian  Parliament  decided  to 
replace 
complementary  private  health 
insurance  system  with  a  mandatory  public 
insurance  system  managed  by  the  public  health 
insurance  fund  ZZZS  as  of  1 January 2024.  This 
reform  may  reduce  the  profitability  of  insurers 
that have been active in this segment.  

the 

the 

Slovenian  capital  markets  remain  less  liquid 
and  developed  than  the  EU  average,  but 
reforms  are  underway.  Slovenian  corporations 
rely  more  on  bank  funding  and  less  on  market 
funding  than  the  EU  average.  Assets  under 
management  by 
investment-fund  sector 
totalled  EUR 3.9 billion  at  the  end  of  2022,  down 
10.0%  year-on-year,  due  to  the  revaluation  of 
equity  funds,  which  accounted  for  65.6%  of 
total  assets  under 
domestic  mutual  funds’ 
management 
in  2022.  Despite  the  increased 
volatility and high uncertainty in financial markets, 
net  inflows  into  domestic  mutual  funds  remained 
positive but still declined by 54.9% between 2021 
and  2022.  Domestic  mutual  funds  hold  most  of 
their  assets 
investment-fund 
shares/units,  which  exposes  them  to  market  risk. 
The equity investments of domestic mutual funds 

in  equity  and 

2017201820192020202120222023EUMedianTotal assets of the banking sector (% of GDP)94.088.687.898.194.590.986.7257.0184.6Share (total assets) of the five largest banks (%)61.560.860.967.368.771.1--69.6Share (total assets) of domestic credit institutions (%)154.254.051.048.349.151.551.7-62.9NFC credit growth (year-on-year % change)1.91.52.70.37.212.4-4.8-2.4HH credit growth (year-on-year % change)7.26.86.10.75.37.73.7-1.4Financial soundness indicators:1        - non-performing loans (% of total loans)9.26.03.43.02.11.81.51.81.8- capital adequacy ratio (%)18.117.918.518.318.418.519.319.620.1- return on equity (%)29.110.710.311.39.513.317.09.913.2Cost-to-income ratio (%)163.759.959.459.559.856.042.152.844.9Loan-to-deposit ratio (%)174.773.173.366.665.470.370.193.380.2Central bank liquidity as % of liabilities3.53.32.83.55.51.70.2-0.7Private sector debt (% of GDP)76.172.568.569.566.266.0-133.0118.4Long-term interest rate spread versus Bund (basis points)64.353.452.859.044.474.997.0107.7104.2Market funding ratio (%)34.034.032.232.230.627.9-50.839.8Green bonds outstanding to all bonds (%)3---0.20.20.21.24.02.71-34-1011-1718-2424-27Colours indicate performance ranking among 27 EU Member States. 
 
 
  
 
focus  mostly  on  the  US.  The  recovery  and 
resilience  plan  includes  plans  for  two  reforms  to 
strengthen capital markets in Slovenia, namely: (i) 
the  adoption  of  a  new  act  on  alternative 
investment funds; and (ii) the implementation of a 
new  strategy  for  the  Slovenian  capital  market, 
setting  out 
further 
specific  measures 
development. 

for 

74 

 
ANNEX 19: TAXATION 

This  annex  provides  an 
indicator-based 
overview of Slovenia’s tax system.  It includes 
information on the tax structure (the types of tax 
that  Slovenia  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 

in  2022 

Slovenia’s  tax  revenues  in  relation  to  GDP 
are slightly lower than the EU aggregate and 
some  relatively  growth-friendly  taxes  are 
underused.  Slovenia’s  labour  tax  revenues  as  a 
percentage  of  GDP  were  slightly  below  the  EU 
aggregate 
(see  Table  A19.1).  The 
country’s  strong  reliance  on  labour  taxation  was 
reflected  in  a  share  of  labour  taxes  in  total  tax 
revenues  that  was  above  the  EU  aggregate  (see 
Graph  A19.1).  Starting 
in  1  July  2025,  a 
mandatory  contribution  to  long-term  care  will  be 
charged  at  2%  of  gross  wages  (1%  paid  by 
employers  and  1%  by  employees).  In  January 
2024,  the  government  abolished  the  voluntary 
supplementary  health  insurance  and  replaced  it 
with  an  additional  mandatory  health  contribution. 
The health contribution is initially being charged at 
EUR 35  per  month  and  will  later  be  indexed  to 
average  gross  wage  growth.  Revenues  from 
consumption  and  environmental  taxes  as  a  share 
of total taxation were above the EU aggregate, but 
revenues  from  capital  taxes  were  below.  The 
Reconstruction, 
Act 
December 

2023 

on 

Development  and  the  Provision  of  Financial 
Resources increased the corporate income tax rate 
by 3 pps to 22% and introduced a tax on banking 
assets  for  2024-2028.  Revenue  will  be  used  to 
finance  reconstruction  after  the  August  2023 
floods. Environmental tax revenue as a percentage 
of  total  tax  revenue  and  GDP  was  above  the  EU 
aggregate and was (as was the case for other EU 
Member  States)  almost  entirely  composed  of 
energy  and  transport  taxes  (see  Graph  A19.1). 
However,  there  could  be  potential  to  strengthen 
the  application  of  the  ‘polluter  pays’  principle. 
Slovenia  has  implemented  three  of  the  six  main 
types  of  pollution  and  resources  taxes  (i.e.  taxes 
on waste landfilling, discharge of waste into water 
and  plastic  products).  There  could  be  scope  to 
(including  on 
expand  waste  disposal 
incineration)  and  to  implement  the  three  other 
types (i.e. taxes  on  NOx emissions,  pesticides  and 
fertilisers).  However,  revenues  from  recurrent 
property  taxes,  which  are  considered  to  be 
particularly  conducive  to  growth,  were  clearly 
below the EU aggregate. A greater use of recurrent 
property  taxes  could  increase  tax  revenue  and 
boost economic growth.  

taxes 

Slovenia’s  labour  tax  wedge  is  high  across 
different  wage  levels  and  the  labour  tax 
burden  is  less  progressive  than  the  EU 
average. Slovenia’s labour tax wedge was higher 
in  2023  than  the  EU  average  at  various  income 
levels, in particular for single people at 50% of the 

Table A19.1:Taxation indicators 

(1) Forward-looking effective tax rate (OECD). 
(2) A higher value indicates a stronger redistributive impact of taxation. 
(*) EU-27 simple average. 
(**) Forecast value for 2022, if available. For more details on the VAT gap, see European Commission, Directorate-General for 
Taxation and Customs Union, 2023, VAT gap in the EU, https://data.europa.eu/doi/10.2778/911698. 
For more data on tax revenues as well as the methodology applied, see the Data on Taxation webpage, 
https://ec.europa.eu/taxation_customs/taxation-1/economic-analysis-taxation/data-taxation_en. 
Source: European Commission, OECD 

75 

SI2010202020212022202320102020202120222023Total taxes (including compulsory actual social contributions) (% of GDP)38.037.838.437.537.940.040.440.2Labour taxes (as % of GDP)19.620.019.919.320.021.320.720.3Consumption taxes (as % of GDP)13.712.613.112.910.810.711.211.0Capital taxes (as % of GDP)4.75.15.45.37.18.08.68.9Of which, on income of corporations (as % of GDP)1.82.02.52.32.42.53.03.4Total property taxes (as % of GDP)0.60.60.60.61.92.32.22.1Recurrent taxes on immovable property (as % of GDP)0.50.50.50.51.11.21.11.0Environmental taxes as % of GDP3.63.33.12.92.42.22.32.0Tax wedge at 50% of average wage (Single person) (*)33.737.239.539.337.233.931.732.131.831.7Tax wedge at 100% of average wage (Single person) (*)42.543.143.542.943.341.040.139.940.040.2Corporate income tax - effective average tax rates (1) (*)17.417.417.419.519.019.0Difference in Gini coefficient before and after taxes and cash social transfers (pensions excluded from social transfers) (2) (*)10.69.58.58.38.68.18.27.9Outstanding tax arrears: total year-end tax debt (including debt considered not collectable) / total revenue (in %) (*)6.14.840.935.5VAT Gap (% of VAT total tax liability, VTTL)(**)8.65.42.09.75.4SloveniaEU-27Tax structureProgressivity & fairnessTax administration & compliance 
 
 
 
       
 
Graph A19.1: Tax revenues for different tax types as % of total taxation 

(1) Values for EU are GDP-weighted EU averages (EU aggregates) 
Source: European Commission 

average  wage  (see  Graph  A19.2).  Second  earners 
at  a  wage  level  of  67%  of  the  average  wage, 
whose spouses earn the average wage, were also 
subject to a tax wedge considerably above the EU 
average.  However,  the  difference  between  their 
tax wedge and that of single earners at the same 
wage  level  was  slightly  below  the  EU  average. 
Slovenia  is  one  of  the  Member  States  with  the 
lowest income inequality (as measured by the GINI 
coefficient)  and  the  tax  benefit  system  helped 
reduce  income  inequality  by  more  than  the  EU 
average in 2022.  

Graph A19.2: Tax wedge for single and second 
earners as a % of total labour costs, 2023 

35.5%, but that average was inflated by very large 
values in a few Member States. Slovenia is among 
the  best performing  countries  with  respect to  on-
time  filing  of  corporate  income  tax  returns  but  is 
the  worst  performer  for  on-time  filing  rates  of 
personal income tax, according to the International 
Survey  on  Revenue  Administration.  The  VAT 
(the  gap  between  revenues 
compliance  gap 
actually  collected  and  the  theoretical  tax  liability) 
decreased to 2.0%, even if this was at least partly 
due  to  the  COVID-19-induced  economic  crisis.  At 
any rate, it was clearly below the EU-wide gap of 
5.4%.  The  VAT  refund  procedure  of  Council 
Directive  2008/9/EC  has  been  fully  digitalised 
since  September  2023,  reflecting  the  ongoing 
efforts to enhance efficiency and compliance.  

The second earner tax wedge assumes a first earner at 100% 
of the average wage and no children. For the methodology of 
the tax wedge for second earners, see OECD, 2016, Taxing 
Wages 2014-2105. 
Source: European Commission 

is  making  good  progress 

Slovenia 
in 
digitalising  its  tax  administration,  and  this 
can  help  reduce  tax  arrears  and  compliance 
costs. Outstanding tax arrears declined slightly by 
1.3 pps. to 4.8% of total net revenue in 2021. This 
was  significantly  below  the  EU-27  average  of 

76 

37.239.943.346.743.22025303540455050100150Tax wedge, % of total labour costsEarnings as % of the average wageSingle earner - SISingle earner - EU averageSecond earner -  SISecond earner -  EU average50.627.322.151.434.414.1Tax revenue shares in 2022, Slovenia (outer ring) and EU (inner ring)Taxes on labourTaxes on consumptionTaxes on capital6.43.91.00.90.30.21.22.50.42.70246810Slovenia -environmentaltaxationEU -environmentaltaxationSlovenia -property taxationEU - propertytaxationEnvironmental and property taxation as % of total tax revenue, Slovenia 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) NIIP excluding direct investment and portfolio equity shares. 
Source: Eurostat and ECB as of 2024-5-17, where available; European Commission for forecast figures (Spring forecast 2024). 

77 

2004-072008-122013-2020212022202320242025Real GDP (y-o-y)5.2-1.02.38.22.51.62.32.6Potential growth (y-o-y).1.81.52.42.43.02.92.9Private consumption (y-o-y)3.10.91.710.33.61.31.52.2Public consumption (y-o-y)2.90.92.06.1-0.52.46.92.0Gross fixed capital formation (y-o-y)7.8-8.91.712.63.59.53.83.4Exports of goods and services (y-o-y)13.10.64.114.57.2-2.02.33.8Imports of goods and services (y-o-y) 12.6-1.63.817.89.0-5.14.63.6Contribution to GDP growth:Domestic demand (y-o-y)4.2-1.51.68.82.53.23.02.3Inventories (y-o-y)0.8-0.90.20.41.0-4.41.00.0Net exports (y-o-y)0.11.50.5-1.0-1.02.8-1.60.3Contribution to potential GDP growth:Total Labour (hours) (y-o-y).0.10.30.70.60.90.60.6Capital accumulation (y-o-y).0.6-0.10.30.40.70.80.9Total factor productivity (y-o-y).1.21.41.51.41.41.41.4Output gap4.1-1.4-1.42.93.01.61.10.9Unemployment rate5.96.96.84.84.03.73.73.6GDP deflator (y-o-y)2.81.71.32.76.58.93.33.0Harmonised index of consumer prices (HICP, y-o-y)3.12.70.62.09.37.22.82.4HICP excluding energy and unprocessed food (y-o-y)2.51.81.01.06.87.83.42.2Nominal compensation per employee (y-o-y)6.32.73.08.15.011.86.14.4Labour productivity (real, hours worked, y-o-y)5.1-0.11.92.8-1.50.01.41.8Unit labour costs (ULC, whole economy, y-o-y)2.22.92.31.15.411.44.32.3Real unit labour costs (y-o-y)-0.61.21.0-1.5-1.02.30.9-0.6Real effective exchange rate (ULC, y-o-y)0.10.80.51.21.43.6-0.8-0.3Real effective exchange rate (HICP, y-o-y)0.10.2-0.1-0.3-0.31.1..Net savings rate of households (net saving as percentage of net disposable income)9.65.06.412.1....Private credit flow, consolidated (% of GDP)14.03.6-1.23.55.2...Private sector debt, consolidated (% of GDP)80.8111.979.066.266.0...of which household debt, consolidated (% of GDP)20.329.027.426.325.9...of which non-financial corporate debt, consolidated (% of GDP)60.583.051.639.940.0...Gross non-performing debt (% of total debt instruments and total loans and advances) (1)..8.01.71.4...Corporations, net lending (+) or net borrowing (-) (% of GDP)-6.70.02.71.0-3.11.4-0.20.2Corporations, gross operating surplus (% of GDP)18.818.919.920.318.718.615.715.0Households, net lending (+) or net borrowing (-) (% of GDP)4.83.65.38.34.65.34.93.8Deflated house price index (y-o-y)12.8-3.73.17.94.3-0.2..Residential investment (% of GDP)3.73.42.22.42.83.1..Current account balance (% of GDP), balance of payments-2.6-1.35.63.3-1.04.51.31.2Trade balance (% of GDP), balance of payments-0.70.88.45.92.36.8..Terms of trade of goods and services (y-o-y)-0.7-0.90.5-2.1-3.12.70.30.1Capital account balance (% of GDP)-0.30.0-0.20.3-0.4-0.3..Net international investment position (% of GDP)-15.2-41.4-24.8-7.7-1.53.7..NENDI - NIIP excluding non-defaultable instruments (% of GDP) (2)-8.0-37.8-10.19.415.219.4..IIP liabilities excluding non-defaultable instruments (% of GDP) (2)72.5107.598.991.582.383.7..Export performance vs. advanced countries (% change over 5 years)..7.915.16.42.5..Export market share, goods and services (y-o-y)........Net FDI flows (% of GDP)0.5-0.3-1.6-0.8-2.3-0.8..General government balance (% of GDP)-1.1-4.7-2.4-4.6-3.0-2.5-2.8-2.2Structural budget balance (% of GDP)-3.1-4.0-1.4-5.9-4.4-2.8-2.7-2.1General government gross debt (% of GDP)25.638.975.874.472.569.268.166.4forecast 
 
 
 
  
 
 
ANNEX 21: DEBT SUSTAINABILITY ANALYSIS 

This  annex  assesses  fiscal  sustainability 
risks  for  Slovenia  over  the  short,  medium 
and  long  term.  It  follows  the  multi-dimensional 
approach  of  the  European  Commission’s  2023 
Debt Sustainability Monitor, updated based on the 
Commission 2024 spring forecast. 

1  –  Short-term  risks  to  fiscal  sustainability 
low.  The  Commission’s  early-detection 
are 
indicator  (S0)  does  not  point  to  any  major  short-
term  fiscal  risks  (Table A21.2) (127).  Government 
gross  financing  needs  are  expected  to  remain 
broadly constant at around 7% of GDP on average 
over  2024--2025 
(Table A21.1, Table 1).  The 
sovereign  credit  rating  has  been  unchanged  and 
between  A3  and  AA-  since  autumn  2020.  The 
credit  rating  outlook  is  stable  at  all  four  major 
rating agencies by the cut-off date of this report.  

2  –  Medium-term  fiscal  sustainability  risks 
appear medium.   

The DSA baseline shows that the government 
debt ratio is expected to slightly decline until 
2026 before rising to around 73% of GDP in 
2034  (Graph 1,  Table  1) (128).  The  debt  dynamics 
relies  on  the  assumption  of  a  structural  primary 
deficit  (excluding  changes  in  cost  of  ageing)  of 
1.2%  of  GDP  as  of  2025.  Compared  to  historical 
data since 1980, this appears plausible, as 56% of 
past fiscal positions were more stringent than the 
one  assumed  in  the  baseline.  (Table  A21.2) (129). 

(127) The S0 is a composite indicator of short-term risk of fiscal 
stress. It is based on a wide range of fiscal and financial-
competitiveness indicators that have proven to be a good 
predictor of emerging fiscal stress in the past.  

(128) The assumptions underlying the Commission’s ‘no-fiscal 

policy change’ baseline include in particular: (i) a structural 
primary deficit, before ageing costs, of 1.2% of GDP from 
2024 onwards; (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 
ahead); (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; (iv) 
real GDP growth rates from the Commission 2024 spring 
forecast until 2025, followed by the EPC/OGWG ‘T+10 
methodology projections between T+3 and T+10 (average of 
2.3%); (v) ageing costs in line with the 2024 Ageing Report 
(European Commission, Institutional Paper 279, April 2024). 
For information on the methodology, see the 2023 Debt 
Sustainability Monitor (European Commission, Institutional 
Paper 271, March 2024). 

(129) This assessment is based on the fiscal consolidation space 

indicator, which measures the frequency with which a tighter 
fiscal position than assumed in a given scenario has been 
observed in the past. Technically, this consists in looking at 

On the other hand, the debt dynamics benefit from 
a  still  very  favourable  but  declining  snowball 
effect  (around  -1.6  pps.  of  GDP  annually  on 
average  over  2025--2034),  which 
is  also 
supported by the impact of Next Generation EU.  

four 

The  baseline  projections  are  stress-tested 
against 
deterministic 
alternative 
scenarios to assess the impact of changes in 
key  assumptions  relative  to  the  baseline 
(Graph 1).  Under  the  historical  structural  primary 
balance  (SPB)  scenario  (i.e.  the  SPB  returns  to  its 
historical  15-year  average  of  -1.4%  of  GDP)  the 
debt  ratio  would  only  slightly  increase  in  2034 
compared  with  the  baseline  (by  around  1  pp.). 
Under the adverse interest-growth rate differential 
scenario  (i.e.  the  interest-growth  rate  differential 
deteriorates by 1 pp. compared with the baseline), 
the  debt  ratio  would  be  higher  than  under  the 
baseline  by  around  5 pps.  in  2034.  Under  the 
rates 
financial  stress  scenario 
temporarily  increase  by  1 pp.  compared  with  the 
baseline) the government debt ratio would remain 
broadly  unchanged  in  2034  compared  with  the 
lower 
baseline  (+0.3  pp.).  Finally,  under  the 
structural  primary  balance  scenario 
the 
projected cumulative improvement in the SPB over 
2023--2024  is  halved)  the  debt  ratio  would  be 
higher than the baseline by about 2 pps. in 2034. 

interest 

(i.e. 

(i.e. 

The  stochastic  projections  indicate  medium 
risk,  pointing  to  the  moderate  sensitivity  of 
these  projections  to  plausible  unforeseen 
events  (130). These stochastic simulations indicate 
a 42% probability that the debt ratio will be higher 
in 2028 than in 2023, implying medium risks given 
the  high  debt  level.  In  addition,  the  uncertainty 
surrounding  the  baseline  debt  projections  (as 
measured by the difference between the 10th and 
90th  debt  distribution  percentiles,  reaching  around 
29%  of  GDP  in  five  years’  time)  is  medium 
(Graph 2).  

3  –  Long-term  fiscal  sustainability  risks 
appear  overall  high.  This  assessment  is  based 

the percentile rank of the projected SPB within the 
distribution of SPBs observed in the past in the country, 
taking into account all available data from 1980 to 2023. 

(130) The stochastic projections show the joint impact on debt of 

10 000 different shocks affecting the government’s 
budgetary position, economic growth, interest rates and 
exchange rates. This covers 80% of all the simulated debt 
paths and therefore excludes tail events. 

78 

 
 
 
 
 
 
 
the one hand, risk-increasing factors are related to 
the recent increase in interest rates, and the large 
share  of  government  debt  held  by  non-residents. 
In  addition,  risks  stemming  from  the  housing 
sector due to fast increasing house prices. On the 
other-hand,  risk-mitigating  factors  include  the 
stabilisation  of  debt  maturity  at  high  levels  in 
recent  years  and  relatively  stable  financing 
sources with a diversified and large investor base 
and a high share of debt held by domestic central 
bank.  

indicator)  over  the 

on  the  combination  of  two  fiscal  gap  indicators, 
capturing  the  required  fiscal  effort  to  stabilise 
debt (S2 indicator) and bring debt to 60% of GDP 
long  term (131).  This 
(S1 
assessment  is  driven  by  the  unfavourable  initial 
budgetary position and above all by the projected 
rise  in  ageing  costs  mainly  driven  by  pensions. 
Hence, these results are conditional on the country 
maintaining a sizeable SPB over the long term. 

The  S2 
indicator  points  to  high  fiscal 
sustainability  risks.  The  indicator  shows  that, 
relative  to  the  baseline,  the  SPB  would  need  to 
improve by 6.3 pps. of GDP in 2025 to ensure debt 
stabilisation  over  the  long  term.  This  result  is 
underpinned  by  the  projected  rise  in  ageing-
related  costs  (contribution  of  4.7 pps.)  and  an 
unfavourable  initial  budgetary  position  (1.6 pps.). 
Ageing costs’ developments are primarily driven by 
a  projected 
in  pension  expenditure 
(3.1 pps.),  as  well  as  long-term  and  health  care 
expenditure  (0.9 pp.  each)  (Table A21.1,  Table 2). 
Hence,  while  a  number  of 
investments  and 
reforms  in  the  RRP  contribute  to  supporting  the 
efficiency  of  the  Slovenian  health  and  long-term 
care  systems,  additional  measures  may  be 
required  to  further  improve  the  overall  fiscal 
sustainability. 

increase 

The  S1  indicator  points  to  medium  fiscal 
sustainability risks. The indicator shows that the 
country  would  need  to  improve  its  fiscal  position 
by  4.7  pps.  in  2025  to  reduce its debt  to  60%  of 
GDP  by  2070.  This  result  is  driven  by  the  current 
unfavourable 
position 
(contribution  of  0.9 pp.)  and  the  projected  rise  in 
age-related public spending (2.5 pps.). 

budgetary 

initial 

4  –  Finally,  several  additional  risk  factors 
need to be considered in the assessment.  On 

(131)The  S2 

indicator  measures 

fiscal  sustainability 

the 
permanent  SPB  adjustment  in  2025  that  would  be  required 
to  stabilise  public  debt  over  an  infinite  horizon.  It  is 
complemented  by  the  S1  indicator,  which  measures  the 
permanent SPB adjustment in 2025 to bring the debt ratio to 
60% by 2070. The impact of the drivers of S1 and S2 may 
differ due to the infinite horizon component considered in the 
S2  indicator.  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 % of GDP, 
‘medium  risk’  if it  is  between  2%  and 6%  of  GDP,  and  ‘low 
risk’ if the effort is negative or below 2% of GDP. The overall 
long-term  risk  classification  combines  the  risk  categories 
derived from S1 and S2. S1 may notch up the risk category 
derived  from  S2  if  it  signals  a  higher  risk  than  S2.  See  the 
2022 Debt Sustainability Monitor for further details. 

79 

 
 
Table A21.1:Debt sustainability analysis - Slovenia 

Source: Commission services. 

Table A21.2:Heat map of fiscal sustainability risks - Slovenia 

Source: Commission services. 

80