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

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 19.6.2024  SWD(2024) 625 final  COMMISSION STAFF WORKING DOCUMENT 2024 Country Report - Slovakia Accompanying the document Recommendation for a COUNCIL RECOMMENDATION on the economic, social, employment, structural and budgetary policies of Slovakia {COM(2024) 625 final} - {SWD(2024) 600 final}  
 
 
 
 
 
 
 
 
 
 
 
ECONOMIC AND EMPLOYMENT SNAPSHOT 

Growth prospects are improving, 
while competitiveness challenges 
remain 

experienced 

Economic  growth  in  Slovakia  moderated 
in  2023,  but  prospects  for  2024  are 
improving (1). 
a 
Slovakia 
slowdown  in  GDP  growth  to  1.6%  in  2023  in 
light  of  persistently  high  inflationary  pressure 
and stagnating global demand, although there 
were fewer supply chain disruptions. According 
to 
the  Commission’s  Winter  Economic 
Forecast,  real  GDP  growth  is  projected  to  be 
2.2% in 2024 and 2.9% in 2025. This is mainly 
supported  by  growth  in  private  consumption 
and  by  further investments  in  the  automotive 
sector,  which  will  also lead  to  an  acceleration 
in  exports.  Inflation  started  to  moderate  in 
2023  but  remains  high,  as  the  pass-through 
from  energy  and  food  prices  to  other  goods 
and  services  continues.  In  2024,  inflation  is 
projected to continue declining, but will remain 
high. The labour market is expected to remain 
very  tight  on  the  back  of  ongoing  robust 
labour demand, a declining population and low 
this  background, 
labour  mobility.  Against 
further  wage  increases  are  forecast,  with  the 
nominal compensation of employees expected 
to  grow  by  7.8%  in  2024.  Slovakia’s  current 
account  balance 
to 
fluctuations  in  the  economic  performance  of 
its main trade partners. 

remains  vulnerable 

to 

related 

continues 

experience 
Slovakia 
vulnerabilities 
cost 
to 
competitiveness,  external  balances,  the 
housing market and household debt. An in-
depth  review  was  undertaken  as  part  of  the 
macroeconomic  imbalance  procedure  earlier 

this  year.  It  found  that  in  recent  years, 
inflation  in  Slovakia  has  exceeded  the  euro 
area  average,  posing  a  risk  to  its  competitive 
position (2).  In  2022,  the  external  balance 
experienced a sharp decline due to the rise in 
energy  prices.  While  the  current  account 
experienced  a  significant  drop  to  -7.3%  of 
GDP, improvements have been underway since 
mid-2022.  Additionally,  Slovakia  witnessed 
exceptional  growth  in  house  prices  until  the 
end of 2022, triggered by sustained economic 
and wage growth and low interest rates. Over 
the  years,  the  latter  have  also  contributed  to 
strong mortgage growth, which has driven the 
high increase in household debt. 

localised  within  the 

Slovakia's  competitiveness  challenges 
are  likely  to  persist  given  its  economic 
model  that  hampers  productivity.  After 
joining the EU, Slovakia initially benefited from 
comparatively  lower  labour  costs  than  many 
of  its  EU  peers,  along  with  strong  integration 
into  global  supply  chains.  This  foundation 
helped make it resilient and able to absorb the 
deterioration  in  price  competitiveness,  mainly 
caused  by  the  energy  price  shock  and  labour 
cost increases. However, the productivity gains 
have  been 
industrial 
sector,  primarily  the  automotive  industry  with 
its  prevalence  of 
foreign-owned 
companies,  and  have  not  extended  to  other 
sectors  with  a  high  share  of  small  and 
The 
enterprises 
medium-sized 
whereby  most 
production 
in 
investment  decisions 
the  automotive 
industry  depend  on 
large  multinational 
corporations,  makes  the  economy  vulnerable. 
This risks further widening the productivity gap 
with SMEs. This economic model hampers the 
economy’s  flexibility  to  shift  resources  and 
production both among sectors and geographic 
regions (see Annex 17). Reallocating resources 

structure, 

(SMEs). 

large 

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

Country Reports was 15 May 2024. 

(2)  European Commission (2024), In-Depth Review for 
Slovakia, Commission staff working document 
(SWD(2024) 84 final) 

2 

 
 
 
 
which  drove  up  the  deficit (3).  By  contrast, 
despite the inflation spike, revenues only  rose 
from 40.7% of GDP in 2022 to 43.0% in 2023. 
The  government  budget  deficit  is  expected  to 
increase to 5.9% of GDP in 2024, driven by the 
extension of measures to mitigate the impact 
of  high  energy  prices  and  the  introduction  of 
new  spending  measures. 
the 
government  budget  deficit  is  expected  to 
remain  high  at  5.4%  of  GDP,  as  most  of  the 
spending measures are of a permanent nature.  

In  2025, 

The  general  government  debt  is  set  to 
increase  over  the  forecast  period.  While 
the  government  debt-to-GDP  ratio  decreased 
to  56.40%  in  2023  due  to  strong  growth  in 
nominal GDP, the high forecast deficits will put 
it back on an upward trajectory, up to 58.5% in 
2024 and 59.9% in 2025.   

to 

The  ageing  population  poses  challenges 
to  the  long-term  sustainability  of  public 
finances. The fiscal sustainability risks remain 
high  in  the  medium  and  long  term,  driven  in 
particular  by  rising  ageing  costs  and  an 
unfavourable  initial  budgetary  position  (see 
Annex  21).  The  demographic  developments 
constitute a significant fiscal challenge as they 
lead to higher spending on pensions and, albeit 
to  a  lesser  extent,  also  on  healthcare  and 
long-term  care  costs.  According 
the 
Commission’s 2024 Ageing Report, the old-age 
dependency ratio – the ratio of people over 65 
to people of working age, i.e. 20-64 years old 
– is expected to more than double from 2022 
to  2060  as life expectancy  increases.  Pension 
spending  is  estimated  to  increase  from  8.5% 
of GDP in 2022 to 11.3% in 2070, marking a 
significant 
improvement  compared  to  the 
2021  Ageing  Report  projections.  However,  the 
projected  change  is  still  well  above  the  EU 
average 
(0.4  percentage  points  change 
between  2022  and  2070).  This  notable 
improvement  is  due  to  the  reintroduction  of 
the  link  between  life  expectancy  and  the 
retirement age in 2022 (effective as of 2031). 

(3)  The greatest expenditure increasing measures include 
support related to high energy prices, an increase in 
child allowances and tax bonus, a wage increase in 
public sector, and a one-time 13th pension payment 
(social benefit). 

can  help  ensure  the  revival  of  productivity 
growth, 
improve  competitiveness,  alleviate 
regional  disparities  in  economic  development, 
and address the green and digital transition. 

in 

for 

and 

resources 

Slovakia  faces  other  competitiveness 
challenges,  notably 
leveraging  the 
opportunities presented by the green and 
digital  transition.  Coupled  with  a  high  level 
of  energy  consumption  in  its  industry,  the 
country’s  progression 
towards  a  greener 
economy is being slowed down by inadequate 
energy-saving  measures, 
funding 
renewable 
sustainable 
economic practices. In this sense, investments 
to  help  achieve  carbon  neutrality  and 
sustainable  clean  technology  are  still  needed. 
Public  investment  in  research  and  innovation 
in  Slovakia  is  relatively  modest,  at  0.98%  of 
GDP  in  2022,  one  of  the  lowest  compared  to 
the  EU  average  of  2.22%  of  GDP  (see  Annex 
11). Moreover,  there 
is  a  significant  gap 
between  the  skills  currently  available  in  the 
workforce  and  the  demand  for  green  and 
digital  skills  that  will  be  needed  for  future 
jobs.  This  mismatch  is  exacerbated  by  the 
insufficient  availability  and  uptake 
of 
reskilling  opportunities  at 
upskilling  and 
present.  Furthermore,  the  implementation  of 
investments 
the 
insufficient  quality  of  public  administration 
and public procurement.  

is  also  held  back  by 

Public finances have deteriorated, 
while challenges with long-term 
sustainability persist 

result  of 

After the decrease in the budget deficit in 
2022,  public  finances  have  deteriorated 
rising 
significantly  as  a 
expenditure.  The  general  government  deficit 
increased from 1.7% of GDP in 2022 to 4.9% 
in 2023. In 2023, the inflationary spike led to 
an increase in public spending, from 42.4% of 
GDP  in  2022  to  47.9%  of  GDP  in  2023.  This 
was driven mostly by new spending measures, 

3 

 
 
 
Box 1: 

Slovakia’s competitiveness in brief  

The  competitiveness  of  Slovakia  has  further  deteriorated.  Its  position  in  the  World 
Competitiveness Ranking worsened compared to 2022, and the country ranks second last in the 
EU in terms of innovation. Slovakia is relatively well integrated into global value chains and has 
a  well-developed  industrial  base.  The  Slovak  recovery  and  resilience  plan  tackles  several 
challenges related to improving its business environment, for instance by reducing the regulatory 
burden, developing a better research and innovation ecosystem, and deploying renewable energy 
sources.   

However, competitiveness challenges remain:  

• 

• 

• 

lack  of  diversification  in  industrial  and  economic  sectors,  limiting  the  economic 
potential and contributing to the divide between large multinationals and SMEs;  

insufficient quality of public administration and public procurement, holding back the 
implementation of investment projects and the absorption capacity of EU funds;  

lack  of  digitalisation,  innovation  and  skills  development,  compounded  by  large 
regional,  social  and  economic  disparities,  undermining  productivity  and  the  potential  to 
advance the green and digital transition.  

However,  several  challenges  persist  in  the 
Slovak  pension  system.  Recently  adopted 
measures  relate  to  a  permanent  increase  of 
thirteenth  pension  payment  and  a 
the 
decrease 
in  the 
in  pension  contributions 
second  pillar.  Some  compensatory  measures 
have been additionally put in place, tightening 
the  access  to  the  recently  adopted  early 
retirement  scheme  via  a  stricter  pension 
reduction  rate  (‘malus’  –  set  at  the  unified 
level  of  0.5%)  and  the  gradual  linking  of  the 
required  contributory  period 
(currently  40 
years) to life expectancy.  

Low labour productivity and lack 
of equal opportunities undermine 
growth potential 

labour  productivity 

Slovakia’s 
is  not 
converging  to  that  of  technologically 
more  advanced  Member  States.  Labour 
productivity growth has been largely absent in 
recent years and is at risk of being structurally 
behind  that  of  regional  peers  (see  Annex  12). 
This  trend  is  unlikely  to  reverse  without 
the  education  and 
measures 
training system in terms of general  education 
(for  children  and  young  people)  and  by 

improving 

4 

increasing the  share  of  adults in  education  or 
training.  The  latter  objective  could  also  be 
achieved  by  using  active 
labour  market 
policies  aimed  at  incentivising  upskilling  and 
reskilling.  Moreover,  the  ongoing  green  and 
digital  transition  calls  for  qualified  staff  in 
specific  areas  to  increase  the  digital  intensity 
of  Slovak  businesses  and  strengthen  the 
position  of  relevant  economic  sectors.  This 
relates  especially  to  the  manufacturing  of 
green technologies, for instance in the domain 
of  e-mobility  and  the  battery  industry  (see 
Annex  12).  The  urgency  to  step  up  efforts  in 
equipping workers with relevant skills is visible 
in 
reported  difficulties  by 
businesses  in  recruiting  qualified  staff  (see 
Annex 14). 

the  widely 

of 

lack 

equal 

The 
opportunities 
negatively affects the labour market and 
productivity.  The  Social  Scoreboard,  which 
covers  key  social  indicators  as  part  of  the 
European Pillar of Social Rights and the 2030 
targets  on  employment,  skills  and  poverty 
reduction, shows that two-thirds of jobseekers 
are 
long-term  unemployed,  while  many 
women  and  marginalised  Roma  communities 
are not active in the labour market (see Annex 
14). The Social Scoreboard also shows that the 
enrolment rate of children under the age of 3 
in  early  childhood  education  and  care  is  the 

 
 
 
 
 
in  basic  skills 

lack  a  minimum 

lowest in the EU. In addition, the deterioration 
in the performance of 15-year-old students in 
the  OECD’s  Programme  for 
International 
Student  Assessment  (PISA)  2022  shows  that 
level  of 
young  people 
proficiency 
(mathematics, 
reading and science) (see Annex 15). Moreover, 
the  segregation  of  Roma  in  education  shows 
that Slovakia is struggling with social inclusion. 
Generally,  there  are  many  regional  disparities 
in  employment  opportunities,  the  availability 
of  basic  services,  adequate  housing  and 
access  to  healthcare,  as  outlined  in  Annexes 
14,  16  and  17.  These  weaknesses  have  a 
strong impact on education and labour market 
outcomes as well as productivity.  

Box 2 

UN Sustainable Development Goals (SDGs) 

Slovakia  is  making  progress  in  all  SDGs  related  to  competitiveness  and  productivity 
(SDGs  4,  8,  9).  However,  it  needs  to  step  up  efforts  to  close  the  gap  with  the  EU 
average  on  all  of  them.  In  SDG  9  related  to  innovation,  industry  and  sustainable 
infrastructure,  Slovakia  is  below  the  EU  average,  mostly  due  to  low  R&D  and  innovation 
expenditure and a low share of environmental goods and services. Sustainable economic growth 
is below the EU average even after strong convergence in recent years, with real GDP per capita 
significantly  lower  than  the  EU  average  in  2023.  Most  employment  indicators  for  Slovakia  are 
around  the  EU  average  except  for  the  long-term  unemployment  rate,  which  is  above  the  EU 
average despite increased labour market tightness (see Annex 1).  

Out  of  the  17  indicators,  10  SDGs  remain  below  the  EU  average.  Besides  those 
highlighted  above,  these  relate  to  affordable  and  clean  energy  (SDG  7),  climate-related  SDGs 
(SDGs 12 and 13), fairness (SDGs 3 and 5) and microeconomic stability, specifically justice and 
partnerships  (SDGs  16  and  17).  In  contrast,  Slovakia  performs  well  on  indicators  related  to 
environmental sustainability (SDGs 2, 6, 11, 15), in particular on the share of buses and trains in 
total  passenger  transport.  It  also  performs  better  than  the  EU  average  on  poverty  indicators 
(SDG 1). 

5 

 
 
 
 
 
 
IMPLEMENTATION OF KEY REFORMS AND 
INVESTMENTS USING EU INSTRUMENTS 

Funding from the Recovery and Resilience 
Facility  (RRF)  and  cohesion  policy  is 
mutually reinforcing Slovakia’s efforts to 
boost 
its  competitiveness  and  foster 
In  addition  to  the 
sustainable  growth. 
EUR 6.4  billion  of  RRF  funding  described  in 
Annex  3,  cohesion  policy  provides  Slovakia 
with  EUR 12.6  billion  for  the  2021-2027 
period.  Support  from  these  two  instruments 
combined  represents  close  to  15.47%  of  the 
country’s  2023  GDP,  compared  to  the  EU 
average of 5.38% of GDP (see Annex 4). 

Under  its  recovery  and  resilience  plan 
(RRP),  Slovakia  has  launched  important 
policy  measures  that  are  expected  to 
improve the country’s competitiveness. In 
particular, the RRP envisages major reforms in 
the  areas  of  renewable  energy  sources, 
education, healthcare, research and innovation 
(R&I),  public  procurement  and  e-government 
solutions.  Slovakia  also  undertook  substantial 
investments 
industry  decarbonisation, 
energy  renovation  of  buildings,  innovation 
potential 
and  medium-sized 
enterprises  (SMEs),  education  and  training, 
digitalisation, and research.  

small 

of 

in 

of 

implementation 

The 
Slovakia’s 
recovery and resilience plan is underway, 
however  timely  completion  will  require 
increased  efforts.  Slovakia  has  submitted 
four  payment  requests,  corresponding  to  72 
milestones  and  targets  in  the  plan,  of  which 
three  completed  and  resulting  in  an  overall 
disbursement,  net  of  pre-financing,  of  EUR 
1.77 billion 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 
emerging 
the 
effectiveness  and  efficiency  of  administrative 
reforms  and 
capacities 
investments  can  be  completed  on  time.  Low 
lack  of  administrative 
effectiveness  and 

delays  while 

to  ensure 

increasing 

that 

capacity  at  various  levels  of  government,  as 
well as other obstacles linked, for instance, to 
public 
lengthy 
permitting  procedures  are  hampering  the 
the  RRP, 
implementation  of 
successful 
especially for large investment projects.   

procurement 

rules  and 

Cohesion  policy  funding  helps  tackle 
Slovakia’s  growth  and  competitiveness 
challenges  and  reduce  the  country’s 
territorial and social disparities. Under the 
2014-2020  cohesion  policy  programming 
period,  support  focused  on  the  areas  of 
network  infrastructure,  quality  employment, 
the 
environment 
protection,  R&I  and  the  competitiveness  of 
the  2021-2027  programming 
SMEs.  For 
period,  support  aims  to  accelerate  the  green 
transition  and  reduce  energy  dependence  on 
transition, 
Russia,  boosting 
economic competitiveness, the R&I ecosystem, 
improving  social  and  educational  outcomes, 
and developing a smart transport network.  

the  digital 

low-carbon 

economy, 

Reforming the education system to 
improve social resilience and 
competitiveness 

to  a  place 

introduced  a 

As part of the RRP, Slovakia implemented 
reforms  and  investments  to  promote  the 
quality and inclusiveness of its education 
legal 
system.  The  country 
entitlement 
in  pre-primary 
education for all children aged 4 (as of 2024) 
and  3 
is 
in  new 
complemented  by 
kindergartens (from the age of 3), both under 
the  RRP  and  cohesion  policy  funds,  with  the 
latter  focusing  on  less  developed  regions. 
Financial support has been provided from both 
RRP  and  cohesion  policy  funds  to  early 
childhood  and  education  care  programmes, 

(as  of  2025).  The 

investments 

reform 

6 

 
 
role 

including some targeted at marginalised Roma 
communities.  Financing  from  cohesion  policy 
funds is also available for schools to cover the 
costs  of  school  support  teams.  These  play  an 
reform  of 
important 
counselling  and  prevention  centres.  This 
ensures  that  support  is  provided  to  all  pupils 
experiencing  obstacles  in  their  learning.  The 
RRP  reform  also  broadened  the  legal  concept 
of  special  educational  needs  to  include  all 
pupils. 

the  RRP 

in 

In  2023,  a  pilot  phase  was  launched  to 
implement  the  new  curricula  in  primary 
and  lower  secondary  education  in  39 
schools across Slovakia. The reform creates 
new  learning  content  organised  into  three 
multiannual  cycles  for  primary  and  lower 
secondary  school  programmes.  The  new 
curriculum  aims  to  provide  pupils  with  key 
competencies  for  the  future.  The  reform 
includes  the  establishment  of  a  network  for 
regional  support  centres,  which  is  currently 
financed under the RRP, and will be supported 
by  cohesion  policy  funds  after  the  end  of  the 
RRF.  

Boosting competitiveness through 
a stronger innovation ecosystem  

As part of the RRP, Slovakia introduced a 
number  of  reforms  to  improve  higher 
education  and  research  outcomes.  The 
introduction  of  a  system  of  performance 
contracts  for  higher  education  institutions  in 
Slovakia  aims  to  support  the  diversification 
and  profiling  of  higher  education  institutions 
as  well  as  the  share  of  profession-based 
bachelor  programmes.  Cohesion  policy  funds 
complement  the  creation  or  innovation  of 
university  study  programmes,  including  the 
profession-based  ones.  Additionally,  following 
the  introduction  of  a  system  of  periodic 
scientific  evaluations,  all  public  higher 
education  institutions  are  taking  part  in  the 
periodic  evaluation  of  scientific  research. 
Cohesion  policy  funds  will  also  continue  the 
successful  RRP  subsidy  grant  scheme  for 
excellent students.  

innovation 
following 

Slovakia  has  made  some  progress  in 
(R&I)  and 
research  and 
digitalisation, 
ambitious 
reforms  and  investments  driven  by  the 
RRP.  It  approved  the  National  Strategy  for 
Research, Development and Innovation as well 
as its accompanying action plan. This provides 
a  comprehensive  framework  covering  all 
aspects  of  a  coordinated  national  R&I  policy, 
including any related public funding, by 2030. 
As  part  of  the  RRP  requirements, the  national 
strategy  takes  into  account,  among  other 
things, the lessons learnt from cohesion policy. 
Slovakia also adopted its action plan for digital 
transformation and implemented a number of 
investments  to  support  the  transition  to  a 
digital economy.  

In  addition,  Slovakia  launched  22  grant 
calls  under  the  RRP  to  boost  R&I.  These 
calls aim to support the participation of Slovak 
researchers and companies in Horizon Europe, 
the funding programme promoting cooperation 
between the private sector, academia and R&I 
organisations. 
top 
researchers  as  well  as  projects  that  address 
the  challenges  of  the  green  and  digital 
transition. Some of the calls were preceded by 
similar  schemes  previously  available  under 
cohesion  policy  funding  (such  as  innovation 
vouchers),  and  some  calls  will  be  followed  by 
further cohesion policy funding. 

support 

They 

also 

Unlocking investments for the 
green transition 

Slovakia has rolled out several measures 
under  the  RRP  that  help  advance  the 
green transition, but challenges remain in 
implementing  them.  The  plan  reached  a 
share of 47.7% in climate-related investments 
following  the  inclusion  of  the  REPowerEU 
chapter  in  2023.  This  is  crucial  for  moving 
away  from  a  carbon-intensive  and  highly 
industrialised  economy  towards  one  that  is 
greener  and  more  sustainable.  The  RRP 
includes  support 
renewables,  energy 
in  housing,  sustainable  transport, 
savings 
decarbonisation  of 
industry  as  well  as 
measures geared towards climate adaptation. 

to 

7 

 
industrial 
competitiveness. 

carbon-intensive 
its 

reduction of at least 1.2 Mt of CO2 equivalent. 
This  aids  the  green  transition  of  Slovakia’s 
sector, 
large, 
improving 
The 
Modernisation Fund provides extensive support 
large  district 
to  decarbonising  Slovakia’s 
heating 
financial 
the 
sector.  Moreover, 
schemes  for  the  renovation  of  housing  have 
been  merged  into  a  single  funded  vehicle  as 
part of the RRP. Financial support is granted on 
condition that energy performance certificates 
are  delivered,  proving  that  at  least  30%  of 
primary  energy  is  saved  at  the  end  of  the 
renovation 
housing 
renovations  benefit  from  RRP  support,  they 
could  also  benefit  from  cohesion  policy 
support for measures related to RES. 

project.  While 

the 

In  2023,  Slovakia  adopted  sweeping 
reforms  to  protect  natural  areas  and 
water  management  under  the  RRP.  The 
reforms lay the legal groundwork for speeding 
up  zoning  in  national  parks  and  changing  the 
functioning  of  protected  areas,  as  well  as 
revitalising 
are 
watercourses. 
complemented by investments under both the 
RRP  and  cohesion  policy  funds.  However,  the 
government  has  indicated  that  it  intends  to 
revise 
laws  and  strategic 
documents,  which  risks  running  afoul  of  the 
already  adopted  RRP 
reform.  The  RRP 
investment  linked  to  this  is  facing  major 
delays,  and 
implementation  needs  to  be 
stepped up.   

the  amended 

They 

Under  the  RRP,  Slovakia  has  included 
reforms in  the  area of renewable energy 
sources  (RES).  RRP  reforms  have  already 
helped  modernise  the  electricity  market  and 
improve the framework conditions for the roll-
out  of  renewable  investments.  In  2021,  the 
technical capacity to connect additional RES to 
the  electricity  grid  was  made  available  by 
overcoming  regulatory  obstacles.  Calls  for 
RRF-supported renewable investments are well 
advanced,  increasing  the  capacities  of  new 
renewable 
existing 
renewable  installations  and  improving  the 
flexibility  of  the  electricity  grid.  However,  the 
government’s  current  plans  still  fall  short  in 
terms  of  achieving  the  2030  energy  and 
climate targets. Cohesion policy funds support 
energy efficiency measures (e.g. in the building 
sector  or  by  companies)  and  measures  to 
support  the  deployment  of  RES  (e.g.  the 
support of energy communities).  

repowering 

sources, 

and 

boost 

While  the  RRP  and  cohesion  policy  funds 
contribute  to  the  deployment  of  RES, 
greater  ambition  would  unlock  their  full 
potential 
innovation, 
employment and overall productivity.  The 
RES share remains among the lowest in the EU 
(at  17.4%  of  gross  final  energy  consumption, 
compared  to  21.8%  for  the  EU) (4).  In  2022, 
the installed capacity of RES did not increase, 
in contrast with the nearly 10% increase at EU 
level.  Despite 
reforms  already 
implemented  under  the  RRP,  timely  execution 
of  additional  permitting,  and  administrative 
the 
and  grid  connection 
REPowerEU  chapter  are  essential  for  a  more 
substantial  roll-out  of  renewable  investments 
in  Slovakia.  Accelerated  deployment  of 
renewable  installation  capacity  with  improved 
access to the grid would also help strengthen 
the country’s energy autonomy. 

reforms  under 

important 

of 

decarbonisation 

The 
Slovakia’s 
industrialised  economy  and  the  deep 
renovation  of  single-family  houses  are 
also  supported  by  EU  funding.  The  RRP 
backs 
to  cut  net 
industry’s  efforts 
greenhouse  gas  emissions  via  a  EUR 357 
million  decarbonisation  scheme,  aiming  for  a 

the 

(4)  EU Energy in Figures (2023, p. 126). 

8 

 
 
Box 3: 

Combined action for more impactful EU funds 

To  boost  economic  growth  and  maximise  the  impact  of  EU  funding,  Slovakia’s  RRP  includes 
reforms that support investments under other EU instruments. These create important synergies 
and  complementarities  between  the  various  funds.  For  example,  Slovakia  is  combining  RRP 
reforms with investments funded from both the RRF and cohesion policy in school infrastructure 
(including  accessibility  of  schools),  equipment  (including  digital)  and  ‘support  teams’  for  pupils 
with  special  educational  needs.  The  RRP  reforms  aim,  for  instance,  to  improve  educational 
outcomes of students, especially those from disadvantaged backgrounds, including via improved 
access  to  pre-school  education,  modernisation  of  the  primary  education  curriculum  or  the 
prevention  and  elimination  of  segregation  of  Roma  children  in  education.  There  are  synergies 
with  several  projects  funded  by  the  European  Social  Fund  Plus,  notably  on  desegregation  in 
education.  Furthermore,  an  RRP  reform  to  end  coal-based  electricity  production  at  the  Nováky 
plant  is  closely  linked  with  a  project  funded  by  the  Just  Transition  Fund  to  reskill  miners  and 
workers in the Upper Nitra region. 

9 

 
 
FURTHER PRIORITIES AHEAD 

Slovakia  faces  additional  challenges 
related  to  elevated  house  prices,  the 
quality  and  effectiveness  of  law-making, 
the  business  environment,  digitalisation, 
education and climate adaptation. Tackling 
these  challenges  will  help  increase  Slovakia’s 
long-term  competitiveness  and  make 
its 
economy  resilient.  It  will  also  help  make 
further  progress  in  achieving  the  Sustainable 
Development Goals (SDGs). 

is 

It 
important  that  the  challenges 
identified are addressed both at national 
and  regional 
regional 
disparities and improve the administrative and 
absorption  capacity  in  a  balanced  way  across 
the country. 

reduce 

level 

to 

is 

reduce 

reviews  within 

the  budgetary 
spending 
ineffective 
framework  could  help 
spending.  Additionally,  measures  addressing 
the relatively high tax wedge for lower income 
earners  would  improve  participation  in  the 
labour  market,  in  a  context  where  labour 
taxation 
in  Slovakia 
less  progressive 
compared  to  the  EU  average.  At  the  same 
time,  measures  narrowing  the  tax,  social 
compulsory 
contributions 
payments  gap  between  employed  and  self-
employed  could  reduce  the  high  share  of 
undeclared  work  and  dependent 
self-
employment, which are detrimental to working 
conditions  and  government’s  tax  and  social 
security  revenues  (see  Annex  14).  These 
measures  would  also  contribute  to  promoting 
fiscal sustainability and fairness. 

non-tax 

and 

Improving the sustainability of 
public finances 

An  ambitious  and  credible  spending  path 
will  be 
important  to  ensure  fiscal 
sustainability.  Slovakia’s  public  finances  are 
facing serious challenges related to high levels 
of  public  deficit  and  increasing  government 
debt. The strong growth in public spending has 
been  outpacing  the  growth  in  public  revenues 
in  recent  years.  Moreover,  most  of  the 
spending  measures  increasing  social  benefits 
are  of  a  permanent  nature.  The  significant 
deterioration of public finances in Slovakia has 
already  been  reflected  in  the  country’s  risk 
premium,  as  yields  on  10-year  government 
bonds  have  become,  at  some  point,  the 
highest  in  the  eurozone.  Without  credible 
the  deficits  will 
consolidating  measures, 
deteriorate 
the 
accumulation  of  government  debt.  Measures 
to  reduce  the  deficit  and  stabilise  the  debt 
level  below  a  threshold  of  60%  of  GDP  could 
combine  investments  and  reforms  promoting 
sustainable  economic  growth.  Incorporating 

resulting 

further, 

in 

reform  under 

the 
(RRP)  has 

The state of Slovakia’s public finances is 
further  aggravated  by  an  ageing 
population. Demographic trends are expected 
to  significantly  increase  government  spending 
on  pensions.  While  the  recently  adopted 
recovery  and 
pension 
resilience  plan 
substantially 
improved the sustainability  of public finances, 
pension  costs  remain  a  significant  component 
(i.e. well above the EU average) of age-related 
spendings. 
recently  adopted 
measures  relate  to  a  permanent  increase  of 
the 
thirteenth  pension  payment  and  a 
in  contributions  to  the  second 
reduction 
(private)  pension  pillar  pose  additional 
challenges  to  the  sustainability  of  the  Slovak 
pension system, although some compensatory 
measures  have  been  put  in  place  tightening 
the access to the early retirement scheme via 
a  stricter  pension  reduction  rate  (‘malus’)  and 
the gradual linking of the required contributory 
period to life expectancy.   

In  addition, 

To  address  fiscal  challenges,  efforts 
the 
could  be  made 
independent fiscal institution, among other 
things by stepping up policy dialogue with the 

to  strengthen 

10 

 
 
interactions  with 

the 
government  and 
parliament.  The  Slovak  Council  for  Budget 
Responsibility  has  a  broad  mandate  and  has 
recently  improved  access  to  information  but 
does not yet carry out ex post assessments of 
forecasts.  

Improving the integrity and 
independence of the justice 
system and anti-corruption 
framework  

about 

serious 

investments, 

in  Slovakia, 

Recent legislative developments have led 
to 
the 
concerns 
independence  and  integrity  of  the  law 
enforcement  system 
in 
particular the criminal justice system and 
anti-corruption framework. Beyond the risk 
of  affecting  the  implementation  of  the  RRP 
and  cohesion  policy 
these 
developments  can  become  a  serious  obstacle 
for  Slovakia’s  competitiveness  and  economy 
as  they  threaten  to  hamper  its  business  and 
regulatory  environment.  The  combination  of 
the  reform  of  criminal  law  (currently  under 
scrutiny  of  the  Constitutional  Court),  the 
dismantling of the Special Prosecutor’s Office, 
the 
the 
whistleblower  protection 
the 
competence  act,  and  an  amendment  to  the 
public  procurement  framework  raise  serious 
concerns  about  the  effectiveness  of  the  fight 
against  corruption,  including  the  deterrence 
and effective investigation and prosecution of 
high-level  corruption  and  fraud.  The  situation 
is  compounded,  among  other  things,  by  the 
dismissal  of  several  members  of  the  Judicial 
Council before the end of their term and a lack 
of  safeguards  to  ensure  its  independence,  as 
well  as  the  envisaged  reorganisation  of  the 
police  force  specialised  in  tackling  corruption 
(NAKA). 

amendments 

framework, 

expected 

to 

system 

Despite  a  recent  reform  of  the  judicial 
map under the RRP, the efficiency of the 
justice 
challenges, 
especially in administrative cases. Overall, 
the  justice  system  has  a  good  level  of 
digitalisation,  especially  for  civil,  commercial 
and  administrative  cases,  but  challenges 

faces 

remain,  especially  in  lengthy  administrative 
cases.  The  country  has  one  of  the  highest 
incidences of delayed decisions in the EU.  

Improving the performance of 
public administration, the business 
environment and boosting 
digitalisation and innovation 

regional  and 

competitiveness 

Improving  the  performance  of  Slovakia’s 
public  administration  and 
removing 
investment  bottlenecks  is  essential  for 
and 
strengthening 
enabling  the  diversification  of  Slovakia’s 
economy.  The  highly  fragmented  governance 
system and inefficient coordination across the 
various  levels  of  government make it  difficult 
to implement policies and investment projects 
(see Annex 13) and hamper Slovakia’s capacity 
to  facilitate  the  green  and  digital  transition. 
Besides  addressing  territorial  fragmentation 
across 
local  governments, 
Slovakia  also  needs  to  improve  the  provision 
of  quality  public  services  at  local  level  and 
strengthen  the  financial  independence  and 
management  capacity  of  local  and  regional 
governments.  Despite  recent  reforms  in  the 
assessment, selection and budgeting of public 
investment,  the  stages  of  monitoring  and  ex 
post  assessment  of  projects  remain  weak. 
Furthermore, administrative capacity continues 
to be a challenge at all levels. Evidence-based 
policy  also  need  to  be  improved,  including  by 
limiting 
the  continued  use  of  fast-track 
legislative  procedures,  especially  for  major 
in  an  unpredictable 
reforms.  This  results 
regulatory  environment  and  low  quality  of 
legislation.  

public 

persistent 

administrative 

burden, 
in 

and 
The 
together  with 
regulatory 
weaknesses 
procurement 
procedures,  severely  hamper  Slovakia’s 
competitiveness.  While  the  RRP  contains 
several measures to reduce the regulatory and 
administrative  burden  for  businesses,  the 
instability  and  ambiguity  of  regulations  still 
constitutes the second most prominent barrier 

11 

 
which 

reduce 

barriers, 

in  Slovakia (5). 

In 
to  running  a  business 
particular,  professional  services  face  high 
regulatory 
hampers 
competition on quality and prices. Additionally, 
avoiding  delays  in  the  implementation  of  the 
Once-Only  Technical  System  of  the  Single 
Digital  Gateway  could  help 
the 
administrative  burden  for  businesses  that 
want to navigate the single market. For public 
procurement  procedures, which  the  RRP  seeks 
to  digitalise  and  simplify,  challenges  likewise 
persist. Specifically, there is a lack of adequate 
competition  in  public  procurement,  as  the 
percentage  of  public  contracts  awarded  in 
procedures with one single bidder amounted to 
33%  in  2023.  As  a  result,  public  procurement 
is  not  sufficiently  and  strategically  used  to 
advance  on  important  policy  objectives  (such 
as  environmental,  social  and 
innovation 
objectives), stifling progress towards the green 
and digital transition. Ensuring transparency in 
public  procurement  will  be  key  to  promoting 
good  governance,  boosting  public  trust  and 
improving  the  effectiveness  and  efficiency  of 
government spending. 

to 

Reducing the share of late payments and 
finance  would 
improving  access 
benefit  the  business  environment.  The 
share  of  small  and  medium-sized  enterprises 
(SMEs) experiencing late payments in the past 
6  months  is  56%,  against  an  EU  average  of 
49% (see Annex 12). Late payments, which are 
particularly  severe  in  the  public  health  sector, 
hamper  the  competitiveness  and  resilience  of 
SMEs.  At  the  same  time,  improving  access  to 
finance  in  terms  of  both  loans  and  equity  for 
entrepreneurs,  especially  SMEs,  remains  a 
challenge.  In  2022,  Slovakia’s  performance  in 
the  equity  index  reached  the  lowest  level  in 
the EU (see Annex 12).  

including 

processes, 

E-government solutions and digitalisation 
tax 
of 
administration, can be further developed. 
Slovakia  ranks  below  the  EU  average  for  the 
maturity  of  open  data  and  digital  public 
services,  despite 
reforms  and 
investments  under  the  RRP  to  improve  the 

several 

of 

(5)  Opinions of SMEs on the quality of the business 

environment in Slovakia, Slovak Business Agency, 2023.  

12 

in 

regulations 

e-government 

e-governance. 
performance 
country’s 
Implementing  measures  proposed 
the 
in 
Action  Plan  for  Digital  Transformation  will  be 
important. Local governments struggle to fully 
to 
implement 
improve  the  quality  of  service  provision, 
limited 
especially  as  many  people  have 
internet 
none  at  all. 
Additionally, improvements in the digitalisation 
of  tax  administration,  especially  in  electronic 
invoicing and pre-filled tax returns, could help 
reduce  the  value  added  tax  compliance  gap, 
which  remains  above  the  EU  average  (see 
Annex 19). 

connections 

or 

is  of  crucial 

Expanding the development and diffusion 
of  innovative  technologies  and  solutions 
across  the  economy,  in  particular  to 
SMEs, 
importance  for 
diversifying  the  economy  and  improving 
the competitiveness of Slovak businesses. 
Many SMEs have trouble accessing technology 
to improve their operating processes. Although 
some  steps  have  been  taken  to  improve  the 
situation,  there  is  scope  for  further  efforts  to 
equip  the  workforce  and  the  workplace  with 
the  skills  and  tools  to  use  new  solutions.  On 
top  of  RRP  investment  to  support  business 
innovation,  additional  focus  is  needed  on 
promoting 
the 
implementation 
learning 
programmes  in  digital  skills.  The  very  low 
performance  in  basic  digital  skills  (see  Annex 
15) also impacts the rate at which businesses 
can modernise their production processes and 
service provision.  

lifelong 

literacy 

digital 

and 

of 

to 

important  measures 

Slovakia’s 
innovation 
research  and 
performance ranks below the EU average 
in several indicators. The country is deemed 
an  ‘emerging  innovator’,  performing  at  65.6% 
of  the  EU  average  (see  Annex  11).  The  RRP 
improve 
contains 
Slovakia’s  performance  in  this  area, but there 
is  scope  for  further  efforts.  In  particular, 
implementation  of  the  ambitious  National 
Innovation 
Research  Development 
Strategy  2030 
for  a  more 
is  crucial 
coordinated  approach  to  R&I  policy  and 
funding in Slovakia. The country also needs to 
strengthen  cooperation  between  the  private 
sector  and  public  research  institutions  and 
boost  private  R&I  investment,  including  via 

and 

 
 
more  innovative  schemes  such  as  financial 
instruments,  and  directed  towards  companies 
in  all  stages  of  the  innovation  cycle.  Further 
incentives  are  also 
(fiscal  and  other) 
cross-border  and 
warranted 
international  partnerships,  attracting  foreign 
talent and specialised firms. 

to  support 

Promoting better and more equal 
access to education, social 
inclusion and efficient healthcare  

of 

level 

proficiency 

background 

Slovakia  would  benefit  from  increased 
efforts  in  early  childhood  education  and 
care  (ECEC)  and  skills  to  improve  the 
conditions for economic growth. Relatively 
high shares of young students in Slovakia lack 
a  minimum 
in 
mathematics, reading and science while pupils’ 
socio-economic 
strongly 
determines  their  basic  skills  attainment.  This 
leaves  Slovakia  among  the  worst  performers 
on  the  OECD’s  Programme  for  International 
Student  Assessment  (PISA)  2022  survey  (see 
Annex  15).  Improving  the  teaching  of  basic 
skills  in  high-quality  education  and  training 
programmes  for  teaching  professionals,  and 
addressing  staff  shortages,  will  be  important 
to  increase  the  share  of  children  with  basic 
skills. Moreover, beyond the RRP and cohesion 
policy  efforts  focused  on children  from  age  3 
to 6 in ECEC, increasing the enrolment rate of 
children  under  the  age  of  3  will  be  essential. 
Only  1%  of  children  under  the  age  of  3 
participated  in  formal  childcare  in  2023  (see 
Annex 14), which is the lowest enrolment rate 
in  the  EU  (average  35.9%).  Increasing  the 
enrolment in ECEC not only boosts the number 
of  parents,  in  particular  women,  working  or 
looking  for  a  job,  but  also  better  prepares 
children  for  learning  skills  later  in  life  and 
reduces  early  school  leaving.  Increasing  the 
capacity  of  affordable  and  high-quality 
for  children  and  strengthening 
nurseries 
incentives for parents to use ECEC, such as the 
financial  allowances  and  parental  leave  days, 
are key to increasing enrolment in ECEC.  

and 

and 

education 

automation 

essential  for  making  Slovakia’s  economy 
more  competitive.  Along  with  improving 
general 
labour  market 
outcomes,  the  upskilling  and  reskilling  of  the 
population  needs to  accelerate  in  order  to  re-
establish labour productivity growth at a time 
where 
low-carbon 
technologies  are  taking  up  an  ever-larger 
share  in  the  production  mix  (see  Annex  12). 
There is scope for more effective and flexible 
active  labour  market  policies  to  engage  the 
entire  population, 
including  young  people, 
women  and  marginalised  Roma  communities. 
For example, the use of part-time employment 
currently  stands  at  only  2,9% (6).  Targeted 
measures are therefore important for reducing 
the  long-term  unemployment  rate,  which  is 
one of the highest in the EU (see Annex 14).  

the  RRP, 

taken  under 

for  marginalised 

Social 
inclusion  remains  a  challenge, 
Roma 
especially 
communities,  and  holds  back  education 
and labour market integration. Beyond the 
the 
measures 
segregation  of  Roma  in  education  remains  a 
key  challenge,  linked  in  particular  to  the 
disproportionate placement of Roma in special 
schools and dedicated classes. Support to local 
and  regional  governments  can  help  boost  the 
capacity  of  relevant  policymakers  to  increase 
their engagement in addressing segregation in 
all levels of education. As outlined in Annexes 
14  and  17,  regional  disparities  continue  to 
play  a  prominent  role  in  Slovakia’s  social  and 
economic  challenges  and  persist  especially 
between the eastern and western parts of the 
country. This is expressed in a broad range of 
challenges, 
the  availability  of 
employment  opportunities,  basic  services  and 
adequate  housing,  as  well  as  differences  in 
educational  outcomes  and  the  prevalence  of 
poverty,  which  are  all  worse 
in  Eastern 
Slovakia.  Moreover,  the  marginalised  Roma 
population  is  disproportionately  affected  by 
these disparities. 

including 

There 
efficiency 
improving 

is  scope 

for  enhancing 

healthcare 

of 
accessibility 

the 
spending, 
of  medical 

Increasing  the  share  of  the  population 
participating  in  education  and  training  is 

(6)  OECD Economic Surveys: Slovak Republic 2024 (page 

39). 

13 

 
 
services  and  addressing  staff  shortages. 
Efforts  to  improve  outpatient  care,  long-term 
care, disease prevention and the availability of 
medical  devices  are  lagging.  Life  expectancy 
remains  among  the  lowest  in  the  EU  (see 
Annex  16),  while  healthcare  spending  per 
capita  significantly  trails  the  EU  average.  The 
limited  efforts  in  disease  prevention  put  the 
system’s  readiness  for  future  health  crises  at 
risk.  Despite  salary  increases,  staff  shortages 
continue  to  negatively  affect  the  accessibility 
of  the  healthcare  system,  particularly  for 
mental health services.  

Monitoring house price 
developments and reforming 
property taxation 

While  house  prices  rapidly 
increased 
between 2012 and 2022, they have since 
declined  on  the  back  of  rising  interest 
rates.  In  2022  alone,  house  prices  soared by 
more than 13% compared to the previous year 
on  the  back  of  strong  growth  in  nominal 
wages and economic growth together with low 
interest  rates,  which  contributed  to  increasing 
housing demand.  As a result of rising interest 
rates,  the  growth  in  house  prices  has  slowed 
since  mid-2023  across  all  regions  and  in  all 
segments  of  the  housing  market.  While  the 
decrease 
improved 
in  house  prices  has 
housing  affordability,  the  Slovak  housing 
market remains overvalued. The vulnerabilities 
in  the  housing  market,  as  already  mentioned 
above,  are  described  in  the  in-depth  review 
published in March 2024. 

The  insufficient  supply  of  housing,  which 
remained  weak  in 2023,  contributed to a 
rapid increase in house prices. The sluggish 
supply  is  the  result  of  long  and  inefficient 
procedures 
in  public  administration.  On 
average, it takes around 300 days for building 
permits  to  be  issued  in  Slovakia.  This  places 
the  country  among  the  EU  countries  with  the 
lengthiest  approval  processes  for  construction 
projects.  Compared 
residential 
investment as a share of GDP and the number 
of building permits declined by 14% and 19% 
respectively  in  2023.  However,  the  supply  is 

to  2022, 

expected to rebound in the near future in view 
of the housing currently under construction.  

incentivising  rentals. 

Slovakia’s  property  taxation  system  is 
not  conducive  to  mitigating  housing 
demand  and 
In 
Slovakia,  public 
from  property 
revenues 
taxation  are  relatively  low  compared  to  other 
EU  countries (0.4% of GDP vs 2.1% in the EU 
in  2022).  Moreover,  Slovakia  uses  an  area-
based property taxation system instead of one 
based  on  the  market  value  of  the  property. 
This  is  common  in  some  central  and  eastern 
European  countries  (e.g.  Czechia,  Poland),  but 
exceptional  among  other  OECD  countries. 
Property  taxation  systems  in  other  countries 
often  allow  for  characteristics  such  as  type, 
quality  or  age  of  the  home  to  be  factored  in. 
This 
fairness,  generates  more 
revenue  for  the  state  and  helps  dampen  the 
growth  in  property  prices.  Reducing  the  time 
needed  to  obtain  construction  permits  and 
reducing  the  administrative  burden  through 
the  Construction  Act  and  Act  on  Land-Use 
Planning could also help dampen the growth in 
property prices. 

increases 

Household  debt,  which  had  been  growing 
steadily  until  the  end  of  2022,  has  now 
moderated.  Household  debt  had  been  rising 
on  the  back  of 
interest  rates  and 
low 
favourable  macroeconomic  developments. 
However,  monetary  policy  tightening  to  curb 
inflation since mid-2022 has resulted in higher 
mortgage  rates  in  Slovakia.  These  increased 
from  0.9%  in  Q4-2021  to  4.5%  in  Q3-2023. 
This  has  substantially  weakened  demand  for 
mortgages,  affecting  the  housing  market  as 
well. Nevertheless, the increase in repayments 
for  households  appears  manageable,  as  only 
1% of mortgage holders are expected to face 
large increases in repayments.  

Enhancing competitiveness 
through investments in energy 
autonomy, decarbonisation and 
resource efficiency 

There  is  ample  scope  for  intensifying 
Slovakia’s innovation efforts in the fields 

14 

 
of  clean  technology,  climate  neutrality 
and security of the energy supply through 
a  comprehensive  approach.  The  country’s 
large industrial sector presents an opportunity 
to exploit the potential of the green transition 
both for job creation and innovation. However, 
Slovakia remains among the worst-performing 
EU  countries 
the  overall  Competitive 
in 
in 
Index.  Public 
Sustainability 
energy  research  and  innovation  stood  at  only 
0.08%  of  GDP  in  2021.  As  a  result,  Slovakia 
continues  to  rely  heavily  on  imports  of  clean 
energy technologies.  

investments 

Greater  energy  autonomy  would  improve 
the competitiveness and resilience of the 
Slovak  economy.  While  Slovakia  has  made 
progress  in  reducing  its  reliance  on  Russian 
gas since the outset of  the  war in Ukraine (7), 
it still represented 69% of its total gas supply 
in  2023  (see  Annex  7).  With  natural  gas 
accounting  for  a  quarter  of  Slovakia’s  energy 
mix,  forward-looking  measures  are  needed  to 
move  away  from  natural  gas  in  the  next 
decade,  with  a  particular  focus  on  district 
heating  and  industrial  sectors.  Slovakia  has 
boosted  domestic  electricity  production,  with 
over  60%  now  sourced  from  nuclear  power. 
This figure is set to rise once the Mochovce-4 
plant  connects  to  the  grid  in  2025,  but  the 
country  still 
in 
diversifying  its  nuclear  fuel  supply,  which  is 
still entirely imported from Russia.  

faces  major  challenges 

Targeted  action  and  public  investment 
would  help  drive  the  decarbonisation  of 
heating  sources  that  are  reliant  on 
natural  gas.  There  are  approximately 
800 000  individual  gas  boilers  installed  in 
(one  gas  boiler  for  every  nine 
Slovakia 
inhabitants).  35%  of 
is 
connected  to  district  heating  systems,  which 
rely  mostly  on  coal  and  natural  gas.  In 
combination with subsidised natural gas prices 
for  households, 
to 
incentives 
decarbonised heating sources are low. Also the 
uptake of energy communities remains limited.  

the  population 

to  switch 

incentives  adopted 

Containing  the  ongoing  rise  in  transport-
related  greenhouse  gas  and  pollutant 
emissions  warrants  further  action.  The 
share  of  transport  taxation  as  well  as  the 
resource  and  pollution  charges  in  total  tax 
revenues are very low (see Annex 19). Despite 
taxation 
in  2023,  the 
current  tax  regime  does  not  sufficiently 
encourage  a  switch  to  sustainable  road 
transport.  Slovakia's  Electromobility  Action 
Plan  and  Hydrogen  Action  Plan,  adopted  in 
2023, are steps in the right direction but need 
to  be  coupled  with  rapid  and  effective 
implementation  of  the  measures  proposed. 
These 
favourable 
legislative  conditions,  funding  schemes  for 
zero-emission vehicles and infrastructure, and 
technical  measures  to  ease  the  construction 
and operation of such infrastructure. Moreover, 
RRP 
the 
investments in charging stations and hydrogen 
refuelling needs to be stepped up. 

implementation 

incentives, 

ongoing 

include 

tax 

of 

land  and 
Slovakia’s  management  of 
ageing  forests  appears  insufficient.  Net 
carbon  removals  in  the  land  use  sector  are 
declining, requiring additional carbon removals 
of  -504  kt  CO2eq (8)  to  meet  Slovakia’s  2030 
land use, land use change and forestry target. 
This  trend may  also  cut  bioenergy  production, 
system (9). 
impacting 
Increasing  the  capacity  of  carbon  removals 
and  the  resilience  of  Slovak  forests  requires 
better  protection  of  biodiversity  (in  particular 
through  protected  areas),  investing  in  nature-
based solutions that support forests and water 
retention capacities, planting multispecies and 
mutigenerational  forests,  and  putting  in  place 
sustainable landscape management.  

Slovakia’s 

energy 

Further  policy  action  could  boost  the 
transition  towards  a  circular  economy. 
Even  though  the  circular  material  use  rate 
increased between 2017 and 2022 (see Annex 
9),  Slovakia  is  still  not  on  track  to  achieve  its 
2025  municipal  waste  and  packaging  waste 

(7)  Slovakia reduced its gas demand between August 2022 
and November 2023 by 23% compared to the average 
over  the  past  5  years.  December  2023  data  for 
Slovakia is missing. 

(8)  Net  carbon  removals on  top  of the  average for 2016-
18.  This  value  is  indicative  and  will  be  updated  in 
2025 in line with Regulation (EU) 2023/839. 

(9)  Biomass  represents  78%  of  Slovakia’s  renewable 
energy mix. State of the Energy Union Report 2023. 

15 

 
 
 
Box 4: 

The mid-term review of cohesion policy funds for Slovakia 

The  mid-term  review  of  cohesion  policy  funds  is  an  opportunity  to  assess  cohesion  policy 
programmes and 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 the EU funding included in each programme.  

Slovakia  has  made  progress  in  the  implementation  of  its  cohesion  policy  programme  and  the 
European  Pillar  of  Social  Rights,  but  challenges  remain  as  outlined  in  this  report,  including 
Annexes  14  and  17.  In  particular,  important  regional  disparities  in  economic  and  social 
development persist between the capital region and the other regions. Against this background, it 
remains important to continue to implement the planned priorities, with particular attention to: (i) 
strengthening  the  administrative  capacity  of  local,  regional  and  national  authorities,  and 
improving  partnership  and  ownership,  including  by  stronger  involvement  of  civil  society 
organisations;  (ii)  strengthening  the  social  and  economic  inclusion  of  marginalised  Roma 
communities by improving their living conditions, ensuring access to high-quality non-segregated 
education  and  training,  and  supporting  their  integration  into  the  labour  market,  (iii)  improving 
drinking  water  and  waste  water  infrastructure,  strengthening  the  circular  economy  and  waste 
management; (iv) boosting energy efficiency in public and residential buildings, development of 
renewable energy sources and decarbonisation; (v) strengthening active labour market policies to 
combat  long-term  unemployment,  and  expanding  reskilling  and  adult  learning  schemes;  (vi) 
providing  quality and affordable early childhood education and care for children under 3 years 
and supporting greater gender equality at work and in society. 

The potential to increase funding for the sustainable use of natural resources to make up for the 
backlog  of  investments  from  the  previous  programming  period  merits  specific  consideration  in 
preparation for the mid-term review. Slovakia could benefit from the opportunities provided by 
the  Strategic  Technologies  for  Europe  Platform  (STEP) (11)  initiative  in  the  areas  of  digital 
technologies  and  deep  tech  innovation,  clean  and  resource-efficient  technologies,  and 
biotechnologies to support the transformation of industry. 

targets  and  is  at  risk  of  missing  several 
material-specific  targets.  On  top  of  that,  the 
country  is  also  far  from  reaching  the  2035 
target (10). 
landfilling  of  municipal  waste 
improved 
from 
Slovakia  would  benefit 
resource  waste  management 
curb 
to 
landfilling  and  increase  the  use  of  circular 
materials, 
industry  and 
construction.  The  transition  of  Slovak  industry 
towards  circularity  is  only  at  an  initial  stage. 
Slovakia  would  benefit  from  promoting  the 
implementation  of  circular  business  models 
through 
and 
investments in R&D. 

incentivising  eco-innovation 

in  particular, 

in 

(10)  Report 

to 

from 

the  Commission 

the  European 
Parliament  the  Council,  the  European  Economic  and 
Social  Committee  and  the  Committee  of  the  Regions 
identifying  Member  States  at  risk  of  not  meeting  the 
2025  preparing  for  re-use  and  recycling  target  for 
municipal  waste, 
target  for 
packaging  waste  and  the  2035  municipal  waste 
landfilling reduction target.  

the  2025 

recycling 

(11)  Regulation (EU) 2024/795 

16 

 
 
 
 
KEY FINDINGS 

resilience  plan 

With its wide policy scope and substantial 
financial  envelope,  Slovakia’s  recovery 
and 
includes 
measures 
to  address  a  series  of 
structural  challenges  in  synergy  with 
other  EU  funds,  including  cohesion  policy 
funds, by: 

(RRP) 

•  Implementing  measures  to  advance 
the green transition, including reforms in 
the  areas  of  renewable  energy  sources, 
decarbonisation  of  the  Slovak  economy, 
protection  of  natural  areas  and  water 
management, 
to  sustainable 
transition 
mobility,  and  deep  renovation  of  single-
family homes;  

and 

innovation 

•  Introducing  reforms  in  the  domain  of 
research 
(R&I), 
coordinating  national  R&I  policy,  including 
related  public  funding  by  2030, 
any 
launching  grant  calls  to  boost  the  R&I 
ecosystems; 

•  Improving the right to and availability 
of  early  childhood  education  and  care 
(especially for 3- to 5-year-olds), increasing 
the  quality,  inclusiveness  and  digitalisation 
of  schools,  supporting  pupils  with  special 
educational needs and from disadvantaged 
backgrounds,  supporting  the  inclusion  of 
Roma  pupils  in  the  education  system,  and 
improving  the  quality  of  higher  education 
and research outcomes; 

•  Improving 

the 

resilience  of 

the 
healthcare  system  by  optimising  the 
hospital  network,  investing  in  long-term 
care  and  modernising  the  provision  of 
psychological care.  

implementation 

The 
Slovakia’s 
recovery  and  resilience  plan  is  facing 
increasing  challenges.  Renewed  efforts  are 
key for a successful implementation of all the 

of 

measures of Slovakia’s recovery and resilience 
plan by August 2026. 

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

•  Reforming  taxation  related  to  the 
labour market, transport and property, 
integrating 
the 
budgetary  process  to  reduce  inefficient 
spending,  and 
the  housing 
increasing 
supply  to  improve  the  housing  market  and 
dampen household debt; 

spending 

reviews 

in 

•  Strengthening 

the 

integrity  of 

effectiveness, 
the 
independence  and 
judicial 
system, 
including  through  adequate  safeguards  for 
the  investigation  and  prosecution  of  high-
level corruption cases;  

anti-corruption 

and 

•  Improving 

the 

persistent 

transparency 

performance 

the 
boosting 

and 
digitalisation  of  public  administration, 
regulatory 
addressing 
burden, 
and 
competition in public procurement, reducing 
the  share  of  late  payments,  expanding the 
development of technologies for the private 
sector, 
tax 
compliance  and  the  digitalisation  of  tax 
administration; 

strengthening 

and 

the 

•  Improving  basic  skills  teaching  and 
tackling  the  low  uptake  of  early  childhood 
education  and  care  for  children  under  the 
age  of  3,  including  for  disadvantaged 
groups,  increasing  participation  in  adult 
education  and  training,  stepping  up  the 
inclusion  of  marginalised  Roma 
social 
communities,  and  improving  and  better 
targeting active labour market policies; 

•  Implementing  reforms  to  step  up  the 
decarbonisation  of  district  heating 
sources  and  the  innovation  capacity  of 

17 

 
 
clean  technologies,  and  to  contain  the  rise 
in 
gas 
emissions;  

transport-related 

greenhouse 

•  Improving 

land  management 
to  boost 

introducing  measures 
transition to a circular economy. 

and 
the 

18 

 
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 Slovakian RRP 

21 

23 

23 

25 

28 

30 

33 

35 

35 

39 

45 

48 

48 

50 

52 

54 

60 

62 

62 

65 

67 

69 

72 

72 

74 

76 

77 

26 
28 

 
 
 
Support from EU instruments in Slovakia 
Resilience indices across dimensions for Slovakia 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 Slovakia 
Circularity indicators 

A3.2.  Measures in Slovakia'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 Slovakia 
A14.2.  Situation of Slovakia on 2030 employment, skills and poverty reduction targets 
A15.1.  EU-level targets and other contextual indicators under the European Education Area strategic framework 
A16.1.  Key health indicators 
A17.1.  Selected indicators at regional level in Slovakia 
A18.1.  Financial Soundness Indicators 
A19.1.  Taxation indicators 
A20.1.  Key economic and financial indicators 
A21.1.  Debt sustainability analysis – Slovakia 
A21.2.  Heat map of fiscal sustainability risks - Slovakia 

LIST OF GRAPHS 

Progress towards the SDGs in Slovakia 
Slovakia’s progress on the 2019-2023 CSRs (2024 European Semester) 
Total grants disbursed under the RRF 
Distribution of cohesion policy funding across policy objectives in Slovakia 
Distribution of RRF funding by pillar in Slovakia 
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 
Slovakia´s energy retail prices for households and industry & service 
Trends in electricity prices for non-household consumers (EU and foreign partners) 
Slovakia's installed renewable capacity (left) and electricity generation mix (right) 
Fair transition challenges in Slovakia 
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. 
A4.1. 
A4.2. 
A6.1. 
A6.2. 
A6.3. 
A7.1. 
A7.2. 
A7.3. 
A8.1. 
A8.2. 
A9.1. 
A9.2. 
A11.1.  Total R&D expenditure as % of GDP in 2022 
A12.1.  Labour productivity (GDP per hour worked) in PPS (% of EU-27) 
A12.2.  Bankruptcy declarations, 2018-2023, 5-year average 
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 
A17.1.  Gross domestic product (pps) per inhabitant in % of the EU-27 average 
A17.2.  People at-risk-of-poverty or social exclusion by NUTS2 regions 
A18.1.  Evolution of Credit Activity 
A19.1.  Tax revenues from different tax types, % of total revenue 
A19.2.  Tax wedge for single and second earners, % of total labour costs, 2023 

LIST OF MAPS 

A17.1.  Slovakia, Regional Competitiveness Index 2022 

22 

29 
32 
33 
38 
44 
47 
49 
51 
53 
59 
61 
62 
63 
66 
68 
70 
73 
74 
76 
79 
79 

23 
25 
29 
31 
31 
35 
37 
37 
39 
39 
41 
45 
46 
48 
49 
52 
54 
57 
60 
65 
67 
67 
69 
70 
72 
75 
75 

69 

 
 
 
CROSS-CUTTING INDICATORS 
ANNEX 1: SUSTAINABLE DEVELOPMENT GOALS 

S

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

Slovakia performs well on indicators related 
to  environmental  sustainability  (SDGs 2,  6, 
11, 15) but it needs to catch up with the EU 
average  on  SDGs 7,  9,  12  and  13.  It  performs 
well on sustainable transport, with public transport 
accounting  for  16.3%  of  total  transport,  well 

Graph A1.1: Progress towards the SDGs in Slovakia 

above  the  EU  average  of  13.7%.  Slovakia  has 
reduced  its  severe  housing  deprivation  rate  to 
3.2%, compared to the EU rate of 4.3%. Slovakia is 
however underperforming on indices pertaining to 
affordable  and  clean  energy 
(SDG 7).  While 
Slovakia’s  capacity  for  generating  energy  from 
renewable  source  has  increased,  from  11.5%  of 
gross final energy consumption in 2017 to 17.5% 
in 2022, this share is still below the EU average of 
23%.  Over  the  same  period,  energy  productivity 
improved  only  slightly,  from  EUR 4.6  per  kgoe  to 
EUR 5.4  per  kgoe,  compared  to  the  average  EU 
improvement  from  EUR 7.9  per  kgoe  to  EUR 9.3 
per  kgoe).  Slovakia’s  dependency  on  imported 
energy as part of its overall energy mix increased 
from 62.5% in 2017 to 69.6% in 2022, which was 
above 
the  EU  average  of  62.5%.  Slovakia 
performs  well  on  the  share  of  municipal  waste 
increased  the 
that 
percentage recycled from 29.8% in 2017 to 49.5% 
in 2022, above the EU average of 48.6%. 

is  recycled;  the  country 

Slovakia is making progress on its net greenhouse 

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 

 
 
 
 
 
 
 
completing 

inhabitants)  were  submitted 

cloud  systems  and  other  scientific  and  hi-tech 
breakthroughs.  Only  10  patent  applications  (per 
million 
in  2023 
compared to the EU average of 153. The share of 
population  aged  25-34 
tertiary 
education,  a  crucial  ingredient  for  raising  the 
proficiency,  competitiveness,  and  technological 
aptitude  of  the  Slovak  population,  has  been 
steadily  increasing,  reaching  39.8%  in  2023,  and 
has  almost  caught  up  with  the  EU  average  of 
43.1%.  Nevertheless,  the  proportion  of  adults 
participating  in  learning  is  still  below  the  EU 
average  and  the  gap  widened.  In  2023, 10.5%  of 
the  Slovak  adult  population  had  attended  an 
education  course 
the  previous  4 weeks, 
compared  to  the  EU  average  of  12.7%  (SDG 4). 
internet 
The  share  of  households  with  an 
connection  of  at  least  100-Mbps  increased  from 
41.2%  in  2017  to  71.3% in  2022  (just below the 
EU  average  of  73.4%).  Investment  in  digital 
infrastructure and educational  reforms outlined in 
the  RRP  should 
long-term 
further 
productivity. 

improve 

in 

Slovakia  is  improving  on  SDG  indicators 
related  to  macroeconomic  stability  (SDGs 8 
and 16). Real GDP per capita in Slovakia has been 
increasing, 
in  2023. 
reaching  EUR 16 490 
However, that figure was below the EU average of 
EUR 28 940  in  2023  and  the  gap  is  closing  at  a 
slower pace recently. The investment share of GDP 
slightly increased from 20.9% in 2018 to 22.0% in 
2023,  trailing  behind  the  EU  average  of  22.7%. 
The  employment  rate  has  been  rising  steadily, 
reaching  77.5%  of  the  population  aged  20-64  in 
2023,  and  outpacing  the  EU  average  of  75.3%. 
The  long-term  unemployment  rate  has  decreased 
(to 3.8% in 2023), above the EU median of 2.1%. 
Measures  presented  in  the  RRP  should  stimulate 
much  needed  investment  and  help  further  reduce 
long-term unemployment. 

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

gas  emissions,  which  have  decreased  from  6.9 
tonnes  per  capita  in  2017  to  5.5  in  2022, 
performing  better  than  the  2022  EU  average  of 
7.3 tonnes per capita. Investments and reforms in 
the  recovery  and  resilience  plan  (sections  on 
industry  decarbonisation,  energy 
renewables, 
efficiency,  waste  disposal  and  R&D)  will  boost 
Slovakia’s performance on environmental SDGs. 

Slovakia performs well on one SDG related to 
fairness  (SDG 1)  but  needs  to  catch  up  with 
the EU average on most of the others (SDGs 
4, 5, 7, 8) and is moving away from SDG 3 on 
good  health  and  well-being.  Slovakia  performs 
better  than  the  EU  average  on  poverty-related 
indicators  (SDG 1),  thanks  chiefly  to  the  low 
dispersion  of  wages  in  the  country.  Although  still 
lagging  behind  the  EU  average,  Slovakia 
is 
progressing  on  some  quality  education  indicators 
(SDG 4),  such  as  participation  in  early  childhood 
education (rising from 73.4% in 2016 to 77.4% in 
2021) but the rate was still below the EU average 
of  92.5%  in  2021.  The  high  percentage  of  low 
achieving  15-year-olds  in  mathematics  (33.2% 
compared to the EU average 29.5%) is a cause for 
concern.  On  SDG 5  (Gender  equality),  Slovakia  is 
improving  on  the  ratio  of  senior  management 
positions  held  by  women;  the  percentage  of 
female  board  members  increased  from  24.1%  in 
2018  to  25%  in  2023,  though  that  figure  is  still 
significantly  below  the  EU  average  of  33.8%.  On 
SDG 7,  Slovakia’s  ability  to  provide  affordable 
energy  has  declined;  the  percentage  of  people 
unable  to  adequately  heat  their  homes  rose  from 
4.3%  in  2017  to  7.1%  in  2022.  However,  this  is 
still  below  the  EU  average  of  9.3%  in  2022.  The 
recovery  and 
includes 
resilience  plan 
measures to improve pupils’ skills and to make the 
various  levels  of  the  education  system  more 
inclusive  and  equitable,  i.e.  by  creating  more 
places 
in  pre-school  establishments,  updating 
school curricula, tackling segregation of the Roma 
population,  providing  specialised 
training  for 
teachers and raising the professional qualifications 
required of teaching staff (Components 6, 7, 8). 

(RRP) 

Slovakia  is  improving  on  SDG  indicators 
related  to  productivity  (SDGs 4,  and  9), 
although  it  needs  to  catch  up  with  the  EU 
average.  At  0.98%  of  GDP 
in  2022,  R&D 
expenditure  is  significantly  below  the  EU  average 
of  2.24%  (SDG 9).  This  stifles  innovation  and 
prevents Slovakia from boosting its productivity by 
employing  more  technological  solutions  such  as 
artificial  intelligence,  digitalisation,  automation, 

24 

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

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

Source: European Commission. 

(SDGs) 

The Commission has assessed the 2019-2023 
country-specific  recommendations  (CSRs) (12) 
addressed  to  Slovakia  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 
Slovakia  to  date (13)  and  the  commitments  in  its 
recovery and resilience plan (RRP) (14). At this stage 
of RRP implementation, 44% of the CSRs focusing 
issues  from  2019-2023  have 
on  structural 
recorded  at  least  ‘some  progress’,  while  54% 
recorded  ‘limited  progress’  and  2%  ‘no  progress’  
(see  Graph  A2.1).  As  the  RRP  is  implemented 
in  addressing 
further,  considerable  progress 
structural CSRs is expected in the coming years. 

(12)  2023  CSRs:  EUR-Lex  -  32023H0901(25)  -  EN  -  EUR-Lex 

(europa.eu) 

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

(europa.eu) 

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

(europa.eu) 

      2020  CSRs:  EUR-Lex  -  32020H0826(25)  -  EN  -  EUR-Lex 

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

(13)  Including  policy  action  reported  in  the  national  reform 
programme  and  in  Recovery  and  Resilience  Facility  (RRF) 
reporting (twice a year reporting on progress in implementing 
milestones  and  targets  and  resulting  from  the  payment 
requests assessment). 

(14)  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 have not yet been adopted or 
implemented but considered credibly announced, in line with 
the CSR assessment methodology, warrant ‘limited progress’. 
can 
Once 
to 
‘some/substantial 
implementation’, 
progress 
depending on their relevance. 

these  measures 
or 

implemented, 

lead 

full 

25 

No progress2%Limited progress54%Some progress40%Substantial progress4%Full implementation0% 
 
 
 
 
 
 
      
 
 
 
Table A2.1:  Summary table on 2019-2023 CSRs 

(Continued on the next page) 

26 

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

Note: 
* See footnote (14)  
** RRP measures included in this table contribute to the implementation of CSRs. Nevertheless, additional measures outside the 
RRP may be necessary to fully implement CSRs and address their underlying challenges. Measures indicated as ‘being 
implemented’ are only those included in the RRF payment requests submitted and positively assessed by the European 
Commission. 
Source: European Commission. 

27 

2020 CSR 4Some progressEnsureeffectivesupervisionandenforcementoftheanti-moneylaunderingframework. Some ProgressRelevant RRP measures implemented in 2022 and planned as of 2023.SDG 8, 16Ensure a favourable business environment Some ProgressRelevant RRP measures planned as of 2023, 2024 and 2025.SDG 8, 9and quality public services through enhanced coordination and policy-making. Limited ProgressRelevant RRP measures planned as of 2022, 2023, 2024 and 2026.SDG 10, 11, 16Address the integrity concerns in the justice system.Limited ProgressRelevant RRP measures implemented in  2022 and planned as of  2023 and 2024.SDG 162021 CSR 1Not relevant anymoreIn2022,maintainasupportivefiscalstance,includingtheimpulseprovidedbytheRecoveryandResilienceFacility,andpreservenationallyfinancedinvestment. Not relevant anymoreNot applicableSDG 8, 16Wheneconomicconditionsallow,pursueafiscalpolicyaimedatachievingprudentmedium-termfiscalpositionsandensuringfiscalsustainabilityinthemedium term. Not relevant anymoreNot applicableSDG 8, 16Atthesametime,enhanceinvestmenttoboostgrowthpotential.Payparticularattentiontothecompositionofpublicfinances,onboththerevenueandexpendituresidesofthebudget,andtothequalityofbudgetarymeasuresinordertoensureasustainableandinclusiverecovery.Prioritisesustainableandgrowth-enhancinginvestment,inparticularinvestmentsupporting the green and digital transition. Not relevant anymoreNot applicableSDG 8, 16Giveprioritytofiscalstructuralreformsthatwillhelpprovidefinancingforpublicpolicyprioritiesandcontributetothelong-termsustainabilityofpublicfinances,including,whererelevant,bystrengtheningthecoverage,adequacyand sustainability of health and social protection systems for all.Not relevant anymoreNot applicableSDG 8, 162022 CSR 1Limited progressIn2023,ensurethatthegrowthofnationallyfinancedprimarycurrentexpenditureisinlinewithanoverallneutralpolicystance,takingintoaccountcontinuedtemporaryandtargetedsupporttohouseholdsandfirmsmostvulnerabletoenergypricehikesandtopeoplefleeingUkraine.Standreadyto adjust current spending to the evolving situation.No ProgressNot applicableSDG 8, 16Expandpublicinvestmentforthegreenanddigitaltransitions,andforenergysecuritytakingintoaccounttheREPowerEUinitiative,includingbymakinguse of the Recovery and Resilience Facility and other Union funds.Substantial ProgressRelevant RRP measures planned as of 2023SDG 8, 16Fortheperiodbeyond2023,pursueafiscalpolicyaimedatachievingprudent medium-term fiscal positions.Limited ProgressNot applicableSDG 8, 16Makethetaxmixmoreefficientandmoresupportivetoinclusiveandsustainablegrowth,includingbyleveragingthepotentialofenvironmentaland property taxation.Limited ProgressSDG 8, 10, 12Continuetostrengthentaxcompliance,includingbyfurtherdigitalisingtaxadministration.Limited ProgressSDG 8, 9, 162022 CSR 2Proceedwiththeimplementationofitsrecoveryandresilienceplan,inlinewiththemilestonesandtargetsincludedintheCouncilImplementingDecision of 13 July 2021.Submitthe2021-2027cohesionpolicyprogrammingdocumentswithaviewtofinalisingtheirnegotiationswiththeCommissionandsubsequentlystartingtheir implementation.2022 CSR 3Some progressReduce overall reliance on fossil fuels and diversify imports of fossil fuels.Some progressRelevant RRP measures planned as of 2023SDG 7, 9, 13Acceleratethedeploymentofrenewablesbyfurtherfacilitatinggridaccess,introducing measures to streamline permitting and administrative proceduresLimited ProgressRelevant RRP measures planned as of 2023SDG 7, 8, 9, 13and modernising the electricity network.Limited ProgressRelevant RRP measures planned as of 2023, 2024 and 2025SDG 7, 9, 13Reduce reliance on natural gas in heating and industry.Limited ProgressRelevant RRP measures planned as of 2023SDG 7, 9, 13Adjustrenovationpoliciestoaccelerateandincentivisedeeprenovationsofbuildings.Some ProgressRelevant RRP measures being implemented as of 2022SDG 72023 CSR 1Limited ProgressWinddowntheemergencyenergysupportmeasuresinforce,usingtherelatedsavingstoreducethegovernmentdeficit,assoonaspossiblein2023and2024.Shouldrenewedenergypriceincreasesnecessitateneworcontinuedsupportmeasures,ensurethatthesearetargetedatprotectingvulnerablehouseholdsandfirms,fiscallyaffordable,andpreserveincentivesfor energy savings.Some ProgressNot applicableSDG 8, 16Ensureprudentfiscalpolicy,inparticularbylimitingthenominalincreaseinnationally financed net primary expenditure in 2024 to not more than 5.7%.Some ProgressRelevant RRP measures planned for 2024. SDG 8, 16PreservenationallyfinancedpublicinvestmentandensuretheeffectiveabsorptionofRRFgrantsandotherEUfunds,inparticulartofosterthegreenand digital transitions.Limited ProgressNot applicableSDG 8, 16Fortheperiodbeyond2024,continuetopursueamedium-termfiscalstrategyofgradualandsustainableconsolidation,combinedwithinvestmentsandreformsconducivetohighersustainablegrowth,toachieveaprudentmedium-term fiscal position.Limited ProgressNot applicableSDG 8, 16Makethetaxmixmoreefficientandmoresupportiveofinclusiveandsustainablegrowth,includingbyleveragingthepotentialofenvironmentaland property taxation.Limited progressSDG 8, 10, 12Continuetostrengthentaxcompliance,includingbyfurtherdigitalisingthetaxadministration.Limited ProgressSDG 8, 9, 16Reducetherisksrelatedtohouseholddebtbysupportinghousingsupplyandthe expansion of the rental market.Limited ProgressSDG 82023 CSR 2Maintainthemomentuminthesteadyimplementationoftherecoveryandresilienceplanand,followingtherecentsubmissionoftheaddendum,includingtheREPowerEUchapter,rapidlystarttheimplementationoftherelatedmeasures.Proceedwiththespeedyimplementationofcohesionpolicyprogrammes,inclosecomplementarityandsynergywiththerecoveryand resilience plan.2023 CSR 3Limited progressReducetheeconomy’srelianceonfossilfuels,inparticularnaturalgasinindustry and heating, and diversify imports of fossil fuels.Some ProgressRelevant RRP measures being implemented as of 2022, 2023 and planned as of 2025, 2026. SDG 7, 9, 13Acceleratethedeploymentofrenewables,particularlyforwind,solar,geothermal and renewable gases, in line with relevant sustainability criteria.Limited ProgressRelevant RRP measures being implemented as of 2022 and planned as of 2024, 2026. SDG 7, 9, 13Simplifypermittingandadministrativeproceduresfordeployingrenewables,including by establishing ‘one-stop shops’ and ‘go-to’ areas.Limited ProgressRelevant RRP measures being implemented as of 2022 and planned as of 2024, 2025. SDG 7, 8, 9, 13, Modernisetheelectricitynetworkandmaketheproceduresforconnectingrenewables to the grid more efficient and less burdensome.Limited ProgressRelevant RRP measures being implemented as of 2022 and planned as of 2024, 2026. SDG 7, 8, 9, 13Accelerate and incentivise deep renovations of public and private buildings,Some ProgressRelevant RRP measures being implemented as of 2022, 2023 and planned as of 2026. SDG 7addressenergypovertythroughhousingrenovationsforlow-incomehouseholds,Limited ProgressRelevant RRP measure planned as of 2026. SDG 1, 2, 7, 10andstepuppolicyeffortsaimedattheprovisionandacquisitionofskillsandcompetences needed for the green transition.Limited ProgressRelevant RRP measures planned as of 2024 and 2026. SDG 4RRP 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.RRP implementation is monitored through the assessment of RRP payment requests and analysis of the bi-annual reporting on the achievement of the milestones and targets, to be reflected in the country reports. Progress with the cohesion policy is monitored in the context of the Cohesion Policy of the European Union. 
 
  
 
ANNEX 3: RECOVERY AND RESILIENCE PLAN – IMPLEMENTATION 

This Annex provides a snapshot of Slovakia’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  6.4 billion  in  grants  under  the  RRF  over 
the  2021-2026  period, representing  5.2% of 
Slovakia’s  GDP (15).  As  of  mid-May  2024,  EUR 
2.67  billion  in  grants  have  been  disbursed  to 
Slovakia under the RRF. 

Slovakia still has EUR 3.7 billion available in 
grants from the RRF. This will be disbursed upon 
assessment  of  future  fulfilment  of  the  remaining 
165  milestones  and  targets (16)  included  in  the 
Council  Implementing  Decision (17)  (CID),  ahead  of 
the 2026 deadline established for the RRF.  

Slovakia’s  progress  in  implementing  its  plan 
is  recorded  in  the  Recovery  and  Resilience 
Scoreboard (18).  The 
scoreboard  gives  an 
overview  of  the  progress  made  in  implementing 
the RRF as a whole. Graph A3.1 shows the current 
state of play as reflected in the scoreboard. 

Slovakia’s RRP includes a REPowerEU chapter 
to phase out its dependency on Russian fossil 
fuels,  diversify 
its  energy  supplies  and 
produce  more  clean  energy  in  the  coming 
years.  To  kick-start  the  REPowerEU  chapter’s 
implementation,  EUR  80.5  million  were  disbursed 
as  pre-financing  on  13  December  2023  This 

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

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

(16)  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. 

(17)  https://eur-lex.europa.eu/legal-

content/EN/TXT/PDF/?uri=CONSIL:ST_10156_2021_ADD_1 

launch 

helped 
the 
modernisation  and  digitalisation  of  the  electricity 
networks.  

relevant 

reforms 

like 

The  plan  has  a  strong  focus  on  the  green 
the 
transition,  dedicating  47.71%  of 
available  funds  to  measures  that  support 
climate  objectives  and  20.50%  of  its  total 
allocation to support the digital transition. It 
also  retains  a  strong  social  dimension  with  social 
protection  measures,  especially  related  to  poor 
education  outcomes  and  skills  of  pupils  and  low 
enrolment rate of children in pre-school facilities.  

Table A3.1:  Key facts of the Slovakian RRP 

Source: RRF Scoreboard 

timely 

With  three  payment  requests  completed, 
Slovakia’s  implementation  of  its  RRP  is 
completion 
underway.  However, 
requires  increased  efforts.  The  Commission 
gave a positive assessment of Slovakia’s first and 
second payment requests, taking into account the 
opinion of the Economic and Financial Committee. 
This  led  to  EUR  398.7  million  being  disbursed  in 
financial support on 29 July 2022 and EUR 708.8 
million  on  22  March  2023 (19).  The  related  30 
milestones  and  targets  covered  reforms  and 
investments such as equipping and digitalising the 
police  force  or  reorganising  the  judicial  map,  and 
others  in  the  areas  of  digital  transformation, 
healthcare and public administration.   

The most recent payment request, which was 
positively assessed by the Commission on 24 

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

resilience-scoreboard/country_overview.html 

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

28 

Initial plan CID adoption date13 July 2021Scope Revised plan with REPowerEU chapterLast major revision14 July 2023Total allocation EUR 6.408 billion in grants (5.2% of 2023 GDP)Investments and reforms 64 investments and 70 reforms Total number of milestones and targets222Fulfilled milestones and targets57 (25.7% of total) 
 
 
 
  
 
 
 
 
the 

reflected 

disbursement 

November 2023, has led to the disbursement 
of  EUR  662.3  million  on  28  December  2023. 
positive 
The 
assessment  of  27  milestones  and 
targets 
covering,  among  others,  the  preparation  of  a 
strategy  to  guide  the  economy’s  digital  transition, 
the launch of new calls to enhance the cooperation 
researchers  and  private 
between  academic 
the 
companies,  and 
accessibility  and  quality  of  the  education  system, 
including  pre-primary  schools.  With  the  third 
payment  request,  the  overall  disbursement  to 
Slovakia  under  the  RRF,  net  of  pre-financing, 
amounts to EUR 1.77 billion. 

improvement  of 

the 

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

Table A3.2:  Measures in Slovakia's RRP 

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 

29 

EUR 2.67billion (41.7%)Total allocation: EUR 6.408billionReforms and investments implemented• Adaptation of the electricity legal framework• Reform of primary care provision for adults, children and youth• Reform of governance, evaluation and support in science, research and innovationUpcoming reforms and investments• Investment in energy efficiency renovations for buildings• Construction and reconstruction of hospitals• Reduction of the administrative burden on entrepreneurs 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
ANNEX 4: OTHER EU INSTRUMENTS FOR RECOVERY AND GROWTH 

policy 

helped 

people,  as  well  as 
renovated  schools  and 
kindergartens  for  175 000  children  and  pupils. 
Cohesion 
finance 
also 
accommodation  and  other  basic  services  for 
almost 100 000 refugees from Ukraine. During the 
same  period,  the  European  Social  Fund  (ESF) 
financed  many  public  administration 
reform 
projects and was able to provide life-long learning 
opportunities  to  37 000  adults  and  support  to 
127 000  young  people.  Activities  under 
the 
European  Regional  Development  Fund  (ERDF)  and 
ESF  were  strengthened  by  REACT-EU  and  FAST-
CARE schemes. 

In  the  current  programming  period  (2021-
2027),  cohesion  policy will  provide a  further 
boost  to  Slovakia’s  competitiveness,  to  the 
green  transition  and  to  social  cohesion, 
improving  the  living  and  working  conditions 
of  Slovakia’s  people.  In  2021-2027,  the  ERDF 
and  Cohesion  Fund  (CF)  will  boost  research  and 
innovation,  digitalisation,  and  energy  efficiency. 
lie  at  the  heart  of  ERDF  support  to 
SMEs 
instruments  will  be 
companies,  and  financial 
widely deployed to improve their access to finance. 
Over  16 000  households  will  improve  the  energy 
performance of their dwellings and 20 000 will get 
connection.  These 
internet 
a  high-capacity 
measures will help people to better overcome the 
challenges of the green and digital transitions. The 
Just  Transition  Fund  (JTF)  will  facilitate  the  green 
transition  and  foster  job  creation  in  three  regions 
with coal mining and emission-intensive industries 
(Trenčín, Košice and Banská Bystrica). The JTF will 
support 130 businesses, train over 5 000 workers 
and  build  or  renovate  education  facilities  for 
12 600  students.  The  European  Social  Fund  Plus 
(ESF+)  has  been  rolled  out  at  a  good  pace.  The 
ESF+  funding  priorities  (altogether  EUR  2.7  billion 
in  total  eligible  costs)  include  providing  tailored-
made  assistance  to  those  who  are  long-term 
unemployed 
(targeting  167 000  people)  and 
inclusive social,  education and support services to 
57 000  Roma  people.  The  ERDF  and  ESF+  will 
jointly invest EUR 900 million to improve the living 
conditions and socio-economic inclusion for Roma 
policy 
people.  With 
substantially  contributes  to  achieving  the  UN 
Sustainable Development Goals (SDGs) in Slovakia, 
in  particular  SDG  9 
innovation, 
infrastructure), SDG 8 (Decent work and economic 
growth) and SDG 7 (Affordable and clean energy). 

this  work, 

(Industry, 

cohesion 

EU funding instruments provide considerable 
resources for recovery and growth to the EU 
Member States. In addition to the EUR 6.4 billion 
of  Recovery  and  Resilience  Facility  (RRF)  funding 
described in Annex 3, EU cohesion policy funds (20) 
provide EUR 12.6 billion to Slovakia for the 2021-
2027 period (21). 
two 
instruments  combined  represents  around  15.47% 
of  the  country’s  2023  GDP,  compared  to  the  EU 
average  of  5.38%  of  GDP (22).  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. 

Support 

these 

from 

in 

entrepreneurship, 

During  the  2014-2020  programming  period, 
cohesion  policy  funds  boosted  Slovakia's 
competitiveness, with  tangible achievements 
notably 
energy 
efficiency,  transport  and  provision  of  social 
services.  By  the  end  of  the  eligibility  period  in 
December  2023,  cohesion  policy  funds (23)  had 
made EUR 14.3 billion available to Slovakia (24), of 
which  EUR  8.9  billion  has  been  disbursed  since 
March  2020,  when  the  COVID-19  pandemic 
began (25). Cohesion policy funds provided support 
to  over  22 000  businesses,  including  5 000  start-
ups.  The  funding  leveraged  EUR  250  million  of 
private  investment  in  innovation  or  research  and 
development  projects.  The  capacity  of  renewable 
energy  production  increased  by  400 MW.  Other 
include  673 km  of  new  or 
achievements 
reconstructed  roads  and  30 km  of  upgraded 
railways,  improved  health  services  for  600 000 

(20)  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. 

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

(22)  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. 

(23)  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. 

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

financing, amounted to EUR 17.6 billion.  

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

30 

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

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

Source: European Commission 

legal 

through 

the  RRP 

to  be  connected 

Through combined action, cohesion policy and 
the recovery and resilience plan (RRP) have a 
mutually  reinforcing  impact  in  Slovakia.  To 
promote  the  use  of  renewable  energy,  cohesion 
policy  investments  are  expected  to  help  develop 
smart  energy  systems,  grids  and  storage.  At  a 
local level, integrating renewables into distribution 
grids  will  improve  planning  around  supply  and 
demand.  This  complements  the  reforms  and 
for 
investments  provided 
renewable  energies  and  the  grid.  Under  the  RRP, 
framework  enables  new 
the  updated 
the  grid. 
to 
renewables 
Investments  in  renewables  will  help  Slovakia 
achieve  the  2030  climate  targets.  In  addition,  in 
transport,  the  Slovak  RRP  contains  an  investment 
plan for railway infrastructure projects in order to 
increase the efficiency of the construction process 
for railway infrastructure. This investment plan will 
be 
policy 
investments  in  the  modernisation  of  the  main 
railway 
in  the  trans-European 
transport  network,  including  electrification  where 
appropriate as well as upgrades to safety, control, 
and  signalling  equipment.  In  education,  the  RRP 
curricular  reform  aims  to  improve  skills  and 
competences of pupils and better support equality 
and  inclusiveness  in  Slovakia’s  education  system, 
while  providing  flexibility  to  develop  curricula  at 
school  level.  To  complement  this,  the  ESF+  seeks 
to  strengthen  pupils’  literacy.  The  contribution  of 
cohesion  policy  and  RRP  funding  by  policy 
objectives is illustrated by Graphs A4.1 and A4.2. 

complemented  with 

cohesion 

included 

lines 

(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 
Slovakia. 
Source: European Commission 

The Technical Support Instrument (TSI) helps 
Slovakia  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  Slovakia 
implement growth-enhancing reforms since 2016. 
The  support  provided  in  2023  included  action  to: 
simplify  and  accelerate  the  roll  out  of  cohesion 
policy;  implement  a  comprehensive  healthcare 
reform;  and  digitalise  insolvency  proceedings.  The 
TSI  also  helps  Slovakia  to  increase  its  overall 
capacity  to 
implement  specific  reforms  and 
investments included in its RRP, such as preparing 
a  State  aid  scheme  to  promote  decarbonisation 
and introducing multi-annual expenditure ceilings. 

Slovakia  also  receives  funding  from  several  other 
EU  instruments,  including  those  listed  in  Table 
A4.1. 

31 

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 Slovakia 

(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 

32 

Amount 2021-2027 (EUR million)Cohesion policy12 593.7RRF grants (1)6 408.5Public sector loan facility (grant component) (2)34.8Common agricultural policy (3)3 380.0EMFF/EMFAF (4)15.2Connecting Europe Facility (5) 253.7Horizon 2020 / Horizon Europe (6) 82.3LIFE programme (7) 44.3Volume of operations (EUR million)European Fund for Strategic Investment 2015-2020 (8) 562.7InvestEU 2021-2027 (9) 39.0PeriodTotal amount available (EUR million)Disbursed amount (EUR million)SURE (10)2020-2022 630.9 630.95 500.0EU grantsAmount 2014-2020 (EUR million)14 288.4-- 202.3 27.7EU loans7.7 711.7 136.6 49.6EU guaranteesEU Guarantee (EUR million) 
 
  
 
ANNEX 5: RESILIENCE 

Table A5.1:  Resilience indices across dimensions for Slovakia 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 

resilience 

This  Annex  uses  the  Commission’s  resilience 
dashboards  (RDB) (26)  to  show  Slovakia’s 
relative 
and 
vulnerabilities (27)  that  may  be  of  relevance 
for  societal,  economic,  digital  and  green 
transformations, and for dealing with future 
shocks and geopolitical challenges. (28) 

capacities 

According  to  the  RDB’s  set  of  resilience 
indicators,  Slovakia  has  medium  overall 
vulnerabilities  and  capacities,  both  of  which 
have  remained  stable  with  respect  to  last 
year.  While  overall  vulnerabilities  in  Slovakia  are 
in  line  with  the  EU  average,  its  overall  capacities 
are  below  the  EU  average.  The  distribution  of 
indicators  across  different  resilience  categories 
reflects this, with 30% of vulnerability indicators in 

(26)  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). 

(27)  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. 

(28)  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. 

33 

the  medium-low  or  low  category,  and  under  40% 
of  capacity indicators  in the  medium-high  or  high 
category. 

In  the  social  and  economic  dimension, 
Slovakia’s  vulnerabilities  and  capacities  are 
stable  compared  to  last  year’s  RDB.  The 
country continues to have high vulnerabilities, such 
as  the  high  regional  dispersion  of  household 
income,  high  employment 
in  energy-intensive 
sectors,  and  high  employment  in  manufacturing 
with a high risk of automation, with the latter two 
pointing  to  potential  concerns  about  Slovakia’s 
preparedness  for  the  green  and  digital  transition. 
Slovakia  would  also  do  well  to  improve  several 
particularly  low  capacities,  such  as  its  household 
saving  rate,  the  proportion  of  children  under  3  in 
formal  childcare,  and  its  average  Programme  for 
International  Student  Assessment  (PISA)  scores. 
On  the  bright  side,  its  employment  rate  has 
increased.  

With  its  medium-low  vulnerabilities  in  the 
green  dimension,  Slovakia  performs  above 
the  EU  average  but  it  remains  below  the  EU 
average  on  its  capacities.  It  has  improved  the 
harmonised risk indicator 1 for pesticides since the 
2023  RDB,  and  has  a  low  consumption  footprint 
per  capita.  Among  its  green  capacities,  it  has 
improved  its  circular  material  use  rate,  but  CO2 
absorption  by  forests  has  decreased.  Slovakia  is 
among  the  leaders  in  e-waste  recycling,  but  the 
country 
terms  of 
environmental patents per capita.  

lagging  behind 

in 

is 

SKSKEU-272023 RDB2024 RDB2024 RDBHighMedium-highMediumMedium-lowLowHighMedium-highMediumMedium-lowLowDimensionDistribution of indicators by vulnerabilities and capacitiesOverall resilienceVulnerabilities0.470.440.50Capacities0.520.500.67VulnerabilitiesSocial and economicVulnerabilities0.440.400.47Capacities0.390.310.670.530.580.65GreenVulnerabilities0.660.690.44Capacities0.560.590.70CapacitiesGeopoliticalVulnerabilities0.450.370.41Capacities0.550.500.65DigitalVulnerabilities0.480.460.52Capacities0%20%40%60%80%100%Vulnerabilities(60 indicators)Capacities(64 indicators) 
 
 
 
   
 
 
Slovakia’s  vulnerabilities  and  capacities  in 
the  digital  dimension  have  remained  stable 
overall.  There  has  been  an  improvement  in 
capacities,  such  as  judicial  system  e-tools  and 
and 
businesses 
communication technology (ICT) specialists.  

information 

seeking 

In  the  geopolitical  dimension,  Slovakia’s 
capacities have remained stable with respect 
to last year but its vulnerabilities are now at 
medium-high.  On  the  capacity  side,  intra-EU 
trade in energy  and recyclable raw materials, and 
the  proportion  of  non-EU  citizens  in  employment 
have  improved,  and  Slovakia  remains  among  the 
EU’s  top  performers  in  backward  participation  in 
global  value  chains  and  intra-EU  trade  openness. 
However,  its  proportion  of  non-EU  citizens  in 
employment and net migration remain among the 
lowest  in  the  EU.  On  the  vulnerability  side,  there 
has  been  a  significant  narrowing  of  the  gap  in 
employment  between  EU  and  non-EU  nationals, 
but  Slovakia’s  net 
investment 
position has deteriorated slightly.  

international 

34 

 
 
 
ENVIRONMENTAL SUSTAINABILITY 
ANNEX 6: EUROPEAN GREEN DEAL 

Slovakia  has  made  progress  in  the  green 
transition,  with  more  action  needed  on 
specifying  the  funding  framework  for  the 
climate  and  energy  transition  and  the 
policies  needed  to  attain  the  2030  effort 
sharing  target,  on  addressing  potential 
hazards  from  climate  risks,  on  the  circular 
economy, and other areas. This Annex provides 
a  snapshot  of  climate,  energy,  and  environment 
aspects of the transition in Slovakia (29). 

information  on  the 

Slovakia’s draft updated national energy and 
(NECP)  does  not  provide 
climate  plan 
updated 
investment 
needed  to  achieve  its  2030  climate  and 
energy  targets  as  compared  to  the  2019  plan. 
The  draft  updated  NECP  only  provides  partial 
to 
information  on 
implement  the  policies  and  measures.  It  outlines 
the main  national  and  EU  sources  of  funding,  but 
without  attributing  them  to  specific  policies  and 
measures  or  investment  needs.  Furthermore,  the 
contribution  of  the  Recovery  and  RRF  is  not  fully 
reflected (30). 

investment  needed 

the 

With  the  policies  and  measures  currently 
planned, Slovakia is likely to fall short of its 
2030  effort  sharing  target (31). 
In  2022, 
Slovakia’s  greenhouse  gas  emissions  from  its 
effort  sharing  sectors  are  expected  to  be  12.1% 
below  2005  levels.  Current  policies  are  projected 
to  reduce  Slovakia’s  effort  sharing  emissions  by 
12.9%  from  2005  levels  by  2030.  This  leaves  a 
gap  of  almost  10  percentage  points  below 
Slovakia’s effort sharing target to achieve a 22.7% 

(29)  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. 

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

national energy and climate plan of Slovakia.. 

(31)  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). 

35 

reduction (32).  This  highlights  the  importance  of 
planning  and 
implementing  more  ambitious 
climate  action.  The  draft  updated  NECP  reiterates 
climate 
Slovakia’s 
neutrality by 2050. 

commitment 

to  achieve 

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  Slovakia’s 
target  for  renewable  energy  and  energy 
efficiency  in  its  final  updated  NECP (33). 
Slovakia’s renewable energy contribution set in its 
draft updated NECP, 23% by 2030, is significantly 
below the required contribution of 35%. Its energy 
efficiency  contributions  of  15.7  Mtoe  in  primary 
energy  consumption  and  10.27  Mtoe  in  final 
energy  consumption  for  2030  set  in  the  draft 
updated  NECP  are  also  less  ambitious  than  those 

(32)  The  effort  sharing  emissions  for  2022  are  based  on 
approximated 
inventory  data.  The  final  data  will  be 
established in 2027 after a comprehensive review. Slovakia’s 
draft updated NECP does not provide updated projections for 
the  effort  sharing  sectors.  The 
information  on  such 
projections is based on the data that had to be reported by 
15  March  2023  under  Article  18  of  Regulation  2018/1999 
(the Governance Regulation), in relation to the value for the 
2005  base  year  as  specified  in  Commission  Implementing 
Decision (EU) 2020/2126 of 16 December 2020. For details, 
see the Commission’s assessment of Slovakia’s draft NECP. 

(33)  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 
Slovakia  at  13.6  Mtoe  for  primary  energy  consumption.  The 
Commission communicated a corrected national contribution 
of  8.70  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 Slovakia. 

051015202520052022MtCO2eWasteSmall industryAgricultureBuildings (under ESR)Domestic transport (excl. aviation) 
 
 
 
       
 
 
 
the  Energy  Efficiency  Directive. 
required  by 
lower  than 
Moreover,  the  2030  targets  are 
Slovakia’s  2020 
targets 
energy 
(reductions  of  4.26%  and  1.25%  for  primary  and 
final energy consumption respectively). 

efficiency 

Slovakia  still  has  progress  to  make  on  its 
transition to sustainable mobility (34). In 2022, 
battery  electric  vehicles  accounted  for  0.2%  of 
Slovakia’s  passenger  vehicle  fleet. 
Its  2 100 
publicly  accessible  charging  points  provided  one 
charging point for every four e-vehicles, above the 
EU average of 1:10. Passenger cars accounted for 
83% of the total distance travelled by passengers 
(just below the EU average of 85%). The share of 
freight  transported  by  road  is  relatively  low, 
however,  at  55%  (EU  average:  75%),  with  rail 
(27%)  and  pipelines 
(15%)  having  a  more 
significant  role.  44%  of  the  rail  network  is 
electrified (EU average: 56%). 

Slovakia lacks the required ambition to meet 
its  2030  target  on  carbon  removals  through 
land  use,  land-use  change  and  forestry 
Its  capacity  for  carbon  removals 
(LULUCF). 
through  land  use  can  only  be  maintained  by 
planting more trees and through better landscape 
management.  With  higher  net  removals  in  2020 
thanks  to  reduced  harvesting,  Slovakia's  land  use 
sector  is  seeing  a  decline  in  net  carbon  removals 
owing  to  ageing  forests.  Its  2030  LULUCF  target 
removals  of 
will 
504 kt CO2eq (35),  resulting  in  total  net  carbon 
removals  of  6 821 kt CO2 eq.  However,  according 
to  the  latest  projections,  Slovakia  is  expected  to 
fall short of this figure (36). 

require  additional  carbon 

A  high  climate  protection  gap (37)  related  to 
floods  call  for  monitoring.  Slovakia  has 
continued to make progress on climate adaptation. 
Enhanced  climate  observation 
inform 
decision-making  in  specific  sectors.  A  crucial  step 
was  the  approval  of  the  national  adaptation  plan 
in  2021.  This  plan  outlined  the  priorities  for 

tools 

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

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

Regulation (EU) 2023/839. 

(36)  Projections submitted in Slovakia’s draft updated national 

energy and climate plan, 2023. 

(37)  On the climate protection gap, see the annotations to Table 

A6.1. 

adaptation  in  vulnerable  sectors,  notably  water 
management,  agriculture,  forestry,  nature,  health, 
and  urban  planning.  An  evaluation  of  progress 
made in  implementing  the  plan  was  submitted  to 
the  government.  A  comprehensive  assessment  of 
Slovakia’s vulnerability to climate impacts is being 
planned  as part of preparations for a climate law 
and an updated adaptation strategy, but this may 
take time. Although guidelines exist for adaptation 
information  on 
monitoring  and  evaluation, 
spending  and  results  in  this  area  is  incomplete. 
The  main  barriers  to  successful  implementation 
are a lack of financial resources, low awareness at 
regional  and  local  level,  and  inadequate  inter-
ministerial 
on 
mainstreaming  adaptation  into  sectoral  policies 
and plans (38). 

cooperation, 

particular 

in 

Air quality continues to be a serious concern 
in Slovakia. According to the latest estimates (for 
2021)  by  the  European  Environmental  Agency, 
Slovakia faces around 1 060 years of life lost for 
every  100 000  inhabitants  due  to  exposure  to 
particulate matter (PM2.5) and 76 years lost due to 
exposure  to  nitrogen  dioxide  (NO2).  Furthermore, 
the 
smog-precursor  emission 
intensity to GDP decreased by 62% between 2008 
and 2020, reaching 0.80 tonne/EUR 10 - below the 
EU average. 

indicator 

for 

The  development of  infrastructure continues 
to  have  a  major  impact  on  biodiversity  in 
Slovakia. At the end of 2021, 37.4% of Slovakia’s 
land  area  was  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  only  38%  of 
habitats  and  23%  of  species  were  in  a  good 
conservation 
include 
development of infrastructure such as hydropower 
plants,  roads,  motorways,  water  reservoirs  and 
anti-flood infrastructure.  

status.  The  pressures 

Intensive  agriculture  has  a  major  impact  on 
ecosystems,  biodiversity  and  air  quality. 
Agricultural  land  is  still  affected  by  biodiversity 
loss and the common farmland bird index dropped 
from 98.9 in 2011 to 83.5 in 2018. Slovakia is in 
the  process  of  converting  to  organic  agriculture. 
The  share  of  Slovakia’s  utilised  agricultural  area 

(38)  See the Commission’s 2023 assessment and 

recommendation on Slovakia’s progress on climate 
adaptation. 

36 

 
 
 
monitoring  sites  were  reported  to  have  pesticide 
levels  exceeding  the  thresholds  set  by  the  Water 
Framework  Directive  and 
the  Groundwater 
Directive. Both surface water and groundwater are 
highly  polluted  and  measurements  from  50%  of 
large  rivers  and  41%  of  groundwater  showed 
levels exceeding the threshold. 

In  2014-2020, 

investment,  particularly 

Slovakia  would  benefit  from  increasing  its 
in 
environmental 
sustainable  water  management,  and  circular 
economy  and  waste. 
the 
environmental  investment  gap  was  estimated  at 
EUR  975  million  per  year,  equivalent  to  1.1%  of 
GDP  (above  the  EU  average  of  0.8%).  The  gap  is 
estimated  to  be  smaller  in  2021-2027,  at  EUR 
802  million.  Slovakia  can  benefit  from  increased 
funding, 
in  particular  for  sustainable  water 
management  (estimated  gap  of  EUR  226  million 
per year) and for circular economy and waste (EUR 
189  million  per  year)  as  the  investment  gap 
widened there. By contrast, the annual investment 
gaps for biodiversity and ecosystems and pollution 
prevention  and  control  decreased  to  EUR  208 
million  and  EUR  180  million  respectively  but 
remains excessive.  

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 

tillable  area 

(UAA)  under  organic  agriculture  reached  13.5% in 
2021 against the EU average of 9.1% (39) and the 
EU-wide  goal  of  at 
least  25%  by  2030. 
Furthermore,  conservation  tillage  practices,  which 
increase  soil  organic  carbon,  covered  18%  of 
in  2016.  Slovakia’s 
Slovakia’s 
livestock  density  index  decreased  from  0.35%  to 
0.33%, below the EU  average of 0.75%. Intensive 
animal  farming  is  usually  the  main  cause  of  the 
emission  of  pollutants  such  as  ammonia. 
Slovakia’s  agricultural  sector  was  responsible  for 
87.3%  of  the  country’s  total  ammonia  emissions 
in 2021 (EU average: 90.7%). Slovakia has one of 
the  lowest  shares  of  irrigated  land  in  the  EU, 
accounting  for  1.5%  of 
its  UAA.  The  water 
abstracted for agricultural purposes accounted for 
5.1% of total abstraction in 2019. 

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 

in  2019.  The  content  of  nitrate 

Intensive  agriculture  continues  to  generate 
pollution.  According  to  the  latest  figures  on  the 
gross  nitrogen  balance  on  agricultural 
land, 
Slovakia  has  a  nitrogen  surplus,  with  an  average 
nitrogen  balance  of  63.3 kg  of  nitrogen  per 
in 
hectare 
groundwater  stands  below  the  EU  average  (17.9 
vs  20.5 mg  nitrate/l),  and  12%  of  groundwater 
monitoring  stations  showed  levels  above  the 
maximum  of  50 mg  nitrate/l.  Furthermore,  the 
country  showed  an  average  phosphorous  balance 
of  -3.1 kg/ha  in  2019.  Waterbodies  are  also 
affected  by  pesticide  pollution,  and  34.4%  of 

(39)  In 2020. 2021 data not yet available. 

37 

01202468101220162020% LSU per hectare% of total utilised agricultural areaLivestock density index Slovakia (% LSU per ha)Livestock density index EU-27 (% LSU per ha)Organic farming Slovakia (% of total utilised agricultural area)Organic farming EU-27 (% of total utilised agricultural area)349110914141802261892080100200300400500Pollution prevention &controlWater managementCircular economy andwasteBiodiversity andecosystemsmillion EUR2014-20202021-2027 
           
 
           
 
 
Table A6.1:  Indicators tracking progress on the European Green Deal from a macroeconomic perspective 

Source:  (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. 

38 

Target200520192020202120222030WEMWAMProgress to climate and energy policy targetsGreenhouse gas emission reductions in effort sharing sectors (1)Mt CO2eq, %, pp23,137.1-13%-18%-12%-12%-23%-21-11Net greenhouse gas removals from LULUCF (2)Kt CO2eq-4 265-4 994-7 179-7 211-7 226-6,821n/an/aShare of energy from renewable sources (1) (3)%6%17%17%17%18%35%--Energy efficiency: primary energy consumption (3)Mtoe17.416.015.216.415.413.6Energy efficiency: final energy consumption (3)Mtoe11.611.210.411.610.68.7Projected20182019202020212022202120222030Green transition: mobility         Greenhouse gas emissions: road transportMt CO2e---7.47.6769.0786.68.2Share of zero-emission vehicles in new registrations (4)% 0.30.21.21.51.9912.1n/aNumber of publicly accessible AC/DC charging points --46512422221299178446956n/aShare of electrified railways%43.8%43.7%43.7%43.7%-56.1%-n/aGreen transition: buildings         Greenhouse gas emissions: buildingsMt CO2e---5.45.0537.0486.74.3Final energy consumption in buildings2015=10099.7%99.7%99.5%113.0%102.3%104.0%97.2% Climate adaptation         Climate protection gap (5)score 1-4--2.41.61.61.51.5n/a20182019202020212022202020212022State of the environmentWater | Water exploitation index (WEI+) (1) (6)% of renewable freshwater1.31.2---3.6--Circular economy | Material footprint (7)tonnes per person14.813.612.712.812.114.214.814.9Pollution | Years of life lost due to air pollution by PM2.5 (8)per 100.000 inhabitants1,1038098451,060-545584-Biodiversity | Habitats in good conservation status (9)%37.614.7                       Common farmland bird index (10)2000=10084----78--Green transition: agri-food sectorOrganic farming% of total utilised agricultural area9.8510.3111.6713.45-9.1--Nitrates in groundwatermg NO3/litre14.3812.5812.45--20.42--Food waste per capitaKg per capita10699-130131-Share of soil in poor health (11)%3741Soil organic matter in agricultural land (12)Mt per ha100----7,904--DistanceEU-27 
 
        
 
ANNEX 7: ENERGY TRANSITION AND COMPETITIVENESS 

This  Annex (40)  sets  out  Slovakia’s  progress 
and  challenges  in  accelerating  the  net-zero 
energy  transition  while  bolstering  the  EU’s 
competitiveness 
energy 
sector (41). It considers measures and targets put 
forward in the draft updated National Energy and 
Climate Plans (NECPs) for 2030 (42). 

clean 

the 

in 

Both  average  household  gas  and  electricity 
prices  in  Slovakia  increased  in  the  second 
half  of  2023  compared  to  2022,  but 
regulated  electricity  and  gas  prices  for 
households were still significantly lower than 
the EU average, although the same could not 
be said for the industrial and service sectors. 
Throughout  2022,  household  gas  and  electricity 
prices were stable, 70% and 45.6% lower than the 
EU  average.  Both  prices  increased  the  following 
year  by  22%  and  3%,  remaining  significantly 
below  the  EU  average,  by  46%  and  32%.  For  the 
industrial  and  services  sectors,  both  gas  and 
electricity prices were higher than the EU average. 
According  to  Eurostat  data,  the  average  gas 
industry/service  price  in  the  second  half  of  2023 
was  40%  higher  than  the  EU  average,  while  the 
average  industry/service  electricity  price  in  the 
same period were by 16% higher compared to the 
EU average. 

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

an 

insight 

(1) For industry, consumption bands are I3 for gas and IC for 
electricity,  which  refer  to  medium-sized  consumers  and 
provide 
affordability 
(2)  For  households,  the  consumption  bands  are  D2  for  gas 
and 
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 

into 

for 

DC 

consumers 

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

have 

Graph A7.2: Trends in electricity prices for non-
household consumers (EU and foreign partners) 

(40)  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. 

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

Industry Act. 

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

39 

(1) For Eurostat data (EU and HR), 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 

0.000.050.100.150.200.250.300.35€/KWhGas (industry & service) - SKGas (industry & service) - EUGas (households) - SKGas (households) - EUElectricity (industry & service) - SKElectricity (industry & service) - EUElectricity (households) - SKElectricity (households) - EU050100150200250Index ( 2018 S2 = 100)JPUKUSSKEU 
 
 
     
  
 
 
in  2022, 

To  minimise  the  impact  of  price  spikes, 
Slovakia regulated  electricity and gas  prices 
for  vulnerable  consumers,  meaning  all 
households  and  small  businesses.  Thanks  to 
the  scope  of 
legislative  changes 
vulnerable  consumers  who  can  benefit  from 
regulated  prices  was  broadened  to,  for  example, 
social services and social housing. In 2023, Slovak 
households had one of the lowest energy prices in 
the  EU.  For  an  average  household,  the  price  of 
electricity increased by less  than  3%  and the gas 
price  increased  by  approximately  16%  compared 
to 2022. (43)  

Consumer  empowerment  in  the  electricity 
and  gas  markets  have  been  ongoing  but  are 
still  not  on  a  par  with  the  rest  of  the  EU. 
Slovakia  has  reported  the  transposition  of  the 
Electricity  Directive.  However,  it  applies  regulated 
prices  for  vulnerable  consumers  (including  all 
that  consumer 
households),  with 
engagement  in  the  market  is  limited.  In  terms  of 
smart  meters,  Slovakia  has  decided  to  proceed 
with  the  rollout  of  selective  smart  meters  for 
consumers  whose  annual  consumption  is  over 
4 MWh  (approximately  23%  of  all  forecasted 
demand points in 2020).  

result 

the 

Slovakia  has  significantly  decreased 
its 
dependence  on  Russian  gas  flows  since  the 
beginning of the war in Ukraine, but Russian 
gas  still  represented  69%  of  its  total  gas 
demand  in  2023.  Nuclear  power  remains  the 
biggest  source  of electricity  generation,  producing 
62% of Slovakia’s electricity in 2022 (44). In 2018, 
Slovakia  relied  completely  on  Russian  energy 
imports, including natural gas, oil, nuclear fuel, and 
around  one-third  of 
imports, 
specifically  coal.  Its  dependence  on  Russia  in  this 
regard  has  decreased  over  time,  as,  since  the 
beginning  of  the  war  in  Ukraine,  the  Slovak 
authorities  having  considerably  reduced  their 
consumption of Russian gas. According to the draft 
updated  NECP,  the  State  Gas  Company  (SPP)  is 
now  able  to  cover  around  70%  of  consumption 
using  non-Russian  sources.  Slovakia  reduced  its 
gas demand between August 2022 and November 

its  solid  fuel 

2023  by  23%  compared  to  the  average  of  the 
past 5 years (45).  

In  2022,  Slovakia  diversified 
its  gas 
suppliers,  establishing  connections  with  all 
implementing 
countries, 
neighbouring 
interconnection  projects  with  Hungary, 
reverse-flow  projects  with  Czechia,  Ukraine, 
and Austria, and developing underground gas 
storage sites. Slovakia’s largest gas supplier, the 
SPP, signed contracts for Norwegian gas and LNG 
for the first time, and has even started looking into 
joining  LNG  terminals  in  the  Baltic  Sea  countries.  
Slovakia  is  in  a  very  good  position  in  terms  of 
natural gas underground storage capacities due to 
its  favourable  geological  condition,  with  a  total 
to  3.38  bcm, 
storage  capacity  amounting 
representing  around  75%  of 
its  annual  gas 
consumption  in  2022.  Slovakia  fulfilled  its  gas 
storage obligations last winter, reaching 98.8% by 
1  November  2023,  and  ended  the  winter  season 
with a storage filled at 69.90% by 1 April 2024. 

Natural  gas  plays  an  important  role  in  the 
Slovak  energy  mix,  as  in  2021  it  was  the 
country’s  main  energy  source,  at  26% 
(against  the  EU  average  of  24%).  However,  it 
accounts only for 7% of Slovakia’s electricity mix, 
half the EU average (15%) (46).  Slovakia increased 
its nuclear capacity in 2023, with the connection to 
the grid of, and a reactor added to, the Mochovce-
3  nuclear  power  plant.  The  new  reactor  reached 
full power in September 2023, with the result that 
approximately  60%  of  Slovakia’s  electricity  now 
comes from nuclear power. Additional capacity will 
be  created  with  the  completion  of  Mochovce-4, 
preliminarily  in  2025.  Slovakia  is  also  considering 
using  small  modular  reactors,  in  particular  to 
ensure  the  security  of  its  supply  and  the  stability 
of  the  electricity  transmission  system  in  the  east 
part  of  the  country  after  the  decommissioning  of 
the Vojany fossil fuel power plant in March 2024. 
The  fuel  assemblies  for  all  reactors  are  currently 
the  Russian  supplier  TVEL. 
contracted  from 
However, in a bid to diversify, a contract has been 
signed  with  Westinghouse  and,  in  June  2023, 
Slovenské  Elektrárne  signed  a  Memorandum  of 
Understanding  with  Framatome,  to  work  together 
on  the  development  of  European  nuclear  fuel 

(43)  625_odhad-vyvoja-regulovanych-cien-energii-2024-

28072023.pdf (gov.sk) 

(44)  Source: Fraunhofer 

(45)  December 2023 data for Slovakia is missing. 

(46)  Source: Fraunhofer. 

40 

 
 
 
design for water-water energetic reactor (WWER)-
440 reactors. 

was 537 MW, 100% of which was in the form 
of photovoltaic panels (49). 

refer 

Slovakia’s  draft  updated  NECP  is  unclear 
about  its  commitment  to  phase  out  coal 
power for power generation compared to the 
approved  Territorial  Just  Transition  Plans 
(TJTP).  Both  plans  do 
to  Slovakia’s 
commitment  to  phase  out  coal  mining  and 
combustion  in  the  energy  sector  by  2023,  by 
closing  the  Bani Nováky mines,  and  reducing  coal 
use  by  decommissioning  the  Nováky  and  Vojany 
coal  power plants in 2023 and 2024 respectively. 
However,  the  closure  of  the  Handlova  coal  mine 
expected in the TJTP in 2024 is not consistent with 
the draft updated NECP. In addition, the analytical 
basis  and  the  impact  assessment  of  the  draft 
updated  NECP  do  not  seem  to  include  Slovakia’s 
commitment. (47)  The  final  updated  NECP  and  the 
TJTPs should be aligned. 

installed 

capacity  did  not 
Renewable 
increase 
to  2021, 
in  2022  compared 
remaining  at  2406  MW (48),  lagging  behind 
progress at EU level of an increase of almost 
10%. Slovakia’s total wind capacity in 2022 was 4 
MW (with no increase registered).  

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

(1) "Other" includes solid biofuels, renewable municipal waste 
and biogas 
Source: IRENA, Ember 

In  the  acceleration  of  solar  deployment, 
Slovakia’s  total  installed  capacity  in  2022 

(47)  See the Commission’s assessment of the draft updated 

NECP.  

(48)  IRENA report 2023 

41 

Slovakia  did  not  take  significant  steps  in 
implementing  reforms  to  accelerate  the 
deployment  of  renewables.  In  particular,  it  has 
neither  identified  nor  introduced  simplified  permit 
procedures for renewable energy communities and 
renewables  self-consumers.  At  the  same  time,  it 
has not introduced single contact points, or limited 
the number of authorities involved in permitting, or 
introduced  measures  to  ensure  the  availability  of 
administrative resources. It published its long-term 
schedule  for  auctions  for  the  next  3  or  5  years, 
with  useful  details  about  the  renewable  energy 
project pipeline.  

is 

Heating  and  cooling  represents  almost  86% 
of  the  Slovakia’s  residential  final  energy 
consumption,  20%  of  which 
from 
renewables.  There  are  approximately  600 000 
individual  gas  boilers  installed  in  Slovakia,  nearly 
one  gas  boiler 
inhabitants. 
Approximately  13 000  heat  pumps  were  sold  in 
2022,  an  increase  of  106%  compared  to  2021, 
bringing the total stock of heat pumps installed in 
the residential sector to around 44 500. Electricity 
in Slovakia is 3.31 times more expensive than gas, 
meaning that end users save energy but pay more 
if they choose a heat pump for heating (50). 

for  every  10 

Further  integrating  renewables  requires  the 
development  and  modernisation  of  the 
electricity  system,  in  particular  investments 
in  distribution  grids.  Slovakia 
is  well-
interconnected  with  neighbouring  countries  at 
transmission system level. There is one Project of 
Common Interest (PCI) for a new transmission line 
with  Czechia  aiming  to  maintain  secure  operation 
of  both  transmission  systems,  while  more  efforts 
are  put  on  smart 
the 
distribution  grids.  There  are  two  on-going  PCI 
projects in this context: ACON with Czechia and the 
Danube InGrid with Hungary. Slovakia also intends 
to support the modernisation and digitalisation of 

interconnection  of 

(49)  IRENA report Renewable Energy Statistics 2023, the data 
might differ from the Eurostat data because of using 
different methodology in calculating the capacity in AC and 
DC. 

(50)  Therefore, Slovakia would benefit from analysing how 
taxation and network charges and levies affect the 
economics of decarbonized heating, and addressing any 
imbalances. 

 
 
 
 
the  transmission  system  and  regional  distribution 
systems  through  the  Recovery  and  Resilience 
Facility funding.  

Energy  storage  will  also  be  crucial  for 
ensuring the flexibility required by the higher 
proportion  of  renewables  in  the  electricity 
system.  Slovakia  has  one  PCI  for  upgrading 
(Slovenské  elektrárne 
pumped-hydro  storage 
Integrator), while other storage projects are under 
consideration. 

Slovakia  has  made  significant  progress  in 
contributing to reaching the 2030 EU energy 
efficiency  targets.  In  2022,  its  primary  energy 
consumption  was  15.5  Mtoe,  a  5.8%  decrease 
to  2021,  and  a  5.3%  decrease 
compared 
compared  to  2012.  Its  final  energy  consumption 
was  10.8  Mtoe,  a  6.9%  decrease  compared  to 
2021, and a 2.8% decrease compared to 2012. In 
the last year, the best results came from industry, 
which  decreased  its  final  energy  consumption  by 
12.4%,  and  the  worst  from  the  transport  sector, 
which  increased  its  final  energy  consumption  by 
3.4%. 

Slovakia has implemented a series of energy 
efficiency  measures  with  support  from 
several EU funds, with most measures aimed 
at buildings and industries. The Slovak recovery 
and  resilience  plan  is  investing  EUR  446.5  million 
in  a  large-scale  renovation  to  make  at  least 
25 164  family  homes  more  energy  efficient.  An 
additional  investment  of  around  EUR  368  million 
aims  to  decarbonise  industry  through  energy 
efficiency  improvements  and  the  deployment  of 
innovative technologies. Under cohesion policy, 8% 
of the overall funding allocated to Slovakia covers 
energy efficiency investments. 

energy 

Most  of  Slovakia’s 
efficiency 
measures remain grant-based and the use of 
financial instruments is very limited. In terms 
of  existing  funding  schemes  to  mobilise  energy 
efficiency 
investments,  Slovakia  mainly  uses 
grants-based  funding  measures  implemented  by 
the Slovak Innovation and Energy Agency (SIEA), or 
by  various  ministries  or  the  Environment  Fund. 
Only  one  measure  provides  debt  financing,  while 
all others provide grants or subsidies. 

Article 7), Slovakia has overachieved by 14% 
the amount of savings required by 2020.    

stock’s 

building 

long  tradition 

Slovakia’s 
energy 
performance  levels  vary  depending  on  the 
type  of  building.  The  renovation  of  multi-
apartment  buildings  has  a 
in 
Slovakia,  with  the  proportion  of  renovated  multi-
apartment  buildings  gradually  increasing  over  the 
last few years and reaching in 2021 approximately 
80%  of  buildings  build  before  2000.  The 
proportion  of  renovated  family  homes  in  2021 
was 61% (for buildings constructed before 2000). 
On the downside, renovation of the non-residential 
building  sector  has  been  slow.  As  a  result,  non-
residential buildings are the most energy-intensive 
of  Slovakia’s  entire  building  stock,  particularly 
hospitals,  schools,  school  facilities  and  hotels. 
Slovakia  does  not  report  doing  any  checks  on 
products  covered  by  ecodesign  and  energy 
labelling (51). 

replaced  by 

Slovakia predicts annual consumption of 200 
kilotonnes of hydrogen by 2030. The hydrogen 
currently  produced  from  fossil  fuel  will  gradually 
low-carbon 
be 
hydrogen.  Several  hydrogen 
projects  with 
neighbouring  countries  are  being  considered,  with 
a  generic  corridor  to  transmit  hydrogen  from 
Ukraine to Slovakia, Czechia, Austria and Germany 
on Slovakia’s list of PCIs.  

renewable  and 

in 

positive 

developments 

Slovakia  continues to  depend on  imports  for 
clean energy technologies. Even so, there have 
been 
battery 
manufacturing and Slovakia’s foothold in the solar 
photovoltaic  modules  supply  chain  is  growing. 
Slovakia  has  a  lot  of  battery  manufacturing 
potential,  with  one  Chinese  company  investing  in 
the  country  in  power  battery  technology  research 
and  development  and  innovation.  In  November 
2023,  the  government  signed  a  Memorandum  of 
Understanding  with  two  battery  companies,  the 
Chinese one mentioned above and a Slovak one, to 
support  the  construction  of  a  lithium-ion  battery 
gigafactory  with  10GWh  in  Slovakia  by  2025, 
20GWh in 2026 and 40Gwh by 2027 to supply the 
electric  vehicles  market.  The  first  Slovak  battery 
production  line  was  launched  a  month  later. 
Despite  the  strong  demand  for  it,  solar  modules 

Regarding  the  energy  savings  obligation  in 
line with the requirements of Article 8 of the 
Energy Efficiency Directive recast (previously 

(51)  According to the internet-supported information and 
communication system for the pan-European market 
surveillance (ICSMS) data, 1 Jan 2023-31 Dec 2023. 

42 

 
 
in 

manufacturing  has  only  recently  developed  in 
Slovakia. The pioneer is a Slovak company founded 
in  2021,  specialising 
the  production  of 
photovoltaic panels, that plans to build a 150 MW 
plant  in  Vranov.  The  plant  will  produce  double-
sided glass panels and aims for a capacity of 500 
MW  by  2024.  Possibilities  for  increasing  the 
production  of  photovoltaic  panels  in  Slovakia  are 
also  being  explored  thanks  to  a  Memorandum  of 
Understanding with Japan. 

research  and 

Slovakia  is  one  of  the  EU  countries  that 
invests  very  little  in  energy  research  and 
innovation.  Public  investment  in  it  as  an  Energy 
Union  priority  is  worryingly  low.  It  has  decreased 
more  than  threefold,  from  0.029%  in  2014  to 
0.008%  in  2021  (as  a  proportion  of  GDP).  While 
private 
investments 
decreased from EUR 18 million in 2014 to EUR 2.8 
million  in  2020.  Public  investments  are  mainly  in 
sustainable transport (55%) and efficient systems 
(34%),  while  private  investments  are  mainly  in 
nuclear  safety  (92%).  The  number  of  patent 
families  filed  in  2019  for  clean  technologies  was 
6,  or  around  1.1  patent  families  per  million 
inhabitants. 

innovation 

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 [%] 69.8%56.3%52.6%69.6%60.5%57.5%55.5%62.5%of Solid fossil fuels 92.2%86.2%88.1%96.1%43.3%35.8%37.3%45.8%of Oil and petroleum products 101.3%102.0%98.3%103.0%96.7%96.8%91.7%97.7%of Natural Gas 136.6%88.1%69.0%137.3%89.7%83.6%83.6%97.6%Dependency from Russian Fossil Fuels [%]of Natural Gas 100.0%85.4%68.9%38.6%39.7%41.3%41.1%21.0%of Crude Oil99.9%99.7%99.6%96.1%28.8%26.7%26.4%19.5%of Hard Coal39.3%35.0%25.8%8.9%43.5%49.1%47.4%21.5%2016201720182019202020212022DIVERSIFICATION OF GAS SUPPLIESGas Consumption (in bcm)4.7                   5.0                   4.9                   4.9                 4.9                 5.5                 4.5                 Gas Consumption year-on-year change [%]1.7%5.4%-1.2%-0.1%-0.4%11.9%-17.4%Gas Imports - by type (in bcm)4.4                   5.2                   4.4                   6.7                 4.3                 5.1                 6.2                 Gas imports - pipeline4.4                   5.2                   4.4                   6.7                 4.3                 5.1                 6.2                 Gas imports - LNG0.00.00.00.00.00.0-                 Gas Imports - by main source supplier (in bcm) (1)Russia4.3                   4.4                   4.4                   6.7                 3.7                 3.5                 2.4                 Not specified0.1                   0.8                   -                   -                 0.6                 1.6                 3.8                 20192020202120222023LNG Terminals - storage capacity m3 LNGNumber of LNG Terminals00000LNG Storage capacity (m3 LNG)00000Underground StorageNumber of storage facilities2                      2                      2                      2                    2                 Technical Capacity (bcm)3.6                   3.8                   3.8                   3.5                 3.3                 20162017201820192020202120222023Gross Electricity Production (GWh) (2)27,064            27,738            26,971            28,434          28,838          30,016          26,838          -              Combustible Fuels7,015           7,367           7,542           7,953         7,897         8,999         6,254         -              Nuclear14,774         15,081         14,843         15,282       15,444       15,730       15,920       -              Hydro4,606           4,623           3,879           4,571         4,799         4,552         3,963         -              Wind6                   6                   6                   6                 4                 5                 4                 -              Solar533               506               585               589             663             671             650             Geothermal-                -                -                -              -              -              -              -              Other Sources130               155               116               33               31               59               47               -              Gross Electricity Production [%]Combustible Fuels25.9%26.6%28.0%28.0%27.4%30.0%23.3%-              Nuclear54.6%54.4%55.0%53.7%53.6%52.4%59.3%-              Hydro17.0%16.7%14.4%16.1%16.6%15.2%14.8%-              Wind0.0%0.0%0.0%0.0%0.0%0.0%0.0%-              Solar2.0%1.8%2.2%2.1%2.3%2.2%2.4%-              Geothermal0.0%0.0%0.0%0.0%0.0%0.0%0.0%-              Other Sources0.5%0.6%0.4%0.1%0.1%0.2%0.2%-              Net Imports of Electricity (GWh)2,651               3,028               3,682               1,700             319                774                1,412             -              As a % of electricity available for final consumption 10.2%11.2%13.7%6.5%1.3%2.9%5.9%-              Electricity Interconnection [%]43.3%42.7%45.3%41.4%40.2%47.0%50.6%Share of renewable energy consumption - by sector [%]-              Electricity22.5%21.3%21.5%22.1%23.1%22.4%22.9%-              Heating/cooling9.9%9.8%10.6%19.7%19.4%19.5%19.9%-              Transport7.8%7.0%7.0%8.3%9.3%8.8%8.9%-              Overall12.0%11.5%11.9%16.9%17.3%17.4%17.5%-                 20192020202120222023VC investments in climate tech start-ups and scale-ups (EUR Mln)-                -                32.72           7.37               -                 as a % of total VC investment (3) in Slovakia start-ups and scale-ups-                -                53.6%6.2%-              Research & Innovation spending in Energy Union R&i prioritesPublic R&I (EUR mln)4.1                9.0                8.3                -              -              Public R&I (% GDP)0.004%0.010%0.008%-              -              Private R&I (EUR mln)15.4              2.8                -                -              -              Private R&I (% GDP)0.016%0.003%-                   -                 -                 ELECTRICITY/ENERGYCLEAN ENERGYSlovakiaEUENERGY DEPENDNCE 
 
   
 
ANNEX 8: FAIR TRANSITION TO CLIMATE NEUTRALITY 

This  Annex  monitors  Slovakia’s  progress  in 
ensuring  a  fair  transition  towards  climate 
neutrality  and  environmental  sustainability, 
particularly  for  workers  and  households  in 
vulnerable situations. Slovakia’s green economy 
is  expanding.  Total  jobs  in  the  environmental 
goods  and  services  sector  grew  to  around  49 
400in  2021,  reaching  1.9%  of  total  employment 
the 
(EU:  2.7%)  Between  2015  and  2022, 
greenhouse  gas  emission  intensity  of  Slovakia’s 
workforce  (see  Graph  A8.1  and  Table  A8.1) 
declined  slightly  from  14.5  to  11.8  tonnes  per 
worker,  below  the  EU  average  (14.3  tonnes  per 
worker  in  2022) (52),  indicating  a  positive  trend  in 
the green transition. However, support is needed to 
provide  workers  with  the  skills  needed  for  the 
the  Council 
green 
Recommendation  on  ensuring  a  fair  transition 
towards  climate  neutrality (53),  to  support  the  fair 
transition  and  implement  the  REPowerEU  plan. 
Slovakia’s  recovery  and  resilience  plan  (RRP) 
outlines  crucial  reforms  and  investment  for  a  fair 
green  transition (54),  complementing  the  territorial 
just transition plans and actions supported by the 
European Social Fund Plus (ESF+). 

line  with 

transition, 

in 

in 

of 

(16.2% 

employees 

energy-intensive 

Employment 
in  Slovakia’s  sectors  most 
affected  by  the  green  transition  remains 
stable,  but  workers  in  declining  activities 
need  active  support.  In  2023,  employment  in 
industries (55) 
Slovakia’s 
comprised 7.3% of total employment (3.5% in the 
EU).  Slovakia  still  has  the  EU’s  highest  proportion 
total 
of  direct  automotive  employment 
in 
manufacturing 
manufacturing) (56),  and  the  transition  towards 
electromobility  represents  a  major  economic  and 
labour  market  challenge  for  the  country.  The  job 
vacancy  rate  in  construction  (see  Graph  A8.2),  a 
key sector for the green transition, is substantially 
lower than the EU average (0.4% vs 3.6% in EU in 
2023).  Nevertheless,  73%  of  small  and  medium-
sized  enterprises  (SMEs)  in  the  sector  reported 
that  skills  shortages  are  holding  them  back  in 
general  business  activities (57).  According  to  the 
European  Labour  Authority 
labour 
shortages were reported in 2023 for a number of 
occupations 
required  specific  skills  or 
knowledge  for  the  green  transition (59),  including 
insulation 
building  and 
workers and house builders. 

related  electricians, 

(ELA) (58), 

that 

Graph A8.1: Fair transition challenges in Slovakia 

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

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

(53)  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. 

(54)  See the 2023 country report. 

(55)  Mining and quarrying (NACE B), chemicals (C20), minerals 

(C23), metals (C24) and automotive (C29). 

(56)  ACEA, 2020. 

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

strategies in small and medium-sized enterprises. 

(58)  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. 

(59)  Skills and knowledge requirements are based on the 

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

45 

0.00.51.01.52.02.5Greenhouse gasemissions per workerEmployment inEnergy-IntensiveIndustriesEducation & trainingin Energy-IntensiveIndsutriesEnergy povertyTransport poverty(proxy)Carbon inequalitySK Latest vs EU LatestEU LatestSK 2015 vs EU Latest 
 
  
 
 
 
 
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. 

important 

If  Slovakia  matches 

industries,  workers’  participation 

Upskilling  and  reskilling  rates  in  energy-
intensive  sectors  are  increasing.  In  energy-
intensive 
in 
education  and  training  increased  from  4.0%  in 
2015  to  12.1%  in  2023,  and  it  is  now  above  the 
EU  average  (10.9%).  In  Slovakia,  33%  of  SMEs 
think that the skills required for greening business 
activities  are  becoming  more 
(EU: 
42%) (57). 
its  projected 
contribution  to  the  EU’s  2030  renewable  energy 
target, between 1 000 and 1 300 additional skilled 
workers will be needed for the deployment of wind 
require  an 
and  solar  energy,  which  may 
investment  in  skills  of  EUR  3.9-4.9  million (60). To 
address  the  need  for  skills  training,  specific 
investment  is  planned  under  the  RRP  and  the 
‘Slovakia’  programme,  encompassing  the  Just 
Transition  Fund  and  ESF+  and  the  European 
Regional  Development  Fund  (ERDF),  for  reskilling 
workers in those regions affected by the transition. 
The  territorial  just  transition  plan  sets  out  the 
strategy  for  investing  EUR  459  million,  while  the 
ESF+  and  ERDF  funding  of  skills  for  the  whole 
country will amount to EUR 308 million (with EUR 
72  million  specifically  for  green  skills  and  jobs, 
and the green economy).  

Energy  poverty  indicators  increased  further 
in  recent  years  due  to  the  spike  in  energy 
prices. The share of the population unable to keep 
their  homes  adequately  warm  increased  from 
5.8% in 2015 to 7.1% in 2022, still below the EU 

(60)  EMPL-JRC AMEDI+ project. 

46 

average (9.3%) (61). The indicator increased by 1.3 
percentage points between 2021 and 2022 on the 
back  of  energy  price  increases  due  to  supply 
constraints caused by the COVID-19 pandemic and 
Russia’s  war  of  aggression  against  Ukraine, 
despite  the  emergency  measures  implemented  in 
Slovakia. In particular, 25.2% of the population at 
risk  of  poverty  (AROP)  (EU:  20.1%)  and  5.0%  of 
lower  middle-income  households  (in  deciles  4-5) 
(EU:  11.6%)  were  affected  in  2022.  However,  in 
January  2023,  21.4%  of  the  population  at  risk  of 
poverty  spent  a  considerable  proportion  of  their 
budget (more than 6%)  on private transport fuels 
(EU: 37.1%) (62). A housing allowance is in place to 
partly cover the cost of housing, including energy. 
The  Office  for 
the  Regulation  of  Network 
Industries  (ÚRSO)  prepared  a  plan  to  protect 
customers in energy poverty in 2022 and set up a 
cross-ministerial working group in 2023 to work a 
definition  and  relevant  measures.  A  housing 
allowance  was  put  in  place  to  cover  part  of  the 
cost of housing, including energy.   

Air  pollution  remains  a  critical  issue  leading 
to environmental inequalities in Slovakia. The 
average levels of air pollution in 2021 stood above 
the EU average (15.4 vs 11.4 µg/m3 PM2.5), with 
all  the  population  living  in  regions  exposed  to 
critical levels of air pollution (63). This has led to a 
significant  impact  on  health,  affecting  vulnerable 
groups in  particular,  and  around  5 350 premature 
deaths  annually (64).  In  2021,  the  consumption 
footprint  for  20%  of  the  population  with  the 
highest  income  was  1.4  times  higher  than  the 
footprint of the poorest 20% (EU: 1.8) (65). For both 

(61)  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. 

(62)  Affordability of private transport fuels is one key dimension 

of transport poverty. The indicator has been developed in the 
context of the EMPL-JRC GD-AMEDI/AMEDI+ projects. 
Methodology explained in Economic and distributional effects 
of higher energy prices on households in the EU. 

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

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

(64)  EEA - Air Quality Health Risk Assessment 

(65)  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) 

0.0%0.5%1.0%1.5%2.0%2.5%3.0%3.5%4.0%4.5%5.0%BCDEFHEU 2023SK 2023SK 2015 
     
 
 
 
Table A8.1:  Key indicators for a fair transition in Slovakia 

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. 

groups,  the  consumption  footprint  is  highest  for 
food and housing).  

Slovakia  is  starting  to  implement  measures 
enabling  a  fair  transition  towards  climate 
neutrality.  Slovakia is taking measures to create 
more  jobs  and  promote  upskilling  policies  and 
employment  incentives  focusing  on  vulnerable 
groups,  such  as  young  people  not  in  education, 
employment  or  training  and  low-skilled  workers. 
Efforts  should  continue  to  address the  challenges 
of the green transition, such as delivering training 
courses  for  green  skills,  providing  governance  for 
the  green  transition,  and  providing  financial 
support  to  green  businesses  or  enabling  them  to 
access such support, particularly those businesses 
in the circular economy. A positive development in 
the  labour  market  is  the  Alliance  of  Sectoral 
Councils  which  could  focus  more  on  training  and 
reskilling  workers  in  green  sectors  in  the  near 
future.  Slovakia  should  make  an  effort  to  lower 
the  tax  wedge  on  the  workforce  (i.e.  the  taxation 
of  earnings  from  labour)  and  include  the  trade 
unions more in the green transition process. In the 
area  of  occupational  safety  and  health,  it  is 
important  to  consider  the  impacts  of  climate 
change  and  the  risks  emerging  in  new,  green 
occupations (66). 

(66)  Based on the monitoring review of the Council 

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

47 

IndicatorDescriptionSK 2015SKEUGHG per workerGreenhouse gas emissions per worker - CO2 equivalent tonnes14.511.8 (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)7.6%7.3% (2023)3.5% (2023)Education & training EIIAdult participation in education and training (last 4 weeks) in energy-intensive industries3.9%12.1% (2023)10.9% (2023)Energy povertyShare of the total population living in a household unable to keep its home adequately warm5.8%7.1% (2022)9.3% (2022)Transport poverty (proxy)Estimated share of the AROP population that spends over 6% of expenditure on fuels for personal transport16.1%21.4% (2023)37.1% (2023)Carbon inequalityRatio between the consumption footprint of the top 20% vs bottom 20% of the income distribution1.41.4 (2021)2.7 (2021) 
 
 
  
 
PRODUCTIVITY 
ANNEX 9: RESOURCE PRODUCTIVITY, EFFICIENCY AND CIRCULARITY 

The green transition of industry and the built 
environment,  in  particular  decarbonisation, 
resource  efficiency  and 
is 
Slovakia’s 
essential 
competitiveness (67). In this regard, priorities for 
Slovakia  are  waste  management  and  the  use  of 
circular materials in industry and construction. 

circularity, 

boost 

to 

is 

The  pace  of  Slovakia’s  circular  economy 
transition 
insufficient  to  achieve  the 
Circular  Economy  Action  Plan  goals.  The 
material  footprint  decreased  from  13.4  to  12.8 
tonnes  per  capita  between  2016  and  2022, 
placing  Slovakia  below  the  EU  average.  The 
amount  of  total  waste  produced  increased  from 
1.7  to  2.3  tonnes  per  capita  between  2010  and 
2020. Still, Slovakia’s 2023 draft updated national 
energy  and  climate  plan  (NECP)  recognises  the 
major  role  of  the  circular  economy  in  cutting 
greenhouse  gas  emissions  and  supporting  energy 
efficiency  and  security.  The  document  mentions 
the importance of circularity in the early stages of 
products  as  well  as  in  consumption  patterns  and 
the  final  stages  of  waste  management.  However, 
the  draft  NECP  does  not  propose  any  specific 
policies  and  measures  not  related  to  waste 
management,  and  the  circular  economy  is  not 
mentioned 
innovation  and 
in 
competitiveness section.        

research, 

the 

Graph A9.1: ETS emissions by sector since 2013 

Source: European Commission 

In  2023,  the  sectors  covered  by  the  EU 
emissions 
in 
Slovakia (68)  emitted  15%  less  greenhouse 
gases than in 2019. In 2023, about a fifth of the 

trading 

system 

(ETS) 

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

(68)  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. 

48 

came 

greenhouse  gases  emitted  by  Slovakia’s  ETS 
installations 
from  power  generation, 
significantly  less  than  the  EU  average  (57%).  Of 
the  total  emissions  from  all  industry  sectors, 
cement  and  lime  production  emitted  a  fifth,  9% 
and  7%  came  from  the  chemical  industry  and 
refineries,  respectively,  40%  came  from  the 
metals industry, and 24% were attributed to other 
industries.  Between  2019  and  2023,  the  power 
sector  reduced  emissions  by  33%,  while  those  of 
the  industry  sectors  declined  by  9%.  Since  2013, 
greenhouse  gas  emissions  have  declined  by  44% 
in  power  generation  and  by  14%  in  the  industry 
sectors  –  with  a  large  decrease  (39%)  in  the 
metals  industry  and  a  slight  increase  in  cement 
and  lime  production  (7%)  –  leading  to  a  total 
greenhouse  gas  emissions  reduction  of  22%  in 
this period.  

There  is  still  room  to  bolster  Slovakia’s 
industrial  efficiency.  Between  2017  and  2022, 
the  circular  material  use  rate  increased  and  the 
gap  with  the  EU  average  became  narrower.  The 
rate  stood  at  9.1%,  versus  an  EU  average  of 
11.5%. Resource productivity has increased as well 
and reached 2.13 purchasing power standards per 
kilogram  (PPS/kg)  in  2022,  versus  an  EU  average 
of  2.45  PPS/kg.  Slovakia  was  dependent  on 
imports  for  45.2%  of  materials  used  in  2022, 
compared  with  an  EU  average  of  22.4%,  making 
the  country  comparatively  more  vulnerable  to 
supply  chain  disruptions.  Furthermore,  water 
abstraction for manufacturing purposes accounted 
for  33.6%  of  total  water  abstracted  in  2019, 
making  manufacturing  the  most  water-intensive 
economic activity.  

Slovakia’s  industry  is  progressing  in  taking 
up  circular  economy  approaches.  The  2022 
Eco-Innovation  Scoreboard  placed  the  country  in 
the ‘eco-innovation catching-up performers group’, 
with  a  score  of  94.4.  As  of  September  2023, 
Slovakia  totalled  only  1  awarded  EU  Ecolabel 
licence  and  5  products  with  the  EU  Ecolabel, 
showing  a  low  take-up  of  products  and  licences, 
which  has  slightly  slowed  down  in  the  last  few 
years. 

There  is  room  to  further  improve  Slovakia’s 
waste  management  system.  The  municipal 
waste  recycling  rate  stood  at  49.5%  in  2022, 
missing the target of recycling 50% by 2020. The 
country is not on track to meet the packaging and 

00.20.40.60.810510152020132014201520162017201820192020202120222023Emissions relative to 2013Mt CO2eCement & LimeChemicalsMetalsRefineriesPower generationOtherSlovakia (both axes) 
 
 
  
 
 
to 

the  EU  average.  By  contrast, 

rate 
the 
non-residential  floor  area  per  capita  was  among 
the lowest in the EU – 8.4 m2 per capita versus an 
EU  average  of  19.4 m2  per  capita  –  in  2020.  The 
long-term  renovation  strategy  for  building  stock 
submitted  in  2020  does  not  mention  the  circular 
economy transition in relation to the buildings and 
renovation sector.  

Construction  remains  a  major  source  of 
waste and wastewater treatment is an issue. 
The amount of waste generated from construction 
and  demolition  activities  per  capita  almost 
doubled  between  2012  and  2020  but  remained 
below the EU average. The proportion of backfilling 
dropped  from  13.3%  in  2018  to  1.1%  in  2020, 
below the EU average of 9.9%. Slovakia has made 
good improvements in construction and demolition 
waste  recovery.  The  rate  stood  at  81%  in  2020, 
achieving  the  Waste  Framework  Directive’s  target 
of recovering 70% by 2020. Furthermore, in 2020, 
only  70%  of  the  population  was  connected  to  at 
least  secondary  wastewater  treatment,  versus  an 
EU average of 81%.  

municipal  waste  recycling  targets  for  2025.  The 
recycling  rate  of  plastic  packaging  was  56.3%  in 
2020,  above  the  target  of  50%,  but  plastic 
packaging production is on the rise, and Slovakia’s 
recycling  facilities  would  benefit  from  keeping  up 
with this  trend.  In  2021, Slovakia  was  among  the 
top performers in e-waste recycling, with a rate of 
92.5%.  Landfilling  has  declined,  but  Slovakia  still 
has  one  of  the  highest  landfilling  rates  in  the  EU 
and the country is not on track to meet the 2035 
landfilling  target.  Illegal  and  substandard  landfills 
are  still  in  operation  and  lack  rehabilitation  and 
definite  closure.  Innovation  in  waste  treatment 
technologies  is  still  low,  as  illustrated  by  the  fact 
that no new patents were registered in 2021.  

Graph A9.2: Treatment of municipal waste 

Source: Eurostat 

Slovakia  could  use  its  building  stock  more 
efficiently.  In  2020,  Slovakia’s  residential  floor 
area per capita was below the EU average  – 35.8 
versus 52.3 m2 per capita. It is growing at a similar 

Table A9.1:  Circularity indicators 

Source: Eurostat, European Environment Agency 

49 

414421478497478010020030040050020182019202020212022Kg 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)1.61.81.81.92.1-2.52022Circular material use rate (%)4.98.410.48.29.1-11.52022Eco-innovation index (2013=100)85.679.185.588.194.4-121.52022Recycling of plastic packaging (%)51.452.856.360.2--40.72021Cost of air emissions from industry (EUR bn)------352.72021Built environmentRecovery rate from construction and demolition waste (%)51.0-81.086.1--89.02020Soil sealing index (base year = 2006)104.8-----103.42018Non-residential floor area (m2 per capita)8.28.38.4---18.02020Waste backfilled (%)13.3-1.1-0.1-9.92020 
               
 
           
 
ANNEX 10: DIGITAL TRANSFORMATION 

in 

targets 

Digital  transformation  is  key  to  ensuring  a 
resilient and competitive economy. In line with 
the  Digital  Decade  Policy  Programme,  particularly 
the 
that  Programme  for  digital 
transformation  by  2030,  this  Annex  describes 
Slovakia’s  performance  on  digital  skills,  digital 
infrastructure/connectivity and the digitalisation of 
businesses  and  public  services.  Where  relevant,  it 
makes reference to progress on implementing the 
Recovery  and  Resilience  Plan  (RRP).  Slovakia 
allocates  20.5%  of  its  total  RRP  budget  to  the 
(EUR 1.23 billion) (69).  Under 
digital 
Cohesion Policy,  an additional  EUR 0.9 billion (7% 
of  the  country’s  total  Cohesion  Policy  funding)  is 
allocated 
digital 
transformation (70). 

transition 

country’s 

the 

to 

The  Digital  Decade  Policy  Programme  sets 
out  a  pathway  for  EU’s  successful  digital 
transformation  by  2030.  Slovakia’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 (71).  Through  this,  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 (72). 
technologies, 
infrastructure  and  tools  all  play  a  role 
in 
addressing 
the  current  structural  challenges, 
including  strategic  dependence  in  various  areas, 
cybersecurity and climate change. 

increases 

Digital 

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

(70)  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. 

(71)  European  Commission  (2023):  2023  Report  on  the  state  of 
|  Shaping  Europe’s  digital  future 

the  Digital  Decade 
(europa.eu). 

(72)  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 
– 
Lives 
Summary, https://www.oecd.org/digital/going-digital-
synthesis-summary.pdf. 

Improving 

Policies, 

Slovakia’s indicators on digital skills show a 
need  for  improvement.  The  country  scores 
below  the  EU  average  for  basic  digital  skills.  The 
percentage of ICT specialists is stagnating at 4.2% 
of  total  employment.  The  RRP  is  expected  to 
contribute  to  boosting  the  level  of  digital  skills  in 
various parts of the population.  

Digital  infrastructure  and  connectivity  have 
improved,  but  progress  is  still  needed  to 
support  Slovakia’s digital  economy.  Very  high 
capacity  network  (VHCN)  coverage  remains  below 
the EU average (69% versus 79%). Similarly, fibre 
to the premises (FTTP) coverage stands at 64%, at 
the  same  level  as  the  EU  average.  Slovakia  has 
progressed  quickly  on  5G  coverage.  79%  of 
populated  areas  now  benefit  from  overall  5G 
coverage,  still  significantly  below  the  EU  average 
of  89%.  In  terms  of  5G  coverage  in  the  3.4–
3.8 GHz  spectrum,  Slovakia  scores  slightly  below 
the  EU  average  of  41%.  Slovakia  is  not  using  its 
RRP 
in  connectivity 
to 
infrastructure. 

investment 

increase 

is  a  key 
Digitalisation  of  businesses 
challenge  for  Slovakia.  42%  of  Slovak  SMEs 
have  a  basic  level  of  digital  intensity,  which  is 
below  the  EU  average  (58%).  Companies’  use  of 
advanced  digital  technologies  such  as  cloud 
computing,  artificial  intelligence  or  big  data  is 
below the EU average of 55%. 46% of companies 
in  Slovakia  use  at  least  one  of  these  three 
technologies. As part of its RRP, Slovakia has rolled 
out  a  new  scheme (73)  to  support  research  and 
application  of  advanced  digital  technologies  by 
companies, research institutions and other entities. 
In  2022,  1.8%  of  enterprises  reported  ICT  service 
outage  due  to  cyberattacks  (e.g.  ransomware 
attacks,  denial  of  service attacks).  Over  the  same 
year, 17.4% of enterprises developed or reviewed 
their  ICT  security  policy  within  the  previous  12 
months. 

Slovakia  is  approaching  the  EU  average  on 
digital public  services.  It  has  a  score  of  72  for 
digital  public  services  for  citizens,  below  the  EU 
average of 79. Almost 4 million people (or almost 
72%  of  all  citizens)  have  access  to  an  electronic 
identification 
(eID)  scheme,  which  has  been 
notified  to  the  European  Commission  under  the 

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

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

50 

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

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

Source: Digital Economy and Society Index 

Slovakia’s 

Regulation. 

eIDAS 
performance 
concerning  access  to  e-health  records  is  much 
poorer  (a  score  of  66,  which  is  below  the  EU 
average of 79), suggesting that there is significant 
room  for  improvement. Recent  RRP  milestones 
include  the  digitalisation  of  public  procurement 
processes through a single electronic platform.  

51 

EUDigital Decade target by 2030 2022202320242024(EU)Digital skillsAt least basic digital skills55%55%51%56%80%% individuals20212021202320232030ICT specialists (1)4.3%4.3%4.2%4.8%20 million% individuals in employment aged 15-7420212022202320232030Digital infrastructure/connectivityFixed very high capacity network (VHCN) coverage67%71%69%79%100%% households20212022202320232030Fibre to the premises (FTTP) coverage (2)62%67%64%64%-% households2021202220232023Overall 5G coverage14%55%79%89%100%% populated areas20212022202320232030Digitalisation of businessesSMEs with at least a basic level of digital intensity43%NA42%58%90%% SMEs2021202320232030Data analyticsNANA30%33%-% enterprises20232023Cloud31%31%30%39%-% enterprises2021202120232023Artificial intelligence5%5%7%8%-% enterprises2021202120232023AI or cloud or data analytics (3)NANA46%55%75%% enterprises202320232030Digitalisation of public servicesDigital public services for citizens65677279100Score (0 to 100)20212022202320232030Digital public services for businesses75787985100Score (0 to 100)20212022202320232030Access to e-health recordsNA426679100Score (0 to 100)2022202320232030Slovakia 
 
       
 
 
 
 
 
 
ANNEX 11: INNOVATION 

This  Annex  provides  a  general  overview  of 
the  performance  of  Slovakia’s  research  and 
innovation  system,  which 
is  essential  for 
delivering  the  twin  transition  and  ensuring  long-
term competitiveness. 

Slovakia  is  an  ‘emerging  innovator’  and  the 
gap  between  its  performance  and  the  EU 
average  is  widening.  According  to  the  2023 
edition of the European Innovation Scoreboard (74), 
its  performance  is  improving  (by  6.4  percentage 
points)  but  at  a  lower  rate  than  the  EU  average 
(8.5 pps). 

R&D  intensity (75)  increased  in  2022  but 
remains well below the EU average.  The R&D 
intensity  experienced  a  solid  year-on-year  growth 
(from  0.92%  of  GDP  in  2021  to  0.98%  in  2022). 
However, this was below its peak in 2015 (1.16%) 
and  remains  significantly  below  the  EU  average 
(2.24%  in  2022).  On  a  positive  note,  many  R&I 
calls provided for under the recovery and resilience 
plan  (RRP)  were  successfully  launched  throughout 
to  support  public  and  private  R&I 
2023 
beneficiaries  and  to  promote  science-business 
cooperation (76).  Moreover, 
the  new  national 
research,  development  and  innovation  strategy 
2030 (77)  adopted  by  the  government  in  March 
2023 sets a 2% target for R&D intensity with the 
share of business enterprise expenditure of 1.2%. 
Implementation  of  the  ambitious  strategy  and  its 
action  plan,  which  contains  a  large  scale  of  91 
concrete  measures,  will  be  crucial  to  keep  the 
reform  processes 
initiated  alive  and  further 
improve the effectiveness of R&D investment. 

The  R&I  ecosystem  would  benefit  from 
higher-quality  public  research  outputs.  The 
share of scientific publications among the top 10% 
most  cited  publications  of  the  total  scientific 
publications  of  the  country 
in  2020 
compared to the EU average of 9.6%) is one of the 
lowest among EU Member States and points to a 

(4.5% 

(74)  2023, European Innovation Scoreboard (EIS), country profile: 
Slovakia, ec_rtd_eis-country-profile-sk.pdf (europa.eu). The 
EIS provides a comparative analysis of innovation 
performance in EU countries. 

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

R&D as a percentage of GDP. 

(76)  On the contrary, substantial cohesion policy resources of 

2014-2020 programming period were not spent on R&I and 
were diverted to other areas to avoid decommitments. 

(77)  Milestone under Slovak recovery and resilience plan. 

Graph A11.1: Total R&D expenditure as % of GDP 
in 2022 

Source: Eurostat 

weak  public  science  base,  adversely  affected  by 
historic  underinvestment  and  problems  linked  to 
retaining  students  and  young  researchers (78).  In 
the  context  of  its  RRP,  Slovakia  has  introduced  a 
system  of  periodic  evaluation  of  scientific 
performance.  As  a  result,  20  public  universities 
and  44  public  research  institutions  (PROs)  were 
already  evaluated.  Their  quality  profiles  were 
published (79)  and  should  serve  as  one  of  the 
criteria  for  institutional  funding  distribution  to 
the  effectiveness  of  Slovak  higher 
increase 
education  institutions  (HEIs)  and  PROs  and  the 
In 
creation  of  higher-level  scientific  outputs. 
relevant 
the  RRP  contains  various 
addition, 
investments  to  support  young  scientists  and 
excellent science teams. 

Collaboration  between  companies  and  the 
research  sector  is  weak  and  technology 
transfer  subdued.  Public  expenditure  on  R&D 
financed by business enterprise (national) as % of 
GDP  is  low,  substantially  below  the  EU  average 
(0.008  in  2021  in  comparison  to  0.054)  and 
decreasing  over  time  (0.028  in  2010).  Data  on 
public-private  scientific  co-publications  as  %  of 
total number of publications show a more positive 
trend  (5.5  in  2015,  6.9  in  2022)  while  also 
remaining below the EU average of 7.6%. In 2021, 
numbers  of 
(FTE)  employed  by 
business  are  significantly  lower  than  the  EU 
average  (1.8  in  comparison  to  5.6  per  thousand 
active population). The underdeveloped academia-
low  R&D 
business 

is  caused  by 

researchers 

interaction 

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

(79)  Periodické hodnotenie výskumnej, vývojovej, umeleckej a 

ďalšej tvorivej činnosti | Ministerstvo školstva, vedy, výskumu 
a športu Slovenskej republiky (minedu.sk) 

52 

00.511.522.5Total R&D expenditure as %of GDPPublic R&D expenditure as% of GDPPrivate R&D expenditure as% of GDPEUSK 
 
 
     
 
 
Table A11.1:Key innovation indicators 

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

spending  and  weak  business  engagement  with 
HEIs (80). To foster science - business cooperation, 
the  RRP  aims  to  mobilise  private  participation  in 
R&D 
by 
transforming the Slovak Academy of Sciences into 
a  public  organisation,  to  facilitate  collaboration 
with private entities. 

schemes 

through 

several 

and 

The  innovation  capacity  of  Slovakia  remains 
limited  and  needs  to  evolve  to  support  the 
transition  towards  a  more  knowledge-based 
economy.  Development 
of 
innovative  technologies  and  solutions  across  the 
economy,  in  particular  SMEs,  remains  limited 
which  is  also  mirrored  in  modest  numbers  of 
patent applications (81) (see also Annex 12). This is 

diffusion 

and 

caused  by  a  number  of  factors,  such  as  the  low 
availability  of  venture  capital,  which  remains 
below the EU average (0.019% in 2022 versus the 
EU  average  of  0.085%)  and  the  lack  of  highly 
skilled  and  qualified  workforce (82)  (see  more  in 
Annex  15).  Only  16%  of  medium-sized  firms 
report  that  they  engage  in  R&D  spending  on  a 
continuous basis, compared with an EU average of 
approximately  one  third (83).  The  RRP  envisages 
several  investment  streams  to  support  business 
innovation.  Also,  the  newly  adopted  national  R&I 
action  plan  includes  supportive measures  such  as 
the  networking  and  modernisation  of  public 
regional and innovation hubs. 

(80)  SME and Entrepreneurship Policy in the Slovak Republic | en | 

OECD, p. 87. 

(82)  Numbers of new graduates in science and engineering per 
thousand population aged 25-34 are decreasing (13.1 in 
2015 vs 8.9 in 2021) and are below the EU average of 16.9. 

(81)  In 2020, 0.58 patents were filed under the Patent 

(83)  SME and Entrepreneurship Policy in the Slovak Republic | en | 

Cooperation Treaty per billion GDP vs the EU average of 3.4. 

OECD. 

53 

EU2020average (1)R&D intensity (GERD as % of GDP)0.611.160.90.920.982.24Public expenditure on R&D as % of GDP0.350.830.410.40.420.73Business enterprise expenditure on R&D (BERD) as % of GDP0.250.320.490.510.561.48Scientific publications of the country within the top 10% most cited publications worldwide as % of total publications of the country 2.93.44.5::9.6PCT (Patent Cooperation Treaty) patent applications per billion GDP (in PPS)0.50.60.58::3.4Public-private scientific co-publications as % of total publications5.85.56.36.96.97.6Public expenditure on R&D financed by business enterprise (national) as % of GDP0.0280.0360.0080.008:0.054New graduates in science & engineering per thousand pop. aged 25-3417.613.18.88.9:16.9Total public sector support for BERD as % of GDP0.030.0340.0650.092:0.204R&D tax incentives: foregone revenues as % of GDP0.000020.0030.0430.06:0.104Share of environment-related patents in total patent applications filed under PCT (%)17.7 20.29 : :14.7Venture capital (market statistics) as % of GDP0.0010.0080.0160.0210.0190.085Employment share of high growth enterprises measured in employment (%)10.19::12.5120222021Slovakia20102015Finance for innovation and economic renewalKey indicators Quality of the R&I systemAcademia-business cooperationHuman capital and skills availabilityPublic support for business enterprise expenditure on R&D (BERD)Green innovation  
 
 
 
  
 
ANNEX 12: INDUSTRY AND SINGLE MARKET 

further  deteriorated.  Higher 

The  competitiveness  of  the  Slovak  economy 
labour, 
has 
production and energy costs, inflation, geopolitical 
tensions, and  specific features  of the structure of 
the  Slovak  economy  and 
its  exports  have 
demonstrated  the  need  to  build  a  resilient 
economic  base  by  addressing 
its  structural 
challenges  in  order  to  stay  competitive  in  the  EU 
IMD  World 
and  global  markets. 
Competitiveness  ranking  2023 (84),  Slovakia  ranks 
53rd  (out  of  69  countries)  and  has  fallen  back  in 
terms  of  overall  performance  by  four  places 
compared  to  2022.  The  data  show  the  biggest 
decline  in  the  economic  performance  indicator, 
placing  Slovakia  in  56th  place  compared  to  52nd 
in 2022 and 42nd in 2019. Slovakia also ranks as 
the  second  last  EU  country  in  the  2023  Global 
Innovation  Index (85)  with  the  weakest  points  in 
business  regulation  and  the  net  inflow  of  foreign 
investments. 

the 

In 

Productivity growth in Slovakia slowed in the 
last decade and remains a key challenge for 
the  Slovak  economy.  Productivity  growth  rose 
during  the  first  decade  of  the  2000s  but  has 
slowed  in  the  last  decade.  The  economic  model, 
which  is  based  on  low  wages  and  high  levels  of 
FDI  (especially  in  the  automotive  sector),  has  lost 
steam  and  Slovakia  has  lost  its  leadership  in 
productivity  among  the  Visegrad  countries  (see 
Graph  A12.1).  Productivity  growth  in  2020-2022 
slowed  to  a  third  of  the  rate  before  the  2008-
2009 
labour 
productivity recovered in 2023 and is expected to 
further  grow  in  2024,  largely  due  to  capital 
deepening  which  has  been  the  most  important 
driver  of  labour  productivity  growth  in  the  last 
decade.  

crisis (86).  However, 

financial 

Long-term structural problems related to the 
quality  of 
the  business  environment, 
education  and  innovation  area,  which  are 
hampering  the  previous  rapid  productivity 
growth,  have  been  accentuated  by  multiple 
crises  (energy,  inflation  and  climate)  over 
the  last  3  years.  The  Slovak  business  sector  is 
dominated  by  microfirms  with  low  productivity, 
limited  personnel  and  limited  ability  to  obtain 
finance  for  automation  and  innovation.  It  lacks 

domestic  productive  enterprises  with  a  high  level 
of  digitisation.  The  productivity  gap  between 
multinational  enterprises  and  domestic  firms 
remains  large.  Slovakia  is  one  of  the  EU  Member 
States  that  is  most  highly  integrated  into  global 
value chains and its output relies to a larger extent 
on  foreign  intermediate  inputs.  Furthermore,  its 
industrial  sector  tends  to  participate 
in  the 
downstream  stages  of  production (87),  which 
partially  explains  why  productivity  growth  has 
slowed. Accelerated digitalisation of SMEs and the 
shift  to  a  knowledge-based  economy  can  lead  to 
improve  Slovakia’s 
higher  productivity  and 
competitiveness. 

Graph A12.1: Labour productivity (GDP per hour 
worked) in PPS (% of EU-27) 

Source: European Commission calculations based on AMECO 

in 

involved 

Slovak firms are significantly lagging behind 
in  innovation  and  R&D  spending.  Only  a  third 
innovation 
of  Slovak  firms  are 
activities,  while  the  EU  average  is  50%.  The 
innovation  gap  also  applies  to  large  companies. 
Only  66%  of  firms  employing  more  than  250 
people  are  engaged  in  innovation  activities  (the 
third  lowest  share  in  the  EU  after  Romania  and 
Hungary). Slovak firms do not innovate because of 
high  costs,  lack  of  qualified  staff  and  high  levels 
of  competition (88).  Moreover,  high 
levels  of 
underachievement  in  basic  skills  in  Slovakia  may 
affect  the  future  skills  supply,  skills  mismatches 
and  overall  productivity  of  the  future  workforce 
(see Annex 15 for PISA 2022 results). 

Industry,  which  is  a  key  pillar  of  the  Slovak 
economy,  is  facing  challenges  related  to  the 
green  transformation,  the  energy  crisis  and 
the  geopolitical  situation;  and 
is 
affecting  its  competitiveness.  Slovakia  is  one 

this 

(84) World Competitiveness Ranking 2023 
(85) Global Innovation Index 2023 
(86) Institute  of  Economic  Analysis  (IHA),  Report  on  Productivity 

(87) IMF country report, June 2022 
(88) National  Bank  of  Slovakia,  July  2023  (Structural  Challenges 

and Competitiveness 2022. 

2023) 

54 

3040506070809000020406081012141618202224% of EU27SlovakiaHungaryCzech RepublicPoland 
 
 
     
 
 
in 

to  20.5% 

the  EU (89). 

of  the  most  industrialised  Member  States.  Its 
industry’s  share  of  added  value  was  25.4%  in 
2022  (%  share  of  total  gross  added  value), 
compared 
Its 
manufacturing added value is 18% of GDP, above 
the EU average of 15%. High energy prices, cheap 
third-country 
state 
support  and  labour  shortages  are  challenging  for 
Slovak  firms,  but  they  see  political  instability  and 
frequent legislative changes as one of the largest 
problems.  The  data  show  that  more  than  76%  of 
businesses rated overall government performance 
negatively  in  2023 and  that  this  was  impacting 
their future growth (90).  

competition, 

insufficient 

in 

increase 

Development 
industrial  sectors 
the 
fluctuated  in  2023.  In  total,  for  the  first  11 
months of 2023, industrial  production dropped by 
0.6%  year-on-year (91).  The  result  was  most 
significantly  affected  by  growth  of  over  5%  in 
manufacture  of  transport  equipment  and  by  a 
6.5% 
in  manufacture  of  electrical 
equipment. However, this did not completely make 
up for the almost 9% decrease in manufacture of 
rubber  and  plastic  products  and  the  decrease  of 
more  than  20%  in  manufacture  of  computer, 
electronic and optical products. The annual growth 
of  producer  prices in  industry  declined  to  8.8% in 
2023 (compared to 29.4% in 2022), thus partially 
reflecting  the  fading  of  the  effects  of  the  supply 
shocks  (including  those  related  to  Russia’s  full-
scale  military  aggression  against  Ukraine). 
However, the production prices of Slovak industrial 
sectors  were  still  50%  higher  than  during  the 
period before the COVID-19 pandemic (92).  

the 

see 

businesses 

Slovak 
green 
transformation  as  an  opportunity.  Slovakia 
has  recognised  e-mobility  and  the  battery 
industry  as  a  new  strategic  sector  for  the 
economy.  All  businesses 
that  operate  car 
factories in Slovakia (or that are in the process of 
setting  them  up)  are  investing  substantially  in 
electromobility.  The  building  of  new  gigafactories, 
which  were  announced  at  the  end  of  2023  and 
beginning  of  2024,  will  boost 
the  entire 
in  Slovakia.  However, 
automotive  ecosystem 
the  Slovak 
supporting 
its  dependence  on  one 
economy  could  end 

the  diversification  of 

(89) Eurostat, June 2023 
(90) 123dopyt.sk (September 2023) 
(91) Statistical Office of the Slovak Republic. 
(92) Eurostat (sts_inpp_a). 

dominant industry and thus reduce its vulnerability 
to supply-chain disruptions and global uncertainty. 

Investment 

in  Slovakia. 

industrial  diversity 

technologies,  which 

Slovakia  could  benefit  from  manufacturing 
green 
is  a  newly 
the 
emerging  and  promising  pillar  of 
domestic  industry.  Several  large  investors  have 
in  recent  years  announced  plans  to  produce  heat 
in  this  new 
pumps 
industrial  segment  and  in  strategic  goods  could 
support the transition towards a net-zero economy 
and  further  strengthen 
in 
Slovakia. The reforms and investments included in 
the  REPowerEU  chapter  of  the  amended  Slovak 
Recovery  and  Resilience  Plan  (RRP)  could  further 
accelerate  manufacturing  of  green  technologies 
and deployment of renewables by streamlining the 
permitting  framework  (e.g. use  of  geothermal 
energy,  heat  pumps,  biomass  and  biomethane). 
Moreover,  the  aim  of  the  new  action  plan  of  the 
2023-2026 National Hydrogen Strategy (93), which 
was approved in June 2023, is to create conditions 
for  investment  in  low-carbon  hydrogen  in  cases 
where  direct  electrification  will  not  be  possible  or 
cost-effective. 

strategic 

dependencies 

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

Slovak  businesses  are  well  integrated  into 
the  single  market  and  global  value  chains. 
Slovakia  is  one  of  the  most  export-oriented 
economies  in  the  world  and  has  the  second 

(93) Action  plan  of  the  National  Hydrogen  Strategy  for  2023-

2026 

55 

 
 
 
highest  share  of  exporting  and  importing  firms  in 
the  EU.  Its  EU  trade  integration  has  been  the 
second  highest  on  average  in  the  last  5  years  in 
the  EU  as  a  share  of  national  GDP (94).  However, 
while  Slovakia’s  economy  has  a  significant 
comparative  advantage  in  the  export  of  vehicles, 
sophisticated  commodity  groups  make  up  only  a 
small  share  of  total  exports.  The  transition  to  an 
economy  with  higher  added  value  and  innovation 
intensity  would  make  the  economy  more  resilient 
and less vulnerable to external shocks. 

(1.1) 

Slovakia  could  further  benefit  from  the 
single market. According to its conformity deficit 
indicator, 
the  percentage  of  all  directives 
transposed  incorrectly  (1.3)  was  above  the  EU 
in  2023.  The  Single  Market 
average 
Scoreboard (95)  also  indicates  scope  for  further 
improvement  regarding  the  number  of  ongoing 
infringement procedures. Slovakia ranks above the 
EU average (31 vs 25.9 for the EU) and delays in 
implementing  single  market 
rules.  However, 
Slovakia  has  performed  better  regarding  the 
transposition  deficit  indicator.  The  percentage  of 
all directives not transposed decreased from 0.9% 
in 2022 to 0.6% in 2023 (below the EU average of 
0.7%).  In  addition, in  2023  Slovakia  solved  100% 
of the SOLVIT cases (37) it handled as lead centre 
(above  the  EU  average  of  88.3%).  Professional 
services 
civil 
engineers,  lawyers,  patent  agents  and  tourist 
guides)  remain  highly  regulated (96).  Reducing 
regulatory  barriers  in  professional  services  can 
promote market entry and may foster competition 
on  quality  and  prices,  as  well  as  productivity 
increases  in  the  regulated  sectors  and  across  the 
industries that they serve (97).  

(e.g. tax  advisers,  architects, 

Slovakia  is  in  the  preliminary  stage  of 
implementing  the  components  needed  to 
connect  to  the  Once-Only  Technical  System 
(OOTS) (98). As part of the Single Digital Gateway 
Regulation (99), 
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 

the  system  will  enable 

(94) Eurostat: BOP_C6_A. 
(95) Single Market Scoreboard 2023. 
(96) Communication on updating the reform recommendations for 

regulation in professional services, COM(2021)385 

(97) OECD – impact of the 2022 RRP on PMR.pdf. 
(98) Regulation (EU) 2022/1463. 
(99) Regulation (EU) 2018/1724. 

Slovak  competent  authorities  is  crucial  for  the 
system  to  function  smoothly  and  to  reduce 
administrative burden.  

to 

stakeholder 

consultations 

Slovakia’s business environment is improving 
to  some  extent,  but  challenges  persist.  Over 
the  last  few  years,  several  RRP  measures  have 
been  introduced  to  reduce  regulatory  burden  on 
businesses.  These  measures  include:  (i) ex  ante 
evaluation  of  planned  transposition  of  legislation 
to  prevent  unjustifiable  gold  plating;  (ii) ex  post 
evaluation of the effectiveness and justification of 
already introduced regulation; (iii) the ‘one-in-two-
out’ rule that ensures that new legislation does not 
increase  administrative  costs  for  businesses;  and 
(iv) three  packages  of  individual  measures  based 
simplify 
on 
administrative  requirements  to  businesses.  The 
reforms  have  high  potential, 
if  consistently 
applied, 
competitive  business 
to  build  a 
in  Slovakia.  However,  the  data 
environment 
show (100) that the most significant obstacle to the 
functioning and further growth of the Slovak firms 
is  the  tax  wedge  for  businesses  (71.5%  of  SMEs 
view this  as  a  serious  or decisive  obstacle).  SMEs 
view  instability  and  ambiguity  of  laws  and  legal 
regulations as the second most serious or decisive 
obstacle to running a business in Slovakia (67.2% 
of  SMEs).  A  systematic  legislative  process  and 
reduction  of  excessive  regulatory  burden  would 
improve 
the  business  environment,  helping 
businesses to better plan their investments,  make 
progress with the digital  and green transition and 
remain competitive.  

Slovakia  has  reported  the  most  bankruptcy 
declarations in the EU in recent years. During 
the  last  5  years  the  number  of  bankruptcy 
declarations  was  on  average  288%  times  higher 
than  in  2015,  compared  to  6.37%  in  the  EU  (see 
Graph  A12.2).  Bankruptcy  declarations  in  Slovakia 
were  204.3%  higher  in  2023  than  in  2015 
(compared  to  an  EU  average  of  5.6%).  Liquidity 
measures  decreased  the  number  of  bankruptcies 
during  the  COVID-19  pandemic  crisis,  but  costly 
and  lengthy  insolvency  procedures  further  hinder 
resource 
the 
insolvency  framework  are  planned  in  Slovakia’s 
RRP.  The  RRP  reform  aims  to  harmonise  the 
insolvency  framework,  including  early  warning 

Improvements 

reallocation. 

to 

(100) Opinions  of  SMEs  on 

the  quality  of 

the  business 

environment in Slovakia. Slovak Business Agency, 2023. 

56 

 
 
 
tools  and  insolvency  specialisation  in  business 
courts.  

Graph A12.2: Bankruptcy declarations, 2018-2023, 
5-year average 

wrong  (the  EU  average  is  40%).  ‘Unpredictable, 
conduct  and 
non-transparent  administrative 
difficulty in challenging administrative decisions in 
court’, ’frequent changes in legislation or concerns 
about  quality  of  the  law-making  process’  and 
in  obtaining  fair  compensation  or 
’difficulty 
protecting  property’  are  the  main  reasons  for 
respondents’  concerns  about  the  effectiveness  of 
investment protection. 

Source: Eurostat 

Late  payments  continue  to  be  a  serious 
structural issue. 56% of SMEs have experienced 
late payments in the last 6 months (above the EU 
average of 49%) (101). Excessive payment delays in 
the  public  health  sector  (the  average  payment 
time  at  the  end  of  2022  was  232  days (102)  – 
almost  four  times  the  exceptional  period  of  60 
days  set  out  in  the  Late  Payment  Directive) 
competitiveness  and 
the 
considerably 
resilience of Slovak SMEs. 

limit 

Public  and  private  investments  represent  a 
challenge  to  –  but  also  untapped  potential 
for  –  further  economic  growth  in  Slovakia. 
The low volume of public investment is one of the 
reasons  for  economic  stagnation.  The  EU  funds 
play  an  important  role,  complementing  domestic 
investment  and  giving  the  economy  a  significant 
development 
public 
investment  stood  at  just  under  4%  of  GDP,  lower 
than  in  the  other  Visegrad  Four  countries (103).  In 
Slovakia, public investment from the State budget 
has fallen continuously over the last two decades. 
Moreover, a Eurobarometer survey (104) shows that 
63% of surveyed investors are either fairly or very 
unconfident that their investment will be protected 
by  Slovakia’s  law  and  courts  if  something  goes 

In  2011-22, 

impetus. 

(101) SAFE Survey 2023 
(102) GROW  monitoring  report  (February  2023).  The  Commission 
decided to refer Slovakia to the Court of Justice of the EU in 
April 2023. Case C-412/23 is still with the Court. 

(103) National Bank of Slovakia, July 2023 
(104) Perceived  independence  of  the  national  justice  systems  in 
the  EU  among  companies  -  Eurobarometer  survey  2024 
(europa.eu) 

to 

barriers 

long-term 

Energy costs, availability of skilled staff and 
uncertainty  about  the  future  remain  the 
private 
main 
investment.  Slovakia  is  one  of  the  few  EU 
Member  States  where  private  investment  levels 
decreased  between  the  first  quarter  of  2023  and 
the  fourth  quarter  of  2019.  Slovakia’s  average 
share  of  intangible  assets  was  the  lowest  in  the 
EU in 2022. The share of firms facing an increase 
of 25% or more in energy spending was one of the 
highest (105). 

Access  to  finance  (both  loans  and  equity) 
continues  to  be  underdeveloped  and  to 
hamper investment. The percentage indicator for 
rejected or refused loans decreased between 2023 
(16.7%)  and  2021  (26.3%).  It  remains  weak  and 
the  EU  average  of  10.2% (106). 
well  above 
Slovakia’s performance in the equity index reached 
the  lowest  level  in  the  EU  in  2022  (0.05  in 
Slovakia vs  0.17  in  the  EU).  Financial  instruments 
under the Slovak RRP are intended to increase the 
share  of  innovative  businesses  and  investment  in 
companies  with  technological  and 
innovative 
potential,  but  more  needs  to  be  done  to  further 
for 
promote 
entrepreneurs  (especially  SMEs  and  innovative 
firms). 

availability 

finance 

the 

of 

as 

fair 

ensuring 

Challenges  persist  with  the  implementation 
of  the  main  public  procurement  objectives, 
such 
competition, 
transparency and digitalisation.  Progress was 
made  in  professionalising  public  procurement  in 
2023,  partly  due 
the  establishment  of 
comprehensive training methods and programmes. 
These  efforts  could  help  the  procurement  system 
to  deliver  efficiency  and  value  for  money.  The 
strategic  role  of  public  procurement 
in  the 
achievement  of  different  policy  objectives  related 
innovation  and  social 
to 

the  environment, 

to 

(105) EIB Investment Survey 2023 
(106) SAFE survey 2023. 

57 

050100150200250300350400450CyprusLatviaPortugalNetherlandsLithuaniaItalyRomaniaPolandFranceGermanyEU27BelgiumSloveniaLuxembourgHungaryBulgariaMaltaSpainCroatiaDenmarkSlovakiaAustriaCzechiaFinlandGreeceIrelandSwedenBankruptcy declarations 5-year averageEU average 
      
 
 
below the EU average of 32%) and Slovakia is one 
of  the  four  lowest-ranking  EU  Member  States  for 
this indicator. 

in  2023(107).  Furthermore,  the 

considerations is recognised; and efforts are being 
made  to  promote  and  support  the  use  of  public 
procurement  as  a  strategic  governance  tool. 
However, Slovakia’s contracting authorities still do 
not  benefit  from  a  strategic  use  of  public 
procurement  in  practice.  The  level  of  use  of  the 
lowest  price  criteria  to  award  contracts  remained 
96% 
lack  of 
competition  in  the  public  procurement  market 
remains an issue, because the proportion of public 
contracts awarded in procedures where there was 
just  one  bidder  increased  once  again  to  33%  in 
2023 (30% in 2022). Moreover, Slovakia currently 
lacks  a  strategy  for  digitalisation  of  public 
improve 
procurement 
their 
to 
transparency  and  speed  up 
the  procedures. 
Ensuring  fair  competition and  full  transparency  in 
public  procurement  will  be  key  to  enhancing  the 
effectiveness  and  efficiency  of  government 
spending. 

processes 

There 
is  untapped  potential  to  further 
innovate  and  digitalise  the  economy  and 
increase  productivity.  Slovakia  is  an  Emerging 
Innovator with a performance of 65.6% of the EU 
average (108).  Areas  of  weakness 
(e.g. R&D 
expenditure  in  the  business  sector,  government 
support  for  business  R&D,  and  venture  capital 
expenditure) are at the level of one third of the EU 
average  (Annex  11).  Slovakia  could  benefit  from 
joining the Unitary Patent system (109). The system 
entered into force in June 2023 with the objective 
of  reducing  complexity  and  costs  for  companies. 
According to the European Patent Office, Slovakia 
has one of the lowest levels of patent applications 
in  the  EU.  17  out  of  49  patent  applications  were 
granted in 2022 (110). 60% of Slovak SMEs have at 
least  a  basic  level  of  digital  intensity,  but  this  is 
below  the  EU  average  of  69%  (and  the  2030  EU 
target  of  90%,  which  was  established  by  the 
digital decade policy programme) (111). Only 6% of 
enterprises 
in  2020 
(significantly  below  the  EU  average  of  14%).  The 
uptake of e-invoicing for automated processing is 
very  low  in  Slovakia.  17%  of  enterprises  reported 
that they had sent e-invoices in 2020 (significantly 

analysed 

data 

big 

(107) 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. 

(108) European Innovation Scoreboard 2023 
(109) Unitary Patent system 
(110) https://www.epo.org/en/about-us/statistics/statistics-

centre#/countrydashboards 

(111) Digital Decade Country Report 2023. 

58 

 
 
Table A12.1:Industry and the Single Market 

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

59 

POLICY AREAINDICATOR NAME20192020202120222023EU27 average*Net Private investment, level of private capital stock, net of depreciation, % GDP14.11.722.643.8Net Public investment, level of public capital stock, net of depreciation, % GDP10.50.30.101.91.2Real labour productivity per person in industry (% yoy)29.2-8.713.6-2.66.4-1.24Cost competitivenessNominal unit labour cost in industry (% yoy)2-3.811.1-69.32.79.83Single Market integrationEU Trade integration, % (Average intra-EU imports + average intra EU exports)/GDP267.362.067.574.066.342.9Transposition deficit, % of all directives not transposed30.21.41.40.90.60.7Conformity deficit, % of all directives transposed incorrectly30.91.11.31.41.31.1SOLVIT, % resolution rate per country375.0100.0100.0100.0100.088.3Number of pending infringement proceedings3272727273125.9RestrictionsEEA Services Trade Restrictiveness Index40.040.040.040.040.040.05Single bids, % of total contractors3252627303328.6Direct Awards, %3653538.1Material Shortage (industry), firms facing constraints, %59.08.823.331.814.317.2Labour Shortage using survey data (industry), firms facing constraints, %526.513.823.027.026.023.3Vacancy rate, % of vacant posts to all available ones (vacant + occupied)20.9750.70.70.90.92.5Concentration in selected raw materials, Import concentration index based on a basket of critical raw materials60.20.230.240.250.310.22Installed 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 obstacle725.921.122.414.019.022.2Bankruptcies, Index (2015=100)2606.3411.9352.9264.2304.3105.6Business registrations, Index (2015=100)2143.0138.7143.2119.5130.6120.2Payment gap - corporates B2B, difference in days between offered and actual payment8-1413121515Payment gap - public sector, difference in days between offered and actual payment8-1610131816Share of SMEs experiencing late payments in past 6 months, %954.350.845.655.155.748.7EIF Access to finance index - Loan, Composite: SME external financing over last 6 months, index values between 0 and 1100.320.300.340.33-0.49EIF Access to finance index - Equity, Composite: VC/GDP, IPO/GDP, SMEs using equity, index values between 0 and 110 0.070.070.050.05-0.17SlovakiaHEADLINE INDICATORSEconomic StructureSINGLE MARKETCompliancePublic procurement ECONOMIC STRUCTUREShortagesStrategic dependenciesBUSINESS ENVIRONMENT - SMEsBusiness demographyLate paymentsAccess to finance 
 
   
 
ANNEX 13: PUBLIC ADMINISTRATION 

Slovakia’s  public  administration  is  essential 
for  the  economy’s  competitiveness  by,  in 
particular,  shaping  the  conditions  for  the 
twin  transitions  and  creating  a  favourable 
business environment. The overall perception of 
government effectiveness in Slovakia is below the 
EU  average  and  is  decreasing  (Graph  A13.1).  The 
recovery  and 
(RRP)  contains 
resilience  plan 
substantial  reforms  to  improve  administrative 
performance  although  implementation  is  delayed 
due to recent political instability.  

Graph A13.1: Government effectiveness 

were  sponsored  by  Parliament,  and  others  went 
through  the  fast-track  procedure  without  being 
preceded by impact assessments. 

Administrative  capacity  continues  to  be  a 
challenge. Reversing past changes in civil service 
legislation  has  had  negative  results,  such  as  the 
impact  of  political  instability  on  staffing  and 
recruitment  decisions  made  directly  by  ministers. 
Although  gender  parity  in  senior  civil  service 
positions  is  higher  than  the  EU  average  (Table 
A13.1),  this  is  not  the  case  for  top-level  political 
positions:  only  3  out  of  16  ministers  and  only  33 
out of 150 Members of Parliament are women. 

Slovakia ranks below the EU average for the 
maturity  of  open  data  and  the  maturity  of 
digital  public  services  (Table  A13.1).  Local 
governments have struggled to fully implement e-
government  regulations  to  improve  the  quality  of 
the  high 
service  provision,  especially  given 
percentage  of  people  with  a 
internet 
connection or no connection at all. 

low 

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 
Slovakia (EU countries are ranked in terms of their GDP per 
head and grouped into three equally sized clusters). 
Source: Worldwide Governance Indicators. 

levels 

Given  the  very  fragmented  governance 
system,  efficient  coordination  across  the 
different  governance 
remains  a 
it  more  difficult  to 
challenge,  making 
implement  policies  and  investment  projects. 
Although  there  have  been  government  proposals 
aimed  at  addressing  territorial  fragmentation 
across  regional  and  local  governments,  they  have 
not 
led  to  any  specific  plans.  Tackling  this 
fragmentation would help improve the provision of 
local  public  services  and  strengthen  the  financial 
autonomy of local and regional governments. 

There  is  room  for  improvement  in  evidence-
based  policy-making.  In  central  government,  ex 
ante  impact  assessments  are  frequently  skipped, 
e.g.  using  fast-track  legislative  procedures.  For 
example,  67  out  of  107  approved  laws  in  2023 

has 

level 

through 

improved 

Slovakia  has  reformed  the  assessment, 
selection and budgeting of public investment. 
However,  monitoring  and  ex-post  assessment  of 
projects  continue  to  be  weak.  Project  selection  at 
a 
ministry 
methodology for the preparation and evaluation of 
including 
investment  projects, 
role  of 
the 
In  addition,  all  central 
investment  strategies. 
government 
investment  projects  above  EUR 1 
million  must  be  submitted  to  the  Ministry  of 
Finance for evaluation. For projects above EUR 40 
are 
million,  mandatory 
published,  which  has  significantly 
increased 
transparency.  Since  2021,  only  evaluated  and 
prepared  projects  can  be  included  in  the  budget. 
By  contrast,  there  is  no  methodology  for  central 
monitoring besides of beneficiaries, and there are 
no systematic ex post reviews or asset registers.  

feasibility 

studies 

There  is  room  for  strengthening  Slovakia’s 
independent fiscal institution to help address 
fiscal     challenges, by  for  example,  stepping  up 
policy  dialogue  with  the  government,  interactions 
with parliament and broadening its mandate to do 
ex post assessments of forecasts. 

Slovakia  continues  to  struggle  absorbing 
cohesion  funds.  The  government  continues  its 
efforts  to  streamline  implementation  of  cohesion 
funds, 
including  through  a  Technical  Support 
Instrument project. 

60 

-0.4-0.20.00.20.40.60.81.01.2SKEU-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 (including for cross-border services) and transparency of digital public services as well as 
the existence of key enablers for the provision of those services. (4) Defined as the absolute value of the difference between the 
percentage of men and women in senior civil service positions. 
Flags: (b) break in time series; (d) definition differs; (u) low reliability. 
Source: 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). 

are 

about 

concerns 

judicial 
There 
independence  and  the  effectiveness  of  the 
law enforcement system in Slovakia. In 2022, 
the  estimated  time  for  resolving  administrative 
cases at first instance (648 days) was one of the 
highest  in  the  EU,  even  though  it  had  fallen 
compared to previous years. There is a good level 
of  digitalisation  in  the  justice  system,  especially 
for  civil,  commercial,  and  administrative  cases. 
However, 
judicial 
there  are  concerns  about 
independence, regarding the lack of safeguards in 
the  dismissal  procedure  of  the  non-peer  elected 
members of the Judicial Council, as well as recent 
statements  made  by  Government  representatives 
criticising specific judges, including representatives 
of  the  highest  courts.  Serious  concerns  also 
continue to prevail  about the effectiveness of the 
fight against corruption, linked to the discretionary 
power  of 
to  annul 
the  Prosecutor-General 
investigations  of  high-level  corruption  cases,  the 
recent  dissolution  of  the  Special  Prosecutor’s 
Office as a specialised entity in fighting high-level 
corruption, and the envisaged de facto elimination 
tackling 
of 

the  police  force  specialised 

in 

corruption  (NAKA).  The  subsequent  transfer  of 
prosecutors’  case  files  has  raised  concerns  as  to 
the  lack  of  rules  for  the  handover  to  new 
prosecutors  and  the  lack of  safeguards  to  ensure 
the  effective  investigation  and  prosecution  of 
high-level corruption crimes (112). 

(112) For a more details, see the 2024 EU Justice Scoreboard and 

the 2024 Rule of Law Report (forthcoming). 

61 

SK20192020202120222023EU-27(2)1n/an/an/a81.680.575.02n/a60.659.862.464.275.830.30.50.50.60.90.8442.845.252.2 (b)51.053.152.956.93.26.1 (b)22.2 (b)15.717.965.65.60.46.01.69.272.22.02.0 (b)2.42.11.580.80.80.80.8n/a0.791.31.31.31.3n/a1.410n/an/a1.98n/an/a1.7Strength of fiscal rules indexEvidence-based policy makingRegulatory governanceMedium-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  
 
 
 
 
 
          
 
FAIRNESS 
ANNEX 14: EMPLOYMENT, SKILLS AND SOCIAL POLICY CHALLENGES IN LIGHT OF 
THE EUROPEAN PILLAR OF SOCIAL RIGHTS 

States  in  the  2023  EU  Gender  Equality  Index, 
scoring  only  59  points  out  of  100  (vs  an  EU 
average of 70). 

Table A14.1:Social Scoreboard for Slovakia 

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

regards 

The  Slovak  labour  market  continued  its 
recovery  in  2023,  but  several  challenges 
persist,  notably  as 
long-term 
unemployment.  The  employment  rate  reached 
77.5% in 2023, surpassing both the EU average of 
75.3%  and  the  national  target  for  2030  (76.5%). 
Although  the  2023  unemployment  rate  of  5.8% 
was  slightly  below  the  EU  average  (6.1%),  long-
term  unemployment  remains  a  significant  issue, 
with two-thirds of jobseekers categorised as long-
term unemployed in 2022 (and 3.8% of the active 
population  aged  15-74  in  2023).  In  terms  of 
employment,  Slovakia  stands  out  because  of  its 
marked  regional  disparities  (see  Annex  17  for 
more details).  

or 

and 

personal 

Slovakia’s  high  share  of  dependent  self-
employed persons creates significant risks of 
poor  working  conditions  and  so-called  bogus 
self-employment.  Slovakia  has  the  EU’s  highest 
share  of  self-employed  people  who  display  both 
economic 
organisational 
characteristics  of  dependency (113).  According  to 
the  Slovak  Supreme  Audit  Office,  bogus  self-
employment in Slovakia has risen from 84 000 to 
nearly  110  000  people  in  the  past  decade.  Since 
self-employed  people  can  opt  out  of  social 
security  contribution  schemes  and  pay  six  times 
less in tax and social security contributions during 
their  first  year  of  activity  and  2.3  times  less  in 
subsequent years compared to other workers, this 
has  a  significant  impact  on  the  state’s  taxation 
and social security revenue. 

The  disparity  in  earnings  between  men  and 
women  remains  a  persistent  feature  of  the 
Slovak 
terms, 
Slovakia ranks among the lowest-scoring Member 

labour  market. 

In  general 

(113) European Labour Authority, February 2023, Study-on-the-
extent-of-dependent-self-employment-in-the-EU.pdf 
(europa.eu) 

62 

(1) Update of 25 April 2024. 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 

In  2022,  the  gender  pay gap  in  Slovakia  stood  at 
17.7% (increasing from 16.6% in 2021), although 
the share of women completing tertiary education 
remained  higher  than  the share  of  men.  In  2023, 
the  gender  employment  gap  was  7.7  percentage 
points (pps) (EU: 10.2 pps). 

lack  of  places  available 

The 
in  early 
childhood  education  and  care  remains  a 
significant  challenge.  The  difficulties  related  to 
the  participation  of  women  in  the  labour  market, 
especially those with young children, are primarily 
attributed  to  the  limited  availability  of  places  in 
good  quality  and  affordable  early  childhood 
education  and  care  (ECEC)  facilities.  Slovakia  has 
the EU’s lowest enrolment rate of children under 3 
years of age in formal childcare, at 2.3% in 2022 
(and  dropping 
is 
significantly  below  the  EU  average  of  2022 
(35.9%).  This  situation  is  also  due  to  a  wide-

in  2023),  which 

to  1% 

49.56.451.311.27.73.177.55.83.8124.416.524.733.82212.52.32.8Critical 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) 
 
 
 
 
   
 
 
spread  negative  perception  of  ECEC  and  to  the 
system  of  parental  leave  and  parental  allowance 
for children up to 3 years of age, which dissuades 
people  from  using  ECEC  to  return  to  work.  To 
improve  the  overall  situation,  Slovakia  should 
make full use of its ESF+ and ERDF allocations to 
create  new  and  affordable  places  (also  from  the 
cost-benefit  perspective)  for  children  aged  0-3 
that would meet a high standard of quality. 

the 

and 

challenges 

in  adult 

There  is  a  positive  trend  of  increasing 
participation 
learning,  but  a 
relatively  high  rate  of  young  people  not  in 
employment,  education  or  training  (NEETs) 
may  aggravate  existing  skills  gaps  and 
affect labour market outcomes.  Together with 
under-
demographic 
representation  of  various  groups  on  the  labour 
market,  this  also  undermines  Slovakia’s  potential 
to  increase  its  economic  competitiveness.  The 
youth  unemployment  rate  in  Slovakia  was  19.8% 
in  2023  remaining  above  the  EU  average  of 
14.5%. The NEET rate fell to 11.2% in 2023, which 
corresponds  to  the  EU  average.  However,  the 
unemployment rate of low-skilled young people at 
the level of 46.5 % is too high when comparing to 
the EU average (26.5 % in 2016) (114).  The Youth 
in  Slovakia  was  only  partially 
Guarantee 
successful (115).  The  planned  adoption  of  the  life-
long  learning  Act  is  crucial  for  the  promotion  of 
adult learning to maintain the positive trend of the 
last  12  months.  Participation  in  adult  learning 
reached  a  level  of  49.5%  in  2022 (116),  almost 
reaching the national target of 50% and exceeding 
the  2016  level  (42.6%).  Slovakia  is  using  ESF+ 
funding  to  strengthen  cooperation  between  the 
Sectoral  Councils  to  increase  the  demand  for 
knowledge  and  skills,  and 
increasing  the 
incentives for additional upskilling and reskilling of 
young people and adults. 

is 

Slovakia performs well in reducing the share 
of  people  at  risk  of  poverty  or  social 
exclusion  (AROPE),  however  there  are  large 
regional  disparities  and  the  increased  share 
of  children  at  risk  requires monitoring.  While 

(114) EACEA, YouthWiki retrievable at https://national-

policies.eacea.ec.europa.eu/youthwiki/chapters/slovakia/31-
general-context    

significant 

remaining  relatively  low,  Slovakia’s  AROPE  rate 
continued  to  increase  reaching  17.6%  in  2023 
in  2022  vs  21.6%  EU  average). 
(16.5% 
Nevertheless, 
regional  disparities 
persist.  In  particular,  the  eastern  part  of  the 
country  has  higher  levels  of  poverty  and  social 
exclusion (117).  Minimum  income  adequacy,  which 
is  measured  as  a  share  of  the  national  poverty 
threshold,  is  still  well  below  the  EU  average  in 
2021 (28.4% vs 58.9% in the EU). The significant 
rise  in  the  rate  of  children  at  risk  of  poverty  or 
social exclusion, from 19.7% in 2021 to 24.7% in 
2022, is a cause for concern (118). More efforts are 
needed  to  address  the  challenges  related  to  child 
poverty  and  early  childhood  education  and  care 
services,  as  well  as  to  implement  the  European 
Child Guarantee recommendation. 

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

(1) Adult Education Survey, special extraction: 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 

in 

remain 

especially 

Significant  gaps 
the  social 
inclusion  of  the  Roma  population  and  in 
getting  more  Roma  people  into  work  or 
education, 
in  marginalised 
communities.  The  underlying  challenges  are 
complex,  ranging  from  a  lack  of  employment 
opportunities,  generalised  discrimination,  social 
exclusion  and  a  high  probability  of  early  school 
leaving, to the inaccessibility of basic services such 
as  water,  sanitation  or  adequate  housing.  The 
from  marginalised 
share  of  young  Roma 
communities  who  are  not 
in  employment, 
education or training is 67%, compared to 12% of 
the general population in the same age group (16-

(115) National plan for strengthening the Youth Guarantee in the 

(117) The rate in Eastern Slovakia was 23.1% in 2022, while in 

Slovak Republic with a view until 2030 

Western Slovakia it was 12.6%. 

(116) Formal and non-formal education and training (excluding 

(118) Proposal for a Joint Employment Report 2024 - Publications 

guided on-the-job training) 

Office of the EU (europa.eu). 

63 

IndicatorsLatest dataTrend            (2016-2022)2030 targetEU target 77.5(2023)49.5(2022)93(2022)Poverty reduction2 (thousands)-70-15,000Employment (%)76.578Adult learning1 (%)5060 
 
 
  
 
 
24) (119).  Despite  some  recent  progress (120),  equal 
access  to  quality  education  represents  a  major 
shortcoming.  Roma  children  also  have  a  much 
lower  participation  rate  in  pre-primary  education 
compared to the overall population (121). The most 
serious  challenge  is  the  over-representation  of 
Roma  pupils  in  schools  for  children  with  special 
educational  needs  and  in  classes  for  pupils  with 
mental health issues or other disabilities (122).   

(119) Markovič, F. & Plachá, Ľ. (2022). Príjmy a životné podmienky 
v  marginalizovaných 
komunitách:  Vybrané 
rómskych 
ukazovatele zo zisťovania EU SILC_MRK 2020 retrievable at 
https://www.romovia.vlada.gov.sk/site/assets/files/1563/anal
yticka_sprava_eu_silc_mrk_2020_elektronicka_final.pdf  

(120) For example, adoption of a new definition of the concept of 
special  educational  needs,  and  the  introduction  of  a  new 
model  of  support  measures  for  a  child  experiencing 
obstacles to access education. 

(121) Barbora  Holubová  (CELSI)  for  the  European  Centre  of 

Expertise, January 2024. 

(122) Education and Training Monitor 2023. 

64 

 
 
ANNEX 15: EDUCATION AND TRAINING 

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

the 

The  PISA  2022  showed  highly  concerning 
results  for  Slovakia 
indicating  that  the 
quality  of  education  remains  a  challenge. 
Underachievement  increased  in  all  three  tested 
areas  between  2018-2022  -  in  mathematics  (by 
8.1 pps),  in  reading  (by  4 pps),  and  in  science  (by 
1.3  pps)  -  and  remains  above  the  EU  averages, 
although  they  also  increased  (by  6.6 pps,  3.7 pps 
and  2 pps  respectively)  (see  Graph  15.1).  In 
mathematics, 
share  of  underachieving 
students was 33.2% (vs 29.5% in the EU) in 2022, 
and  the  share  of  top  performers  dropped  by 
3.4 pps to 7.3% (vs 7.9% in the EU). In reading, the 
share  of 
increased 
low-performing  students 
significantly  (by  7.2%  to  35.4%  during  2012-
2022),  while  the  share  of  top  performers  was 
among  the  lowest  in  the  EU  in  2022  (3.4%  in 
Slovakia vs 6.5% in the EU). In science, the share 
of  underachieving  students  increased  since  2012 
by 3.8 pps and is now well  above the EU  average 
(30.6%  in  Slovakia  vs  24.2%  in  the  EU  in  2022). 
Since  2018, the  share  of top  achievers  in  science 
remained  relatively  stable  but  it  is  below  the  EU 
average (4.3% in Slovakia vs 6.9% in the EU). 

High  inequalities  persist  in  education.  Socio-
economic  background  is  a  strong  predictor  of 
performance. In 2022, 62.6% of the students from 
disadvantaged  backgrounds  in  Slovakia  did  not 
obtain  a  basic  level  in  mathematics  (EU  48%) 
compared with 12.1% of advantaged students (EU 
10.9%).  Underachievement  is  higher  among  boys 
than  girls  in  reading  (gender  gap  is  11.9 pps  in 
Slovakia  vs  8.9  pps  in  the  EU)  and  in  science 
(4 pps in Slovakia vs 2.7 pps in the EU), while there 
is just a slight difference (2 pps vs 1 pp in the EU) 
in  mathematics.  While  school  closures  during  the 
COVID-19  pandemic  might  have  played  a  role  in 
declining  performance,  other  factors  are  also 
linked to this, including long-term underfunding for 
education, 
the 
attractiveness  of  the  teaching  profession (123).  
While  the  inclusion  of  learners  with  special  needs 
into  mainstream  schools  has  been  improving,  the 
education  system  does  not  seem  to  be  able  to 
(and  the  schools). 
sufficiently  support  them 

shortages 

teachers’ 

and 

Moreover,  the  rate  of  children  living  in  severe 
material  and  social  deprivation  increased  from 
7.9% in 2018 to 10.8% in 2022 and is now above 
the EU average (8.4%, see Annex 14) (124).  

their 

the 
high 

Young  Slovak  students  lack  basic  skills, 
which  negatively  affects 
future 
country’s 
and 
employability, 
of 
A 
competitiveness. 
underachievement  in  basic  skills  directly  affects 
the  country’s  future  supply  of  skills,  leading  to 
possible  skills  mismatches.  This  will  have  a 
impact  on  overall  productivity  and 
negative 
competitiveness  (Annex  12),  as  well  as  the 
(already limited) innovation capacity (Annex 11). 

level 

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

Source: OECD (2023). 

Slovakia faces teacher shortages (125), mainly 
in larger cities. Teachers’ salaries are below that 
of  other  tertiary-educated  workers  (0.8  at  upper 
secondary  level  (OECD,  2023)).  Regional  top-up 
contributions  to  the  salaries  and  non-financial 
contributions  to  teachers  are  being  considered, 
while  negotiations  with  social  partners  continue. 
Moreover, there is scope to enhance attractiveness 
by  improving  the  quality  and  focus  of  teaching 
professionals’  education  and  training,  and  by 
increasing  the  availability  of  teaching  assistants 
and peer-learning and mentoring opportunities. 

a 

recent 

Despite 
policy 
development, participation in early childhood 
education (ECE) remains among the lowest in 
the  EU.  In  2022,  the  ECE  rate  was  77.4%  (vs 

favourable 

(123) European and Training Monitor (2023), TALIS (2018) 

(125) European and Training Monitor (2023) 

(124) Eurostat (ilc_mdsd11) 

65 

0510152025303540SKEUSKEUSKEUMathematicsReadingScience%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. 

education. For example, in 2023, the pilot phase 
of  the  new  curricula  began  and  the  School  Act 
amendment  introduced  new  initiatives  aiming  to 
reduce  the  influence  of  pupils’  socio-economic 
background on their performance. The RRP fosters 
inclusive  education  with  a  budget  of  EUR 210 
million. Moreover, the RRP improves the quality of 
education in the components dedicated to primary 
and  higher  education,  with  respectively  a  budget 
of EUR 449 million and EUR 159 million. 

The  tertiary  educational  attainment  rate 
substantially  increased  over  the  last  decade 
but  remains  below  the  EU  average.  From 
26.9%  in  2013  to  39.8%  of  25-34-year-olds  in 
2023  held  a  tertiary  degree,  still  below  the  EU 
average  of  43.1%.  The  gender  gap  is  well  above 
the  EU  average  (17.5 pps  vs  11.2 pps  in  the  EU). 
in  VET 
Participation 
remains  under  the  EU  average,  and  progress  has 
been  made 
lifelong 
in  adult  participation 
learning (Annex 14). 

in  work-based 

learning 

in 

92.5%  in  the  EU)  for  children  from  age  3  to  the 
starting age of compulsory primary education.  

The  inclusiveness  of  education  remains  a 
challenge.  In  2023,  the  European  Commission 
referred Slovakia to the Court of Justice for failing 
to  desegregate  Roma  children  in  education.  The 
proportion  of  early  school  leavers  among  those 
aged 18-24 remains below the EU average (6.4% 
in Slovakia vs 9.5% in the EU in 2023), while early 
school  leaving  is  widespread  among  the  Roma  as 
almost  three  out  of  four  young  Roma  (aged  18-
the  education  system  early (126). 
24) 
Moreover,  a  significant  number  of  children 
displaced  from  Ukraine  are  yet  to  be  enrolled  in 
Slovak schools (127).  

leave 

Slovakia  is  implementing  ambitious  reforms 
to  increase  the  quality  and  inclusiveness  of 

(126) Fundamental Rights Agency (2021) 

(127) Ministry  of  Education,  Research,  Development  and  Youth 
Education  estimates  that  around  30%  of  Ukrainian  children 
(3-17) potentially living in Slovakia are outside of the Slovak 
school education system. 

66 

96%72.3%201391.8%201377.6%92.2%77.4%202192.5%2021,dReading< 15%28.2% 18.0%31.4% 22.5%35.4%202226.2%2022Mathematics< 15%27.5% 22.1%25.1%22.9%33.2%202229.5%2022Science< 15%26.9% 16.8%29.3%22.3%30.6%202224.2%2022< 9 %5.3% 12.6%8.6%10.5%6.4%9.5%Men6.0%14.5%8.3%12.1%6.8%11.3%Women4.6%10.6%8.8%8.7%6.0%7.7%Cities:bu11.2%4.6%u9.4%:u8.6%Rural areas7.8%b14.0%11.5%11.0%8.8%9.9%5By country of birthNative5.3% 11.3%8.5%9.2%6.4%8.2%EU-born:u26.2%:u22.4%:u21.0%Non EU-born:u30.1%:u23.0%:u21.6%6Socio-economic gap (percentage points)42.6:40.429.550.6202237.220227Exposure of VET graduates to work-based learning≥ 60% (2025) ::: :62.1% 64.5%45%27.0%34.1%37.2%38.7%39.8%43.1%Men21.5%29.1%30.0%33.3%31.2%37.6%Women32.8%39.2%44.8%44.2%48.7%48.8%Cities42.5%b43.5%53.7%49.0%60.9%53.3%Rural areas18.7%b24.8%26.2%27.7%30.5%31.7%Native26.9%35.4%37.2%39.7%39.6%44.2%EU-born:u29.3%:u36.7%:u40.2%Non EU-born:u24.2%:u31.0%:u37.1%11Participation in adult learning (age 25-64)≥ 47% (2025) ::42.6%201637.4%201649.5%202239.5%202221.5%201322.7%201324.7%23.8%26.0%202124.5%2021201220182023IndicatorTargetSlovakiaEU-27SlovakiaEU-27SlovakiaEU-271Participation 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 urbanisationTertiary educational attainment (age 25-34)8Total8By gender9By degree of urbanisation10By country of birth12Share of school teachers (ISCED 1-3) who are 55 years or over 
 
 
   
 
ANNEX 16: HEALTH AND HEALTH SYSTEMS 

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

Life expectancy at birth in Slovakia is among 
the  lowest  in  the  EU.  Due  to  the  COVID-19 
pandemic, life expectancy in Slovakia had fallen by 
more  than  3 years  in  2021,  compared  to  2019. 
Life expectancy then rebounded in 2022 almost to 
the  pre-pandemic  level,  as  mortality  from COVID-
19 declined in 2022 (128). However, life expectancy 
in  Slovakia  remains  low  compared  to  other  EU 
countries.  In  2021,  the  leading  causes  of  death 
system 
the 
were  diseases  of 
(‘cardiovascular  diseases’)  followed  by  COVID-19 
and  cancer.  Mortality  rates  from  preventable  and 
treatable  causes  in  Slovakia  are  among  the 
highest  in  the  EU.  At  the  same  time,  mortality  in 
the  economically  active  age  groups,  as  a 
proportion  of  total  mortality  and  relative  to  the 
workforce size, is among the highest in the EU. The 
cancer  mortality  rate  is  one  of  the  highest  in  the 
EU too. 

circulatory 

Graph A16.1: Life expectancy at birth, years 

Source: Eurostat 

spending 

in  Slovakia 

Health 
remains 
significantly  below  the  EU  average.  In  2021, 
Slovakia spent on health (per capita and adjusted 
for differences in purchasing power) less than half 
the  EU  average.  Spending  per  capita  is  below  the 
respective  EU  average 
for  outpatient  care, 
prevention, 
inpatient 
pharmaceuticals  and  medical  devices.  In  nominal 
terms,  Slovakia’s  health expenditure in  2021  rose 

disease 

care, 

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

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

by nearly  17% compared to 2020, accounting for 
7.8% of GDP (EU average: 10.9%). Provisional data 
from  the  OECD  suggest  that  in  2022  total 
healthcare  spending  remained  at  7.8%  of  GDP. 
Based on the age profile of the Slovak population, 
public  spending  on  health  is  projected  to increase 
by  1.2 percentage  points  (pps)  of  GDP  by  2070, 
compared  to  0.6 pps  for  the  EU  overall,  raising 
significant  fiscal  sustainability  concerns  over  the 
medium  and  long  term  (see  Graph  16.2  and 
Annex 21). 

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

Baseline scenario 
Source: European Commission / EPC (2024) 

Spending  on  prevention  remains  among  the 
lowest  in  the  EU.  Between  2019  and  2021, 
spending on prevention in Slovakia as a proportion 
of total health expenditure increased from 0.8% to 
1.6%. Despite this increase, Slovakia was still one 
of  the  few  EU  countries  that  allocated  less  than 
3%  of  total  healthcare  spending  to  preventive 
measures in 2021, against  an EU average of 6%. 
Between  2019  and  2021,  budget  shares  for 
prevention  across  the  EU  increased  most  for 
response,  disease  detection  and 
emergency 
immunisation 
low 
spending on prevention raises questions about the 
preparedness  of  the  health  system  for  possible 
future public health crises. 

programmes. 

Slovakia’s 

Slovakia  has  a  long-standing  shortage  of 
doctors and nurses. Slovakia has a slightly lower 
density  of  doctors  and  a  substantially  lower 
density of nurses than the EU overall. The number 
of active doctors per 1 000 population in Slovakia 
(3.7)  remained  below  the  EU  average  (4.1)  in 
2021.  Shortages  are  linked  to  the  age  profile  of 
doctors and migration. Approximately one third of 
doctors are aged 55 or over, which raises concerns 
about  future  shortages.  The  moderate  rise  in  the 
number  of medical  graduates  in  recent  years  has 
in  mitigating  the 
impact 
had  some  positive 

67 

77.377.477.877.074.677.080.981.081.380.480.180.6201720182019202020212022SlovakiaEU6.66.10.61.202468EUSlovakia% 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. 

the 

shortage  of  doctors,  but  no  further  increases  are 
anticipated. More than 40% of medical students in 
Slovakia  come  from  abroad  but  then  return  to 
their  home  country  or  migrate  to  other  EU 
countries  to  complete  specialty  training  or  work, 
and  are  therefore  not  adding  to  Slovakia’s  health 
workforce. The number of nurses has been stable 
last  decade,  with  5.7 nurses  per 
over 
1 000 population in 2021, much lower than the EU 
average (7.9). The low density of nurses is due to 
migration  and  a  reduction  in  the  numbers  of 
nursing  graduates.  Both  issues  are  related  to  the 
unattractiveness  of  the  nursing  profession  as  a 
result  of  low  wages,  long  working  days  and  low 
prestige. Strikes at the end of 2022 led to marked 
pay increases for health workers, including nurses. 
The  recent  hike  eliminated  health  workers’  pay 
differentials  with  neighbouring  countries  but  did 
not  address  major  issues  relating  to  working 
conditions.  Increasing  the  attractiveness  of  the 
nursing  profession  and  staff  retention  are  key  to 
addressing current shortages. 

in 

in  the 

instance, 

terms  of 

investment 

EU  funds  support  substantial investments  in 
healthcare in Slovakia. Historically, Slovakia has 
lagged  behind 
in 
healthcare. Among EU countries, it has invested a 
comparatively  low  percentage  of  GDP  in  gross 
capital  formation  in  healthcare.  This  is  reflected, 
for 
low  availability  of  key 
diagnostic technologies (notably medical imaging). 
Slovakia  allocated  a  large  share  of  its  recovery 
and resilience plan (RRP) to investments in health. 
Specifically,  EUR 1.15 billion  (18%  of  the  RRP’s 
total  value)  will  be  invested  in  the  physical  and 
digital  infrastructure  of  the  Slovak  health  system 
to  improve  its  quality,  accessibility  and  efficiency. 
The RRP includes investments in hospitals (such as 

records  online 

focuses  on  health 

buildings  and the modernisation  of  equipment)  to 
support  the  optimisation  of  the  hospital  network. 
The  RRP  also 
sector 
care  and  mental 
digitalisation,  emergency 
healthcare.  These  investments  may  help  Slovakia 
to  overcome  the  low  uptake  of  digital  health 
solutions.  For  example,  the  number  of  individuals 
in 
accessing  personal  health 
Slovakia  is  below  the  EU  average,  while  data  for 
2022 indicate a fall in the uptake of telemedicine 
since  2020,  in  contrast  to  the  steady  increase  in 
EU. 
telemedicine 
Complementary  investments  in  healthcare  are 
planned  under  the  EU  cohesion  policy  funds  over 
the 2021-2027 programming period. In particular, 
Slovakia  will  invest  EUR 166 million  in  health 
infrastructure  and  in  measures  to  improve  the 
accessibility  of  health  services  for  vulnerable  and 
socially disadvantaged groups (129). 

uptake 

seen 

the 

in 

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

2024. 

68 

20182019202020212022EU average (latest year) Treatable mortality per 100 000 population (mortality avoidable through optimal quality healthcare)165.4163.6168.8206.0NA93.3 (2021)Cancer mortality per 100 000 population310.6293.3301.8275.1NA235.4 (2021)Current expenditure on health, % GDP 6.76.97.17.8NA10.9 (2021)Public share of health expenditure, % of current health expenditure80.179.880.379.7NA81.1 (2021)Spending on prevention, % of current health expenditure 0.80.81.01.6NA6.0 (2021)Available hospital beds per 100 000 population570576568567NA525 (2021)Doctors per 1 000 population3.53.63.73.7NA4.1 (2021)*Nurses per 1 000 population5.75.75.85.7NA7.9 (2021)Total consumption of antibacterials for systemic use, daily defined dose per       1 000 inhabitants per day ***22.019.314.416.020.819.4 (2022) 
 
 
  
 
ANNEX 17: ECONOMIC AND SOCIAL PERFORMANCE AT REGIONAL LEVEL 

Annex 17 showcases the economic and social 
regional  dynamics  in  Slovakia.  It  provides  an 
analysis  of  economic,  social  and 
territorial 
cohesion  in  the  Slovak  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 

Graph A17.1: Gross domestic product (pps) per 
inhabitant in % of the EU-27 average 

Source: Eurostat 

in  Slovakia  have 
Regional  disparities 
diminished,  but  large  gaps  persist  between 
the  capital  region  and  the  rest  of  the 
country.  In  2022,  GDP  per  capita  in  the  capital 
region of Bratislava corresponded to 146% of the 
EU  average.  The  other  three  regions  in  Western, 
Central and Eastern Slovakia lagged far behind, at 
65%,  60%  and  52%  of 
the  EU  average 
respectively. While  GDP  per  capita in  Bratislava  is 
increased  by  the  contribution  of  commuters  from 
other  regions,  the  average  compensation  per 
employee  and  household  income  per  capita  (both 
in 
about  50%  above 
Bratislava)  also  point  to  significant  disparities 
between  the  capital  and  the  other  regions.  The 
fast catching up of the Bratislava region in 2001-
2010  was  followed  by  an  equally  sharp  decline 
starting  from  2015.  The  other  three  regions  were 
catching  up  at  a  much  more  moderate  pace  and 
the  EU  average  has 
their  convergence 
stagnated since 2015 (Graph A 17.1). 

the  national  average 

to 

The  three  regions  east  of  Bratislava  have 
been growing at a higher pace, but they still 

69 

lag behind in productivity. In 2013-2022, long-
term real GDP growth averaged 0.57% per year in 
Bratislava  while  in  Western,  Central  and  Eastern 
Slovakia,  it  was  between  2.19%  and  2.63%. 
Labour productivity in Bratislava, measured as real 
gross  value  added  per  worker,  amounted  to  EUR 
49  000  per  worker  in  2021.  This  exceeded  the 
national  average  of  EUR  33  000  per  worker,  but 
stayed considerably below the EU average of EUR 
56 000. 

Weak 
low 
innovation  performance  and 
investment  in  R&D  are  a  drag  on  regional 
development.  R&D  expenditure  in  the  capital 
region,  at  1.5%  of  GDP,  is  twice that  in the  other 
regions, but still much lower than the EU average 
of 2.3%. The Bratislava region is only a moderate 
innovator  while  the  other  three  regions  are 
classified  as  emerging  innovators  (the  lowest 
category)  on 
innovation 
scoreboard. 

the  2023 

regional 

Map A17.1:  Slovakia, Regional Competitiveness 
Index 2022 

Source: DG REGIO, JRC 

The  capital  region  is  far  more  competitive 
than  the  other  three  regions  and  attracts 
new  inhabitants.  Differences  in  the  business 
environment,  as  well  as  transport  infrastructure, 
human  capital  and 
labour  market  conditions 
contribute  to  significant  gaps  in  competitiveness. 
Only  in  Bratislava  is  the  regional  competitiveness 
index  above  the  EU  average  set  at  100.  Eastern 
Slovakia  scores  particularly  low  (Map  A17.1).  The 
index  measures  a  region’s  ability  to  offer  an 
attractive  environment 
for  businesses  and 
Indeed,  the 
residents  to 
population  of  the  capital  increased  by  18.5% 
between  2013  and  2021,  mainly  due  to  net 
migration.  Western,  central  and  eastern  Slovakia 

live  and  work 

in. 

255075100125150175200200020022004200620082010201220142016201820202022GDP (pps) per head (EU = 100)BratislavskýkrajZápadnéSlovenskoStrednéSlovenskoVýchodnéSlovensko 
 
   
 
 
 
 
 
Table A17.1:Selected indicators at regional level in Slovakia 

Source: Eurostat, EDGAR database 

recorded declines in population (-1.6%, -3.5% and 
-1.6% respectively). 

Central and Eastern Slovakia lag in terms of 
transport connectivity. This is measured by the 
ratio between the number of people living within a 
radius  set  by  a  travel  time  of  1h30  and  the 
number  of  people  that  live  within  a  distance  of 
120  km  By  car,  this  ratio  was  84%  in  Bratislava 
but it dropped to 51% in the western region, 30% 
in  the  central  region  and  39%  in  the  eastern 
region. By rail the ratio was 3% to 4% in Western, 
Central and Eastern Slovakia while it stood at 18% 
for  Bratislava.  Bratislava  has  on  average  221 
electric  vehicle  charging  points  per  million 
inhabitants  (below  the  EU  average  of  288)  while 
the other three regions have only between 15 and 
28. 

Regional  differences  in  employment  remain 
large  and  unemployment  is  widespread  in 
Eastern  Slovakia.  The  employment  rate  in  the 
capital  region  was  85.8%  in  2023  while  only 
71.6% of the working population was employed in 
Eastern  Slovakia.  Conversely,  the  unemployment 
rate,  at  10.4% 
in  Eastern  Slovakia  was 
significantly higher than in the other regions (2.3% 
in the capital region, 3.6% in western Slovakia and 
5.9%  in  central  Slovakia).  In  Bratislava,  54%  of 
jobs were in knowledge-intensive sectors while the 
share  ranged  from  30%  to  38%  in  the  other 
regions. 

Human  capital  is  concentrated in  Bratislava. 
The  share  of  people  with  a  tertiary  education  in 
the  working  age  population  (25-64)  was  47%  in 
the  region  of  Bratislava,  far  more  than  in  the 
Western,  Central  and  Eastern  Slovakia  (24.8%, 
26.6%  and  28.2%  respectively).  In  the  younger 
age bracket (30-34), Eastern Slovakia with 40.5% 
share  of  people  with  a  tertiary  education  clearly 
ranked  above  Western  and  Central  Slovakia,  but 
still  lagged behind Bratislava. Due to the outward 

migration  of  15-39-year-olds,  the  two  regions  of 
Central and Eastern Slovakia are considered to be 
at risk of being in talent development trap (130). 

Poverty  has  been  on  the  rise  in  the  capital 
region.  After  a  steady  decline  until  2020,  the 
share  of  people  at-risk-of-poverty  or  social 
exclusion increased from 13.8% in 2020 to 16.5% 
in  2022  in  Slovakia  (Graph  A17.1).  The  region  of 
Bratislava  recorded  the  biggest  increase,  by  5 
percentage points.  People in  rural  areas  are more 
at risk than in cities and the gap (19.9% vs 11%) 
was  much  larger  in  Slovakia  than  in  the  EU  as  a 
whole (22.1% vs 21.7%). 

Graph A17.2: People at-risk-of-poverty or social 
exclusion by NUTS2 regions 

Source: Eurostat 

Investment  and  subnational  reform  needs 
ahead 

Slovakia  needs  to  mobilise  environmental 
investments  at  both  national  and  regional 
level. This is essential to make up for the fallout 
of investments in 2014-2020, when an important 
part of planned projects in the sustainable use of 
natural resources did not materialise. Slovakia has 
committed  to  compensate  for  this  deficit  in  the 
2021-2027  programming  period.  That  requires 

(130) Communication Harnessing talent in Europe’s regions, 

COM(2023) 32 final.  

70 

0510152025SlovakiaBratislavaWesternSlovakiaCentralSlovakiaEasternSlovakia%202020212022GDP per capita (purchasing power standard/PPS)GDP per capita growthProductivity (gross value added (PPS) per person employed)Real productivity growthR&D expenditureCO2 emissions from fossil fuels per headEmployment rateUnemployment ratePeople at-risk-of-poverty or social exclusionPopulation aged 30-34 with tertiary educationEarly school leaversEU27 = 100,2022Average % change on the preceding year, 2013-2022EU27 = 100, 2022Average % change on the preceding year, 2013-2022% of GDP,2021tCO2 equivalent,2022% of population aged 20-64,2023% of labour force,2023% of population, 2022% of population aged 30-34,2022% of population aged 18-24,2022European Union1001.441000.72.3                          8.0                         75.3                       6.1                             21.642.89.6                                 Slovakia712.2475.91.30.9                          8.4                         77.5                       5.8                             16.539.37.4                                 Bratislava Region1460.57109.81.41.5                          7.9                         85.8                       2.3                             10.955.44.7                                 Western Slovakia652.1969.71.20.8                          9.2                         78.8                       3.6                             12.635.05.9                                 Central Slovakia602.8665.11.30.7                          5.3                         78.0                       5.9                             17.033.97.5                                 Eastern Slovakia522.6367.81.60.6                          10.2                       71.6                       10.4                           23.140.510.9                              NUTS 2 region name 
  
 
 
  
 
it 

in  areas  where 

increased funding, notably, for drinking water and 
wastewater  infrastructure,  circular  economy  and 
waste  management,  clean  air,  as  well  as  nature 
and  biodiversity  protection.  Waste  management 
systems  deserve  special  attention  and  would  be 
best  designed  and  implemented  at  regional  level. 
These investments will also help Slovakia meet EU 
environmental  targets 
is 
seriously  lagging  behind.  Moreover,  facilitating 
investments  in  the  green  transition  of  industry, 
decarbonisation of energy-intensive industries and 
net-zero 
could 
support  the  higher  added-value  production  and 
contribute to more sustainable economy and more 
resilient  sectors  most  hit  by  the  transition. 
Slovakia  could  benefit  from  the  opportunities  of 
the  STEP initiative to boost  investments in  critical 
technologies  to  support  the  development  of  the 
necessary  skills,  technologies  and  infrastructures. 
These investments could  strengthen the industrial 
diversity in Slovakia and stimulate the involvement 
in new strategic value chains.  

technologies  manufacturing, 

Improving 
living  conditions  and  social 
inclusion  of  Roma  remains  a  high  priority. 
Relatively  worse 
labour  market,  social  and 
education outcomes in regions with high presence 
of  marginalised  Roma  communities  confirm  long-
standing challenges of Roma inclusion. The 2021-
2027 
cohesion  policy  programming  period 
allocates  significant  funding  to  projects  that 
benefit Roma as well as municipalities where they 
live. To make the best use of it, Slovakia needs to 
overcome 
hindered 
investments  in  the  past  years,  such  as  problems 
land  ownership  rights  and  slow  public 
with 
procurement  processes.  It  is  also  necessary  to 
ensure  sufficient  administrative  capacity  in  both 
funds  and  project  management  and  set  right 
incentives for potential beneficiaries. 

obstacles 

have 

that 

71 

 
 
MACROECONOMIC STABILITY 
ANNEX 18: KEY FINANCIAL SECTOR DEVELOPMENTS 

and  growth  uncertainty)  could  pose  risks  in  the 
future – primarily for the debt-repayment capacity 
of borrowers.  

Graph A18.1: Evolution of Credit Activity 

Slovakia’s banking sector is relatively small, 
highly 
concentrated  and  predominantly 
foreign owned. Total banking-sector assets were 
equivalent to 100.2% of GDP in Q3-2023. Foreign-
owned  banks  account  for  around  87%  of  total 
banking-sector  assets,  while  the  five 
largest 
banking  groups  hold  around  79.0%  of  total 
banking-sector assets. Capital markets play a less 
important  role  than  banks 
in  financing  the 
economy.  Stock  market  capitalisation  remained 
very  low  at  1.8%  of  GDP  in  2022  (EU  average: 
65.6%).  Green  bonds  accounted  for  2.2%  of  all 
issued  bonds  still  outstanding  in  Q3-2023  (EA 
average: 4.0%).  

It 

liquid. 

in  2024 

to  partially 

improvement 

remains 
The  Slovakian  banking  sector 
is  highly  profitable,  well 
resilient. 
capitalised, 
Banking-sector 
and 
profitability  has  improved  since  Q3-2022  with 
return  on  equity  of  11.4%  in  Q3-2023  (EU 
average: 9.9%) mainly driven by an increase in net 
interest  income,  in  particular  from  the  corporate 
sector.  A  new  special  levy  on  bank  profits  was 
introduced 
finance  a 
mortgage-subsidy  scheme.  The  cost-to-income 
ratio  further  declined  to  45.8%  in  2023  (EU 
average:  52.8%)  from  50.5%  in  2022,  reflecting 
the  efficiency  of  bank 
an 
operations. 
remain  well 
capitalised.  The  banking  capital-adequacy  ratio 
remained  stable  at  19.6% 
(EU 
average:  19.6%),  signalling  the  robustness  of  the 
banking sector, with a common equity tier 1 ratio 
of 16.8% in Q3-2023 (EU average: 16.1%).  There 
is  a  significant  amount  of  liquidity  in  the  banking 
system,  as  the 
liquidity  coverage  ratio  was 
183.2%  in  Q3-2023.  To  further  strengthen  the 
institutions,  the  country’s 
resilience  of  credit 
central bank, the National Bank of Slovakia (NBS), 
increased  the  countercyclical  capital  buffer  rate 
applicable to the risk exposure of local banks from 
1% to 1.5% as of 1 August 2023.  

in  Q3-2023 

Slovakian 

banks 

in 

Slovakian  banks  continue  to  reduce  their 
non-performing  loans  (NPLs).  The  NPL  ratio 
remained  rather  low  at  1.9%  in  Q3-2023  (EU 
average:  1.8%).  Similarly,  the  coverage  ratio  of 
NPLs  remained  high  at  62.6%  in  Q3-2023,  which 
reflects  banks’  ability  to  absorb  future  losses  (EU 
average: 43.7%). Asset quality remained stable for 
both loans to corporates and loans to households 
in Q3-2023. However, the economic slowdown and 
current  financial  conditions  (higher  interest  rates 

Source: ECB 

Lending  activity  slowed  down  in  Q3-2023. 
Lending  to  both  non-financial  corporations  and 
households  decelerated  in  Q3-2023  (year-on-
year), mainly due to a decline in demand for credit 
amid  elevated  interest  rates.  Corporate  loans 
experienced  a  significant  downturn  towards  the 
end  of  2022  before  stabilising  (in  particular,  both 
the  commercial  real  estate  sector  and  the 
industrial 
sharp 
slowdown) (131). 

experienced 

sector 

a 

The  housing  market  in  Slovakia  has  been  on 
a  downward  trend  since  mid-2022.  Housing 
prices  fell  by  3.8%  in  Q3-2023  year-on-year  due 
to  rising  interest  rates  and  the  reduced  credit 
capacity  of  households (132).  Another  reason  why 
potential  buyers  have  postponed  their  decision  to 
buy  housing  is the  growing  gap  between  the  cost 
of  servicing  a  mortgage  and  the  lower  cost  of 
renting. The total number of purchase transactions 
for real estate has declined in recent months. 

(131) Národná Banka Slovenska, November 2023, Financial 

Stability Report, NBS.sk. 

(132) Eurostat. 

72 

-10-50510152025Total privateNFCHH% 
 
 
  
 
 
 
 
Table A18.1:Financial Soundness Indicators 

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

Household indebtedness has continued to rise 
but is expected to fall in the coming months. 
According  to  Eurostat,  household  debt  in  Slovakia 
rose from 42.5% of GDP in 2019 to 47.1% of GDP 
in 2022 (133). In the future, rising interest rates and 
economic  uncertainty  are  expected  to  dampen 
demand for mortgages, and end the recent pattern 
of sharp growth in property prices, thus mitigating 
the  risks  associated  with  rising  indebtedness.  The 
NBS  notes  that  young  mortgage  borrowers  have 
been  the  most  affected  by  the  recent  increase  in 
interest rates. In recent years, the NBS introduced 
a  number  of  borrower-based  measures,  such  as 
limits  on  the  debt-service-to-income  ratio  and  on 
the loan-to-value  ratio. In January 2023, the NBS 
partially  adjusted  the  total-debt-to-income  limit 
for  mortgage  loans  held  by  people  in  retirement, 
thus  preventing  them  from  going  into  retirement 
with excessive mortgage debt.  

Banks  are 
increasingly  exposed  to  the 
commercial real estate sector (CRE), which is 
facing  risks.  The  sector  is  more  indebted  than 
other sectors and may feel  the impact of interest 
rate  hikes  and  slower  sales  development  to  a 
greater  extent.  However,  no  increase  in  NPLs  is 
expected  in  this  sector  due  to  the  relatively  high 
gross margin levels of CRE firms (134). 

Slovakia  has  taken  measures  to  address 
weaknesses in its AML/CFT system. Competent 
authorities can now rely on a broader set of tools 
to  prevent,  detect,  investigate,  and  prosecute 
money  laundering.  Authorities  are  also  taking 
steps  to  address  emerging  risks,  in  particular  in 
relation  to  virtual  assets,  although  more  work 
needs  to  be  done  to  ensure  compliance  with  the 
Financial  Action  Task  Force  recommendation  in 
this  area.  Concerns  remain  about  the  resources 
and powers of Slovakia’s Financial Intelligence Unit 
ownership 
and 
information. 

deficiencies 

beneficial 

in 

Slovakia’s  insurance  sector  is  rather  small. 
The total assets of all insurers were equivalent to 
4.8%  of  GDP  in  2022.  The  level  of  sector 
capitalisation  in  terms  of  the  solvency  capital 
requirement  ratio  was  191%  in  the  first  half  of 
2023. A new accounting standard in the insurance 
sector  – 
implemented  on 
1 January 2023.  According  to  the  NBS,  although 
figures 
the 
indicate  year-on-year  growth 
profitability of the insurance sector between 2022 
and  2023,  it  would  be  misleading  to  make  any 
comparison  between  profit  recorded  under  old 
accounting  standards  and  profit  recorded  under 
new accounting standards (135).  

IFRS17  –  was 

in 

(133) Eurostat. 

(134) Národná Banka Slovenska, November 2023, Financial 

(135) Národná Banka Slovenska, November 2023, Financial 

Stability Report, NBS.sk. 

Stability Report, NBS.sk. 

73 

2017201820192020202120222023EUMedianTotal assets of the banking sector (% of GDP)91.791.291.6100.1106.3104.0100.2257.0184.6Share (total assets) of the five largest banks (%)74.575.675.776.879.378.9--69.6Share (total assets) of domestic credit institutions (%)115.615.114.914.213.513.213.2-62.9NFC credit growth (year-on-year % change)7.88.24.45.17.810.21.9-2.4HH credit growth (year-on-year % change)12.410.78.56.79.210.03.8-1.4Financial soundness indicators:1        - non-performing loans (% of total loans)3.73.22.92.52.01.71.91.81.8- capital adequacy ratio (%)18.617.818.019.319.419.519.619.620.1- return on equity (%)29.39.38.35.38.49.411.49.913.2Cost-to-income ratio (%)157.856.458.059.753.750.545.852.844.9Loan-to-deposit ratio (%)196.298.599.195.489.691.694.193.380.2Central bank liquidity as % of liabilities1.71.70.74.911.16.94.0-0.7Private sector debt (% of GDP)89.890.591.894.892.692.7-133.0118.4Long-term interest rate spread versus Bund (basis points)59.848.949.947.229.393.2121.5107.7104.2Market funding ratio (%)29.828.827.925.124.122.2-50.839.8Green bonds outstanding to all bonds (%)3----0.61.72.24.02.71-34-1011-1718-2424-27Colours indicate performance ranking among 27 EU Member States. 
 
 
 
 
  
 
ANNEX 19: TAXATION 

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

information  on 

Slovakia’s  tax  revenues  compared  with  GDP 
remain  below  the  EU  aggregate,  which  does 
not help mitigate the budget deficit. New bank 
levy  became  effective  in  2024.  It  is  taxing  bank 
profits that are deemed excessive and is expected 
to  generate  EUR 340 million  (0.25%  of  GDP)  in 
2024. The tax rate is set at 30% in 2024 and will 
be  decreased  by  5 pps  each  year  until  it  reaches 
15% in 2027. However, the European Central Bank 
(ECB)  has  warned  in  its  opinion  of  12  September 
2023  that  a  windfall  tax  could  undermine  the 
capital position of lenders, impact the provision of 
new  lending  and  distort  monetary  policy.  New 
rules  amending  excise  duties  on  tobacco  and 
spirits products are set to increase revenues while 
improving  health.  With  the  same 
aiming  to 
objectives, 
for  alcoholic 
rates 
reduced  VAT 
beverages  with  an  alcohol  content  of  more  than 
in  restaurants  was 
0.5%  by  volume  served 
abolished. 

The  tax  mix  could  be  made  more  efficient 
inclusive  and 
and  more  supportive  of 

Table A19.1:Taxation indicators 

sustainable  growth.  Table  A19.1  shows  that 
Slovakia’s  tax  revenues  as  a  percentage  of  GDP 
(34.8%  in  2022)  were  considerably  below  the  EU 
aggregate  (40.2%  in  2022),  even  though  they 
were  7 pps  higher  than  in  2010,  and  increased 
slightly  to  35.3%  in  2023.  The  ratio  of  revenues 
from labour taxes to total tax revenues (52.4% in 
2022)  was  close  to  the  EU  aggregate  (50.6%  in 
2022),  while  the  share  of  consumption  taxes  in 
total tax revenues was higher (32.7% in 2022; EU: 
27.3%).  Environmental  taxes  were  above  the  EU 
aggregate  in  2022,  as  a  share  of  both  GDP  and 
total taxation (see Graph A19.1), but this was due 
to energy tax revenues based on a large tax base, 
whereas  transport  and  pollution  and  resources 
taxes  generated  below-average  revenues.  This 
indicates potential to strengthen the application of 
the ‘polluter pays’ principle. Slovakia only has two 
of  six  main  types  of  taxes  on  pollution  and 
resources  (i.e.  taxes  on  NOx  emissions  and  waste 
landfilling). There could be scope to expand waste 
disposal  taxes  (including 
incineration)  and  to 
introduce  other  taxes  (e.g.  on  discharge  of  waste 
into  water  or  plastic  products).  Recent 
tax 
developments  related  to  the  green  transition 
include 
the  government’s  approval  of  a 
EUR 30 million investment incentive (tax break) for 
a  EUR 108 million  investment  to  be  implemented 
in  2024-28  by  the  Žilina  Kia car  plant  to  produce 
electric cars.  

Revenues  from  property  taxes  are  relatively 

(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. 

74 

SK2010202020212022202320102020202120222023Total taxes (including compulsory actual social contributions) (% of GDP)27.834.635.234.835.337.940.040.440.2Labour taxes (as % of GDP)14.418.918.918.220.021.320.720.3Consumption taxes (as % of GDP)9.811.411.511.410.810.711.211.0Capital taxes (as % of GDP)3.64.34.85.27.18.08.68.9Of which, on income of corporations (as % of GDP)2.63.23.93.82.42.53.03.4Total property taxes (as % of GDP)0.40.50.50.41.92.32.22.1Recurrent taxes on immovable property (as % of GDP)0.40.50.50.41.11.21.11.0Environmental taxes as % of GDP2.12.52.42.52.42.22.32.0Tax wedge at 50% of average wage (Single person) (*)31.836.436.937.137.333.931.732.131.831.7Tax wedge at 100% of average wage (Single person) (*)38.141.341.541.541.641.040.139.940.040.2Corporate income tax - effective average tax rates (1) (*)19.219.219.319.519.019.0Difference in Gini coefficient before and after taxes and cash social transfers (pensions excluded from social transfers) (2) (*)5.66.36.46.08.68.18.27.9Outstanding tax arrears: total year-end tax debt (including debt considered not collectable) / total revenue (in %) (*)22.821.640.935.5VAT Gap (% of VAT total tax liability, VTTL)(**)31.313.910.611.59.75.4Tax structureProgressivity & fairnessTax administration & complianceEU-27Slovakia 
 
 
 
      
 
Graph A19.1: Tax revenues from different tax types, % of total revenue 

2023 was above the EU average for single people 
earning  50%  or  67%  of  the  average  wage,  and 
close  to  the  EU  average  at  higher  wage  levels. 
Second  earners  earning  a  wage  of  67%  of  the 
average  wage,  whose  spouses  earn  the  average 
wage,  were  subject  to  a  tax  wedge  above  the  EU 
average. In  addition,  their  tax  wedge  was  higher 
than  that  of  single  persons  at  the  same  wage 
level. The ability of the tax and benefit system to 
reduce  inequality  (measured  by  its  ability  to 
reduce  the  GINI  coefficient)  has  increased  since 
2010  but  has  remained  below  the  EU  average  in 
recent years (see Table A19.1). 

compliance  gap,  which  has 
The  VAT 
in  recent  years, 
decreased  significantly 
remains above the EU average. Between 2017 
and  2021,  the  VAT  compliance  gap  in  Slovakia 
decreased steadily by an average of about 1.9 pps 
each  year.  The  decrease  in  the  VAT  compliance 
gap  was  even  higher  in  2021  –  it  dropped  by 
3.4 pps to 10.6% of VAT Total Tax Liability (VTTL). 
Yet, a majority of Member States saw a decrease 
of the VAT compliance gap in 2021, which was at 
least  partly  due 
the  COVID-19-induced 
economic  crisis.  The  improvement  in  Slovakia’s 
VAT  compliance  gap  is  based  on  a  mandatory 
reporting of all domestic and intra-EU transactions 
that has been introduced since 2014, coupled with 
a  wider  application  of 
reverse  charge 
mechanism.  

the 

to 

Source: European Commission 

taxation  system,  whereby 

low  (0.4%  of  GDP  in  2022  compared  with 
2.1%  in  the  EU  as  a  whole),  despite  being 
considered  relatively  growth-friendly.  Unlike 
most other Member States, Slovakia has an area-
immovable 
based 
property is taxed based on its area rather than its 
estimated  market  value. 
In  such  a  taxation 
framework,  the  location,  quality,  type,  number  of 
rooms and age of the dwelling are not factored in, 
and  this  hampers  equity  and  efficiency.  Slovakia 
still  does  not possess  either  valuation  systems  or 
sufficient data to  align  property  values  to market 
values,  but  a  value-based  taxation  system  could 
improve  fairness,  increase  tax  revenues  and  help 
dampen real estate demand. 

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

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 2014-2015. 
Source: European Commission 

Labour  taxation  is  less  progressive  than  on 
average in the EU due to a relatively high tax 
wedge  for  lower  wage  earners.  Graph  A19.2 
shows  that  the  labour  tax  wedge  for  Slovakia  in 

75 

37.339.541.643.745.42025303540455050100150Tax wedge, % of total labour costsEarnings as % of the average wageSingle earner - SKSingle earner - EU averageSecond earner -  SKSecond earner -  EU average50.627.322.152.432.714.9Tax revenue shares in 2022, Slovakia (outer ring) and EU (inner ring)Taxes on labourTaxes on consumptionTaxes on capital6.53.90.50.90.10.21.22.50.02.702468Slovakia -environmentaltaxationEU -environmentaltaxationSlovakia -property taxationEU - propertytaxationEnvironmental and property taxation as % of total tax revenue, Slovakia and the EUEnergy taxesTransport taxesResource/pollution taxesRecurrent property taxesOther property taxes 
      
      
ANNEX 20: TABLE WITH ECONOMIC AND FINANCIAL INDICATORS 

Table A20.1:Key economic and financial indicators 

(1) domestic banking groups and stand-alone banks, EU and non-EU foreign-controlled subsidiaries and EU and non-EU foreign-
controlled branches. 
(2) 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). 

76 

2004-072008-122013-2020212022202320242025Real GDP (y-o-y)7.82.12.24.81.91.62.22.9Potential growth (y-o-y).3.72.21.51.72.82.32.4Private consumption (y-o-y)6.51.22.72.66.1-3.20.91.9Public consumption (y-o-y)2.11.92.34.2-4.5-0.63.41.0Gross fixed capital formation (y-o-y)9.9-1.51.93.55.710.61.17.0Exports of goods and services (y-o-y)17.74.12.610.53.0-1.44.34.0Imports of goods and services (y-o-y) 16.51.62.811.74.3-7.65.34.0Contribution to GDP growth:Domestic demand (y-o-y)6.40.62.33.03.60.11.42.8Inventories (y-o-y)0.6-0.60.12.6-0.6-5.01.60.0Net exports (y-o-y)0.72.0-0.1-0.9-1.16.5-0.80.1Contribution to potential GDP growth:Total Labour (hours) (y-o-y).0.7-0.2-0.30.10.50.30.1Capital accumulation (y-o-y).1.01.00.50.61.51.31.5Total factor productivity (y-o-y).2.11.31.40.90.80.80.8Output gap1.7-0.1-0.30.40.6-0.6-0.7-0.3Unemployment rate14.812.68.76.86.15.85.45.2GDP deflator (y-o-y)3.11.01.02.47.510.14.63.2Harmonised index of consumer prices (HICP, y-o-y)4.12.71.12.812.111.03.13.6HICP excluding energy and unprocessed food (y-o-y)3.02.51.43.410.411.43.53.3Nominal compensation per employee (y-o-y)8.43.84.26.95.510.47.86.4Labour productivity (real, hours worked, y-o-y)4.91.82.74.6-2.30.81.62.3Unit labour costs (ULC, whole economy, y-o-y)1.92.03.31.45.48.95.73.5Real unit labour costs (y-o-y)-1.11.02.2-0.9-1.9-1.11.00.4Real effective exchange rate (ULC, y-o-y)5.82.21.41.21.30.90.50.9Real effective exchange rate (HICP, y-o-y)7.02.60.40.02.04.4..Net savings rate of households (net saving as percentage of net disposable income)0.61.73.44.2-1.7-0.1..Private credit flow, consolidated (% of GDP)7.76.05.34.58.42.3..Private sector debt, consolidated (% of GDP)48.566.587.792.693.685.5..of which household debt, consolidated (% of GDP)13.124.639.747.047.144.0..of which non-financial corporate debt, consolidated (% of GDP)35.442.048.045.646.541.5..Gross non-performing debt (% of total debt instruments and total loans and advances) (1)1.53.43.21.71.5...Corporations, net lending (+) or net borrowing (-) (% of GDP)-2.63.60.7-1.2-4.85.03.53.4Corporations, gross operating surplus (% of GDP)30.930.828.525.523.628.227.226.6Households, net lending (+) or net borrowing (-) (% of GDP)-0.10.71.62.3-1.3-0.20.90.1Deflated house price index (y-o-y).-3.65.33.01.3-9.2..Residential investment (% of GDP)3.02.93.14.04.43.7..Current account balance (% of GDP), balance of payments-7.2-3.6-1.5-4.0-7.3-1.6-2.8-3.2Trade balance (% of GDP), balance of payments-2.8-0.21.70.2-5.21.8..Terms of trade of goods and services (y-o-y)-0.7-1.2-0.3-0.9-3.90.30.7-0.2Capital account balance (% of GDP)0.21.31.21.11.11.1..Net international investment position (% of GDP)-47.2-61.4-65.9-60.5-60.9-53.9..NENDI - NIIP excluding non-defaultable instruments (% of GDP) (2)0.3-9.9-14.6-14.4-18.2-14.6..IIP liabilities excluding non-defaultable instruments (% of GDP) (2)43.457.184.2120.891.084.1..Export performance vs. advanced countries (% change over 5 years)..4.12.1-3.4-1.4..Export market share, goods and services (y-o-y)........Net FDI flows (% of GDP)-5.7-2.0-0.6-1.3-2.1-0.1..General government balance (% of GDP)-2.7-5.4-2.4-5.2-1.7-4.9-5.9-5.4Structural budget balance (% of GDP)..-2.3-5.3-1.9-4.7-5.6-5.3General government gross debt (% of GDP)34.640.152.261.157.756.058.559.9forecast 
 
 
 
  
 
 
 
ANNEX 21: DEBT SUSTAINABILITY ANALYSIS 

This  annex  assesses  fiscal  sustainability 
risks  for  Slovakia  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) (136).  Government 
gross financing needs are expected to increase to 
around  11%  of  GDP  on  average  over  2024-2025 
(Table A21.1, Table 1).  The  sovereign  credit  rating 
has  been  steadily  improving  and  has  returned  to 
investment  grade  at two of  the  four  major  rating 
agencies by the cut-off date of this report.  

2  –  Medium-term  fiscal  sustainability  risks 
appear high.   

The DSA baseline shows that the government 
debt  ratio  is  expected  to  increase  at  a  high 
level in the medium term (at around 106% of 
GDP  in  2034)  (Graph 1,  Table  1) (137).  The  debt 
increase  is  driven  by  the  assumed  structural 
primary  deficit  (excluding  changes  in  cost  of 
ageing) of 4.3% of GDP as of 2024. Compared to 
historical  data  since  1980,  this  appears  plausible 
as most past fiscal  positions were more stringent 
than  the  one  assumed  in  the  baseline  (Table 
A21.2) (138).  The  debt  dynamics  benefit  from  a 

(136) 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.  

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

policy change’ baseline include in particular: (i) a structural 
primary deficit, before changes in ageing costs, of 4.3% 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, followed by the 
EPC/OGWG ‘T+10 methodology projections between T+3 and 
T+10 (average of 1.7%); (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). 

(138) 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 

favourable,  although  declining,  snowball  effect  of 
-0.8  pp.  of  GDP  annually  on  average  over 
2025-2034,  additionally  supported  by  the  impact 
of Next Generation EU.  

the 

four 

interest-growth 

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  -2.0%  of  GDP)  the 
debt ratio would be lower than under the baseline 
by  about  18 pps.  in  2034.  However,  under  the 
adverse  interest-growth  rate  differential  scenario 
(i.e. 
differential 
deteriorates by 1 pp. compared with the baseline), 
the  debt  ratio  would  be  higher  than  under  the 
baseline  by  about  7  pps.  in  2034.  Under  the 
financial  stress  scenario 
rates 
temporarily  increase  by  1  pp.  compared  with  the 
baseline)  the  government  debt  ratio  would  be 
almost  unchanged  compared  with  the  baseline  in 
2034.  Finally,  under  the  lower  structural  primary 
balance  scenario  (i.e.  the  projected  cumulative 
improvement  in  the  SPB  over  2023-2024  is 
halved) the debt ratio would be higher than under 
the baseline by around 4 pps. in 2034. 

interest 

rate 

(i.e. 

stochastic 

plausible 

to 
These 

The  stochastic  projections  indicate  low  risk, 
pointing  to  the  low  sensitivity  of  these 
unforeseen 
projections 
events  (139). 
simulations 
indicate a 96% probability that the debt ratio will 
be higher in 2028 than in 2023, implying medium 
risks given the current high debt level. In addition, 
the  uncertainty  surrounding  the  baseline  debt 
projections 
the  difference 
between  the  10th  and  90th  debt  distribution 
percentiles, reaching around 27 pps. of GDP in five 
years’ time) is low (Graph 2).  

(as  measured  by 

3  –  Long-term  fiscal  sustainability  risks 
appear  overall  high.  This  assessment  is  based 
on  the  combination  of  two  fiscal  gap  indicators, 

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. 

(139) 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. 

77 

 
 
 
 
 
 
 
international 

the one hand, risk-increasing factors are related to 
investment 
an  unfavourable  net 
position,  contingent  liability  risks  stemming  from 
the  banking  sector,  and  the  moderate  share  of 
government  debt  held  by  non-residents.  On  the 
other  hand,  risk-mitigating  factors  are  related  to 
the  structure  of  debt.  In  particular,  the  low  share 
of  short-term  government  debt  and  the  fact  that 
the totality of government debt is denominated in 
euro  (thus  excluding  currency  risks)  help  to 
mitigate debt sustainability risks.  

capturing  the  required  fiscal  effort  to  stabilise 
debt  (S2  indicator)  and  bring  to  60%  of  GDP  (S1 
indicator) over the long term (140). This assessment 
is  driven  by  the  unfavourable  initial  budgetary 
position and the projected increase in ageing costs. 
Hence, these results are conditional on the country 
maintaining a sizeable SPB over the long term and 
duly 
sustainability-enhancing 
pension reforms.  

implementing 

The  S2 
indicator  points  to  high  fiscal 
sustainability  risks.  The  indicator  shows  that, 
relative  to  the  baseline,  the  SPB  would  need  to 
improve  its  fiscal  position  by  9.1  pps.  of  GDP  to 
ensure  debt  stabilisation  over  the  long  term.  This 
result  is  underpinned  by  the  unfavourable  initial 
budgetary  position  (contribution  of  4.6 pps.)  and 
the projected increase in ageing-related costs (4.4 
pps.).  Ageing  costs’  developments  are  primarily 
driven  by  the  projected increase  in  public  pension 
expenditure  (1.9 pps.),  followed  by  the  projected 
increase  in  long-term  care  (1.2  pps.)  as  well  as 
health-care  spending 
(Table A21.1, 
Table 2).  As  several  investments  and  reforms  in 
the  RRP  contribute to  supporting the  efficiency  of 
the  Slovak  health  and  long-term  care  systems,  it 
will  be 
important  to  carefully  monitor  their 
implementation. 

(1.1  pps.) 

The  S1 
indicator  points  to  high  fiscal 
sustainability risks. The indicator shows that the 
country  would  need  to  improve  its  fiscal  position 
by  7.8  pps.  of  GDP  to  reduce  its  debt  to  60%  of 
GDP  by  2070.  This  result  is  mainly  driven  by  the 
current  unfavourable  initial  budgetary  position 
(contribution  of  4.2  pps.)  and  the  projected 
increase  in  age-related  public  spending  (3.6  pps.) 
(Table A21.1, Table 2).   

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

(140)The S2 fiscal sustainability indicator measures the 

permanent SPB adjustment in 2025 that would be required 
to stabilise public debt in the long term. It is complemented 
by the S1 indicator, which measures the permanent SPB 
adjustment in 2025 to bring the debt ratio to 60% by 2070. 
For both the S1 and S2 indicators, the risk assessment 
depends on the amount of fiscal consolidation needed: ‘high 
risk’ if the required effort exceeds 6 % 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 2023 Debt 
Sustainability Monitor for further details. 

78 

 
 
Table A21.1:Debt sustainability analysis – Slovakia 

Source: Commission services 

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

Source: Commission services 

79 

BaselineHistorical SPBLower SPBAdverse 'r-g'Financial stressOverallHIGHMEDIUMHIGHHIGHHIGHLOWDebt level (2034), % GDP106.087.8109.8112.6106.5Debt peak year20342034203420342034Fiscal consolidation space86%54%93%86%86%Probability of debt ratio exceeding in 2028 its 2023 level96%Difference between 90th and 10th percentiles (pps. GDP)26.8Source: European Commission (for further details on the Commission's multidimensional approach, see the 2023 Debt Sustainability Monitor)(1)Debtlevelin2034.Green:below60%ofGDP.Yellow:between60%and90%.Red:above90%.(2)Thedebtpeakyearindicateswhetherdebtisprojectedtoincreaseoveralloverthenextdecade.Green:debtpeaksearly.Yellow:peaktowardsthemiddleoftheprojectionperiod.Red:latepeak.(3)Fiscalconsolidationspacemeasurestheshareofpastfiscalpositionsinthecountrythatweremorestringentthantheoneassumedinthebaseline.Green:highvalue,i.e.theassumedfiscalpositionisplausiblebyhistoricalstandardsandleavesroomforcorrectivemeasuresifneeded.Yellow:intermediate.Red:low.(4)Probabilityofdebtratioexceedingin2028its2023level.Green:lowprobability.Yellow:intermediate.Red:high(alsoreflectingtheinitialdebtlevel).(5)thedifferencebetweenthe90thand10thpercentilesmeasuresuncertainty,basedonthedebtdistributionunder10000differentshocks.Green,yellowandredcellsindicateincreasinguncertainty.(Forfurtherdetailson the Commission's multidimensional approach, see the 2023 Debt Sustainability Monitor)LOWHIGHHIGHHIGHHIGHShort termMedium term - Debt sustainability analysis (DSA)Long termOverall                               (S0)Overall Deterministic scenariosStochastic projectionsS2S1Overall(S1 + S2)Table 1. Baseline debt projections20212022202320242025202620272028202920302031203220332034Gross debt ratio (% of GDP)61.157.756.058.560.464.268.673.378.283.488.794.2100.0106.0Changes in the ratio2.2-3.3-1.72.41.93.84.44.74.95.15.35.55.86.0of whichPrimary deficit4.10.63.74.54.64.95.35.55.75.86.06.16.26.4Snowball effect-2.9-4.3-5.0-2.3-2.1-1.1-0.9-0.8-0.7-0.7-0.6-0.6-0.4-0.4Stock-flow adjustments1.00.3-0.50.2-0.60.00.00.00.00.00.00.00.00.0Gross financing needs (% of GDP)7.94.410.111.511.012.313.113.814.415.015.616.316.917.7S1S2Overall index  (pps. of GDP)7.89.1of which Initial budgetary position4.24.6Debt requirement0.0Ageing costs3.64.4of which    Pensions1.81.9     Health care0.91.1     Long-term care0.71.2Education0.20.2Table 2. Breakdown of the S1 and S2 sustainability gap indicators02040608010012020212022202320242025202620272028202920302031203220332034Graph 1. Deterministic debt projections Historical SPB scenarioLower SPB scenarioFinancial stress scenarioAdverse 'r-g' scenarioBaseline% of GDPp10p20p40p60p80p903040506070809010020212022202320242025202620272028% of GDPGraph 2. Stochastic debt projections 2024-2028MedianBaseline