COMMISSION STAFF WORKING DOCUMENT 2025 Country Report - Slovakia Accompanying the document Recommendation for a COUNCIL RECOMMENDATION on the economic, social, employment, structural and budgetary policies of Slovakia
Date: 2025-06-04
Institutions: European Commission, Reform and Investment Task Force
Subjects: Slovakia, budget policy, economic policy, economic recovery, economic reform, employment policy, investment, labour market, social policy, stability pact

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 4.6.2025  SWD(2025) 225 final  COMMISSION STAFF WORKING DOCUMENT 2025 Country Report - Slovakia Accompanying the document Recommendation for a COUNCIL RECOMMENDATION  on the economic, social, employment, structural and budgetary policies of Slovakia {COM(2025) 225 final}  
 
 
 
 
 
 
 
 
 
 
 
ECONOMIC DEVELOPMENTS AND KEY POLICY 
CHALLENGES 

Growth prospects are uncertain 
and competitiveness is 
deteriorating 

The  economy  grew  by  2.1%  in  2024,  but 
the outlook remains uncertain. A relatively 
strong  economic  growth  in  2024  was  fuelled 
mainly  by  household  and  public  consumption 
throughout  the  year.  Expectations  for  an 
increase  in  taxes  in  2025  supported  private 
consumption  in  the  last  quarter  of  2024. 
Conversely,  investment  contracted in  both the 
third  and  fourth  quarters  of  2024,  following 
the  robust  expansion  in  2023,  which  was 
mostly  due  to  a  peak  in  absorption  of  EU 
funds.  A  modest  trade  surplus  supported  the 
in  2024,  but 
continuation  of  growth 
geopolitical  tensions  are  likely  to  hinder  its 
sustainability.  Exports  recovered  and  helped 
reduce  Slovakia’s  persistent  current  account 
deficit,  but  inflationary  pressures  and  a  high 
government  deficit  still  pose  a  risk  for  the 
sustainability  of  the  external  position  (1)  GDP 
growth is forecast at 1.5% in 2025 and 1.4% 
in  2026,  as  trade  tensions  erode  export 
activity,  tame  global  demand  and  increase 
uncertainty. Inflation fell to 3.2%  in 2024 but 
is expected to rise to 4.0% in 2025, due to the 
introduction  of  higher  taxes.  The  economic 
outlook  remains  highly  uncertain  in  view  of 
possible  external  shocks, 
including  further 
trade tensions driven by tariffs imposed by the 
US.  

Slovakia’s 
small,  open  and  highly 
industrialised  economy  faces  increasing 
competitiveness  challenges.  The  country’s 
competitiveness  is  weakened  by  low  labour 

(1)  The external position refers to a country’s financial and 
trade balance with the rest of the world, including 
exports, imports, debt and investments.  

productivity  growth,  which  declined  in  2022 
and  somewhat  recovered  in  2023  and  2024. 
The  recovery  in  labour  productivity  did  not 
keep  up  with  increases  in  unit  labour  costs. 
Together  with  a  persistent  shortage  of  skilled 
labour,  the  existing  large  innovation  gap  with 
other  EU  countries,  which  has  widened  in 
recent years (see Annex 3), and the significant 
drop in foreign direct investment (FDI) inflows 
(see  Graph  1.1)  have  further  weakened 
Slovakia’s overall competitive position.  

Graph 1.1: FDI stock (% of GDP) in Slovakia 

Source: Eurostat 

The job market is tight, marked by 
shortages and skills mismatches 

The  job market in  Slovakia remains  tight 
amid  strong  demand.  The  employment  rate 
remained above the EU average in 2024 (78% 
vs  75.9%),  and 
the  unemployment  rate 
reached  a  historic  low  in  Q3-2024  (5.1%,  EU 
average:  5.7%).  However,  the  job  market  in 
Slovakia is very tight and marked by shortages 
in  healthcare  and 
of  workers,  especially 
is 
education,  and  skills  mismatches.  This 
compounded  by  an  ageing  population,  which 
undermines  Slovakia’s  growth  potential  and 
labour productivity. In addition, various groups, 
most  notably  women  and  Roma,  are 
under-represented in the job market, hindering 
output  growth  (see  Annex  10).  -Broad-based 

2 

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and  diversification,  most  notably  in  the  areas 
of  public  administration,  green  energy,  job 
market  and  education,  tax  administration, 
R&D,  innovation  and  health.  Innovative  firms 
also face insufficient access to finance due to 
underdeveloped capital markets (see Section 2 
and  Annex 5).  In  parallel,  to  help  Slovakia 
transition  to  a  modern  economy,  a  critical 
review is needed of the current growth model, 
which 
low-cost 
workforce  and  concentration  of  productivity 
gains  in  the  manufacturing  sector,  which  is 
largely foreign-owned. 

reliant  on  a 

is  heavily 

the 

Slovakia continues to face vulnerabilities 
related  to  competitiveness,  the  external 
the  housing  market  and 
position, 
household debt. Earlier this year, an in-depth 
review  was  carried  out  as  part  of  the 
macroeconomic  imbalance  procedure  (3).  The 
analysis  found 
inflation 
that,  while 
differential  with  the  euro-area  average  has 
narrowed,  it  remains  significant,  weighing  on 
competitiveness.  In  2024,  the  current  account 
deficit worsened somewhat, large government 
deficits continue to pose a risk to the external 
sustainability as well as to fiscal sustainability, 
and  the  current  account  deficit  is  forecast  to 
slightly  increase  again.  Moreover,  after  two 
decades  of  strong  household  debt  growth, 
higher  interest  rates  have  dampened  the 
demand  for mortgages in  the past two  years. 
Demand  is  expected  to  rebound  as  monetary 
policy  has  been  eased.  Policy  progress  to 
tackle these issues has been limited. 

The tax system needs to be made 
fairer and more efficient 

The current tax mix does not sufficiently 
environmental 
utilise 
taxation,  and  people  on  lower  incomes 
face  relatively  high  tax  wedge  (4).  In  the 

property  and 

(3)  In-Depth Review for Slovakia, published on 13 May 

2025, SWD(2025) 125 final.  

(4)  Tax wedge is defined as the ratio between the amount 
of taxes paid by an average single worker and the 
corresponding total labour cost for the employer. 

in 

instance 

disparities 
for 

socio-economic 
regional 
development  – 
to 
related 
demographics  and  the  availability  of  basic 
services  and  jobs  –  further  contribute  to 
uneven  economic  development  across  the 
country.    

Wages  have  grown  faster  than  inflation, 
which  however  remains  high.  Following  a 
decline 
in  2022  and  2023,  real  wages 
increased by 3.8% in 2024 and are forecast to 
increase by 0.9% in 2025. This is the result of 
expected  higher  future  inflation,  which  will 
limit  real  wage  growth  (2).  Despite  wage 
increases driven by rising inflation, which have 
resulted  in  robust  growth  in  unit  labour  costs 
(ULC)  of  5.0%,  this  trend  has  not  led  to  a 
commensurate increase in labour productivity, 
which has experienced only modest growth of 
2.2%. 
losses 
experienced by households between 2021 and 
2023  also  contributed  to  a  significant  decline 
in  real  disposable  household  income.  While 
wages  have  been  increasing  to  compensate 
for the rising inflation, pushing up the growing 
unit  labour  costs  (ULC),  labour  productivity 
growth has been decreasing. 

purchasing 

power 

The 

Structural weaknesses hinder 
Slovakia’s competitiveness and 
productivity 

The 

potential. 

environment, 

Slovakia faces structural challenges that 
undermine  its  productivity  growth  and 
unpredictable 
growth 
regulatory 
administrative 
burdens  and  the  fragmented  governance 
structure heavily impact Slovakia’s capacity to 
effectively 
investment  projects. 
This  hinders,  in  particular,  innovation  and 
diversification  of  the  Slovak  economy,  as 
investments  are  currently  concentrated 
in 
highly  industrialised  manufacturing  sectors, 
especially  the  automotive  industry.  Structural 
reforms  are  needed  to  help  improve  the 
business  environment  and  trigger  innovation 

implement 

(2)  Nominal wages are expected to increase by 5.7% in 

2025. 

3 

 
 
 
aspects 

current  property  taxation  system,  immovable 
property is taxed based on its area rather than 
its  market  value.  This  system  fails  to  capture 
rising  property  values  and  disproportionately 
benefits  owners  of  high-value  properties. 
Incorporating 
that 
value-based 
consider  land  value  into  the  tax  calculation 
mechanism  would  improve  revenue  collection 
and result in a more efficient tax mix. There is 
the  use  of 
also  scope 
for  expanding 
underutilised 
taxation 
instruments, such as waste disposal taxes and 
transport  taxes  (see  Annex  2).  Furthermore, 
the tax wedge is disproportionately higher for 
lower-income  earners  than  for  higher-income 
ones, mainly due to the limited progressivity of 
social 
the 
contributions. Adjusting labour taxes to reduce 
the taxation of earnings from labour for lower-
income  households  could  help  lower  their  tax 
labour  market 
and 
wedge 
participation.  

environmental 

tax  and 

facilitate 

personal 

income 

Slovakia’s fiscal strategy must 
support growth while ensuring 
sustainability 

Despite  the  large  consolidation  package 
announced by the government, additional 
measures will be necessary to correct the 
excessive budget deficit and ensure fiscal 
sustainability.  So  far, 
the  consolidation 
in  2024,  has  heavily 
package,  approved 
focused  on  increases  in  the  value  added  tax 
(VAT),  the  corporate  income  tax  and  the 
financial  transaction  tax.  These  increases  risk 
putting  a  strain  on  consumption  and  reducing 
incentives  to  invest.  Moreover,  higher  taxes 
can  have  an  inflationary  effect  and  further 
recent  VAT 
worsen  competitiveness.  The 
reform  increases  the  complexity  of  the  tax 
system in Slovakia, as in addition to the base 
rate increase from 20% to 23%, a rate of 19% 
(for  groceries  and  electricity  provision)  and  a 
rate of 5% (for essential groceries, medicines, 
books, and other selected goods and services) 
are  applied.  The  reform  also  has  progressive 
lower-income 
distributional 

effects, 

as 

households  benefit  more  from  the  reduced 
rates  for  essential  goods  (5).  The  increased 
corporate  income  tax  for  companies  with  a 
yearly  taxable  income  of  over  EUR 5 million 
and the newly introduced financial transaction 
tax  create  a  significant  tax  burden  for  Slovak 
companies.  It  is  essential  that  consolidation 
measures  preserve  investment  and  ensure  a 
growth-friendly  budget  composition,  helping 
Slovakia remain attractive to investors. 

Government deficit remains 
elevated in 2025 and 2026 

Persistent  spending  measures  keep  the 
government deficit high despite revenue-
boosting  tax  adjustments.  The  general 
government deficit rose slightly from 5.2% of 
GDP  in  2023  to  5.3%  in  2024,  despite  a 
decline in public spending from 48.0% of GDP 
in  2023  to  47.1%  in  2024.  The  decline  in 
public  spending  was  primarily  due  to  lower 
spending  financed  by  EU  sources,  while  most 
national 
remained 
spending  measures 
permanent,  contributing  to  the  higher  deficit. 
Conversely,  government  revenues  experienced 
a  more  significant  decline,  decreasing  from 
42.8%  of  GDP  in  2023  to  41.8%  in  2024, 
primarily  due  to  a  reduced  absorption  of  EU 
funds.  The  government  budget  deficit 
is 
projected  to  decrease  to  4.9  %  of  GDP  in 
2025,  driven  by  the  consolidation  package. 
However,  expenditure-increasing  measures, 
such  as  postponed  delivery  of  military 
equipment,  a  permanent  13th  pension 
payment,  and  higher  spending  on  healthcare 
and military salaries, resulted in only a slightly 
lower public deficit. For 2026, the government 
budget  deficit  is  expected  to  remain  high  at 
5.1%,  as  most  spending  measures  are 
permanent and no new consolidation package 
has been announced. 

(5)  Estimations were performed by the European 

Commission, Joint Research Centre, with the EUROMOD 
tax-benefit microsimulation model. 

4 

 
 
 
Box 1: 

UN Sustainable Development Goals (SDGs) 

Slovakia performs well on some SDG indicators related to environmental sustainability 
(SDGs  6,  11,  15)  but  is  moving  away  from  the  targets  for  some  SDGs  related  to 
macroeconomic stability (SDG 17). 

Although  there  are  signs  that  Slovakia  is  catching  up,  it  is  below  the  EU  average  on 
SDGs related to productivity (SDGs 4, 8, 9), due partly to the relatively low participation 
in and quality of its education system (see Annex 15). 

to 

care 

costs. 

According 

particular  by  rising  ageing  costs  and  an 
unfavourable  initial  budgetary  position  (see 
Annex  1).  The  demographic  developments 
constitute a significant fiscal challenge as they 
lead to higher spending on pensions and, to a 
lesser  extent,  also  on  healthcare  and  long-
term 
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  9.4% 
of GDP in 2024 to 11.3% in 2070, marking a 
significant  long-term  improvement  compared 
the 
to  past  projections 
reintroduction  of 
life 
the 
expectancy  and  the  retirement  age).  However, 
pension  spending  is  still  expected  to  increase 
over  the  short-to-medium  term  due  to  effect 
of demographic trends and other expenditure-
increasing pension measures adopted in 2022. 

to 
link  between 

(notably  via 

The  general  government  debt  is  set  to 
increase  over  the  forecast  period. The 
government  debt-to-GDP  ratio  rose  to  59.3% 
in 2024 due to elevated spending levels and is 
projected to increase further to 60.9% in 2025 
and  63.0%  in  2026,  driven  by  significant 
government deficits. 

In  2024  and  2025,  Slovakia’s  net 
expenditure  is  projected  to  grow  below 
the  maximum  growth. 
In  2024,  net 
expenditure  (6)  in  Slovakia grew  by  5.4%  (see 
Annex  1).  This  increase  is  mainly  driven  by 
strong  expenditure-increasing  discretionary 
measures,  like  higher  social  benefits  and 
support  with  high  energy  prices.  In  2025,  net 
expenditure  is  forecast  by  the  Commission  to 
grow  by  3.8%,  which  is  right  below  the 
maximum  growth  rate  recommended  by  the 
Council (7).  The cumulative growth rate of net 
expenditure in 2024 and 2025 taken together 
is  projected  at  9.3%,  which  is  below  the 
maximum recommended by the Council.  

The  ageing  population  poses  challenges 
for the long-term sustainability of public 
finances. Fiscal  sustainability  risks  remain 
high  in  the  medium  and  long  term,  driven  in 

(6)  Net expenditure is defined in Article 2(2) of Regulation 
(EU) 2024/1263 as government expenditure net of (i) 
interest expenditure, (ii) discretionary revenue 
measures, (iii) expenditure on programmes of the Union 
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-off 
and other temporary measures. 

(7)  Council Recommendation with a view to bringing an end 
to the situation of an excessive deficit in Slovakia 
(C/2025/5039) and Council Recommendation of 21 
January 2025 endorsing the national medium-term 
fiscal-structural plan of Slovakia (OJ C, C/2025/645, 
10.2.2025, ELI: http://data.europa.eu/eli/C/2025/645/oj). 

5 

 
 
 
 
 
 
Box 2: 

Barriers to private and public investment 

Slovakia faces significant barriers to unlocking both public and private investments, hindering its 
economic growth potential and overall competitiveness. Investments are concentrated in highly 
industrialised manufacturing sectors. Key country-specific barriers include: 

• 

• 

Fragmented governance and complex regulatory environment. The complexity of 
administrative  processes  and  the  rapid  pace  of  legislative  changes  create  high 
uncertainty for investments and doing business in Slovakia. The fragmented governance 
structure, in particular at regional and local levels, and regional disparities further limit 
effective planning and implementation of  viable and  strategic investments throughout 
the country. This also slows down the absorption of EU funds. 

Limited  access  to  finance  for  innovative  projects.  The  underdeveloped  capital 
market  and  limited  availability  of  private  equity  financing  and  venture  capital  hamper 
the growth of innovative start-ups and small to medium-sized enterprises. In particular, 
this hinders their ability to scale up and invest in research and development. 

•  Shortage  of  skilled  staff.  The  shortage  of  skilled  staff  and  lack  of  investment  in 
human  capital,  particularly  in  areas  such  as  research  and  development,  limit  the 
potential  for  businesses  to  innovate.  Large  regional  disparities  including  in  education 
outcomes contribute to the challenge. 

These  challenges  also  act  as  a  bottleneck  to  the  implementation  of  EU  funds.  In  addition, 
Slovakia’s  capacity  to  effectively  implement  investment  projects  and  absorb  EU  funds  is  also 
hindered  by  inefficient  public  procurement  processes  and  insufficient  preparation  of 
investment  projects.  This  hinders  Slovakia’s  potential  for 
innovation  and  economic 
diversification.  

The  implementation  of  Slovakia’s  RRP  is  well  under  way  but  faces  several  obstacles  linked  to 
above challenges. At present, Slovakia has fulfilled 33% of the milestones and targets in its RRP, 
with assessment of the fifth payment request ongoing.  

It  remains  important  to  accelerate  the  implementation  of  the  cohesion  policy  programme.  The 
mid-term  review  offers  opportunities  to  speed  up  progress  and  better  address  EU  strategic 
priorities related to competitiveness, defence, housing, water resilience and the energy transition. 

While  Slovakia  has  signalled  interest  in  leveraging  the  Strategic  Technologies  for  Europe 
Platform under cohesion policy, Slovakia can further support the development or manufacturing 
of  critical  technologies  in  the  areas  of  digital  and  deep  tech,  clean  and  resource  efficient 
technologies, and biotechnologies. 

6 

 
 
 
 
 
INNOVATION, BUSINESS ENVIRONMENT AND 
PRODUCTIVITY 

Innovation and digitalisation are 
key to diversifying Slovakia’s 
economy 

in 

in 

and 

and  weak 

lags  behind 

spending 
(R&D), 

Together  with  a 

Slovakia 
terms  of 
digitalisation 
innovation 
performance.  This  is  demonstrated  by  the 
slow adoption of new technologies, low private 
research  and 
and  public 
development 
digital 
infrastructure  and  innovation  output  (such  as 
patents). 
fragmented 
governance  structure  and  a  substandard 
business environment, this hampers Slovakia’s 
competitiveness potential on the global stage. 
Innovation  and  digitalisation  will  need  to  be 
key  drivers  for  growth  in  Slovakia,  helping  to 
diversify 
the  economy  and  maintain  a 
competitive edge (see Section 1). Furthermore, 
promoting  clean  tech  initiatives  and  boosting 
innovation related to the green transition could 
offer  an  opportunity  to  diversify  Slovakia's 
economy by tapping into emerging industries. 

Private  and  public  R&D  expenditure  is 
significantly  below  the  EU  average. 
Private sector R&D expenditure was at a mere 
0.58% of GDP in 2023, significantly below the 
EU  average  of  1.47%.  Public  sector  spending 
was only 0.37% of GDP in 2023, compared to 
the EU average of 0.72% (8). The government 
committed  to  maintain  a  trajectory  of  annual 
increases  in  public  R&D  spending,  also  to 
create  an  opportunity  to  stimulate  further 
private  R&D 
remains 
critically low. The lack of R&D expenditure also 
affects  the  healthcare  sector,  where  Slovakia 

investment,  which 

(8)  Eurostat: 

https://ec.europa.eu/eurostat/databrowser/view/gba_nab
sfin07__custom_15738222/default/table?lang=en. 

reports  among  the  lowest  levels  of  public 
spending in the EU (see Annexes 3 and 14). 

The  adoption  of  digital  technologies, 
especially  by  small  to  medium-sized 
enterprises (SMEs), remains largely below 
the EU average. Slovakia also underperforms 
compared  to  the  EU  when  it  comes  to  the 
adoption  of  advanced  digital  technologies, 
such  as  artificial  intelligence  (AI),  cloud  and 
data analytics. Only 62.9% of SMEs have basic 
digital  intensity,  against  an  EU  average  of 
72.9%  (see  Annex  3).  Some  steps  have  been 
taken 
through 
Recovery  and  Resilience  Facility  investments, 
e.g.  in  projects  aiming  to  develop  and  apply 
top  digital  technologies  and  create  digital 
innovation hubs. However, there is much scope 
for further efforts.  

the  situation 

improve 

to 

Graph 2.1: Slovakia’s performance against two 
2030 digital targets 

Source: Eurostat 

is 

digital 

infrastructure 

is 
Slovakia’s 
sub-par  and  needs  improvement.  Digital 
infrastructure 
lagging,  with  very  high-
capacity  networks  covering  just  69.12%  of 
households  in  2023  compared  to  the  EU 
average  of  78.81%  (see  Annex  4).  Fixed  and 
mobile  network  coverage,  especially  in  rural 
areas, is far below EU targets. The Ministry of 
Investments,  Regional  Development  and 
Informatisation  observed  an  investment  gap 
of 
gigabit 
connectivity  (9),  which  undermines  the  ability 

EUR 500 million 

over 

for 

(9)  As estimated based on the 2024 Geographical Survey. 

7 

10.78%62.90%64.22%27.10%0%10%20%30%40%50%60%70%80%90%Enterprises using AI technologiesSMEs with at least basic levelof digital intensitySlovakia in 2024Still to be achieved by 2030 
 
 
  
 
to  boost  digital  solutions.  This  may  also 
hamper 
the  uptake  of  advanced  digital 
technologies. Efforts to facilitate infrastructure 
deployment  are  ongoing,  such  as  allowing 
fibre  optic  networks  on  existing  poles, 
introducing  a  new  construction 
law,  and 
adopting the Gigabit Infrastructure Act, but the 
effects  of  these  are  yet  to  be  seen.  Prompt 
and  effective  implementation  of  these  new 
measures would be beneficial. 

Strengthened support for SMEs 
could boost innovation and R&D 

intensity 

Slovakia’s  R&D 
is  at  1%, 
compared to the EU average of 2.2%. The 
continued  implementation  of  ongoing  reforms 
and investments is needed to meet the target 
of  2%  R&D  intensity  set  out  in  the  2023 
National  Strategy  for  Research,  Development 
and Innovation.  

SMEs,  highly  prevalent 
in  Slovakia's 
private  sector,  face  resource  constraints 
to invest in R&D. While Slovakia introduced a 
tax  incentive  system  intended  to  stimulate 
R&D  spending  among  businesses,  this  system 
is  more  beneficial  for 
larger  enterprises. 
Government  support  for  R&D  could  be  made 
more  accessible  to  SMEs  by,  for  instance, 
offering  cash  refunds  in  addition  to  existing 
tax  incentives,  or  providing  more  targeted 
competitive grant schemes. Additional support 
can  build  further  on  recent  efforts  under  the 
recovery and resilience plan (RRP), for example 
in the form of financial instruments supporting 
Investment 
innovation  through  the  Slovak 
Holding.  By  facilitating  innovation  in  areas 
such  as  the  green  transition  and  cleantech, 
SMEs  could  play  a  significant  role  in  driving 
sustainable development and contributing to a 
diversified economic landscape. 

The research and innovation environment 
to 
remains  fragmented.  One  measure 
promote 
address 
this  would 
collaboration  between  research 
institutions 
and  the  private  sector.  To  build  critical  mass 
and  drive 
is 
important  to  encourage  mergers  and  pool 
to 
research 

institutions,  while  continuing 

impactful  advancements 

be 

to 

it 

to 

the 

support  quality-related  funding  by  verifying 
excellent  research.  Replicating  best  practices 
and  insights  developed  under  the  RRP,  for 
instance  conducting  international  evaluations 
research 
when  awarding  grants 
community  or  on  knowledge  transfer,  would 
also foster the quality of research outputs and 
increase 
successful 
commercialisation.  Moreover,  anchoring  such 
improvements 
institutional 
framework  would  help  bring  about  a 
streamlined  ecosystem  with  clearly  assigned 
responsibilities,  increased  predictability,  and 
better  incentives  for  the  scientific  community 
to engage in R&D (see Annex 3). 

in  a  binding 

likelihood  of 

their 

Capital market is not sufficiently 
developed to support innovation 

funding 

financing 

corporation 

As  a  result  of  an  underdeveloped  capital 
market,  Slovak  firms  face  insufficient 
access  to  finance.  The  overall  level  of  non-
financial 
represents 
98.7% of GDP, compared to the EU average of 
230.3%  (see  Annex  5).  Furthermore,  Slovak 
firms  rely  disproportionately  more  on  funding 
from banks as opposed to capital markets. For 
start-ups,  market 
is  especially 
important  to  spur  innovation.  The  access  of 
firms  to  household  savings  is  limited  due  to 
the  low  retail  participation  in  capital  markets, 
with  a  relatively  large  share  of  household 
assets  stored  in  cash,  deposits  and  housing, 
contributing to underused market financing. In 
particular,  households  hold  52.1%  of  their 
assets  in  cash  and  deposits,  compared  to  the 
EU  average  of  32.2%.  There  is  scope  for 
increasing the level of direct and indirect retail 
investment  by  improving  financial  literacy. 
Furthermore,  venture  capital  and  private 
equity  are  limited,  particularly  affecting  SMEs 
and  innovative  start-ups.  The  value  of  annual 
venture  capital  investment  stood  at  0.01%  of 
GDP in 2023, compared  to the EU  average of 
0.05%  (see  Annex  5).  Government  initiatives 
that  support  start-up  funding  or  attract 
domestic 
in  private 
equity  and  venture  capital  could  support 
capital  market  development  and  thus  an 
improvement in access to finance.  

institutional 

investors 

8 

 
Slovakia’s complex regulatory 
environment and fragmented local 
governance hinder the business 
environment 

and 

long 

Slovakia’s business environment is one of 
the  least  favourable  in  the  EU,  hindering 
the  country’s  competitiveness.  As  a  result 
administrative 
of 
regulatory 
procedures,  an  unpredictable 
environment,  fast-changing 
legislation  and 
insufficient  investment  planning,  among  other 
things,  Slovakia  has  the  worst  conditions  for 
doing business in the EU (see Annex 4). 

complex 

predictability 

Simplification  of  administrative  and 
regulatory  procedures  and 
increased 
and 
transparency, 
evidence-based  policymaking  are  key  to 
improving  the  business  environment. 
Slovak legislation tends to change rapidly and 
fast-track legislative procedures have become 
increasingly common when adopting new laws 
or  amendments.  For  instance,  in  2017-2021, 
25  business-related  laws  were  changed,  on 
average,  62  times  per  calendar  year  (see 
Annex  4).  At  the  same  time,  the  number  of 
legislative  proposals  between  October  2023 
and February 2025 bypassing standard impact 
assessments  and  stakeholder  consultations 
reached  37%  of  adopted  laws  (see  Annex  4). 
Under  Slovakia’s  better  regulation  framework, 
there is a formal obligation to carry out impact 
assessments  in  various  policy  areas,  among 
other  things.  However,  the  framework  lacks  a 
clear  and  binding  nature,  has  limited  quality 
implemented  effectively.  The 
and 
regulatory  governance  procedures  are  not 
obligatory  for  the  parliament,  which  affects 
the  quality  of  legislation,  as  in  2023,  60%  of 
legislative initiatives were tabled by members 
of  the  parliament  (see  Annex  6).  Despite  the 
introduction  of  several  measures,  such  as  ex-
post evaluations, prevention of gold-plating or 
anti-bureaucratic packages – also contained in 
the  RRP  – 
regulatory 
environment and increase its predictability, the 
overall  improvements  have  been  marginal, 
with  business  and 
in 
Slovakia  significantly  deteriorating  in  2024 
compared to the previous year (see Annex 4). 

labour  regulations 

to  simplify 

is  not 

the 

to 

have 

fiscal 

policies 

received 

effective 

governance 

competitiveness. 

funds.  While  a 

financing,  could  boost 
investments  and 
of 

Fragmented public administration, limited 
transparency 
in  public  procurement 
processes and a lack of sound investment 
planning  pose  serious  challenges  to 
Local 
Slovakia’s 
administration  is  very  fragmented.  There  is  a 
large  variation  in  the  size  of  municipalities, 
hampering 
and 
cooperation, strategic planning and the correct 
implementation  of 
(see 
Annex 6).  Moreover,  in  the  past  few  years, 
municipalities 
additional 
responsibilities  that  were  not  matched  with 
adequate  funding.  A  reform  of  the  local 
governance  structure,  better  streamlining 
the 
powers  and 
effectiveness 
the 
absorption  of 
recent 
amendment  to  the  Public  Procurement  Act 
procurement 
aimed 
procedures  for  municipalities  and  businesses, 
results are yet to be confirmed (see Annex 4). 
Moreover, the changes pose transparency and 
for  below-
risks,  especially 
competition 
threshold  procurement,  making  it  easier  for 
favouritism  to  occur.  Furthermore,  investment 
management  in  Slovakia  is  currently  planned 
for seven-year periods (linked to the timespan 
of  EU  funds)  and  lacks  a  long-term  and 
strategic  vision,  giving 
investment 
certainty to businesses as well as regional and 
local  stakeholders.  These  challenges  are 
especially problematic for small municipalities, 
which need additional training and capacity in 
procuring,  planning  projects  and  investments, 
and applying for EU funds. As the government 
is  currently  working  on  a  national  investment 
strategy  until  2050,  it  is  important  that  a 
cross-party agreement on the strategy will be 
reached,  and  that  the  strategy  is  adopted  in 
good time.  

simplify 

public 

little 

Rule of law concerns have 
increased, and civil service 
reforms threaten stability and 
transparency  

Recent  changes  to  the  civil  service  may 
negatively  affect  the  quality  of  public 
administration.  The  Civil  Service  Council,  an 

9 

 
taken 

framework 

for 
the 
framework  and 
combatting  the  financing  of  terrorism 
call for additional improvements. Slovakia 
has 
to  address 
important  steps 
weaknesses  in  its  framework  for  Anti-Money 
Laundering  and  Combatting  the  Financing  of 
Terrorism 
recently 
(AML/CFT),  notably  by 
amending  their  main  AML  Act  and  also  by 
regularly  reporting  to  the  Commission  on  the 
actions 
2022 
implementation  report  by  the  Council  of 
Europe.  However,  concerns  remain  regarding 
the  supervision  of  Non-profit  organizations 
(NPOs)  and  the  definition  and  monitoring  of 
Virtual  Assets  Providers  (VASPs)  activities  as 
recently  outlined  by  Moneyval,  as  well  as 
beneficial  ownership  information  for  trusts 
and  similar  legal  arrangement,  and  fit  and 
proper’s requirements, in particular.  

following 

taken 

a 

body 

overseeing 

the 
independent 
implementation  of  the  Civil  Service  Act  and 
handling  complaints  from  civil  servants,  was 
dissolved  in  2024.  Amendments  to  the  Civil 
Service  Act  in  2021  concerning  dismissal 
procedures  for  civil  servants  have  raised 
concerns 
and 
transparency of the system. At the same time, 
as  a  result  of  insufficient  training  and  skills 
development  of  civil  servants,  the quality  and 
productivity  of  the  service  remain  rather  low, 
hampering  the  regulatory  environment  (see 
Annex 6). 

regarding 

stability 

the 

to 

judicial  system 

There  are  concerns  over  the  judicial 
system  and,  following  a  series  of  recent 
reforms,  the  institutional  and  analytical 
capacity  and  ability  of  the  police  force 
investigate  and 
and  prosecutors  to 
seriously 
corruption  was 
prosecute 
disrupted in the course of 2024. Concerns 
over  the 
include  missing 
safeguards  regarding  the  dismissal  procedure 
of members of the Judicial  Council. Moreover, 
several  consecutive  amendments 
the 
criminal  code,  reducing  the  sentences  and 
limitation  periods  for  corruption  criminal 
offences,  and  the  dismantling  of  the  Special 
Prosecution  Office  and 
the  police  force 
specialised  in  tackling  corruption  (National 
Crime  Agency)  raised  serious  concerns  about 
legislative 
the 
framework. Subsequent reorganisations of the 
prosecution  and  police  services  led  to  the 
decentralisation 
and 
impacted  the  adequate  follow-up  of  ongoing 
cases,  as  well  as  the  degree  of  specialisation 
and capacity that had been built over previous 
years  also  as  part  of  RRP  investments  (e.g. 
ensuring the recruitment and training of police 
officers in the area of anti-corruption – Annex 
6). These developments can further undermine 
Slovakia’s competitiveness as they threaten to 
hamper 
regulatory 
environment.  As  the  negative  impact  on  legal 
certainty  and  investor  confidence  may  be 
long-lasting,  it  will  be  important  to  restore 
effective  anti-corruption  measures,  including 
deterrence,  investigation,  and  prosecution  of 
high-level corruption.  

robustness  of  Slovakia’s 

investigations 

business 

and 

the 

of 

Despite recent substantial changes made, 
laundering 
the 

anti-money 

Slovak 

10 

 
 
 
 
DECARBONISATION, ENERGY AFFORDABILITY AND 
SUSTAINABILITY 

sectors, 

including 

incentives,  as 

Slovakia  has  recently  taken  measures  to 
support  the  roll-out  of  projects 
in 
strategic 
those 
promoting  the  growth  of  the  green 
economy.  In  March  2024,  Slovakia  adopted 
its framework to support strategic sectors (11). 
As  of  March  2025,  businesses  in  targeted 
areas  are  able  to  benefit  from  increased 
the  government 
financial 
increased  the  intensity  of  investment  support 
for  the  digital,  green,  biotechnology  and 
pharmaceutical  sectors  by  10%  (12).  Although 
an  important  step,  the  support  framework 
could  be  complemented  by  a  transparent 
mechanism to regularly review priority actions, 
high-value 
particularly 
targeting 
manufacturing  and 
in  emerging 
industries.  To  boost  the  effectiveness  of 
investments,  eligible  actions  could  include 
electricity 
infrastructure 
connection  for  businesses)  and  innovation 
investments,  but  also  reskilling  and  advisory 
services to further integrate producers into the 
EU-wide  supply  chains.  There  is  also  further 
scope  for  introducing  an  overarching  net-zero 
policy 
cleantech 
to 
manufacturing. 

framework 

investing 

support 

(digital 

and 

To  address  persistently  high  non-
household  energy  costs  hindering  the 
business  environment,  there  is  scope  to 
scale up renewable energy infrastructure 
investments  and  reform  taxes  and  tariff 
structures.  Wholesale  electricity  prices  were 
the ninth highest in the EU in 2024, averaging 
93 EUR/MWh 
(see  Annex  8).  Regional 
wholesale  prices  also  remained  above  the 

(11)  Act No. 142/2024 Coll. The act enables the designation 
of certain investments as strategic. Such investments 
are to benefit from faster permitting procedures. 

(12)  Act No. 34/2025 Coll. The act increases the intensity of 

investment support by 10 percentage points. 

Supporting the roll-out of 
technologies for the green 
transition could boost economic 
resilience  

the 

large  and 

industrial  sector  has 

labour-intensive 
Slovakia’s 
industrial sector faces several challenges 
to  modernise,  meet  climate  objectives, 
industrial 
and  remain  competitive.  The 
sector  accounts  for  approximately  30%  of 
GDP,  significantly  above  the  EU  average. 
Slovakia  is  a  global  leader  in  per-capita  car 
production. Its automotive industry is primarily 
combustion-based,  but  there  are  emerging 
signs  of  a  shift  towards  electric  vehicle 
production.  At  the  same  time,  Slovakia  also 
has the EU’s highest share of emissions from 
manufacturing (35% – see Annex 7). In recent 
years, 
faced 
increasing  pressure  to  transition  away  from 
to  new  business 
traditional  production 
including  more  automated 
opportunities, 
processes  and 
the  production  of  green 
technologies.  Despite  this,  the  manufacturing 
capacity across net-zero technologies remains 
limited,  accounting  for  less  than  1%  of  the 
EU’s  capacity  for  solar  photovoltaic  modules 
and  around  2%  for  battery  and  storage 
technologies  (see  Annex  7).  Manufacturing  is 
still  heavily  reliant  on  imports  of  critical  raw 
materials,  given  the  country’s  rather 
low 
endowment  of  subsoil  assets  (10),  making 
Slovakia particularly vulnerable to supply chain 
disruptions.  By  gradually  shifting  towards  a 
innovation-driven 
more 
and 
long-term 
economy,  Slovakia  could  boost 
economic  sustainability  and  its  resilience  to 
external shocks.  

diversified 

(10)  https://www.minzp.sk/files/iep/making-slovak-republic-

more-resource-efficient-economy_final.pdf. 

11 

 
 
 
 
7). 

(see 

Annex 

European Power Benchmark in 2024 (13). Also, 
non-household  natural  gas  prices  were  the 
fourth  highest  in  the  EU  in  the  first  half  of 
2024  (14).  The  scope  for  reforming  electricity 
taxation  is  underscored  by  the  significant 
share of taxes and levies in the electricity price 
for  energy-intensive  industries,  amounting  to 
11% 
Furthermore, 
electrification  is  disincentivised  by  Slovakia 
having  one  of  the  EU’s  widest  gaps  between 
electricity  and  gas  prices,  with  electricity 
costing  2.8  times  more  for  energy-intensive 
industries, and 3.1 times for households after 
taxes (see Annex 7). The effective carbon rate 
is  also  lower  than  the  EU  average  (see 
Annex 2  and  8),  driven  by  lower  fuel  excise 
duties.  The  existing  exemption  from  excise 
duty  on  coal  and  natural  gas  also  does  not 
provide  the  right  incentive  for  the  use  of 
cleaner  sources  and  perpetuate  the  use  of 
regulated 
fossil 
electricity  and  gas  prices  for  all  households, 
consumer  engagement  and  energy  efficiency 
investment incentives remain subdued. 

fuels.  Moreover,  with 

The potential of renewable energy 
sources is underused in Slovakia 

In  2024,  renewables  contributed  to  24% 
of  Slovakia’s  electricity  mix,  well  below 
the EU average of 47%.  At the same time, 
Slovakia’s national renewables target for 2030 
–  as  set  out  in  its  draft  updated  national 
energy  and  climate  plan  –  is  23%,  far  below 
the  35%  set  by  the  Energy  Union  governance 
formula  (15).  While  Slovakia  has  recently 
adopted  several  reforms  to  support  the 
roll-out  of  investments  in  renewables  and 
accelerate  permitting  procedures,  some  of 
these  measures  are  yet  to  be  implemented 

(13)  Study on energy prices and costs – evaluating impacts 
on households and industry’s costs – 2024 edition. 
Page 40 (Figure 7). 

(14)  Eurostat (online data codes:nrg_pc_2023). 

(e.g.  acceleration  zones).  More  ambition  is 
needed  also  in  incentivising  grid  investments 
through  regulatory  policies  of  grid  operators. 
Furthermore,  Slovakia  needs  to  take  action  to 
boost  the  support  of  local  communities  for 
right 
renewables  and  ensure 
to 
processes. 
participate 
Furthermore, 
in 
greater 
benefit 
Slovakia  would 
diversification,  as  Russian  crude  oil,  for 
example, still makes up more than 80% of all 
crude  oil  consumed  in  2024  and  around  70% 
of  natural  gas  was  of  Russian  origin  in  the 
same year (see Annex 8). 

fuel  consumption 
from 

in 
fossil 

permitting 

their 

the 

Decarbonising  the  heating  sector 
in 
is  crucial  for  meeting  the 
Slovakia 
country’s  climate  goals  and  reducing 
reliance  on  fossil  fuels,  particularly 
significantly 
natural  gas.  Despite 
decarbonised  electricity  mix  due  to  nuclear 
sources,  the  heating  system  is  still  heavily 
reliant  on  fossil  fuel,  in  particular  imported 
natural  gas  (see  Annex  8).  The  potential  of 
renewable  energy  sources  (e.g.  geothermal), 
clean  technologies  (e.g.  heat  pumps)  and 
energy  efficiency  savings  in  Slovakia’s  large 
district heating networks is underutilised, even 
though 
the  Modernisation  Fund  already 
provides  significant  financial  support  to  this 
sector. At the same time, for components used 
in  heat  pumps  and  geothermal  energy 
applications, Slovakia stands out as a Member 
State with competitive production facilities (16). 
Government  policies,  including  subsidies  and 
incentives,  are  supporting  households  and 
businesses 
in  adopting  greener  heating 
technologies.  However,  challenges  such  as 
high upfront costs and the need to modernise 
to 
heat  distribution 
achieving  the  full  decarbonisation  of  the 
heating sector. Slovakia could consider further 
measures 
high-efficiency 
support 
cogeneration  and  the  modernisation  of  heat 
distribution  and  to  improve  the  integration  of 
renewables into the heating system.   

remain  key  hurdles 

to 

(15)  Commission Recommendation of 18.12.2023 on the 
draft updated integrated national energy and climate 
plan of Slovakia covering the period 2021-2030 and on 
the consistency of Slovakia’s measures with the Union’s 
climate-neutrality objective. 

(16)  European Commission: Directorate-General for Energy 
and ECORYS, The net-zero manufacturing industry 
landscape across Member States – Final report, 
Publications Office of the European Union, 
2025, https://data.europa.eu/doi/10.2833/2249632. 

12 

 
 
 
Clean transport infrastructure 
development lags behind 

Graph 3.1: Zero-emission passenger cars in 
2023 (% of new registered vehicles) 

sector 

struggles  with 

large  automotive 

industry 
Slovakia’s 
faces  challenges 
in  promoting  zero-
emission  vehicles  domestically.  Despite 
the  Slovak 
export-driven, 
being  highly 
automotive 
low 
consumer  interest  in  zero-emission  vehicles 
within  the  country.  Zero-emission  vehicles 
make  up  only  2.9%  of  new  car  registrations 
(see Graph 3.1 and Annex 7), placing Slovakia 
among  the  last  EU  countries  in  terms  of 
deployment  of  zero-emission  road  transport. 
Therefore,  the  low  demand  for  these  vehicles 
may  hinder  the  future  competitiveness  of 
Slovakia’s  automotive  sector  on  its  domestic 
market  as  the  sector 
increasingly  shifts 
towards  manufacturing  only  zero-emission 
vehicles. While the uptake is slowly improving 
thanks  to  recovery  and  resilience  plan  (RRP) 
the 
reforms,  such  as 
Electromobility  Action  Plan,  structural  issues 
such  as 
remain, 
particularly due to the slow implementation of 
incentives  from  the  action  plan  and  low 
affordability  of  zero-emission  vehicles  for 
individuals  and  companies.  Similarly, 
the 
deployment  of  recharging  and  hydrogen-
refuelling infrastructure is also lagging, as the 
rate of deployment of both solutions is equally 
one  of  the  lowest  in  the  EU.  Although  an 
investment 
recharging  and  hydrogen-
refuelling  infrastructure  is  planned  under  the 
RRP,  this  will  be  insufficient  to  fully  inspire 
significant  further  investments  by  the  private 
sector  in  such  infrastructure  and  to  meet 
requirements  set  by  EU  legislation.  Slovakia 
could consider further financial support for the 
uptake  of  zero-emission  infrastructure  and 
incentives  for  private  companies  to  invest  in 
the expansion of public infrastructure. 

the  adoption  of 

low  domestic 

interest 

in 

Source: Eurostat 

for 

both 

railway 

is  slow 

passenger 

infrastructure 

Railway  transport  infrastructure  lacks 
efficient  governance  and 
in 
modernisation. This is despite some progress 
in  recent  years  in  increasing  the  amounts 
allocated  for  financing  the  operation  of 
infrastructure  and  for  investment  projects. 
is 
State-owned 
modernising  at  a  slow  pace  and  remains 
unattractive 
and 
commercial  use.  Slovakia  currently  lacks  a 
centralised  approach  to  strategically  ensure 
financing  of  renovations  and  upgrades  of 
national transport infrastructure (see Annex 7). 
A  centralised  national 
fund  could  help 
accelerate medium- to long-term planning and 
financing  of  key  transport  investments.  This 
could be accompanied by a reform of national 
to 
railway 
in 
accelerate  and  streamline 
modernising 
rail 
infrastructure. 

infrastructure  management, 

investments 
digital 

physical 

and 

Nature-based solutions are key to 
improving Slovakia’s water 
resilience 

The  quality  of  Slovak  surface  water 
bodies  is  deteriorating  as  a  result  of 
inadequate water management measures. 
The assessment of Slovakia’s third river basin 
management  plans  showed  that  the  number 
of  surface  water  bodies  classified  as  having 
good 
(or  better)  ecological  status  has 
decreased  significantly  from  56%  in  2015  to 
41% in 2021 (see Annex 9). This pressure has 
been  caused  by  an  increased  number  of 
extreme weather events, excessive amounts of 

13 

2,90510152025303540SEDKFINKLUMTATBEIEDEPTFREUROSILVLTEEESCYHUELBGITPLCZSKHR% 
  
and 

risks,  which 

pollutants and frequent changes to the shape 
and  flow  of  water  bodies.  The  increasing 
number of areas that are affected by drought 
as well as floods (e.g. in September 2024) also 
demonstrates the urgency for increasing water 
resilience.  Yet, 
in  2023,  Slovakia’s  draft 
updated  national  energy  and  climate  plan  did 
not take account of relevant and acute climate 
risks 
vulnerabilities 
jeopardising  the  achievement  of  energy  and 
climate mitigation objectives. Improving water 
bodies’  status  and  increasing  resilience  to 
improving 
floods  and  droughts 
sustainable 
and 
prioritising  nature-based  solutions  and  river 
restorations  over  constructing  new  water 
dams  and  other  ‘grey  infrastructure’.  Even 
though 
includes  some 
measures  on  revitalisation  of  watercourses, 
these  are  not  sufficient  to  address  the 
challenges.  

water  management 

the  Slovak  RRP 

require 

14 

 
 
 
 
SKILLS, QUALITY JOBS AND SOCIAL FAIRNESS 

Staff and skills shortages put 
brakes on growth 

Addressing  staff  and  skills  shortages 
through targeted upskilling and reskilling 
would boost productivity and help deliver 
on  the  green  and  digital  transitions. 
Shortages  of  workers 
in  Slovakia  are 
particularly  severe  in  construction,  industry 
and  services,  with  education  and  healthcare 
services being particularly understaffed. At the 
same  time,  there  is  a  significant  shortage  of 
workers  with  specific  skills,  especially  green 
and  digital.  Slovakia  lacks  ICT  specialists,  and 
the share of people with at least basic digital 
skills  remains  low:  it  decreased  to  51.3%  in 
2023  (see  Annex  13),  which  is  still  below  the 
EU  average  of  55.6%.  Efforts  are  particularly 
needed  to increase  the  currently low  share  of 
technology, 
students  enrolled 
engineering 
(STEM) 
programmes  as  this  share  was  at  21.8%  in 
2022  (against  an  EU  average  of  27.1%). 
Targeted reskilling and upskilling measures are 
thus  crucial  for  adapting  to  the  changing  job 
the 
market 
diversification of the Slovak economy. 

and  mathematics 

in  science, 

promoting 

demands 

and 

Targeted  and  effective  active 
labour 
market  policies  (ALMPs),  combined  with 
more 
flexible  working  arrangements 
could  encourage  more  people  to  work  or 
look  for  a  job  and  reduce  shortages  of 
workers.  While  the  overall  unemployment 
rate  has  been  declining  in  recent  years,  long-
term and youth unemployment remain high. At 
the same time, the unemployment rate among 
people  from  disadvantaged  groups,  such  as 
the  marginalised  Roma  communities,  rose  to 
53.4%,  against  an  EU  average  of  19%,  in 
2022  (see  Annex  10).  Slovakia  has  very  low 
investments in  ALMPs,  with  a  substantial  part 
of  investments  financed  from  cohesion  policy 

funds.  These  measures  fail  to  sufficiently 
address  the  needs  of  the  under-represented 
and  most  vulnerable  groups  in  the  country, 
such as Roma, young people, women and long-
term unemployed people (see Annex 10).  

Insufficient childcare makes it 
more difficult for people to work 
or look for a job 

The  lack  of  childcare  for  children  under 
the  age  of  3  and  the  limited  availability 
of  flexible  work  arrangements  make  it 
more  difficult  for  women  and  parents  to 
work  or  look  for  a  job.  In  2024,  the 
enrolment  rate  of  children  under  3  in  early 
childhood  education  and  care  increased  to 
5.1% but remains far below the EU average of 
39.2% (17). The situation is even more serious 
from  marginalised  Roma 
for 
children 
limited  participation  of 
communities.  The 
is 
in  formal  childcare 
children  under  3 
attributed  to  the  generous  parental  leave 
periods,  which  discourage  women 
from 
reintegrate  into  the  job  market,  and  the 
insufficient  availability  of  affordable  high-
quality childcare facilities (see Annex 10). As a 
result, the rate of women  who are working or 
looking  for  a  job  is  relatively  low  in  Slovakia. 
More  efforts  to  increase  the  availability  of 
childcare facilities and promote the enrolment 
of  children  under  3  would  not  only  contribute 
to  increasing  the  rate  of  women  who  are 
working  or  looking  for  a  job,  but  also  to 
facilitating  long-term  skills  development.  At 
the same time, introducing more flexible work 
arrangements  would  incentivise  parents  to 
work  more.  For  instance,  supporting  part-time 
employment  and  revising  the  tax  system,  in 
particular  by  reducing  the  cost  of  part-time 

(17)  Eurostat. 

15 

 
 
 
workers for employers, could help get parents 
of  young  children 
into  work.  To  further 
increase  the  supply  of  workers,  implementing 
measures  in  the  RRP  to  attract,  for  example, 
doctors  and  other  healthcare  workers  will  be 
important. This could be done, for instance, by 
simplifying  procedures  for  the  recognition  of 
degrees  and  work  experience  and  by 
further 
facilitating 
efforts are needed to train and attract workers 
in  sectors  where  it  is  most  difficult  to  find 
qualified applicants. 

integration.  However, 

Challenges in the education 
system weaken basic skills 
performance 

from 

children 

A  shortage  of  teachers,  insufficient  in-
service  training  and  support  to  teachers, 
long-term  underfunding  of  the  education 
system, and the low attractiveness of the 
teaching 
pupils’ 
profession  worsen 
performance  in  basic  skills.  Relatively  low 
renumeration, 
insufficient  access  to  high-
quality  continuing  professional  development 
and  a  high  administrative  burden  make  the 
teaching profession unattractive, with negative 
consequences  for  the  quality  of  education. 
disadvantaged 
Many 
backgrounds,  including  from  the  marginalised 
Roma  communities,  face  significant  socio-
economic 
their 
educational  outcomes  (see  Annex  12).  In  the 
2022  OECD  PISA  survey,  33.2%  of  Slovak 
students  underperformed 
in  mathematics, 
35.4%  in  reading  and  30.6%  in  science  (EU 
and  24.2%, 
averages:  29.5%,  26.2% 
highest 
respectively), 
underachievement 
EU. 
Nevertheless,  the  ongoing  curricular  reform, 
supported by the RRP, should ensure improving 
basic skills, particularly for maths and reading. 
The  success  of  the  curricular  reform  will  also 
depend  on  how  teachers  are  prepared  and 
supported  in  implementing  it.  Low  basic  skills 
are also a concern among adults, as results of 
(18)  show  a 
the  Survey  of  Adult  Skills 

challenges 

hindering 

the 
in 

among 

rates 

the 

between 

significant  decline  in  literacy  and  numeracy 
performance 
and 
2022/2023,  with  a  growing  share  of  low-
performing  adults  and  a  shrinking  share  of 
high performers. 

2011/2012 

Social inclusion could be 
strengthened, and the availability 
and accessibility of housing 
increased 

The  risks  of  poverty  and  social  exclusion 
have  been  increasing  already  since  2020 
(see  Annex  11).  More  action  is  needed  to 
reach  the  national  2030  poverty  reduction 
target. The rate of children who are at risk of 
poverty  or  social  exclusion  dropped  below  the 
EU average but remains relatively high (22.6% 
vs  EU  24.2%  in  2024  –  see  Annex  11). 
Challenges surrounding poverty are marked by 
regional  disparities,  with  the  eastern  part  of 
the  country  experiencing  the  most  significant 
challenges. With the support from the RRP and 
the  European  Social  Fund  Plus,  several  policy 
measures  are  being  implemented  to  reduce 
the  segregation  of  Roma  in  education,  for 
example  by  introducing  a  legal  definition  of 
segregation 
education.  Nonetheless, 
challenges remain, especially at local level.  

in 

The  supply  of  social  housing  is  low.  Only 
1.6%  of  the  housing  stock  is  dedicated  to 
social  rental  housing.  As  the  most  vulnerable 
people  struggle  to  access  housing,  increasing 
public  support  for  the  construction  of  social 
housing  would  be  important  to  address  this 
(see  Annex  11).  The  expansion  of  the  social 
housing  stock  in  Slovakia  could  benefit  more 
from  the  experience  of  non-governmental 
organisation  and  social  enterprises  to  make 
housing  projects  more  inclusive,  for  example 
by  easing  the  eligibility  requirements  for  the 
most vulnerable people and by complementing 
the  housing  with  the  necessary  supporting 
services  (psychological,  social,  financial  care). 
Slovakia  could  scale  up  and  mainstream 

(18)  OECD (2024), Do adults have the skills they need to 

thrive in a changing world? Survey of Adult Skills 2023, 

OECD Publishing, 
Paris, https://doi.org/10.1787/b263dc5d-en. 

16 

 
 
 
 
improving 
Simultaneously, 
functions. 
preventive  care  services  is  important  to lower 
mortality  from  preventable  causes  and  to 
reduce healthcare costs. 

existing pilot projects funded by the European 
Social  Fund  Plus  that  combine  the  easing  of 
eligibility  requirements  and  the  provision  of 
social  services  to  deprived  tenants.  At  the 
same  time,  following  a  period  of  slower 
mortgage  growth,  the  growth  rate  of  house 
prices  has  gradually  picked  up,  hampering 
housing affordability. The decline in residential 
construction  limits  the  supply  of  housing, 
putting upward pressure on house prices. 

The quality and sustainability of 
the healthcare system can be 
improved 

to 

The  lack  of  healthcare  professionals  and 
the  ageing  workforce  pose  serious 
challenges 
the  sustainability  of 
Slovakia’s healthcare system. Slovakia has 
a lower density of healthcare workers than the 
EU  average,  with  3.7  doctors  and  5.7  nurses 
per 1 000 people in 2022, compared to the EU 
averages  of  4.2  and  7.6,  respectively  (see 
Annex  14).  Additionally,  23.7%  of  nurses  are 
nearing  retirement,  which  will  exacerbate  the 
shortage. The efforts to increase enrolment in 
healthcare studies, improve working conditions 
and  modernise  infrastructure  appear  to  be 
very limited compared to the system’s needs. 

to 

an 

risk 

additional 

Persisting  inefficiencies  in  the  hospital 
sector  and  a  lack  of  disease  prevention 
the 
pose 
sustainability  of  the  healthcare  system. 
By  the  end  of  2023,  Slovakia’s  13  largest 
state  hospitals  were  facing  significant  debt, 
with an average delay in bill payments of 400 
days.  Financial  constraints  and  late  payments 
hinder  efforts  to  boost  efficiency  gains  in 
healthcare.  Moreover,  in  2022,  only  2.0%  of 
Slovakia’s 
total  health  expenditure  was 
allocated  to  prevention,  far  below  the  EU 
average  of  5.5%.  Slovakia  also  reports  some 
of  the  highest  rates  of  treatable  mortality  in 
from  cardiovascular 
the  EU,  particularly 
diseases  and  cancer.  There 
is  significant 
potential  to improve the cost-effectiveness of 
the  healthcare  system  by  optimising  resource 
allocation,  further  digitalising 
the  health 
system, and further centralising administrative 

17 

 
 
 
KEY FINDINGS 

To  boost  competitiveness,  sustainability  and 
social fairness, Slovakia would benefit from:  

the 

including 

•  accelerating  the  implementation 
of  the  recovery  and  resilience 
REPowerEU 
plan, 
chapter; 
implementing 
cohesion policy, taking advantage of 
the  opportunities  under  the  mid-term 
review  and  making  optimal  use  of  EU 
instruments,  including  InvestEU  and 
STEP, to improve competitiveness; 

swiftly 

•  making  the  tax  system  fairer  and 
more  efficient  by:  (i) 
integrating 
value-based  aspects,  such  as  land 
value,  into  the  calculation  of  property 
taxation; 
strengthening 
environmental  taxes;  and (iii)  reducing 
the  high  taxes  on  wages,  in  particular 
for people on lower incomes; 

(ii) 

•  supporting the housing supply and 
expanding  the  rental  market  by 
streamlining  the  process  of  obtaining 
building 
reducing 
administrative  burdens,  while  taking 
into consideration vulnerable groups in 
state-supported housing programmes; 

permits 

and 

recent 

growth 
the 

•  ensuring  that  government  policies 
to  reduce  the  deficit  and  debt 
by: 
supports 
(i) complementing 
tax 
increases with measures that preserve 
the 
(ii) 
investment; 
efficiency  of  public  spending, 
in 
particular  in  healthcare;  (iii)  avoiding 
excessive  tax  burdens  on  businesses; 
and  (iv)  maintaining  a  growth-friendly 
budget composition;  

increasing 

•  boosting 

innovation 

and 
digitalisation by: (i) increasing public 
investment; 
and 
private 
business-science 
(ii) encouraging 

R&D 

18 

(iii) 

tax 

improving 

linkages; 
financial 
support and exploiting the potential of 
R&D 
SMEs; 
incentives 
(iv) strengthening digital infrastructure, 
including  by  rolling  out  very  high-
and 
capacity 
(v) supporting 
of 
advanced digital technologies;  

networks; 

adoption 

digital 

SME 

for 

• 

(i) 

and 

the 

business 
improving 
simplifying 
environment  by: 
regulatory 
administrative 
legislative 
(ii)  ensuring 
procedures; 
stability,  transparency  and  use  of 
evidence  through  a  more  effective 
framework; 
better 
and 
(iii) boosting 
competition in public procurement; and 
(iv) strengthening investment planning; 

transparency 

regulation 

•  strengthening  governance  and 
anti-corruption  measures 
by 
reforming 
governance 
structure, 
service 
the 
stability, 
independence  and  capacity  of  law 
enforcement to fight corruption; 

the 
ensuring 
and 

civil 
restoring 

local 

• 

improving  access  to  finance  by 
supporting  the  development  of  capital 
markets,  increasing  retail  investment 
and  expanding  venture  capital  and 
private  equity  to  support  SMEs  and 
start-ups; 

•  making 

further 

progress 

innovate 

to 
decarbonise, 
and 
diversify the economy by reforming 
electricity  and  carbon  taxation  to 
electrification, 
incentivise 
strengthening 
legislative  and 
investment  framework  for  production 
of  clean  and  renewable  technologies, 
and  supporting  decarbonisation  of  the 
sectors, 
heating 

transport 

and 

the 

 
 
including  for  zero-emission  vehicle 
infrastructure; 

• 

increasing  climate  and  water 
resilience  by  improving  sustainable 
water  management  and  prioritising 
nature-based 
river 
restorations; 

solutions  and 

•  addressing 

labour  and 

skills 
shortages by: (i) expanding green and 
digital  skills  training; (ii)  strengthening 
active labour market policies for  long-
term  unemployed  people,  Roma, 
women  and  parents  with  young 
children;  (iii)  introducing  more  flexible 
(iv) promoting 
work  arrangements; 
training and support for recruiting and 
retaining healthcare professionals and 
teachers; (v) tackling the low uptake of 
early childhood education and care for 
children  under 
the  age  of  3; 
(vi) increasing  enrolment  in  science, 
and 
technology, 
mathematics 
education; 
(vii) improving  teacher  support  and 
training  to  strengthen  basic  skills  for 
pupils;  and  (viii)  expanding  preventive 
healthcare measures. 

engineering, 
(STEM) 

19 

 
 
ANNEXES 

 
 
 
 
LIST OF ANNEXES 

Fiscal 

A1.  Fiscal surveillance and debt sustainability 

A2.  Taxation 

Productivity 

A3. 

Innovation to business 

A4.  Making business easier 

A5.  Capital markets, financial stability and access to finance 

A6.  Effective institutional framework 

Sustainability 

A7.  Clean industry and climate mitigation 

A8.  Affordable energy transition 

A9.  Climate adaptation, preparedness and environment 

Fairness 

A10.  Labour market 

A9.  Social policies 

A12.  Education and skills 

A13.  Social Scoreboard 

A14.  Health and health systems 

Horizontal 

A15.  Sustainable development goals 

A16.  CSR progress and EU funds implementation 

A17.  Competitive regions 

LIST OF TABLES 

General government balance and debt 
Net expenditure growth 
Net expenditure (outturn and forecast), annual and cumulated deviations vis-à-vis the recommendation 
Defence expenditure 

A1.1. 
A1.2. 
A1.3. 
A1.4. 
A1.5.  Macroeconomic developments and forecasts 
A1.6. 
A1.7. 
A1.8. 
A1.9. 

General government budgetary position 
Debt developments 
RRF – Grants 
Projected change in age-related expenditure in 2024-2040 and 2024-2070 

23 

26 

26 

33 

36 

36 

41 

47 

55 

61 

61 

68 

75 

82 

82 

87 

91 

95 

96 

99 

99 

101 

109 

27 
27 
28 
28 
29 
29 
30 
30 
31 

 
 
 
Financial indicators 
Slovakia. Selected indicators on administrative burden reduction and simplification 
Digital Decade targets monitored through the Digital Economy and Society Index 
Key clean industry and climate mitigation indicators: Slovakia 
Key Energy Indicators 
Key indicators tracking progress on climate adaptation, resilience and environment 

A1.10.  Fiscal Governance Database Indicators 
A2.1. 
Taxation indicators 
A3.1. 
Key innovation indicators 
A4.1.  Making Business Easier: indicators. 
A5.1. 
A6.1. 
A6.2. 
A7.1. 
A8.1. 
A9.1. 
A13.1.  Social Scoreboard for Slovakia 
A14.1.  Key health indicators 
A16.1.  Selected EU funds with adopted allocations - summary data (million EUR) 
A16.2.  Summary table on 2019-2024 CSRs 
A17.1.  Selection of indicators at regional level in Slovakia 

LIST OF GRAPHS 

Retail energy price components for household and non-household consumers, 2024 

Tax revenue shares in 2024 
Tax wedge for single and second earners, % of total labour costs, 2024 
Slovakia’s share of scientific publications among the top 10% most cited as a percentage of its total scientific publications 
Business expenditure on R&D as a percentage of GDP in the Visegrad countries 

A2.1. 
A2.2. 
A3.1. 
A3.2. 
A4.1.  Making Business Easier: selected indicators. 
A5.1. 
Net savings-investment balance 
A5.2. 
International investment position 
A5.3. 
Capital markets and financial intermediaries in Slovakia 
A5.4. 
Composition of NFC funding as % of GDP 
A5.5. 
Composition of household financial assets per capita and as % of GDP 
A6.1. 
Trust in justice, regional / local authorities and in government 
A6.2. 
Indicators of Regulatory Policy and Governance (iREG) 
A7.1. 
GHG emission intensity of manu-facturing and energy-intensive sectors, 2022 
A7.2. 
Greenhouse gas emissions in the effort sharing sectors, 2005 and 2023 
A7.3.  Municipal waste treatment 
A8.1. 
A8.2.  Monthly average day-ahead wholesale electricity prices and European benchmark natural gas prices (Dutch TTF) 
A8.3. 
A9.1. 
A9.2. 
A10.1.  Key rates: activity, unemployment, long-term unemployment, youth unemployment, NEETs 
A10.2.  Youth: in education and training, employment rate, unemployment rate, unemployment-to-population ratio, NEET 
A10.3.  Employment by type (permanent, temporary, self-employed), year-on-year changes 
A9.1. 
A12.1.  Early school leavers, not in education, employment or training (NEET) and tertiary attainment 
A12.2.  Change in the number of students enrolled in tertiary education and in STEM fields (ISCED 5-8) in Slovakia, 2017-2023 
A14.1.  Life expectancy at birth, years 
A14.2.  Treatable mortality 
A15.1.  Progress towards the SDGs in Slovakia 
A16.1.  Distribution of RRF funding in Slovakia by policy field 
A16.2.  Distribution of cohesion policy funding across policy objectives in Slovakia 
A17.1.  GDP per head in purchasing power standard (PPS) 
A17.2.  Labour productivity per hour 
A17.3.  Access to healthcare and primary education in rural areas, 2023 

Slovakia's installed renewable capacity (left) and electricity generation mix (right) 
Direct dependency(1) on ecosystem services(2) of the gross value added generated by economic sector in 2022 
Investment needs and gaps in EUR million, in 2022 constant prices 

At-risk-of-poverty or social exclusion rate and its components (AROP, AROPE, SMSD, LWI) 

LIST OF MAPS 

A17.1.  Regional Competitiveness Index 2.0, 2022 edition 

24 

32 
33 
40 
46 
53 
56 
58 
67 
74 
81 
95 
97 
104 
105 
110 

34 
35 
37 
37 
43 
47 
47 
48 
51 
52 
55 
55 
64 
65 
66 
68 
69 
71 
78 
78 
83 
85 
86 
89 
92 
93 
96 
96 
99 
102 
102 
109 
109 
111 

110 

 
 
 
25 

 
 
 
 
FISCAL 
ANNEX 1: FISCAL SURVEILLANCE AND DEBT SUSTAINABILITY 

This  Annex  contains  a  series  of  tables  relevant  for  the  assessment  of  the  fiscal  situation  in  Slovakia, 
including  how  Slovakia  is  responding  to  Council  recommendations  issued  under  the  reformed  Economic 
Governance Framework.  

The  reformed  framework,  which  entered  into  force  on  30  April  2024(19),  aims  to  strengthen  debt 
sustainability  and  promote  sustainable  and  inclusive  growth  through  growth-enhancing  reforms  and 
priority investments. The medium-term fiscal-structural plans (hereinafter, MTPs or plans) constitute the 
cornerstone  of  the  framework,  setting  the  budgetary  commitment  of  Member  States  over  the  medium 
term. The latter is defined in terms of net expenditure growth, which is the single operational indicator for 
fiscal surveillance.  

Slovakia submitted its plan on 15 October 2024. The plan covers the period until 2028, presenting a fiscal 
adjustment  over  four  years.  On  21  January  2025,  the  Council  adopted  the  Recommendation  endorsing 
Slovakia’s  (20).  On  21  January  2025  the  Council  also  adopted  a  Recommendation  under  Article  126(7) 
TFEU to correct the excessive deficit in Slovakia(21). The corrective net expenditure path recommended by 
the Council under the excessive deficit procedure is consistent with the path set out in the plan.  

The  assessment  of  the  implementation  of  the  Council  Recommendation  to  correct  the  excessive  deficit 
and  endorsing  the  Slovakia’s  plan  is  carried  out  on  the  basis  of  outturn  data  from  Eurostat  and  the 
Commission Spring 2025 Forecast and taking into account the Annual Progress Report (APR), that Slovakia 
submitted on 30 April 2025. Furthermore, given Slovakia’s request to activate the National Escape Clause 
(22)  in  accordance  with  the  Commission  Communication  of  19  March  2025(23),  the  assessment  also 
considers, as appropriate, the projected increase in defence expenditure based on the Commission Spring 
2025 Forecast.  

The Annex is organised as follows. First, developments in government deficit and debt are presented 
based  on  the  figures  reported  in  Table  A1.1.  Then,  the  assessment  of  the  implementation  of  the 
Council Recommendation to correct the  excessive deficit and of the Council Recommendation 
endorsing  the  plan  follows,  based  on  the  relevant  figures  presented  in  Tables  A1.2  to  A1.8,  including 
data on defence expenditure. 

The Annex also provides information on the cost of ageing and the national fiscal framework. Fiscal 
sustainability risks are discussed in the Debt Sustainability Monitor 2024.(24) 

(19)  Regulation (EU) 2024/1263 of the European Parliament and of the Council (EU) on the effective coordination of economic policies 
and on multilateral budgetary surveillance, together with the amended Regulation (EC) No 1467/97 on the implementation of the 
excessive deficit procedure, and the amended Council Directive 2011/85/EU on the budgetary frameworks of Member States are the 
core elements of the reformed EU economic governance framework. 

(20)  OJ C, C/2025/645, 10.2.2025, ELI: http://data.europa.eu/eli/C/2025/645/oj. 

(21)  Council Recommendation with a view to bringing an end to the situation of an excessive deficit in Slovakia, C/2025/5039. 

(22)  On 30 April 2025, Slovakia requested to the Commission and to the Council the activation of the National Escape  Clause. On this 
basis, the Commission adopted a Recommendation for a Council Recommendation allowing Slovakia to deviate from, and exceed, 
the net expenditure path set by the Council, COM(2025)614. 

(23)  Communication  from  the  Commission  accommodating  increased  defence  expenditure  within  the  Stability  and  Growth  Pact of  19 

March 2025, C(2025) 2000 final. 

(24)  European Commission (2025) ‘Debt Sustainability Monitor 2024,’ European Economy-Institutional Papers 306. 

26 

 
 
 
 
Developments in government deficit and debt  

Slovakia’s government deficit amounted to 5.3% of GDP in 2024. Based on the Commission’s Spring 2025 
Forecast, it is projected to decrease to 4.9% of GDP in 2025. The government debt-to-GDP ratio amounted 
to 59.3% at the end of 2024 and, according to the Commission, it is projected to increase to 60.9% end-
2025.  The  high  debt  in  2025  results  primarily  from  accumulated  high  primary  deficits  in  the  previous 
years that more than compensate the favourable interest-growth-rate differential. 

Table A1.1:  General government balance and debt 

Source:  Commission Spring 2025 Forecast (COM), Annual Progress Report (APR) 

Developments in net expenditure  

The  net  expenditure(25)  growth  of  Slovakia  in  2025  is  forecast  by  the  Commission(26)  to  be  below  the 
recommended  maximum.  Considering  2024  and  2025  together,  the  cumulative  growth  rate  of  net 
expenditure is also projected to be below the recommended maximum cumulative growth rate. The Annual 
Progress  Report  (APR)  presents  a  lower  net  expenditure  growth  rate  of  3.0%  for  2024  than  the 
Commission's estimate, due to the APR assuming a lower level of EU-funded expenditures for 2023 than 
in the validated outturn data from Eurostat. This assumption leads to higher net expenditure in the APR, 
resulting in a lower growth rate for 2024 and subsequently lower cumulative growth rate estimates.  

Table A1.2:  Net expenditure growth 

(*) The cumulative growth rates are calculated by reference to the base year of 2023. 
Source: Council Recommendation to correct the excessive deficit in Slovakia. Annual Progress Report (APR), and Commission's 
calculation based on Commission Spring 2025 Forecast (COM).  

General government defence expenditure in Slovakia amounted to 1.4% of GDP in 2021, 1.0% of GDP in 
2022 and 1.2% of GDP in 2023(27). According to the Commission 2025 Spring Forecast,  expenditure on 
defence is projected at 1.3% of GDP in 2024 and 2.3% of GDP in 2025. 

(25)  Net expenditure is defined in Article 2(2) of Regulation (EU) 2024/1263 as government expenditure net of (i) interest expenditure, 
(ii) discretionary revenue measures, (iii) expenditure on programmes of the Union 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-off and other temporary measures.  

(26)  Commission Spring 2025 Forecast, European Economy-Institutional paper 318, May 2025. 

(27)  Eurostat, government expenditure by classification of functions of government (COFOG). 

27 

2024OutturnAPRCOMAPRCOM1General government balance% GDP-5.3-4.9-4.9-4.5-5.12General government gross debt% GDP59.361.160.963.363.0Variables20252026RECAPRCOMRECAPRCOM2024n.a.3.0%5.4%n.a.n.a.n.a.20253.8%3.6%3.8%10.3%6.6%9.3%20260.9%2.3%3.9%11.2%n.a.13.6%AnnualCumulative*Growth rates 
 
                                         
 
 
                                         
 
 
Table A1.3:  Net expenditure (outturn and forecast), annual and cumulated deviations vis-à-vis the 
recommendation 

* The growth rate for 2024 is not a recommendation but serves to anchor the base, as the latest year with outturn data when 
setting the net expenditure path is year 2023.  
Source: Commission Spring 2025 Forecast and Commission's calculation 

Table A1.4:  Defence expenditure 

Source:  Eurostat (COFOG), Commission Spring 2025 Forecast and Commission's calculation 

28 

2023202420252026OutturnOutturnCOMCOM1Total expenditurebn NAC59.461.767.071.12Interest expenditurebn NAC1.41.82.22.43Cyclical unemployment expenditurebn NAC0.00.00.00.04Expenditure funded by transfers from the EUbn NAC4.22.03.24.15National co-financing of EU programmesbn NAC0.60.50.40.46One-off expenditure (levels, excl. EU funded)bn NAC0.00.00.00.07=1-2-3-4-5-6Net nationally financed primary expenditure (before discretionary revenue measures, DRM)bn NAC53.257.461.364.28Change in net nationally financed primary expenditure (before DRM)bn NAC4.33.92.99DRM (excl. one-off revenue, incremental impact)bn NAC1.41.70.510=8-9Change in net nationally financed primary expenditure (after DRM) bn NAC2.82.22.411Outturn / forecast net expenditure growth% change5.36%3.8%3.9%12Recommended net expenditure growth*% change6.2%3.8%0.9%13=(11-12) x 7Annual deviationbn NAC-0.40.01.914 (cumulated from 13)Cumulated deviationbn NAC-0.4-0.51.415=13/17Annual balance% GDP-0.30.01.316=14/17Cumulated balance% GDP-0.3-0.31.017p.m. Nominal GDP  bn NAC123.8131.0138.1144.7Variables2021202220232024202520261Total defence expenditure% GDP1.41.01.21.32.32.02of which: gross fixed capital formation% GDP0.2-0.1-1.00.21.20.93Flexibility from increases in defence expenditure% GDP0.90.64Cumulated balance after flexibility% GDP-1.20.4 
 
 
                                         
 
 
 
       
 
 
Table A1.5:  Macroeconomic developments and forecasts 

Source: Commission Spring 2025 Forecast (COM), Annual Progress Report (APR) 

Table A1.6:  General government budgetary position 

Source: Commission Spring 2025 Forecast (COM), Annual Progress Report (APR) 

29 

2024OutturnAPRCOMAPRCOM1=7+8+9Real GDP% change2.11.91.51.91.42Private consumption% change2.91.60.91.81.63Government consumption expenditure% change3.71.30.91.20.84Gross fixed capital formation% change1.88.93.6-0.33.85Exports of goods and services% change0.32.71.93.91.86Imports of goods and services% change2.34.42.13.72.4Contributions to real GDP growth 7- Final domestic demandpps2.93.11.41.21.98- Change in inventoriespps1.00.60.20.60.09- Net exportspps-1.8-1.3-0.20.3-0.510Output gap% pot GDP-0.3-0.5-0.8-0.8-1.411Employment % change-0.20.3-0.10.1-0.112Unemployment rate%5.35.35.35.25.313Labour productivity% change2.21.71.61.81.514HICP % change3.23.94.03.72.915GDP deflator% change3.63.13.93.43.316Compensation of employees per head% change7.35.34.95.34.417Net lending/borrowing vis-à-vis the rest of the world% GDP-2.1n.a.-1.9n.a.-2.320252026Variables2024OutturnAPRCOMAPRCOM1=2+3+4+5Revenue41.844.043.642.744.0of which:2- Taxes on production and imports11.412.612.512.512.43- Current taxes on income, wealth, etc.8.28.38.38.28.24- Social contributions16.015.915.816.115.95- Other (residual)6.27.27.05.97.58=9+16Expenditure 47.148.948.547.349.1of which:9- Primary expenditure45.747.346.945.747.5of which:10- Compensation of employees 11.311.111.311.011.211- Intermediate consumption5.76.35.66.05.412- Social payments20.820.420.220.020.313- Subsidies1.71.11.00.70.914- Gross fixed capital formation3.64.95.13.65.215- Other2.63.53.74.44.516- Interest expenditure1.41.61.61.61.618=1-8General government balance-5.3-4.9-4.9-4.5-5.119=1-9Primary balance-3.9-3.3-3.3-2.9-3.520Cyclically adjusted balance-5.2n.a.-4.5n.a.-4.621One-offs0.00.00.00.00.022=20-21Structural balance-5.2-4.5-4.5-4.2-4.623=22+16Structural primary balance-3.8-2.9-3.0-2.6-3.0Variables (% GDP)20252026 
 
                                         
 
 
 
                                         
 
 
 
Table A1.7:  Debt developments 

* End of period.  
** The 'snow-ball' effect captures the impact of interest expenditure on accumulated general government debt, as well as the 
impact of real GDP growth and inflation on the general government debt-to-GDP ratio (through the denominator). The stock-flow 
adjustment includes differences in cash and accrual accounting (including leads and lags in Recovery and Resilience Facility grant 
disbursements), accumulation of financial assets, and valuation and other residual effects. 
Source: Commission Spring 2025 Forecast and Commission's calculation (COM), Annual Progress Report (APR) 

Table A1.8:  RRF – Grants 

Source: Annual Progress Report 

30 

2024OutturnAPRCOMAPRCOM1Gross debt ratio* (% of GDP)59.361.160.963.363.02=3+4+8Change in the ratio (pps. of GDP)3.61.81.62.22.1Contributions**3Primary balance3.93.33.32.93.54≈5+6+7'Snow-ball' effect-1.6-1.3-1.5-1.5-1.2of which:5- Interest expenditure1.41.61.61.61.66- Real growth effect-1.1-1.1-0.8-1.1-0.87- Inflation effect-2.0-1.8-2.2-2.0-2.08'Stock-flow' adjustment1.4-0.3-0.20.8-0.220252026VariablesRevenue from RRF grants (% of GDP)20202021202220232024202520261RRF grants as included in the revenue projectionsn.a.0.00.00.10.72.21.62Cash disbursements of RRF grants from EUn.a.0.80.41.20.61.01.120202021202220232024202520263Total current expenditure0.00.00.00.10.20.20.24Gross fixed capital formation0.00.00.00.10.11.51.05Capital transfers0.00.00.00.00.40.50.56=4+5Total capital expenditure0.00.00.00.10.42.01.420202021202220232024202520267Reduction in tax revenue0.00.00.00.00.00.00.08Other costs with impact on revenue0.00.00.00.00.00.00.09Financial transactions0.00.00.00.00.00.00.0Expenditure financed by RRF grants (% of GDP)Other costs financed by RRF grants (% of GDP) 
 
                                         
 
 
 
                                         
 
 
Cost of ageing  

Total age-related spending in Slovakia is projected to rise from about 20% of GDP in 2024 to 
23% in 2040 and to 25% in 2070 (see Table A1.9). The overall increase of around 5 pps of GDP by 
2070 is due to a combination of rising pension, healthcare and long-term care expenditure.  

Public pension  spending  is  projected at  9.4% of  GDP in  2024  and  to rise by  2 pps  of  GDP  by 
2070, of which 1.4 pps would occur by 2040. The peak increase is expected in the late 2050s, when 
spending would be 2.8 pps of GDP higher than in 2024, followed by a decrease over the final decade of 
the projections.  

Public  healthcare  expenditure  is  projected  at  6.1%  of  GDP  in  2024  (slightly  below  the  EU 
average of 6.6%) and is expected to increase by 0.7 pps by 2040 and by a further 0.4 pps by 
2070. These increases, due to an ageing population, pose a risk to fiscal sustainability in the medium and 
long term (28).  

Public  expenditure  on  long-term  care  is  projected  at  1.1%  of  GDP  in  2024  (below the  EU 
average of 1.7%) and is expected to increase by 0.5 pps of GDP by 2040 and by a further 0.8 
pps of GDP by 2070 (29).  

Table A1.9:  Projected change in age-related expenditure in 2024-2040 and 2024-2070 

Source: 2024 Ageing Report (EC/EPC). 

National fiscal framework 

The  Slovak  Council  for  Budget  Responsibility  (CBR)  is  a  well-resourced  independent  fiscal 
institution with a broad mandate and a relatively developed media presence. The leadership has 
staggered  (but  non-renewable)  mandates  of  seven  years  and  is  subject  to  a  three-year  “cooling  off 
period” before joining a government. Although its access to information has recently been strengthened, it 
has no formal access-to-information agreement with the Ministry of Finance and no legal base for access 
to data from entities outside the general government sector, such as state-owned enterprises. In addition, 
the CBR has no recourse if an entity  refuses to provide the requested data. Its policy dialogue with the 
government is underdeveloped. 

(28)  Key performance characteristics, recent reforms and investments of the Slovak healthcare system are discussed in Annex 14 ‘Health 

and health systems’.     

(29)  The adequacy and quality of the Slovak long-term care system are covered in Annex 11 ‘Social policies’.    

31 

SK20.31.40.70.50.12.823.1SKEU24.30.50.30.4-0.30.925.2EUSK20.32.01.21.30.34.725.0SKEU24.30.20.60.8-0.41.325.6EUage-related expenditure 2024 (% GDP)change in 2024-2040 (pps GDP) due to:age-related expenditure 2040 (%GDP)pensionshealthcarelong-term careeducationtotalage-related expenditure 2024 (% GDP)change in 2024-2070 (pps GDP) due to:age-related expenditure 2070 (%GDP)pensionshealthcarelong-term careeducationtotal 
 
 
   
 
 
Slovakia continues to reform the planning of public investment, including through the recovery 
and resilience plan, while monitoring and ex-post assessments remain weak. Project selection at 
ministry level has improved through a new methodology for the preparation and evaluation of investment 
projects,  including  the  role  of  investment  strategies  (30)  This  methodology  is  due  to  be  implemented 
retroactively  and  gradually  across  the  full  investment  portfolio  by  2026  (31).  Further  reforms  of  project 
governance  are  planned  by  the  Investment  Authority  Slovakia,  aimed  to  improve  risk  management  and 
project  selection.  In  addition,  all  central  government  investment projects  above  EUR  40  million  must be 
submitted  to  the  Ministry  of  Finance  for  evaluation.  For  projects  above  EUR  40  million,  mandatory 
feasibility studies.  are performed. The assessment of the investment projects is carried out centrally by 
the  Ministry  of  Finance,  unless  a  project  is  classified  as  a  ”strategic  investment”,  in  which  case  the 
assessment  does  not  have  to  be  centrally  performed  by  the  Ministry  of  Finance.  Since  2021,  only 
evaluated and  prepared projects can be  included in the budget. By contrast,  there are no systematic ex 
post reviews or asset registers in place. 

Table A1.10:Fiscal Governance Database Indicators 

The Country Fiscal Rule Strength Index (C-FRSI) shows the strength of national fiscal rules aggregated at the country level based 
on i) the legal base, ii) how binding the rule is, iii) monitoring bodies, iv) correction mechanisms, and v) resilience to shocks. The 
Medium-Term Budgetary Framework Index (MTBFI) shows the strength of the national MTBF based on i) coverage of the 
targets/ceilings included in the national medium-term fiscal plans; ii) connectedness between these targets/ceilings and the 
annual budgets; iii) involvement of the national parliament in the preparation of the plans; iv) involvement of independent fiscal 
institutions in their preparation; and v) their level of detail. A higher score is associated with higher rule and MTBF strength. 
Source: Fiscal Governance Database 

(30)  Measure C.18 [R.3] on streamlining public investment - application of the methodology for the procedures for preparing and 

prioritising investments. 

(31)  Recovery and Resilience Plan measure C.18 [R.3]. 

32 

2023SlovakiaEU AverageCountry Fiscal Rule Strength Index (C-FRSI)16.0614.52Medium-Term Budgetary Framework Index (MTBFI)0.780.73 
 
     
 
 
 
 
ANNEX 2: TAXATION 

This  annex  provides  an 
indicator-based 
overview of Slovakia’s tax system.  It includes 
information on: (i) the tax mix: (ii) competitiveness 
and  fairness  aspects  of  the  tax  system;  and  (iii) 
tax collection and compliance. 

a 

to 

reduce 

comprehensive 
package 

In  October  2024,  Slovakia's  parliament 
approved 
fiscal 
(combining 
consolidation 
expenditure  cuts  and  revenues  increases) 
totalling  EUR 2.7 billion.  The  package 
is 
supposed 
the  budget  deficit  by 
approximately  1  percentage  point  annually  and 
bring  it  below  3%  of  GDP  by  2027.  Among  tax 
increases,  the  consolidation  plan 
includes:  (i) 
adjustments to VAT (increase of a base rate from 
20% to 23%); (ii) reforms of corporate-income tax 
(CIT)  (strengthening  the  progressive  nature  of  the 
tax  structure);  (iii)  the  introduction  of  a  financial 
transaction  tax;  and  (iv)  the  strengthening  of  the 
industries.  These 
regulated 
special 
measures  reflect  Slovakia’s  commitment  to  fiscal 
discipline  and  are  designed  to  stabilise  the  debt-
to-GDP ratio at approximately 60.5% by 2028. 

levy 

in 

The  tax  mix  could  be  made  more  efficient 
and  more  supportive  of 
inclusive  and 
sustainable  growth.  Table  A2.1  shows  that 
in  2024  was 
Slovakia’s 

revenue 

total 

tax 

equivalent  to  35.3%  of  GDP,  well  below  the  EU 
aggregate  of  39.0%  despite  a  steady  upward 
trend  in  the  ratio  since  2010.  Both  labour  and 
consumption  taxes  account  for  a  significantly 
higher share of Slovakia’s total tax revenue (Graph 
A2.1) than the respective EU averages. The largest 
portion  of  tax  revenues  comes  from  labour  taxes, 
which  represent  53.9%  of  total  tax  revenue  (2.7 
pps  above  the  EU  average).  This  is  followed  by 
consumption taxes which make up 33.0% of total 
revenue, compared with the EU average of 26.9%. 
A  distinctive  feature  of  Slovakia’s  tax  mix  is  that 
the  high  share  of  labour  taxes  is  primarily  driven 
by  compulsory  social  contributions,  which  amount 
to  42.9%  of  total  revenue,  exceeding  the  EU 
average  (32.6%)  for  10.3  pps  (in  terms  of  GDP, 
in  Slovakia  amounted  to 
social  contributions 
15.1%  of  GDP,  against  the  EU  average  of  12.7% 
of  GDP).  In  contrast,  taxes  on  capital  account  for 
only  13.1%  of  total  taxation,  significantly  below 
the  EU  average  of  21.9%.  The  structure  of 
Slovakia’s 
careful 
consideration  should  be  given  to  a  rebalancing, 
shifting  the  burden  away  from  labour  taxation  to 
in 
capital  taxation.  This  could  play  a  role 
supporting 
inclusive  growth  and  equality  of 
opportunity. 

tax  mix 

suggests 

that 

Table A2.1:  Taxation indicators 

(1) Forward-looking effective tax rate (KPMG).       
(2) A higher value indicates a stronger redistributive impact of taxation. 
(*) EU-27 simple average. 
(**) For more details on the VAT gap, see European Commission, Directorate-General for Taxation and Customs Union, VAT gap in 
the EU - 2024 report,  https://data.europa.eu/doi/10.2778/2476549  
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 

33 

SKMedian (EU-27)2010202120222023202420102021202220232024Tax structureTotal taxes (including compulsory actual social contributions) (% of GDP)27.834.735.034.935.337.840.239.739.0Taxes on labour (% of GDP)14.418.618.418.919.820.520.120.0of which, social security contributions (SSC, % of GDP)11.915.014.715.112.913.012.712.7Taxes on consumption (% of GDP)9.811.311.311.610.911.210.910.5of which, value added taxes (VAT, % of GDP)6.17.47.78.06.87.37.47.1Taxes on capital (% of GDP)3.64.75.24.67.18.58.78.5Personal income taxes (PIT, % of GDP)2.63.73.73.88.69.69.49.3Corporate income taxes (CIT, % of GDP)2.43.63.63.62.22.93.23.2Total property taxes (% of GDP)0.40.50.40.41.92.22.11.9Recurrent taxes on immovable property (% of GDP)0.40.50.40.41.11.11.00.9Environmental taxes (% of GDP)2.12.32.52.02.52.42.12.0Effective carbon rate in EUR per tonne of CO2 equivalentsNA65.8NA64.1NA86.0NA84.8Tax wedge at 50% of average wage (single person) (*)31.836.937.337.638.233.931.831.531.531.8Tax wedge at 100% of average wage (single person) (*)38.141.541.641.742.640.939.939.940.240.3Corporate income tax - effective average tax rates (1) (*)18.620.620.620.621.319.319.118.9Difference in Gini coefficient before and after taxes and cash social transfers (pensions excluded from social transfers) (2) (*)5.66.46.06.68.68.27.97.7Outstanding tax arrears: total year-end tax debt (including debt considered not collectable) / total revenue (in %) (*)21.619.835.532.6VAT gap (% of VAT total tax liability, VTTL) (**)13.814.66.67.0Progressivity & fairnessTax administration & complianceBy tax baseSome tax typesSlovakiaEU-27 
 
 
 
 
   
 
in  which 

Revenues  from  property  taxes  in  Slovakia 
are  low  (equivalent  to  0.4%  of  GDP  in  2023 
compared  with  1.9%  of  GDP  in  the  EU  as  a 
whole),  despite  property 
taxes  being 
considered  relatively  growth  friendly.  Unlike 
most other Member States, Slovakia has an area-
based  taxation  system, 
immovable 
property is taxed based on its area rather than its 
In  such  a  taxation 
estimated  market  value. 
framework,  the  location,  quality,  type,  number  of 
rooms and age of the dwelling are not factored in, 
and this hampers fairness and equity. Slovakia still 
does  not  possess  either  valuation  systems  or 
sufficient  data  to  align  the  notional  property 
values  used  by  the  taxation  system  with  market 
values. Given these characteristics, implementing a 
market-value-based  taxation  system,  either  in 
addition  to  or  as  a  replacement  for  the  current 
area-based system, would be more appropriate to 
improve  fairness,  increase  tax  revenue,  and  help 
dampen real estate demand. Currently, the market 
value is factored in the calculation of the land tax 
which,  however,  does  not  apply  to  areas  covered 
by  buildings  or  apartments.  In  this  regard,  the 
extension  of  a  levy  on  land  value,  typically 
imposed on landowners, could be an efficient and 
non-distortive  solution  to  address  the 
issues 
arising  from  the  current  area-based  property  tax 
system. 

With  the  stagnating  share  of  environmental 
taxation in Slovakia’s tax mix, more use can 
be made of this tax type. Specifically, revenues 
derived  from  taxes  on  transport,  pollution  and 
natural  resources,  consistently  below  the  EU 
indicate  potential  to  strengthen  the 
average, 
application of the ‘polluter pays’ principle. Effective 
carbon rate in EUR per tonne of CO2 equivalents in 
Slovakia  (64.1)  is  significantly  below  the  EU 
average  (84.8),  which  suggests  weaker  economic 
incentives for businesses and consumers to reduce 
emissions in line with EU and global climate goals. 
To  fully  internalise  externalities,  Slovakia  could 
consider  expanding  the  use  of  underutilised 
environmental  tax  instruments  such  as  waste 
disposal  taxes  (including  incineration),  transport 
taxes,  and  additional  levies  on  waste  discharge 
into water or plastic products.  

34 

Graph A2.1: Tax revenue shares in 2024 

Source: Taxation Trends Data, DG TAXUD 

inflation 

The  consolidation  package  will 
impact 
companies  through  increased  taxation  and 
higher  operational  costs.  This  could  reduce 
economic  activity,  impacting  corporate  expansion 
and  resulting  in  a  slowdown  of  economic  growth 
in  the  short  term.  The 
and  higher 
progressive  tax  structure  of  the  new  CIT  (ranging 
from  10%  till  24%)  is  expected  to  increase 
revenue  generation  for  public  services  and 
infrastructure,  potentially  improving  the  business 
environment.  However,  it  may  also  lead  larger 
investment 
corporations 
reassess 
increased  tax 
strategies 
liabilities.  The  overall  impact  will  depend  on  how 
businesses  adapt  to  these  changes  and  on  how 
effective the government is in implementing them. 

in  Slovakia  due  to 

their 

to 

Slovakia  ranked  15th  in  investment  (gross 
fixed capital formation) as a share of GDP in 
the EU, at 22.0% in 2023, close to the EU-27 
average (22.2%). Investment growth is set to be 
limited in  2024,  following  a  jump  in  2023  due to 
intensified use of EU funds by the end of the year. 
In  2025,  investment is  expected  to  pick  up  again, 
driven  by  absorption  of  EU  structural  funds  and 
the  Recovery  and  Resilience  Facility.  On  R&D 
expenditure  as  a  share  of  GDP,  in  2022  Slovakia 
ranked  within  the  lower  third  of  EU  countries, 
holding the 20th position in the EU-27. In terms of 
public  support  for  R&D  expenditure,  Slovakia 
performed  slightly  better,  although  it  remains 
considerably behind the EU average. 

Nevertheless,  Slovakia  offers  a  range  of 
support  mechanisms  for  startups  and  scale-
through 
ups, 
government-backed  funds, 
incentives  for 
investors,  and  provisions  for  employee  stock 

including  equity 

investments 

tax 

51.226.921.954.333.213.1Tax revenue shares in 2023, Slovakia (outer ring) and EU (inner ring)Taxes on labourTaxes on consumptionTaxes on capital 
   
wedge  faced  by these  second  earners  was  higher 
than that of single people 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 from 5.6 
points since 2010 to 6.6 in 2023. (see Table A2.1). 
While this is below the EU average (7.7 points), it 
is  sufficient  to  keep  inequality  in  Slovakia  as 
measured  by  the  Gini  index  among  the  lowest  in 
the EU. 

has 

shown 

commitment 

Slovakia 
to 
improving the efficiency of its tax-collection 
system  through  significant  IT  investments 
and  a  comprehensive  digital  transformation 
strategy. The VAT gap has decreased significantly 
in  recent  years  in  Slovakia,  but  despite  marked 
improvements in recent years, the VAT compliance 
gap  remains  above  the  EU  average.  The  ongoing 
digitalisation efforts (e.g. mandatory e-invoices for 
transactions 
domestic 
planned  as  of  1 January 2027)  are  likely  to 
increase the overall effectiveness of Slovakia's tax 
administration. 

business-to-business 

The  shares  of  e-filing  rates  for  CIT  and  VAT 
are above the  EU average, although there is 
improvement  for  e-filing  of 
room  for 
personal-income-tax  returns 
in  Slovakia. 
Slovakia  is  progressing  towards  implementing  e-
filing for all types of taxes. Efforts are ongoing to 
expand e-filing capabilities. 

Estimates  of  total  tax-compliance  costs  for 
SMEs  in  Slovakia  are  well  below  the  EU 
average.  For  estimated  average  CIT  compliance 
costs, Slovakia has the second lowest costs in the 
EU.  Similarly,  looking  at  estimated  average  VAT 
compliance  costs,  Slovakia  also  has  the  lowest 
costs in the EU. 

On  dispute-resolution,  the  overall  inventory 
of  cases  does  not  stand  out  as  particularly 
high,  and  the  average  time  a  dispute-resolution 
cycle takes is two years. 

options,  all  aimed  at  fostering  innovation  and 
economic growth. 

ranking 

Finding skilled staff, uncertainty, and energy 
costs  remain  the  main  investment  obstacles 
for  businesses.  In  the  European  Investment 
Bank’s  2024  investment  survey,  Slovakia  had  the 
worst 
for  skilled  staff.  Businesses’ 
difficulties  in  hiring  skilled  staff  have  worsened 
recently, resulting in 93% of firms now facing this 
challenge,  compared  with  77% 
the  EU. 
Uncertainty about the future is a concern for 90% 
of  businesses  against  an  EU  average  of  79%. 
Energy-cost  barriers  slightly  decreased  in  2024 
compared  with  2023,  although  this  issue  remains 
more  pressing  in  Slovakia  than  elsewhere  in  the 
EU.  

in 

Graph A2.2: Tax wedge for single and second 
earners, % of total labour costs, 2024 

The tax wedge for second earners assumes a first earner at 
100% of the average wage and no children. For the full 
methodology, 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 (32) for lower-wage earners. Graph A2.2 
shows  that  the  labour  tax  wedgefor  Slovakia  in 
2024  was  above  the  EU  average  for  low  earners 
(e.g.  38.2%  for  single  people  earning  50%  of  the 
average  wage,  compared  to  an  EU  average  of 
31.8%),  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 
greater  than  the  EU  average.  In  addition,  the  tax 

(32)  The  tax  wedge  is  defined  as  the  sum  of  personal  income 
social-security 
taxes  and  employee  and  employer 
contributions  net  of  family  allowances,  expressed  as  a 
percentage of total labour costs (the sum of the gross wage 
and social-security contributions paid by the employer). 

35 

38.240.442.644.546.42025303540455050100150Tax wedge, % of total labour costsEarnings as % of the average wageSingle earner - SKSingle earner - EU averageSecond earner -  SKSecond earner -  EU average 
   
 
PRODUCTIVITY 
ANNEX 3: INNOVATION TO BUSINESS  

performance 

(65.1%) 
the  EU  average  and 

Slovakia  is  an  ‘emerging  innovator’,  and  the 
gap  between  its  performance  and  the  EU 
average  is  widening.  According  to  the  2024 
edition of the European Innovation Scoreboard (33), 
remains 
Slovakia’s 
significantly  below 
is 
improving  at  a  lower  rate  than  the  EU  average. 
Slovakia’s R&D intensity (34) increased in 2023 but 
remains  well  below  the  EU  average  (1.03%  vs 
2.24%). In its 2023 national strategy for research, 
development  and  innovation  (NSRDI) (35),  Slovakia 
set a 2% target for R&D intensity and provided an 
action  plan  containing  concrete  measures  (36)  for 
reforming  the  research  and 
innovation  (R&I) 
system. This is much needed, considering the weak 
and  fragmented  public  science  base  and  modest 
innovation  activity 
sector, 
in 
particularly  SMEs.  The  country  is  also  lagging 
in  the  adoption  of  advanced  digital 
behind 
technologies, which remains below the EU average. 
To successfully implement the NSRDI, a whole-of-
government  approach  and  strong  coordination  is 
needed. Moreover, the digitalisation of businesses 
remains  an 
in  Slovakia  despite  recent 
progress in the uptake of AI solutions. 

the  private 

issue 

Science and innovative ecosystems 

the  potential 

A  weak  and  fragmented  public  science  base 
restricts 
for  knowledge 
diffusion,  which  is  essential  for  boosting 
competitiveness.  Slovakia’s  share  of  scientific 
publications among the top  10% most  cited, as a 
percentage  of  its  total  scientific  publications, 
remains  one  of  the  lowest  among  EU  Member 
States (4.6% compared to the EU average of 9.6% 

(33)  2024,  European  Innovation  Scoreboard,  Country  profile: 
Slovakia..  The  EIS  provides  a  comparative  analysis  of 
innovation performance in EU countries, including the relative 
strengths  and  weaknesses  of  their  national  innovation 
systems. 

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

R&D as a percentage of GDP. 

(35)  Web  page:  Národná  stratégia  výskumu,  vývoja  a  inovácií  – 

Výskumná a inovačná autorita. 

(36)  The  authorities  have  announced  that  by  June  2024,  28 out 
of  a  total  of  91  measures  of  the  action  plan  had  been 
completed. 

. 

36 

to 

due 

base 

launched  under 

these  proposals 

in  2021),  although  it  has  increased  slightly  (up 
from  3.6%  in  2017).  This points  to  a  weak public 
science 
long-standing 
underinvestment (37) and a fragmented landscape 
of  R&I  performing 
institutions  of  35  higher 
education institutions and 45 research centres and 
institutes. Reforms to improve R&I governance and 
the 
coordination  have  been 
recovery and resilience plan, complemented by an 
analysis  of  the  responsibilities  of  ministries, 
funding  agencies  and  policymaking  organisations. 
for  streamlining 
Some  of 
governance  are  likely  to  be  reflected  in  the  new 
R&I  bill  currently 
legislative  process. 
in  the 
Moreover,  the  NSRDI  action  plan  envisages  an 
evaluation  of  five  ongoing  reforms  aimed  at 
enhancing 
the  quality  of  higher  education 
institutions,  including  a  periodic  assessment  of 
their  scientific  performance (38).  The  bill 
is 
expected  to  propose  further  reforms  aimed  at 
boosting  research  and  innovation,  drawing  on 
lessons learned. Continued support for high-quality 
scientific  outputs,  along  with  further  efforts  to 
consolidate the fragmented system, are needed to 
build  a  critical  mass  and  achieve  the  targets (39) 
set  by  the  NSRDI  and  the  action  plan.  In  this 
respect,  engaging  international  evaluators  in  calls 
funded  from  the  recovery  and  resilience  facility 
guaranteed  more  efficient  evaluations,  reduced 
conflicts  of  interest  and  thus  proved  as  good 
practice.  

(37)  At  0.45%  of  GDP,  public  expenditure  on  R&D  (GOVERD  + 
HERD) remains significantly below the EU average of 0.72% 
and is increasing only at a slow pace (by 0.41% in 2020). 

(38)  In 2024, a total of EUR 84 million was allocated to quality-
related  funding  based  on  the  verification  of  excellence  in 
research (VER). This amount is expected to remain the same 
or increase in 2025 and 2026. 

(39)  One  such  target  is  to  increase  the  share  of  scientific 
publications among the top 10% most cited, as a percentage 
of total scientific publications, to 8% by 2030 (from 4.6% in 
2021). 

 
 
 
 
 
 
 
Graph A3.1: Slovakia’s share of scientific 
publications among the top 10% most cited as a 
percentage of its total scientific publications 

Source: Eurostat 

Business innovation 

large  multinational 

Slovakia’s  ability  to  innovate  and  integrate 
new  technologies  is  limited,  with  low  R&D 
expenditure  in  the  private  sector.  There  is  a 
low-productivity  micro-
high  proportion  of 
enterprises  in  the  Slovak  business  population. 
These micro-enterprises, businesses with less than 
10 employees, which represent 97% of firms and 
for  over  40%  of  business-sector 
account 
employment  in  Slovakia,  engage  little  in  research 
and innovation (40). Productivity growth has mostly 
the  manufacturing  sector, 
been  driven  by 
firms,  while 
especially 
productivity  gains  in  service  sectors  have  been 
more  moderate (41).  The  size  of  the  ICT  sector  is 
below  the  EU  average  (4.71%  vs  5.49%  in  gross 
in  2021)  and  R&D  business 
value  added 
expenditure  in  the  ICT  sector  amounts  to  27.58% 
total  R&D  expenditure (42).  Overall  weak 
of 
innovation  activity  in  the  private  sector  is  also 
reflected in low business enterprise expenditure on 
R&D  (BERD)  as  a  percentage  of  GDP,  which  in 
2023 stood at 0.58% compared to the EU average 
of  1.49%.  Moreover,  it  results  in  low  innovation 
in  patent 
output,  as  measured  for 
applications.  In  2022,  only  0.5  patents  were  filed 
under  the  Patent  Cooperation  Treaty  per  billion 
GDP,  while  the  EU  average  was  2.8.  Boosting 

instance 

(40)  OECD  report  Strengthening  FDI  and  SME  Linkages  in  the 

Slovak Republic | OECD, 2022. 

innovation  activity  in  the  business  sector  to 
achieve the 1.2% target for business R&D remains 
a  key  priority (43).  Additionally,  Slovakia  would 
benefit  from  participating  in  the  unitary  patent 
system,  which  offers  key  advantages  in  terms  of 
enhancing 
promoting 
competitiveness (44). 

innovation 

and 

Graph A3.2: Business expenditure on R&D as a 
percentage of GDP in the Visegrad countries 

Source: Eurostat 

technologies 

Slovakia  continues  to  lag  behind  on  the 
digitalisation of businesses. In 2024, 62.9% of 
Slovak SMEs have a basic level of digital intensity, 
considerably below the EU average of 72.91%. The 
country  also  performs  below  the  EU  average  as 
regards  the  proportion  of  businesses  that  have 
taken  up  advanced  digital 
(i.e. 
artificial intelligence, cloud computing services and 
data  analytics).  However,  there  is  a  promising 
trend in the adoption of AI solutions, with 10.78% 
of  Slovak  businesses  using  AI  in  2024,  which 
indicates a 53.13% increase from 7.04% in 2023. 
technology  by  businesses 
Adoption  of  AI 
nonetheless  remains  below  the  EU  average  of 
13.48%.  Along  similar  lines,  in  2023,  30.17%  of 
Slovak enterprises have adopted data analytics as 
opposed  to  33.17%  at  EU  level,  while  30.16% 
used  cloud  computing  services,  as  opposed  to 
38.86%  at  EU  level.  Overall,  considerable  work  is 
still  required to  reach  the 2030  goal  of  achieving 
75%  adoption  of  AI,  cloud  computing  and  data 
analytics, and other Digital Decade targets. 

Exploring  the  potential  of  better  targeted 
in 
public  support  could  be  beneficial 
in 
engage 
companies 
stimulating 

to 

(43)  Target set in the national strategy for research, development 

(41)  OECD  (2024), OECD  Economic  Surveys:  Slovak  Republic 

and innovation. 

2024: https://doi.org/10.1787/397ca086-en. 

(44)  The country is has already signed and is expected to ratify 

(42)  Eurostat, ICT sector size and R&D in ICT sector, 2021 data. 

the Unified Patent Court Agreement. 

37 

9.64.60246810121416NLDKSEFIBEIEITCYLUATDEEEEUELESFRPTMTSILTROHUPLCZHRLVSKBGEUaverageCZPLHUSK20231.491.19110.5800.20.40.60.811.21.41.6EU averageCZPLHUSK 
            
 
            
 
innovation.  Total  public-sector  support 
for 
business R&D expenditure as a percentage of GDP 
is  significantly  below  the  EU  average  (0.204%). 
However, in an encouraging recent trend, the rate 
increased  from  0.022%  in  2017  to  0.092%  in 
2021.  This  growth  has  been  driven  by  increased 
R&D  tax  incentives,  while  direct  support  to  R&D 
has stagnated at a low level. Recent evaluations of 
the  R&D  tax  allowance (45)  suggest  that  the 
scheme  mainly  benefits  large,  incumbent,  and 
multinational  firms (46).  Moreover,  a  recent  OECD 
report (47) notes that the R&D tax incentive scheme 
(48) does not include cash refunds, which could be 
particularly  beneficial  for  smaller  and  recently 
established companies in need of financial support 
at  an  early  stage  of  the  innovation  process.  Also, 
an  evaluation (49)  of  the  ‘patent  box’  (50)  scheme 
has  shown  that  it  only  benefited  a  few  larger 
companies, and that the current set-up is not likely 
to  boost  the  level  of  intellectual  property  by 
stimulating patent activity by domestic businesses 
or attracting foreign patents. Expanding the use of 
direct competitive grant schemes is a measure to 
be  considered,  along  with  continued  use  of  the 
newly  established  portal (51)  as  a  one-stop  shop 
for finding information on public support for R&I. 

Collaboration  between  businesses  and  the 
little 
research  sector 
technology 
Science-business 
collaboration in Slovakia has been held back by a 
weak science and innovation base, combined  with 

is 
transfer. 

limited,  with 

(45)  The R&D tax allowance was reduced from 200% to 100% of 

eligible R&D expenditure in 2022. 

(46)  MoF and VAIA, 2023, Review of Spending, Competencies and 
Personnel  in  Research,  Development  and  Innovation.  Final 
Report: Research (see p. 76). 

(47)  OECD (2024), OECD Economic Surveys: Slovak Republic 
2024: https://doi.org/10.1787/397ca086-en (see p. 50). 

(48)  MoF and VAIA, 2023, Review of Spending, Competencies and 
Personnel  in  Research,  Development  and  Innovation.  Final 
Report:  Research  –(see  p.  74)  tax  instruments  include:  tax 
relief  for  beneficieries  of  incentives;  deduction  of  R&D 
expences; patent box. 

(49)  MoF and VAIA, 2023, Review of Spending, Competencies and 
Personnel  in  Research,  Development  and  Innovation  Final 
Report: Research (see p. 79). 

(50)  patent box" refers to a tax regime that allows companies to 
apply  a  reduced  corporate  tax  rate  to  income  derived  from 
intellectual property (IP) assets, such as patents, copyrights, 
and trademarks. 

(51)  Support finder - Research and Innovation Portal. 

. 

a  lack  of  infrastructure  to  support  collaboration 
between  academia  and  industry.  This  is  reflected 
in  some  relevant 
indicators,  such  as  public 
expenditure  on  R&D  funded  by  businesses  as  a 
percentage  of  GDP,  which  is  very  low  and  far 
below  the  EU  average  (0.006%  compared  to 
0.050%  in  2022);  it  has  also  been  declining  over 
time  (from  0.034%  in  2012).  Moreover,  in  2023 
the  number  of  researchers  (full-time  equivalents) 
employed by businesses was significantly lower  – 
less  than  half  –  than  the  EU  average.  However, 
data on public-private scientific co-publications as 
a share of total publications show a more positive 
trend,  rising  from  4.9%  in  2013  to  7%  in  2023, 
which  is  still  slightly  below  the  EU  average  of 
7.7%.  This  is  due,  among  other  things,  to  the 
structure of the Slovak business population, which 
is  dominated  by  micro-enterprises  with  no 
innovation  activity.  These  firms  typically  have 
limited  capacity  for  setting  up  collaboration 
linkages  with  academia  that  support  knowledge 
transfer  and  for  adopting  advanced  foreign 
technologies (52).  More  recently,  the  recovery  and 
resilience  plan  has  stimulated  academia-business 
investment 
cooperation 
streams (53).  However,  shortcomings  remain  and 
are  acknowledged  in  the  2023  R&D  strategy, 
which includes specific measures in its action plan, 
such  as  improved  support  for  technology  transfer 
offices and simplified management of intellectual 
property  rights. 
Implementing  these  targeted 
measures  is  essential,  while  ensuring  stability  of 
dedicated  programmes.  Moreover,  the  lack  of 
collaboration  between  sectors  should  also  be 
addressed  in  the  planned  updated  version  of  the 
action plan. 

through 

several 

Financing innovation 

The  local  venture capital and  growth capital 
market is not developed enough to meet the 
financing  needs  of  innovative  firms.  Venture 
capital investment has been growing slowly, from 
0.003%  of  GDP  in  2014  to  0.015%  in  2023,  but 
remains very low in comparison to the EU average 
of  0.078%.  Similarly,  the  value  of  private  equity 

(52)  OECD  (2022), Strengthening  FDI  and  SME  Linkages  in  the 

Slovak Republic: https://doi.org/10.1787/972046f5-en. 

(53)  Component  9 

Investment  2:  Support  for  cooperation 

between companies, academia and research organisations. 

38 

 
 
 
measures  in  this  domain.  Also,  in  line  with  the 
action  plan,  a  unit  in  charge  of  coordinating  and 
guiding  policies  on  retaining  and  attracting  talent 
has  been  set  up  within  the  Research  and 
Innovation Authority (VAIA). 

Entrepreneurship education is integrated into 
the  national  curriculum  as  a  part  of  the 
national financial literacy standard, covering 
both  primary  and  secondary  schools  and 
vocational and educational training. However, 
developing 
there 
emphasis 
less 
is 
in 
entrepreneurship 
secondary education. 

in  higher  education  than 

on 

relative  to  nominal  GDP  increased  from  0.02%  in 
2022 to 0.03% in 2023 but remains below the EU 
average  of  0.41%.  There  are  some  initiatives  in 
place  to  promote  start-up  funding,  such  as  a 
crowdfunding platform to enable some businesses 
to  access  venture  and  growth  capital,  but  the 
available  funds  are  limited.  However,  there  is  no 
comprehensive legal framework for supporting the 
creation and growth of start-ups.  

Innovative talent 

Slovakian  businesses  grapple  with 
the 
consequences  of  a  considerable  skill  gaps. 
According  to  a  recent  OECD  study  (54),  54%  of 
Slovakian enterprises report skill gaps (55). This has 
a number of adverse consequences for firms. One 
in  three  firms  says  that  skills  mismatches  limit 
their  ability  to  adopt  new  technologies.  This 
highlights  the  significant  economic  risks  involved 
and  the  need  to  address  this  issue.  Students 
enrolled  in  science,  technology,  engineering  and 
mathematics programmes accounted for 21.8% of 
all  tertiary  enrolments  (ISCED  5-8)  in  2022, 
significantly  lower than  the  EU  average  of  27.1% 
and  a  decrease  from  22.8%  since  2017  (see 
Annex 10). Moreover, Slovakia continues to face a 
brain drain, as Slovak higher education institutions 
are poorly ranked internationally, and the research 
quality is low (56). This is reflected in the very high 
proportion  of  high-school  graduates  who  study 
abroad, few of whom intend to return home after 
their  studies (57).  This  implies  that  Slovakia  is 
losing  some  of  its  most-skilled  workers,  further 
aggravating skills shortages. The national strategy 
for 
innovation 
acknowledges  the  necessity  to  retain  and  attract 
talent,  and  its  action  plan  incorporates  several 

research,  development  and 

(54)  OECD  (2024), Understanding  Skill  Gaps  in  Firms:  Results  of 
the  PIAAC  Employer  Module,  OECD  Skills  Studies,  OECD 
Publishing, Paris: https://doi.org/10.1787/b388d1da-en. 

(55)  Skill  gaps  are  defined  as  mismatches  between  the  skills 
available  in  a  firm  and  those  required  to  meet  current  and 
future  business  needs  (including  adapting  to  technological 
change). 

(56)  OECD  (2021), Improving  Higher  Education  in  the  Slovak 
Publishing, 

Republic, 
Paris, https://doi.org/10.1787/259e23ba-en. 

Education, 

Higher 

OECD 

(57)  Martinák and Varsik, 2020. 

. 

39 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Table A3.1:  Key innovation indicators 

(1) EU average for the last available year or the year with the highest number of country data. 
Source:  Eurostat, DG JRC, OECD, Science-Metrix (Scopus database), Invest Europe, European Innovation Scoreboard. 

40 

R&D intensity (gross domestic expenditure on R&D as % of GDP)0.790.880.890.90.981.03:2.243.45Public expenditure on R&D as % of GDP0.460.40.410.40.420.45:0.720.64Scientific publications of the country within the top 10% most cited publications worldwide as % of total publications of the country 3.43.64.34.6:::9.612.3Researchers (FTE) employed by public sector (Gov+HEI) per thousand active population4.64.24.74.74.7::4.2:International co-publications as % of total number of publications41.442.349.849.948.950.6:55.939.3Business enterprise expenditure on R&D (BERD) as % of GDP0.330.480.480.50.560.58:1.492.7Business enterprise expenditure on R&D (BERD) performed by SMEs as % of GDP0.120.140.210.230.26::0.400.30Researchers employed by business per thousand active population0.91.21.51.82.12.4:5.7:Patent Cooperation Treaty patent applications  per billion GDP (in PPS€)0.40.60.60.60.5::2.8:Employment share of high-growth enterprises measured in employment (%)21`.5018.8110.19::::12.51:SMEs with at least a basic level of digital intensity% SMEs (EU Digital Decade target by 2030: 90%)::::60.24:62.972.91:Data analytics adoption% enterprises (EU Digital Decade target by 2030: 75%):::::30.17:33.17:Cloud adoption% enterprises (EU Digital Decade target by 2030: 75%):::30.84:30.16:38.86:Artificial intelligence adoption% enterprises (EU Digital Decade target by 2030: 75%):::5.19:7.0410.7813.48:Public-private scientific co-publications as % of total number of publications5.85.96.36.96.97:7.78.9Public expenditure on R&D financed by business enterprise (national) as % of GDP0.0340.0210.0080.0080.006::0.050.02Total public sector support for BERD as % of GDP0.0320.0220.0650.0910.600::0.2040.251R&D tax incentives: foregone revenues as % of GDP0.00010.010.0430.0600.040::0.1020.141BERD financed by the public sector (national and abroad) as % of GDP0.0320.0130.0220.0320.020::0.1000.110Venture capital (market statistics) as % of GDP, total (calculated as a 3-year moving average)0.0010.0120.0160.0210.0190.015:0.078Seed funding (market statistics) as % of GDP 84.116.111.21017.720.5:7.3Start-up and early-stage funding (market statistics) as % of GDP 071.974.164.157.840.8:44.0Later stage and scale-up funding (market statistics) as % of GDP 15.91214.725.924.438.7:48.7New graduates in science and engineering per thousand population aged 25-3416.7128.88.98.6::17.6:Graduates in the field of computing per thousand population aged 25-342.322.22.32.5::3.6:2023EU average (1)USA2024Headline indicatorScience and innovative ecosystemsR&D investment & researchers employed in businessesPublic support for business innovationInnovation outputsDigitalisation of businessesAcademia-business collaborationFinancing innovationInnovative talent20222021Slovakia201220172020 
 
 
 
 
 
 
 
 
 
 
            
 
ANNEX 4: MAKING BUSINESS EASIER 

and 

linked 

to  high 

regulatory 

faces 
Slovakia’s  business  environment 
levels  of 
challenges 
burden, 
administrative 
requiring  further  progress 
in  addressing 
barriers  to  remain  competitive  in  the  long 
term.  Despite  several  reforms  to  reduce  the 
administrative 
on 
businesses 
significant 
recent 
challenges  persist.  The  competitiveness  of  the 
Slovak economy has further deteriorated  over the 
less 
last  decade, 
attractive 
the 
to 
consolidation  package  adopted  by  the  Slovak 
parliament 
in  September  2024  poses  new 
challenges and costs for Slovak businesses. 

the  country  has  become 
and 

regulatory 

investors, 

foreign 

burden 

years, 

over 

and 

Economic framework conditions 

The  business  environment 
in  Slovakia 
remains  one  of  the  least  favourable  in  the 
EU.  According  to  the  Prosperity  and  Financial 
Health Index (58), Slovakia has the worst conditions 
for  doing  business  in  the  EU.  Among  the  factors 
behind  this  unfavourable  position  are: 
long-
standing structural problems related to the quality 
of education and innovation; increased taxes and a 
higher 
for  businesses;  and  an 
unpredictable  regulatory  regime.  Underperforming 
for 
market 
companies  and  start-ups,  and  restricts  company 
growth (see the Annexes on Innovation to Business 
and  on  Capital  markets,  financial  stability  and 
access to finance). 

capitalisation 

tax  wedge 

financing 

limits 

further 

economic 

Public  and  private  investments  face  a  long-
in  Slovakia, 
term  structural  challenge 
growth. 
hindering 
Investments in Slovakia account for approximately 
20%  of  GDP  (59),  with  businesses  making  almost 
two thirds of total investments. This share has not 
changed  much  over  the  past  15  years.  Although 
the  total  share  of  investments  is  comparable  to 
other EU countries, the key distinction lies in their 
equipment 
composition. 
in  buildings, 
investments  and 

investments 

Machinery 

and 

dominate.  Meanwhile,  investments  in  intellectual 
property  represent  less  than  half  and  in  research 
and  development  only  a  third  of  the  share  of 
western  EU  countries  (see  the  Innovation  to 
Business Annex). 

Availability  of  skilled  staff  and  uncertainty 
about the future remain the main investment 
obstacles for businesses. Slovakia ranks as the 
worst  for  lack  of  skilled  staff  (60).  Businesses’ 
difficulties  in  hiring  skilled  staff  have  worsened, 
with  a  10  percentage-point  increase  in  2024 
compared  to  2023,  resulting  in  93%  of  firms 
facing this challenge (against 77% in the EU) (see 
the  Labour  market  Annex).  Uncertainty  about  the 
future is the second major investment obstacle. In 
Slovakia,  this  issue  has  grown  more  pressing  in 
2024, with 90% of businesses facing uncertainty, 
an  8 percentage-point  increase  on  2023.  The 
Slovak  figure  significantly  surpasses  the  EU 
average of 79% for 2024. 

Slovakia  ranks  bottom  of  the  Central  and 
Eastern Europe region (CEE) when it comes to 
attracting  foreign  investments.  The  country’s 
attractiveness to  foreign  companies  has been  the 
lowest  in  the  last  five  years (61).  While  in  2014-
2023 Slovakia received foreign capital at the level 
of 1 per cent of GDP per year, the countries of the 
CEE  region  averaged  up  to  2.5%  of  GDP (62). 
Foreign  capital  has  undoubtedly  been  one  of  the 
main factors in the success of the Slovak economy 
in 
recent  decades.  Slovakia’s  foreign  direct 
investment  rate  dropped  from  2.1% GDP  in  2022 
to just 0.1% in 2023.  

Slovakia’s  payment  environment  reflects  a 
mixed  landscape,  with  structural  challenges 
ongoing.  The  business-to-business  payment  gap 
and  the  gap  from  the  public  sector  decreased  in 
2024  compared  to  2023  and  are  below  the  EU 
average. A reform under the Slovak medium-term 
fiscal-structural  plan,  introducing  a  mandatory  e-
invoicing  system,  could  help  further  reduce  late 
in 
commercial 
payments 

transactions 

in 

(60)  European Investment Bank, EIB Investment Survey 2024, 

based on interviews carried out between April and July 2024. 

(58)  Česká spořitelna, Europe in Data portal and the Institute of 
Sociology of the Czech Academy of Sciences: The Prosperity 
and Financial Health Index, December 2024. 

(61)  Chambers of Commerce of NL, DE, IT, FR, AT, SE in Slovakia: 
Prieskum konjunktúry medzi európskymi investormi v SR, 
April 2024.pdf. 

(59)  National Bank of Slovakia: Ako sa banky podieľajú na 
financovaní investícií podnikov?. September 2024. 

(62)  UniCredit Bank Czech Republic and Slovakia, Weekly Notes 

40/2024.pdf. 

41 

 
 
 
 
 
Slovakia (63).  However, 
the  share  of  SMEs 
experiencing  late  payments  is  higher  in  Slovakia 
(51%)  than  in  the  EU  overall  (47%).  Excessive 
payment  delays in the public  health  sector  create 
a considerable barrier for businesses, limiting their 
competitiveness and resilience. Despite a Court of 
Justice  ruling  on  late  payment  (64),  Slovakia  has 
yet to ensure that its public healthcare authorities 
comply  properly  with  the  60-day  payment  period 
for paying suppliers.  

Slovakia’s  digital 
infrastructure  requires 
significant improvement to meet EU targets, 
particularly  in  rural  areas.  In  2023,  Slovakia 
achieved  69.12%  Very  High-Capacity  Networks 
(VHCN)  coverage,  falling  short  of  the  EU  average 
(78.81%)  and  slightly  declining  from  71.31%  in 
2022. While Fiber to the Premises (FTTP) coverage 
was in line with the EU average at 64.19%, it also 
slightly  decreased  compared  to  2022  (66.89%). 
The  percentage  decrease  in  VHCN  and  FTTP 
coverage  in  2023  is  because  the  number  of 
households has increased. However, the number of 
VHCN  connections  increased  in  absolute  value  by 
59099  and  FTTP  connections  by  43429  in  2023.  
In rural areas, VHCN and FTTP coverage increased 
from  2022,  but  remained  consistently  lower  than 
EU  average  (at  35%  for  VHCN  and  34.96%  for 
FTTP, compared to the EU’s 55.64% and 52.72%). 
Slovakia’s  5G  coverage  reached  79%  in  2023, 
exceeding the 2022 figure (55.34%) but remaining 
behind the EU average of over 89.3%. The gap  is 
particularly wide in rural areas, where 5G coverage 
is  46.14%,  compared  to  the  EU’s  73.71%.  Recent 
developments 
infrastructure 
deployment, including the possibility to install fibre 
optic  networks  on  existing  poles.  The  new 
construction  law  will  introduce  changes  aimed  at 
streamlining processes. While its full impact is still 
unclear,  the  Gigabit  Infrastructure  Act  is  expected 
to further simplify the rollout of gigabit networks. 

impacting 

are 

Slovak  businesses  show  resilience  to  ICT 
security  incidents  and  a  strong  focus  on 
employee  awareness,  but  they  fall  short  of 
the  EU  average  in  implementing  security 
measures.  While 
the  share  of  enterprises 
experiencing ICT security incidents due to external 

(63)  EU Payment Observatory: How electronic invoicing helps 

reduce late payments in commercial transactions, July 2024. 

(64)  On 19 September 2024 the Court of Justice of the European 
Union ruled that Slovakia had failed to fulfil its obligations 
under the Late Payment Directive (C-412/23). 

42 

attacks  increased  to  2.02%  in  2024,  from  1.78% 
in  2022,  it  remains  below  the  EU  average  of 
3.43% (65).  87.13%  of  enterprises  implemented 
ICT  security  measures,  below  the  EU’s  92.76%, 
while  61.44%  made  their  employees  aware  of 
their  obligations  in  ICT  security  related  issues 
(above the EU average of 59.97%) (66). 

Regulatory and administrative 
barriers 

The  complexity  of  administrative  processes 
and rapidly changing legislation are the most 
significant  problems  when  doing  business  in 
Slovakia.  These  areas  have  been  ranked  as  the 
two  main  issues  in  Eurobarometer measurements 
the  past  decade (67).  Another  study (68), 
for 
monitoring the frequency of amendments to laws 
affecting businesses in 2017-2021, indicated that 
25  significant  business-related  laws  had  been 
amended  308  times  over  the  monitored  period, 
which  is  almost  62  times  per  calendar  year  on 
average.  

An evidence-based and systematic legislative 
process, clear rules on better regulation, and 
enhanced  policy coordination  would  create a 
more  favourable  and  predictable  business 
environment.  While  in  the  past,  the  fast-track 
legislative  procedure  was  the  exception,  over  the 
past  few  years  it  has  become  standard  practice. 
The number of legislative proposals bypassing the 
interservice 
standard 
consultation increased most between March 2020 
and  February  2023  (mainly  due  to  the  COVID-19 
pandemic), reaching 46% of adopted laws (69) and 
(between  October  2023-
remains  still  high 
February  2025,  it  was  37%  compared  to  16%  in 
2016-2019).  This  shift  has  led  to  concerns, 
including  among  businesses,  that  the  quality  and 
thoroughness of legislation is being compromised. 

impact  assessment  and 

(65)  Eurostat, isoc_cisce_ic. 

(66)  Eurostat, isoc_cisce_ra. 

(67)  Eurobarometer: Businesses’ Attitudes towards Corruption in 

the EU (2013-2023). 

(68)  Slovak Business Agency, The analysis of the quality of the 
regulatory framework and the legislative process, 2022. 

(69)  Ministry of Finance of the Slovak Republic, 

Ako_nestrielat_naslepo.pdf, 2023. 

 
 
 
the 

and 

Reducing  the  reliance  on  fast-track  procedures, 
improving  the  quality,  setting  clear  and  binding 
rules on better regulation and implementing them 
effectively, 
excessive 
alleviating 
regulatory  burden  would  enable  businesses  to 
better  anticipate  and  plan  investments  (see  also 
the  Effective  institutional  framework  Annex).  The 
new  Government Council  for  Competitiveness  and 
Productivity  (a  merger  of  two  similar  advisory 
bodies) is expected to start  operations in the first 
half of 2025 and could stimulate dialogue on the 
competitiveness  of  the  Slovak  economy  between 
ministries  and  other  key  economic  and  social 
stakeholders. 

Graph A4.1: Making Business Easier: selected 
indicators. 

Share of (1) enterprises, (2) average intra-EU exports and 
imports in GDP, (3) firms, (4) SMEs. 
Sources: (1) EIB IS, (2) Eurostat, (3) ECFIN BCS, (4) SAFE 
survey. 

Progress has been made in adopting laws to 
alleviate 
regulatory  and  administrative 
burdens on businesses, but additional efforts 
are required to further enhance the business 
environment.  Over  the  last  few  years,  Slovakia 
has 
to  make 
business  easier,  including  under  the  RRP.  Within 
three  anti-bureaucratic 
the 

introduced  several  measures 

framework 

of 

Moreover, 

regulations. 

implemented 

to  build  a 

packages (70),  412  measures 
in 
2020-2024  brought  EUR 581.3  million  in  savings 
for 
the  business  environment.  Around  40 
legislative  proposals  are  being  assessed  annually 
to  prevent  gold-plating  and  250  ex-post 
evaluation are being conducted in order to review 
existing 
adopting 
proportionality  in  regulatory  impact  assessments 
(RIA) and the creation of an IT platform for better 
regulation  are  aimed  at  streamlining  the  RIA 
processes.  Even  though  the  measures  have  the 
potential 
competitive  business 
environment,  their  effects  have  not  yet  been 
widely  perceived  by  businesses.  According  to 
stakeholders,  they  have  provided  only  marginal 
improvements,  often  overshadowed  by 
large 
consolidation 
legislative  packages 
package)  adopted  without 
prior 
consultation  and  impact  assessment.  This  is  also 
confirmed by the EIB investment surveys (71), with 
the  score  for  business  and  labour  regulations  in 
Slovakia  significantly  deteriorating 
in  2024 
compared  to  the  previous  year.  The  perception  of 
business  regulations  as  a  barrier  to  investment 
worsened  among  Slovak  businesses,  with  that 
view  rising  from  57%  in  2023  to  70%  in  2024. 
This trend was echoed by labour regulations, which 
76%  of  businesses  saw  as  an  obstacle  to 
in  2024,  a  16  percentage-point 
investment 
increase on the previous year. 

sufficient 

(e.g. 

the 

The  government 
consolidation  package 
approved  by  Parliament  in  October  2024 
weighs  heavily  on  business  activity  and 
investments.  Key  measures  within  the  package 
that  have  substantially  affected  the  quality  of 
business  environment 
three-point 
increase  in  corporate  income  tax  (for  taxable 
income  over  EUR  5  million)  to  24%,  the  highest 
corporate tax of any of the Visegrád countries, and 
a  new  financial  transaction  tax  for  companies  at 
0.4%  per  bank  transfer  with  a  maximum  of 
EUR 40.  Slovakia  is  the  only  country  in  the  euro 
area to have this tax.  

include  a 

While  progress  has  been  made  in  adopting 
laws  to  improve  and  harmonise  insolvency 
procedures, additional efforts could be made 
to  further  prevent  insolvency  for  viable 
companies.  In  Slovakia’s  RRP,  a  set  of  laws  on 

(70)  Anti-bureaucratic packages | Improve business environment 

(71)  EIB Investment Survey 2024, EIB Investment Survey 2023. 

43 

51.2141061.927.347.916.61041.624.5010203040506070from private entitiesfrom public entitiesMaterial shortages as afactor limiting productionEU Trade IntegrationRegulation as a majorobstacle to investment(4) Late payments(3) Shortages(2) SingleMarket(1) RegulatoryburdenShare (%)EU27SK 
     
 
in  the  EU  for  civil  engineers  and  notaries,  the 
fourth  highest  for  architects  and  above  the  EU 
average  for  lawyers.  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. 

the 

transposition  deficit 

indicator,  measuring 

Slovakia  could  further  benefit  from  the 
single  market.  Although  the  country  has  made 
some  progress  in  addressing  conformity  deficit,  it 
improvement.  While  the 
still  has  areas  for 
the 
conformity  deficit 
percentage of all directives transposed incorrectly, 
decreased  in  2024  (1.1%)  compared  to  2023 
(1.3%),  it  remains  above  the  EU  average  in  2024 
(0.9%). Slovakia has also performed slightly worse 
on 
indicator.  The 
percentage  of  single  market  directives  not 
transposed increased from 0.6% in 2023 to 0.7% 
in 2024 though remaining below the 1% threshold 
set  by  the  European  Council.  In  addition,  in  2024 
Slovakia  resolved  95.5%  of  the  SOLVIT  cases  it 
handled  as  lead  centre  (EU  average  of  84.9%). 
Even  though  it  is  above  the  EU  average,  this  is  a 
drop  from  2023  when  it  resolved  100%  of  the 
cases.  Slovakia  has  more 
single  market 
infringement cases than the EU average (31 vs the 
EU  average  of  24  in  2024),  but  their  duration  is 
25% shorter than the EU-wide average. 

Public procurement 

and 

The new public procurement procedures have 
the  potential  to  both  benefit  and  hinder 
businesses.  While  the  amendment  to  the  Public 
Procurement  Act,  effective  from  August  2024, 
aims  to  simplify  the  processes  and  reduce 
administrative burden, it may also further hamper 
transparency 
public 
procurement,  making  it  easier  for  favouritism  to 
occur.  One  of  the  most  significant  changes  is  the 
merger  of  the  'sub-threshold  contract'  and  'low-
value  contract'  categories and  the  increase  in  the 
threshold  for  contracts  without  prior  publication 
from EUR 10 000 to EUR 50 000. This change may 
undermine  competition,  not  only  domestically  but 
the 
also 
The 
inefficient 

in  a  cross-border  context, 
of 

public  money. 

competition 

risking 

use 

in 

insolvency  procedures,  including  early  warning 
tools,  were  introduced  in  2022  and  2023  to 
improve  procedures  that  can  be  long  and  costly. 
However,  according  to  Eurostat  data,  the  number 
of  bankruptcies  in  Slovakia  is  increasing  and  was 
already higher in the first three quarters  of 2024 
(86) than for the full year of 2023 (85), with both 
higher than the 74 seen in 2022. Many companies 
in  financial  difficulties  are  still  viable  and  can  be 
rescued if their problems are identified at an early 
stage  and  if  they  are  assisted  in  diagnosing  their 
problems  and 
corrections  by 
implementing 
impartial  advisors.  Slovakia  can  benefit  from 
improving  its  existing  early  warning  mentoring 
tools for companies at risk of failure. 

Single market 

strong 
Slovak  businesses  demonstrate 
integration  into  both  the  single  market  and 
global value chains. Slovakia is one of the most 
export-oriented economies in the world. It has the 
highest  integration  rate  in  the  EU  for  goods:  the 
trade  volume  of  goods  represented  55%  of  its 
GDP  in  2024  (compared  to  the  EU  average  of 
27%).  Traditionally,  the  EU  remains  the  largest 
trading  partner  for  Slovak  exporters  with  a 
significant  77.1%  of  exports  directed  towards  EU 
markets (October 2024). Conversely, imports from 
EU  Member  States  have  also  dominated, 
accounting  for  a  substantial  63.6%  share (72).  Yet 
while  Slovakia’s  economy  has  a  substantial 
comparative  advantage  in  the  export  of  vehicles, 
diversifying  the  economy  away  from  reliance  on 
one  industrial  sector  and  focusing  on  innovation 
and  higher  added  value  will  be  essential  for 
building a more resilient economy. 

In  some  sectors,  market  regulations  create 
barriers  to  competition  and  market  entry.  At 
around  300,  Slovakia  has  the  fourth  highest 
reported  number  of  regulated  professions  in  the 
EU  (73).  This  presents  challenges  for  individuals 
seeking to  provide services  in  Slovakia.  The OECD 
PMR  data (74)  suggest 
restrictions  on 
regulated  professions  in  Slovakia  are  the  highest 

that 

(72)  Statistical Office of the Slovak Republic, December 2024. 

(73)  European Commission, Regulated professions database, 

December 2024 

(74)  OECD Product Market Regulation, July 2024 

44 

 
 
Eurobarometer analysis (75) also suggests that the 
perception  of  corruption  in  the  Slovak  business 
environment,  which  was  already  high,  has 
undergone one of the highest increases in the EU 
over the past year, up 6 percentage points on last 
year to 85% of companies stating that corruption 
is a widespread problem in Slovakia. Ensuring fair 
in  public 
competition  and  full 
procurement  will  be  key 
the 
effectiveness  and  efficiency  of  government 
spending.

to  enhancing 

transparency 

(75)  Eurobarometer: Businesses‘ attitudes towards corruption in 

the EU, April 2024 

45 

 
 
Table A4.1:  Making Business Easier: indicators. 

*Change in methodology in 2024: reporting late payments from public and private entities separately. 
**Data on single bids for 2024 is provisional and subject to revision. Due to missing data, the EU average of direct awards data is 
calculated without Romania. 
Sources: (1) ECFIN BCS, (2) Eurostat, (3) EIB IS, (4) Digital Decade Country reports, (5) Intrum Payment Report, (6) SAFE survey, 
(7) OECD, (8) up to 2023: Single Market and Competitiveness Scoreboard, 2024: Public procurement data space (PPDS). 

46 

POLICY AREA20202021202220232024EU-27 average8.823.331.814.310.010.013.823.027.026.025.320.20.70.70.90.90.92.37.211.17.313.010.913.4-66.771.369.1-78.8-62.366.964.2-64.0-13.855.379.0-89.3Regulatory environment21.122.414.119.227.324.514.012.812.115.513.015.616.110.212.917.914.615.1from public or private entities in the last 6 months50.845.655.155.7--from private entities in the previous or current quarter----51.247.9from public entities in the previous or current quarter----14.016.661.666.473.766.161.941.60.0410.0410.0410.0410.0450.0501.41.40.90.60.70.81.11.31.41.31.10.910010010010095.584.927.027.029.031.031.024.42627303325-535347.0SlovakiaINDICATOR NAMEInvestment climateShortagesMaterial shortage, firms facing constraints, %1Labour shortage, firms facing constraints, %1Vacancy rate, vacant posts as a % of all available ones (vacant + occupied)2InfrastructureTransport infrastructure as an obstacle to investment, % of firms reporting it as a major obstacle3VHCN coverage, %4FTTP coverage, %45G coverage, %4Reduction of regulatory and administrative barriersImpact of regulation on long-term investment, % firms reporting business regulation as a major obstacle3Late paymentsPayment gap - corporates B2B, difference in days between offered and actual payment5Payment gap - public sector, difference in days between offered and actual payment5Share of SMEs experiencing late payments, %*6Single MarketIntegrationEU trade integration, % (Average intra-EU imports + average intra EU exports)/GDP2EEA Services Trade Restrictiveness Index7ComplianceTransposition deficit, % of all directives not transposed8Conformity deficit, % of all directives transposed incorrectly8SOLVIT, % resolution rate per country8Number of pending infringement proceedings8Competition and transparency in public procurementSingle bids, % of total contractors**8Direct awards, %**8Public procurement 
 
 
 
 
      
 
ANNEX 5: CAPITAL MARKETS, FINANCIAL STABILITY AND ACCESS TO FINANCE 

Slovakia’s 

In  Slovakia,  private  investment  and  public 
spending  are  partially  financed  by  foreign 
savings.  While 
net 
negative, 
international  investment  position  has  continued 
to  strengthen  thanks  to  strong  nominal  GDP 
growth.  Capital  markets  remain  at  a  very  early 
stage  of  development  and  do  not  contribute 
sufficiently  to  the  financing  of  Slovak  companies. 
Retail participation in capital markets remains low, 
despite  some  progress  in  the  level  of  direct  and 
indirect  household 
investments.  Banks,  which 
dominate  the  financial  sector,  are  robust,  both  in 
terms  of  capital  and  liquidity.  Government  bonds 
account  for  a  large  part  of  the  institutional 
investor’s portfolio, but there is a noticeable trend 
of  diversification  through  investment  funds,  in 
particular  pension  funds  where  amendments  to 
pension  regulations  allow  for  greater  investment 
diversification. However, the less-developed capital 
markets reduce the exit options for private equity 
and venture capital investors, further compounding 
the  lack  of  funding  sources  for  innovation,  a  key 
element for competitiveness. 

Availability and use of domestic 
savings  

The  growing  net  private  savings  of  the 
Slovak  economy  have  been  supporting 
domestic  private 
investment  and  public 
finances.  In  the  last  decade,  the  private  savings 
ratio,  net  of  fixed  capital  consumption,  fluctuated 
around  its  ten-year  average  of  4.3%  of  GDP, 
reaching  a  maximum  of  8%  in  2014  The  net 
private  investment  ratio,  which  measures  the  net 
contribution  of  the  private  sector  to  capital 
accumulation  in  the  country,  exhibited  a  ten-year 
average of 3.6% of GDP and reached a maximum 
of 5.8% in 2016. During the same period, lending 
to  the  government  showed  an  average  deficit 
equivalent  to  2.9%  of  GDP.  Thus,  the  slightly 
positive  balance  between  net  domestic  savings 
and  net  investment,  together  with  the  substantial 
government  deficit,  resulted  in  net  borrowing  by 
Slovakia  from  foreign  economies  that  averaged 
2.3% of GDP, with a peak of 9.7% in 2022. Hence, 
Slovak private investment and public spending are 
partially  financed  by  foreign  savings  (see  Graph 
A5.1).  

Graph A5.1: Net savings-investment balance 

Source: AMECO 

Slovakia  has  a  negative  net  international 
(NIIP)  despite  some 
investment  position 
improvements throughout the last years.   As 
of  Q3  2024,  total  assets  to  foreigners  reached 
90.8% of GDP, while liabilities to foreigners stood 
at 140.5% of GDP, resulting in a net international 
investment position (NIIP) equivalent to -49.7% of 
GDP  (see  Graph  A5.2).  This  is  an  improvement 
compared  to  previous  three  years,  owing  to  the 
strong nominal GDP growth. At the same time, the 
net  stock  of  foreign  direct  investment  (FDI)  stood 
at -39.8% of GDP as of Q3 2024. The net portfolio 
investments turned positive to 7.3% of GDP as of 
Q3  2024.  The  net  stock  of  other  investments 
amounted to -27.4% of GDP. The stock of official 
foreign reserve assets increased to 10.1% of GDP 
at the end of 2024, compared to 3.6% of GDP at 
the  end  of  2017.  Thus,  the  Slovak  economy 
appears  to  be  well  integrated  in  international 
capital  flows,  notably  as  a  stable  recipient  of  FDI 
and other investments. 

Graph A5.2: International investment position 

Source: ECB 

47 

-10-505101520252017201820192020202120222023% of GDPPrivate investment, netLending to the governmentPrivate saving, netPrivate saving, grossBorrowing from the rest of the world-200-150-100-5005010015020172018201920202021202220232024-Q3% of GDPForeign Direct Investment, AssetsPortfolio Investment, AssetsOther investment, AssetsOfficial reserve assetsForeign Direct Investment, LiabilitiesPortfolio Investment, LiabilitiesOther investment, LiabilitiesNIIP 
 
  
  
 
 
Structure of the capital markets and 
size of the financial sector 

The  Slovak  economy  has  a  small  domestic 
capital  market.  The  market  capitalisation  of 
listed  equity  reached  1.5%  of  GDP  by  the  end  of 
2023 (see Graph A5.3). Non-financial corporations 
(NFCs)  accounted 
that 
capitalisation.  The  outstanding  volume  of  debt 
securities  reached  66.7%  of  GDP  at  the  end  of 
2023.  Government  bonds  accounted  for  almost 
69% of the total bonds by 2023.  

for  only  26.7%  of 

Graph A5.3: Capital markets and financial 
intermediaries in Slovakia 

insurers  from  other  EU  Member  States)  (76).  The 
assets of Slovak mandatory and voluntary pension 
funds  equated  to  14.4%  of  GDP  at  end  2023, 
which  makes  pension  funds  the  second  largest 
segment of the financial system after the banking 
sector (see Graph A.3.3). The Slovak pension fund 
sector  is  composed  of  around  five  companies 
managing 36 pension funds, and with total assets 
of  EUR  20.2  billion  (77),  (78).    The  total  assets  of 
investment  funds  accounted  for  7.9%  of  GDP  in 
2023  (see  section  on  institutional  investors).  The 
investment  fund  sector 
is  composed  of  six 
domestic  asset  management  companies  and  two 
foreign  asset  management  companies,  managing 
a  total  of  93  domestic  open-end  funds  and  one 
domestic  closed-end  fund,  with  total  assets  of 
EUR 10.9 billion (79). 

Resilience of the banking sector 

The  Slovak  banking  sector  remains  resilient, 
as  it  is  sufficiently  profitable  and  well 
capitalised.  The  Slovak  banks’  total  capital  ratio 
was  20.3%  in  Q3-2024  (EU  average:  20.1%), 
underlining  the  robustness  of  the  banking  sector. 
The common equity tier 1 ratio is at 17.7% in Q3-
(EU  average:  16.6%).  Banking  sector 
2024 
profitability 
the 
remained  healthy  despite 
introduction  of  the  bank  levy  (80),  with  return  on 
equity  of  10.2%  in  Q3-2024  (EU  average:  10%).  
This was largely due to higher net interest income, 
net  fee  and  commission  income,  and  a  year-on-
year  decrease  in  net  provisioning  (81).  Since  1 
August 2023, the National Bank of Slovakia (NBS) 
maintained 
the  countercyclical  capital  buffer 
(CCyB) at 1.5% in view of the risks present in the 
household and commercial real estate sectors (82). 
The  NBS  has  also  introduced  several  borrower-

(76)  NBS, 2024. Statistical Bulletin, Q3-2024, p.7. 

(77)  NBS, 2024. Statistical Bulletin, Q3-2024, p.7. 

(78)  NBS, 2024. Financial sector analytical data. 

(79)  NBS, 2024. Statistical Bulletin, Q3-2024, p.7. 

(80)  In 2024, banks will pay 30% super tax on profits in the form 
of  a  levy,  bringing  the  effective  tax  rate  to  almost  45%  in 
2024.  This bank levy is then set to fall 5% per year to 15% 
in 2027, before being eliminated in 2028. See NBS, Financial 
Stability Report, May 2024, p.36. 

(81)  NBS, 2024. Macroprudential Commentary, Dec. 2024, p.4. 

(82)  NBS, 2024. Financial Stability Report, May 2024, p.8. 

Source: ECB, EIOPA, AMECO. 

Even  though  the  financial  sector  in  Slovakia   
remains  dominated  by  banks,  non-bank 
financial intermediaries are growing as well. 
The  banking  sector  is  the  largest  segment  of  the 
financial services, accounting for 99.8% of GDP in 
2023,  which  remains  however  significantly  below 
the  EU  average  of  253.4%.  The  foreign-owned 
banks accounted for 87.4% of total banking sector 
assets in 2023. The banking sector also has a very 
high  level  of  concentration  with  the  top  five 
monetary financial institutions (MFIs) representing 
77.1%  the  sector  in  2023  (EU  average:  51.1%). 
The  insurance  sector  assets  accounted  for  only 
4.4%  of  GDP  at  end-2023  (EU  average:  54.8%). 
The 
is  composed  of  26 
undertakings,  out  of  which  nine  are  domestic 
insurance  corporations  with  total  assets  EUR  5.8 
billion  (the  rest  are  branches  of  insurers  or 

insurance  market 

48 

Non-financial corporationsFinancial corporationsNon-financial corporationsMFIsInsurance  and pension fundsOther financialsGovernmentMFIsPension fundsInsurance corporationsInvestment funds020406080100120 Listed equity             Bonds                        Assets by sector% of GDP 
   
 
based  measures  to  limit  potential  risks  of  real 
estate  developments  on  the  banking  sector  (83). 
Slovak  banks’  aggregate  Minimum  Requirement 
for  Own  Funds  and  Eligible  Liabilities  (MREL)  rate 
stood  at  32.1%  of  risk  weighted  assets  at  end-
2023  (84).  As  of  1  January  2024,  all  banks  in 
Slovakia meet their final MREL targets against an 
average  MREL  binding  target  (including  CBR)  of 
27.9%  TREA  (including  CBR)  (85).  Slovakia  has  not 
yet  published  information  on  its  national  bail-in 
mechanic in line with EBA guidelines (86). 

The  banking  sector  continues  to  have  a 
robust  liquidity  position.  The  structural  net 
stable funding ratio (NSFR) was 132% in Q3 2024, 
slightly declining from 134% in Q2 2024  (87). The 
liquidity  coverage  ratio  (LCR)  was  at  194%  in 
October  2024  (88).  The  sector’s  overall  liquidity 
position  has  strengthened  since  the  end  of  the 
first half of 2024, largely because growth in stable 
sources of funding, specifically deposits and bond 
issuances,  has  been  stronger  than  loan  growth. 
This has contributed to the ongoing slow decline in 
the  ratio  of  loans  to  deposit  and  bond  liabilities 
(89).  The  repayment  of  a  large  part  of  the 
remaining 
refinancing 
operations (TLTROs) in individual banks at the end 
of  the  Q1  2024  did  not  threaten  the  liquidity 
position (90).   

long-term 

targeted 

The  non-performing  loans  (NPL)  ratio  in  the 
Slovak  banking  sector  remains  low.  The 
overall  NPL  was  at  1.9% in  Q3  2024, in line  with 
the EU average, while the NPL ratio for NFCs was 
2.5%,  below  the  EU  average  (3.5%)  and  for 
households  was  1.9%,  below  the  EU  average 
(2.2%).  Similarly,  the  coverage  ratio  of  NPLs  was 
61.5%  in  Q3  2024  (EU  average:  42.1%),  which 
reflects banks’ ability to absorb future losses. The 
share  of  Stage  2  loans  in  the  total  portfolio  was 
9.8% in October 2024 (up from July  2024: 9.3%) 

(83)  European Commission, 2024, In-depth review: Slovakia. 

(84)  EBA MREL Dashboard - Q4 2023, p.13. 

(85)  EBA MREL Dashboard - Q4 2023, p.13.  CBR (Combined 

Buffer Requirement) and TREA (Total Risk Exposure Amount) 

(86)  EBA, Guidelines to resolution authorities on the publication of 

their approach to implementing the bail-in tool.  

(87)  NBS, 2024. Macroprudential Commentary, Dec. 2024, p.4. 

and  the  coverage  of  provisions  was  5.3%  (down 
from  July  2024:  5.5%)  (91).  From  a  financial 
stability  perspective,  the  slight  increase  in  the 
share  of  Stage  2  loans  does  not  represent  a 
significant risk, since it followed several months of 
substantial declines and affected only a few banks 
(92).  Although  NPL  ratios  are  showing  signs  of 
deterioration  in  the  commercial  real  estate  (CRE) 
portfolio, their level remains low (93).  

to 

Despite  recent  substantial  changes,  the 
Slovak Anti-Money Laundering/Combating the 
Financing  of  Terrorism (AML/CFT)  framework 
requires  additional  improvements.  Slovakia 
has agreed to amend its main AML/CFT Act by the 
end  of  2024  to  address  the  Commission’s 
IV 
concerns.  Similarly,  following  2022  AMLD 
Slovakia  Final  Report  Slovakia  has  compliantly 
reported  –  on  a  6-month  basis  -  about  the 
necessary  actions 
identified 
remediate 
in  December  2024 
weaknesses.  Furthermore, 
Moneyval  had  concluded  that  progress  was  not 
sufficient  to  justify  an  upgrade  for  three  of  the 
Financial 
(FATF) 
recommendations.  In  particular,  recommendations 
n°8 and n°15 are relevant for the Commission: (i) 
lacking  supervision  over  Non-profit  organizations 
(NPOs)  and (ii)  non-compliance with the definition 
of Virtual Assets Services Provider (VASP) activities 
provided under FATF, coupled with the absence of 
framework  for  Travel  Rule’s  application,  and 
lacking  monitoring  regarding  targeted  financial 
sanctions applied to VASPs. In addition, remaining 
concerns 
ownership 
information obligations for trusts and similar legal 
arrangements,  and  fit  and  proper’s  requirements, 
in  particular,  appear 
to  call  for  additional 
clarification. 

beneficial 

regarding 

Action 

Force 

Task 

Resilience of the non-bank financial 
intermediaries 

Slovakia’s insurance sector is profitable and 
solvent.  According  to  the  National  Bank  of 

(88)  NBS, 2024. Macroprudential Commentary, Dec. 2024, p.4. 

(91)  NBS, 2024. Macroprudential Commentary, Dec. 2024, p.4. 

(89)  NBS, 2024. Macroprudential Commentary, Dec. 2024, p.4. 

(92)  NBS, 2024. Macroprudential Commentary, Dec. 2024, p.4. 

(90)  NBS, 2024. Financial Stability Report, May 2024, p.43. 

(93)  NBS, 2024. Financial Stability Report, Nov. 2024, p.44. 

49 

 
 
 
 
Slovakia  (NBS),  the  insurance  sector’s  aggregate 
profit for the first half of 2024 reached EUR 149 
million  (annualised,  an  18.4%  increase  compared 
with 2023) (94). Nearly all major profit components 
contributed  to  this  growth,  except  for  non-life 
business  (95).  The  Solvency  Capital  Requirement 
ratio  was  at  192%  in  June  2024,  against  an  EU 
average of 258.6% (96). According to EIOPA’s 2024 
dashboard,  there 
insurance 
protection  gap  for  floods  in  Slovakia  that  should 
be monitored (97), 

is  a  considerable 

The  Slovak  pension  (second  pillar  and  third 
pillar)  fund  and  investment  fund  sectors 
have  seen  strong  asset  growth.  The  total 
volume  of  assets  increased  by  EUR  3.7  billion  to 
more  than  EUR 30  billion  in  2024.  In  sectoral 
terms,  growth  was  the  highest  in  the  second 
pension  pillar  (EUR  2.1  billion),  followed  by  the 
investment  fund  sector  (EUR 1.1 billion)  and  the 
third pension pillar (EUR 0.5 billion) (98). The growth 
trend in the second pension pillar may have been 
further  augmented  by  a recent 
law  change 
requiring  the  switching  of  some  savers’  assets 
from  bond  pension  funds  to  index  pension  funds 
(99). 

Sources of business funding and the 
role of banks 

Firms  in  Slovakia  rely  more  than  the  EU 
average  on  funding from  banks  and  far  less 
than  the  EU  average  on  capital  markets.  In 
2023, the overall level of non-financial corporation 
(NFC) funding in Slovakia was equivalent to 98.7% 
of  GDP,  which  is  substantially  lower  than  the  EU 
average  of  230.3%  of  GDP  (see  Graph  A5.4).   
When  looking  at NFC  funding  sources  in  Slovakia, 

(94)  NBS, 2024. Financial Stability Report, Nov. 2024, p.56. 

at  the  end  of  2023,  bank  finance  through  loans 
constituted  39.5%  of  all  funding  sources  for 
Slovak NFCs, which was more than the EU average 
of  27.2%.  Listed  shares  and  bonds  represented 
only  2.6%  of  funding  sources,  which  was  a  much 
smaller share than the EU average of 23.8%.  

Slovak  businesses  rely  mostly  on  internal 
financing,  as  do  their  peers  in  the  EU. 
According to the 2024 EIB Investment Survey, the 
investment  needs  of  66%  of  Slovak  firms’  re 
covered  by  internal  funding,  equivalent  to  the  EU 
average  of  66% (100).  At  the  same  time,  82%  of 
Slovak 
investment 
activities over the last three years were sufficient 
(close to the EU average of 80%), suggesting that 
there  is  no  material  financing  gap  relative  to 
investment demand (101). However, this may not be 
the  case  for  firms  with  no  or  limited  capacity  for 
internal funding, such as innovative start-up firms 
(see further below). 

firms  believe 

their 

that 

Credit  growth  has  been  on  a  general 
downward  path  for  NFCs  due  to  weak 
demand  and  an  uncertain  economic  outlook. 
For  NFCs,  the  annual  credit  growth  rate  in  the 
corporate loan portfolio fell to -2.5% in Q3-2024. 
Although  corporate  lending  has  also  slowed  in 
is  far  more 
other  EU  countries,  the  trend 
pronounced in Slovakia, partly because the country 
previously  experienced  higher 
in 
corporate  lending (102).  According  to  the  October 
2024  bank  lending  survey  conducted  by  the  NBS, 
banks  do  not  expect  any  notable  turnaround  in 
corporate lending in the near term due to elevated 
interest  rates  (even  if  rates  have  fallen  to  some 
extent  recently).  Lending  activity  is  higher  among 
smaller firms than larger due to their reliance on a 
different internal financing structure (103). 

cyclicality 

(95)  Non-life  insurance  includes  motor  insurance,  motor  third 
insurance, 

insurance,  property 

liability 

(MTPL) 

party 
reinsurance. 

(96)  NBS, 2024. Financial Stability Report, Nov. 2024, p.57. 

(97)  EIOPA, 2024. Dashboard on Insurance Protection for Natural 

Catastrophes in a Nutshell. 

(98)  NBS, 2024. Financial Stability Report, Nov. 2024, p.60. The 
relative growth rate in both the second and third pension 
pillars was 15%, while the rate in the investment fund sector 
was a slightly lower 12%. 

(100) EIB, 2024, 2024 EIB Investment Survey, p.29. 

(101) Ibid, p.7. 

(102) NBS, 2024, Financial Stability Report-Nov 2024 , p.27. 

(99)  NBS, 2024. Financial Stability Report, Nov. 2024, p. 61. 

(103) Ibid, p.29. 

50 

 
 
 
Graph A5.4: Composition of NFC funding as % of 
GDP 

put  forward  a  number  of  measures  to  modernise 
the  capital  market  infrastructure.  Moreover,  in 
2023 the Slovak Business Association prepared an 
analysis  on  how  to  promote  alternative  forms  of 
raising capital for SMEs (107). 

(1) Reference period 2023 
Source: Eurostat 

As  a  result  of  falling  interest  rates  and 
shifting  prospects  in  the  housing  market, 
demand  for  mortgages  has  picked  up,  albeit 
modestly  for  now.  Most  banks  anticipate  a 
further  increase  in  mortgage  demand  in  the 
coming  months (104).  For  households,  the  annual 
credit growth rate for adjusted loans was 3.3% in 
Q3-2024. 

Capital markets and the participation 
of retail investors 

Slovakia’s  capital  markets  remain  under-
developed.  The  main  stock  exchange  in  Slovakia 
is  the  Bratislava  Stock  Exchange  (BSSE).  The  use 
of equity by SMEs is very low, as only 2% of SMEs 
indicated in the 2023 SAFE survey that equity was 
relevant for them, compared to an EU  average of 
10.1% (105).  

In  the  past,  Slovakia  prepared  a  concept 
report  on  the  development  of  capital 
markets,  but  this  has  not  been  updated.  In 
April  2014,  the  Ministry  of  Finance,  together  with 
the  Ministry  of  Economy,  the  NBS,  the  BSSE  and 
the  Central  Securities  Depository  of  the  Slovak 
Republic  (CDCP),  developed  a  concept  report  for 
the development of the capital markets (106), which 

(104) NBS, 2024, Financial Stability Report-Nov 2024 , p.18. 

(105) European  Commission,  2023,  Data  and  Surveys-SAFE, 

Results by country, T27. 

(106) Ministry of Finance of the Slovak Republic, 2014, Concept for 

the development of capital market.  

to 

Slovak  households  have  a  low  savings  rate, 
with  a  high  share  of  cash  and  deposits  in 
households’  assets,  which  implies  that  there 
is  scope  to  further  increase  the  level  of 
direct  or  indirect  retail  investments.  Further 
encouraging  the  build-up  of  universal  funded 
supplementary  pension  schemes  would  positively 
contribute to (i) the sustainability and adequacy of 
pension  benefits;  (ii)  investment  in  equity;  (iii) 
access 
(v) 
innovation.   Slovak  households  have  a  stronger-
than-average holding of cash and deposits, which 
accounts for 52.1% of household assets compared 
to  the  EU  average  of  32.3%.  In  2023,  37.5%  of 
households’  financial  assets  were  held  in  pension 
and  investment  funds  or  held  directly  in  financial 
investment  instruments (108),  but  this  still  falls 
short  of  the  EU  average  of  45.4%  (see  Graph 
A5.5).  In  Slovakia,  direct  and  intermediated  retail 
investment by households was 41.9% in 2023 (EU 
average: 56.2%) (109).  

(iv)  growth;  and 

finance; 

initiatives  are  aimed  at 
Recent  policy 
boosting the level of retail participation. The 
Slovak  government  is  scheduled  to  launch  two 
government bond issuances for retail users during 
the  first  half  of  2025  (with  maturities  up  to  five 
years). A wider review of the incentives in place to 
promote  retail  participation  in  financial  markets 
may also be warranted. 

(107) BSA,  2023,  Alternative  forms  of  raising  capital  for  SMEs 

through the capital markets.  

(108) The breakdown: insurance and pension funds 21.8%, 

investment funds 10.8%, bonds 4.1%, listed shares 0.7% 

(109) European Commission, 2024, Overview of CMU Indicators – 

2024 Update, Indicator 22. 

51 

050100150200250SKEU% of GDPLoansTrade credit and advancesBondsListed sharesUnlisted sharesOther equity 
  
 
 
Graph A5.5: Composition of household financial 
assets per capita and as % of GDP 

(1) Reference period 2023 
Source: Eurostat 

The role of domestic institutional 
investors 

The  Slovak  fund  management  industry  is 
quite small, with rising demand in investment 
funds.  In  Q3-2024,  the  largest  portion  of  total 
assets was allocated to investment funds (39.1%), 
followed  by  stocks  (24.4%),  bonds  (18.2%)  and 
deposits  and  loan  claims  (16.4%) (110).  This  trend 
towards  investment  funds  may  be  a  result  of  a 
recent pension system reform. 

that 

portfolio 

insurance  sector  has  an 
The  Slovak 
investment 
is  mostly 
composed  of  bond  holdings,  and  cash  and 
deposits.  By  mid-2024,  the  insurance  sector 
portfolio held most assets in government bonds, at 
34%  (EEA  as  a  whole:  19%) (111),  followed  by 
corporate bonds at 26.1%, and cash and deposits 
at 5.3%. Investment funds accounted for 23.9% of 
insurers’ investment portfolio (of which 52.6% is in 
equity 
in  private  equity 
funds) (112). Equity accounted for 4.6% of the total 
assets of the insurance sector. 

funds  and  0.1% 

recent  pension  system  reform.  Investment 
fund  shares  accounted  for  62.4%  of  the  total 
assets held by pension funds as of Q3-2024 (113). 
Debt  securities  are  the  second  largest  investment 
asset held by pension funds at 29.4%, while bank 
currency  and  deposits  account  for  6.2%  and 
equities account for 1.5% of their total assets. The 
trend  towards  reliance  on  investment  funds  may 
be  due  to  the  recent  legal  change  for  pillar  II, 
which  supports  the  switch  from  bond  to  index 
pension funds (a type of equity fund) on a phased 
basis  according  to  the  saver’s  age,  with  these 
funds  offering  potentially  higher  returns  and 
carrying  a  corresponding  higher  level  of  risk (114). 
‘Overall,  a  better  developed  pensions  sector  could 
help develop the domestic capital market. 

The  participation  of  domestic  institutional 
investors  in  providing  funding  for  start-ups 
and  venture  capital  investors  is  low.  A  2024 
paper  by  think  tank  CEP  showed  that  pension 
funds in Croatia, Slovakia, and Slovenia accounted 
for  only  6%  of  private  equity  and  venture  capital 
funds  raised  annually  between  2007-2023,  a 
figure that falls substantially short of the 19% for 
the Baltic states or 20% shares for Nordic Member 
States (115). In this regard, over time, revised limits 
for  pension  funds  to  invest  in  private  equity  and 
venture capital funds could help to facilitate more 
funding for Slovak startups.  

Recent  policy  action  may  facilitate  a  shift 
towards 
investment 
strategies. These measures include: 

dynamic 

more 

On 1 January 2023, a pension system reform 
took  place  that  introduced  changes  to  pillar 
II  of  the  Slovak  pension  system.  First-time 
workers  under  the  age  of  40  were  enrolled 
automatically (with the option to opt-out after two 
years),  and  the  default  investment  option  was 
changed  from  guaranteed-return  bond  funds  to 
index funds unless otherwise selected by the new 
participant.  All  participants  will  gradually  move  to 
guaranteed bond funds from the age of 54 (116). 

The  domestic  pension  fund  industry  has  an 
investment  profile  that  relies  more  on 
investment  funds  than  bonds,  owing  to  a 

(110) ECB, 2024, Euro-Area Investment Funds, Q3-2024. 

(111) EIOPA, 2024, Insurance Statistics. 

(112) EIOPA, 2024, Insurance Statistics. 

(113) ECB, 2024, Euro-Area Pension Funds, Q3-2024. 

(114) NBS, 2024, Financial Stability Report – Nov. 2024, p.61. 

(115) ECMI, 2024, Closing the gaping hole in the capital market for 

EU start-ups – the role of pension funds, p.2. 

(116) NBS, 2024, Financial Stability Report – Nov. 2024, p.61. 

52 

0501001502002500102030405060708090SKEUSKEUper capita (000 EUR) (lhs)% of GDP GDP (rhs)Currency and depositsInsurance and pension fundsInvestment fundsBondsListed sharesUnlisted sharesOther equityHH Debt (liability) 
  
 
 
Table A5.1:  Financial indicators 

(1) Annualised data. 
Credit growth and pension funds EU data refers to the EA average. 
Source: ECB, ESTAT, EIOPA, DG FISMA CMU Dashboard, AMECO. 

As a way of promoting wider participation in pillar 
III  of  the  pension  system,  the  government 
gradually 
annual 
management  fees  of  supplementary  pension 
companies from 1.20% of the pension fund assets 
in 2024 to 1% in 2025.  

the  maximum 

lowered 

The depth of available venture and 
growth capital 

The  domestic  venture  and  growth  capital 
market is not developed enough to meet the 
financing needs of innovative firms. The value 
of  annual  private  equity  relative  to  nominal  GDP 
increased  from  0.02%  in 2022  to  0.03% in  2023 
(EU  average:  0.41%) (117),  which  is  among  the 
lowest  in  the  EU.  The  value  of  annual  venture 
to  nominal  GDP 
relative 
capital 
dropped  from  0.02%  in  2022  to  0.01%  in  2023 
(EU  average:  0.05%) (118).  Given 
limited 

investment 

the 

venture capital (VC) and private equity (PE) activity 
in Slovakia, there is a financing gap for early-stage 
innovative firms in need of capital.  

initiatives 

There  are  some 
in  place  to 
promote start-up funding. For instance, there is 
a crowdfunding platform available to enable some 
businesses  to  access  venture  and  growth  capital 
but  the  financial  offer  is  limited.  The  NBS  has 
established  an  innovation  hub  and  a  regulatory 
sandbox 
in  financial 
services. However, there is no comprehensive legal 
framework to facilitate the creation and growth of 
start-ups.  Further  measures  to  promote  and 
facilitate  initial  public  offering  (IPO)  activity  could 
also improve the ability of successful start-ups to 
scale-up, while offering an attractive exit option to 
VC and PE investors.  

to  facilitate 

innovation 

Financing the green transition 

(117) European Commission, 2024, Overview of CMU Indicators – 

2024 Update, Indicator 11 

(118) European Commission, 2024, Overview of CMU Indicators – 

2024 Update, Indicator 16.  

The  financing  needs  of  Slovakia’s  green 
transition  may  pose  a  challenge.  The  Slovak 
government  has  already  prioritised  the  transition 
to a greener economy in its recovery and resilience 
plan (RRP), and allocates over half of the total RRP 

53 

20172018201920202021202220232024-Q3EUTotal assets of MFIs (% of GDP)91,490,891,599,2104,6103,599,892,8248,4Common Equity Tier 1 ratio16,215,515,816,816,716,817,317,716,6Total capital adequacy ratio18,617,818,019,319,419,520,120,320,1Overall NPL ratio (% of all loans)3,73,22,92,52,01,71,81,91,9NPL (% loans to NFC-Non financial corporations)4,94,03,53,42,82,32,52,53,5NPL (% loans to HH-Households)3,83,43,02,62,21,81,91,92,2NPL-Non performing loans coverage ratio65,669,868,768,471,169,460,161,542,1Return on Equity19,39,38,35,38,49,411,510,210,0Loans to NFCs (% of GDP)20,720,520,320,820,020,718,917,530,0Loans to HHs (% of GDP)38,640,541,744,444,745,742,641,044,5NFC credit annual % growth7,86,44,24,36,09,82,8-2,50,8HH credit annual % growth12,410,78,56,69,110,03,83,30,7Stock market capitalisation (% of GDP)5,35,32,92,82,01,81,51,769,3Initial public offerings (% of GDP)0,000,000,000,000,000,000,00-0,05Market funding ratio29,828,427,524,723,621,720,4-49,6Private equity (% of GDP)0,010,030,040,020,050,020,03-0,41Venture capital (% of GDP)0,000,000,020,020,020,020,01-0,05Financial literacy (composite)------45,0-45,5Bonds (as % of HH financial assets)3,33,73,93,93,33,74,1-2,7Listed shares (as % of HH financial assets)0,60,20,40,50,70,60,7-4,8Investment funds (as % of HH financial assets)7,57,37,47,79,19,310,8-10,0Insurance/pension funds (as % of HH financial assets)19,419,019,619,920,821,021,8-27,8Total assets of all insurers (% of GDP)7,87,17,37,56,04,84,44,154,8Pension funds assets (% of GDP)--12,413,915,113,614,415,523,41-34-1011-1718-2425-27Colours indicate performance ranking among 27 EU Member States.Banking sectorNon-banks sector 
 
 
   
 
Ministry  as  well  as  by  universities,  business 
entities and non-profit organisations.  

to  support 

transition (119).  The 
funding 
this 
financial  sector  can  also  help  the  transition  to  a 
green,  low-carbon  and  climate  resilient  economy 
by  scaling  up  capital  directed towards low-carbon 
activities.  In Slovakia, the issuance of bonds with 
environmental,  social,  and  governance  objectives 
as a share of total bond issuance was very low in 
H1  2024  at  around  3%  (Slovakia’s  three-year 
average: around 5%) and is very low compared to 
most of its EU peers (120). 

Financial literacy 

Although  financial  literacy  in  Slovakia  has 
improved over the years, more can be done in 
terms  of  depth  of  knowledge  for  retail 
investors  and  SMEs.  Financial  literacy  is  crucial 
to  promote  retail-investor  participation  in  capital 
markets  but  also  to  familiarise  SMEs  with 
alternatives  to  bank  financing.  The  July  2023 
Eurobarometer  survey  shows  that  only  20%  of 
Slovaks have a high level of financial literacy, 63% 
a  medium  level,  and  the  remaining  17%  a  low 
level, compared to the EU average of 18% for high 
literacy,  64%  for  medium,  and  18%  for  low (121). 
This leads to an overall financial literacy indicator 
(the  average  of  the  financial  knowledge  and 
financial  behaviour  indicators)  of  45%  vs  an  EU 
average score of 45.5% (122).  

In Slovakia, recent initiatives have sought to 
improve  financial  literacy.  The  Ministry  of 
Education  prepared  the  national  financial  literacy 
standard  (NSFL),  which  entered  into  force  on  1 
September 2017. The NSFL focuses on topics such 
as financial responsibility, money protection, credit 
risk 
and 
management and insurance, etc. In addition to the 
NSFL,  many  other  activities  aimed  at  increasing 
financial 
in  Slovakia  are  now  being 
developed  by  the  NBS (123)  alongside  the  Finance 

investment, 

savings 

literacy 

debt, 

and 

(119) European Commission, 2024, RRP Scoreboard. 

(120) AFME, 2024,  CMU Key Performance Indicators, p.23. 

(121) European  Commission,  2023,  Flash  Eurobarometer  Survey  -
Monitoring  the  level  of  financial  literacy  in  the  EU  -  July 
2023, p.17. 

(122) European Commission, 2024, Overview of CMU Indicators – 

2024 Update, Indicator 27. 

(123) NBS, 2019, The NBS financial literacy support strategy. 

54 

 
 
 
ANNEX 6: EFFECTIVE INSTITUTIONAL FRAMEWORK 

potential 

Slovakia’s institutional framework influences 
faces  many 
its  competitiveness.  Slovakia 
governance, 
regulatory 
with 
challenges 
of 
effectiveness 
strategic 
and 
investments,  and  absorption  of  EU 
funds. 
Effectiveness  of  justice  and  the  anti-corruption 
framework  have  not  increased.  Slovakia  would 
benefit  from  reducing  administrative  burdens, 
improving  the  quality  and  predictability  of  the 
legislative  and  regulatory  environment,  increasing 
the professionalism of the civil service and making 
it more attractive as an employer. A reform of the 
local governance structure may also be warranted 
to  address  structural  challenges  in  implementing 
viable 
investment  projects  and  absorbing  EU 
funds.  

30%)  (124).  Overall,  the  perceived  quality  of 
government  remains  below  the  EU  average  and 
(125).  The  structural 
has  deteriorated  slightly 
weakness  of  local  government  remains.  84%  of 
municipalities  have  less  than  2000  inhabitants 
and  only  2%  have  more  than  20,000  inhabitants. 
The  high  fragmentation  and  limited  capacity  of 
lead  to  regional  disparities 
municipalities 
in 
services  and  management  of 
delivery  of 
(126).  The  underfunding  of 
local 
investments 
government was aggravated in recent years by the 
transfer  of  new  responsibilities  from  the  central 
level.  The  government  plans  to  set  up  centres  for 
shared  services  in  municipalities  within  the  least 
developed  regions.  Efforts  to  encourage  inter-
municipal cooperation however face barriers (127).  

Public perceptions 

Graph A6.1: Trust in justice, regional / local 
authorities and in government 

Graph A6.2: Indicators of Regulatory Policy and 
Governance (iREG) 

(1) EU-27 from 2019; EU-28 before 
Source: Standard Eurobarometer surveys 

Trust  in  public  institutions  is  below  the  EU 
average.  Trust  in  local  authorities  has  seen  a 
significant  increase  and  ranks  higher  than  central 
government  and  the  judiciary  (GraphA6.1).  In 
Slovakia,  60%  of  citizens  believe  that  reducing 
bureaucracy  would  enhance 
in  public 
administration  (compared  to  the  EU's  52%),  42% 
prefer  easier  interactions  with  the  administration 
(compared  to  the  EU's  28%),  and  37%  desire 
better-skilled  civil  servants  (compared  to the  EU's 

trust 

Source: OECD (2025), Regulatory Policy Outlook 2025 and 
Better Regulation across the European Union 2025 
(forthcoming). 

(124) Understanding Europeans’ views on reform needs - April 
2023 - - Eurobarometer survey, Country Fact Sheet. 

(125) Inforegio - European Quality of Government Index 

(126) Švikruha M, Bardovič J. Malé Obce A Problém Poskytovania 
Vybraných Služieb: Prípad Slovenska. Central European 
Papers. 2024;12(1):39-62. Doi: 10.25142/Cep.2024.003. 

(127) J. Nemec, Nikoleta Jakuš Muthová, Beáta Mikušová 

Meričková, 2023, Barriers to inter-municipal cooperation 

55 

00.10.20.30.40.50.60.70.8AutumnSpringAutumnSpringAutumnSpringAutumnSpringAutumnSpringAutumnSummerWinterSummerWinterSpringAutumnSpringAutumn2014201520162017201820192020202220232024Justice,  legal system EU27Justice,  legal system SKRegional or local public authorities EU27Regional or local public authorities SKGovernment  EU27Government  SK0.00.51.01.52.02.53.03.54.0Primary lawsSubordinateregulationsPrimary lawsSubordinateregulationsPrimary lawsSubordinateregulationsSK_StakeholderengagementSK_Regulatory ImpactAssessmentSK_Ex-post evaluation oflegislationMethodologySystematic adoptionTransparencyOversight and quality control2021EU-27 
 
      
   
 
 
 
 
Table A6.1:  Slovakia. Selected indicators on administrative burden reduction and simplification 

(1) This table presents a subset of iREG indicators focusing on regulatory costs. The indicators refer to primary legislation. 
Source: OECD (2025), Regulatory Policy Outlook 2025 [https://doi.org/10.1787/56b60e39-en] and Better Regulation across the 
European Union 2025 (forthcoming) 

Quality of legislation and regulatory 
simplification 

a 

focus 

legislation,  with 

Despite  a  generally  well-defined  formal 
framework  for  regulatory  governance,  its 
implementation  remains  ineffective.  Impact 
assessments are conducted for draft primary and 
secondary 
on 
administrative  burdens.  Despite  of  efforts  to 
strengthen  analytical  capacity,  ministries  still 
struggle  to  assess  wider  social  and  economic 
impact 
impacts 
assessments  is  often  limited,  and  enforcement  is 
ineffective. In 2023, more than half of the impact 
assessments  of  draft  laws  presented  to  the 
legislative  council  of  the  government  received  a 
negative  opinion  (129).  However,  as  these  opinions 
are  not  binding,  the  effectiveness  of  the  rules  is 
marginal. Trainings on better regulation rules have 
been  initiated.  These  cover  topics  as  gold-plating 
and  the  “one in, two  out” principle  and  could  help 

the  quality  of 

(128).  Also, 

(128) OECD Regulatory Policy Outlook 2025. 

(129) Výročná Správa Stálej Pracovnej Komisie Legislatívnej Rady 
Vlády Sr Na Posudzovanie Vybraných Vplyvov Za Rok 2023 

the 

time, 

improve the quality of impact assessments (130). At 
the  same 
regulatory  governance 
procedures  are  not  obligatory  for  the  parliament, 
which  affects  the  quality  of  legislation.  In  2023, 
53%  of  the  legislative  initiatives  were  tabled  by 
members  of  the  parliament  (131).  The  lack  of 
effective  rules  and  their  enforcement  also  has  a 
strong impact on the business environment (Annex 
4). 

The  swift  adoption  of  legislation  in  recent 
years  has  negatively  impacted  its  quality. 
There  is  a  tendency  to  divert  from  the  standard 
procedure  and  adopt  laws  without  proper  impact 
assessment  or  parliamentary  oversight.  As  a 
result,  public  consultations  and  stakeholder 
involvement remained limited (132).  

(130) Opatrenie Ex post | Podnikateľské prostredie | MHSR 

(131) Staronova K, Lacková N, data] Sloboda M. Post-crisis 

Emergency Legislation Consolidation: Regulatory Quality 
Principles for Good Times Only? European Journal of Risk 
Regulation. 2024;15(3):637-655. doi:10.1017/err.2023.69 

(132) See the 2024 country-specific chapter for Slovakia of the 

Rule of Law Report. 

56 

Ex ante impact assessment of legislationEx post evaluation of legislationIdentify and assess the impacts of the baseline or ‘do nothing’ option.Is required to consider the consistency of regulations and address areas of duplication.Identify and assess the impacts of alternative non-regulatory options.Is required to contain an assessment of administrative burdens.Quantify administrative burdens of new regulations.Is required to contain an assessment of substantive compliance costs.Quantify substantial costs of compliance of new regulations.Compares the impact of the existing regulation to alternative options.Assess macroeconomic costs of new regulations. Periodic ex post evaluation of existing regulations is mandatory.Assess the level of compliance.Government uses stock-flow linkage rules when introducing new regulations (e.g., one-in one-out).Identify and assess potential enforcement mechanisms.A standing body has published an in-depth review of specific regulatory areas in the last 3 years.In the last 5 years, public stocktakes have invited businesses and citizens to assess the effectiveness, efficiency, and burdens of legislation.When developing new legislation, regulators are required to …Yes /  For all primary laws For major primary laws For some primary lawsNo / Never 
 
 
 
   
 
Social dialogue 

in  Slovakia 

social  dialogue 

Although 
in  Slovakia 
experienced  challenges  during  the  Covid-19 
pandemic,  it  returned  to  its  usual  practice 
is 
afterwards.  Social  dialogue 
institutionally anchored in bodies like the tripartite 
Economic  and  Social  Council,  which  comprises 
representatives  from  the  government,  employers' 
organisations,  and  trade  unions.  As  an  advisory 
body  to  the  government,  the  Council  discusses 
legislative  proposals  and  provides  a  platform  for 
dialogue  on  various  issues  related  labour  market 
and  employment  regulations,  minimum  wages,  or 
social  protection.  The  Council  adopts  only  non-
legally  binding 
recommendations.  The  social 
partners play a crucial role in forecasting skills for 
the labour market (through the Alliance of Sectoral 
Councils) (133). 

its 

and 

The government has signed up to supporting 
social  dialogue  and  collective  bargaining, 
especially 
employee 
quality 
participation  in  decision-making.  In  August 
2024,  the  government  and  the  social  partners 
signed a declaration on the development of social 
dialogue 
in  Slovakia.  Nevertheless,  challenges 
remain  especially  in  the  private  sector.  Especially 
in  small  businesses,  the  absence  of  union 
organisation  persists.  With  the  use  of  targeted 
support  from  ESF+,  the  Ministry  of  Labour 
launched a national project in June 2023 aimed at 
supporting social dialogue. The project´s budget is 
EUR 23 million, channelled through the Alliance of 
Sectoral Councils to the social partners. 

Efficiency of selected administrative 
procedures 

faster 

related 

procedures 

permit-granting 

(122  days  from 

longer  than  the  EU  average  to  award 
take 
procurement  contracts 
the 
deadline to submit offers in Slovakia vs 99 days in 
the  EU-27).  This  contributes  to  uncertainty  for 
companies.  Moreover,  the B-READY indicators  (134) 
show  great  potential  for  cutting  the  time  needed 
to  obtain  a  building  permit  and  an  environmental 
licence,  as  well  as  the  time  needed  to  draft,  file 
and  pay  and  to  complete  a  generic  tax  audit. 
According  to  a  report  monitoring  implementation 
of the Commission Recommendation and Guidance 
for 
on 
renewable  energy  and 
infrastructure 
projects  (135),  there  is  clearly  scope  for  further 
aligning  national  practices  in  Slovakia  with  the 
guidance, to support faster and shorter procedures 
for  the  licensing  of  renewable  energy  projects. 
Lastly,  while  the  OECD  product  market  regulation 
indicator  shows  that  while  Slovakia´s  licensing 
system  is  less  burdensome  than  the  EU  average, 
there 
is  still  some  room  for  adopting  best 
practices.  For  example,  while  the  government 
keeps  an  up-to-date  online  inventory  of  all  the 
permits and licences required/issued to businesses 
by  public  bodies,  there  is  no  requirement  for  the 
government  to  regularly  review  it  and  assess 
whether  such 
licences  and  permits  are  still 
required  or  should  be  withdrawn  (see  also  Annex 
4). 

Digital public services 

Slovakia  is  approaching  the  EU  average  in 
providing  digital  public  services  to  citizens 
and  businesses  (table  A6.2).  On  digital  public 
services  for  citizens,  Slovakia  scores  72/100, 
against the EU average of 79/100. For availability 
of  digital  public  services  for  businesses,  Slovakia 
scores 79/100 (against an EU average of 85/100). 
To  advance  in  this  area,  Slovakia  is  working  on 
digitalising its company register (136). Slovakia has 

Selected indicators point to Slovakia’s public 
administration taking longer than average to 
complete procedures. For example, public buyers 

(133) For  an  analysis  of  the  involvement  of  Slovakia’s  social 
partners at national level in the European Semester and the 
Recovery  and  Resilience  Facility,  see  Eurofound  (2025), 
National-level  social  governance  of  the  European  Semester 
and the Recovery and Resilience Facility. 

(134) World Bank. 2024. Business Ready 2024. Washington, DC: 

World Bank. doi:10.1596/978-1-4648-2021-2. 

(135) European Commission: Directorate-General for 

Energy, Monitoring the implementation of the Commission 
recommendation and guidance on speeding up permit-
granting procedures for renewable energy and related 
infrastructure projects – Final report, Publications Office of 
the European Union, 2025, link. 

(136) National reform programme 2024 

57 

 
 
 
 
Table A6.2:  Digital Decade targets monitored through the Digital Economy and Society Index 

Source: State of the Digital Decade report 2024d 

made  considerable  progress  as  regards  access  to 
electronic  health  records  (from  42%  in  2022  to 
66%  in  2023)  but  is  still  considerably  below  the 
EU average (79%). 

Slovakia  is  advancing  towards  seamless, 
automated exchange of authentic documents 
and  data  across  the  EU.  It  has  developed  the 
necessary  infrastructure  and  is  beginning  the 
process  of  connecting  the  first  authorities  to  the 
Once-Only  Technical  System  (137).  As  part  of  its 
RRP,  Slovakia  is  working  to  consolidate  access  to 
services via the central government portals and to 
increase the online delivery of life events. Specific 
programmes  have  been  put  in  place  increase 
digital skills of elderly and marginalised groups.  

The share of e-government users is relatively 
high  in  Slovakia  (80.5%),  above  the  EU 
average  of  75%.  Yet  the  use  of  eID  to  access 
public  services  (8%)  remained  considerably  lower 
than  the  EU  average  (36.1%).  Only  2%  of  eID 
users  are  estimated  to  have  accessed  their 
electronic  health  records,  pointing  to  a  need  for 
(138). 
increased  awareness  about  the  service 
Slovakia  has  also  not  yet  set  up  and  notified  eID 
schemes  for 
legal  persons  under  the  eIDAS 
Regulation (139). This means that Slovak businesses 
cannot  authenticate  themselves  to  access  public 
services  provided  by  other  Member  States, 
the  Once-Only 
including 

those  enabled  by 

(137) European Commission, The Once Only Principle System: A 

breakthrough for the EU’s Digital Single Market 

(138) European Commission. Digital Decade 2024: Country reports 

(139) European Commission, eIDAS Dashboard. 

Technical  System,  part  of  the  EU  Single  Digital 
Gateway (140). 

Civil service 

Some  major  challenges  are  affecting  the 
quality  of  the  civil  service  in  Slovakia.  The 
share civil servants with higher education (52.8%) 
is  around  that  of  the  EU-27  (52.8%),  as  is  the 
participation rate of civil servants in adult learning 
(20.6% in Slovakia and 18.9% in EU-27) (141). The 
attractiveness  of  the  public  administration  has 
declined (142) and the proportion of staff below the 
age  of  49  years  is  decreasing.  The  decentralised 
human  resources  management  creates  disparities 
in 
across 
and 
administrations (143). The lack of dedicated training 
policy  and  clear  responsibility  for  assessing  skills 
gaps  creates  additional  barriers  to  improving 
productivity of civil servants. 

remuneration 

appraisal 

(140) European Commission, Once-Only Technical System 

Acceleratormeter 

(141) Eurostat. 2025. European Union Labour Force Survey. 

(142) JAHODA, Robert et al. The Low Demand for Public 

Administration Programs in the Czech Republic and Slovakia: 
What May be Behind it?. Transylvanian Review of 
Administrative Sciences, [S.l.], p. 99-117, dec. 2022. ISSN 
1842-2845. 
<https://rtsa.ro/tras/index.php/tras/article/view/715>. 

(143) Kahancová, M., & Staroňová, K. (2023). Arms-length 
influence: Public sector wage setting and export-led 
economic growth in Czechia and Slovakia. European Journal 
of Industrial Relations, 30(1), 97-
119. https://doi.org/10.1177/09596801231215901 

58 

Digital Decadetarget by 20302022202320242024EU-27Digitalisation of public services165677279100Score (0 to 100)20212022202320232030275787985100Score (0 to 100)202120222023202320303na426679100Score (0 to 100)20212022202320232030SlovakiaEU-27Digital public services for citizensDigital public services for businessesAccess to e-health records 
 
 
 
  
 
Previous  reforms  promoting  merit-based 
recruitment  of  civil  servants  may  be 
significantly weakened. The amendments to the 
Civil  Service  Act  in  2021  relaxed  the  rules  for 
removal of senior civil servants. This was followed 
by the replacement of staff at some management 
positions. In 2024, the Civil Service Council,  which 
monitored  civil  service  policy  in  Slovakia  was 
functions  were 
abolished 
transferred  to  a  newly  established  civil  service 
the 
control  and  monitoring  department 
government  office.  The  Council‘s 
in 
coordinating  the  human  resources  management, 
promoting integrity, depoliticisation and motivation 
of civil servants will not be transferred to another 
body. 

in 
role 

control 

(144). 

Its 

about 

serious 

concerns 

turnover  of 

prosecution  and  police.  Decentralisations  of 
employees 
investigations  and 
responsible  for  these  had  a  largely  negative 
impact  on  the  adequate  follow  up  of  ongoing 
cases.  There  are  thus  newly  arisen,  as  well  as 
the 
persistent 
effectiveness of the fight against corruption. These 
include the impact on the degree of specialisation 
and  capacity  that  was  built  over  the  past  years, 
funded  by  the  RRF  (e.g.  ensuring  the  training  of 
police  officers  in  the  area  of  anti-corruption,  as 
well as the discretionary power of the Prosecutor-
General in particular to annul any final decision by 
lower-ranking  prosecutors  or  the  police  in  the 
investigations  of  high-level  corruption  cases. 
Foreign  bribery 
low 
enforcement  levels,  with  one  case  being  reported 
(149).  

remains  an  area  with 

Integrity 

Although corruption is considered widespread 
and a problem when doing business, Slovakia 
relaxed  its  laws  punishing  corruption  and 
dissolved specialised anti-corruption entities. 
In  Slovakia,  85%  of  companies  consider  that 
corruption  is  widespread  (EU  average  64%)  and 
63%  consider  that  corruption  is  a  problem  when 
doing  business  (EU  average  36%)  (145).  Moreover, 
only  9%  of  companies  believe  that  people  and 
businesses caught for bribing a senior official  are 
appropriately punished (EU average 31%) (146). The 
criminal 
law  reform  raises  serious  concerns 
regarding  the  robustness  of  Slovakia’s  legislative 
framework  against  corruption,  reducing  sanction 
levels  for  corruption  crimes  and  shortening  the 
period in which they can be brought to justice. As a 
result  of  amendments  to  the  Criminal  Codes, 
several  high-level  corruption  cases  have  been 
dropped  in  2024  (147).  Besides,  throughout  2024, 
Slovakia  dissolved 
the  autonomous  Special 
Prosecution  Office,  the  specialised  police  National 
Crime  Agency  (NAKA)  and  the  Department  of 
Corruption Prevention of the Government Office in 
2024  (148)  and  subsequently  reorganised  both 

Public  procurement  remains  an  area  at  high 
in  Slovakia.  45%  of 
risk  of  corruption 
companies (EU average 27%) think that corruption 
has prevented them from winning a public tender 
or a public procurement contract in practice in the 
last  three  years  (150).  Amendments  to  the  Public 
Procurement  Act  aim 
public 
procurement  rules.  However,  stakeholders  report 
that the amendments may not address the actual 
challenges,  including  systemic  misuse  of  tenders 
and  levels  of  professional  expertise,  which  affect 
the quality of public tenders. (151) 

simplify 

to 

The  influence  of  businesses  on  Slovakia’s 
legislative  process  remains  untransparent, 
with  lobbying  being  unregulated.  Slovakia  has 
its  commitment  to 
reiterated  but  postponed 
adopting  lobbying  rules.  Amendments  tabled  in 
2024 would regulate  exclusively lobbying by  non-
governmental  organisations  and  not  corporate 
lobbying, and risk creating an unequal level playing 
field. 

(144) Act No 201/2024 Coll., amending Act No 575/2001 Coll. 

(145) Flash Eurobarometer 543 on businesses’ attitudes towards 

corruption in the EU (2024). 

(149) Ibid., p. 18. 

(146) Ibid. 

(147) See the 2024 country-specific chapter for Slovakia of the 

Rule of Law Report, pp. 14 et seq. 

(148) Ibid., pp. 10 et seq. 

(150) Flash Eurobarometer 543 on businesses’ attitudes towards 

corruption in the EU (2024). 

(151) See the 2024 country-specific chapter for Slovakia of the 

Rule of Law Report, pp. 27-28. 

59 

 
 
 
Justice 

justice  system  continues 

The 
to  face 
challenges  as  regards  its  efficiency  and 
judicial  independence.  The  estimated  time  for 
resolving  civil  and  commercial  cases  at  first 
instance increased (from 168 days in 2022 to 173 
days  in  2023).  As  regards  administrative  cases, 
the  estimated  time  at  first  instance  increased 
significantly from 648 days in 2022 to 1 040 days 
in 2023 and is one of the highest in the EU. Also, 
the  clearance  rate  for  resolving  administrative 
cases dropped from 93% in 2022 to 74% in 2023. 
The  judicial  map  was  reorganised  in  2023,  and  a 
dedicated  administrative  court  system  was 
established.  The  quality  of  the  justice  system  is 
good  overall.  The  level  of  digitalisation  of  the 
justice system is advanced but work on developing 
a new digital court management system has faced 
setbacks.  Some  digitalisation  efforts  are  being 
supported  by  the  recovery  and  resilience  plan. 
Concerns  regarding  judicial  independence  persist. 
Safeguards in the dismissal procedure of the non-
peer  elected  members  of  the  Judicial  Council  are 
missing, while the Government, the Parliament and 
the  President  dismissed  their  nominees  ahead  of 
the  end  of  their  term.  The  lack  of  safeguards 
exposes  judges  to  prosecution  for  the  content  of 
their decisions (152).  

(152) For more detailed analysis of the performance of the justice 
system  in  Slovakia,  see  the  upcoming  2025  EU  Justice 
Scoreboard and 2024 Rule of Law Report. 

60 

 
 
SUSTAINABILITY 
ANNEX 7: CLEAN INDUSTRY AND CLIMATE MITIGATION 

to 

Clean 

faces 

significant 

Slovakia 
challenges 
regarding  its  clean  industry  transition  and 
climate  mitigation. 
technology 
strengthen 
manufacturing  has  potential 
industrial  diversity  in  Slovakia.  Its  automotive 
sector 
is  currently  undergoing  a  profound 
transformation,  and  energy-intensive  industries 
have  been  challenged  by  high  energy  prices  and 
global  competition.  Slovak  manufacturing 
is 
heavily  reliant  on  importing  critical  raw materials. 
Mixed  municipal  waste  is  still  allowed  to  be 
landfilled without pre-treatment. Slovakia still has 
not  remediated  numerous  contaminated  waste 
sites,  and  its  industry  continues  releasing  large 
amounts of air and water pollutants. 

Strategic autonomy and technology 
for the green transition  

Net zero industry 

technologies 

Slovakia’s manufacturing capacity across net 
remains  modest.(153) 
zero 
Slovakia’s  manufacturing  capacity  amounts  to 
between  5  and  5.25  GWh/y  (2%  of  EU  capacity) 
for battery and storage technologies and between 
50 and 150 MW/y (0-1% of EU capacity) for solar 
PV  modules.  Additionally,  there  are  at  least  12 
facilities in Slovakia producing heat pumps. 

technologies,  which 

Slovakia  could  benefit  from  manufacturing 
is  a  newly 
clean 
emerging  and  promising  segment  of 
its 
domestic  industry,  helping  to  diversify  the 
industrial sectors of the economy. In Slovakia, 
an  EUR  1  billion  state  aid  scheme  under  the 
Temporary  Crisis  and  Transition  Framework  was 
approved  by 
in 
December 2023 to support investment projects in 
strategic  industrial  sectors  for  the  transition  to  a 
net-zero economy. These include the production of 
batteries, solar panels, wind turbines, heat pumps, 
electrolysers,  carbon  capture  equipment,  key 
components  for  these  technologies  and  the 

the  European  Commission 

(153) European Commission: Directorate-General for Energy, The 
net-zero manufacturing industry landscape across the 
Member States 2025, 
https://data.europa.eu/doi/10.2833/2181110   

in 

In  March  2024, 

production  or  recovery  of  related  critical  raw 
materials. 
the  government 
included  the  production  of  batteries,  solar  panels, 
wind  turbines,  heat  pumps,  electrolysers  and 
equipment for carbon capture and storage among 
its  strategic  sectors (154).  Businesses  from  those 
strategic  areas  will  thus  be  able  to  receive 
increased  state  incentives.  After  several  large 
investors  have 
recent  years  announced 
significant  investment  in  producing  heat  pumps, 
photovoltaic  panels (155)  could  also  be  developed 
and produced in Slovakia. Based on the action plan 
for 
Hydrogen 
Strategy (156),  the  government  also  supports  the 
infrastructure  and 
development  of  hydrogen 
technologies  in  Slovakia.  Investment in these  new 
industrial  segments  and  in  strategic  goods  could 
support the transition towards a net zero economy 
in 
and  further  strengthen 
Slovakia. 

industrial  diversity 

2023-2026 

National 

the 

Public  and  private  investment  in  energy 
research  and  innovation  is  very  low  in 
Slovakia, with an R&D intensity of just below 
1%  in  2022.  This  limits  the  country’s  ability  to 
develop  and  deploy  advanced  clean  technologies. 
The  lack  of  private  sector  investment  in  R&D 
combined  with  a  lack  of  cooperation  between 
industry and academia, and a shortage of startups 
and  innovative  ventures,  is  also  reported  to  be 
hindering Slovakia’s battery industry.  

Transforming the car industry  

regarding 
vehicles. 

challenges 
to 

Slovakia’s  automotive  industry  –  its  largest 
industry  -  is  facing  strong  competition  and 
the 
significant 
Car 
electric 
transition 
manufacturing  employs  more  than  260  000 
people  and  produces  up  to  12%  of  GDP.  It 
accounted  for 42% of exports and almost half of 
industrial  sales  (46.5%)  in  2023.  The  sector  is 
undergoing  a  profound  transformation,  driven  by 
digitalisation,  automation  and  the  shift  towards 

(154) Ministry of Industry: Detail materiálu | Portal OV, March 

2024.  

(155) Minister of Industry signed a Memorandum of understanding 

with the innovative japanese producer of photovoltaic 
panels, February 2024.  

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

2026 

61 

 
 
 
 
 
 
 
lower 

engines. 

from 
Nevertheless, 

electric  vehicles  and  away 
internal 
Slovak 
combustion 
carmakers remain cautiously optimistic about their 
near-term outlook. This resilience is largely due to 
the  country's  highly  modern  manufacturing 
labour  costs  that  provide  a 
facilities, 
competitive  edge  and  the  fact  that  all  Slovak 
automotive plants are currently working on electric 
car models whose production is relatively stable. In 
addition,  the  Slovak  automotive  industry  will  be 
strengthened  by 
investment 
announced  in  2024,  including in  a gigafactory  for 
batteries, which will facilitate the country’s shift to 
electric  models  and  boost  the  entire  automotive 
sector  in  Slovakia.  Based  on  calculations (157),  the 
sector received 96% of the investment aid in 2024 
in  2023.  However,  supporting  the 
and  84% 
diversification of the Slovak economy could end its 
dependence  on  one  dominant  industry  and  thus 
reduce its vulnerability to supply-chain disruptions 
and global uncertainty. 

the  significant 

in  Slovakia 

To  address  barriers  and  challenges  facing 
the  automotive 
industry,  further  efforts 
could be made, including creating a space for 
discussion and cooperation with the industry. 
According  to  industry  representatives,  there  is  a 
lack  of  cooperation  between  government  and 
industry,  resulting  in  the  adoption  of  crucial 
legislative proposals affecting the industry without 
adequate  consultation  with  the  key  industrial 
stakeholders.  The  competitive  advantage  of 
production 
is  being  reduced  by 
consolidation  measures  that  will  increase  costs 
and  taxes  for  companies  (see  Annex  4:  Making 
Business  Easier).  Further  impediments  for  the 
industry  to  grow  and  remain  competitive  in  the 
long  term  include  the  lack  of  waste  processing 
capacities in Slovakia, the obstacles to meeting the 
EU’s “green goals”, the shortage of skilled workers 
but  also  the  insufficient  attractiveness  of  STEM 
studies  (see  Annex  12)  and  an  extensive  brain 
drain.  In  addition,  Slovakia  needs  to  step  up  its 
support  for  zero-emission  vehicles  on  its  own 
roads.  In  2023,  battery  electric  vehicles  made  up 
just  2.9  percent  of  new  car  registrations,  placing 
Slovakia in last place among EU countries.  

Despite  the  adoption  of  the  Action  plan  for  the 
development of e-vehicles in Slovakia in 2023 and 
its revision later in 2024, the country  experienced 

the  third  sharpest  decline  in  the  battery-electric 
vehicles  market  share  from  July  to  October 
2024(158).  Many  of 
the  proposed  measures 
including  subsidies  for  the  purchase  of  electric 
cars, exemption of electric cars from highway fees 
and  tolls  or  support  for  charging  infrastructure 
have 
remained 
unimplemented.  

delayed 

either 

been 

or 

Decreasing inefficiencies in rail transport 

to  be 

implement 

investments, 

investments 

Despite important steps taken under the RRP, 
significant efforts are still needed to prepare 
and 
in 
further 
railway  transport.  In  particular,  a  more  long-
term  funding  approach  and  strategy  for  financing 
would  be  important  to  optimise  governance  and 
strategic 
focused  on 
electrification,  digitalisation,  reconstruction,  and 
optimisation  of  the  rail  network  and  its  better 
interconnection and interoperability with the trans-
European  network  for  transport.  A  centralised 
national  fund,  in  addition  to  improvement  of  the 
infrastructure  project 
lifecycle,  which  exist  in 
neighbouring  Member  States,  is  currently  missing 
in Slovakia. This would allow for a more effective 
medium 
transport 
infrastructure  works,  and  better  use  of  national 
and  European  streams  of  funding  that  finance 
most  of  these  projects  in  Slovakia.  This  could  be 
accompanied  by  a  reform  of  national  railway 
infrastructure  management,  to  accelerate  and 
streamline 
rail 
physical and digital infrastructure. 

long-term  planning  of 

in  modernising 

investments 

to 

Critical raw materials  

Slovak  manufacturing  depends  heavily  on 
imports of critical raw materials (CRMs) that 
are  needed  for  the  green  and  digital 
transitions. While Slovakia produces several such 
materials(159),  such  as  silicon  metal,  coking  coal, 
and aluminium, it is still heavily reliant on imports 
of CRMs for the transitions. In 2023, the main CRM 
imported  by  Slovakia  from  non-EU  countries,  in 

(158) DG GROW "CET Quarterly Bulletin" on industrial performance, 

based on ACEA (European Automobile Manufacturers’ 
Association), December 2024. 

(157) Institute for Strategies and Analyses (ISA): Ekonomický 

(159) EC, Raw material Information System, country profile 

prehľad 41, October 2024. 

Slovakia. 

62 

 
 
 
terms  of  trade  values,  was  coking  coal  from  the 
USA,  Australia,  and  Canada.  Slovakia’s  Import 
concentration  Index(160)  was  the  highest  among 
the EU countries in 2023, which creates significant 
challenges  regarding  sustainability  and  resilience, 
risks,  environmental 
such  as  supply  chain 
degradation  and  social  concerns.  With  43.3%  of 
material  inputs  coming  from imports in  2023  (EU 
average:  22%),  Slovakia  is  particularly  vulnerable 
to  supply  chain  disruptions.  Moreover,  the  circular 
use  of  material,  which 
is  key  to  reducing 
dependence  on  raw  materials  imports,  remains 
well  below  the  EU  average,  even  though  it  has 
increased since 2018. Improvements are therefore 
needed 
towards  more  sustainable  material 
management practices in Slovakia.  

strategic 

dependencies 

Slovakia  could  play  an  important  role  in 
addressing 
by 
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.  However, 
industry  faces  significant 
the  Slovak  mining 
challenges  due  to  high  energy  prices,  the  Russian 
invasion of Ukraine and efforts to achieve climate 
neutrality.  In  October  2024,  production  in  the 
mining industry dropped by a fifth (y-o-y)(161). As a 
result, the industry warns that it may be forced to 
shut  down  factories  or  relocate  production  to 
countries  outside  the  EU.  Slovakia’s  2021-2025 
waste  management 
identified 
CRM-relevant  areas  requiring  further  investment 
and  development. 
include  electrical 
These 
equipment,  batteries  and  accumulators  and 
vehicles,  for  which  the  principles  of  extended 
producer  responsibility  apply.  Investment  in  new 
processing  capacity  is  needed  for  end-of-life 
vehicles,  while  for  construction  and  demolition 
waste,  batteries  and  waste  from  electrical  and 
electronic  equipment,  the  focus  should  be  on 
improving 
modernising  existing  facilities  and 
is 
recycling  rates.  Slovakia  has 
considering  measures  to  increase  the  use  of 
secondary  CRMs,  such  as  mandatory  green  public 
procurement,  increasing  the  content  of  recycled 
materials in products and setting standards for the 

initiated  or 

programme 

(160) The import concentration measures how much a country 

relies on a limited number of sources for a basket of critical 
raw materials. Source: COMEXT. 

(161) Statistical Office of the Slovak Republic: Priemyselná 

produkcia, October 2024. 

63 

quality of recycled materials from waste. Some of 
the  CRMs  or  CRM-rich  products  are  addressed  in 
Slovakia’s Act No. 79/2015 on waste.  

Slovakia scores well in recycling e-waste and 
end-of-life  vehicles.  It  is  a  frontrunner  as 
regards  the  recycling  rate  for  e-waste,  a  key 
source  of  critical  raw  materials,  with  92.5%  in 
2021 (the EU average was 81.6%). The reuse and 
recycling rate for end-of-life vehicles in Slovakia is 
above the EU average (95.9% vs. 89.1% in 2022).  

Climate mitigation  

Industry decarbonisation 

Manufacturing  is  a  significant  source  of 
greenhouse  gas  emissions  in  Slovakia;  the 
country ranks fourth in emissions intensity in 
the  EU.  At  35%,  the  share  of  manufacturing  in 
Slovakia’s  total  greenhouse  gas  emissions  is  the 
highest  in  the  EU (162).  Slovakian  manufacturing 
emits  740  g  of  CO2eq  of  greenhouse  gases  per 
euro  of  gross  value  added,  2.7  times  the  EU 
overall  (270 g/€)  and  the  third  highest  in  the  EU. 
the  greenhouse  gas  emissions 
Since  2017, 
intensity of manufacturing in Slovakia improved by 
20%,  similar 
the  EU  average.  56%  of 
manufacturing  emissions  in  Slovakia  relate  to 
energy  use,  with  44%  associated  with  industry 
processes and product use. In the EU overall, these 
shares are the inverse.  

to 

intensity  of 
The  greenhouse  emissions 
manufacturing  in  Slovakia  improved  (albeit 
less than in the EU overall). One driver appears 
to  have  been  rising  energy  efficiency.  Between 
2017  and  2022,  the  energy-  and  process  and 
product  use-related  emissions 
in 
Slovakian  manufacturing  declined  by  18%  and 

intensities 

(162) In  2023.  Manufacturing  includes  all  divisions  of  the  “C” 
section  of  the  NACE  Rev.  2  statistical  classification  of 
economic  activities.  In  the  remainder  of  this  section,  unless 
indicated  otherwise,  data  on  manufacturing  refer  to  the 
divisions  of  the  NACE  section  C  excluding  division  C19 
(manufacture  of  coke  and  refined  petroleum  products),  and 
the  year  2022.  The  source  of  all  data  in  this  section  is 
Eurostat;  data  following  the  UNFCCC  Common  Reporting 
Framework (CRF) are from the European Environment Agency 
(EEA), republished by Eurostat. 

 
 
 
19%  respectively  (163).  For  energy  use,  this  was 
slightly  above  the  EU  average  (16%);  for industry 
process  and  product  use-related  emissions,  EU-
wide reductions were higher, at 23%. In the same 
period,  the  share  of  electricity  and  renewables  in 
manufacturing’s  final  energy  consumption  fell  by 
3  percentage points, to  38%  –  the  fifth  lowest  in 
the  EU.  In  the  same  time  period,  the  energy 
intensity of manufacturing has improved by  10%, 
of 
energy 
with 
manufacturing  falling  from  2.5  GWh  per  euro  of 
GVA to 2.3 GWh/€. In the EU overall, improvements 
in  energy  efficiency  in  those  years  amounted  to 
15%, resulting in 1.1 GWh/€ in 2022.  

consumption 

final 

the 

Graph A7.1: GHG emission intensity of manu-
facturing and energy-intensive sectors, 2022 

Source: Eurostat. 

The  greenhouse  gas  emissions  intensity  of 
Slovakia’s  basic  metals  sector  is  the  fourth 
highest in the EU,  emitting 6.5 kg of CO2eq per 
€ of GVA: Slovakia’s chemical industry is the sixth 
most  emissions  intensive  among  EU  Member 
States,  with  2.7 kg  CO2eq/€.  Energy-intensive 
industries  (164)  account  for  13%  of  Slovakia’s 

(163) For the GHG emissions intensity of GVA related to energy use 
and  industrial  processes  and  product  use  respectively,  GHG 
emissions  are  from  inventory  data  in  line  with  the  UNFCCC 
Common  Reporting  Format  (CRF),  notably  referring  to  the 
source sectors CRF1.A.2 –  fuel combustion in manufacturing 
industries  and  construction  and  CRF2  –  industrial  processes 
and  product  use.  The  CRF1.A.2  data  broadly  correspond  to 
the NACE C and E sectors, excluding C-19. GVA data (in the 
denominator  for  both  intensities)  are  aligned  with  this 
sectoral  coverage.  Therefore,  they  are  not  fully  consistent 
with the data referred to in other part of this section. 

(164) Notably,  the  manufacture  of  paper  and  paper  products 
(NACE  division  C17),  of  chemicals  and  chemical  products 
(C20),  “other”  non-metallic  mineral  products  (C23;  this 
division includes manufacturing activities related to a single 
substance of mineral origin, such as glass, ceramic products, 
tiles,  and  cement  and  plaster),  and  basic  metals  (C24).  To 
date,  these  industries  are  energy-intensive  –  i.e.  consuming 
much  energy  both  on  site  and/or  in  the  form  of  purchased 

manufacturing  gross  value  added  (2022).  As  an 
important  component  of  production  costs  in  the 
above  industries  and  others,  in  recent  years 
Slovakia’s  electricity  prices  for  large  consumers 
increased to become the  fourth  highest in  the  EU 
by  2023;  gas  prices  too  have  risen  to  among  the 
highest  in  the  EU (165).  In  September  2024,  the 
steel  mill  U.S.  Steel  Košice  announced  it  had 
prepared  a  decarbonisation  plan,  resulting  in  a 
in  emissions  with  unchanged 
70%  reduction 
production  volume,  but  it  may  only  be  launched 
once the ongoing ownership changes are clarified. 

Reduction  of  emissions  in  the  effort  sharing 
sectors 

To  attain  its  2030  effort  sharing  target, 
Slovakia  needs  to  swiftly  implement  the 
planned  climate  mitigation  measures (166).  In 
2023,  GHG  emissions  from  Slovakia’s  effort 
sharing sectors are expected  to have been 14.3% 
below those of 2005. By 2030, current policies are 
projected  to  reduce  them  by  19.9%  relative  to 
2005  levels;  additional  policies  considered  by 
Slovakia  are  projected  to  add  reductions  of 
11.6 percentage  points.  Consequently,  Slovakia  is 
projected  to  overachieve  its  effort  sharing  target 
of 22.7% reductions by 8.8 percentage points  (167). 

electricity  –  and  greenhouse  gas  emissions  intensive,  in 
various combinations. 

(165) For a detailed analysis of energy prices, see Annex 8 on the 

affordable energy transition. 

in  Regulation 

(166) The national greenhouse gas emission reduction target is set 
out 
(the  Effort  Sharing 
(EU)  2023/857 
Regulation).  It  applies  jointly  to  buildings  (heating  and 
cooling); road transport, agriculture; waste; and small industry 
(known as the effort sharing sectors). 

(167) The effort sharing emissions for 2023 are based on 
approximated inventory data. The final data will be 
established in 2027 after a comprehensive review. 
Projections on the impact of current policies (“with existing 
measures”, WEM) and additional policies (“with additional 
measures”, WAM), as per Slovakia’s final updated NECP. 

64 

01234567C-C19C17C20C23C24KG CO2eq / €SlovakiaEU-27 
   
 
 
 
Graph A7.2: Greenhouse gas emissions in the 
effort sharing sectors, 2005 and 2023 

Source: European Environment Agency 

Sustainable industry 

Circular economy transition 

Despite  positive  trends,  there  is  room  for 
improving Slovakia’s circularity transition. At 
10.6% in 2023, Slovakia’s circular material  use is 
below  the  EU  average  and  far  behind  EU  leaders. 
Slovakia’s  resource  productivity,  at  EUR  1.52  per 
kg  of  material  consumed  in  2023,  remained  well 
below the EU average. Even if Slovakia’s resource 
productivity has been slightly improving in the past 
decade,  the  gap  towards  the  EU  average  has  not 
decreased.  Slovakia  needs  to  boost  its  efforts  to 
minimise  negative  environmental  impacts  and 
reduce  dependence  on  volatile  raw  materials 
markets.  Slovakia’s  circular  economy  policy 
framework  is  set  in  its  first  dedicated  roadmap 
(168). The roadmap  was developed in 2022 thanks 
to  cooperation  with  the  OECD  and  the  European 
Commission’s  Technical  Support  Instrument.  It 
concrete  policy 
introduces  more 
than  30 
recommendations, 
an 
by 
implementation plan and a monitoring framework, 
all  to  be  introduced  by  2040.  Priority  areas  are 
food  and  biowaste, 
the  construction  sector, 
sustainable  production  and  consumption  and 
economic  instruments  as  cross-cutting  measures. 

supported 

Slovakia’s  recovery  and  resilience  plan  includes 
one  circular  economy-related  reform  on  the 
management  of  construction  and  demolition 
waste.  Circular  economy 
targets  have  been 
introduced  as  part  of  the  country’s  wider  2019 
environmental policy strategy (169), but they relate 
more to waste. 

Slovakia needs to do more to ensure that all 
landfilled  waste  has  been  (pre-)treated  and 
increase 
its  efforts  to  meet  all  waste 
targets. With 472 kg of municipal waste in 2023, 
Slovakia produces slightly less municipal waste per 
capita than the EU average (see Graph A7.3). With 
a  recycling  rate  of  49.5%  in  2022,  Slovakia  is 
slightly above the EU average for municipal waste 
recycling.  However,  it  is  at  risk  of  missing  the 
municipal waste and packaging waste targets, and 
of not meeting the 2035 target of maximum 10% 
of  municipal  waste  being  landfilled.  Also,  mixed 
municipal  waste  is  still  allowed  to  be  landfilled 
without  pre-treatment  and  Slovakia  repeatedly 
postponed  the  introduction  of  a  pre-treatment 
obligation.  At  60%  in  2022,  Slovakia’s  recycling 
rate for plastic packaging waste was above the EU 
average, though this figure is not yet based on the 
new calculation rules. The preparing for reuse and 
recycling 
rate  of  mineral  construction  and 
demolition  waste in  Slovakia in  2022  was  93.2%, 
compared  with  the  EU  average  of  79.8 %. 
Slovakia’s  material  footprint  in  2023  was  13.8 
tonnes per capita, below the EU average. 

in 

the 

investment 

Current 
circularity 
transition  has  been  insufficient.  Slovakia  is 
estimated  to  need  total  additional  investment 
worth  at  least  EUR  189  million  per  year  for  the 
circular  economy 
including  waste 
transition, 
management.  Of  the  circular  economy  gap,  EUR 
43 million relates to recent initiatives, such as eco-
design  for  sustainable  products,  packaging  and 
packaging waste, labelling and digital tools, critical 
raw  materials  recycling  and  measures  proposed 
under  the  amendment  of  the  Waste  Framework 
Directive.  The  EUR  121  million  constitutes  further 
investment  need  to  unlock  Slovakia’s  circular 
economy potential (170).   

(168) Closing the Loop in the Slovak Republic - A Roadmap 

Towards Circularity for Competitiveness, Eco-innovation 
and Sustainability, 2022 
https://www.oecd.org/environment/waste/highlights-
closing-the-loop-in-the-slovak-republic-roadmap_EN.pdf. 

(169) Ministry of the Environment, Greener Slovakia, 2019, Link. 

(170) European Commission, DG Environment, Environmental 

investment needs & gaps assessment programme, 2025 
update. Expressed in 2022 prices. 

65 

051015202520052023MtCO2eDomestic transport (excl. aviation)Buildings (under ESR)AgricultureSmall industryWaste 
      
 
 
Graph A7.3: Municipal waste treatment 

Source: Eurostat 

Zero pollution industry 

growth. 

from  GDP 

significant 
Slovakia  has  been  making 
progress  with  reducing  air  pollution  but  air 
quality continues to give cause for concern in 
some parts of its territory. This pollution is now 
In  2023, 
decoupled 
exceedances  above  the  limit  values  set  by  the 
Ambient  Air  Quality  Directive  were  registered  for 
PM10 in one air quality zone in Slovakia. The target 
values  for  ozone  concentrations  have  not  been 
met in two air quality zones, and the target value 
for  benzo(a)pyrene  (BaP)  concentration  in  six  air 
quality  zones (171).  However, 
the  2020-2029 
emissions 
air 
pollutants  NOx,  NMVOC,  SO2,  NH3  and  PM2.5  under 
the National Air Pollution Control Programme have 
been met, and the commitments (for the same air 
pollutants) for the 2030s are projected to be met 
as well. 

commitments 

reduction 

for 

releases 

industry  still 

large 
Slovakia’s 
amounts  of  air  and  water  pollutants.  As 
regards  industrial  air  pollutants,  Slovakia  comes 
7th  for  the  emissions  intensity  in  the  EU  (above 
the  EU  average  of  27.5  EUR  /  thousand  EUR  of 

(171) EEA, EIONET central data repository, Link. 

industry 

gross  value  added  (GVA))  and  it  has  the  13th 
to 
highest  damage.  The  main  contributors 
emissions  to  air  are  the  energy  sector  as  well  as 
the  metals  and  mineral 
for  NOx 
emissions,  the  waste  management  and  chemical 
industry for dust emissions, the energy sector, and 
the metals sector and mineral sector for SO2 and 
heavy  metals.  As  regards  industrial  emissions  of 
heavy metals to water, Slovakia is in 4th position 
in  the  EU  for  emissions  intensity  (below  the  EU 
average  intensity  of  0.864  kg  /  billion  EUR  GVA) 
and  has  the  13th  highest  amount  of  emissions. 
The  main  contributors  to  emissions  to  water  in 
Slovakia are the chemical sector for heavy metals, 
nitrogen  and  total  organic  carbon,  the  pulp  and 
paper  industry  for  phosphorus  and  the  metal 
production  and  processing  sector  for  polycyclic 
aromatic hydrocarbons (PAHs).  

to 

The costs of pollution remain far higher than 
the  investment  in  pollution  prevention  and 
control.  Based  on  2022  data,  3 700  deaths  in 
Slovakia  are  attributed  each  year 
fine 
particulate  matter  (PM2.5);  260  deaths  to  nitrogen 
dioxide  (NO2),  and  700  deaths  to  ozone  (O3) (172). 
The  costs  related to  all  industrial  air  pollutants  in 
Slovakia  are  estimated  to  be  EUR 9.3 billion (173). 
In  contrast,  to  meet  its  objectives  for  pollution 
prevention and control and address the health and 
economic  costs  of  pollution,  Slovakia  needs  an 
additional  EUR 289  million  per  year  (0.26%  of 
GDP), mostly related to air pollution control (174). 

(172) In terms of years of life lost, this implies 41 400 years for 

PM2.5, 2 900 for NO2, and 7 800 for O3. 

(173) Value of 2017, source: EEA, 2024, The costs to health and 
the environment from industrial air pollution in Europe – 
2024 update, Link. 

(174) European Commission, DG Environment, Environmental 

investment needs & gaps assessment programme, 2025 
update. Expressed in 2022 prices. 

66 

421478497478472010020030040050060020192020202120222023Kg per capitaMaterial recyclingComposting and digestionLandfill/disposalTotal incineration (incl. energy recovery)Waste treatment unspecifiedEU-27 total waste per capita 
      
 
 
Table A7.1:  Key clean industry and climate mitigation indicators: Slovakia 

Source: Net zero industry: European Commission: The net-zero manufacturing industry landscape across Member States: final 
report, 2025. Automotive industry transformation: Eurostat. Critical raw materials: Eurostat. Climate mitigation: See 
footnotes in the "climate mitigation" section; reduction of effort sharing emissions: EEA greenhouse gases data viewer; European 
Commission, Climate Action Progress Report, 2024. Sustainable industry: Years of life lost due to PM2.5: Eurostat and EEA, 
Harm to human health from air pollution in Europe: burden of disease status, 2024. Air pollution damage: EEA, EU large industry 
air pollution damage costs intensity, 2024. Emissions covered: As, benzene, Cd, Cr, Hg, NH3, Ni, NMVOC, NOX, Pb, dioxins, PM10, 
PAH, SOX. Water pollution intensity: EEA, EU large industry water pollution intensity, 2024. Releases into water covered from 
cadmium, lead, mercury, nickel. Other indicators: Eurostat. 

67 

Strategic autonomy and technology for the green transitionNet zero industryOperational manufacturing capacity 2023- Solar PV (c: cell, w: wafer, m: module), MW50-150 (m)- Electrolyzer, MW-- Wind (b: blade, t: turbine, n: nacelle), MW-- battery, MWh5000-5250Automotive industry transformation201720182019202020212022202320182021Motorisation rate (passenger cars per 1000 inhabitants), %408426439447459471487539561New zero-emission vehicles, electricity motor, %0.220.310.161.191.501.922.901.038.96Critical raw materials201720182019202020212022202320182021Material import dependency, %43.044.042.745.245.843.324.222.6Climate mitigationTrendIndustry decarbonisation201720182019202020212022202320172022GHG emissions intensity of manufacturing production, kg/€0.940.860.70.750.860.740.620.340.27Share of energy-related emissions in industrial GHG emissions57.056.354.756.956.856.756.044.842.5Energy-related GHG emissions intensity of manufacturing307.9303.6250.2256.3291.0252.0-158.4132.9and construction, kg/€Share of electricity and renewables in final energy consumption41.141.342.739.039.837.937.743.344.2in manufacturing, %Energy intensity of manufacturing, GWh/€2.522.352.112.192.272.261.701.291.09Share of energy-intensive industries in manufacturing production12.97.3GHG emissions intensity of production in sector [...], kg/€- paper and paper products (NACE C-17)0.300.440.370.390.510.460.41-0.730.68- chemicals and chemical products (NACE C20)3.523.832.582.633.142.682.51-1.251.26- other non-metallic mineral products (NACE C23)2.772.792.102.362.592.611.89-2.532.24- basic metals (NACE C24)7.015.926.987.467.066.455.59-2.793.49Reduction of effort sharing emissions20182019202020212022202320182023GHG emission reductions relative to base year, % -12.2-15.1-14.3- domestic road transport1.85.9-7.9-1.91.52.51.45.2- buildings-27.3-28.9-30.6-21.0-28.2-32.221.432.92005202120222023TargetWEMWAMEffort sharing: GHG emissions, Mt; target, gap, %23.120.319.619.8-22.7-2.88.8Sustainable industryTrendCircular economy transition20182019202020212022202320182021Material footprint, tonnes per person15.114.313.213.214.213.814.715.0Circular material use rate, %4.7        8.3        10.3      10.4      11.5      10.6      11.611.1Resource productivity, €/kg1.2        1.4        1.4        1.5        1.8        2.0        2.12.3Zero pollution industryYears of life lost due to PM2.5, per 100,000 inhabitants1,066    781      815      1,025    1,120    -702571Air pollution damage cost intensity, per thousand € of GVA    45.4          27.5      Water pollution intensity, kg weighted by human factors per bn € GVA    1.7   0.9SlovakiaEU-27SlovakiaEU-27SlovakiaEU-27 
 
 
 
 
 
 
       
 
ANNEX 8: AFFORDABLE ENERGY TRANSITION 

This  annex  outlines  the  progress  made  and 
the  ongoing  challenges  faced  in  enhancing 
energy  competitiveness  and  affordability, 
while advancing the transition to net zero. It 
examines  the  measures  and  targets  proposed  in 
the  final  (draft)  updates  to  the  national  energy 
and climate plans (NECPs) for 2030. 

Slovakia  is  facing  very  high  energy  prices, 
also  consequently  to  the  stop  of  the  gas 
transit via Ukraine. Despite the efforts made to 
accelerate  the  decarbonisation  of 
its  energy 
system,  there  is  still  space  for  improvement. 
Nuclear energy still represents the main source of 
electricity production in the national energy mix. 

Energy prices and costs 

Graph A8.1: Retail energy price components for 
household and non-household consumers, 2024 

(i) For household consumers, consumption band is DC for 
electricity and D2 for gas. Taxes and levies are shown 
including VAT. 
(ii) For non-household consumers, consumption band is ID for 
electricity and I4 for gas. Taxes and levies are shown 
excluding VAT and recoverable charges, as these are typically 
recovered by businesses. 
Source: Eurostat 

Slovakia’s  retail  electricity  prices  dropped 
significantly in 2024 for both non-household 
and  household  consumers,  but  the  former 
category  climbed  around  8%  above  EU 
remained 
average  while 
the 
considerably  below  EU  average 
(almost 
39%).  Similarly  for  retail  gas  prices,  households’ 
prices  remained  at  a  level  almost  half  of  the  EU 
average when prices for non-household consumers 
were  the  4th  highest  in  the  EU.  Retail  prices 
components  (energy  and  supply,  network  costs, 

latter 

taxes and levies) shares in Slovakia broadly follow 
EU-wide trends with the exception of the share of 
network  costs  in  finarul  retail  gas  prices  for 
household  and  non-household  consumers  which 
are  considerably  higher  than  the  EU  average 
(32.4%  and  12.3%  for  an  EU  average  of  18.3% 
and 7.1% respectively) and the electricity network 
costs for households which are significantly lower 
than the EU average.  

Slovakia  had 
the  EU’s  ninth  highest 
wholesale  electricity  prices,  averaging  93 
EUR/MWh in 2024(175). Prices initially fell with 
natural  gas  costs,  but  surged  during  the 
spring/summer  and  winter,  diverging  from 
Central Eastern European (CEE) markets. This 
decorrelation was driven by factors affecting both 
consumption  and  generation.  On  the  consumption 
side,  prolonged  and  warmer  summer  heatwaves 
and  a  colder  winter  in  the  region  led  to  higher 
consumption(176). Generation  challenge in Slovakia 
included  lower  hydropower  (-55%  in  Nov/Dec 
2024 vs same period in 2023)(177) due to weather 
conditions,  reduced  nuclear  output 
in 
summer  and  -4%  in  winter)  due  to  malfunctions, 
and decreased coal production (-57% in 2024) due 
to  rising  CO2  costs,  further  straining  the  supply-
demand balance. This gap was mainly covered by 
costly  natural  gas-fired  generation  (+18%  in 
2024)  ramping up especially  during peak demand 
hours.  Consequently,  and  more  so  than  in  2023, 
these conditions drove concentrated price spikes in 
the  evening  hours  (18h-21h),  when  solar  output 
declined  and  demand  increased,  especially  during 
the summer. On the other hand, average daytime 
hourly prices were lower compared to 2023, likely 
owing  to  the  uptake  of  solar  output  in  Slovakia 
(+11% in 2024) and in neighbouring markets(178). 

(-16% 

(175) Fraunhofer (ENTSO-E data). 
(176)2024 load was at 25.6 TWh, increasing by 1% compared to 
2023. 
(177) ENTSO-E. 
(178)Yearly electricity data, Ember (generation and consumption 
data throughout the paragraph). 

68 

 
 
 
 
 
 
Graph A8.2: Monthly average day-ahead wholesale 
electricity prices and European benchmark 
natural gas prices (Dutch TTF) 

(i) the Title Transfer Facility (TTF) is a virtual trading point for 
natural gas in the Netherlands. It serves as the primary 
benchmark for European natural gas prices. 
(ii) CEE and CWE respectively provide average prices in the 
central-western European (Belgium, France, Germany, 
Luxembourg, the Netherlands and Austria) and central-
eastern European (Poland, Czechia, Slovakia, Hungary, 
Slovenia and Romania) markets. 
Source: S&P Platts and ENTSO-E 

Flexibility and electricity grids 

Slovakia  is  part  of  the  Core(179)  capacity 
calculation region (CCR). Member States should 
ensure that a minimum of 70% of technical cross-
border  capacity  is  available  for  trading.  Member 
States  have  a  derogation  in  place  to  address 
specific  network  elements,  introducing  interim 
targets to be met only on specific critical network 
element  and  contingency  (CNECs)  while  the  70% 
rule applies to the remaining network elements. A 
derogation  enables  a  lower  level  of  trades  to  be 
made  for  a  time-limited  period  for  operational 
security  reasons.  The  ACER  Market  Monitoring 
Report  shows  that  the  network  elements  limiting 
cross-border  trade  mostly  pertain  to  the  internal 
network. 

has 

and 

is  well 

countries 

Slovakia 
interconnected  with 
an 
neighbouring 
interconnectivity level of over 40%. However, 
further  reinforcements  of  the  grid  are  needed  to 
integration  of  renewables.  Additional 
support 
reinforcements  on  the  Czech  border  are  to  be 
addressed  by  a  new 
interconnector  under 
consideration,  which  has  received  PCI  (project  of 
common  interest)  status.  Further  reinforcements 
on  the  border  with  Hungary  are  also  being 
considered.  Modernisation  of  the  distribution  grid 
is  supported  by  two  ongoing  PCI  smart-grid 
projects: ACON with Czechia and the Danube InGrid 
with  Hungary.  In  addition,  the  upgrade  of  the 
pumped-hydro  storage  at  Cierny  Vah  (which  also 
has  PCI  status)  is  expected  to  improve  the 
flexibility of the power system within the region. 

of 

streamlining 

Energy  infrastructure  permitting  in  Slovakia 
does  not  form  part  of  a  dedicated  legal 
framework.  While  the  existing  framework  does 
not  pose  any  major  concerns,  there  is  scope  for 
further 
environmental 
assessments  and  a  need  to  boost  the  resources 
and  improve  the  expertise  of  the  competent 
authorities.  In  addition,  the  priority  status  of 
projects  of  common  interest/projects  of  mutual 
interest  is  not  fully  reflected  in  the  permitting 
process,  as  these  projects  are  not  automatically 
given  the  status  of  highest  national  significance. 
Additionally, 
one-stop-shop, 
intended  to  streamline  the  process,  has  limited 
powers  and  a 
further 
complicating the situation. 

coordinative 

designated 

role, 

the 

The Slovak recovery and resilience plan aims 
to  support  faster  roll-out  of  investment  in 
renewables.  For  this  purpose,  it  has  included 
reforms  that  have  modernised  the  country’s 
electricity  market  and  created  an  appropriate 
legislative  environment,  by  improving  access  for 
new  market  participants,  increasing  certainty  and 
confidence 
in  state  support  measures  and 
improving integration of renewables in the Slovak 
electricity  grid. 
industry 
estimated  the  grid  connection  of  solar  plants  to 
take between three and six months for utility-scale 
projects  and  one  month  for  small  photovoltaic 
projects, both below the EU average. 

In  2023,  the  solar 

(179)Core  is  the  CCR  which  covers  central  European  countries 
namely  Austria,  Belgium,  Czechia,  Germany,  France,  Croatia, 
Hungary,  the  Netherlands,  Poland,  Romania,  Slovenia,  Slovakia 
and, once connected, Ireland. A CCR is a group of countries which 
calculate cross-border electricity trade flows together. 

Despite the challenges that remain, Slovakia 
has  taken  steps  to  support  non-fossil 
flexibility.  The  country  does  not  report  on  the 

69 

 
 
 
 
 
legal 

framework 

in  wholesale  markets.  Slovakia 

installed  non-fossil  flexibility  capacity  in  the  draft 
NECP.  It  has  committed  to  further  promoting  the 
development  of  energy  storage  and  energy 
conversion technologies (Power-to-X). Slovakia has 
adopted  a 
that  allows 
aggregation, including independent aggregation, to 
participate 
is 
working to put in place an energy data centre as a 
central  data  hub  for  the  registration  of  market 
participants  and  the  settlement  of  services(180). 
The  country  expects  this  to  make  possible  the 
provision  of  services  such  as  aggregation,  energy 
sharing  and  energy  communities.  However, 
Slovakia’s  regulatory  framework  still  presents 
barriers  to  the  development  of  flexible  resources. 
The  slow  deployment  of  smart  meters 
in 
combination  with  regulated  retail  prices  results  in 
a low number of dynamic retail contracts. 

Consumer  engagement  in  the  energy  market 
limited.  Slovakia  applies  regulated 
remains 
prices for vulnerable customers. All households are 
defined  as  vulnerable,  which  means that  the  vast 
majority of households are on regulated contracts. 
Moreover,  the  roll-out  of  smart  meters  for 
households is low. Slovakia has decided to proceed 
with  a 
targeting 
roll-out 
prosumers  and  consumers  connected  to  the 
distribution system at a low voltage level  with an 
annual consumption of at least 4 MWh. 

selective 

(15%) 

innovative 

technologies 

Given  the  low-carbon  electricity  mix,  the 
challenge  is  the  gradual  electrification  of 
transport, 
in  particular  public  passenger 
transport.  For  industry  to  be  decarbonised,  all 
all 
available 
decarbonised fuels and energy carriers need to be 
used.  Households  will  also  face  the  cost  of 
electrification  in  the  transport  sector,  but  this  will 
not  lead  directly  to  a  reduction  in  consumption. 
However,  household  consumption  will  be  affected 
by  higher  prices  for  products  and  services  being 
passed  on  by  businesses  in  order  to  recover  the 
in 
investments, 
costs  of  energy  efficiency 
particular investments in electricity generation. 

and 

In  2023,  electricity  accounted  for  19.9%  of 
Slovakia’s  final  energy  consumption,  below 
the EU average of 22.9%, and this share has 

(180)Settlement of services refers to the process optimization and 
management of the operation of flexible consumer and producer 
equipment in real time and transactions regarding aggregation. 

70 

that 

ratio 

price 

slightly  decreased  in  the  last  decade(181), 
partly due to an unfavourable electricity-to-
disincentivizes 
gas 
electrification 
cost-effective 
and 
decarbonization.  When  it  comes  to  households, 
electricity  accounts  for  20.7%  of  final  energy 
consumption, while in industry it represents 26.5% 
(see  also  Annex  7).  For  the  transport  sector,  this 
share remains negligible at 2.1%. Further progress 
in electrification across sectors is required for cost 
effectively  decarbonising 
the  economy  and 
bringing  the  benefits  of  affordable  renewable 
In  2024’s  second 
generation 
semester, Slovakia had amongst the largest fiscal 
disparities  between  electricity  and  gas  in  the  EU. 
Before taxes and levies, the electricity-to-gas price 
ratio  was  2,4  for  households  and  2.8  for  energy-
to  2,9  and  3.1, 
rising 
intensive 
industries, 
respectively,  after 
For 
levies. 
taxes  and 
households, 
levies  accounted  for 
~30,9%  of  the  final  electricity  price,  higher  than 
the  EU  average  of  25%,  while  gas  stood  at 
~16,7%.  For  energy-intensive 
industries,  non-
recoverable taxes and levies represented ~13% of 
the  electricity  price,  while  gas  was  nearly  tax-
exempt (~2%)(182). 

to  consumers. 

taxes  and 

Renewables and long-term contracts 

In  2024,  24%  of  Slovakia’s  electricity  mix 
was  supplied  by  renewable  energy  sources 
(RES),  far  behind  the  EU’s  overall  RES  share  of 
47%(183).  Installed  RES  capacity  grew  by 
11.34%  in  2024.  The  total  renewable  energy 
capacity in  Slovakia  in  2024  stood  at  2  691  MW. 
As  regards  the  acceleration  of  solar  deployment, 
the total installed capacity  in 2024 was 867 MW, 
almost  an  46.2%  increase  from  2023.  Wind 

(181)CAGR (compound annual growth rate) of -0.7% between 
2013 and 2023 and minimum/maximum share of 19.8% and 
22.8%, respectively. 
(182)Analysis based on Eurostat data for the second semester of 
2024.  For  household  consumers,  consumption  band  is  DC  for 
electricity  and  D2  for  gas,  which  refer  to  medium-sized 
consumers  and  provide  an  insight  into  affordability.  For  non-
household consumers, consumption band is ID for electricity and 
I4  for  gas,  referring  to  large-sized  consumers,  providing  an 
insight  into  international  competitiveness  (price  used  for  the 
calculation excludes VAT and other recoverable taxes/levies/fees 
as non-household consumers are usually able to recover VAT and 
some other taxes). 
(183) Yearly electricity data, Ember. 

 
 
 
capacity in Slovakia has remained stable at 4 MW 
since 2019(184). 

having 150 MW of installed onshore wind capacity 
by 2026. 

Graph A8.3: Slovakia's installed renewable 
capacity (left) and electricity generation mix 
(right) 

“Other” includes renewable municipal waste, solid biofuels, 
liquid biofuels, and biogas. 
Source: IRENA, Ember 

Slovakia  has  taken  steps  to  digitalise  the 
permit-granting procedure for renewables. In 
2024,  the  Spatial  Planning  Portal  was  set  up,  a 
platform that makes it possible for applications to 
be  submitted  for  all  spatial  planning  processes  in 
Slovakia.  In  addition,  Slovakia  has  digitalised  the 
grid connection procedure. It has also taken some 
steps  to  streamline  the  permitting  process  for 
renewable  energy  projects.  An  amendment  to 
environmental  impact  assessment  was  approved 
in  2024,  which  will  increase  the  threshold  under 
which  renewable  energy  projects  must  undergo 
certain  environmental  assessments.  However, 
there  is  still  room  for  further  improvement  to 
shorten  the  permit-granting  procedure  for  RES, 
especially  taking  into  consideration  the  guidance 
on  speeding  up  permit-granting  procedures.  The 
infringement 
Commission 
launched 
proceedings  against  Slovakia 
to 
failing 
transpose  the  permitting  provisions  laid  down  in 
Directive  (EU)  2023/2413  on  the  promotion  of 
energy from renewable sources. 

has 

for 

Slovakia’s proposed contribution to the 2030 
EU  renewable  energy  target  in  its  draft 
updated  national  energy  plan 
is  23%, 
significantly  below  the  35%.  Via  the  Union 
Renewable  Energy  Platform,  Slovakia  has 
announced auctions for other renewables in 2025 
(60 MW),  2026  (100 MW),  2027  (100 MW)  and 
2028  (100 MW).  As  part  of  the  European  wind 
power  action  plan,  Slovakia  has  committed  to 

(184) Renewable Energy Capacity Statistics 2025 

71 

Power  purchase  agreements  (PPAs)  are  not 
very  common  in  Slovakia.  The  first  virtual  PPA 
was concluded in 2024, with a volume of 7.2 GWh 
per year. 2024 has also seen the conclusion of the 
first  cross-border  PPA  with  Romania,  with  an 
installed  capacity  of  461 MW.  The  construction  of 
the wind plant, which will take place in Romania, is 
expected to be completed by the end of 2025. 

Energy efficiency 

towards 
Slovakia  has  made  progress 
reaching  the  2030  EU  energy  efficiency 
targets. In 2023, its primary energy consumption 
(PEC) was 15.45 Mtoe, a 0.3% increase compared 
to  2022.  In  2023,  its  final  energy  consumption 
(FEC)  was  9.29 Mtoe,  a  5.8%  decrease  compared 
to 2022. Compared to 2022, FEC decreased in all 
main sectors: in industry by 9.4%, in the residential 
sector  by  3.2%,  in  transport  by  1.5%  and  in 
services by 11.2%. According to the recast Energy 
Efficiency  Directive  (Directive  (EU)  2023/1791), 
Slovakia should  try to reach a PEC of 13.97 Mtoe 
and an FEC of 8.70 Mtoe by 2030. 

According to the national energy and climate 
progress  report  for  2023,  Slovakia  achieved 
new annual energy savings of 106 ktoe/year. 
The top four measures were voluntary agreements 
in  industry,  promoting  energy  efficient  transport 
(electromobility),  increasing  energy  efficiency  in 
road  freight  transport  (modernisation  of  the 
vehicle park) and renovation of buildings (blocks of 
flats). 

identifying 

Slovakia  has  not  notified  the Commission of 
its  comprehensive  heating  and  cooling 
the 
assessment 
application  of  high-efficiency  cogeneration  and 
efficient  district  heating  and  cooling  in  line  with 
Article 25(1)  of  the  Energy  Efficiency  Directive. 
There is no completion date. 

potential 

for 

It  would  be  beneficial  if  Slovakia  were  to 
step up its efforts in the residential sector to 
achieve  a  meaningful  contribution  to  its 
2030 
energy 
consumption  in  buildings.  Although  FEC  in  the 
residential  sector  decreased  between  2022  and 

reduction 

target 

for 

 
 
 
2023,  from  a  medium-term  perspective  it  is 
stagnating  at  well  above  the  2018  level  when 
climate corrections are applied. This is despite the 
target  laid  down  in  the  long-term  renovation 
strategy being a 16% reduction by 2030. In 2022, 
heating  and  cooling  represented  84%  of  the 
country’s  residential  FEC.  Approximately  12 000 
heat  pumps  were  sold  in  2023,  representing  a 
decrease  of  11%  compared  to  the  previous  year. 
the  sale  and 
Slovakia 
installation  of  new  fuel  and  oil  boilers.  There  are 
several  measures  in  place  to  support  energy 
renovations,  including  support  for  the  installation 
of  heat  pumps.  Electricity  in  Slovakia  was  3.4 
times more expensive than gas in 2023, meaning 
that end users save energy but will not make any 
significant financial savings if they choose a heat 
pump for heating. 

is  planning 

to  ban 

and 

Fund. 

efficiency 

implementing 

investments 

The  use  of 

Slovakia  deploys  an  effective  supportive 
national  financing  framework  that  mobilises 
energy 
is 
composed  mainly  of  grants  and  subsidies.  It  is 
implemented by the Slovak Innovation and Energy 
Agency  (SIEA),  or  by  various  ministries  or  the 
Environment 
financial 
instruments  remains  limited.  In  2024,  Slovakia 
continued 
financing  measures, 
including a EUR 357.3 million state aid scheme for 
industrial decarbonisation under the Recovery and 
Resilience Plan, set  to run from 2022 to 2026. In 
terms  of  sectors  supported,  Slovakia’s  national 
financing  framework  focuses  mainly  on  the 
building  sector 
residential  and  public 
buildings)  and  to  some  extent  also  on  industry. 
Slovakia  continues  to  have  a  scheme  to  support 
the construction, reconstruction and modernisation 
of  heat  distribution 
systems,  which  was 
implemented between 2020 and 2023. 

(both 

Security of supply and diversification 

Slovakia’s  dependence  on  Russian  fossil 
fuels  remains  high,  with  efforts  to  address 
this  issue  progressing  too  slowly.  In  2024, 
around 70% of natural gas was of Russian origin. 
The  country’s  energy  security  priorities  include 
enhancing  energy  security,  diversifying  energy 
sources  and  transport  routes,  and  promoting 
energy storage. Slovakia has reduced gas demand 
by  14%  voluntarily  since  August  2022,  with  an 
improvement  in  demand management  being  seen 

72 

between 2023 and 2024. Given that the transit of 
Russian  gas  via  Ukraine  has  been  stopped, 
Slovakia  no  longer  receives  Russian  gas  directly 
via  Ukraine  but  mostly  from  Hungary.  Slovenský 
(SPP)(185)  has  already 
plynárenský  priemysel 
the 
concluded  a  diversification  contract  for 
purchase  of  gas  with 
Italy’s  Eni.  Other 
diversification contracts exist with BP, ExxonMobil, 
Shell  and  RWE.  Alternative  transit  routes  other 
than  Ukraine  are  Germany,  Austria  and  Czechia, 
which  offer  sufficient  volumes  of  free  transit 
capacity or have already been reserved. Moreover, 
SPP has also used the transit route from Croatia or 
Italy, via Austria to Slovakia. Despite  Russia’s war 
of aggression against Ukraine, Slovakia is still fully 
dependent  on  oil  deliveries  from  Russa  via  the 
Druzhba  pipeline  and  has  an  oil  contract  with 
Russia  that  is  valid  until  31 December  2029.  In 
2024,  crude  oil 
the  Russian 
Federation  to  Slovakia  amounted  to  more  than 
80% of all crude oil consumed. The operator of the 
sole  refinery  in  Slovakia  (MOL  group)  announced 
that  they  will  be  able  to  fully  refine  from  non-
Russian  crude  oil  in  2026.  Slovakia  has  the 
possibility to use JANAF/Adria oil pipeline to supply 
non-Russian crude oil. 

imports  from 

In 2023, Slovakia’s gross inland consumption was 
composed  of  21.6  %  natural  gas  (3  610  KTOE), 
14.4  %  of  solid  fossil  fuels  (2  402  KTOE),  22.3% 
of  oil  and  petroleum  products  (3  726  KTOW), 
28.3% of nuclear heat (4 733 KTOW) and 12.3 % 
of renewables and biofuels (2 055 KTOE).(186) 

It  would  be  useful  if  Slovakia  were  to 
increase its efforts to diversify from Russian 
energy. According to the 2023 NECP (187), various 
in  different 
forms  of  possible  participation 
liquefied  natural  gas  (LNG)  projects  (floating 
storage and regasification units (FSRUs)) in the EU 
are being considered as an additional contribution 
to security of supply. The Slovak gas industry has 
signed  memoranda  of  understanding  with  a 
number  of  companies  from  Italy,  Poland  and 
Germany  that  could  provide  access  to  LNG 
terminals  and  possible  gas  supplies  to  Slovakia. 
The  above  steps  have  been  taken  to  strengthen 
In  parallel, 
Slovakia’s  energy 

independence. 

(185) The state-owned gas supplier 

(186) Energy Balances - Eurostat 
(187)The final 2024 NECP has not been submitted at the moment 
of drafting. 

 
 
 
Slovakia’s  GDP  (191),  below  the  EU  weighted 
average of 0.49%. Tax measures accounted for 
the 
full  volume.  However,  Slovakia’s  2023 
Effective  Carbon  Rate  (192)  averaged  EUR  64.05 
per tonne of CO₂, below the EU weighted mean of 
EUR 84.80 (193). 

negotiations  are  also  taking  place  with  LNG 
producers from the USA, Qatar, Asia and Africa. By 
concluding  these  diversification  contracts,  SPP  is 
now  able  to  cover  around  70%  of  its  customers’ 
consumption from a non-Russian source (188). 

having 

reactor 

nuclear 

its  nuclear  fleet,  with 

Slovakia's electricity mix has seen a growing 
share of nuclear energy, rising from 60.2% in 
2022 to 62% in 2023. Slovakia is continuing to 
the  newest 
expand 
Mochovce-3 
been 
connected to the grid and reaching full production 
at the end of 2023. The construction of Mochovce-
4, the fourth reactor at the site, is expected to be 
completed  in  the  second  half  of  2025.  In  2024, 
the  government  announced  plans  to  construct  an 
additional reactor at Bohunice, with construction to 
be launched in 2031. In January 2025, framework 
contracts  were  announced  between  newcleo  and 
JAVYS and VUJE for the construction of advanced 
to 
modular 
construct  four  lead-cooled  fast  reactors  (LFRs) 
that will make it possible for Slovak spent nuclear 
fuel  to  be  used  as  fuel.  Diversification  has 
progressed  with  Slovenske  elektrarne  signing  an 
alternative fuel supply contract with Westinghouse 
Sweden  for  its  VVER-440  reactor  fleet.  In  July 
2024,  Slovenske  elektrarne  also  signed  a  VVER-
440 fuel supply contract with the French company 
Framatome.  These  steps  will  reduce  dependency 
on nuclear fuel originating in Russia. It is important 
for  Slovakia  to  develop  a  national  plan  to  fully 
phase out its dependency on Russian nuclear fuel, 
as  foreseen  by  the  REPowerEU  Roadmap  adopted 
on 6 May 2025. 

(AMRs).  Newcleo  aims 

reactors 

Fossil fuel subsidies 

In  2023,  environmentally  harmful  (189)  fossil 
fuel  subsidies  without  a  planned  phase-out 
before  2030  represented  0.10%  (190)  of 

(188) 2023 NECP, p. 67 (EN version). 
(189) Direct fossil fuel subsidies that incentivise maintaining or 
increasing in the availability of fossil fuels and/or use of 
fossil fuels. 

190 Numerator is based on volumes cross-checked with the 

191 2023 Gross Domestic Product at market prices, Eurostat. 

Slovak authorities. For all Member States, it includes public 
R&D expenditures for fossil fuels as reported by the IEA 
(Energy Technology RD&D Budgets) and excludes, for 
methodological consistency, excise tax exemption on 
kerosene consumed in intra-EU27 air traffic. 

192 The Effective Carbon Rate is the sum of carbon taxes, ETS 
permit prices and fuel excise taxes, representing the 
aggregate effective carbon rate paid on emissions. 

193 OECD (2024), Pricing Greenhouse Gas Emissions 2024 

73 

 
 
 
Table A8.1:  Key Energy Indicators 

Source: Eurostat, ENTSO-E, S&P Platts 

74 

20212022202320242021202220232024Household consumer - Electricity retail price (EUR/KWh)0.1647          0.1839              0.1976              0.1789          0.2314              0.2649          0.2877          0.2879          Energy & supply [%]37.0%44.2%43.0%48.2%36.6%54.3%55.6%47.8%Network costs26.0%25.3%20.6%20.8%26.7%25.3%24.8%27.2%Taxes and levies including VAT36.9%30.5%36.3%30.9%36.7%20.3%19.6%25.0%VAT16.6%16.7%16.6%16.7%14.5%13.4%13.8%14.6%Household consumer - Gas retail price0.0415          0.0493              0.0587              0.0592          0.0684              0.0948          0.1121          0.1128          Energy & supply45.8%51.5%50.8%50.8%43.7%61.0%64.5%53.9%Network costs37.6%31.8%32.5%32.4%22.5%17.3%17.1%18.3%Taxes and levies including VAT16.6%16.6%16.7%16.7%33.8%21.7%18.4%27.8%VAT16.6%16.6%16.7%16.7%15.5%11.6%10.2%13.6%Non-household consumer - Electricity retail price0.1483          0.2795              0.2779              0.2131          0.1471              0.2212          0.2337          0.1970          Energy & supply39.4%63.9%59.8%57.8%43.0%66.5%63.0%55.8%Network costs20.6%11.2%11.4%14.8%15.8%10.7%11.9%15.5%Taxes and levies excluding VAT28.1%9.8%14.6%12.8%30.4%9.9%11.2%15.4%Non-household consumer - Gas retail price0.0322          0.0909              0.0972              0.0723          0.0388              0.0836          0.0754          0.0603          Energy & supply66.5%75.2%73.1%69.2%66.2%77.3%77.3%68.7%Network costs12.7%6.6%8.8%12.3%7.7%3.8%5.3%7.1%Taxes and levies excluding VAT4.9%1.8%1.6%2.3%12.5%6.1%7.3%11.6%Wholesale electrity price (EUR/MWh)102.4264.1105.092.8111.0233.299.184.7Dutch TTF (EUR/MWh)n/an/an/an/a46.9123.140.534.420172018201920202021202220232024Gross Electricity Production (GWh)27.738          26.971              28.434              28.838          30.016              26.838          29.903          -Combustible Fuels7.367         7.542             7.953             7.897         8.999            6.254         5.882         -Nuclear15.081       14.843           15.282           15.444       15.730          15.920       18.333       -Hydro4.623         3.879             4.571             4.799         4.552            3.963         5.028         -Wind6                 6                     6                     4                 5                    4                 4                 -Solar506             585                589                663             671                650             605             -Geothermal-              -                 -                 -              -                 -              -              -Other Sources155             116                33                  31               59                  47               51               Gross Electricity Production [%]Combustible Fuels26.6%28.0%28.0%27.4%30.0%23.3%19.7%-Nuclear54.4%55.0%53.7%53.6%52.4%59.3%61.3%-Hydro16.7%14.4%16.1%16.6%15.2%14.8%16.8%-Wind0.0%0.0%0.0%0.0%0.0%0.0%0.0%-Solar1.8%2.2%2.1%2.3%2.2%2.4%2.0%-Geothermal0.0%0.0%0.0%0.0%0.0%0.0%0.0%-Other Sources0.6%0.4%0.1%0.1%0.2%0.2%0.2%-Net Imports of Electricity (GWh)3.0283.6821.7003197741.412-3.422-As a % of electricity available for final consumption 11.2%13.7%6.5%1.3%2.9%5.9%-15.5%-Electricity Interconnection [%]43.3%42.7%45.3%41.4%40.2%47.0%50.6%47.8%Share of renewable energy consumption - by sector [%]Electricity21.3%21.5%22.1%23.1%22.4%22.9%24.2%-Heating and cooling9.8%10.6%19.7%19.4%19.5%19.9%18.8%-Transport7.0%7.0%8.3%9.3%8.8%8.9%9.2%-Overall11.5%11.9%16.9%17.3%17.4%17.5%17.0%-20202021202220232020202120222023Import Dependency [%] 56.3%52.6%69.6%57.7%57.5%55.5%62.5%58.3%of Solid fossil fuels 86.2%88.1%96.1%90.4%35.8%37.2%45.9%40.8%of Oil and petroleum products 102.0%98.3%103.0%105.2%96.8%91.7%97.8%94.5%of Natural Gas 88.1%69.0%137.3%105.7%83.6%83.6%97.6%90.0%Dependency from Russian Fossil Fuels [%]of Natural Gas 85.4%68.9%38.6%63.9%41.0%40.9%20.7%9.3%of Crude Oil100.0%100.0%96.2%84.0%25.7%25.2%18.4%3.0%of Hard Coal35.0%25.8%8.9%0.0%49.1%47.4%21.5%1.0%2017201820192020202120222023Gas Consumption (in bcm)5.0                 4.9                     4.9                     4.9                 5.5                    4.5                 4.2                 Gas Consumption year-on-year change [%]5.4%-1.2%-0.1%-0.4%11.9%-17.4%-6.2%Gas Imports - by type (in bcm)5.2                 4.4                     6.7                     4.3                 5.1                    6.2                 4.5                 Gas imports - pipeline5.2                 4.4                     6.7                     4.3                 5.1                    6.2                 4.5                 Gas imports - LNG0.00.00.00.00.00.00.0Gas Imports - by main source supplier [%]Russia84.6%100.0%100.0%85.4%68.9%38.6%63.9%Not specified15.4%0.0%0.0%14.6%31.1%61.4%36.1%SlovakiaEU 
 
   
 
ANNEX 9: CLIMATE ADAPTATION, PREPAREDNESS AND ENVIRONMENT 

Extreme  weather 
events  and  nature 
degradation  have  a  significant  impact  on 
Slovakia,  with  economic  sectors  such  as 
agriculture, forestry and construction heavily 
dependent  on  ecosystem  services.  Despite 
having  a  large  proportion  of  protected  areas, 
effective  conservation  measures  are 
lacking, 
leading  to  ongoing  legal  issues  and  funding  gaps 
that  threaten  biodiversity  and  economic  stability. 
The  current  Slovak  government  has  diverted 
funding away from nature and diversity protection 
and  has  relaxed  environmental  protection  laws. 
Slovakia  is  making  strides  in  transitioning  to 
including 
sustainable 
increasing  organic  farming  and 
implementing 
stricter  environmental  standards.  However,  these 
efforts are undermined by insufficient investment 
in  biodiversity  conservation,  putting  Slovakia’s 
compliance  with  global  biodiversity  commitments 
and  its  long-term  socioeconomic  development  at 
risk. The water quality of Slovakia’s surface water 
bodies  shows  a  deteriorating  trend  in  terms  of 
their  ecological  and 
Its 
wastewater  treatment  also  remains  a  cause  for 
concern.  Addressing  these  challenges  is  crucial  to 
safeguarding  Slovakia’s  natural  resources  and 
ensuring  the  resilience  and  competitiveness  of  its 
economy. 

agricultural 

practices, 

chemical 

status. 

Climate adaptation and preparedness 

events, 

including 

Slovakia  is  vulnerable  to  the  impacts  of 
climate  change  resulting  from  extreme 
weather 
increased 
precipitation  and  rising  temperatures,  which 
increase  the  risk  of  flooding.  Climate  risks 
directly  affect  Slovakia’s  economy  and  society. 
Between  1980  and  2023,  Slovakia  recorded 
EUR 1.95  billion  in  economic  losses  caused  by 
extreme  weather-  and  climate-related  events. 
However, only 4% of the economic damages over 
that  period  were  insured.  In  2022,  20%  of 
Slovakia’s area was affected by drought. 

related 

policy  measures 

to 
National 
adaptation  and  preparedness  have  been 
further  strengthened  over  recent  years,  but 
additional  efforts  are  still  required.  Slovakia 
has  been  proactive  in  addressing  climate-change 
impacts over the past few years and continued to 
make progress between 2021 and 2023. A crucial 
step  was  the  approval  of  the  national  adaptation 

in 

the  sectors 

plan  (NAP)  in  2021,  which  sets  out  the  priorities 
identified  as 
for  adaptation 
vulnerable  to  climate  change  (in  particular  water 
management,  agriculture,  forestry,  nature,  health 
and urban planning). However, Slovakia still needs 
to  carry  out  a  comprehensive  assessment  of  its 
vulnerability  to  climate  change.  Furthermore, 
progress on the new climate law, referred to in the 
Government  Manifesto  of  October  2023 (194),  has 
stalled  in  2024.  The  update  of  its  national 
adaptation strategy (NAS) is due in 2025. Slovakia 
also has yet to submit its updated national energy 
and climate plan to the European Commission. The 
most recent draft update does not take account of 
relevant  climate  vulnerabilities  and  risks,  which 
may  jeopardise  the  achievement  of  energy  and 
addition, 
climate  mitigation 
adaptation  policies  and  measures  (to  address 
these risks and vulnerabilities) are not adequately 
described. 

objectives. 

In 

tools 

climate-observation 

translating  climate 

Despite  advances  in  climate  monitoring  and 
modelling,  Slovakia  faces  challenges  in  the 
effective 
implementation  of  adaptation 
solutions. As mentioned in the conclusions to the 
assessment  of  Slovakia's  progress 
towards 
adaptation  under  European  climate  legislation, 
Slovakia  has  continued  to  develop  its  climate 
but 
tools, 
and  modelling 
monitoring 
methodological  gaps 
the  monitoring  of 
in 
adaptation  and  climate  risks  remain.  Although 
inform 
enhanced 
decision-making in specific sectors, there is limited 
capacity for systemic risk assessments. Challenges 
in 
into 
practicable solutions therefore remain. The climate 
vulnerability  and  risk  analysis  has  not  identified 
any  further  risks  that  were  not  reported  in  2021, 
and  the  reported  risks  and  sectors  appear  to  be 
consistent with the results of independent analysis 
by  the  Joint  Research  Centre  and  the  country’s 
own  national  risk  assessment  (195).  Guidelines  are 
available  on  how  to  monitor  and  evaluate 
adaptation policy, but it is still difficult to establish 
how  much  public  money  is  spent  overall  on 
climate  adaptation  and 
results. 
Furthermore, personnel changes at the Ministry of 
the  Environment  during  2024  have  weakened  the 
Ministry's  expertise  capacity  and,  as  a  result, 
finding  sufficient  financing  from  appropriate 

to  measure 

information 

risk 

(194) Úrad vlády Slovenskej republiky, 2023, Programové 

vyhlásenie vlády Slovenskej republiky, Link. 

(195) SWD(2023) 932 final; p. 266. 

75 

 
 
 
 
 
sources in Slovakia and via EU funding remains a 
challenge  in  sectors  that  need  to  adapt.  Other 
barriers  to  successful  implementation,  in  addition 
to  insufficient  funding,  are  low  awareness  at 
regional and local level and an inadequate degree 
(especially  for 
of 
mainstreaming  climate  adaptation  into  sectoral 
policies  and  plans).  Further  efforts  are  needed  to 
enhance  the  climate  resilience  of  infrastructure 
and  to  make  more  progress  on  adaptation 
solutions. 

interministerial  cooperation 

Water resilience 

Slovakia  needs  to  continue  its  efforts  to 
improve  its  floods  resilience.  The  floods  of 
September 2024, which caused damage in several 
regions  of  Slovakia,  demonstrate  the  urgency. 
Slovakia’s total  economic losses caused by floods 
between  1980  and  2023  are  estimated  at 
EUR 603 million (196). Improving sustainable water 
management  and  flood  protection,  by  prioritising 
nature-based  solutions  and  river  restoration,  is 
crucial  to  the  competitiveness  of  many  economic 
sectors.  Slovakia  is  not  among  the  EU  Member 
States  that  suffer  major  water  stress.  The  water 
exploitation  index  plus  (WEI+)  was  0.4  in  2022. 
Manufacturing  (51%)  and  public  water  supply 
(32%)  had  the  highest  water  consumption  in 
Slovakia  in  2022.  Slovakia’s  water  productivity  is 
above the EU average, standing at EUR 152 per m3 
of abstracted water in 2022 (197). 

The  water  quality  of  Slovakia’s  surface 
water  bodies  shows  a  deteriorating  trend  in 
terms  of  their  ecological  and  chemical 
status.  Slovakia’s  third  river  basin  management 
plans,  covering  2022-2027,  show  a  decrease  in 
the  number  of  surface  water  bodies  classified  as 
having good (or better) ecological status/potential, 
from  56%  (second  plan)  to  just  41%  (third  plan). 
Agricultural  eutrophication  still  places  great 
pressure  on  Slovakia’s  surface  water  bodies. 
Hydromorphological alterations, i.e. changes to the 
shape and flow of water bodies, such as breaking 
the continuous flow of a river, are another source 

of pressure. Emerging issues are invasive species, 
sediment  management  and  fish  management.  As 
regards  the  chemical  status  of  Slovakia’s  surface 
water  bodies,  the  deterioration  between  the 
second  and  the  third  river  basin  management 
plans  is  even  greater.  The  proportion  of  surface 
water bodies with a good chemical status fell from 
98% to just 71%. This is reported to be mostly due 
to  improved  monitoring  and  increased  confidence 
from 
in  classification.  The  pressures  come 
ubiquitous,  persistent,  bio-accumulative  and  toxic 
substances,  which  are  difficult  to  address,  and 
industrial  point  sources, 
from  pollution  from 
organic pollution from municipal point sources and 
industry/agriculture. 
Slovakia's 
groundwater  bodies  are  reported  to  have  a  good 
quantitative  status  in  the  third  plan,  showing  a 
significant  improvement  since  the  second  plan. 
87%  of  Slovakia’s  groundwater  bodies  are 
reported  to  have  a  good  chemical  status,  also 
showing  a  significant  improvement  since  the 
second  plan.  Though  there  has  been  an  apparent 
improvement  in  status,  a  significant  sustained 
upwards  trend  in  concentrations  of  pollutants 
(nutrients and total organic carbon) is reported. 

91% 

of 

longstanding 

The 
lack  of  environmental 
assessment of numerous hydroelectric power 
plants  has  resulted  in  the  deterioration  of 
Slovakia’s  rivers,  especially  the  river  Hron. 
Slovakia needs to remedy the situation as soon as 
possible (198). 

Slovakia’s  wastewater  treatment  remains  a 
cause  for  concern.  Despite  improvements  in 
compliance  over  the  years,  mainly  thanks  to  EU 
funding,  Slovakia  has  experienced  difficulties  in 
implementing  the  Urban  Wastewater  Treatment 
Directive.  Its  incomplete  implementation  forced 
the  Commission  to  take  legal  action  against 
Slovakia 
in  2021.  Both 
infringement  cases  are  advancing,  and  it  is  likely 
that  they  will  reach  the  Court.  In  2020,  319 
agglomerations  complied  with  the  Directive's 
requirements in Slovakia, while 37 agglomerations, 
generating 246 150 p.e. of urban waste water, did 
not.  The  Directive  was  revised  in  2024  (199), 
strengthening  existing  treatment  standards  and 

in  2016  and  again 

(196) EIOPA, 2024, Dashboard on insurance protection gap for 

natural catastrophes, Link. 

(197) Measured as GDP in 2010 chain linked volumes over total 

fresh surface water abstracted in cubic metres. 

(198) As the current situation breaches the Environmental Impact 
Assessment Directive, the Water Framework Directive and 
the Habitats Directive, an infringement case against Slovakia 
is ongoing. 

(199) Directive 2024/3 019 of 27 November 2024. 

76 

 
 
 
as regulating water cycles, maintaining soil health, 
and sequestering carbon. 

on 

dependency 

Nature  degradation  creates  significant  risks 
to  Slovakia's  economy  and  competitiveness, 
as  it  is  one  of  the  Member  States  with  a 
significant 
ecosystem 
services.  39%  of  Slovakia’s  gross  value  added 
has  a  high  direct  dependency  on  ecosystem 
services. Though this is lower than the EU average 
of  44%,  several  sectors,  such  as  agriculture, 
forestry,  fisheries,  mining,  construction,  water 
utilities  and  healthcare  delivery  (see  Graph  A9.1), 
are  particularly dependent  on  ecosystem  services. 
100% of the gross value added of these sectors is 
directly  dependent  on  those  services.  This  means 
the  capacity  of 
that 
ecosystems 
to  deliver  services  could  entail 
significant  costs  or  even  stop  production  in  these 
sectors.  Protecting  and  restoring  key  ecosystems 
would  ensure  that  the  long-term  competitiveness 
of these economic sectors is preserved. 

to  maintain 

failure 

introducing  new  requirements  such  as  additional 
in  urban  waste 
treatment  of  micropollutants 
water.  Slovakia  has  until  31 July  2027 
to 
transpose it into its legal system. 

under 

EU  water 

With  a  view  to  achieving  the  environmental 
targets 
legislation, 
Slovakia’s water investment gap amounts to 
EUR 223 million per year (0.2% of GDP), with 
almost  half  relating  to  waste  water  (105 
million  per  year).  Slovakia’s  annual  water 
investment needs stand at an estimated EUR 506 
million  (in  2022  prices),  see  Graph  A9.2.  This 
includes  both  the  water 
industry  and  water 
protection/management.  The  largest  part  of  the 
total  annual  need,  EUR 231  million,  relates  to 
wastewater management,  including  the  additional 
costs  of  the  revised  Directive.  Slovakia’s  current 
annual  water  investments,  over  the  period  2021-
2027, are estimated to be around EUR 282 million 
per  year  (in  2022  prices).  Of  the  total  financing, 
38.1% is provided by the EU multiannual financial 
framework  (mostly  through  cohesion  policy),  with 
small  support  from  the  Recovery  and  Resilience 
Facility  (2.8%).  The  bulk  of  the  financing  comes 
from national sources (59%) (200). 

Biodiversity and ecosystems 

and 

The state of nature and ecosystems remains 
under  pressure,  affecting  Slovakia’s  climate 
resilience.  Infrastructure  development,  such  as 
roads,  motorways,  small  hydroelectric  power 
plants,  water 
anti-flood 
reservoirs 
infrastructure,  causes  fragmentation  of  natural 
habitats, and thus has a major negative impact on 
biodiversity. According to the latest available data 
(2018),  only  37.6%  of  Slovakia’s  habitats  have  a 
good status, higher than the EU average of 14.7%. 
Similarly,  the  conservation  status  of  species  is 
concerning,  with  23%  reported  as  having  a  good 
status,  lower than  the  EU  average  of  27.5%.  This 
situation  has  severe  implications  for  Slovakia’s 
climate  resilience,  as  the  loss  of  biodiversity 
impairs ecosystems’ ability to provide services that 
help  mitigate  the  effects  of  climate  change,  such 

(200) Water investment levels are estimated through tracking EU 
funds, EIB projects and national expenditure (EPEA accounts, 
Eurostat). 

77 

 
 
Graph A9.1: Direct dependency(1) on ecosystem 
services(2) of the gross value added generated by 
economic sector in 2022 

concerns  Slovakia’s  failure  to  take  measures  to 
protect the Capercaillie bird species (202). 

for 

and 

Slovakia’s  investment  needs  for  biodiversity 
and  ecosystems  are  estimated  at  EUR 781 
million per year (in 2022 prices) over the period 
2021-2027 (see Graph A9.2). The current level of 
financing 
ecosystem 
biodiversity 
conservation in Slovakia is around EUR 364 million 
per  year.  The  existing  gap  (EUR 416  million  per 
year,  corresponding  to  0.38%  of  Slovakia’s  GDP) 
puts  at  risk  the  country’s  commitment  to  global 
biodiversity  agreements  and  undermines  its  long-
development. 
term 
Nevertheless, 
diverted 
substantial  cohesion  funds  away  from  nature 
protection and stopped the national cofinancing of 
several  LIFE projects  concerning  nature  protection 
and restoration. 

and 
Slovakia 

economic 

recently 

social 

(1) Dependency based on the sector’s own operations, 
excluding value chain operations within countries and across 
international value chains. A high dependency indicates a high 
potential exposure to nature-related shocks or deteriorating 
trends, which means that the disruption of an ecosystem  
service could cause production failure and severe financial 
loss. 
(2) Ecosystem services are the contributions of ecosystems to 
the benefits that are used in economic and other human 
activity, including provisioning services (e.g. biomass 
provisioning or water supply), regulating and maintenance 
services (e.g. soil quality regulation or pollination), and cultural 
services (e.g. recreational activities). 
Source: Hirschbuehl et al., 2025, The EU economy's 
dependency on nature, Link. 

Focused  action  on  nature  protection  and 
restoration  is  needed  to  meet  Slovakia’s 
nature  restoration  targets.  Slovakia’s  2030 
National  Biodiversity  Strategy  and  Action  Plan  is 
currently  in  preparation.  It  has  not  yet  submitted 
national  targets  to  the  Convention  on  Biological 
Diversity’s online reporting tool. In 2022, 37.4% of 
land  area 
Slovakia's  territory  was  protected 
(including  Natura  2000  and  other  nationally-
designated protected areas), which is above the EU 
average  of  26%.  However,  Slovakia  has  not  yet 
drawn  up  the  conservation  measures  to  ensure 
those  areas'  effective  protection  and  restoration. 
An  infringement  procedure  concerning  this matter 
is ongoing (201). Another ongoing infringement case 

Graph A9.2: Investment needs and gaps in EUR 
million, in 2022 constant prices 

Source: European Commission, DG Environment, 
Environmental investment needs & gaps assessment 
programme, 2025 update. 

Sustainable agriculture and land use 

Slovakia’s  carbon  removals fall  short  of  the 
level  of  ambition  needed  to  meet  its  2030 
target  for  land  use,  land-use  change  and 

(201) European Commission, 2022, February infringements 

(202) Court of Justice of the European Union, 2022, Press release 

package: key decisions, Link. 

No 107/22, Link. 

78 

0%20%40%60%80%100%AgricultureForestryFishery and acquacultureMining and metalsConstructionWater utilitiesHealthcare deliveryAviation travel and tourismFood beverages and tobaccoSupply chain and transportPublic services and othersElectricityChemical and materials industryElectronicsOil and gasReal estateHeat utilitiesAutomotiveRetail consumer goods and…Information technologyBanking and capital marketsInsurance and asset…Digital communicationsHighMediumLow - 100.0 200.0 300.0 400.0 500.0 600.0 700.0 800.0 900.0BiodiversityWaterBaselineGap 
     
 
     
 
forestry  (LULUCF).  Removals  by  Slovakia’s 
LULUCF  sector  have  increased  considerably  since 
2018. To meet its 2030 LULUCF target, additional 
carbon  removals  of  -0.5  million  tonnes  of  CO2 
equivalent  (CO2eq)  are  needed  (203).  The  latest 
available  projections  show  a  gap  to  target  of  1.9 
million tonnes of CO2eq for 2030 (204). Therefore, 
additional  measures  need  to  be  applied  to  reach 
the 2030 target. 

Slovakia’s  agriculture  is  still  a  major  source 
of  greenhouse  gas  emissions  and  continues 
to  have  a  significant  impact  on  air,  water 
and  soils.  Slovak  agriculture,  together  with 
forestry,  represents  around  2.2%  of  the  gross 
value added of the country’s economy (205). It plays 
a  crucial  role  by  utilising  the  resources  of  rural 
areas to provide  food and public  assets, including 
environmental,  landscaping  and  social  assets.  In 
2022,  agriculture  was  responsible  for  a  total  of 
1.9 million tonnes of CO2eq, accounting for around 
5.1%  of  the  country’s  total  emissions.  This 
includes  1.5  million  tonnes  of  CO2eq  from 
livestock. Slovakia's utilised agricultural area (UAA) 
decreased  slightly  between  2012  (1.9  million 
hectares) and 2023 (1.8 million hectares). Nutrient 
losses  from  agriculture,  mainly  from  mineral 
significant 
fertilisers  and  manure,  are  a 
environmental  concern  and  pose  a  threat  to 
human  health.  This  is  reflected  in  the  country’s 
nitrogen  balance  of  44.9 kg  of  nitrogen  per 
hectare  of  UAA  (in  2021).  Furthermore,  according 
to  data  from  the  Nitrates  Directive,  12%  of 
groundwater  monitoring  stations 
in  Slovakia 
recorded  average  nitrate  concentrations  above 
50 mg/l  between  2016  and  2019,  exceeding  the 
healthy  threshold  for  human  consumption.  The 
livestock  density  index  was  0.33  in  2020,  and  is 
thus  below  the  EU  average  of  0.75.  Ammonia 
emissions have shown a decreasing trend between 
2018  (29.5  thousand  tonnes  annually)  and  2022 
(21.5 thousand tonnes annually). 7% of monitoring 
sites  in  Slovakia  reported  pesticide  thresholds 
being exceeded in surface waters (based on 2017-

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

Regulation (EU) 2023/839. 

(204) Climate Action Progress Report 2024 COM/2024/498. 

2022  data),  which  is  significantly  lower  than  the 
European average of 29% (206). 

the 

impact 

Slovakia  is  transitioning  to  a  sustainable 
food  system  by  implementing  policies  to 
of 
environmental 
reduce 
agriculture.  In  2022,  4%  of  its  agricultural  land 
had  landscape  features  such  as  woods  and  non-
productive  grasslands,  below  the  EU  average  of 
5.6%.  Organic  farming,  which  reduces  the  use  of 
synthetic  fertilisers  and  pesticides,  has  been 
steadily  increasing  in  Slovakia  since  2005  and 
made  up  13.7%  of  its  agricultural  land  in  2022. 
Slovakia’s  common  agricultural  policy 
(CAP) 
strategic plan is aimed at ensuring the sustainable 
competitiveness  and  resilience  of  farms  and  a 
fairer  income  for  agricultural  producers,  with 
particular attention paid to small-scale and young 
farmers.  The  plan  also  focuses  on  improving  the 
protection of natural resources and the climate. It 
contributes  substantially  to  improving  the  vitality 
and  quality  of 
in  rural  areas  through 
investments, knowledge transfer and innovation. 

life 

Slovakia  faces  major  challenges  relating  to 
the  management  of  natural  resources  and 
biodiversity 
loss,  particularly  given  the 
intensification of agricultural production and 
the  impacts  of  climate  change.  To  deliver  on 
higher  environmental  goals,  Slovakia  applies 
stricter mandatory standards to maintain the good 
agricultural  and  environmental  conditions  (GAECs) 
of  farmland.  More  than  EUR 513  million  in  EU 
funds  are  reserved  for  Slovakia’s  farmers  who 
voluntarily  commit 
to  more  environmentally 
ambitious activities on agricultural land, as part of 
the  new  whole-farm  eco-scheme.  This  includes 
practices  such  as  improving  soil  structure,  setting 
aside non-productive areas and sowing them with 
pollinator mixtures, limiting the maximum area of 
cultivated  land  or  postponing  mowing.  Slovakia 
aims  to  cultivate  20%  of  its  agricultural  land 
under organic farming by 2030. The CAP strategic 
plan  helps  this  process  by  providing  financial  aid 
to  270 000  hectares  (14%  of  the  agricultural 
land).  Under  rural  development,  about  46%  of 
funds are reserved for environmental and climate-
agri/forest 
related 
environmental  and  climate  measures.  On  more 
than  27%  of  the  agricultural  area,  practices 
resulting  in  sustainability  and  the  reduced  use  of 

objectives, 

such 

as 

(205) Share of agriculture in GDP - Data Portal - United Nations 

(206) EEA, 2024, Pesticides in rivers, lakes and groundwater in 

Economic Commission for Europe 

Europe, Link. 

79 

 
 
 
pesticides  are  applied.  Furthermore,  following  the 
Russian  invasion  of  Ukraine,  the  plan  aims  to 
increase 
the  production  of 
in 
investments 
renewable energy (207). 

(207) Slovakia – CAP Strategic Plan, Link. 

80 

 
 
 
Table A9.1:  Key indicators tracking progress on climate adaptation, resilience and environment 

(1) The data show the average for the timespan 2006-2023 based on EFFIS - European Forest Fire Information System. 
(2) Scale: 0 (no protection gap) – 4 (very high gap). EIOPA, 2024, Dashboard on insurance protection gap for natural catastrophes. 
(3) van Daalen, K. R. et al., 2024, The 2024 Europe report of the Lancet Countdown on health and climate change: unprecedented 
warming demands unprecedented action. The Lancet Public Health. 
(4) This indicator measures total water consumption as a percentage of the renewable freshwater resources available for a given 
territory and period. Values above 20% are generally considered to be a sign of water scarcity, while values equal or greater than 
40% indicate situations of severe water scarcity. 
(5) European Commission, 2024, seventh Implementation Report from the Commission to the Council and the European 
Parliament on the implementation of the Water Framework Directive (2000/60/EC) and the Floods Directive (2007/60/EC) (Third 
River Basin Management Plans and Second Flood Risk Management Plans). 
(6) For this indicator, the EU average includes figures for the UK under the previous configuration, EU-28. 
(7) European Commission, 2023, EU Bioeconomy Monitoring System dashboards. 
(8) Nitrates can persist in groundwater for a long time and accumulate at a high level through inputs from anthropogenic sources 
(mainly agriculture). The EU drinking water standard sets a limit of 50 mg NO3/L to avoid threats to human health. 
(9) 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. 
Source: Eurostat, EEA. 

81 

Climate adaptation and preparedness:20182019202020212022202320182021Drought impact on ecosystems1.40.380.020.620.260.676.772.76[area impacted by drought as % of total]Forest-fire burnt area (1)29            29            29            29            29            29            [ha, annual average 2006-2023]Economic losses from extreme events-           33            21            40            85            4              24 142       62 981       [EUR million at constant 2022 prices]Insurance protection gap (2)----1.25         1.25         [composite score between 0 and 4]Heat-related mortality (3)32            32            32            32            32            [number of deaths per 100 000 inhabitants in 2013-2022]Sub-national climate adaptation action16            19            19            19            16            17            4144[% of population covered by the EU Covenant of Mayors for Climate & Energy]Water resilience:20182019202020212022202320182021Water Exploitation Index Plus, WEI+ (4)0.50.30.40.30.4-4.54.5[total water consumption as % of renewable freshwater resources]Water consumption309          206          312          206          205          -           [million m3]Ecological/quantitative status of water bodies (5)[% of water bodies failing to achieve good status]Surface water bodies---59%---59%Groundwater bodies---9%---93%Biodiversity and ecosystems:20182019202020212022202320182021Conservation status of habitats (6)37.6-----14.7-[% of habitats having a good conservation status]Common farmland bird index83.5-----72.274.42000=100Protected areas---3737--26[% of protected land areas]Sustainable agriculture and land use:20182019202020212022202320182021Bioeconomy's added value (7)3 759       3 509       3 608       4 069       634 378     716 124     [EUR million]Landscape features----4              -[% of agricultural land covered with landscape features]Food waste--107101106-[kg per capita]Area under organic farming9.910.311.713.513.77.99-[% of total UAA]Nitrogen balance50.851.242.244.9--[kg of nitrogen per ha of UAA]Nitrates in groundwater (8)18.316.218.617.9--[mgNO3/l]Net greenhouse gas removals from LULUCF (9)4 231-       4 994-       7 179-       7 211-       7 226-       -           256 077-     240 984-     [Kt CO2-eq]SlovakiaEU-27SlovakiaEU-27SlovakiaEU-27SlovakiaEU-27 
 
 
 
  
 
FAIRNESS 
ANNEX 10: LABOUR MARKET 

and 

long-term 

Despite the strong performance of Slovakia’s 
labour  market,  structural  challenges  are 
having 
on 
detrimental 
a 
impact 
economic  growth. 
competitiveness  and 
Positive labour-market developments hide regional 
disparities,  while 
youth 
unemployment  remain  high.  The  labour  market  is 
also  hampered  by  an  ageing  population,  net 
emigration  of  talent  and  inactivity  among  certain 
ethnic  groups.  If  we  are  to  achieve  a  more 
labour  market  and  boost  economic 
inclusive 
growth,  key  challenges  include:  i)  enhancing  job 
opportunities,  ii)  addressing  skill  mismatches  iii) 
strengthening 
iv) 
encouraging  underrepresented  groups  to  enter 
work and v) better preparation for the transition to 
work. 

education 

training 

and 

The labour market is performing well overall, 
but  challenges  persist.  The  employment  rate 
stood  at  78.1%  in  2024, remaining  above the  EU 
average (75.8%) and exceeding Slovakia’s national 
(76.5%).  However,  regional 
target  for  2030 
disparities  remain:  in  2023,  in  eastern  Slovakia 
only  71.6%  of  the  working-age  population  was 
employed compared to 85.8% in the capital region. 
The unemployment rate reached a historically low 
level, 5% in Q1-2025 (vs 5.8% for the EU) (208). At 
the same time, spending on unemployment benefit 
accounted  for  0.63%  of  gross  domestic  product, 
the  highest  among  the  Visegrad  countries  (vs 
1.05%  EU  average).  Regional  disparities  are  also 
clear  in  the  availability  of  basic  services,  decent 
housing, educational outcomes and higher poverty 
rates.  The  marginalised  Roma  population 
is 
disproportionately affected by these disparities. 

Despite  signs  that  shortages  in  the  labour 
market  are  easing,  the  problem  is  still 
apparent  in  certain  sectors.  The  job-vacancy 
rate  dropped  to  1.2%  in  Q3-2024,  which  was 
higher  than  its  pre-pandemic  level  (1.0%  in  Q4-
2019 and 0.7% in Q4-2020) but far below the EU 
average  of  2.3%.  In  2024,  Slovakia’s  job  vacancy 
rate  in  transformation  sectors  was  0.8%  (EU: 
1.8%)  in  manufacturing,  3.6%  (EU:  1.7%)  in 
electricity,  gas  steam  and  air-conditioning  supply, 
1.0%  (EU:  1.6%)  in  water  supply  and  waste 

(208) Eurostat - employment and unemployment annual statistics 

recreation; 

entertainment  and 

management, 0.4% (EU: 3.1%) in construction, and 
2.1%  (2.2%)  in  transportation  and  storage.  The 
occupational groups with the highest occurrence of 
shortage  occupations  were:  stationary  plant  and 
machine  operators,  building  and  related  trades 
workers  (excluding  electricians)  and  drivers  and 
mobile plant operators  (209). Despite relatively low 
job vacancy rates in their sectors, the proportion of 
employers  who  reported  labour  shortages  as  one 
of  the  main  factors  limiting  their  production  was 
slightly  above  the  EU  average  in  construction 
(31%  in  Q4-2024),  industry  (23%),  and  services 
(29%)  (210).  High  vacancy  rates  were  recorded  in 
human health and social work activities; education; 
public 
arts, 
administration  and  defence;  compulsory  social 
security;  administrative  and  support  services  (211). 
Labour market slack (212) decreased from 7.2% to 
6.8% between Q3-2023 and Q3-2024, well below 
the EU average (10.9%). The fall in labour market 
slack  was  driven  mainly  by  a  decrease  in  the 
proportion  of  unemployed  people.  Slovakia  has 
moderate  skills  mismatches,  with  some 
variation  by  sector.  The  skills-mismatch  (213) 
rate  has  remained  approximately  unchanged  in 
2023  compared  to  2022,  at  approximately  21 
points  and  slightly  above  the  EU  average  (19.6 
points). In 2023, 22.9% of workers with a higher-
employed 
education 
in 
occupations 
require  such  a 
qualification.  This  proportion  was  close  to  the  EU 
average  but  varied  between  sectors.  The  over-
qualification  rate  is  particularly  high  in  public 
administration,  defence  and  compulsory  social 
security,  in  which  it  reaches  35.9%  compared  to 
the  EU  average  of  24.2%.  For instance,  the  share 

qualification  was 
that  did  not 

(209) Eurostat, Labour Market Information: Slovakia - European 

Union 

(210) ECFIN European Business and Consumer Surveys 

(211) Eurostat, Labour Market Information: Slovakia - European 

Union 

(212) The labour market slack is the underutilisation of labour 

resources, including unemployment, underemployment, and 
those available for work but not actively seeking 
employment.  

(213) Skills mismatch is the discrepancy between workers' skills 

and labour market needs. It is not only a problem 
encountered by jobseekers; it also affects employees 
working in positions below their levels of qualification or 
outside their fields of study, and concerns some groups of 
older workers that face difficulties in keeping their skills up 
to date. 

82 

 
 
 
 
 
 
 
 
of  over-qualified  workers 
in  the  construction 
sector,  at  14.4%,  is  the  third  lowest  in  the 
European Union.  

of 

for 

The  2023  OECD  programme 
the 
adult 
assessment 
international 
competencies  (PIAAC)  reported  substantial 
skill  losses  among  adults  (see  Annex  12). 
Over half of businesses state that their workforce 
has some degree of skill gap (54%) (214). Slovakia 
is  affected  heavily  by  automation,  a  trend  that  is 
set  to continue. It would be beneficial to continue 
reskilling 
to  provide  more  upskilling  and 
opportunities  to  an 
increasing  share  of  the 
population. 

Graph A10.1: Key rates: activity, unemployment, 
long-term unemployment, youth unemployment, 
NEETs 

(1) Activity rate and Employment rate (% of population), total, 
ages 20-64 
Unemployment rate and long-term unemployment rate (% of 
labour force), total, ages 15-74 
Youth unemployment rate (% of labour force), total, ages 15-
24 
NEET: Not in employment, education or training (% of 
population), total, ages 15-29 
Source: Eurostat, LFS [lfsi_emp_a, une_rt_a, edat_lfse_20, 
une_ltu_a] 

Long-term 
youth 
unemployment  rates  remain  high.  Long-term 

unemployment 

and 

(214) OECD (2024), PIAAC Employer Module, Do Adults Have the 
Skills They Need to Thrive in a Changing World?: Survey of 
Adult Skills 2023, OECD Skills Studies, OECD Publishing, Paris, 
https://doi.org/10.1787/b263dc5d-en, p. 175 

83 

The 

(age 

youth 

group 

training 

unemployed  people  accounted  for  almost  two 
thirds  of  jobseekers  in  2023  (65.1%  vs  EU: 
35%)(215).  In  2024,  the  long-term  unemployed 
(EU:  1.9%)  among  all 
represented  3.5% 
unemployed.  Nearly  half 
of  all 
(46.5%) 
unemployed people have been looking for a job for 
two years or more. Many women and marginalised 
Roma  communities  are  not  active  in  the  labour 
market. 
15-24) 
unemployment rate in Slovakia was 16.4% in Q1-
2025  (216),  well  above  the  EU  average  of  14.5%. 
in 
The  proportion  of  young  people  not 
(NEETs) 
employment,  education  or 
improved, falling from 12.3% in 2022 to 11.2% in 
2023.  The  ESF+  has  been  funding  activities  to 
reduce  the  long-term  unemployment  rate  (in  the 
form  of  Programme  Slovakia  2021-2027).  A 
budget  of  EUR 641 million  has  been  assigned  in 
the  form  of  tailored-made  and  individualised 
support  to  disadvantaged  jobseekers.  To  reduce 
youth unemployment, Slovakia adopted a national 
youth  guarantee  plan  in  2022,  which  includes 
measures  such  as:  i)  individualised  counselling,  ii) 
mentoring,  iii)  an  information  campaign,  iv)  tools 
jobseekers,  v) 
for 
development and assessment of further education 
and skills (digital, green and entrepreneurial skills), 
and  vi)  support  for 
job  creation,  graduate 
traineeships and self-employment.   

the  profiling  of  young 

it 

is  narrowing, 

Lower-skilled  workers,  young  people  and 
marginalised  Roma  communities  are  often 
inactive  on  the  labour  market.  Although  the 
gap  in  employment  between  persons  with  and 
without  disabilities 
remains 
significant at 22.1 percentage points (pps) (vs the 
EU average of 21.5 pps in 2022). Slovakia has not 
yet  set  an  employment  target  for  persons  with 
disabilities.  A 
third  of  young  persons  with 
disabilities  is  in  the  NEETs  category.  Slovakia  has 
one  of  the  highest  unemployment  rates  for  low-
skilled young people in the EU. The unemployment 
rate  among  people  from  disadvantaged  groups, 
such as the marginalised Roma communities, rose 
from 44.3% in 2020 to 53.4% in 2022 (more than 
double  the  EU  average  of  19%).  Moreover,  the 
share  of  young  Roma  NEETs  was  65%  in  2020, 

(215) The long-term unemployment rate represents the percentage 
of people unemployed for 12 months or more within the 
labour force. 

(216) Eurostat, Unemployment rate by sex - age group 15-24, 

https://ec.europa.eu/eurostat/databrowser/view/teilm021/def
ault/table?lang=en&category=t_labour.t_employ.t_lfsi.t_une 

7475767778798081828305101520253035402009201020112012201320142015201620172018201920202021202220232024%%SKActivity rate 20-64 (rhs)Unemployment rate 15-74 (lhs)Long-term unemployment rate 15-74 (lhs)Youth unemployment rate 15-24 (lhs)NEET rate 15-29 (lhs) 
   
 
 
to 

compared to 14% in 2020 in the overall age group 
(15-24);  77%  of  young  Roma  women  are  not  in 
work,  education  or  further  training  compared  to 
52%  of  young  Roma  men  (217).  The  factors 
contributing 
the 
labour 
marginalised  Roma  population  on  the 
market  include  i)  lack  of  job  opportunities,  ii) 
widespread  discrimination,  iii)  social  exclusion,  iv) 
high  rates  of  early  school  leaving,  and  v)  lack  of 
access  to  basic  services  such  as  water,  sanitation 
and decent housing.  

inactivity  of 

the  high 

the  gender  employment  gap 

is 
While 
relatively  low,  Slovakia  has  one  of  the 
highest  gender  pay gaps  in  the  EU. With  59.9 
points  out  of  100,  Slovakia  ranks  low  on  the 
Gender  Equality  Index  2024  (218),  which  is  11.1 
points below the EU average. Although the gender 
employment  gap  is  relatively  low  (7.7  pps  vs  EU: 
10.2  pps),  the  gender  wage  gap  is  significant  for 
women (aged above 30) with childcare duties. The 
difference between average gross hourly earnings 
of male and female paid employees was 17.7% in 
2022  (vs  EU  average  12.7%).  Caring  duties  and 
household  work  are  not  shared  equally  between 
women and men: (most of these tasks are done by 
women) (219). The motherhood penalty, i.e. the loss 
in lifetime earnings experienced by women raising 
children, is one of the main  causes of the gender 
pay gap. Increasing the availability of high quality 
and  affordable  childcare  would  help  keep  more 
women in work. In contrast with kindergartens for 
children  aged  3-6,  which  benefited  greatly  from 
the  recovery  and  resilience  plan  (RRP),  Slovakia 
has one of the lowest enrolment rates of children 
under  the  age  of  3  in  formal  childcare  (5.1%  in 
2024  vs  EU:  39.2%  in  2024)(220).  Some  progress 
has been made in increasing the participation rate 
for  the  under  3s  (increase  from  1%  in  2023  to 
5.1%  in  2024),  bringing  Slovakia  closer  to  its 
commitment to increase the enrolment rate based 
on the Barcelona target (5.8%).  

Increasing  the  availability  of  childcare  for 
children  under  the  age  of  3  and  increasing 
flexible working arrangements, such as part-
time  work,  to  support  women  and  parents 

(217) The social and employment situation of Roma communities 
in Slovakia, Study requested by the EMPL committee, 2020 

(218) The data for 2024 Index is mostly from 2022. 

(219) The Gender Equality (EIGE) index, 2023 

(220) Social Scoreboard - Eurostat data 

84 

with  small  children are  key.  Maternity leave in 
Slovakia (34 weeks), combined with the possibility 
of parental leave until the child turns three, is long 
compared  to  other  countries.  Extended  maternity 
leave  may  unintentionally  affect  women's 
earnings.  Although  longer  leaves  are  associated 
with  higher  wage  gaps  (though  not  statistically 
significant),  higher  nursery  attendance  slightly 
lowers  gaps,  highlighting  the  importance  of  early 
childcare  services  (221).  Only  approx.  6%  of  jobs 
available  on  the  Slovak  labour  market  are  part-
time  and  the  legislation  in  this  area  is  weak.  In 
2024, the part-time employment represented only 
3.3% (222), with women reaching higher rates than 
men  (5%  vs  1.8%  men).  Employers  are  often  not 
willing to create short-term work contracts due to 
high taxation of part-time work compared to other 
EU  countries;  often  part-time  is  involuntary  not 
ensuring basic living cost. 

the 

is  ageing  rapidly, 
Slovakia’s  population 
posing  a 
country’s 
to 
challenge 
competitiveness.  The  population  has  been 
decreasing  since  2020  (223).  Additionally,  between 
2019  and  2050,  the  old-age  dependency  ratio  of 
Slovakia  is  projected  to  increase  at  a  particularly 
rapid  pace,  with  the  rate  in  2050  projected  to  be 
2.2 times that of 2019 (224).  This is in part driven 
by the structural emigration of young people. This 
increases  regional  disparities  and  aggravates  the 
shortage  of  skilled  labour,  especially  in  sectors 
such  as  healthcare  and  education,  which  are 
already understaffed. Labour shortages, which are 
set to continue, show the benefits of measures to 
encourage  people  currently  outside  the  labour 
market into work.  

Real  wages  rebounded  in  2024,  but  the  real 
growth  between  2022-2025  was  one  of  the 
lowest in the EU. Real wages increased by 3.4% 

(221) Gender Wage Gaps in Slovakia and Europe, Policy Brief 

17/2024, https://nbs.sk/dokument/3daf4133-e255-41f2-
b2f6-c4ca336a5c72/stiahnut?force=false 

(222) Eurostat, https://ec.europa.eu/eurostat/statistics-
explained/index.php?title=Part-time_and_full-
time_employment_-_statistics 

(223) Eurostat - Population change - Demographic balance and 

crude rates at national level 

(224) Eurostat - https://ec.europa.eu/eurostat/statistics-
explained/index.php?title=Ageing_Europe_-
_statistics_on_population_developments 

 
 
 
 
in  2024  and  are  forecast  to  increase  by  0.7%  in 
2025,  following  significant  losses  in  2022  and 
2023  (225).  Real  wage  growth  is    constrained  by 
persistently  high  inflation,  which  is  forecast  to  be 
among  the  highest  in  the  euro  area.  The  loss  of 
purchasing  power  experienced  by  households 
between  2021  and  2023  contributed  to  a 
significant  decline 
real  gross  disposable 
household income. The consolidation package that 
took  effect  in  January  2025  included  an  increase 
in VAT rates, directly affecting consumers.  

in 

Graph A10.2: Youth: in education and training, 
employment rate, unemployment rate, 
unemployment-to-population ratio, NEET 

Source: Eurostat, LFS [edat_lfse_18, lfsi_emp_a, une_rt_a, 
lfsi_act_a, edat_lfse_20] 

towards 

electromobility. 

The  workforce  lacks  digital  skills  and  ICT 
specialists,  posing  a  challenge  to  the 
transition 
The 
employment rate of ICT specialists (percentage of 
total  employment)  in  Slovakia  reached  4.6%  in 
2024  (vs  EU:  5.0%).  However,  the  proportion  of 
people  with  basic  digital  skills  fell  in  2023 
compared  to  2022.  The  share  of  individuals  with 
at  least  basic  digital  skills,  fell  from  55.2%  in 
2021  to  51.3%  in  2023  (below  55.6%  of  EU 

average in 2024). It would be beneficial to bolster 
efforts  to  meet  Slovakia’s  2030  Digital  Decade 
targets.  Slovakia’s  2030  target  for  basic  digital 
skills  is  below  that  of  the  EU  (70%  vs  80%  EU’s 
target).  In  terms  of  the  working  population,  the 
proportion  increased  to  60.5%  (aged  25  to  64), 
although this is still below the EU level of 64.7%.  

technologies 

to  modernise 

If  businesses  are 
their 
production  processes  and  service  delivery  it 
would  be  beneficial  to  improve  people’s 
digital  skills.  Slovakia  lags  behind  in  business 
(cloud,  data 
uptake  of  digital 
analytics  and  AI).  This  also  applies  to  the 
proportion of small and medium-sized enterprises 
(SMEs)  with  at  least  a  basic  level  of  digital 
intensity. ICT specialists in Slovakia make up 4.6% 
of  the  working  population  in  2024  (vs  4.2%  in 
2023),  slightly  below  the  EU  average  of  5%.  The 
proportion of female ICT specialists is low (17.4% 
vs EU average of 19.4%). To meet its target of 6% 
of  the  population  being  ICT  specialists  by  2030 
(the  EU  target  is  10%),  it  would  be  helpful  to 
strengthen initiatives in this area.  

share  of 

employees 

of 
transition 

sector  as  a 
(16.2% 
The 

Employment  in  Slovakia’s  energy-intensive 
industries  decreased  to  6.9%  in  2024  of 
employment  (3.5%  in  the  EU)  but  remains 
among the highest in the EU. Slovakia still has 
the  EU’s  highest proportion  of  employment  in the 
total 
automotive 
in 
manufacturing 
manufacturing). 
towards 
electromobility  represents  a  major  challenge  for 
the  country.  Moreover,  the  job-vacancy  rate  in 
construction, a key sector for the green transition, 
is  substantially  lower  than  the  EU  average  (0.4% 
vs 3.6% in EU in 2023). Moreover, 73% of SMEs in 
the  sector  reported  that  skills  shortages  are 
holding  them  back  in  general  business  activities 
(226).  According  to  the  European  Labour  Authority 
(227),  labour  shortages  were  reported  in  2023  in 
many  occupations  that  required  specific  skills  or 
knowledge  for  the  green  transition  (228),  including 

(225) For nominal wage growth, pay per employee is considered. It 
includes: i) Wages and salaries payable in cash or in kind; 
and ii) Social contributions payable by employers. For real 
gross wages, the deflator used is HICP. Real wages using this 
deflator then can differ from real wages shown in AMECO 
(that uses private consumption as deflator). Data for 2024 
and 2025 are based on the European Commission Autumn 
2024 economic forecast. 

(226) Eurobarometer on skills shortages, recruitment and retention 

strategies in small and medium-sized enterprises. 

(227) 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. 

(228) Skills and knowledge requirements are based on the 

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

85 

010203040506070800510152025303540200720082009201020112012201320142015201620172018201920202021202220232024%%#REF!Unemployment rate (lhs)Unemployment ratio (lhs)NEET (lhs)In education, training (rhs)Employment rate (rhs) 
   
 
 
improvement  remains  limited  since  Slovakia  has 
one of the lowest proportions of part-time workers 
(3.3% in 2023) in the EU (17.1% in 2023).  

Additionally,  Slovakia’s  high 
proportion  of 
creates  a 
dependent  self-employed  people 
significant  risk  of  poor  working  conditions  and 
bogus  self-employment.  Slovakia  has  the  EU’s 
highest  proportion  of  self-employed  people  who 
characteristics  of  dependency 
display  both 
(economic  and  organisational).  Self-employed 
people  can  opt  out  from  social  contribution 
schemes  and  pay  six  times  less  in  tax  and  social 
contributions  for  the  first year  of  activity  and  2.3 
times less for subsequent years compared to other 
workers,  which  has  a  significant  impact  on  the 
state’s  taxation  and  social  security  revenue.  The 
main causes of bogus self-employment are: i) the 
desire of firms to circumvent the legal obligations 
of  dependent  employment 
(e.g. 
legislation, 
minimum  wages,  working 
redundancy  protection),  ii)  the  gap  in  taxation 
between the employment and self-employment, iii) 
the rise in gig and platform work, iv) complex sub-
contracting chains and v) the lack of a legal clear 
distinction  between  employment  and 
self-
employment. 

relationships 
time 

Graph A10.3: Employment by type (permanent, 
temporary, self-employed), year-on-year changes 

(1) Employment (thousand), total, ages 20-64, year-on-year 
change based on non-seasonally adjusted data. Self 
employment is defined as the total of self-employed persons 
and contributing family workers.. 
Source: Eurostat, LFS [lfsq_egaps, lfsq_etgaed] 

building  and 
workers and house builders. 

related  electricians, 

insulation 

Boosting  digital  skills  helps  older  people 
access the labour market and prevents long-
term  unemployment.    Older  people  are  more 
likely  to  become  long-term  unemployed.  In  2023, 
74%  of  unemployed  older  individuals  were  long-
term unemployed, which is the highest rate in the 
EU. Older people with lower levels of qualification 
have  worse  labour  market  outcomes  and  more 
challenging  working  conditions.  In  2023,  EU-27 
figures  for  employment  among  older  individuals 
with lower educational qualifications was 27.6 pps 
below 
those  with  post-secondary  education, 
whereas in Slovakia the difference was more than 
40  pps.  Education  and  training  policies  –  ideally 
including  search  assistance  and  counselling  –  are 
among the most effective tools for promoting the 
employment of older workers.  

In  Slovakia  the  rate  of  transition  from 
unemployment to employment is much lower 
(below  10%  per  quarter)  than  in  countries 
with  high  training  levels  (transition  rate 
above  30%).  Boosting  the  capacity  of  public 
employment  services  would  be  beneficial  in  this 
context.  Digital  skills  can  help  people  obtain  jobs. 
Given  the  limited  digital  skills  of  older  adults  and 
the 
tools 
(especially 
the  COVID-19  pandemic), 
Slovakia  has  enacted  policies  to  improve  the 
digital  skills  of  older  people,  supported  by  the 
digital  decade  policy  programme,  with  funding 
from the Recovery and Resilience Facility.  

importance  of  digital 

increasing 

since 

Bogus  self-employment  remains  high.  The 
following  factors  increase  the  risk  of  in-work 
poverty:  being  self-employed,  having 
lower 
educational qualifications, working part-time or on 
a  temporary  contract  living  in  a  household  with 
low work intensity (229) and living with children. The 
rate  of  full-time  workers  in  Slovakia  increased 
from  4.2%  in  2019 to  9.3%  in  2023,  indicating  a 
rise  in  the  proportion  of  vulnerable  workers.  In 
contrast,  the  in-work  poverty  rate  of  part-time 
workers decreased from 16.4% in 2017 to 3.2% in 
this 
2023.  However, 

the  positive  effect  of 

(229) The work intensity of a household is the ratio of the total 

number of months that all working-age household members 
have worked during the income reference year and the total 
number of months the same household members 
theoretically could have worked in the same period. 

86 

-200-150-100-500501001502007-Q42008-Q42009-Q42010-Q42011-Q42012-Q42013-Q42014-Q42015-Q42016-Q42017-Q42018-Q42019-Q42020-Q42021-Q42022-Q42023-Q42024-Q4thsSKPermanent employeesTemporary employeesSelf employmentOverall 
 
  
ANNEX 11: SOCIAL POLICIES 

Despite  overall  good  social  conditions  in 
Slovakia,  the  risks  of  poverty  and  social 
exclusion  have  been 
increasing  almost 
among  all  age  groups  since  2020.  Significant 
challenges remain for the social inclusion of Roma 
and other vulnerable groups. Sustained efforts are 
needed  to  reach  the  national  poverty  reduction 
target by 2030.  

The  rate  of  poverty  and  social  exclusion 
remains  below 
the  EU  average,  but 
challenges  persist.  Although  the  at-risk-of-
poverty or social exclusion (AROPE) rate increased 
to  18.3%  in  2024  (from  17.6%  in  2023),  it 
remains  below  the  EU  average  (21%  in  2024). 
However,  the  share  of  people  living  in  severe 
material  and  social  deprivation  (SMSD)  increased 
to 7%, exceeding the EU average (6.8% in 2023). 
This was partly driven by persistently high inflation 
in Slovakia. The AROPE rate for people aged sixty-
five years or over rose by 2.1 pps, reaching 14% in 
2023. The depth of poverty is very high (29.9% vs 
EU: 23%) and in-work poverty increased by almost 
2 pps  between  2022  and  2023  (from  7.2%  to 
9.1%,  compared  to  8.3%  in  the  EU).  Mounting 
challenges related to poverty  and social  exclusion 
remain  due  to  limited  economic  opportunities  for 
underrepresented  groups  (long-term  unemployed, 
marginalised  Roma  communities,  young  people, 
mothers  with  young  children),  coupled  with 
restricted 
education, 
to 
employment,  and  social  services.  By  2030, 
Slovakia  aims  to  reduce  the  number  of  people 
experiencing poverty or social exclusion risks by at 
least  70 000  compared  to  the  2019 
level. 
However,  in  2023,  Slovakia  moved  away  from  its 
target  with  148 000  more  people  at-risk-of-
poverty  or  social  exclusion  (AROPE)  compared  to 
2019. 

health, 

access 

The risk of poverty or social exclusion among 
the  children  show  a  positive  decrease  but 
remain  relatively  high.  The  AROPE  rate  for 
children decreased from 25.3% in 2023 to 22.6% 
in  2024  (EU:  24.2%).  By  2030,  Slovakia  aims  to 
have  reduced  the  number  of  children  who 
experience  poverty  or  social  exclusion  by  21  000 
compared  to  207  000  in  2019.  To  mitigate  the 
impact  of  poverty  on  children,  Slovakia 
is 
implementing the European Child Guarantee (ECG). 
The  2024  implementation  report  shows  progress 
in  some  areas,  such  as  access  to  school  meals. 
The  number  of  children  benefiting  from  the  food 

subsidy  scheme  (provision  of  meals)  sharply 
increased  from  56 786  to  491 494  in  2023  (230). 
Quality  early  childhood  education  and  care  for 
children  under  three  would  be  beneficial  to 
enhance 
and 
educational 
outcomes 
to  work.  The 
incentivise  parents 
implementation of the ECG is supported by the EU 
cohesion  policy  funds  and  the  Recovery  and 
Resilience Facility. 

return 

their 

to 

House  prices  have  increased  strongly  over 
the  last  decade,  but  the  growth  in  house 
prices  has  slowed  down  recently.  Since  2015, 
house  prices  have  increased  by  around  70%  in 
nominal 
terms.  On  average,  house  prices 
decreased  by  0.2%  in  2023,  but  more  recent 
quarterly  data  show  a  rise  of  4.0%  in  Q2-2024 
year-on-year. The recent moderation follows years 
is  driven  by  the 
of  noticeable  growth  and 
adjustment 
rate 
to 
environment, as mortgage rates sharply rose from 
1.0%  in  2021  to  3.8%  in  2023.  Nonetheless, 
house  prices  are  estimated  to  be  overvalued  by 
10-15%. Building permits fell by a further 3.9% in 
2023, following a sharp drop of 16.2% in 2022. 

interest 

higher 

the 

Overall  housing  affordability  worsened  over 
the  past  decade  despite  an  increase  in  new 
housing  supply  Since  2015,  house  prices  have 
grown  slightly  above  the  pace  of  household’s 
incomes.  As  a  result,  there  are  major  concerns 
over the affordability of housing. The standardised 
house  price-to-income  ratio  increased  by  28% 
from  2015  to  2022  before  easing  in  2023,  with 
the  overall  growth  from  2015  to  2023  reaching 
7%. Taking into account the cost of mortgages, the 
borrowing  capacity  of  households  improved  over 
the past decade. The ratio of dwellings per capita 
has  remained broadly  unchanged  since  2015  and 
is  the  lowest  in  the  EU.  The  ratio  of  house 
completions  per  capita  has  increased  gradually 
since  2015  and  stands  close  to  the  EU  average. 
However, 
construction  has  been 
residential 
decreasing  since  2023.  Granted 
building permits have been decreasing as well and 
in  terms  of  m2  per  person  attains  one  of  the 
lowest  values  in  the  EU.  Slovakia’s  inefficient 
high 
by 
permitting 
administrative 
inadequate 
resources  at  the  municipal  level,  weigh  on  new 
housing  supply.  Additionally,  there  is  a  significant 

fragmentation  and 

procedures, 

residential 

driven 

(230)  Slovakia - 2024 Biennial report on the implementation of 

the Child Guarantee. 

87 

 
 
 
 
 
number  of  vacant  dwellings,  further  reduces  the 
supply  of  dwelling  available  for  purchase.  The 
supply  of  social  rental  housing 
low 
compared  to the  other  EU  average  and  the  share 
of population in need.  

is  very 

The challenges related to the affordability of 
housing,  the  shortage  of  social  rental 
inadequacy  of  housing 
housing  and  the 
allowances  require  more  targeted  support. 
Slovakia  struggles  with 
the  affordability  of 
housing  (231).  The  housing  cost  overburden  (232) 
increased  significantly  -  from  2.5%  in  2022  to 
5.9%  in  2023  and  6.4%  in  2024.  It  was  much 
higher  among  households  experiencing  poverty 
risks  (34.1%  vs  EU:  33.5%).  In  2023,  36.1%  of 
people who live in rented housing (both at market 
prices  and  subsidised  prices)  lived  below  the 
poverty  threshold,  compared  to  13.1%  of  people 
living  in  owner-occupied  housing,  and  14.1%  of 
the  total  population  (233).  The  municipal  rental 
housing  stock  is  very  low.  Only  1.6%  (234)  of  the 
total  housing  stock is  allocated  as  social  housing. 
In  2022,  only  1.1%  of  all  newly  constructed 
apartment buildings were in public ownership (235). 
Slovakia has one of the highest shares of owner-
occupied  housing,  with  93.5%  of  the  population 
living in owner-occupied housing, compared to the 
EU  average  of  69.2%  in  2023.  The  government 
does  not  engage  in  building  or  purchasing  rental 
flats, but is responsible for the general framework 
and  support  mechanisms  of  the  rental  housing 
system.  Municipalities  are 
for 
developing  social  housing  for  rent;  however,  they 
encounter  challenges,  such  as  a  lack  of  available 
land  for  development  and  bureaucratic  obstacles 
in  applying  for  support.  The  reform  of  the  Public 
Procurement  Act  under  Slovakia’s  recovery  and 
resilience  plan  (RRP),  which  entered  into  force  in 
2022,  should  speed  up  procurement  procedures. 

responsible 

(231) Deloitte Property Index (Deloitte, 2024), developments in 

European reside  ntial markets. 

(232) The housing cost overburden rate measures housing 

affordability as the percentage of the population living in 
households where the total housing costs (‘net’ of housing 
allowances) represent more than 40% of disposable income 
(‘net’ of housing allowances). 

(233) DG EMPL ad hoc request for study to the Expert Network for 
Analytical Support in Social Policies, Social housing and 
housing affordability. 

(234) Eurostat 2022, Distribution of population by tenure 

status, type of household and income group - EU-SILC 

(235) Amnesty International (2024): Unattainable right to housing. 

Report on right to housing in Slovakia. Bratislava. 

Moreover, 
in  January  2025,  the  government 
the 
approved  a  directive  which  amended 
conditions  for  people  applying  to  rent  social 
housing. It also speeds up the approval of housing 
projects destined for rent (236). The requirement to 
have  no  debts  to  access  social  housing  hampers 
access  to  social  housing  for  the  most  deprived 
people. Housing  allowances  in  Slovakia  are  rather 
low  (237)  and  provided  solely  to 
low-income 
homeowners and tenants who qualify for ‘material 
need’ assistance (238). 

in  access 

this  group,  a  significant  share 

There are significant challenges in accessing 
social  protections 
for  Slovakia’s  non-
standard  workers  and  self-employed.  The 
country  has  a  lower  proportion  of  temporary 
contract  workers  (4.4%  vs  EU:  13.5%)  and  part-
time employees (3.8% vs EU: 18.6%), but a higher 
percentage of self-employed (12.3% vs EU: 9.4%). 
Within 
is 
(17%  vs  EU:  4%). 
economically  dependent 
Employees  on  ‘work  agreements  with  irregular 
income’  face  significant  gaps 
to 
unemployment,  sickness,  and  parental  benefits, 
with  negligible  take-up  (0.1%  in  2022).  Self-
employed  people  are  not  covered  by  accident 
benefits  and  opt-in  for  limited  unemployment 
(2.0%  take-up)  and  other  benefits 
including 
sickness and old-age insurance, with a take-up of 
58.8%  (239)  for  those  above  a  specific  income 
threshold.    The  effective  access  to  social  benefits 
receiving 
is 
benefits  at  4.5%  compared  to  the  EU  average  of 
12.7%,  and  only  10.2%  of  unemployed  people 
receiving benefits vs 52.4% in the EU. Short-term 
unemployed  benefits  are  also  lacking,  with  only 
30%  receiving  benefits,  standing  well  below  the 
EU  average  of  58%.  Unemployed  and  temporary 
contract  workers  face  high  deprivation  and 
poverty,  with  45.7%  and  53%  respectively,  which 
for  the  unemployed  exceeds  the  EU  averages  of 
38.3%  and  47.5%.  Temporary  workers  show  a 

low,  with  self-employed  people 

(236) Vláda spresnila podmienky pre záujemcov o štátne nájomné 
byty, cieľom je zefektívniť ich prideľovanie aj eliminovať 
prieťahy - SITA Reality 

(237) The housing allowance is intended to partially cover housing-
related costs and is provided in amounts depending on the 
number of household members. 

(238) In-Depth Review 2024 Slovakia. 

(239) Take up of 58.8% of self-employed meaning persons who 

opt-in (voluntary) or did not opt-out on sickness and pension 
insurance. Majority of these persons did not opt-out, 
meaning they were above income threshold. 

88 

 
 
 
23.9%  deprivation  rate.  Furthermore,  the  at-risk-
of-poverty rate among quasi-jobless households in 
Slovakia  stood  at  74.2%  in  2023,  compared  to 
61.2% in the EU-27. 

for 

limit  access  to  social 
Racial  prejudices 
Roma 
housing 
the  marginalised 
population.  Not  meeting  minimum 
income 
requirements  is  the  most  frequently  cited  reason 
for  rejecting  social  housing  applications.  This 
hinders the social inclusion of the Roma population 
in  particular.  The  approach  taken  by  the  capital 
city,  Bratislava,  is  an  example  of  sound  housing 
policy  and  could  be  scaled  up  to  national  level. 
Bratislava  established  a  strategy  to  increase  the 
supply  of  social  housing  for  rent.  Bratislava’s 
social  housing  policy  is  inclusive  and  open  to  all 
people in need. These new rules were approved in 
2024.  Bratislava  introduced  new  categories  of 
state-owned  flats  including  ‘accessible  housing 
with  support’,  aimed  at  the  most  vulnerable 
groups.  The  housing  stock  in  Slovakia  is  energy 
renovation  programmes  are 
inefficient.  Yet, 
planned.  New  measures  and 
investments  to 
support vulnerable households will be compiled in 
the  national  Social  Climate  Plan,  which  is  to  be 
submitted  to  the  Commission  by  June  2025, 
following a country-wide consultation. 

Graph A9.1: At-risk-of-poverty or social exclusion 
rate and its components (AROP, AROPE, SMSD, 
LWI) 

(1) AROPE: at-risk-of-poverty or social exclusion rate (% of 
total population). People wo are at-risk-or-poverty (AROP) 
and/or suffering from severe material and social deprivation 
(SMSD) and/or living in households with very low work 
intensity (LWI). 
Source: Eurostat, EU-SILC 

insufficiently  address 

Policies  addressing  energy  poverty  remain 
limited  and 
its 
structural  causes.  The  share  of  the  population 
which  is  unable  to  keep  their  homes  sufficiently 
warm is lower than EU average, 8.1% compared to 
the  EU  average  of  10.6% in  2023.  This  marks  an 
improvement  of  2.5 pps  since  2021.  Arrears  on 
utility  bills  have  increased,  by  7.2%  of individuals 
affected  in  2023,  an  increase  of  1.7 pps  from 
2021,  standing  higher  than  the  EU  average  of 
6.9%.  Structural  issues,  such  as  leaks,  damp,  or 
rot,  are  present  in  5.8%  of  housing,  which  is 
significantly lower than the EU average of 15.5%. 
The  government  has  implemented  several  social 
support  programmes  which  complement  energy 
efficiency  initiatives,  such  as  the  MunSEFF  and 
SlovSEFF programmes. These programmes provide 
financial assistance to energy efficiency projects in 
residential  buildings.  The 
municipalities  and 
government’s  actions  to  address  energy  poverty 
do  not  address  the  structural  causes  of  energy 
poverty.  However,  a  national  action  plan  to 
address  energy  poverty  is  being  prepared.  The 
strategy  aims  to  further 
integrate  measures 
targeting  vulnerable  households  and  improve  the 
overall  energy  efficiency  of  the  housing  stock.  In 

89 

024681012141618202015201620172018201920202021202220232024% of populationSKAt-risk-of-poverty-or-social-exclusion rateAt-risk-of-poverty rateSevere material and social deprivationPeople living in low work intensity households 
   
 
respect  to  transport  poverty,  the  share  of  people 
who  could  not  afford  a  car  was  10.5%  in  2023, 
above the EU average of 5.6%. The issue becomes 
alarming among low-income groups in Slovakia, as 
evidenced by the higher share of people at risk of 
poverty who cannot afford a car (32.4%) which is 
significantly  above  the  EU  average  (15.9%).  The 
fact  that  low-income  people  have  difficulties  to 
afford  a  car  in  Slovakia  is  confirmed  by  the  low 
share  of  individuals  at-risk  of  poverty  with  very 
high  expenditures  on  personal  transport  fuels 
(defined twice above the national median) which is 
at  10.4%,  and  it  is  significantly  below  the  EU 
average  of  18.2%  in  2024.   At  the  same  time, 
people’s  reliance  on  personal  cars  for  inland 
transport has increased over-time (from 77.4% in 
2011 to 79% in 2023).  

Access  to  healthcare  and  long-term  care 
services  shows  improvement  but  remains 
limited for vulnerable groups. In 2024, 1.6% of 
the population reported to have some unmet need 
for  medical  care  because  of  cost,  distance  or 
waiting  times.  This  figure  dropped  below  the  EU 
average (2.5%) (see Annex 14) (240), but challenges 
persist. The mortality rate among infants (5.6% in 
2023) remains among the highest in the EU (3.3% 
in 2023). The unmet medical needs were reported 
by  5.3%  of  people  in  the  lowest  income  quintile 
compared  with  2.2%  among  the  highest  income 
quintile  (241).  The  situation  is  similar  in  terms  of 
unmet  needs  in  the  long-term  care  sector,  where 
the  population  over  sixty-five  reporting  unmet 
needs  in  2019  was  50.9%  (EU:46.6%).  Slovakia 
has  some  of  the  highest  rates  of  mortality  from 
preventable  and  treatable  causes  in  the  EU  (242). 
Similarly, the cancer incidence in Slovakia is higher 
than the average across the EU and the mortality 

(240) OECD/European Commission, 2024: OECD Health at a 

Glance: Europe 2024. State of Health in the EU Cycle. Paris: 
OECD Publishing. 

(241) Ibidem. 

(242) State of Health in the EU Country Health Profile 2023, 

chrome-
extension://efaidnbmnnnibpcajpcglclefindmkaj/https://health.
ec.europa.eu/document/download/184d09e2-917b-4d9a-
9078-
a4a503e0e053_nl?filename=2023_chp_sk_english.pdf 

rate  remains  among  the highest  in the  EU  (243).  A 
substantial  number of deaths could be  avoided in 
Slovakia  through  public  health,  prevention  and 
healthcare interventions. 

Rural  and  minority  populations  face  the 
biggest  obstacles  in  accessing  healthcare, 
including the  marginalised  Roma  community. 
Almost  one-fifth  of  adult  homeless  people  who 
in  Bratislava,  do  not  have  a  general 
live 
(244).  Debts  on  health 
practitioner 
insurance 
contributions are the most common forms of debt 
among  the  homeless  population  in  Bratislava, 
affecting  22%  of  adult  homeless  people.  In  the 
2021 census, the country specifically identified the 
secondary homeless, who are defined as ‘residents 
temporary 
who 
accommodation  and  often  move  between 
accommodation,  such  as  a  shelter,  a  halfway 
house,  an  emergency  housing  facility,  or  reside  in 
national 
housing.’ 
non-conventional 
estimates  of  homelessness  stand  at  71 076 
people, representing 1.31% of the total population 
(2021),  of  which  39%  are  women  and  61%  are 
men (245). 

various 

Latest 

types 

use 

of 

Slovakia’s  healthcare  and  long-term  care 
services  continue  to  be  underfunded.  The 
ageing and declining population pose challenges to 
the sustainability of the healthcare and long-term 
care systems (see Annex 14). The RRP’s reform of 
integration  and  financing  of  long-term  social  and 
healthcare  introduces  a  new  financing  system  of 
social  services  –  a  personal  budget  that  should 
replace  a  large  number  of  different  contributions. 
into  force  might  be 
Nevertheless, 
postponed  with  one  year,  creating  a  pressure  for 
finding the necessary funds in the state budget.  

its  entry 

(243) Country Cancer Profile 2025, 

https://www.oecd.org/content/dam/oecd/en/publications/repor
ts/2025/02/eu-country-cancer-profile-slovak-republic-
2025_f32af3fd/e40472f4-en.pdf 

(244) Kválová, D., Turkovič, Z., Gerbery, D., Mičicová-Luptáková, M., 
2024: Záverečná správa zo sčítania ľudí bez domova v 
Bratislave v 2023 (Final report on counting homeless people 
in Bratislava in 2023). Bratislava: Institute for Labour and 
Family Research. 

(245) 

OECD Country Notes on Homelessness data. 

90 

 
 
 
 
 
 
ANNEX 12: EDUCATION AND SKILLS 

in  the 

labour  market 

A  low  enrolment  rate  in  early  childhood 
education and care (ECEC), a low proficiency 
of basic  skills  among  students  and adults, a 
low  number  of  STEM  graduates  and  skill 
limit 
mismatches 
Slovakia’s  competitiveness.  Weaknesses 
in 
skills  development  start  at  a  very  early  age  with 
low  participation  of  disadvantaged  children  in 
quality ECEC and continue with around one third of 
15-year-old  students  lacking  a  minimum  level  of 
proficiency  in  basic  skills  (mathematics,  reading 
and  science).  Enrolment  in  STEM-related  study 
programmes (246) is low and trending downwards. 

Enrolment  in  adult  learning  has  increased, 
but  varies  greatly  across  population  groups. 
Adults’  level  of  proficiency  in  literacy,  numeracy 
and  problem  solving  declined  between  2012-
2023.  Support  for  strengthening  basic  skills 
among  pupils  and  for  training  for  less  qualified 
adults  is  essential  to  match  the  demand  and 
supply  of  skills  in  the  labour  market.  Moreover,  a 
shortage  of  qualified  teachers  continues,  and 
pupils’  socio-economic  backgrounds  significantly 
and  negatively  affects 
their  upskilling  and 
employment  opportunities  later.  The  quality  of 
vocational  education  and  training  (VET)  should 
also  be  improved,  for  example  by  increasing 
pupils’ exposure to work-based learning. 

A  low  enrolment  rate  in  ECEC,  especially 
among  disadvantaged  children,  negatively 
impacts  foundational  learning  giving  rise  to 
inequalities.  The  participation  rate  of  children 
under  three  years  of  age  increased  to  5.1%  in 
2024  but  remains  among  the  lowest  in  the  EU 
(average  of  39.2%)  in  2024  (see  Annex  10).  For 
children aged three or over, the enrolment rate in 
ECEC  was  80.8%  in  2023,  compared  to  the  EU 
average  of  94.6% (247).  Recent  national  data 
showed  that  the  enrolment  rate  of  3  to  5-year 
olds  was  85.3%  in  2023.  However,  enrolment  is 
from  disadvantaged 
lower  among 
backgrounds (4), including for Roma children (33% 
in  2021,  Fundamental  Rights  Agency).  Under 
Slovakia’s  recovery  and  resilience  plan  (RRP), 
to 
substantial 
improve  access  to  ECEC  for  children  older  than 
three. 

investments  are  being  made 

children 

of 

life. 

In  2022,  33.2% 

Insufficient  basic  skills  among  students  is 
the  main  barrier  to  skills  development  later 
in 
students 
underperformed in mathematics, 35.4% in reading 
and 30.6% in science (EU averages: 29.5%, 26.2% 
and  24.2%  respectively),  which  are  among  the 
highest underachievement rates in the EU. Results 
differ  greatly  between  rural  and  urban  schools. 
Their  performance  gap  in  reading,  mathematics 
and  science  is  also  among  the  highest  in  the  EU, 
suggesting  challenges  linked  to  teaching  quality 
and  socio-economic  aspects.  A  recent  report  from 
that 
the  State  school 
memorisation  is  the  most  frequently  developed 
cognitive  ability  in  Slovak  schools  and  points  to 
alarming levels of absenteeism among pupils (248). 
The  report  also  notes  that  teaching  is  sometimes 
provided by unqualified teachers (for example, ICT 
was  taught  by  unqualified  teachers  in  48.6%  of 
the 
in 
2023/2024). 

inspectorate  shows 

lower  secondary 

surveyed 

schools 

from 

students 

of  48%,  OECD  Programme 

Most 
disadvantaged 
backgrounds lack basic skills. More than six out 
from  disadvantaged  socio-
of  10  students 
economic backgrounds did not achieve a minimum 
level  of  proficiency  in  mathematics  (62.6%  vs  EU 
for 
average 
International  Student  Assessment  (PISA)  2022). 
This is particularly concerning in the context of the 
rising  share  of  children  living  in  severe  material 
and  social  deprivation (249).  Around  65%  of  Roma 
children aged 6-15 study in schools where most or 
all  their  schoolmates  are  Roma  (FRA,  2021).  In 
2023,  the  Commission  referred  Slovakia  to  the 
Court of Justice of the European Union for failing 
to effectively address the issue, thereby breaching 
the Racial Equality Directive. 

Slovakia  has  increased  efforts  to  reduce 
segregation.  The  State  school 
inspectorate’s 
report (250) pointed out persistent challenges linked 
to the slow implementation of inclusive education 
despite policy efforts. The Ministry of Education is 
implementing 
and 
monitoring  the  implementation  of  desegregation 

projects (251) 

national 

(248) Správa o stave a úrovni výchovy a vzdelávania v školách a 
školských zariadeniach v Slovenskej republike v školskom 
roku. 

(249) Eurostat: [ilc_mdsd11]. 

(246) Science, Technology, Engineering, Mathematics. 

(250) Based on findings in 11 inclusive primary schools in 2024. 

(247) Eurostat: educ_uoe_enra21. 

(251) ‘Opportunity for all’, ‘Support for Educational Opportunities’ 

91 

 
 
 
 
 
 
measures at schools. It also plans to evaluate the 
implementation  of  ‘desegregation  standards’  in 
2025.  Overcoming  inequalities  in  primary  and 
secondary  education 
increasing 
enrolment in higher education and to reducing the 
number of adults who lack the necessary skills to 
participate in lifelong learning. 

is  key 

to 

Graph A12.1: Early school leavers, not in 
education, employment or training (NEET) and 
tertiary attainment 

Source: Eurostat, LFS 
[edat_lfse_14,edat_lfse_20,edat_lfse_07] 

and 

skills 

Increasing  the  share  of  top  performers  in 
basic 
performance  would 
strengthen the pool for innovative talent. Top 
performance  among  15-year-olds  declined  and  it 
is well below the EU average (9.5% vs 12.59%) in 
all  three  basic  skills  domains.  In  reading,  it  is 
among the lowest in the EU  (3.4% vs EU average 
of  6.5%).  Slovak  pupils  were  also  weaker  in 
creative thinking, with a top  performance  rate of 
21%  (vs  EU-23  average  of  25.1%  in  2022.) 
Widespread 
in  Slovakia 
confirmed  the  worsening  of  key  competences  in 
basic  schools  (FinQ,  2023), 
including  among 
children  aged  6-10.  Students’  basic  skills  may 
deteriorate  further  in  the  future  if  no  action  is 
taken.  Slovakia’s  declining  performance  in  PISA 
2022  can  be  partially  attributed  to  the  long-term 
underfunding of the education system and school 
closures  during 
teacher 
shortages  and  low  attractiveness  of  the  teaching 
profession also play a part. 

the  pandemic,  but 

innovative 

testing 

to 

improve  education 

Slovakia is rolling out a reform of the school 
curriculum, the success of which will depend 
on how teachers are prepared and supported 
in  implementing  it.  The  reform  will  be  fully 
implemented  in  the  2026/2027  school  year.  The 
Ministry of Education also announced a package of 
89 measures 
(‘Velvet 
revolution  in  education,’  2024).  However,  the 
shortage of teachers and increasing demands can 
hinder 
is 
estimated that in the next school year there will be 
a shortage of around 2 000 teachers, in particular 
maths, science and IT teachers. This poses a risk to 
the  ability  to  provide  quality  STEM  education  and 
subsequently  foster  interest  among  students  in 
pursuing STEM-related higher education (252). 

implementation. 

their  effective 

It 

The  low  attractiveness  of  the  profession,  
the  quality  of  the  degree  programmes  for 
teachers  and  in-service  training  affects  the 
quality  of  education.  More  effective  and  better 
targeted  support  for  teachers  and 
improved 
pedagogical approaches are needed to boost basic 
skills.  Reading  literacy  could  be  improved  for 
example  by  better  promoting  pre-reading  literacy 
in  preschool,  mainstreaming 
literacy 
teaching  across  subjects  and  providing  targeted 
learning  support  to  children  from  vulnerable 
groups  or  to  those  who  are  lagging  behind.  Also, 
additional  support  to  the  extracurricular  activities 
could strengthen basic and STEM-related skills. 

reading 

level  of  basic  skills  continues 

Low 
in 
adulthood.  In  2023,  the  PIIAC  survey  of  adult 
skills recorded substantial age-related skills losses 
among adults (including young adults aged 27-34) 
in 
literacy.  24%  of  the  Slovak  adults  can 
understand  only  short  and  simple  sentences. 
Slovak  adults  are  below  the  OECD  average  in  all 
three skills measured: literacy, numeracy, adaptive 
problem solving. 36% of workers hold their highest 
qualification not in the field which is most relevant 
to  their  job. Over  half  of  businesses  in  Slovakia 
reported that their workforce has some degree of 
skill gap (54%) (253). 

Slovakia  has  a  relatively  large  vocational 
education  and  training  (VET)  offer,  but  its 

(252) https://www.edujobs.sk/praca. 

(253) OECD (2024), PIAAC Employer Module, Do Adults Have the 
Skills They Need to Thrive in a Changing World?: Survey of 
Adult Skills 2023, OECD Skills Studies, OECD Publishing, Paris, 
p. 175. 

92 

0510152025303540450246810121416200720082009201020112012201320142015201620172018201920202021202220232024%%SKTertiary education 30-34 (rhs)NEET 15-24 (lhs)Early school leavers 18-24 (lhs) 
   
 
low  number  of  enrolments  in  STEM  studies  is 
linked to challenges at school  level. In 2023, only 
11.6%  of  graduates  decided  on  mathematics  in 
the Matura final examination. 

Addressing gender gaps helps to increase the 
enrolment in  STEM  studies.  In  2022, the  share 
of  male  STEM  enrolments  (as  a  share  of  total 
ISCED 5-8 enrolments) was 15.2% in Slovakia (EU-
27 average: 18.5%). The share of female ISCED 5-
-8  enrolments  was  only  6.6%  (EU-27  average: 
8.6%).    The  share  of  females  in  ICT  enrolments 
(ISCED  5-8)  was  among  the  lowest  in  the  EU 
(15.1%  in  Slovakia  vs  20.2%  in  the  EU)  in  2022. 
The  proportion  of  graduates  in  ICT  (4.8%)  was 
slightly  higher  in  Slovakia  than  the  EU  average 
(4.5%)  in  2022  (DESI,  2024).  However,  only  0.8% 
of  Slovak  females  graduate  in  ICT  (EU:  1%). 
Support  for  teachers  to  develop  learning  tools, 
video 
innovative  approaches, 
including  using  artificial  intelligence,  could  help 
boost  participation  in  STEM  in  Slovakia.  Updating 
secondary 
introducing 
additional support (human and financial resources) 
to the extracurricular activities (in maths, reading, 
STEM  and  digital  competences)  would  improve 
motivation and quality. 

curricula  and 

tutorials  and 

school 

There is scope to substantially improve green 
competencies  and  skills.  Slovak  students’ 
knowledge  of  sustainable  development  issues  is 
below  the  average  of  the  17  EU  countries 
surveyed,  and 
in  students’ 
the  difference 
knowledge  in  this  area  when  linked  to  parental 
educational  background  is  the  highest  in  the 
EU-17. Although school leaders have a key role in 
including sustainability in school practice, there are 
no specific provisions supporting their leadership in 
relation to sustainability. 

Graph A12.2: Change in the number of students 
enrolled in tertiary education and in STEM fields 
(ISCED 5-8) in Slovakia, 2017-2023 

potential  for  the  labour  market  is  not  fully 
exploited. In 2023, 43% of 15-19-year-olds were 
enrolled in secondary VET. Half of 25-34-year-olds 
have  a  VET  qualification  as  their  highest  level  of 
attainment  (EU  average:  60%  in  2022 (254).  In 
2023,  almost  eight  out  of  10  (76.5%)  of  recent 
VET graduates were in employment, below the EU 
average of 81%. On average, VET graduates earn 
about  12%  more  than  those  without  upper 
secondary education attainment, whereas workers 
with  finished  general  secondary  attainment  earn 
13% more. Nevertheless, Slovakia lags in exposing 
students  to  work-based  learning  (62.1%  vs  EU 
average  of  64.5%).  Improving  the  quality  of 
curricula and teaching, and ensuring more flexible 
entry  paths  for  professionals  into  VET  teaching 
profession would address skills mismatches. 

The  European  Social  Fund  Plus 
(ESF+) 
supports  improvements  in  VET.  In  2024,  the 
Ministry  of  Education  launched  a  national  project 
aiming  to  increase  the  quality,  flexibility  and 
adaptability  of  VET  and 
introducing  regional 
quality  coordinators  (EUR 7 million).  The  project 
also  develops  a  national  strategy  for  quality 
assurance and plans to publish an impact analysis 
in 2026.. 

to 

Tertiary  education  struggles  to  supply  the 
skills  needed  by  the  economy.  The  RRP 
supports  reforms  aimed  at  improving  the  quality 
of higher education. For example in 2024, in total 
EUR 80.4 million  was  allocated  to  universities, 
linked 
their  performance  on  14 specific 
indicators. Only 37.2% of Slovaks aged 25-34 had 
a  tertiary  education  degree  in  2024  (EU  average: 
44.2%).  The  share  of  students  enrolled  in  STEM 
programmes (21.8%)  was significantly lower than 
the  EU  average  (27.1%) 
in  2022,  and  had 
decreased  compared  to  2017  (22.8%).  Around 
38.8%  of  all  medium-level  VET  pupils  were 
enrolled in medium-level VET STEM fields in 2022 
(EU-27  average:  36.2%).  The  number  of  PhD 
students in STEM studies decreased between 2017 
and  2022 (255),  although,  as  a  share  of  total 
International  Standard  Classification  of  Education 
(ISCED) level 5-8 enrolments, the share of enrolled 
same 
students 
(1.7%). Between  2010  and  2023,  the  number  of 
STEM graduates declined in Slovakia by 46%. The 

remained 

STEM 

the 

in 

(254) Eurostat, UOE, OECD and additional collection for the other 

EHEA countries 

(255) educ_uoe_entr03_custom_15132925. 

Source: Eurostat: educ_uoe_enrt03 

93 

020.00040.00060.00080.000100.000120.000140.000160.00005.00010.00015.00020.00025.0002017201820192020202120222023Overall number of students enrolled in tertiary educationNumber of students enrolled by area of studyStudents enrolled in tertiary educationNatural scienceEngineeringICT 
 
   
the  EU  average  (39.5%).  At  the  same  time, 
rates  vary  significantly  across 
participation 
population groups and sectors. People outside the 
labour market (10%), the unemployed (10.5%) and 
those  who  did  not  complete  upper  secondary 
education  (18.6%)  show  much  lower  engagement 
rates. On the other hand, employees’ participation 
in  education  and  training 
in  energy-intensive 
industries  was  13.82%  in  2024  (EU  average: 
11.67%).  

Slovakia  adopted  a  new 
law  on  adult 
education and an action plan for 2025-2027. 
It  promotes  a  personalised  approach  to  adult 
learning  and  introduces  new  elements,  such  as 
individual  learning  accounts  and  validation  of 
previous  learning  outcomes.  However,  the  law 
does  not  allow  for  entitlements  to  be  transferred 
between  financial  years  and  does  not  provide  for 
paid  training 
leave,  contrary  to  the  Council 
recommendation on individual learning accounts. 

to 

for 

funding 

skilled  workers  and 

Training  is  crucial  to  address  the  shortages 
improve 
of 
competitiveness, resilience and fairness. 68% 
of Slovak SMEs in 2023 reported that it was very 
difficult  to  find  qualified  employees  (EU  average: 
52%).  Similarly,  42%  of  SMEs  (EU  average:  21%) 
said  that  keeping  qualified  employees  was  very 
difficult.  ESF+ 
labour  market 
development and skills forecasting is managed by 
the  Alliance  of  Sectoral  Councils,  comprising  25 
sectoral  councils,  which  cover  the  main  industries 
and  prepare  the  national  employment  standards. 
The Public Employment Service supports reskilling 
necessary  for  the  labour  market  of  young  people 
(and  other 
in  employment, 
education  or  training.  While  most  SMEs  do  not 
expect skills shortages to affect their ability to use 
IT  technologies  in  their  operations  (81%  vs  EU 
average  of  75%),  they  report  an 
increased 
workload  for  existing  staff,  loss  of  sales  and 
reduced  profitability  and  growth  due  to  skill 
shortages. 

job  seekers)  not 

Digital  skills  still  need  to  be  significantly 
strengthened. The proportion of Slovaks aged 16 
to  74  who  have  at  least  basic  digital  skills 
(51.31%  in  2023)  is  below  the  EU  average 
(55.56%). Yet,  70.58%  of young  Slovaks  aged  16 
to 24 have at least basic digital skills, which is in 
line  with  the  EU  average.  The  share  of  students 
enrolled  in  ICT  in  Slovakia  in  2022  was  5.7%  of 
the  total  tertiary  enrolments  (EU  average:  5.2%). 
Despite ongoing digitalisation of schools, the level 
of  remote  access  to  the  school  network  from 
home  is  among  the  lowest  in  the  EU  (3%  in 
Slovakia vs EU average at 18%). Moreover, Slovak 
and 
students’ 
information 
in 
2023  in  comparison  to  2013  (by  19  points)  as 
measured by the 2023 International Computer and 
Information  Literacy  Study (256).  The  2024  report 
also  highlights  the  need  to  support  teachers’ 
digital  skills  and  promote  pupils’  access  to 
distance learning. 

performance 
in 
literacy  significantly  decreased 

computer 

Participation  in  adult  learning  is  relatively 
high,  but  challenges  persist  for  specific 
rate  of  adults 
population  groups. 
participating  in  training  reached  49.5%  in  2022 
(compared to 42.6% in 2016), coming close to the 
2030 national target of 50% and remaining above 

The 

(256) Study conducted by the International Association for the 

Evaluation of Educational Achievement, 2023. 

94 

 
 
ANNEX 13: SOCIAL SCOREBOARD 

Table A13.1:Social Scoreboard for Slovakia 

(1) Update of 5 May 2025. 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 2025 for details on the 
methodology (https://employment-social-affairs.ec.europa.eu/joint-employment-report-2025-0). 
Source: Eurostat 

95 

49.57.551.310.78.93.2878.15.33.5127.518.322.636.723.86.45.11.6Critical situationTo watchWeak but improvingGood but to monitorOn averageAdult participation in learning (during the last 12 months, excl. guided on the job training, % of the population aged 25-64, 2022)Equal opportunities and access to the labour marketBest performersBetter than averageEarly leavers from education and training(% of  the population aged 18-24, 2024)Young people not in employment, education or training(% of the population aged 15-29, 2024)Gender employment gap(percentage points, population aged 20-64, 2024)Income quintile ratio (S80/S20, 2024)Dynamic labour markets and fair working conditionsSocial protection and inclusionShare of individuals who have basic or above basic overall digital skills(% of the population aged 16-74, 2023)Impact of social transfers (other than pensions) on poverty reduction(% reduction of AROP, 2024)Children aged less than 3 years in formal childcare (% of the under 3-years-old population, 2024)Self-reported unmet need for medical care (% of the population aged 16+, 2024)Disability employment gap (percentage points, population aged 20-64, 2024)Housing cost overburden (% of the total population, 2024)At risk of poverty or social exclusion (AROPE) rate (% of the total population, 2024)Employment rate(% of the population aged 20-64, 2024)Unemployment rate(% of the active population aged 15-74, 2024)Long term unemployment(% of the active population aged 15-74, 2024)Gross disposable household income (GDHI) per capita growth(index, 2008=100, 2023)At risk of poverty or social exclusion (AROPE) rate for children(% of the population aged 0-17, 2024) 
 
 
 
  
 
 
ANNEX 14: HEALTH AND HEALTH SYSTEMS 

Slovakia’s  health  system  faces  significant 
challenges  that  need  be  addressed  if  the 
country  is  to  improve  the  health  of  its 
population  and 
fairness,  while 
social 
boosting the competitiveness of its economy. 
Key  challenges  include:  (i)  low  life  expectancy, 
linked to high treatable and preventable mortality; 
(ii)  suboptimal  funding  and  cost-effectiveness  of 
the  health  system;  (iii)  an  insufficient  focus  on 
disease  prevention;  and  (iv)  shortages  of  health 
workers.  

in  Slovakia 
Life  expectancy  at  birth 
rebounded  above  its  pre-COVID-19  level  but 
was still among the lowest in the EU in 2023. 
Moreover, there are striking gender gaps in health 
outcomes.  Women  can  expect  to  live  6.6  years 
longer than men. That said, they can only expect to 
live  1.4  years  longer  than  men  in  good  health. 
Treatable mortality is one of the highest in the EU, 
suggesting  shortcomings  in  the  effectiveness  of 
the  health  system.  Diseases  of  the  circulatory 
system  (‘cardiovascular  diseases’)  and  cancer 
remain the leading causes of death, with mortality 
rates higher than the EU average. 

Graph A14.1: Life expectancy at birth, years 

Source: Eurostat (demo_mlexpec) 

The weak health outcomes negatively impact 
Slovakia’s  workforce,  productivity  and 
competitiveness.  Mortality  at  working  age  as  a 
proportion of total mortality is significantly higher 
in Slovakia than the EU average, exacerbating the 
effects of population ageing on a shrinking labour 
force.  Cancer  in  particular  has  a  major  impact  on 
(257). 
workforce  participation  and  productivity 
Between  2022  and  2040,  the  population  at 
working  age  in  Slovakia  is  forecast  to  shrink  by 
0.5%  every  year  as  a  result  of  lower  birth  rates 

(257) OECD/European Commission (2025), EU Country Cancer 

Profiles Synthesis Report. 

life 

years 

(EU  average:  0.3%).  The  number  of  potential 
to  non-
productive 
communicable  diseases  such  as  cancer  and 
cardiovascular  diseases  is  higher  than  the  EU 
average 
(1 368  per  100 000  population  vs 
1 017) (258). 

lost  due 

Graph A14.2: Treatable mortality 

Age-standardised death rate (mortality that could be 
avoided through optimal quality healthcare) 
Source: Eurostat (hlth_cd_apr) 

limited 

investment  from  EU  funds 

Despite 
in 
healthcare  quality  and  efficiency,  Slovakia’s 
healthcare  system  remains  underfunded, 
with 
cost-effectiveness.  Health 
spending per inhabitant is one of the lowest in the 
EU.  Spending  on  outpatient  care,  inpatient  care, 
and  retail  pharmaceuticals  and  medical  devices 
each  accounted  for  around  30%  of  total  health 
expenditure.  Between  2016  and  2022,  Slovakia 
allocated  an  average  of  0.31%  of  GDP  to  capital 
spending  in  the  health  sector  (lower  than  the  EU 
average  of  0.48%)  (259),  which  could  account  for 
the low availability of key diagnostic technologies 
(medical  imaging).  Due  to  an  ageing  population, 
the  projected 
in  public  healthcare 
spending  raises  fiscal  sustainability  concerns  for 
Slovakia  (see  Annex  1).  While  the  number  of 
hospital  beds  is  higher  than  the  EU  average,  the 
occupancy  rate  remains  low  (59%)  (260).  Public 
hospitals  in  Slovakia  are  facing  financial  issues, 
including  late  payments  and  indebtedness  (see 
Annex  4).  Reforms  are  under  way  in  Slovakia  to 
improve  the  efficiency  and  quality  of  inpatient 
healthcare by optimising the hospital network and 

increase 

(258) Update to 2022 data of analysis presented by Health at a 

Glance: Europe 2016. 

(259) OECD/European Commission, see Health at a Glance Europe 

2018, 2020, 2022 and 2024. 

(260) OECD/European Commission (2024), Health at a Glance: 
Europe 2024 - State of Health in the EU Cycle, p.201. 

96 

77.877.074.677.078.281.380.480.180.681.420192020202120222023SlovakiaEU165.4163.6168.8206.0176.191.389.291.793.389.720182019202020212022per 100 000 populationSlovakiaEU 
 
        
 
        
 
 
 
Table A14.1:Key health indicators 

*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 based on 2022 (or latest 2021) data except for Luxembourg (2017). Doctors’ density data refer to practising 
doctors in all countries except Greece, Portugal (licensed to practise) and Slovakia (professionally active). Density of nurses: data 
refer to practising nurses (EU recognised qualification) in most countries except France and Slovakia (professionally active) and 
Greece (hospital only). **‘Available hospital beds’ covers somatic care, not psychiatric care. ***The EU median is used for patents. 
Source: Eurostat database; European Patent Office; ****European Centre for Disease Prevention and Control (ECDC) for 2023. 

centralising  the  management  of  the 
hospitals.  

largest 

Out-of-pocket  payments  account  for  a 
greater  proportion  of  spending  on  health  in 
Slovakia  than  the  EU  average  (19.3%  vs 
14.3%). More than two thirds of all out-of-pocket 
payments are for outpatient pharmaceuticals (261). 
In  2024,  Slovakia  increased  its  public  health 
insurance  budget by  11.5%  compared  to  2023.  It 
financing 
also 
‘consolidation  package’  to  reduce  the  budget 
deficit,  by  increasing  taxes  and  contributions, 
generating EUR 1.96 billion.  

introduced  a  health  system 

and 

health 

reforms 

Under  the  Slovakian  recovery  and  resilience 
plan (RRP), around EUR 1.03 billion is planned 
for 
supporting 
investments. In addition, complementary funding 
for  healthcare  (EUR 166 million)  is  planned  under 
the EU cohesion policy funds in 2021-2027, which 
aim  to  improve  health  infrastructure  and  the 
accessibility  of  health  services  for  vulnerable  and 
socially disadvantaged groups. 

As  regards  public  health,  Slovakia  places 
insufficient  focus  on  disease  prevention.  In 
2022, spending on prevention accounted for 2.0% 
of  total  spending  on  health  in  Slovakia,  much 
lower  than  the  EU  average.  Preventable  mortality 
was  high  in  2022  (245  per  100 000 population) 
but  decreased  by  6%  since  2013.  Slovakia is  one 
of  the  countries  with  the lowest  rates  of  physical 
activity among adults. The share of the population 
that  is  overweight  has  been  increasing  over  time, 

(261) Health at a Glance: Europe 2024, pp. 186-187. 

97 

the  EU 

in  2022 

(264).  High 

particularly among men (262). Flu vaccination rates 
among  older  people  were  very  low  (6%)  in 
2021/2022 and declined sharply compared to pre-
pandemic  levels  (263).  Screening  rates  for  breast 
cancer and cervical cancer were among the lowest 
in 
levels  of 
hospitalisation  for  congestive  heart  failure  and 
diabetes  suggest  a  lack  of  care  coordination, 
highlighting  a  need  to  strengthen  primary  care. 
Under  EU4Health,  Slovakia  is  involved  in  the 
EUCanScreen joint action (265) on cancer screening 
and  the  CARE4DIABETES  joint  action  aimed  at 
reducing  the  burden  of  diabetes  (266).  In  2023, 
Slovakia’s  government  approved 
the  general 
outpatient care strategy that will run until 2030 to 
improve  access to primary  care.  Moreover,  one  of 
the  priorities  of  Slovakia’s  RRP  is  to  increase 
access  to  mental  healthcare  by  strengthening 
community and outpatient mental health services. 

Shortages  of  health  workers 
limit  the 
availability  of  care.  For  several  years,  the 
density of doctors and nurses in Slovakia has been 
below  the  EU  average.  Furthermore,  in  2022,  a 
high share of the country’s nursing personnel was 
aged between 55 and 64 (23.7%), and a low share 
was aged between 25 and 34 (9.8%). This poses a 
significant  challenge  to  the  health  system  and, 
more  broadly,  the  care  system  (see  Annex  10). 
Since  2025,  the  base  salaries  for  selected 
healthcare  professionals  have  increased.  Slovakia 

(262) Health at a Glance: Europe 2024, Chapter 4. 
(263) Health at a Glance: Europe 2024, pp. 214-215. 
(264) Health at a Glance: Europe 2024, pp. 162-163. 
(265) EUCanScreen - 6η Υ.ΠΕ 

(266) Home - Care4Diabetes4JointAction 

20192020202120222023EU average* (latest year) Cancer mortality per 100 000 population293.3301.8275.1267.7n.a.234.7 (2022)Mortality due to circulatory diseases per 100 000 population 567.8 607.1 641.2 627.8n.a.336.4 (2022)Current expenditure on health, purchasing power standards, per capita1 5191 5931 8501 947n.a.3 684.6 (2022)Public share of health expenditure, % of current health expenditure 79.8 80.3 79.7 79.9n.a.81.3 (2022)Spending on prevention, % of current health expenditure 0.81.01.62.0n.a.5.5 (2022)Available hospital beds per 100 000 population** 495 488 488 489n.a.444 (2022)Doctors per 1 000 population*3.63.73.73.7n.a.4.2 (2022)*Nurses per 1 000 population*n.a.n.a. 5.7 5.7n.a.7.6 (2022)*Mortality at working age (20-64 years), % of total mortality23.721.722.221.321.314.3 (2023)Number of patents (pharma / biotech / medical technology)0061129 (2023)***Total consumption of antibacterials for systemic use,                    daily defined dose per 1 000 inhabitants****19.314.416.020.820.120.0 (2023) 
 
 
 
        
 
participates in the EU4Health-funded HEROES joint 
action,  through  which  EU  countries  share  best 
practices  and  expertise  on  health  workforce 
planning (267). 

The Slovak health system’s potential to drive 
innovation and foster industrial development 
in  the  EU  medical  sector  remains  largely 
untapped.  Slovakia  is  among  the  EU  countries 
that report the lowest levels of public spending on 
health research and development. This is reflected 
in the low number of European patents granted in 
pharmaceuticals, 
the 
biotechnologies  and  medical  devices  (268).  Clinical 
trial  activity  in  Slovakia  is  also  limited  (269). 
Furthermore,  the  country  is  facing  a  growing 
shortage of medicines. 

combined 

areas 

of 

Slovakia is also lagging behind in the uptake 
of  e-health  and  the  overall  digitalisation  of 
its health system. In 2024, the shares of people 
using  online  health  services  (excluding  phone) 
instead  of  in-person  consultations  (15.6%)  and 
accessing  their  personal  health  records  online 
(16.2%) were both below the EU average. The low 
general level of digital literacy in Slovakia in 2023 
(51.3%  vs  an  EU  average  of  55.6%)  may  explain 
the low uptake of digital tools by patients. Planned 
investments under the RRP aim to boost the digital 
transformation  of  Slovak  hospitals.  In  addition, 
Slovakia  participates  in  the  joint  action  TEHDAS2 
(270)  and 
the 
EU4Health 
the 
implementation  of  the  European  Health  Data 
Space. 

receives  direct  grants  under 

programme 

facilitate 

to 

(267) JA HEROES | Health workforce planning project. 

(268) European Patent Office, Data to download | epo.org. 
(269) EMA (2024), Monitoring the European clinical trials 

environment, p. 9. 

(270) Second Joint Action Towards the European Health Data 

Space – TEHDAS2 - Tehdas 

98 

 
 
 
 
 
HORIZONTAL 
ANNEX 15: SUSTAINABLE DEVELOPMENT GOALS 

S

social 

fairness 

This  Annex  assesses  Slovakia’s  progress  on 
the  Sustainable  Development  Goals  (SDGs) 
along  the  dimensions  of  competitiveness, 
and 
sustainability, 
macroeconomic stability. 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 
inequalities  and  tackle  climate 
poverty,  fight 
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 
the EU. 

related 

Slovakia is slightly improving on several SDG 
indicators 
competitiveness 
(SDGs 4, 8 and 9), but needs to catch up with 
the EU average. At 1.03% of GDP in 2023, R&D 
expenditure  is  significantly  below  the  EU  average 

to 

inhabitants)  were  submitted 

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, 
cloud  systems  and  other  scientific  and  hi-tech 
breakthroughs.  Only  24  patent  applications  (per 
million 
in  2024 
compared to the EU average of 156. The share of 
the  population  aged  25-34  completing  tertiary 
education,  a  crucial  ingredient  for  raising  the 
proficiency,  competitiveness,  and  technological 
aptitude of the Slovak population, has dropped to  
37.2% in 2024, far from the EU average of 44.2% 
for this indicator. However, the proportion of adults 
participating  in  learning  is  increasing,  almost 
catching  up  with  the  EU  average.  In  2024,  12.8% 
of  the  Slovak  adult  population  had  attended  an 
education  course 
the  previous  4 weeks, 
compared  to  the  EU  average  of  13.3%  (SDG 4). 
The  share  of  households  with  a  high-speed 
internet connection increased from 45.5% in 2019 
to  69.1%  in  2023  (just  below  the  EU  average  of 
78.8%).  Investment  in  digital  infrastructure  and 
educational  reforms,  outlined  in  the  recovery  and 

in 

Graph A15.1: Progress towards the SDGs in Slovakia 

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 
five 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 28 April 2025. Data refer mainly to the period 2018-2023 or 2019-2024. Data on SDGs may 
vary across the report and its annexes due to different cut-off dates. 

99 

 
 
 
 
 
 
 
resilience plan (RRP), should further improve long-
term productivity. 

is 

average. 
on 

While  Slovakia  is  improving  on  several  SDG 
indicators related to sustainability (SDG 7, 9, 
11,  12,  13  and  15),  it  is  moving  away  from 
others (SDG 2, 6). Slovakia performs well on 
SDGs 6, 11 and 15 but needs to catch up with 
the EU average on SDGs 2, 7, 9, 12 and 13. It 
performs  well  on  sustainable mobility,  with  buses 
and trains accounting for 21% of total  passenger 
transport  in  2022,  standing  well  above  the  EU 
average  of  16.6%.  Slovakia’s  severe  housing 
deprivation rate was at 4.0% in 2023, at part with 
however 
Slovakia 
the 
EU 
underperforming 
to 
indices 
pertaining 
(SDG 7).  While 
affordable  and  clean  energy 
Slovakia’s  capacity  for  generating  energy  from 
renewable  sources  has  increased,  from  11.9%  of 
gross final energy consumption in 2018 to 17% in 
2023,  this  share  is  still  below  the  EU  average  of 
24.6%.  Over  the  same  period,  energy  productivity 
improved  only  marginally,  from  EUR 4.9  per  kgoe 
to EUR 5.5 per kgoe, compared to the average EU 
improvement  from  EUR 8.1  per  kgoe  to  EUR 9.8 
per  kgoe).  Slovakia’s  dependency  on  imported 
energy  as  part  of  its  overall  energy  mix  fell  from 
61.9%  in  2018  to  57.7%  in  2023,  standing  just 
below the EU average of 58.3%. Slovakia performs 
well  on  the  share  of  municipal  waste  that  is 
recycled.  The  country  increased  the  percentage 
recycled  from  36.3%  in  2018  to  50.3%  in  2023, 
which is above the EU average of 48.2%. 

Slovakia is making progress on its net greenhouse 
gas  emissions,  which  have  decreased  from  6.9 
tonnes  per  capita  in  2018  to  5.2  in  2023, 
performing  better  than  the  2023  EU  average  of 
6.8  tonnes  per  capita.  Investments  and  reforms 
(sections  on 
that  are  set  out 
renewables, 
industry  decarbonisation,  energy 
efficiency,  waste  disposal  and  R&D)  will  boost 
Slovakia’s performance on environmental SDGs. 

in  the  RRP 

While  Slovakia  is  improving  on  several  SDG 
indicators related to social fairness (SDGs 3, 
4, 5, 7 and 8), it is moving away from others 
(SDG 1). Slovakia performs well on SDG 1 but 
needs  to  catch  up  with  the  EU  average  on 
SDGs 3, 4, 5, 7 and 8. Slovakia performs better 
than the EU average on poverty-related indicators 
(SDG 1),  partly  because  of  the  relatively  little 
variation  in  earnings  among  workers  within  the 
same industry. 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 77.6% in 
2018  to  80.8%  in  2023)  but  the  rate  was  still 
below the EU average of 94.6% in 2023. The high 
percentage  of  low  achieving  fifteen-year-olds  in 
mathematics (33.2% in 2022 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 22.0% in 2019 to 22.7% in 2024, 
though  that  figure  is  still  significantly  below  the 
EU average of 32.6%. On SDG 7, Slovakia’s ability 
to  provide  affordable  energy  has  declined.  The 
percentage  of  people  unable  to  adequately  heat 
their  homes  rose  from  4.8%  in  2018  to  8.1%  in 
2023.  However,  this  is  still  below  the  EU  average 
of  10.6%  in  2023.  The  RRP  includes  measures  to 
improve  pupils’  skills  and  to  make  the  various 
levels of the education system more inclusive and 
fairer.  For  example,  by  creating  more  places  in 
preschool 
school 
curricula,  tackling  the  segregation  of  the  Roma 
population,  providing  specialised 
training  for 
teachers and raising the professional qualifications 
required of teaching staff (Components 6, 7, 8). 

establishments, 

updating 

While  Slovakia  is  improving  on  several  SDG 
indicators related to macroeconomic stability 
(SDGs 8  and  16),  it  is  moving  away  from 
others  (SDG  17).  Slovakia  needs  to  catch  up 
with  the  EU  average  on  SDGs  8,  16  and  17. 
in  Slovakia  has  been 
Real  GDP  per  capita 
increasing, 
in  2024. 
reaching  EUR 19  130 
However,  that  figure  stood  below  the  EU  average 
of  EUR 33  530  in  2024.  The  investment  share  of 
GDP  slightly  increased  from  21.7%  in  2019  to 
20.3% 
(EU  average:  21.7%).  The 
employment  rate  has  increased,  reaching  78.1% 
of  the  population  aged  20-64  in  2024,  and 
outpacing the EU average of 75.8%. The long-term 
unemployment  rate  has  fallen  (to  3.5%  in  2024), 
standing above the EU average of 1.9%. Measures 
presented  in  the  RRP  should  stimulate  much 
needed  investment  and  help  further  reduce  long-
term unemployment. 

in  2024 

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

100 

 
 
ANNEX 16: CSR PROGRESS AND EU FUNDS IMPLEMENTATION 

multiannual  financial  framework,  which  financed 
projects  until  2023  and  has  had  significant 
benefits  for  the  economy  and  Slovak  society. 
Project 
2021-2027 
under 
programmes  has  accelerated,  while  significant 
volumes of investment are yet to be mobilised.  

selection 

the 

Slovakia’s RRP contains 119 investments and 
103 reforms to stimulate sustainable growth 
and support the green and digital transitions, 
social  inclusion  and  territorial  cohesion.  A 
year  before  the  end  of  the  RRF  timespan, 
implementation  is  on  its  way,  with  54%  of  the 
funds  disbursed.  At  present,  Slovakia  has  fulfilled 
33% of the milestones and targets in its RRP (275). 
Efforts are needed to ensure completion of all RRP 
measures  by  31 August  2026.  Several  challenges 
hinder  the  implementation  of  the  RRP,  including 
inefficient 
processes, 
insufficient preparation of investment projects and 
a fragmented governance structure. Tackling these 
barriers would help accelerate the implementation. 

procurement 

public 

Slovakia  also  receives  funding  from  several 
other  EU  instruments,  including  those  listed  in 
Table A16.1. The common agricultural policy (CAP) 
provides  Slovakia  with  an  EU  contribution  of 
EUR 3.4 billion under the CAP strategic plan 2023-
2027  (276).  Operations  amounting  to  EUR  49.9 
million  (277)  have  been  signed  under  the  InvestEU 
instrument backed by the EU guarantee, improving 
in 
access  to  financing  for  riskier  operations 
Slovakia. 

Slovakia  faces  structural  challenges  in  a 
wide  range  of  policy  areas,  as  identified  in 
the country-specific recommendations (CSRs) 
addressed  to  the  country  as  part  of  the 
European  Semester.    They  refer,  among  other 
things,  to  the  tax  system,  the  quality  of  public 
spending and of public procurement processes, the 
effectiveness  of  the  judicial  and  anticorruption 
systems,  risks  related  to  household  debt  and  the 
functioning of the housing and rental markets, the 
teaching  of  basic  skills,  energy  and  waste 
management. 

The Commission has assessed the 2019-2024 
CSRs  considering  the  policy  action  taken  by 
Slovakia to date and the commitments in its 
recovery  and  resilience  plan  (RRP).  At  this 
stage, Slovakia has made at least ‘some progress’ 
on 54% of the CSRs (271), and ‘limited progress’ on 
89% (Table A16.2). 

by 

to  Slovakia 

competitiveness, 

EU funding instruments provide considerable 
resources 
supporting 
investments  and  structural  reforms  to 
increase 
environmental 
sustainability  and  social  fairness,  while 
helping  to  address  challenges  identified  in 
the  CSRs.  In  addition  to  the  EUR 6.4  billion 
funding  from  the  Recovery  and  Resilience  Facility 
(RRF) in 2021-2026, EU cohesion policy funds (272) 
are  providing  EUR 12.6  billion 
to  Slovakia 
(amounting  to  EUR 16.2  billion  with  national  co-
financing)  for  2021-2027  (273)  to  boost  regional 
competitiveness  and  growth.  Support  from  these 
instruments combined represents around 15.3% of 
these 
2024  GDP 
instruments  to  different  policy  objectives 
is 
outlined 
in  Graphs  A16.1  and  A16.2.  This 
substantial  support  comes  on  top  of  financing 
the  2014-2020 
provided 

(274).  The  contribution  of 

to  Slovakia  under 

(271) 6% of the 2019-2024 CSRs have been fully implemented, 

5% substantially implemented, and some progress has been 
made on 43%. 

(272) In 2021-2027, cohesion policy funds include the European 
Regional Development Fund, the Cohesion Fund, the 
European Social Fund Plus and the Just Transition Fund. The 
information on cohesion policy included in this annex is 
based on adopted programmes with the cut-off date of 5 
May 2025. 

(273) European territorial cooperation (ETC) programmes are 

excluded from the figure. 

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

(275) As of mid-May 2025, Slovakia has submitted 5 payment 

requests, the last one being under assessment. 

(276) An overview of Slovakia’s formally approved strategy to 

implement the EU’s common agricultural policy nationally 
can be found at: https://agriculture.ec.europa.eu/cap-my-
country/cap-strategic-plans/slovakia_en   

applicable. GDP figures are based on Eurostat data for 2024. 

(277) Data reflect the situation on 31.12.2024. 

101 

 
 
 
 
 
 
Graph A16.1: Distribution of RRF funding in 
Slovakia by policy field 

(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 circle 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. 
Source: European Commission 

Graph A16.2: Distribution of cohesion policy 
funding across policy objectives in Slovakia 

Source: European Commission 

The 

and 

European 

competitiveness 

Cohesion  policy  funds  aim  to  increase  the 
productivity 
of 
Slovakia’s  firms  and  improve  the  business 
Regional 
environment. 
Development Fund (ERDF) will provide funding for 
research  and  development 
investments  and 
cooperation  with  research  organisation  to  over 
800  small  and  medium-sized  enterprises  (SMEs). 
An additional 2 700 businesses will receive grants 
improve 
and 
their  competitiveness 
to 
loans 
investments.  Over  50  public 
through  other 
institutions  will  be  helped  to  develop  digital 
services for the public, while 53 000 dwellings will 
gain  very  high-capacity  broadband  access  to 
facilitate  the  economy’s  digital  transition.  Under 
the  Strategic  Technologies  for  Europe  Platform 
(STEP)  Slovakia  aims  to  invest  over  EUR  200 
million  in  developing  digital  technologies  and 

biotechnologies.  The  European  Social  Fund  Plus 
(ESF+)  will  fund  the  introduction  of  individual 
learning  accounts  in  Slovakia.  This  will  serve  as  a 
follow-up  to  the  ERDF-funded  project  (funding: 
EUR 2.3 million) aimed at establishing and testing 
the  relevant  IT  platform  (called  EPIVU).  The  ESF+ 
project  on  individual  learning  accounts  (worth 
EUR 15  million)  will  be  implemented  between 
2025-2029  by the  Ministry  of  Education  together 
with  specific  partners  (the  Alliance  of  Sectoral 
Councils,  the  State  Association  of  Adult  Education 
Institutions).  The  project 
in  the 
strategy for lifelong learning and in the new adult 
education  law,  which  came  into  force  in  January 
2025. 

is  anchored 

are 

funds 

investments 

contributing 

to 
Other 
competitiveness  in  Slovakia,  for  instance 
through  open  calls.  The  Connecting  Europe 
Facility  has  financed  strategic  investments  in 
in  rail 
sustainable  mobility  with 
transport infrastructure; energy market integration 
with the diversification of natural gas sources and 
routes;  and  digital  connectivity  with  terrestrial 
to  Poland  and 
cables  connecting  Slovakia 
advanced  5G  development.  Horizon  Europe  has 
supported research and innovation, from scientific 
breakthroughs  to  scaling  up  innovations,  with 
research  and  innovation  capacity  and  research  on 
food  and  agriculture  as  top  priorities  in  Slovakia. 
The  Technical  Support 
(TSI)  has 
supported Slovakia in the preparation of its Social 
Climate  Plan  as  well  as  overcoming  barriers  to 
regional  development  in  Upper  Nitra  in  2024.  It 
also  supports  capacity  building  of  the  public 
the  multiannual 
administration 
programme  Public  Administration  Cooperation 
Exchange (PACE).  

Instrument 

through 

to 

the 

Slovakia’s  RRP  also  contains  ambitious 
measures 
business 
improve 
environment  and  competitiveness.  As  part  of 
the  measures  covered  by  payment  requests 
submitted over the past year, major reforms have 
been  implemented  to  reduce  regulatory  burden 
and  improve  the  efficiency  of  the  judicial  system, 
the insolvency framework and public procurement. 
Slovakia  put  in  place  a  unified  methodology  for 
the  assessment  of  impacts,  new  tools  for  ex post 
evaluations  of  existing  regulations,  a  ‘1-in-2-out’ 
rule  to  ensure  that  new  legislation  does  not 
increase  administrative  costs  for  businesses,  and 
protection  against  unjustified  gold-plating  of 
legislation.  Slovakia  also  set  up  a  new  court 
network  by  reorganising  and  streamlining  the 

102 

Green transitionDigital transformationSmart, sustainable andinclusive growthSocial & territorial cohesionHealth & resilienceNext generationSmarter EuropeGreener EuropeConnected EuropeSocial EuropeEurope closer to citizensJTF specific objective 
     
 
   
The 

and 

insolvency 

courts  system,  allowing  for  greater  specialisation 
of  judges  in  criminal,  civil,  commercial  or  family 
justice. 
restructuring 
procedures  were  also  unified  and  digitalised,  with 
Slovakia  introducing  insolvency  specialisation  at 
the  level  of  business  courts  and  early  warning 
tools. Efforts  to  digitalise  public  procurement 
included  the  creation  of  a  single  electronic 
platform;  ensuring 
the 
information  and  data  management  systems;  and 
better  control  and  greater  efficiency 
in  the 
evaluation and award of contracts. 

interoperability  with 

voluntarily 

EU  funds  are  playing  a  significant  role  in 
promoting  environmental  sustainability  and 
in  Slovakia  during  the 
green  transition 
current  seven-year  EU  budget  (multiannual 
financial  framework).  With  ERDF  and  Just 
Transition  Fund  (JTF)  support,  capacity  for  waste 
recycling will increase by 500 000 tonnes per year, 
while  wastewater  treatment  will 
improve  for 
75 000  people  in  municipalities  across  Slovakia. 
Over 16 000 households will improve their energy 
performance  thanks  to  insulation  and  renewable 
energy  installations.  In  regions  transitioning  from 
coal  mining  and  emission-intensive 
industries 
(Trenčín,  Košice  and  Banská  Bystrica),  the  JTF  will 
support close to 200 businesses operating in green 
industries  and  build  over  800  alternative  fuel 
stations. As for the CAP strategic plan, more than 
EUR 513  million  in  EU  funds  are  reserved  for 
to  more 
farmers 
environmentally 
on 
ambitious 
agricultural  land  as  part  of  the  new  whole-farm 
eco-scheme.  Such  practices  include  improving  soil 
structure,  setting  aside  non-productive  areas  and 
sowing  them  with  pollinator  mixtures,  limiting the 
maximum  area  of  cultivated  land  and  postponing 
mowing.  Slovakia  aims  to  cultivate  20%  of  its 
agricultural  land  under  organic  farming  by  2030. 
The  CAP  strategic  plan  helps  this  process  by 
providing  financial  aid  covering  270 000  hectares 
(14%  of  the  country’s  agricultural  land).  Under 
rural  development,  about  46%  of  funds  are 
reserved  for  environmental  and  climate-related 
objectives  such  as  agri/forest  environmental  and 
to 
climate  measures. 
sustainability  and  reduced  use  of  pesticides  are 
applied  on  more  than  27%  of  the  country’s 
agricultural area. Following the Russian invasion of 
for  enhanced 
Ukraine, 
investments 
in  the  production  of  renewable 
energy. 

the  plan  provides 

committing 

Practices 

practices 

leading 

Slovakia’s  RRP,  including  the  REPowerEU 
chapter, has a comprehensive set of reforms 
and  investments  for  the  green  transition.  As 
part  of  the  measures  covered  by  payment 
requests  submitted  over  the  past  year,  the 
Railways  Act  and  related  legislation  on  transport 
improve  the 
infrastructure  were  amended  to 
transport 
and 
management 
investments, 
including  through  new  transport 
methodologies  to  identify  projects.  In  addition,  a 
new 
law  on  public  passenger  transport  was 
adopted to transfer traffic from cars to trains and 
optimise  rail  passenger  transport  through  greater 
coordination between regional public bus and train 
services,  as  well  as  between  the  state,  counties, 
cities  and  municipalities  on  more  integrated  and 
efficient provision of passenger transport. 

planning 

of 

Promoting  fairness,  social  cohesion  and 
improving  access  to  basic  services  are 
among  the  key  priorities  of  EU  funding  in 
Slovakia. As a result of ERDF support, healthcare 
facilities  will  be  able  to  serve  740 000  more 
patients  every  year.  The  capacity  of  social  care 
facilities  will  increase,  covering  a  further  900 
people,  and  capacity  and  conditions  in  social 
housing  will  be  expanded  to  cover  another  9 000 
people.  The  ESF+  is  providing  EUR 60  million  for 
‘Development  Teams  I’,  a  project  of  strategic 
importance  aimed  at  empowering  marginalised 
Roma  communities  in  60  Roma  settlements.  A 
development team has been set up in each of the 
municipalities, with the support of the municipality 
leadership.  The 
the 
challenges  the  Roma  population  face  (housing, 
education,  health,  access  to  the  labour  market, 
poverty  and  indebtedness,  and  planning  issues  in 
the municipality).  The development team  employs 
Roma  and  non-Roma  field  workers  who  assist 
specific 
people, 
unemployed  people,  etc.  The  project  has  been 
running  since  mid-2023  and  will  last  until  2026. 
The  project  has  produced  its  first  tangible  results 
in  the  Roma  settlements  (e.g.  more  than  16 000 
people have been targeted, 719 people employed, 
12 000 events held for families and children, and 
for  unemployed 
6 200  counselling  activities 
people). 

then  helps  with 

families, 

children, 

young 

team 

Slovakia’s RRP contains several reforms and 
investments  related  to  fairness  and  social 
policies.  As  part  of  the  measures  covered  by 
payment  requests  submitted  over  the  past  year, 
the  efficiency  and 
Slovakia  has 

improved 

103 

 
 
system performance assessment reform. 

to 

availability of emergency care. More specifically, it 
has amended legislation in the field and optimised 
the  emergency  care  network  by  setting  up  a  new 
network  of  ambulance  stations  and  providing  a 
new  definition  of  emergency  care  and  criteria  for 
requests  for  emergency  care 
responding 
services.  Slovakia  also  reorganised 
long-term 
health and palliative and nursing care, to improve 
the  offer  and  coordination  between  types  of  care 
and to make financing more effective. Measures to 
improve  equity  and  quality  in  the  education 
system  included:  (i)  setting  up  education  support 
for  children  and  pupils  with  special  educational 
needs  and  experiencing  obstacles  to  accessing 
education;  (ii)  the  creation  of  a  comprehensive 
system of counselling for children, pupils, students;  
(iii)  provision  for  completing  lower  secondary 
education  in  vocational  schools;  and  (iv)  a  new 
curriculum  for  all  primary  schools  organised  in 
multiannual  education  cycles.  To  help  Slovakia 
implement  its  RRP,  the  TSI  supported  the  health 

Table A16.1:Selected EU funds with adopted allocations - summary data (million EUR) 

(1) The cut-off date for data on disbursements under the RRF is 31 May 2025. 
(2) Cohesion policy 2014-2020 allocations include REACT-EU appropriations committed in 2021-2022. 
(3) These amounts relate only to disbursements made from 2021 onwards and do not include payments made to the Member 
State before 2021.  Hence the figures do not comprise the totality of payments corresponding to the 2014-2020 allocation. The 
cut-off date for data on disbursements under EMFAF and EMFF is 29 April 2025.  The cut-off date for data on disbursements 
under cohesion policy funds, AMIF, BMVI and ISF is 5 May 2025. 
(4) AMIF - Asylum, Migration and Integration Fund; BMVI - Border Management and Visa Instrument; ISF - Internal Security Fund. 
(5) Expenditure outside the CAP strategic plan is not included. 
(6) The cut-off date for data on EARDF disbursements is 5 May 2025. The information on EAGF disbursements is based on the 
Member State declarations until March 2025.  Disbursements for the Direct Payments (EAGF) started in 2024. 
Source: European Commission 

104 

Instrument/policyDisbursed since 2021   (1)             RRF grants (including the RepowerEU allocation)3 471.8RRF loans0 Instrument/policyAllocation 2014-2020 (2)Allocation 2021-2027 Disbursed since 2021 (3)    (covering total payments to the Member State on commitments originating from both 2014-2020 and 2021-2027 programming periods) Cohesion policy (total)14 288.412 593.79 242.0European Regional Development Fund (ERDF)7 167.07 305.65 004.0Cohesion Fund (CF)3 991.02 472.82 052.4European Social Fund (ESF, ESF+) and the Youth Employment Initiative (YEI)3 130.42 356.32 033.4Just Transition Fund (JTF) 459.0 152.1European Maritime, Fisheries and Aquaculture Fund (EMFAF) and the European Maritime and Fisheries Fund (EMFF) 7.7 15.24.3Migration, border management and internal security - AMIF, BMVI and ISF (4) 53.5 99.236.8The common agricultural policy under the CAP strategic plan (5)Disbursements under the CAP Strategic Plan (6)Total under the CAP strategic plan969.9European Agricultural Guarantee Fund (EAGF)759.2European Fund for Agricultural Development (EAFRD)210.7Allocation 2023-20273 380.02 063.11 316.9Allocation 2021-2026 6 408.50FisheriesMigration and home affairs 
 
 
 
 
 
 
 
 
 
 
 
       
 
Table A16.2:Summary table on 2019-2024 CSRs 

(Continued on the next page) 

105 

SlovakiaAssessment in May 2025Relevant SDGs2019 CSR 1No longer relevantAchieve the medium-term budgetary objective in 2020.No longer relevantSDG 8, 16Safeguardthelong-termsustainabilityofpublicfinances,notablythatofthehealthcare and pension systems.No longer relevantSDG 3, 82019 CSR 2Some progressImprove the quality and inclusiveness of education at all levels and foster skills.Some progressSDG 4, 8, 10Enhance access to affordable and quality childcare and long-term care.Limited progressSDG 3, 4, 5Promote integration of disadvantaged groups, in particular Roma.Limited progressSDG 1, 2, 4, 8, 102019 CSR 3Some progressFocus investment-related economic policy on healthcare,Some progressSDG 3, 10, 11research and innovation,Some progressSDG 9, 10, 11transport, notably on its sustainability,Some progressSDG 10, 11digital infrastructure,Some progressSDG 9, 10, 11energy efficiency,Some progressSDG 7, 10, 11competitiveness of small and medium-sized enterprises,Some progressSDG 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 progressSDG 92019 CSR 4No progressContinue to improve the effectiveness of the justice system, focussing on strengthening its independence, including on judicial appointments.No progressSDG 16Increaseeffortstodetectandprosecutecorruption,inparticularinlarge-scalecorruption cases.No progressSDG 162020 CSR 1No longer relevantInlinewiththegeneralescapeclause,takeallnecessarymeasurestoeffectivelyaddressthepandemic,sustaintheeconomyandsupporttheensuingrecovery.Wheneconomicconditionsallow,pursuefiscalpoliciesaimedatachievingprudentmedium-termfiscalpositionsandensuringdebtsustainability,whileenhancinginvestment. No longer relevantSDG 8, 16Strengthentheresilienceofthehealthsystemintheareasofhealthworkforce,critical medical products and infrastructure.Limited progressSDG 3Improve primary care provision and coordination between types of care.Some progressSDG 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. Some progressSDG 4Ensure equal access to quality education.Limited progressSDG 4, 8, 102020 CSR 3Some progressEffectivelyimplementmeasurestoensureliquidityforsmallandmedium-sizedenterprises and self-employed. Some progressSDG 8, 9Close digital infrastructure gaps. Some progressSDG 9Front-load mature public investment projects Some progressSDG 8, 16and promote private investment to foster the economic recovery. Some progressSDG 8, 9Focusinvestmentonthegreenanddigitaltransition,inparticularoncleanandefficient production and use of energy and resources, Some progressSDG 6, 7, 9, 12, 13, 15sustainable public transport, Some progressSDG 11and waste management. Some progressSDG 6, 12, 152020 CSR 4Limited progressEnsureeffectivesupervisionandenforcementoftheanti-moneylaunderingframework. Some progressSDG 8, 16Ensure a favourable business environment Limited progressSDG 8, 9and quality public services through enhanced coordination and policy-making. Limited progressSDG 10, 11, 16Address the integrity concerns in the justice system.No progressSDG 16 
 
 
 
 
 
 
 
  
 
Table (continued) 

(Continued on the next page) 

106 

2021 CSR 1No longer relevantIn2022,maintainasupportivefiscalstance,includingtheimpulseprovidedbytheRecovery and Resilience Facility, and preserve nationally financed investment. No longer relevantSDG 8, 16Wheneconomicconditionsallow,pursueafiscalpolicyaimedatachievingprudentmedium-termfiscalpositionsandensuringfiscalsustainabilityinthemediumterm. No longer relevantSDG 8, 16Atthesametime,enhanceinvestmenttoboostgrowthpotential.Payparticularattentiontothecompositionofpublicfinances,onboththerevenueandexpendituresidesofthebudget,andtothequalityofbudgetarymeasuresinordertoensureasustainableandinclusiverecovery.Prioritisesustainableandgrowth-enhancinginvestment,inparticularinvestmentsupportingthegreenanddigitaltransition. No longer relevantSDG 8, 16Giveprioritytofiscalstructuralreformsthatwillhelpprovidefinancingforpublicpolicyprioritiesandcontributetothelong-termsustainabilityofpublicfinances,including,whererelevant,bystrengtheningthecoverage,adequacyandsustainability of health and social protection systems for all.No longer relevantSDG 8, 162022 CSR 1No longer relevantIn2023,ensurethatthegrowthofnationallyfinancedprimarycurrentexpenditureisinlinewithanoverallneutralpolicystance,takingintoaccountcontinuedtemporaryandtargetedsupporttohouseholdsandfirmsmostvulnerabletoenergypricehikesandtopeoplefleeingUkraine.Standreadytoadjustcurrentspending to the evolving situation.No longer relevantSDG 8, 16Expandpublicinvestmentforthegreenanddigitaltransitions,andforenergysecuritytakingintoaccounttheREPowerEUinitiative,includingbymakinguseofthe Recovery and Resilience Facility and other Union funds.No longer relevantSDG 8, 16Fortheperiodbeyond2023,pursueafiscalpolicyaimedatachievingprudentmedium-term fiscal positions.No longer relevantSDG 8, 16Makethetaxmixmoreefficientandmoresupportivetoinclusiveandsustainablegrowth,includingbyleveragingthepotentialofenvironmentalandpropertytaxation.Limited progressSDG 8, 10, 12Continuetostrengthentaxcompliance,includingbyfurtherdigitalisingtaxadministration.Some progressSDG 8, 9, 162022 CSR 2Proceedwiththeimplementationofitsrecoveryandresilienceplan,inlinewiththemilestonesandtargetsincludedintheCouncilImplementingDecisionof13July2021.Submitthe2021-2027cohesionpolicyprogrammingdocumentswithaviewtofinalisingtheirnegotiationswiththeCommissionandsubsequentlystartingtheirimplementation.2022 CSR 3Some progressReduce overall reliance on fossil fuels and diversify imports of fossil fuels.Some progressSDG 7, 9, 13Acceleratethedeploymentofrenewablesbyfurtherfacilitatinggridaccess,introducing measures to streamline permitting and administrative proceduresSome progressSDG 7, 8, 9, 13and modernising the electricity network.Substantial progressSDG 7, 9, 13Reduce reliance on natural gas in heating and industry.Limited progressSDG 7, 9, 13Adjustrenovationpoliciestoaccelerateandincentivisedeeprenovationsofbuildings.Some progressSDG 7RRP implementation is monitored by assessing RRP payment requests and analysing reports published twice a year on the achievement of the milestones and targets. These are to be reflected in the country reports. Progress on the cohesion policy programming documents is monitored under the EU cohesion policy. 
 
 
  
 
Table (continued) 

(Continued on the next page) 

107 

2023 CSR 1Some progressWinddowntheemergencyenergysupportmeasuresinforce,usingtherelatedsavingstoreducethegovernmentdeficit,assoonaspossiblein2023and2024.Shouldrenewedenergypriceincreasesnecessitateneworcontinuedsupportmeasures,ensurethatthesearetargetedatprotectingvulnerablehouseholdsandfirms, fiscally affordable, and preserve incentives for energy savings.Substantial progressSDG 8, 16Ensureprudentfiscalpolicy,inparticularbylimitingthenominalincreaseinnationally financed net primary expenditure in 2024 to not more than 5.7%.Full implementationSDG 8, 16PreservenationallyfinancedpublicinvestmentandensuretheeffectiveabsorptionofRRFgrantsandotherEUfunds,inparticulartofosterthegreenanddigitaltransitions.Full implementationSDG 8, 16Fortheperiodbeyond2024,continuetopursueamedium-termfiscalstrategyofgradualandsustainableconsolidation,combinedwithinvestmentsandreformsconducivetohighersustainablegrowth,toachieveaprudentmedium-termfiscalposition.Limited progressSDG 8, 16Makethetaxmixmoreefficientandmoresupportiveofinclusiveandsustainablegrowth,includingbyleveragingthepotentialofenvironmentalandpropertytaxation.Limited progressSDG 8, 10, 12Continuetostrengthentaxcompliance,includingbyfurtherdigitalisingthetaxadministration.Some progressSDG 8, 9, 16Reducetherisksrelatedtohouseholddebtbysupportinghousingsupplyandtheexpansion of the rental market.Limited progressSDG 82023 CSR 2Maintainthemomentuminthesteadyimplementationoftherecoveryandresilienceplanand,followingtherecentsubmissionoftheaddendum,includingtheREPowerEUchapter,rapidlystarttheimplementationoftherelatedmeasures.Proceedwiththespeedyimplementationofcohesionpolicyprogrammes,inclosecomplementarity and synergy with the recovery and resilience plan.2023 CSR 3Limited progressReducetheeconomy’srelianceonfossilfuels,inparticularnaturalgasinindustryand heating, and diversify imports of fossil fuels.Some progressSDG 7, 9, 13Acceleratethedeploymentofrenewables,particularlyforwind,solar,geothermaland renewable gases, in line with relevant sustainability criteria.Limited progressSDG 7, 9, 13Simplifypermittingandadministrativeproceduresfordeployingrenewables,including by establishing ‘one-stop shops’ and ‘go-to’ areas.Limited progressSDG 7, 8, 9, 13, Modernisetheelectricitynetworkandmaketheproceduresforconnectingrenewables to the grid more efficient and less burdensome.Some progressSDG 7, 8, 9, 13Accelerate and incentivise deep renovations of public and private buildings,Some progressSDG 7address energy poverty through housing renovations for low-income households,Some progressSDG 1, 2, 7, 10andstepuppolicyeffortsaimedattheprovisionandacquisitionofskillsandcompetences needed for the green transition.Limited progressSDG 4RRP implementation is monitored through the assessment of RRP payment requests and analysis of the bi-annual reporting on the achievement of the milestones and targets, to be reflected in the country reports. Progress with the cohesion policy is monitored in the context of the Cohesion Policy of the European Union. 
 
 
  
 
Table (continued) 

Source: European Commission 

108 

2024 CSR 1Some progressSubmit the medium-term fiscal-structural plan in a timely manner.Full implementationSDG 8, 16InlinewiththerequirementsofthereformedStabilityandGrowthPact,limitthegrowthinnetexpenditurein2025toarateconsistentwithinteralia,reducingthegeneralgovernmentdeficittowardsthe3%ofGDPTreatyreferencevalueandkeeping the general government debt at a prudent level over the medium term.Full implementationSDG 8, 16Makethetaxmixmoreefficient,includingbyreducingdisincentivesonthelabourmarket,andmakingastrongeruseofenvironmentalandrecurrentpropertytaxation.Limited progressSDG 8, 10, 12 Reduce costly spending measures, also by implementing spending reviews.Some progressSDG 8, 16Continuetostrengthentaxcompliance,includingbyfurtherdigitalisingtaxadministration.Some progressSDG 8, 9, 16 Reducetherisksrelatedtohouseholddebtbysupportinghousingsupplyandtheexpansion of the rental market.Limited progressSDG 82024 CSR 2Ensureeffectivegovernance,strengthenadministrativecapacitytomanageEUfunds,accelerateinvestmentsandmaintainmomentumintheimplementationofreforms.Addressrelevantchallengestoallowforcontinued,swiftandeffectiveimplementationoftherecoveryandresilienceplan,includingtheREPowerEUchapter,ensuringcompletionofreformsandinvestmentsbyAugust2026.Acceleratetheimplementationofthecohesionpolicyprogramme.Inthecontextofitsmid-termreview,continuefocusingontheagreedpriorities,takingactiontobetteraddresstheinvestmentneedsinthesustainableuseofnaturalresources,whileconsideringtheopportunitiesprovidedbytheStrategicTechnologiesforEurope Platform initiative to improve competitiveness.2024 CSR 3Limited progressStrengthentheeffectiveness,independenceandintegrityofthejudicialandanticorruption systemNo progressSDG 16 includingbyensuringthatadequatesafeguardsfortheeffectiveinvestigationandprosecution of high-level corruption cases are in place.No progressSDG 16 Improvecompetitivenessandproductivity,includingbyensuringtransparencyandcompetitioninpublicprocurementprocesses,topromotegoodgovernanceandimprove the effectiveness of public spending.Limited progressSDG 9, 16 Strengthen the teaching of basic skills,Limited progressSDG 4includingforchildrenfromdisadvantagedbackgroundssuchasfrommarginalisedRoma communities,Limited progressSDG 4, 8, 10andincreasetheavailabilityanduseofaffordablehigh-qualityearlychildhoodeducation and care for children under the age of 3.No porgressSDG 4, 5Strengthenresourcewastemanagementandreuseofmunicipalandpackagingwaste,Limited progressSDG 1, 6, 7, 8, 11, 12, 13, 15andtheconservationofnaturalresourcesbymainstreamingnature-basedsolutions and finalising zonation of nature-protected areas.No progressSDG 1, 6, 7, 8, 11, 12, 13, 15RRP 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. Progress with the cohesion policy programming is monitored in the context of the Cohesion Policy of the European Union. 
 
 
 
  
 
ANNEX 17: COMPETITIVE REGIONS 

is  higher 

The  degree  of  economic  and 
social 
in  the  west  of 
development 
Slovakia  than  in  the  east.  Boosting  innovation 
increase  the  growth 
capacity  would  help  to 
less 
potential  and  competitiveness  of 
developed  regions.  Many  Roma  communities, 
which  are  concentrated  in  the  poorer  areas  of 
Slovakia continue to face marginalisation,  

the 

Graph A17.1: GDP per head in purchasing power 
standard (PPS) 

Unit: Index EU-27=100 
Source: ARDECO (JRC) 

in  Slovakia  have 
Regional  disparities 
diminished  but  large  gaps  persist  between 
the capital region, where economic activity is 
concentrated, and the rest of the country.  In 
2023,  GDP  per  head  in  the  capital  region  of 
Bratislava 
(Bratislavský  kraj)  corresponded  to 
148% of the EU average. The other three regions, 
Western  (Západné  Slovensko),  Central  (Stredné 
(Východné 
Slovensko)  and  Eastern  Slovakia 
Slovensko),  were  far  behind,  at  70%,  61%  and 
54%  of  the  EU  average  respectively.  While  GDP 
per head in Bratislava was boosted by commuters, 
the  household  income  per  head  (at  108%  of  the 
EU  average  in  Bratislava  and  between  61%  and 
69%  in  the  other  three  regions  in  2021)  also 
points  to  significant  disparities.  The  gap  has 
narrowed  due  to  the  capital  region's  relative 
decline (Graph A17.1). In 2014-2023, real GDP per 
head growth averaged 0.4% per year in Bratislava, 
while  in  the  other  regions  it  was  between  2.4% 
and  3.2%.  More  dynamic  growth  in  the  less 
developed  regions  would  help  them  catch  up  and 
help  the  country  as  a  whole  to  catch  up  with  the 
rest of the EU.  

Competitiveness 

Regional  disparities  are  closely  linked  to  a 
persistent  labour  productivity  gap  between 
Bratislava  and  the  rest  of  Slovakia.  In  2022, 
labour productivity in the Bratislava capital region, 
measured  as  real  GDP  per  hour  worked,  reached 
EUR 33.15,  significantly  higher  than  the  national 
average  of  EUR 23.50  (Graph  A17.2).  Stronger 
productivity  growth  in  the  regions  would  help  the 
country catch up with the EU average. 

Graph A17.2: Labour productivity per hour 

Unit: Real GDP per hour worked (EUR, 2015 prices) 
Source: ARDECO (JRC) 
Source:  

Stronger  innovation  performance  and  higher 
investment  in  R&D  would  support  regional 
development.  R&D  expenditure  in  the  business 
enterprise  sector,  at  0.75%  of  GDP  in  Bratislava, 
0.64% in Western Slovakia and about half of that 
in  the  other  two  regions,  is  far  below  the  EU 
average of  1.53%. The Bratislava region is only a 
moderate innovator, while the other three regions 
are  classified  as  emerging  innovators  (the  lowest 
category)  on  the  regional  innovation  scoreboard 
2023. However, there are positive trends, such as 
an increase in innovative activities among small to 
medium-sized  enterprises  in  Central  Slovakia,  or 
rising  numbers  of 
ICT  specialists  and  R&D 
expenditure among businesses in Eastern Slovakia. 

The  capital  region  is  more  competitive  than 
the  other  three  regions  and  attracts  new 
inhabitants.  Differences 
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 

the 

in 

109 

255075100125150175200200020012002200320042005200620072008200920102011201220132014201520162017201820192020202120222023Bratislavský krajZápadné SlovenskoStredné SlovenskoVýchodné Slovensko051015202530354045201220132014201520162017201820192020202120222015 EUR per hour workedOther NUTS 2 regionsCapital regionNational averageEU27 
 
      
       
 
 
 
Table A17.1:Selection of indicators at regional level in Slovakia 

Source: Eurostat and ARDECO (JRC)  

Index above the EU average set at 100. The Index 
measures  a  region’s  ability  to  offer  an  attractive 
environment  for  firms  and  residents  to  live  and 
work  in  (Map  A17.1).  In  2013-2022,  Western, 
Central and Eastern Slovakia were losing residents 
at  an  annual  rate  of  1-3  per  1 000  due  to  both 
natural  population  decrease  and  outmigration. 
Conversely,  the  Bratislava  capital  region  attracted 
residents  (+17  per  1 000  annually),  primarily  due 
to net migration. 

Map A17.1:  Regional Competitiveness Index 2.0, 
2022 edition 

Social fairness 

rate. 

employment 

joblessness 

labour  market  has 

improved 
Slovakia’s 
significantly,  but 
in  Eastern 
Slovakia  remains  a  concern,  especially  for 
young  people.  All  regions  have  experienced 
employment  growth  compared  to  pre-pandemic 
levels.  In  2024,  the  capital  region  boasted  an 
impressive  85.4% 
The 
employment rates in Western and Central Slovakia 
(79.4%  and  79.0%  respectively)  were  also  above 
the  EU  average  of  75.8%,  while  Eastern  Slovakia 
lagged  behind  at  72.5%.  The  unemployment  rate 
in Eastern Slovakia, at 9.6% in 2024, declined less 
and  remained  at  a  much  higher  level  than  in  the 
other  regions  (Table  A17.1).  The  percentage  of 
young  people  (15-29  years  old)  who  are  not  in 
education,  employment  or  training,  at  16.9%  in 
Eastern  Slovakia,  is  twice  as  high  as  in  other 
regions.  The  capital  region  stands  out,  with  a 
nearly equal employment rate of women and men, 
while the other regions exhibit a gender gap of 9-
12 percentage points, with more men employed. 

Source: DG REGIO, JRC based on Eurostat 

Human  capital  is  concentrated in  Bratislava. 
The percentage of people aged 25-64 with tertiary 
education  was  52.6%  in  the  region  of  Bratislava, 
above the EU average of 36.1% and far more than 
in  the  other  regions,  which  range  from  24.6%  to 
26.9%.  Employment  in  science,  technology  and 
knowledge-intensive  services  shows  a  similar 
pattern (Table A17.1). 

Rural  areas  enjoy  good  access  to  primary 
education, but there is room for improvement 
in access to healthcare. In the rural areas, 50% 
of  children  under  the  age  of  15  live  within  a  15-
minute  walk  from  a  school,  exceeding  the  EU 
average of 31%. However, the performance gap in 
basic  skills  (mathematics,  reading  and  science) 
between  schools  in  rural  and  urban  areas  was 
among  the  highest  in  the  EU  (278),  suggesting 

(278) Programme for International Student Assessment 2022 – 

Slovak Republic 

110 

GDP per head (PPS)Real GDP per head growthProductivity - GDP per person employed (PPS)Real productivity growth (per person employed)Productivity - GDP per hour worked (PPS)Real productivity growth (per hour worked)R&D expenditure in business enterprise sector (BERD)Human resources in science and technology (core)Employment in knowledge-intensive servicesGender employment gapUnemploy-ment rateAt-risk-of-poverty or social exclusionAccess to alternative fuel infrastructureCO2 emissions from fossil fuels per headGreen employment - in sustainable but competitive sectorsIndex EU-27 = 100Average annual % changeIndex EU-27 = 100Average annual % changeIndex EU-27 = 100Average annual % change% of GDP% of total employment% of total employmentDifference between men and women (percentage point)% of labour force% of total populationNumber of electric vehicles charging points within 10 kmtCO2% of total employment20232014-202320232014-202320222013-2022202220242024202420242024202220232020European Union (27 MS)1001.61000.61000.91.5349.241.510.05.921.02877.115.1Slovakia742.4791.3762.30.5642.836.68.95.318.3478.27.9Bratislavský kraj1480.41110.71082.20.7568.158.01.52.38.62207.734.7Západné Slovensko702.4751.3692.20.6439.029.99.53.315.8168.63.5Stredné Slovensko612.9661.4662.40.4439.333.89.05.118.1155.32.9Východné Slovensko543.2712.1692.50.3137.235.811.99.625.72810.54.6 
 
 
 
 
 
 
 
   
 
challenges  linked  to  teaching  quality  and  socio-
economic aspects (see Annex 12).  Less than 20% 
of the rural population resides within a 10-minute 
drive of a hospital, significantly lower than the EU 
average of 29% (Graph A17.3). 

Graph A17.3: Access to healthcare and primary 
education in rural areas, 2023 

Units: Percentage of population that can reach nearest 
hospital within 10 minutes by car (EU-27); Percentage of 
children under 15 years old who can reach primary school 
within a 15-minute walk (EU-24). 
Source: Eurostat 

Housing  affordability  is  an  issue  in  the 
capital  in  particular.  An  average  household  in 
the  Bratislava  region  needs  almost  18  years  to 
accumulate  the  average  price  of  a  100 m² 
dwelling,  while  in  the  other  regions  this  ranges 
between  8  and  13  years  (279).  While  Slovakia  has 
one of the highest rates of home ownership in the 
EU (92.5%), housing prices relative to incomes are 
also  among  the  highest.  The  rental  market  is 
underdeveloped,  and 
rental  housing 
represents  only  2.5%  of  the  total  housing  stock. 
More  people  were  overburdened  by  housing  costs 
in  Eastern  Slovakia  (8.6%)  than  in  the  other 
regions in 2024. Eastern Slovakia has the highest 
percentage  of  population  unable  to  keep  their 
homes adequately warm (15.8%). 

social 

While the risk of poverty is relatively low in 
Slovakia, improving the living conditions and 
social  inclusion  of  Roma  people  remains  a 
high priority.  Eastern  Slovakia  is  the  only  region 
in  which  the  percentage  of  people  at  risk  of 

poverty  or  social  exclusion  (23.1%  in  2022)  is 
higher than the EU average (21.6%). Worse labour 
market,  social  and  education  outcomes  in  regions 
with  a  high  presence  of  marginalised  Roma 
communities confirm the long-standing challenges 
of  Roma  inclusion.  Cohesion  policy  2021-2027 
allocates  significant  funding  to  projects  targeting 
Roma communities as well as municipalities with a 
population. 
significant 
Sufficient 
administrative  capacity 
in  fund  management, 
more expedite public procurement procedures  and 
resolving  problems  with  land  ownership  rights 
would help to enable much-needed investments. 

Roma 

Sustainability 

in  greenhouse  gas 
Regional  disparities 
emissions  persist  and  decarbonisation  has 
stalled  outside  the  capital  region.  Between 
1990  and  2023,  Slovakia  achieved  a  42% 
reduction  in  greenhouse  gas  emissions.  In  2023, 
per head emissions ranged from 5.3 tonnes of CO2 
equivalent  in  Central  Slovakia  to  10.5  tonnes  in 
Eastern  Slovakia.  Rapid  emissions 
reduction 
occurred  in  the  1990s.  While  Bratislava  achieved 
its  record  low  in  2023,  progress  towards  further 
decarbonisation has stagnated in Western, Central 
and Eastern Slovakia. 

Bratislava  surpasses  other  regions  in  green 
jobs  and  sustainable  mobility  infrastructure 
but  lags  behind  regional  peers.  Slovakia’s 
electric  vehicle  charging  infrastructure  requires 
significant  development.  While  Bratislava,  with 
220  charging  points  within  a  10 km  radius,  leads 
the  way,  it  still  lags  behind  neighbouring  capitals 
like  Vienna  in  Austria,  which  boasts  seven  times 
more  charging  points.  The  remaining  Slovak 
regions  fare  worse,  with  fewer  than  30  charging 
(280).  Green 
points  within  a  10 km 
employment  is  concentrated  in  Bratislava,  where 
35%  of  jobs  are  classified  as  sustainable  and 
competitive. This is significantly higher than in the 
other regions, where the percentage is below 5%. 

radius 

(279) OECD (2024), OECD Economic Surveys: Slovak Republic 

2024, OECD Publishing, Paris. 

(280) Indicators of access to alternative fuel infrastructure are 

based on calculations by DG REGIO and the JRC, using data 
from the European Alternative Fuels Observatory (EAFO), 
Eurostat, TomTom and Eco-Movement. 

111 

0204060Stredné SlovenskoBratislavský krajZápadné SlovenskoVýchodné SlovenskoSlovenskoEUAccess to healthcare (% of population)Access to primary school (% of children under 15 years old)