Recommendation for a COUNCIL RECOMMENDATION endorsing the national medium-term fiscal-structural plan of Slovakia
Date: 2024-11-26
Institutions: Directorate-General for Economic and Financial Affairs, European Commission
Subjects: Slovakia, budget deficit, coordination of EMU policies, economic reform, fiscal policy, investment, macroeconomics, national planning, public debt, structural adjustment

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   EUROPEAN COMMISSION  Strasbourg, 26.11.2024  COM(2024) 727 final  Recommendation for a COUNCIL RECOMMENDATION endorsing the national medium-term fiscal-structural plan of Slovakia  
 
Recommendation for a 

COUNCIL RECOMMENDATION 

endorsing the national medium-term fiscal-structural plan of Slovakia 

THE COUNCIL OF THE EUROPEAN UNION,  

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 121 thereof,  

Having regard to Regulation (EU) 2024/1263, and in particular Article 17 thereof,  

Having regard to Regulation (EU) No 1176/2011, in particular Article 8(1) thereof,  

Having regard to the recommendation from the Commission,  

Whereas:  

GENERAL CONSIDERATIONS 

(1) 

(2) 

1 

2 

3 

A reformed EU economic governance framework entered into force on 30 April 2024. 
Regulation  (EU)  2024/1263  of  the  European  Parliament  and  of  the  Council  on  the 
effective  coordination  of  economic  policies  and  on  multilateral  budgetary 
surveillance1,  together  with  the  amended  Regulation  (EC)  No  1467/97  on  the 
implementation  of  the  excessive  deficit  procedure2,  and  the  amended  Council 
Directive  2011/85/EU  on  the  budgetary  frameworks  of  Member  States3  are  the  core 
elements of the reformed EU economic governance framework. The framework aims 
at  ensuring  public  debt  sustainability  and  sustainable  and  inclusive  growth  through 
reforms  and  investments.  It  promotes  national  ownership  and  has  a  medium-term 
focus, combined with an effective and coherent enforcement of the rules.  

The  national  medium-term  fiscal-structural  plans  that  Member  States  submit  to  the 
Council  and  to  the  Commission  are  at  the  centre  of  the  new  economic  governance 
framework. The plans are to deliver on two objectives: i) ensuring that, by the end of 
the adjustment period, general government debt is on a plausibly downward trajectory, 
or stays at prudent levels, and that the government deficit is brought and maintained 
below the reference value of 3% of GDP over the medium term, and ii) ensuring the 
delivery  of  reforms  and  investments  responding  to  the  main  challenges  identified  in 
the context of the European Semester and addressing the common priorities of the EU. 

Regulation 

(EC)  No 

Regulation  (EU)  2024/1263  of  the  European  Parliament  and  of  the  Council  of  29  April  2024  on  the 
effective  coordination  of  economic  policies  and  on  multilateral  budgetary  surveillance  and  repealing 
Council 
ELI: 
http://data.europa.eu/eli/reg/2024/1263/oj). 
Council  Regulation  (EU)  2024/1264  of  29  April  2024  amending  Regulation  (EC)  No  1467/97  on 
speeding  up  and  clarifying  the  implementation  of  the  excessive  deficit  procedure  (OJ  L,  2024/1264, 
30.4.2024, ELI: http://data.europa.eu/eli/reg/2024/1264/oj). 
Council Directive (EU) 2024/1265 of 29 April 2024 amending Directive 2011/85/EU on requirements 
(OJ  L,  2024/1265,  30.4.2024,  ELI: 
for  budgetary 
http://data.europa.eu/eli/dir/2024/1265/oj). 

the  Member  States 

frameworks  of 

2024/1263, 

30.4.2024, 

1466/97 

(OJ 

L, 

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To that end, each plan is to present a medium-term commitment to a net expenditure4 
path, which effectively establishes a budgetary constraint for the duration of the plan, 
covering four or five years (depending on the regular term of legislature in a Member 
State).  In  addition,  the  plan  should  explain  how  the  Member  State  will  ensure  the 
delivery  of  reforms  and  investments  responding  to  the  main  challenges  identified  in 
the  context  of  the  European  Semester,  in  particular  in  the  country-specific 
recommendations  (including  those  pertaining  to  the  macroeconomic  imbalances 
procedure (MIP), if applicable), and how the Member State will address the common 
priorities of the Union. The period for fiscal adjustment covers a period of four years, 
which  may  be  extended  by  up  to  three  years  if  the  Member  State  commits  to 
delivering a set of relevant reforms and investments that satisfies the criteria set out in 
Regulation (EU) 2024/1263.   

(3) 

(4) 

Following the submission of the plan, the Commission is to assess whether it complies 
with the requirements of Regulation (EU) 2024/1263. 

Upon  a  recommendation  from  the  Commission,  the  Council  is  to  then  adopt  a 
recommendation to set the net expenditure path of the Member State concerned and, 
where  applicable,  endorses 
investment  commitments 
the  set  of  reform  and 
underpinning an extension of the fiscal adjustment period.  

CONSIDERATIONS  CONCERNING  THE  NATIONAL  MEDIUM-TERM  FISCAL-
STRUCTURAL PLAN OF SLOVAKIA   

(5) 

On  15  October  2024,  Slovakia  submitted  its  national  medium-term  fiscal-structural 
plan to the Council and to the Commission. The submission took place following an 
extension  of  the  deadline  set  out  in  Article  36  of  Regulation  (EU)  2024/1263,  as 
agreed with the Commission in view of the reasons provided by Slovakia.   

Process prior to the submission of the plan   

(6) 

On  21  June  2024  the  Commission  sent,  according  to  Article  9  of  Regulation  (EU) 
2024/1263,  the  reference  trajectory5  to  Slovakia.  The  Commission  published  the 
reference  trajectory  on  15  October  20246.  The  reference  trajectory  is  risk-based  and 
ensures that, by the end of the fiscal adjustment period and  in the absence of further 

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Net expenditure as defined in Article 2 of Regulation (EU) 2024/1263, viz. government expenditure net 
of (i) interest expenditure, (ii) discretionary revenue  measures, (iii) expenditure on Union programmes 
fully matched by revenue from Union funds, (iv) national expenditure on co-financing of programmes 
funded by the Union, (v) cyclical elements of unemployment benefit expenditure and (vi) one-offs and 
other temporary measures. 
Prior  guidance  transmitted  to  the  Member  States  and  Economic  and  Financial  Committee  includes 
trajectories  without  and  with  an  extension  of  the  adjustment  period  (covering  4  and  7  years, 
respectively).  It  also  includes  the  main  initial  conditions  and  underlying  assumptions  used  in  the 
Commission’s  medium-term  government  debt  projection  framework.  The  reference  trajectory  was 
calculated on the basis of the methodology described in the Commission’s Debt Sustainability Monitor 
2023  (https://economy-finance.ec.europa.eu/publications/debt-sustainability-monitor-2023_en).  It 
is 
based on the European Commission Spring 2024 Spring Forecast and its medium-term extension up to 
2033, and long-term GDP growth and ageing costs are in line with the joint Commission-Council 2024 
Ageing  Report  (https://economy-finance.ec.europa.eu/publications/2024-ageing-report-economic-and-
budgetary-projections-eu-member-states-2022-2070_en). 
https://economy-finance.ec.europa.eu/economic-and-fiscal-governance/national-medium-term-fiscal-
structural-plans_en#slovakia 

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budgetary  measures  beyond  the  adjustment  period,  general  government  debt  is  on  a 
plausibly  downward  trajectory  or  stays  at  prudent  levels  over  the  medium  term,  and 
the  general  government  deficit  is  brought  below  3%  of  GDP  over  the  adjustment 
period  and  is  maintained  below  that  reference  value  over  the  medium  term.  The 
medium term is defined as the ten-year period after the end of the adjustment period. 
In  accordance with  Articles 6, point  (d), 7 and 8  of Regulation  (EU) 2024/1263,  the 
reference  trajectory  is  also  consistent  with  the  deficit  benchmark,  the  debt 
sustainability  safeguard  and  the  deficit  resilience  safeguard. The  reference  trajectory 
of Slovakia sets out that, based on the Commission’s assumptions and assuming a 4-
year  adjustment  period,  net  expenditure  should  not  grow  by  more  than  the  values 
provided in Table 1. This corresponds to average net expenditure growth of 2.0% over 
the adjustment period (2025-2028).  

Table 1: Reference trajectory provided by the Commission to Slovakia on 21 June 2024  

Maximum net 
expenditure 
growth (annual, %) 

2025 

2026 

2027 

2028 

Average 2025-
2028 

2.8 

2.0 

1.6 

1.5 

2.0 

Source: Commission’s calculations.  

(7) 

(8) 

In line with Article 12 of Regulation (EU) 2024/1263, Slovakia and the Commission 
engaged in  a technical  dialogue from  June to  September 2024. The dialogue centred 
on the net expenditure path envisaged by Slovakia and its underlying assumptions (in 
particular a backloaded fiscal adjustment in 2026 explained by defence investment and 
national  co-financing  of  EU-funded  grants),  as  well  as  the  envisaged  delivery  of 
reforms and investments responding to the main challenges identified in the context of 
the  European  Semester  and  the  common  priorities  of  the  Union  in  fair  green  and 
digital transition, social and economic resilience, energy security and the build-up of 
defence capabilities.  

In  September  and  October  2024,  in  line  with  Article  11(3)  and  36  (1),  point  (c)  of 
Regulation (EU) 2024/1263, according to the information provided by Slovakia in its 
plan,  Slovakia  engaged  in  a  consultation  process  with  civil  society,  social  partners, 
regional  authorities  and  other  relevant  stakeholders.  According  to  the  information 
provided by Slovakia in its plan, the national medium-term fiscal-structural plan was 
discussed  at  the  Economic  and  Social  Council,  which  includes  trade  unions,  the 
employers' union, the employers' association, and municipalities of Slovakia.   

Other related processes   

(9) 

On  26  July  2024,  the  Council  established  the  existence  of  an  excessive  deficit  in 
the  deficit  criterion7.  The  present 
Slovakia  due 
Recommendation  coincides  with  the  Council  Recommendation  under  Article  126(7) 
TFEU  with  a  view  to  bringing  an  end  to  the  situation  of  an  excessive  government 

to  non-compliance  with 

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OJ L, 1.8.2024, ELI: https://eur-lex.europa.eu/eli/dec/2024/2129/oj  

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deficit  in  Slovakia8.  The  simultaneous  adoption  of  those  recommendations,  which  is 
tailored to and justified by the transition to the new economic governance framework, 
ensures consistency between the recommended adjustment paths.   

(10)  On 15 October 2024, Slovakia submitted its Draft Budgetary Plan for the year 2025. 
The Commission adopted an opinion on this Draft Budgetary Plan on  [26 November 
2024]9. 

(11)  On  19  June  2024,  the  Commission  concluded  that  Slovakia  is  experiencing 
macroeconomic imbalances. In particular, Slovakia faces vulnerabilities related to cost 
competitiveness, external balance, housing market and household debt10.  

(12)  On  21  October  2024,  the  Council  addressed  to  Slovakia  a  series  of  CSRs  in  the 

context of the European Semester11.   

SUMMARY OF THE PLAN AND THE COMMISSION’S ASSESSMENT THEREOF  

(13) 

In  line  with  Article  16  of  Regulation  (EU)  2024/1263,  the  Commission  assessed  the 
plan as follows:  

Context: macroeconomic and fiscal situation and outlook   

(14)  Economic activity in Slovakia grew by 1.4% in 2023, because of the decline in private 
and  public  consumption.  According  to  the  European  Commission  Autumn  2024 
Forecast,  the  economy  is  expected  to  grow  by  2.2%  in  2024,  due  to  robust  private 
consumption but weaker export demand. In 2025, real GDP is set to increase by 2.3%, 
driven  by  private  consumption  and  investment.  In  2026,  real  GDP  is  expected  to 
increase by 2.5%, due to robust private consumption and positive net exports. Over the 
forecast  horizon  (i.e.,  2024-2026),  potential  GDP  growth  in  Slovakia  is  expected  to 
experience a modest decline, from 2.3% in 2024 to 2.2% by 2026. The unemployment 
rate stood at 5.8% in 2023 and is projected by the Commission to amount to 5.5% in 
2024,  5.3%  in  2025  and  5.1%  in  2026.  Inflation  (GDP  deflator)  is  projected  to 
decrease from 10.1% in 2023 to 4.4% in 2024 and forecast to reach 3.8% in 2025 and 
2.8% in 2026.  

(15)  Regarding  fiscal  developments,  in  2023  Slovakia’s  general  government  deficit 
amounted  to  5.2%  of  GDP.  According  to  the  European  Commission  Autumn  2024 
Forecast,  it  is  set  to  reach  5.8%  of  GDP  in  2024  and  to  decline  to  4.7%  of  GDP  in 
2025 and, on a no-policy change basis, to 4.1% in 2026. The European  Commission 
Autumn 2024 Forecast includes Slovakia’s draft budget for 2025, that the government 
proposed to the national parliament in October. General government debt was 56.1% 
of GDP at end-2023. According to the European Commission Autumn 2024 Forecast, 
the debt ratio is expected to increase to 58.9% of GDP at end-2024. It is projected to 
increase to 59.8% of GDP at end-2025 and 61.8% at end-2026. The fiscal projections 

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11 

Recommendation for a Council Recommendation with a view to bringing an end to the situation of an 
excessive deficit in Slovakia, 26.11.2024, COM(2024)958 final. 
Commission Opinion on the Draft Budgetary Plan of Slovakia, 26.11.2024, C(2024)9065 final. 
‘Communication from the Commission to the European Parliament, the Council, the European Central 
Bank, the European Economic and Social Committee, the Committee of the Regions and the European 
Investment Bank’, COM (2024) 600 final, Appendix 4 
Council Recommendation on economic, budgetary, employment and structural policies of Slovakia, not 
yet published. 

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by the Commission do not consider the policy commitments in the medium-term plans 
as  such  until  they  are  underpinned  by  credibly  announced  and  sufficiently  specified 
concrete policy measures. 

Net expenditure path and main macroeconomic assumptions in the plan  

(16)  Slovakia’s  national  medium-term  fiscal-structural  plan  covers  the  period  2025-2028 

and presents a fiscal adjustment over four years.  

(17)  The  plan  contains  all  information  required  by  Article  13  of  Regulation  (EU) 

2024/1263.   

(18)  The plan commits to the net expenditure path indicated in Table  2, corresponding to 
average  net  expenditure  growth  of  2.0%  over  the  years  2025-2028.  The  average  net 
expenditure  growth  reported  in  the  plan  over  the  adjustment  period  (2025-2028)  is 
equal  to12  the  reference  trajectory  transmitted  by  the  Commission  on  21 June 
2024. The  plan  assumes  potential  GDP  growth  to  decrease  gradually  from  2.4%  in 
2025  to  1.4%  in  2028.  In  addition,  the  plan  expects  the  growth  rate  of  the  GDP 
deflator to decrease from 4.6% in 2024 to 3.2% in 2025, and then to 2.9% in 2028.   

Table 2: Net expenditure path and main assumptions in Slovakia’s plan   

2024 

2025 

2026 

2027 

2028 

Average over the 
period of validity 
of the plan 2025-
2028 
2.0 

Net expenditure 
growth  
(annual, %) 
Net expenditure 
growth  
(cumulative, %) 
Potential GDP growth 
(%) 
Inflation (GDP 
deflator growth) (%) 

6.2 

6.2 

2.3 

4.6 

3.8 

0.9 

1.6 

1.5 

10.3 

11.2 

13.0 

14.8 

n.a. 

2.4 

3.2 

1.7 

3.1 

1.4 

3.0 

1.4 

2.9 

1.7 

3.1 

Source: Medium-term fiscal-structural plan of Slovakia and Commission calculations.  

Implications of the plan’s net expenditure commitments for general government debt   

(19) 

If the net  expenditure path  committed to  in the plan and the underlying assumptions 
materialise, general government debt would, according to the plan, gradually increase 
from 58.5% in 2024 to 62.1% of GDP in 2027, before beginning to decline to 61.4% 
at  the  end  of  the  adjustment  period  (2028),  as  per  the  following  table.  The  Treaty 
reference value of 60% of GDP is expected to be exceeded for the first time in 2026, 
at the level of 61.6% of GDP, and remain above the reference value for the outer years 
of the adjustment period. Thereafter, over the medium term (i.e. until 2038), the debt 

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The difference is not visible due to rounding. 

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ratio  is  expected  to  gradually  decrease  according  to  the  plan,  to  54.8%  of  GDP  by 
2038.   

Table 3: General government debt and balance developments in Slovakia’s plan   

2023 
56.0 

2024 
58.5 

2025 
59.8 

Government debt  
(% of GDP)  
Government balance  
(% of GDP)  
Source: Medium-term fiscal-structural plan of Slovakia   

-5.1 

-4.9 

-5.9 

2026 
61.6 

2027 
62.1 

2028 
61.4 

-3.9 

-2.9 

-1.8 

2038 
54.8 

-2.3 

Thus,  according  to  the  plan,  general  government  debt  would  be  brought  below  the 
Treaty reference value of 60% of GDP over the medium term. This is plausible based 
on the plan’s assumptions, as debt would be projected to stand below 60% of GDP 
by 2038 under all deterministic stress tests of the Commission’s Debt Sustainability 
Analysis.  Therefore,  based  on  the  plan’s  policy  commitments  and  macroeconomic 
assumptions, the net expenditure path put forward in the plan  is consistent with the 
requirement for debt as set out in Articles 6, point (a), and 16(2) of Regulation (EU) 
2024/1263. 

Implications  of  the  plan’s  net  expenditure  commitments  for  the  general  government 
balance 

(20)  Based  on  the  plan’s  net  expenditure  path  and  assumptions,  the  general  government 
deficit is expected to reach 5.9% of GDP in 2024 and to gradually decrease to 1.8% in 
2028.  The  deficit  is  expected  to  return  to  below  3%  of  GDP  in  2027,  with  2.9%  of 
GDP. Thus, according to the plan, the general government balance would not exceed 
the 3% of GDP reference value at the end of the adjustment period (2028). In addition, 
in  the  ten  years  following  the  adjustment  period  (i.e.  until  2038),  the  government 
deficit  would  not  exceed  3%  of  GDP. Therefore,  based  on  the  plan’s  policy 
commitments and macroeconomic assumptions, the net expenditure path put forward 
in  the  plan  is  consistent with  the  requirement  for  the  deficit  as  set  out  in  Articles  6, 
point (b), and 16(2) of Regulation (EU) 2024/1263.   

Time profile of the fiscal adjustment  

(21)  The  time  profile  of  the  fiscal  adjustment,  measured  as  the  change  in  the  structural 
primary balance, as described in the plan, is backloaded compared to the default linear 
path referred to as a rule under Article 6, point (c), of Regulation (EU) 2024/1263. In 
2025, the fiscal adjustment of the structural primary balance is 0.8 pps., which is 0.5 
pps.  less  than  the  average  annual  adjustment  over  the  plan’s  horizon.  The  less 
ambitious fiscal  adjustment  in  2025 is  explained by a postponed delivery of military 
investments from previous years, amounting to 0.4% of GDP in 2025. The adjustment 
is thus backloaded to 2026, when the planned adjustment in structural primary balance 
is planned to be 0.5 pps. higher than the average annual adjustment. In 2027 and 2028, 
the adjustment in structural primary balance terms is linear.” Therefore, based on the 
plan’s policy commitments and macroeconomic assumptions, the net expenditure path 
put forward in the plan is consistent with the no-backloading safeguard clause set out 

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in  Articles  6,  point  (c),  and  the  transitional  provision  in  Article  36(1),  point  (e),  of 
Regulation (EU) 2024/1263.   

Table 4: Structural primary balance developments in Slovakia’s plan   

Structural primary 
balance 
(% of GDP) 
Change in structural 
primary balance 
(pps.) 

2023 
-3.5 

2024 
-4.3 

2025 
-3.5 

2026 
-1.7 

2027 
-0.3 

2028 
1.0 

n.a. 

-0.8 

0.8 

1.8 

1.3 

1.3 

Source: Medium-term fiscal-structural plan of Slovakia  

Consistency with the excessive deficit procedure  

(22)  The net expenditure path set out in the plan is in line with the requirements under the 
excessive  deficit  procedure  (in  particular  with  the  minimum  annual  structural 
adjustment established in Article 3(4), third subparagraph of Council Regulation (EC) 
1467/97). 

Consistency of the plan with the deficit resilience safeguard 

(23)  The  requirement  of  the  preventive  arm  set  out  in  Article  8  of  Regulation  No 
2024/1263 regarding the deficit resilience safeguard, which aims to provide a common 
margin relative to the deficit reference value of 3%, applies to Slovakia as of 2028, as 
the  deficit  is  planned  to  be  below  3%  of  GDP  as  of  2027.  In  2028  the  annual 
adjustment in the structural primary balance should therefore not be less than 0.4% of 
GDP  if  the  structural  deficit  remained  above  1.5%  of  GDP  in  2027,  to  achieve  a 
common resilience margin in structural terms of 1.5% of GDP. The fiscal adjustment 
that  results  from  the  plan’s  policy  commitments  and  macroeconomic  assumptions  is 
1.3% in 2028. Therefore, based on the plan’s policy commitments and macroeconomic 
assumptions,  the  net  expenditure  path  put  forward  in  the  plan  is  consistent  with  the 
deficit resilience safeguard.  

Consistency of the plan with the debt sustainability safeguard 

(24)  According  to  the  plan,  general  government  debt  will  be  between  60%  and  90%  of 
GDP  in  2026,  2027  and  2028.  However,  as  according  to  the  plan  the  government 
deficit would go below 3% of GDP in 2027, which would result in an abrogation of 
the decision establishing the existence of an excessive deficit in the final year of the 
adjustment period, the debt sustainability safeguard does not apply during the period 
covered by the plan. 

Macroeconomic assumptions of the plan  

(25)  The plan is based on a set of macroeconomic and fiscal assumptions that is in line with 
the Commission’s assumptions transmitted to Slovakia on 21 June 2024. It takes into 
account  additional  available  information  compared  to  the  reference  trajectory  and 
includes  accordingly  updated  macro  and  fiscal  indicators.  The  impact  of  this  update 

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does not significantly affect the average net expenditure growth in the plan compared 
to the reference trajectory. 

Fiscal strategy of the plan 

(26)  According  to  the  indicative  fiscal  strategy  in  the  plan,  the  commitments  on  net 
expenditure  will  be  delivered  mainly  through  discretionary  revenue  increases.  The 
plan  presents  measures  representing  one  third  of  the  targeted  amount,  while  the 
remaining  two  thirds  will  be  specified  in  subsequent  annual  budgets.  The  planned 
fiscal  consolidation  in  2025  is  based  on  the  planned  revenues-increasing  and 
expenditures-decreasing  measures  included  in  the  2025  draft  budgetary  plan.  It 
includes an increase in value added taxes and corporate taxes, new taxes on financial 
transactions  for  businesses,  and  higher  excise  duties  on  sweetened  beverages  and 
tobacco and non-tobacco products. On the expenditure side, these measures include a 
winding down of existing support measures related to high energy prices, and cutting 
public  sector  wages.  The  discretionary  revenue  increases  amount  to  1.6%  of  GDP, 
while expenditure reductions amount to 0.6% of GDP. However, Slovakia also plans 
to increase expenditure by 0.6% of GDP, resulting in a net consolidation of 1.6% of 
GDP.  

(27)  The  precise  specification  of  the  relevant  policy  measures  is  to  be  confirmed  or 
adjusted  and  quantified  in  the  annual  budgets.  At  the  same  time,  some  risks  remain 
with respect to the implementation of the indicative fiscal strategy in the plan. These 
risks arise from the fiscal adjustment being based primarily on discretionary revenue 
increases. The burden of the strong consolidation effort is skewed towards households 
and firms as opposed to the government. Such a consolidation strategy may result in 
additional macroeconomic effects, with potential fiscal consequences. In particular, a 
tax-driven consolidation  entails  the fiscal  risk of  a lower tax  revenue collection than 
assumed in the plan. The Draft Budgetary Plan for 2025 specifies the policy measures 
through which the net expenditure commitment for 2025 will be achieved13.  

Reform  and  investment  intentions  in  the  plan  responding  to  the  main  challenges 
identified in the context of the European Semester and addressing the common priorities 
of the Union     

(28)  The plan describes policy intentions concerning reforms and investments to respond to 
the main challenges identified in the context of the European Semester, especially the 
CSRs, including those pertaining to the MIP, and to address the common priorities of 
the EU. Specifically, the plan includes 18 reforms and 11 investments, of which 18 are 
financially  supported  by  the  Recovery  and  Resilience  Facility  and  1  also  by  the 
cohesion policy funds. 

(29)  Concerning  the  common  priority  of  a  fair  green  transition,  including  the  climate 
objectives set out in Regulation (EU) 2021/1119, the plan presents the modernisation 
of  low-carbon  transport  infrastructure,  included  in  the  recovery  and  resilience  plan 
(RRP),  whose  objective  is  to  increase  the  length  of  the  reconstructed  or  modernised 
clean  rail  infrastructure.  This  measure  intends  to  address  the  2019,  2020,  2022  and 
2023 (CSRs) on sustainable public transport and reduction of fossil fuels dependency. 

13 

See Commission Opinion on the Draft Budgetary Plan of Slovakia, 26.11.2024, C(2024)9065 final. 

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Additionally,  the  plan  includes  (under  the  RRP),  projects  aimed  at  addressing  the 
challenges of the green transition through the launch of thematic calls aligned with the 
priorities  of  Horizon  Europe.  This  investment  responds  to  the  CSRs  addressed  to 
Slovakia  in  2019,  2020,  2022  and  2023  on  reducing  the  reliance  on  fossil  fuels, 
promoting the green transition  and focusing investments  on research and innovation. 
The plan presents also other green transition measure covered by the RRP, such as a 
reform  of  the  electricity  market,  an  amendment  to  the  Waste  Act,  both  already 
implemented,  and  the  Nature  Protection  Act  and  Water  Act.  To  boost  a  fair  digital 
transition,  Slovakia  included  measures  such  as  an  electronic  invoicing  system  and 
improved  electronic  services  for  the  financial  administration.  These  measures  aim  at 
addressing  tax  evasion  and  promoting  a  client-centred  approach.  These  are  directly 
linked to CSRs advocating a strengthening of tax compliance and digitalisation of tax 
administration, addressed to Slovakia in 2022, 2023 and 2024. The plan also includes 
an investment in research and innovation to support the digitalisation of the economy 
(under the RRP), which intend to address 2019, 2020, and 2024 CSRs on supporting 
research,  innovation,  and  competitiveness.  Additionally,  it  includes  a  reform  to 
establish a centralised platform for the public procurement of IT resources (under the 
RRP), helping to address CSRs in 2019 and 2020 on digital infrastructure and quality 
public services.  

(30)  Concerning  the  common  priority  of  social  and  economic  resilience,  including  the 
European Pillar of Social Rights, the plan includes several measures. To contribute to 
social resilience, a more targeted tax bonus is being implemented, supporting families 
with children with a particular focus on low-income households. This measure intends 
to  address  the  CSRs  in  2022,  2023  and  2024  to  improve  the  effectiveness  of  public 
spending and making the tax mix more supportive of inclusive and sustainable growth. 
Social resilience is coupled with energy transition in the investment concerning home 
renovation for energy poor households aiming to increasing the number of renovated 
homes for people at risk of energy poverty, which intend to address the CSRs of 2019, 
2020, 2022 and 2023. Additionally, Slovakia has included a reform to strengthen the 
inclusion and desegregation in education as part of a new legislative package of school 
laws, and thus intending to address the 2019, 2020 and 2024 CSRs on improving the 
quality  and  inclusiveness  of  education,  especially  for  children  from  disadvantaged 
backgrounds.  Other  measures  improving  social  resilience  include  the  completion  of 
kindergarten capacities (under the RRP), the definition of special education needs and 
preparation  of  methodological  materials  (under  the  RRP),  the  curricular  reform  in 
primary education (under the RRP), all intend to address 2019, 2020 and 2024 CSRs 
on  improving  the  quality  and  inclusiveness  of  education,  enhancing  access  to 
affordable  childcare  and  promoting  integration  of  disadvantaged  groups.  Measures 
addressing  economic  resilience  entail  the  development  of  an  Industrial  Policy  of  the 
Slovak Republic for 2027-2035, which intend to  address CSRs in 2019 and 2024 on 
the need to enhance competitiveness. Furthermore, Slovakia included a reform of the 
governance,  evaluation  and  support  in  science,  research  and  innovation  (under  the 
RRP),  and  an  investment  supporting  the  cooperation  between  companies,  academia 
and R&D organisations, both intend to address similar 2019, 2020 and 2024 CSRs on 
supporting research and innovation, and enhancing competitiveness. Finally, to deliver 
on  the  2019,  2023  and  2024  CSRs  related  to  the  macroeconomic  vulnerabilities  that 
the country is experiencing in relation to the housing market, Slovakia aims to amend 
the  Building  Act,  to  streamline  construction  procedures  and  expand  rental  housing 
availability. It aims also at implementing the Act on State Support for Public Housing 
to increase access to affordable rental options. The plan does not include measures that 

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intend  to  address  the  CSRs  on  the  strengthening  of  the  teaching  of  basic  skills  and 
increasing the participation of children under three in formal childcare (recommended 
in  2024),  and  on  ensuring  liquidity  for  small  and  medium-sized  enterprises 
(recommended in 2020).  

(31)  Concerning  the  common  priority  of  energy  security,  the  plan  includes  a  reform  on 
developing  legislative  proposals  for  the  efficient  implementation  of  hydrogen 
technologies,  in  line  with  the  EU’s  requirements  and  national  priorities,  being  the 
Action Plan for a National Hydrogen Strategy included in the REPowerEU chapter of 
the  RRP.  This  reform  intends  to  address  the  CSRs  that  Slovakia  received  in  2020, 
2022 and 2023 on reducing the overall reliance on fossil fuels. Furthermore, through 
the construction of new renewable electricity sources (under the RRP), Slovakia aims 
to generate 122.4 MW of new electricity. This investment intends to address the 2020, 
2022  and  2023  CSRs  recommending  accelerating  the  deployment  of  renewables. 
Furthermore, Slovakia has included an investment (under the RRP) to modernise the 
distribution energy systems, with a view to facilitating the procedures for connecting 
renewables to the grid, and thus intending to address CSRs in 2020, 2022 and 2023.  

(32)  Concerning the common priority of defence capabilities, the plan includes  a measure 
to  implement  selected  projects,  which  notably  include  the  development  of  wheeled 
armoured  vehicles  8x8  and  of  a  medium-range  air  defence  system,  as  part  of  the 
Ministry of Defence’s long-term development plan by 2035.   

(33) 

In addition, the plan includes a policy measure to replace the existing parental pension 
with  a  mechanism  allowing  for  the  reimbursement  of  part  of  the  tax  paid  to  parents 
that  intends  to  address  the  2019  and  2024  CSRs  on  the  need  to  preserve  the 
sustainability of public finances and reduce costly spending measures. Additionally, a 
measure to reduce the number of civil servants and public sector employees by 5,000 
between 2025 and 2027 will contribute to curb public expenditure (2024 CSR). On top 
of  this,  the  plan  also  contains  a  reform  on  the  central  hospital  management  system 
(under  the  RRP),  which  intends  to  address  2019  and  2020  CSRs  related  to  the 
sustainability of public finances regarding the health sector and the need to strengthen 
the  resilience  of  the  health  sector  ;  a  reform  on  the  introduction  of  the  new  court 
network (under the RRP), which intends to respond to 2019 and 2020 CSRs related to 
the effectiveness of the judicial system, and a measure on the establishment of shared 
service centres (under the RRP) to improve the efficiency of essential public services, 
which  intends  to  address  2020  and  2024  CSRs  on  improving  the  quality  of  public 
services. The plan does not include measures that intend to address the CSR related to 
the 
judicial  and  anti-corruption  system 
the 
(recommended  in  2019  and  2024),  and  to  the  enforcement  of  the  anti-money 
laundering framework (recommended in 2020).  

independence  and 

integrity  of 

(34)  The  plan  provides 

information  on 

the  consistency  and,  where  appropriate, 
complementarity,  with  the  cohesion  policy  funds  and  Slovakia’s  RRP.  Specifically, 
the  plan  includes  an  investment,  contained  in  the  RRP  (investment  4  of  component 
16),  establishing  shared  service  centres  increasing  the  efficiency  and  accessibility  of 
essential  public  services.  Funding  for  the  personnel  capacities  of  the  shared  services 
centres will be secured through a call financed by the cohesion policy funds.  

(35)  The plan provides an overview of the public investment needs of Slovakia  regarding 
the common priorities of the EU. Regarding the common priority of a fair green and 
digital  transition,  including  consistency  with  the  European  Climate  Law,  measures 
include increasing energy efficiency across all sectors and substituting the use of fossil 

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fuels  with  more  sustainable  alternatives,  channelling  investments  into  nuclear,  solar 
and wind power. Investment needs moreover focus on improving the access and use of 
digital  government  services,  in  accordance  with  Slovakia’s  National  Digital  Decade 
Strategic  Roadmap.  To  ensure  social  and  economic  resilience,  Slovakia  plans  to 
gradually  increase  public  expenditure  into  research  and  development  by  2030.  To 
increase  energy  security,  Slovakia  acknowledges  the  need  to  diversify  imports  of 
different  types  of  raw  materials  as  a  medium-term  investment  solution  by  building 
new interconnections and invest in renewable energy sources and nuclear power in the 
long-term. Finally, in order to ensure security, fulfil NATO and EU commitments and 
maintain regional stability, the investment in defence modernisation projects continues 
in  the  country,  with  the  primary  objective  of  providing  new  and  modern  military 
equipment fully compatible with that of NATO member countries. The plan includes 
an  increase  in  defence  spending  to  achieve  a  target  of  2%  of  GDP  alignment  with 
NATO commitments. 

Conclusion of the Commission’s assessment  

(36)  Overall, the Commission is of the view that Slovakia’s plan fulfils the requirements of 

Regulation (EU) 2024/1263.   

OVERALL CONCLUSION   

(37) 

In accordance with Article 17 of Regulation (EU) 2024/1263, the net expenditure path 
as set in the plan should be recommended by the Council to Slovakia. 

HEREBY RECOMMENDS that Slovakia:  

(1) 

Ensure that net expenditure growth does not exceed the maxima established in Annex 
I to this Recommendation.  

In  addition,  the  Council  invites  Slovakia  to  ensure  the  delivery  of  reforms  and  investments 
responding  to  the  main  challenges  identified  in  the  context  of  the  European  Semester,  in 
particular the country-specific recommendations, and addressing the common priorities of the 
Union.   

ANNEX I  
Maximum growth rates of net expenditure  
 (annual and cumulative growth rates, in nominal terms) 
Slovakia 

Years  
Growth rates (%)   Annual  

Cumulative  

2025 
3.8 
10.3 

2026 
0.9 
11.2 

2027 
1.6 
13.0 

2028 
1.5 
14.8 

(*) The cumulative growth rates are calculated by reference to the base year of 2023. 

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Done at Strasbourg, 

For the Council 
The President 

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