COMMISSION STAFF WORKING DOCUMENT 2026 Country Report - Slovenia Accompanying the document Recommendation for a COUNCIL RECOMMENDATION on the economic, social, employment, structural and budgetary policies of Slovenia
Date: 2026-06-03
Institutions: European Commission, Reform and Investment Task Force
Subjects: Slovenia, budget policy, economic policy, economic recovery, economic reform, employment policy, energy policy, investment, social policy, stability pact

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 3.6.2026  SWD(2026) 224 final  COMMISSION STAFF WORKING DOCUMENT 2026 Country Report - Slovenia Accompanying the document Recommendation for a COUNCIL RECOMMENDATION  on the economic, social, employment, structural and budgetary policies of Slovenia {COM(2026) 224 final}  
 
 
 
 
  
 
 
 
 
 
 
ECONOMIC DEVELOPMENTS AND KEY POLICY 
CHALLENGES 

target 

employed 

its  2030 

supply-side 

Labour market conditions remained tight, 
with  employment  growth  constrained  by 
structural 
factors. 
Employment decreased in 2025, due to fewer 
in  manufacturing. 
people 
Nevertheless,  it  remains  at  historically  high 
levels  with  employment  rate  at  78.3%,  well 
above the EU average (76.1%) and on track to 
(79.5%).  The 
achieve 
unemployment  rate  of  3.9%  in  2025  was 
slightly up from 2024, but still historically low 
and  well  below  pre-COVID  levels  (4.4%  in 
2019) (see Annex 11). In contrast, employment 
continued to grow in the public sector. Due to 
tight  labour  market,  overall  wage  growth 
remained  high  (7.1%).  This  was  supported  by 
public  sector  wage  increases  and  continued 
competition  for  skilled  labour  in  the  private 
sector.  Over  the  next  years,  labour  and  skills 
limit 
shortages  are  expected  to  continue 
employment growth but be partly alleviated by 
the  inflow  of  foreign  workers,  more  people  in 
work, and increased productivity. 

the  Harmonised 

In  2025,  headline 

Since  the  pandemic,  Slovenia’s  inflation 
has remained on average higher than the 
euro-area average. Inflation averaged 4.6% 
in Slovenia and 4.2% in the euro area between 
inflation  as 
2021-25. 
measured  by 
Index  of 
Consumer  Prices  was  2.5%  and  remained 
above the 2.1% in the euro area and the ECB’s 
medium-term  target.  Inflation  was  primarily 
driven  by  rising  food  prices,  driven  by  global 
commodity  trends,  and  wage  growth.  Thus, 
core  inflation  also  remained  persistent,  also 
reflecting  strong  price  dynamics  in  market 
services. Inflation is expected to remain above 
the  EU  average  due  to  higher  cost  for 
in 
companies  stemming 
(minimum) wages and increasing energy costs. 
Inflation  is  projected  to  reach  3.5%  in  2026 
and 2.5% in 2027. 

increases 

from 

Slower growth amid rising 
international tensions 

In 

In  2025,  GDP  growth 
in  Slovenia 
continued,  though  at  a  slower  pace 
compared  with  the  average  in  the  post-
pandemic  period.  The  year  was  marked  by 
unfavourable 
developments 
international 
causing  trade  disruptions  and  heightened 
the  Slovenian 
response, 
uncertainty. 
economy  slowed  as  the  export  performance 
weakened due to low growth in major trading 
partners  and  uncertainty 
that  negatively 
impacted  private  investments.  Nevertheless, 
real  wage  growth  picked  up  substantially  and 
increased  consumer  spending, 
resulted 
the  second  half  of  2025. 
in 
especially 
Furthermore, 
investment 
government 
increased  significantly  thanks  to  the  funds 
from the Recovery and Resilience Facility. GDP 
grew by 1.1%, below the EU average of 1.6% 
in 2025. 

in 

advanced 

economies. 

is  expected 

Despite  the  temporary  setback  in  2025, 
to 
Slovenia’s  economy 
resume its convergence path with the EU. 
Labour  productivity  in  Slovenia  is  at  around 
85.8%  of  the  EU  average,  indicating  that 
Slovenia continues to converge gradually with 
more 
Some 
competitiveness  concerns  remain.  The  real 
effective  exchange  rate  appreciated  in  2025, 
and hourly nominal unit labour costs increased 
above the euro area average due to high wage 
growth.  The  current  account  recording  a 
surplus of 3.5% of GDP in 2025 though export 
market share declined in both 2024 and 2025. 
Medium-term  growth  is  projected  above  the 
euro  area  average,  driven  by 
robust 
including 
consumption  and 
housing.  Growth  is  forecast  to  reach  1.9%  in 
2026 and 2.3% in 2027. 

investments, 

2 

 
 
The  housing  market  in  Slovenia  remains 
strained. The strong increase in house prices 
in Slovenia in recent years resulted in a higher 
price-to-income ratio in the country than in the 
EU  (106.9  against  98.9),  which  had  not  been 
the case for more than ten years. Rental prices 
(including  standing  and  new  rental  contracts) 
have soared since 2021 due to a shortage of 
available  housing,  especially  in  large  cities 
where residential and tourist demand remains 
strong. This further impacts vulnerable groups 
and hinders workers’ mobility. 

side, 

with 

persistent 

exacerbating 

inflow,  and 
the 

Urban 
facing 
rental  markets  are 
mounting  pressure  as  surging  demand 
collides 
supply 
housing 
constraints, 
shortages  across  key  cities.  Demand  for 
rental  housing  in  cities  is  driven  by  a  strong 
demand  for  student  accommodation,  foreign 
rising  single-person 
workers 
households.  On 
the 
supply 
Commission  estimates  a  cumulative  housing 
construction  gap  of  almost  63 000  dwellings 
over the period 2025-2035 (1) (see Annex 16). 
Demand for loans increased in the first half of 
2025, driven by lower interest rates and rising 
consumer  confidence.  A  number  of  structural 
factors  hinder  the  house  market  adjustment 
including 
policies, 
insufficient  legal  protection  for  both  lessors 
and  tenants,  lengthy  legal  and  administrative 
procedures, limited availability of services land 
and  underutilisation  of  the  existing  housing 
stock (see Annex 16). 

income 

rental 

tax 

between 

differences 

Credit  growth  picked  up  in  2025,  with 
notable 
the 
household  and  corporate  sectors.  Housing 
and consumer loans accounted for most of the 
increase  in  bank  lending  with  7.5%  year-on-
year  growth 
It  was 
favourable 
supported  by 
economic 
high 
employment and real wage growth, as well as 
declining  borrowing  costs  following  the  fall  in 
rates.  Moreover,  housing  market 
interest 
pressures  also  continue  to  drive  household 

the 
environment, 

in  September  2025. 

relatively 

including 

lending. Despite stable financial conditions and 
lending standards, bank credit to non-financial 
corporations  remained  weak,  reaching  2.2% 
year-on-year  growth 
in  September  2025, 
reflecting  persistent  uncertainty  weighing  on 
non-financial 
investment 
corporations’ 
decisions (see Annex 6). 

are 

tensions 

Slovenia faces  several economic  security 
challenges  linked  to  its  highly  open, 
export-oriented  economy.  Slovenia  has  a 
small  and  open  economy,  with  exports 
in  2025. 
accounting  for  78.6%  of  GDP 
heightening 
Geopolitical 
uncertainty  and  weighing  on 
trade  and 
investment  (see  Annex 5).  Disruptions  and 
restrictions  in  global  supply  chains  further 
affect  export-oriented  industries,  particularly 
manufacturing,  which 
closely 
integrated into  European production  networks. 
Moreover,  Slovenia  is  heavily  dependent  on 
imports  for  fossil  fuels  (see  Annex 9),  which 
has  led  to  significant  energy  price  increases 
and competitive pressures for energy-intensive 
industries  (accounting  about  5.2%  of  total 
manufacturing gross value added in 2024(2)). 

remains 

Increasing public sector spending 
will continue to weight on public 
finance 

Slovenia  faces 
increasing  fiscal  and 
structural  challenges  in  a  context  of 
rising  spending  pressures  from  ageing, 
post-flood 
reconstruction  and  public 
sector  wage  increases.  Under  its  medium-
term  fiscal  structural  plan  for  2025-2028, 
Slovenia  commits  to  limiting  net  expenditure 
growth,  aiming  to  maintain  its  deficit  below 
the 3% of GDP threshold and keep public debt 
on a stable-to-downward trajectory. According 
to the plan, achieving this target would require 
a  sustained  improvement  in  the  structural 
primary  balance  of  1.8 percentage  points  of 
GDP  between  2024  and  2028.  Structural 

(1)  Balouktsi et al. (2026) Housing investment needs in the 

EU, JRC Technical Report 144703. 

(2)  Eurostat, 2026, Gross value added and income by 

detailed industry (NACE Rev.2 ) 
(nama_10_a64), Ec.europa.eu.  

3 

 
 
 
 
reforms  were  adopted  to  ensure  long-term 
fiscal  sustainability  given  that  Slovenia  was 
facing some of the most acute long-term age-
related spending pressures in the EU. However, 
additional  fiscal  consolidation  measures  are 
needed to meet the fiscal targets and support 
potential growth (see Annex 2). 

The  general  government  fiscal  position 
weakened moderately in 2025 amid rising 
current  expenditure  and  a  cyclical 
slowdown  in  revenues.  The  government 
deficit in 2025 increased to 2.5% of GDP and 
government  debt  fell  by  0.7  percentage  point 
to  65.7%  of  GDP.  The  Commission  spring 
2026  forecast  projects  the  deficit  to  rise 
further  to  3.3%  of  GDP  in  2026  and  3.5%  of 
GDP  in  2027.  Public  debt  is  expected  to 
decrease to 64.9% in 2026 and then increase 
to 65.1% in 2027 (see Annex 2, Graph 1.1). 

Graph 1.1: Trends in general government debt 
and deficit (% of GDP) 

Source: European Commission Spring 2026 Economic 
Forecast. 

in 

current 
increases 
Structural 
complicates 
expenditure 
government 
medium-term  consolidation  efforts.  While 
the  introduction  of  a  new  long-term  care 
contribution  and  a  higher  CO2  emissions  tax 
increased  revenues  in  2024  and  2025,  they 
have  been  entirely  offset  by  a  structural 
increase  in  primary  spending  in  particular  for 
public  sector  wages  and  social  benefits. 
Alongside  current  spending,  high  levels  of 
public 
post-flood 
reconstruction  and  the  increase  in  defence 

investment 

including 

expenditure  are  adding  up  to  budgetary 
pressures (see Annex 2). 

Expenditure  on  defence  in  Slovenia  is 
increasing  over  time.  To  facilitate  an 
increase  in  public  spending  on  defence,  the 
Council  of  the  European  Union  has  activated 
the ‘national escape clause’ for Slovenia. Total 
government expenditure on defence amounted 
to  1.4% GDP in  2024  and  1.3%  GDP in  2025 
and is forecast by the Commission to be 1.6% 
in  2026  (Annex  2)  with  the  objective  of 
reaching up to 3% of GDP by 2030 under the 
Resolution 
Long-Term 
Development and Equipping Programme of the 
Slovenian Armed Forces up to 2040 (3). 

the  General 

on 

Climate  change 
increasingly  affects 
public finances. Scenario analyses show that 
the  long-term  costs  of  inaction  significantly 
exceed  those  of  climate  action (4).  Slovenia’s 
climate insurance protection gap, estimated at 
almost  97%,  highlights  potential  fiscal  risks 
data (5)).  Meeting  Slovenia’s 
(see 
mitigation and adaptation priorities will require 
additional  resources.  On  a  positive  note, 
Slovenia  is  using  tagging  to  include  green 
considerations  into  its  budgetary  decision-
making process (see Annex 2). This reform was 
introduced in 2024 as part Slovenia’s Recovery 
and Resilience Plan. 

EEA 

Improving the quality of spending 
and revenue mix 

important 

In  2025,  some 
legislative 
changes  were  carried  out  in  Slovenia 
addressing  the  fiscal  sustainability  of 
social 
key 
commitments  under  its  Recovery  and 

protection, 

fulfilling 

(3)https://www.gov.si/assets/ministrstva/MO/Dokumenti/resol

ucija40_1_slo_eng_info.pdf.  

(4)See  European  Commission  (2026),  Debt  Sustainability 
Monitor  2025,  Institutional  Paper No 332,  12  February 
2026.  

(5)Economic  losses  from  weather-  and  climate-related 
extremes in Europe | Indicators | European Environment 
Agency (EEA). 

4 

-2.00-1.000.001.002.003.004.005.006.007.008.009.000.010.020.030.040.050.060.070.080.090.0201920202021202220232024202520262027DebtDeficit(rhs)% of GDP 
   
 
legislative 

amendments 

on 
Recent 
healthcare  under  the  RRP  have  improved 
the  quality,  accessibility  and  fiscal 
sustainability  of  the  system.  However, 
capacity 
structural  bottlenecks 
constraints, labour shortages and long waiting 
times  remain  a  long-term  challenge  (see 
Annex 15).  The 
long-term  success  of  the 
pension  reform  depends  on  executing  its 
planned implementation schedule. 

including 

The  regular  assessment  of  spending 
efficiency  provides  a  tool  to  address 
rising  ageing  costs  and  improve  the 
overall quality of public finances. Slovenia 
has experience in producing analyses on public 
spending, but these are not yet integrated into 
the  annual  budget  process  (see  Annex 2). 
Although Slovenia has set up a ‘public internal 
financial  control  service’  at  the  Ministry  of 
Finance  and  addresses  individual  expenditure 
items, 
the  country  has  not  consistently 
implemented  regular  spending  reviews  to 
assess  public  spending,  identify  efficiencies 
and 
inform  budget  decisions.  Systematic 
assessment  of  spending  in  largest  areas  - 
social  protection  (17.1%  of  GDP),  healthcare 
(8%  of  GDP),  economic  affairs  (5.7%  of  GDP 
including  subsidies)  and  education  (5.5%  of 
GDP) (8)  –  could  produce  specific  reform  and 
efficiency recommendations and feed into the 
regular  budgeting  process  to  improve  fiscal 
sustainability. 
in 
Institutionalising 
these  sectors  increases  accountability  and 
facilitates  the  reallocation  of  resources  and, 
improves  the  quality  of  public 
therefore, 
services (9). 

reviews 

Initiatives  are  needed  to  assess  and 
improve  the  efficiency  of  both  current 
and  capital  expenditures.  On  the  current 
expenditure  side,  despite  an 
in 
spending  volumes  for  social  transfers,  the 
population rate of people at risk of poverty or 

increase 

(8)  SiStat, https://pxweb.stat.si/SiStatData/pxweb/en/Data/-

/0314950S.px/. 

(9)  For  example,  Slovakia’s  Ministry  of  Finance–working 
with 
relevant  sectoral  ministries–conducts  annual 
spending reviews of several major spending areas (e.g. 
health,  transport,  education,  environment).  Efficiency 
recommendations  from  these  reviews  inform  medium-
term budgeting and fiscal planning. 

Resilience  Plan  (RRP).  The  government 
adopted  the  pension  reform  in  September 
2025  which  became  effective  from  January 
2026.  At  the  same  time,  amendments  to  the 
healthcare  and  long-term  care  legislations 
were  implemented  (see  Annexes 12  and  15). 
Combined, the healthcare and pension reforms 
are  projected  to  generate  fiscal  savings  of 
1.8%  of  GDP  by  2040 (6).  The  pension  reform 
is  expected  to  lower  the  expenditures  by 
around  1 percentage  point,  based  on  the 
simulations  carried  out  by  the  Slovenian 
Institute of Economic Research. 

Slovenia’s 

However, 
rapidly-ageing 
population continues to exert pressure in 
the  medium  term.  According  to  the  IMF, 
spending  on  health  and  long-term  care  are 
projected  to  increase  by  1.1%  of  GDP  in 
2040 (7). Concurrently, a projected shrinking of 
revenue 
the  workforce  structurally 
generation 
security 
contributions,  increasing  the  risk  of  financing 
gaps  and  requiring  efforts  to  improve  the 
quality 
finance.  Moreover, 
supplementary  pensions  play  only  a  limited 
role  in  providing  retirement  income,  with  low 
coverage  and  limited  financial  depth  (see 
Annexes 2 and 6). 

through 

public 

social 

limits 

of 

for 

medium-term 

Slovenia's 
fiscal 
sustainability  depends  on  containing 
current  expenditure  and  implementing 
recently  adopted  structural  reforms.  The 
public  sector  wage  reform  implemented  in 
2025 carries estimated total costs of 1.8% of 
GDP 
the  entire  2025-2028  period. 
However,  in  2025  alone,  public-sector  wages 
already  increased  by  1.1  percentage  point  of 
GDP,  including  the  introduction  of  a  ‘14th-
month’  salary  bonus.  Subsequent  measures, 
such  as  minimum  wage  increases,  present 
risks of (I) overshooting initial salary increases, 
(ii) compressing 
and 
(iii) decoupling wage growth from productivity. 

the  wage 

scale, 

(6)  IMF,  Republic  of  Slovenia-Staff  report  for  the  2025 

Article IV Consultation, January 2026. Link. 

(7)  IMF,  Republic  of  Slovenia-Staff  report  for  the  2025 

Article IV Consultation, January 2026. Link. 

5 

 
 
 
measures have further increased the country's 
reliance on labour taxation, which accounts for 
52%  of  total  tax  revenues.  Social  security 
contributions  at  16.8%  of  GDP,  remain  well 
above the EU aggregate of 13% (see Annex 3). 
Capital  taxes  were  temporarily  increased  to 
fund  post-flood 
reconstruction.  However, 
capital  and  wealth  taxation  generally  remain 
below  the  EU  average,  leaving  a  persistently 
high labour tax wedge that can discourage job 
creation and have a negative effect on labour 
supply.  In  the  context  of  a  rapidly-ageing 
population  and  a  shrinking  working-age 
workforce, Slovenia's heavy reliance on labour 
taxes  may  pose  a  structural  risk,  and  shifting 
the tax burden away from labour toward more 
sustainable  bases  could  mitigate (14)  this 
impact.  Slovenia  makes  limited  use  of  less-
distortive  revenue  sources;  recurrent  property 
taxes  generate  revenues  well  below  the  EU 
average  and  starting  point  of  a  reform  have 
not been put forward (see Annex 3) (15). 

reported, 

In  line  with  the  need  for  systematic 
expenditure  reviews,  there  is  significant 
scope  to  evaluate  Slovenia’s  extensive 
system  of  tax  expenditures  to  improve 
fiscal  sustainability.  Although  these  are 
regularly 
the  system  –  which 
amounted to EUR 3.3 billion or 5.2% of GDP in 
2023  –  lacks  a  framework  to  evaluate  its 
necessity (16). 
economic 
Integrating  the  evaluation  of  tax  expenditures 
into the broader spending review process could 
simplify  the  tax  code,  reduce  administrative 
complexity and broaden the tax base. Such an 
approach  to  both  expenditure  and  revenue-
side measures would generate the fiscal space 
growth-enhancing 
required 

efficiency 

support 

or 

to 

(14)  European  Commission 

(2025),  Annual  Report  on 
Taxation  2025:  Review  of  taxation  policies  in  the  EU 
Member  States,  Directorate-General  for  Taxation  and 
Customs Union, June 2025, page 26. 

(15)  Ministry of Finance of the Republic of Slovenia (2025), 
Tax  Expenditure  Report  2023  (Poročilo  o  davčnih 
letu  2023),  Analysis  and  Tax  Policy 
izdatkih  v 
Coordination Department, Ljubljana, September 2025. 

(16)  European  Commission 

(2025),  Mind 

the  gap  – 
Challenges  and  opportunities  for  tax  compliance  and 
tax  expenditures  in  the  EU,  Directorate-General  for 
Taxation and Customs Union, December 2025, Country 
fiche: Slovenia. 

the 

large 

lack  of 

family  benefit  and 

social  exclusion  has  risen  for  the  fourth 
consecutive year largely driven by an increase 
in  the  at-risk-of-poverty  rate,  notably  among 
the  elderly  population (10).  This  suggests  that 
the  system  is  failing  to  reach  the  most 
vulnerable  households  (see  Annex 13).  Social 
benefits  must  be  harmonised  and  better 
targeted  to  produce  efficiency  gains.  For 
instance,  harmonising  the  fragmented  family 
support  –  currently  split  between  child 
benefits, 
tax 
allowances  –  into  a  unified  means-tested 
system with a gradual withdrawal mechanism 
would  address 
integration, 
eliminate  regressive  overlaps,  remove  income 
traps  and  prioritise  support  for  the  most 
vulnerable (11).  In  parallel,  sick  leave  rates 
have  increased  since  the  pandemic  and  the 
total  expenditure  on  sick  leave  benefits (12) 
now  exceeds  1%  of  GDP  and  measures  are 
being  introduced  to  improve  efficiency  while 
preserving  the  effectiveness  of  the  social 
safety net, including through the recent health 
reforms.  In  the  education  system,  there  is  a 
low  teacher-students  ratio  (2023:  10.9  vs  EU 
13.4) in primary education. In higher education 
there  are  high  dropout  and  non-completion 
rates  and  programmes  with  persistently  low 
enrolment  that  are  now  being  addressed  by 
performance-based 
new 
developing 
financing 
spending 
improve 
to 
effectiveness (see Annex 13). Slovenia’s public 
investments 
the  EU 
average,  but  the  Fiscal  Council  notes  that 
composition 
challenges 
persist (13). 

remain  well  above 

a 
system 

planning 

and 

There  is  significant  scope  to  improve 
Slovenia’s  tax  mix  and  make  it  more 
growth-friendly  and  sustainable.  Recent 

(10)  Social Scoreboard: 

https://ec.europa.eu/eurostat/cache/dashboard/social-
scoreboard/.   

(11)  OECD (forthcoming), The impact of harmonising benefit 
system  on  work  incentives,  redistribution  and  budgets: 
Supporting  benefit  reform  design  in  Portugal  and 
Slovenia. [under revision before publication]. 

(12)  European Commission, Eurostat [spr_exp_fsi]. 

(13)  Delakorda  A.  (2025),  ‘Public  expenditure  reviews:  good 
practices  and  the  situation  in  the  EU  and  Slovenia’, 
Fiscal  Council  document  No.  30-3/2025/1,  Fiscal 
Council, Ljubljana. 

6 

 
 
 
investments and improve the overall quality of 
public finances without raising statutory rates. 

Graph 1.2: Decomposition of rate of change of 
ULC 

Key competitiveness challenges 

inflation, 

Slovenia’s 
remained 
competitiveness 
under  pressure  amid  unfavourable  price 
and  cost  dynamics.  Price  competitiveness 
deteriorated  as  domestic 
rising 
producer  prices,  and  a  stronger  euro  reduced 
exporters’  relative  price  advantage.  Despite 
greater  external  demand  during  the  year, 
Slovenian  firms  faced  tighter  margins  as 
costs  were 
higher 
increasingly  passed  on  in  final  prices,  making 
them  less  competitive.  Cost  competitiveness 
also  weakened  since  wage  growth  outpaced 
labour  productivity  growth  (see  Graph  1.2). 
Consequently,  unit  labour  costs  remain  high 
(5.7%)  and  outpaced  the  EU  growth  (3.2%) 
and making Slovenia less competitive. 

labour  and 

input 

Despite  gradual  convergence  of  labour 
productivity  with  more 
advanced 
economies,  the  gap  with  productivity 
leaders  such  as  Germany  or  Austria 
remains  significant.  This  gap  partly  reflects 
lower  capital  intensity,  as  well  as  structural 
factors  such  as  differences  in  innovation 
performance,  sectoral  composition  and  firm 
size distribution. 

7 

(1) Unit labour cost (ULC) defined as the ratio between 
nominal compensation of employees per hour worked 
and real productivity per hour worked. Nominal 
compensation of employees per hour worked is further 
broken down into contributions from changes in real 
compensation and HICP inflation. 
Source: European Commission. 

Slovenia’s  growth-enhancing  investment, 
productivity  and  innovations  are  lagging 
behind  the  EU  innovation  leaders.  Private 
investments  lag  persistently  behind  the  EU 
average,  especially  due  to  low  levels  of 
intangible  investment  which  are  crucial  for 
labour  productivity  growth.  The  Slovenian 
business  environment  faces major  challenges: 
unstable  domestic  and  foreign  environment; 
skills  shortages,  high  administrative  obstacles 
both  for  domestic  companies  and  for  foreign 
trade. 
investors, 
Worsening  education  outcomes  and  relatively 
low  participation  in  adult  learning  are  further 
and 
hampering 
competitiveness.  Furthermore,  despite  overall 
favourable  access 
larger 
companies,  it  remains  a  challenge  for  SMEs, 
startups  and  scaleups.  There  are  some 
instruments  helping  to  fill  the  gap,  but 
underdeveloped  capital  market  continues  to 
weight on innovative-investment opportunities. 

to  finance  for 

economic 

including 

growth 

service 

for 

-6-4-2024681012141516171819202122232425PpsInflation (HICP)Real Compensation/hr.Productivity/hr. (neg. contrib.)ULCULC in EU27 
 
     
Regional disparities also affect access to 
public services. Slovenia also has challenges 
in providing access to key local public services, 
such  as  education,  healthcare  and  long-term 
care.  The  eastern  regions  record  substantially 
lower  accessibility  levels  than  the  western 
regions  and  Osrednjeslovenska,  negatively 
impacting  their  economic  development  and 
residents’ ability to remain in their region. 

funding 

instruments 

competitiveness, 

EU 
provide 
considerable  resources  to  Slovenia.  They 
support investments and structural reforms to 
environmental 
increase 
sustainability,  skills,  social 
fairness  and 
security,  while  helping  to  address  challenges 
identified in the CSRs. Key instruments include 
the  Recovery  and  Resilience  Facility  (see  Box 
2)  and  Cohesion  policy  funds  (see  Box  3).  In 
addition, the Common Agricultural Policy (CAP) 
provides  Slovenia  with  an  EU  contribution  of 
EUR 1.2 billion under the CAP strategic plan for 
2023-2027 (18).  A  further  EUR  238.8  million 
are available under the Asylum, Migration and 
Integration  Fund  (AMIF),  together  with  the 
Border  Management  and  Visa 
Instrument 
(BMVI)  and  the  Internal  Security  Fund  (ISF). 
support 
Other 
competitiveness 
instance 
through  open  calls  under  Horizon  Europe  and 
the Connecting Europe Facility. 

also 
in  Slovenia,  for 

programmes 

EU 

Key regional challenges 

Slovenia’s  regional  competitiveness (17) 
exceeds  the  EU  average,  but  disparities 
persist. High-value-added economic activities 
and  innovation  are  concentrated  in  the  west, 
particularly in the capital region, while eastern 
regions have low R&D investments and weaker 
productivity outcomes. GDP per capita is 136% 
of  the  EU  average  in  Osrednjeslovenska  (the 
capital  region),  while  it  is  just  50%  of  the  EU 
average in Zasavska region located in the east 
of the country.  

Regional disparities continue to persist in 
labour-market  outcomes.  Between  2014 
and  2024,  employment  growth  was  strongest 
in  the  Osrednjeslovenska  and  Obalno-kraška 
regions,  while  several  northern  and  eastern 
regions, 
including  Pomurska  and  Koroška, 
experienced  noticeably  slower  growth.  Inter-
regional  labour  mobility  is  still  low  and  skills 
development  levels  vary  across  regions.  The 
just  transition  from  coal  continues  to  be  a 
significant challenge, including in terms of job 
the  Savinjsko-Šaleška  and 
creation, 
Zasavska  regions,  which  are  benefiting  from 
the EU Just Transition Fund (see Annex 18). 

in 

Infrastructure  gaps  and  accessibility 
issues are a clear bottleneck for regional 
development.  Digital  connectivity  gaps  in 
remote regions and in predominantly rural and 
limit  the 
geographically  challenging  areas 
diffusion of digital technologies to households 
and  SMEs  outside  major  urban  centres.  Public 
transport  use  is  lowest  in  the  Koroška  and 
Obalno-kraška  regions  and  highest  in  the 
Osrednjeslovenska  region,  with  particularly 
pronounced  urban–rural  gaps  (see  Annex 18). 
There  is  a  structural  shortage  of  non-profit 
rental  housing,  with  the  highest  unmet  needs 
in  the  Osrednjeslovenska  (notably  Ljubljana), 
Savinjska,  Obalno-kraška  and  Podravska 
regions.  Housing  quality 
is  particularly 
problematic in the Pomurska region. 

(17)  As reflected by the Regional Competitiveness Index 

(RCI) 2022. 

(18)  An overview of  Slovenia’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/slovenia_en.  

8 

 
 
 
 
 
Box 1  UN Sustainable Development Goals (SDGs) 

Slovenia  performs  well  on  reduced  inequalities  (SDG 10)  and  poverty  and  basic  needs 
(SDG 1).  However,  the  percentage  of  people  at  risk  of  poverty  and  basic  needs  has  been 
rising  since  2021.  Slovenia  is  further  improving  on  most  SDGs  related  to  productivity, 
competitiveness and macroeconomic stability (SDGs 8, 9 and 16) but is moving away from 
the EU average on quality education (SDG 4). 

Challenges  persist  in  quality  education,  particularly  due  to  negative  trends  in  digital  skills 
(SDG 4), as well as in responsible consumption and production (SDG 12), particularly in the 
target for per capita waste generation. Slovenia’s performance is below the EU average on 
certain indicators, including on those related to environmental sustainability (SDGs 2, 9, 12, 
13), gender equality (SDG 5) and the partnerships for the goals (SDG 17). 

Box 2  Key achievements of the Recovery and Resilience Facility (RRF) 

Slovenia’s  recovery  and  resilience  plan  represents  a  total  budget  of  EUR 2.082 billion, 
corresponding to 3.3 % of GDP, aimed at supporting reforms and investments contributing 
to the green and digital transitions, strengthening economic resilience, and addressing long-
standing structural challenges identified in the European Semester.  

As  of  21  April  2026,  EUR 1.77 billion  (around  85%  of  the  total  allocation)  has  been 
disbursed  to  Slovenia  following  the  satisfactory  fulfilment  of  107 milestones  and  targets, 
[of which EUR 466 million in loans]. Implementation has progressed steadily, with a growing 
number of reforms and investments already fulfilled and delivering tangible results on the 
ground. 

Spillover  effects  from  other  EU  countries,  estimated  at  EUR 0.9 billion,  account  for  about 
30% of the total impact. 

Highlights and impact of the plan 

•  Long-term care. The entry into force of the long-term care act established long-
term  care  as  a  new  pillar  of  social  rights.  The  RRP  also  financed  investment  for 
newly built institutional care facilities. 

•  Pension  reform.  The  pension  reform  contributes  to  the 
sustainability of the pension system and the adequacy of pension. 

long-term  fiscal 

•  Cleaner commute. By renovating and upgrading four railway stations and  49 km 

of railway lines, Slovenia is improving public passenger transport. 

•  More resilient labour market. Setting up of a permanent short-time work scheme 

activated in the event of natural disasters and sudden economic crisis. 

•  Affordable housing. Construction of public rental housing in Slovenia primarily for 

socially disadvantaged and marginalised groups. 

•  Digitalisation of education and science. Improved high-capacity connectivity for 

educational institutions and public research institutes. 

9 

 
Box 3  Contribution of cohesion policy funds 

EU  cohesion  policy  funding  is  supporting  Slovenia’s  efforts  to  boost  competitiveness, 
environmental sustainability, skills and social fairness. In the 2021-2027 programming period, 
EU cohesion policy funds (19) are providing EUR 3.24 billion (amounting to EUR 4.32 billion with national 
co-financing), or 4.8% of 2024 GDP, to Slovenia. This makes cohesion policy one of the main sources of 
public  investment  in  the  country.  The  value  of  selected  projects  corresponded  to  65.5  %  of  the  total 
allocation as of March 2026, with additional calls for projects in the pipeline. 

• 

Innovation,  business  environment  and  productivity.  Nearly  EUR 775 million  has  been 
allocated for  research, innovation and SMEs’ competitiveness, and  more than EUR 258 million for 
the  regions  most  affected  by  the  transition  away  from  carbon-intensive  activities,  focusing  on 
economic  diversification  and  energy  restructuring.  Projects  are  already  underway,  with 
implementation progressing and expected to benefit nearly 10 000 enterprises of all sizes (micro, 
small, medium, and large). 

•  Decarbonisation,  energy  affordability  and  sustainability.  EUR 765 million  has  been 
dedicated to clean transition projects, out of which more than EUR 171 million to  climate change 
adaptation, resulting in better protection from floods, wildfires and other natural disaster for more 
than  1.1 million  people.  More  than  EUR 159 million  has  been  allocated  to  drinking  water  and 
wastewater  treatment  projects,  which  are  expected  to  improve  facilities  for  100 000  people.  A 
further EUR 83 million has been allocated to supporting energy-efficiency projects and activities. 

•  Skills, quality jobs and social fairness. EUR 580 million has been allocated to supporting skills 
development,  lifelong  learning  and  improving  the  labour  market  relevance  of  education  and 
training  systems,  as  well  as  enhancing  access  to  employment  and  social  inclusion  and 
strengthening  digital  and green  skills.  The  European  Social  Fund  Plus (ESF+)  also  supports better 
working  conditions,  social  inclusion  measures  and  access  to  education  for  vulnerable  groups, 
alongside strengthening social and long-term care services. Over 32 000 participants have already 
benefited  from  ESF+  operations.  In  addition,  EUR 30 million  has  been  dedicated  to  addressing 
material deprivation, providing food and basic assistance to the most vulnerable people. 

The  mid-term  review (20)  increased  cohesion  policy’s  contribution  to  emerging  strategic  priorities, 
reallocating funds of more than EUR 539 million. More than half of these reallocations support defence 
and civil preparedness, particularly military mobility along the EU’s main corridors and dual-use heath 
infrastructure.  The  mid-term  review  will  also  strengthen  competitiveness,  through  support  for  critical 
technologies,  improvements  in  energy  efficiency  and  increased  energy  connectivity  to  secure  clean 
electricity  supply  and  investments  in  more  affordable  housing.  Moreover,  Slovenia  will  develop  a 
nationwide skills action plan, address  cybersecurity challenges, and further invest in improving digital 
skills  and  promoting  quality  employment  and  decent  working  conditions.  In  addition  to  the  cohesion 
policy  funding,  Slovenia  will  be  allocated  almost  EUR 357 million  under  the  Social  Climate  Fund  over 
2026–2032 to help address the social impact of the new emissions trading system (ETS2), supporting 
vulnerable households and the most vulnerable groups affected by transport poverty. 

(19)  ERDF, ESF+, CF and JTF. 

(20)  The mid-term review is carried out halfway through the 

2021-2027 programming period. It is as formal 
assessment process required under Article 18 of the 
Common Provisions Regulation that aims to assess the 
implementation of programmes and, where necessary, 

propose adjustments to improve their performance, 
ensure their relevance in light of new and emerging 
needs and keep them aligned with other EU policies. 

10 

 
 
 
 
 
 
 
 
INNOVATION, BUSINESS ENVIRONMENT AND 
PRODUCTIVITY 

in 

and 

In  2025  the  Commission  recommended 
that  Slovenia  simplify  regulation,  reduce 
barriers  to  services  trade,  promote 
business  dynamism,  strengthen  venture 
research, 
invest 
capital, 
development  and  innovation.  Since  then, 
Slovenia  has  implemented  several  measures 
to foster business dynamism, such as creating 
improving 
a  one-stop-shop  for  business, 
access to investment through improvements in 
tax 
regulation,  and  adopting  a  start-up 
strategy.  However,  it  has  done  less  to  reduce 
barriers  to  services  trade  and  improve  access 
to finance for innovation-driven businesses. 

is 

in 

investment 

Creating  a  stimulating  environment  to 
support 
research, 
development  and  innovation  remains  a 
priority.  Research  spending  remains  below 
the  EU  average  and  the  relevant  national 
target.  Venture  capital  financing 
lower 
compared  with  peer  countries.  To  strengthen 
Slovenian business and the single market, it is 
crucial  that  reducing  cumbersome  regulation 
and  lengthy  procedures  remain  a  priority. 
Measures  such  as  development  of  domestic 
venture 
greater 
mobilisation  of  institutional  and  household 
savings  to  increase  the  supply  of  internally 
generated  funds  would  help  support  business 
investment 
Slovenia’s 
innovation  ecosystem.  It  remains  to  be  seen 
whether current initiatives can deliver on these 
objectives. 

capital  markets 

strengthen 

and 

and 

a  diverse  industrial  base  and  strong  exports, 
private  investment  (11.7%  of  GDP  in  2024) 
lags  behind  the  EU  average  (12.5%),  pointing 
to a persistent investment gap that constrains 
productivity  growth  (see  Annex 5).  Although 
investment  in  machinery  and  equipment  is 
broadly  in  line  with  the  EU  average  level, 
investment  in  R&D,  software,  databases,  and 
organisational  capital (21)  remains  low  due  to 
structural  factors,  creating  a  4.5%  GDP  gap 
with EU innovation leaders (22). 

Labour 

labour 

productivity 

has 
Slovenia’s 
continued  to  converge  gradually  toward 
the  EU  average,  but  too  slowly  to  offset 
rising labour costs and sustain long-term 
productivity 
competitiveness. 
remained  close  to  around  86%  of  the  EU 
average  reached  in  2025,  despite  weak  and 
volatile  growth.  Productivity  growth  in  recent 
years  has  been  modest,  reflecting  subdued 
investment,  especially  in  intangible  capital, 
skill  shortages,  particularly  in  the  ICT  sector, 
and  limited  reallocation  of  labour  toward 
higher  value-added  activities  (see  Annexes 4, 
5,  11  and  18).  The  working-age  population  is 
shrinking, 
the  need  for  vital, 
intangible  productivity-enhancing  investments 
to  maintain  and  increase  output.  Research 
indicates  that  intangible  capital  investment 
drives  40–50%  of  productivity  growth  across 
European  economies,  both  economy-wide  and 
sector-specific (23). 

increasing 

Boosting productivity and business 
dynamism 

Slovenian business investment, especially 
intangible  investment,  lagged  behind  the 
EU  innovation  leaders,  increasing  the 
productivity  and  innovation  gaps.  Despite 

(21)  The IMF’s organisational capital falls under the category 
of intangible assets, which also includes organisational 
structure, business strategy, brand, and intellectual 
property, in accordance with the established Corrado–
Hulten–Sichel (2005) classification.  

(22)  IMF Country Report No. 26/16: Republic of Slovenia: 

Selected Issues. January 2026.  

(23)  IMF Republic of Slovenia: Selected Issues. January 

2026, 
https://www.imf.org/en/publications/cr/issues/2026/01/2
3/republic-of-slovenia-selected-issues-573435.   

11 

 
 
 
Slovenia’s  company  productivity  growth 
is  equally  dispersed  and  to  a  lesser 
extent  driven  by  the  most  productive 
companies.  Based  on  the  OECD  micro-data 
study (24),  Slovenia  has  seen  high  within-
industry  productivity  growth.  From  2010  to 
2019,  as  well  as  2019  to  2023,  productivity 
growth  in  Slovenia  averaged  1.9%  and  1.7%, 
respectively,  compared  to  1.3%  and  0.8% 
during  that  same  period  for  the  median 
country  in  the  study.  However,  there  is  a  lack 
of  ‘creative  destruction’,  i.e.  less  productive 
firms  giving  way  to  new  ideas  and  business 
models. The 10% least productive firms in an 
industry  were  on  average  about  25%  as 
productive  as  the  10%  most  productive  ones 
over  2010-2023,  the  second-highest  in  the 
study’s  sample  of  countries,  while  the  10% 
most  productive  firms’  productivity  grew 
slightly less than in the median country in the 
study.  Slovenia  thus  has  low  productivity 
dispersion,  and  productivity  gains  were 
widespread across all parts of the productivity 
distribution,  possibly  indicating  that  there  are 
too  few  rapidly  rising  high-productivity  firms 
with radical innovations. 

for  higher  brackets,  impacting  negatively  the 
attractiveness  of  Slovenia  for  foreign  skilled 
workers  (see  Section 1).  In  addition,  despite 
the  significant  progress  in  digitalising  public 
services, Slovenia is still slightly below the EU 
average,  and  some  challenges  remain 
in 
ensuring  the  user-centricity,  interoperability 
and reuse of data across levels of government 
(see Annex 7). 

in 

and 

green 

Slovenia  continues  to  exhibit  persistent 
labour  shortages  and  skills  mismatches, 
digital 
particularly 
transition  sectors.  Despite  a  well-educated 
workforce,  including  a  strong  percentage  of 
STEM  graduates,  employers 
report  acute 
shortages of highly skilled labour, especially in 
ICT and green transition skills. In 2024, 63.9% 
firms  reported  ICT  skill  gaps  (among  the  EU’s 
highest), while adult digital proficiency (46.5%) 
lagged  behind  the  EU  average  (60.4%).  Skills 
shortages and the persistently low basic digital 
increasingly 
skills 
in 
and 
hindering 
innovation,  especially  due  to  the  lack  of  ICT 
specialists  and  advanced  digital  experts 
(country-specific recommendation CSR 5). 

the  workforce  are 

digitalisation 

business 

and 

and 

and 

foreign 

climate 

domestic 

uncertainty 

regulatory 
Policy 
inefficiencies  continue  to  constrain  the 
investment 
weaken 
competitiveness  within  the  EU  single 
market.  Slovenian  firms  cite  uncertainty  in 
the 
economic 
environment,  skills  shortages,  and  regulatory 
and  tax  burdens  as  key  investment  barriers 
(see Annexes 4 and 5). While external risk lies 
beyond country’s control, frequent revisions of 
the  tax  system,  and  uncertainties  about  the 
impacted 
general  policy  framework  have 
climate. 
negatively 
business 
Furthermore, 
regulatory 
requirements,  slow  permitting  processes  and 
formalities 
the  need 
physically  are  raising  compliance  costs  and 
operating  expenses.  This  discourages  both 
domestic  and  foreign  investment  and  hinders 
business  dynamism  (see  Annex 5).  Slovenia’s 
taxation  of  earnings  from  labour  (tax  wedge) 
is high across different levels, particularly high 

the 
excessive 

to  manage 

legal 

on 

(24)  OECD Insights on Productivity – Country Notes: Slovenia, 

January 2026. 

The  skills  gap  limits  the  adoption  of 
digital  technologies,  particularly  among 
SMEs,  and  prevents  the  labour  market 
from  adapting  to  the  needs  of  a  digital 
economy  (see  Annexes 4,  5,  11  and  18). 
Through  the  2026  skill  action  plan  under 
preparation, Slovenia has an ambition to meet 
its  2030  target  of  60%  adult  participation  in 
lifelong learning. However, its ability to attract 
foreign talent is hindered by low income levels 
due  to  high  labour  taxation,  limited  retention 
programmes, 
digitalisation. 
Addressing  these  challenges  is  vital  to  drive 
innovation and sustain competitiveness. 

and 

low 

recommended 

Slovenia’s  business  dynamism  remains 
slightly below the EU average. In 2025 the 
Commission 
that  Slovenia 
strengthen  competitiveness  by  promoting 
business  dynamism  and  the  creation  of  high-
growth  companies  through 
improving  the 
conditions  for  equity  investment.  Slovenia 
exhibits  moderate  business  dynamism,  with 
low entry and exit rates but strong early-stage 
performance  among  new  firms.  In  2024,  the 

12 

 
 
number  of  active  enterprises  in  Slovenia  rose 
by  2.4%,  but  their  turnover  fell  by  0.7% (25), 
the  first  decline  since  2020.  Moreover,  high-
growth  firms  and  gazelles  also  declined  in 
respectively, 
2024  by  6.5%  and  8.5%, 
reflecting weaker job creation. To counter this, 
a series of reforms including a one-stop shop, 
the  ‘STOP  the  Bureaucracy’  portal,  faster 
renewable permitting, and the Startup Strategy 
2030  aim  to  reduce  administrative  barriers, 
boost  venture  capital  and  provide  systemic 
support  for  positioning  Slovenia  as  a  hub  for 
high-growth start-ups (see Annex 5). 

261 

high 

regulates 

suppliers 
in 

face 
engineering, 

Slovenia’s  service  trade  remains  among 
the  EU’s  most  restrictive,  with  little 
progress  on  reform.  Barriers  to  the  single 
market  persist,  affecting  especially  service 
trade which was reflected in the 2025 CSR 3.1. 
barriers, 
Foreign 
and 
law, 
particularly 
architecture,  where  strict  stay 
limits  and 
complicated  qualification  recognition  stifle 
market  access  and  competition.  Moreover, 
Slovenia 
professions, 
significantly  more  than  the  EU  median  (200). 
Other  barriers  are  fragmented  regulatory  and 
language 
administrative 
in 
requirements.  Despite  a  gradual 
has 
services 
fully 
implemented 
the  2021 
Commission  recommendations (26)  in  the  field 
of  business  services  (and  partially  addressed 
two  others),  leaving  key  barriers  in  place. 
Finally,  easing  administrative  requirements  in 
the implementation of posting of workers rules 
could  reduce  regulatory  fragmentation  within 
the  single  market,  facilitate  cross-border 
mobility  and  foster  competitiveness,  without 
undermining workers’ protections  

Slovenia 
of 
one 

exports, 
just 

including 

rules, 

rise 

(25)  Compared to 2023, turnover fell most sharply in energy 
sector (by 23.0%), and grew the most in real estate 
activities (20.6%). 

(26)  European Commission, 2021, Communication on 

updating the reform recommendations for regulation in 
professional services, COM(2021)385. 9/7/2021, Eur-
lex.europa.eu. 

13 

Closing the innovation gap 

and 

juncture,  where 

Slovenia’s  innovation  ecosystem  is  at  a 
structural 
critical 
strengths  are  constrained  by  persistent 
underinvestment 
systemic 
inefficiencies.  Improving  the  conditions  for 
research, development and 
investments 
innovation,  was  among 
the  2025  CSRs. 
Despite  a  strong  high-tech  manufacturing 
sector  and  a  dense  pool  of  private-sector 
researchers, business R&D spending has fallen 
for  three  years  to  1.5%  of  GDP  (aligned  with 
the EU average), particularly among SMEs. 

in 

crises 

supply 

Vulnerability to external shocks, including 
chain 
and 
energy 
disruptions, 
fragility, 
revealed 
particularly  in  services  and  incremental 
innovation.  Slovenia’s  public  R&D  spending 
(0.64% of GDP in 2024) is rising but falls short 
of the 0.08% annual  growth needed  to hit its 
2030  target  (1.25%)  (see  Annex 4).  Public 
financial  support is  broadly  comparable  to  EU 
benchmarks,  but  it  disproportionately  benefits 
established  firms,  with  grant  caps  potentially 
limiting breakthrough  innovations. While  there 
are some positive emerging initiatives, such as 
strategic  funding  projects,  support  for  IPCEI 
targeted  support  for  high-
projects  and 
potential  proposals,  the  effective  deployment 
of alternative investment instruments will help 
Slovenia’s  innovation  capacity  and  its  full 
realisation. 

but 

Slovenia  performs  well  in  public-private 
co-publications, 
collaboration 
between  science  and  industry  remains 
fragmented.  While  ‘strategic  research  and 
innovation partnerships’ have helped maintain 
level  of  collaboration  between 
the  high 
business  and  academia,  evidenced  by  the 
number  of  public-private  co-publications, 
connections  within  the  innovation  ecosystem 
institutional 
are 
partnerships 
Public-private 
partnerships  in  Slovenia  vary  across  regions. 
‘Smart specialisation strategies’ align cohesion 
innovation 
policy 
priorities,  effectively  strengthening  regional 
innovation  capacities (see  Annex 18).  Slovenia 

lagging  and 
are 

long-term 
scarce. 

funding  with 

regional 

 
 
the 

reflects  the  relatively  underdeveloped  capital 
market  and 
limited  participation  of 
domestic  institutional  investors  in  financing 
innovative  companies  and  start-ups.  Equity 
market  capitalisation  remains  low,  amounting 
to  around  17.9%  of  GDP  at  the  end  of  2024 
compared  with  an  EU  average  of  67%  (see 
Graph 2.1). 
government 
provides  through  specialised  public  financial 
institutions, 
the 
Slovenian  Enterprise  Fund,  various  support 
mechanisms  for  start-ups  and  SMEs.  These 
play an important role in filling financing gaps 
by  providing  guarantees,  concessional  loans 
and equity instruments (see Annex 4 and 6).  

including  SID  Bank  and 

Slovenian 

The 

markets 

Less-developed  local  venture-capital  and 
growth-capital 
further 
compound the lack of funding sources for 
innovation,  which  is  a  key  element  for 
competitiveness.  Private  equity  and  venture 
capital  assets  are  significantly  below  EU 
averages  with  0.04%  and  0.01%  of  GDP  in 
2024,  compared  with  the  EU  averages  of 
0.46%  and  0.06%  of  GDP,  respectively. 
Domestic  institutional  investors  like  insurance 
companies  and  pension  funds  provide  little  in 
the way of funding for start-ups and venture-
capital  investors  due  to  the  less  developed 
capital  market 
(see  next  paragraph  and 
Annex 6).  However,  recent  policy  changes (29), 
including  reforms  to  improve  the  business 
environment,  facilitate  access  to  finance  and 
foster cooperation between public and private 
research  sectors,  could  unlock  some  funding 
possibilities  tailored  to  the  specific  needs  of 
start-ups, although these measures may need 
to be complemented by further policy actions. 

Due  to  less  developed  capital  markets, 
Slovenia’s  financial  system  struggles  to 
effectively  channel  household  savings 
investment. 
into  productive  corporate 
Slovenian  households  hold  a  large  proportion 

(29)  The  government  adopted  amendments  to  the  Income 
Tax  Act,  the  Corporate  Income Tax  Act,  the  Investment 
Promotion  Act  (part  of  the  RRP),  and  the  Act  on 
alternative  forms of  financing.  It has  also  adopted  the 
Slovenian 
‘Slovenian 
‘Startup  Strategy  2030’.  A 
Technology Fund’ that invests in SMEs was also set up 
as part of the Slovenian Enterprise Fund (see Annexes 4 
and 5). 

into 
struggles  to  turn  excellent  research 
successful products, partly due to complicated 
rules and a lack of  entrepreneurial culture, as 
well  as 
in  R&D  by 
Slovenian  businesses  which  is  below  the  EU 
average. 

investment 

limited 

Improving access to finance for 
innovation-driven business 

Access  to  finance  remains  a  challenge, 
especially for innovative start-ups, scale-
ups  and  SMEs.  Among  the  2025  CSRs, 
Slovenia  was  encouraged  to  promote  the 
creation  of  high-growth 
companies  by 
improving the conditions for equity investment 
(including  venture  capital 
investment)  for 
institutional  investors.  Slovenian  firms  rely 
heavily  on  internal  funding  and  bank  loans, 
while  financing  through  capital  markets  (such 
as equity or corporate bond issuance) remains 
limited.  Larger  and  older  firms  have  good 
access  to  funding,  but  some  companies, 
particularly  SMEs (27)  and  late-stage  start-ups 
and  scale-ups,  face  difficulties  in  accessing 
funding, 
intangible 
investment (28).  Access  to  finance  for  these 
groups  can  be  key  to  boosting  innovative 
investment and long-term competitiveness. 

especially 

for 

in 

still 

Slovenia 

Companies 
face 
relatively  limited  access  to  non-bank 
the  country  has 
funding,  although 
to 
implemented 
initiatives 
address 
issue. 
Listed shares and bonds represent only 9% (vs 
24%  in  the  EU)  of  external  sources  of  non-
financial  corporations  in  Slovenia.  This  largely 

several 
this 

(27)  According to the Bank of Slovenia on the Survey on the 
access  to  finance  of  enterprises  2025,  access  to 
finance  improved  for  large  enterprises,  while  SMEs 
reported worse access for almost all types of financing. 

(28)  Bank of Slovenia data shows that intangible assets (like 
intellectual  property or  patents)  secure  around  20%  of 
corporate  loans  across  the  euro  area  but  just  5%  in 
Slovenia,  where  their  use  has  steadily  declined.  This 
contrasts  with  the  EU’s 
rising  trend,  highlighting 
untapped  potential  for  businesses  to  use  intangible 
collateral  for  financing.  Review  of  macroeconomic 
developments, March 2026. 

14 

 
 
 
Graph 2.1: Composition of non-financial corporation’s and household financial assets in 2024, % 
of GDP 

Source: Eurostat and European Commission calculations. 

than 

in  market-based 

of  their  financial  assets  in  cash  and  deposits 
rather 
financial 
instruments.  In  2024,  Slovenian  households 
held financial assets worth just 119% of GDP, 
below  the  EU  average  of  212%,  with  equity 
investments  of  only  52%  of  GDP  (the  EU 
average was 91%) (see Graph 2.1). This partly 
in  securities 
reflects 
insurance 
markets,  pension 
products  compared  with 
the  EU’s  more 
developed economies (see Annex 6). 

lower  participation 

funds  and 

participation.  While 

the  percentage  of  household 
While 
financial assets allocated to pension and 
investment  funds  has  grown  in  recent 
years,  it  remains  below  the  EU  average. 
Pension assets amounted to only 7.1% of GDP 
in  2024 (vs 32.3%  in  the  EU),  representing 
the third lowest level in the EU. Also, the return 
on these assets is low  due to the limited role 
of  equities  in  the  funds,  possibly  further 
discouraging 
the 
household  saving  rate  stood  at  13.3%  of 
in  2024  (EU  average: 
disposable 
14.6%), placing Slovenia around the middle of 
EU countries, only a limited proportion of these 
savings 
productive 
investment. There is no automatic mechanism 
in  place  for  Slovenian  employees  to  join  the 
supplementary pension system (see Annexes 2 
and 6). In 2025, Slovenia introduced individual 
investment  accounts  to  encourage  individuals 
to  invest  long-term  in  financial  markets  to 
raise  funds  and  diversify  household  savings 

channelled 

income 

into 

is 

beyond  bank  deposits  and  thereby  strengthen 
the capital market. Moreover, for the third year 
in  a 
issued  new 
the  government 
government  retail  bonds  with  a  3-year  term 
and 3% interest rate. 

row, 

integration  with 

Slovenia  lacks  stronger  financial  cross-
border 
the  capital 
markets  in  other  EU  countries.  This  may 
help  mobilise  more  capital  over  the  longer 
term.  At  the  same  time,  savings  are  less 
connected  with  productive 
in 
Slovenia than in some other EU countries. This 
reflects  more  limited  depth  and  liquidity  of 
capital  markets,  lower  household  participation 
in  investment  products,  and  a  comparatively 
smaller  role  of  equity,  venture  capital,  and 
other market-based sources of financing. 

investments 

15 

050100150200250SIEULoansTrade credit and advancesBondsListed sharesUnlisted sharesOther equityNon-financial corporations050100150200250SIEUCurrency and depositsInsurance and pension fundsInvestment fundsBondsListed sharesUnlisted sharesOther equityHH Debt (liability)Households 
 
  
   
DECARBONISATION, ENERGY AFFORDABILITY AND 
SUSTAINABILITY 

and 

(CSRs) 

energy 

country-specific 
2025 
The 
recommendations 
on 
called 
Slovenia  to  accelerate  the  roll-out  of 
renewables 
storage, 
strengthen the electricity grid, accelerate 
the  implementation  of  energy  efficiency 
measures, promote sustainable transport 
and  strengthen  climate  and  water 
resilience.  Some  steps  have  been  taken;  but 
implementation  remains  partial  and  requires 
further attention. 

of 

taken 

renewables. 

Slovenia  has  made  little  progress  on  the 
deployment 
Slowing 
deployment  of 
solar  photovoltaics  and 
continued  reliance  on  fossil  fuels  impacts 
competitiveness and affordability. While some 
measures  have  been 
to  promote 
sustainable  transport,  Slovenia  still  faces 
significant  challenges  in  transitioning  away 
from  high  car  dependency.  It  has  also  taken 
some  measures  to  increase  water  resilience, 
but  challenges  remain  in  modernising  water 
fragmented 
restoring 
infrastructure, 
freshwater  ecosystems,  and  reducing  flood 
risk. Significant steps have been taken towards 
strengthening  Slovenia’s  climate  adaptation 
governance  with  the  adoption  of  the  new 
Climate Act. 

Accelerating the green transition 
to bolster competitiveness and 
energy affordability 

Reliance  on  fossil  fuels  and  limited  non-
fossil  flexibility  alternatives  continue  to 
affect  economic  competitiveness  and 
energy  affordability.  Slovenia’s  2025  CSRs 
called  on  it  to  accelerate  the  roll-out  of 
renewables  and  energy  storage  to  reduce  its 
reliance on fossil fuels and increase non-fossil 
in  2025,  wholesale 
flexibility.  However, 

16 

its 

in  Slovenia  averaged 
electricity  prices 
106 EUR/MWh,  which  is  higher  than  in  2024 
and  significantly  above  the  EU  average  of 
85 EUR/MWh.  Slovenia  remains  vulnerable  to 
structural 
price  spikes  because  of 
dependence  on  coal  and  natural  gas,  which 
still  account  for  nearly  a  quarter  of  its 
electricity  mix  and  are  marginal  price-setters 
(see  Annex 9).  Slovenia  plans  to  gradually 
phase-out coal by 2033. A higher proportion of 
renewable energy in the mix is associated with 
a  reduction  in  wholesale  electricity  prices  as 
sources  would 
near 
displace expensive fossil fuel generation. 

zero-marginal-cost 

The  deployment  of  solar  photovoltaics 
(PV)  has  continued  to  slow  down,  while 
wind  capacity  remains  stagnant.  In  2025, 
only  147MW  of  new  solar  PV  capacity  was 
installed  in  Slovenia  compared  to  390 MW  in 
2024.  This  continues  the  downward  trend 
following a surge in 2023 when over 405 MW 
of 
installed. 
Furthermore, the wind capacity in Slovenia has 
remained marginal (4 MW) and unchanged for 
over a decade (see Annex 9). 

capacity  was 

solar 

PV 

has 

includes 

Slovenia 

implemented 
While 
important  reforms  related  to  permitting 
as part of its recovery and resilience plan 
(RRP),  administrative  constraints  hamper 
the  full  potential  of  renewables  in  the 
country.  This 
the  absence  of 
designated 
renewable  acceleration  areas, 
which  would  remove  the  need  for  project-
specific environmental impact assessment and 
significantly  accelerate  the  permit-granting 
procedures.  Another 
local 
limited  capacity  to  handle 
municipalities’ 
complex permitting applications and to engage 
better  with  local  communities  to  support  a 
more 
process. 
Designating renewable  acceleration areas and 
increasing  the  capacity  of  local  municipalities 
could  help  ensure  projects  are  implemented 

permit-granting 

constraint 

effective 

is 

 
 
smoothly,  thereby  providing  benefits  at  both 
the local and national levels. 

is 

The integration of new renewable energy 
increasingly  hindered  by 
sources 
current  limitations  in  grid  capacity.  While 
Slovenia  has  increased  its  investment  efforts 
in  recent  years,  including  by  allocating  funds 
from  its  RRP  and  cohesion  policy  programme, 
network  challenges  still  persist  (see  Annex 9). 
Factors  such  as 
the  decentralisation  of 
electricity production, the rise of electrification 
in heating and transport, and the growing need 
for  storage  and  flexibility  mean  the  network 
needs continuous robust reinforcement. 

in 

needed 

efforts  are 

to 
Continued 
implement  energy  efficiency  measures 
across  sectors,  particularly 
the 
building  sector.  The  2025  CSRs  called  on 
Slovenia  to  accelerate  the  implementation  of 
energy efficiency measures, particularly in the 
final  energy 
building 
sector.  Slovenia’s 
in  2024  to 
consumption  rose  by  2.4% 
4.59 million  tonnes  of  oil  equivalent  (Mtoe), 
reversing  years  of  decline  and  nearing  its 
2030  target  of  4.319 Mtoe.  While  industry, 
services and residential sectors cut energy use 
since  2019  (down  22.3%,  4.2%  and  7.6% 
respectively), transport consumption  increased 
slightly  by  0.1%.  Most  residential  savings 
like 
technical 
came 
renovations, aligning with Slovenia’s long-term 
renovation  strategy,  which  targets  a  17% 
energy reduction by 2030 (see Annex 9). 

upgrades 

from 

to 

loans 

The  country  relies  on  a  limited  mix  of 
fund  energy 
grants  and 
funds  are 
investments.  EU 
efficiency 
supporting  progress.  Under  the  RRP,  energy 
than  80 000 m2  of 
renovation  of  more 
is  underway  and  38 000 m2  of 
buildings 
upgrades  of  ventilation  and  cooling  systems 
has  been  completed.  Under  cohesion  policy 
programmes,  energy  renovation  of  more  than 
40 000 m2  of  buildings  is  underway.  A  draft 
renovation  plan  signals 
national  building 
commitment to decarbonising buildings, which 
account  for  30.5%  of  final  energy  use.  Yet 
heating  and  cooling  still  dominate  residential 
demand  (77%),  with  renewables  covering  just 
34%  of  the  sector’s  needs  (see  Annex 9). 
Without  stronger  financing  tools  and  faster 

renovation  rates,  Slovenia  risks  missing  its 
energy  efficiency  targets  while  staying  overly 
reliant on fossil fuels. 

Increasing the availability and 
uptake of sustainable transport 

Despite 
including 
important  efforts 
recent  reforms  under  the  RRP,  planned 
measures  under  the  National  Energy  and 
Climate  Plan  as  well  as  EU  and  national 
funds  support  to  sustainable  mobility, 
Slovenia  faces  a  significant  challenge  in 
transitioning from high car dependency to 
sustainable  mobility.  The  2025  CSRs  called 
on  Slovenia  to  promote  the  electrification  of 
the transport sector and focus investments on 
sustainable  transport,  particularly  rail.  Road 
transport remains the  dominant  source  of 
growing  emissions,  air  pollution  and  energy 
consumption in the sector. These values are all 
above  the  EU  average  (see  Annex 8).  This 
underscores  the  need  for  further  action, 
particularly  in  industrial  regions  and  urban 
transport hubs. 

The  electrification  of  transport  is  still 
lagging  behind.  Many  large  railway  and  e-
mobility  investments  under  the  RRP,  Cohesion 
Fund and Connecting Europe Facility (including 
Alternative  Fuels  Infrastructure  Facility)  are 
close  to  completion,  contributing  to  important 
improvements  to  the  railway  network  and  to 
the  increase  in  zero-emission  vehicles  and 
charging infrastructure. Yet, challenges remain. 
Access 
infrastructure 
in  the 
is only comparable to  EU  standards 
capital  region,  with  other  regions  well  below 
EU average (see Annex 18). Further efforts are 
Fuels 
needed 
Infrastructure 
The 
Regulation 
infrastructure for charging heavy-duty vehicles 
remains limited across the country. 

to  alternative 

to attain the 

Alternative 

targets. 

fuel 

The  railways  also  need  more  attention. 
For railways, advancing resilient infrastructure 
along  the  TEN-T  corridors  by  2030  (with  a 
focus  on  removing  the  bottlenecks  on  the 
Koper-Divača  and  Divača-Ljubljana  sections), 
and preparing high-speed rail lines (prioritising 

17 

 
the  Ljubljana-Maribor  section)  would  help 
achieving the modal shift. Further investments 
are  also  necessary  on  cross-border  sections 
(see  Annex 19).  Decommissioning  the  legacy 
signalling  system  remains  a  priority.  More 
attention  must  be  given  to  the  above-
mentioned  railway  sections  and  to  adapting 
the  port  of  Koper  adaptation  to  dual-use 
requirements. 

- 

the 

frequency, 

Sustainable  passenger  transport  supply 
and uptake remain low and uneven across 
the  country  (see  Annex 18). The  low  uptake 
can  be  addressed  by  firstly  improving  the 
supply  side 
reliability, 
accessibility  and  availability  of  national, 
regional  and  local  rail  and  bus  transport.  This 
requires  measures  to  address  staff  shortages 
in the sector as well as soft measures such as 
better  coordination  of 
timetables,  single 
ticketing  for  different  modes  of  urban  and 
municipal  transport,  and  accessible  payment 
options.  The  significant  gap  in  the  availability 
of  public  passenger  transport  in  urban  and 
rural areas also needs to be addressed. 

passenger 

sustainable 

Much  remains  to  be  done  in  this  sector. 
While  the  governance  of  the  sector  has  been 
reformed,  the  results  are  yet  to  be  seen. 
Together  with  ensuring  additional  availability 
of 
transport, 
commuting costs policies could be reformed to 
support  more  low  carbon  options.  Under  the 
EU’s TEN-T Regulation, Slovenia must  develop 
at 
least  one  multimodal  passenger  hub 
equipped  with  recharging  infrastructure  for 
buses and coaches in both TEN-T urban nodes 
by  2030  to  increase  efficiency  and  optimal 
integration of urban nodes. The finalisation of 
the  Ljubljana  Hub  with  the  largest  population 
of  commuters  would  be  a  priority  in  this 
regard. 

Strengthening climate and water 
resilience, sustainable water 
management and environmental 
protection 

Slovenia  has  significantly  strengthened 
governance 
adaptation 
its 

climate 

18 

to  heavy 

framework. Slovenia is highly vulnerable and 
frequently  exposed  to  climate-related  risks, 
particularly 
floods,  heatwaves, 
droughts and forest fires, whereby these risks 
are  unevenly  distributed  across  regions  (see 
Annex 18). The intensifying impact of climate-
related  risks  has  also  had  a  clear  negative 
impact  on  the  Slovenian  economy  in  the  past 
years.  Some  progress  has  been  made  to 
further 
resilience, 
adaptation and preparedness, as set out in the 
2025  CSRs. 
In  this  regard,  Slovenia  has 
adopted a new Climate Act in 2025, which put 
in 
top-down 
governance  framework  and  represents  an 
important  step 
(see  Annex 10). 
forward 
However,  this  is  only  the  beginning  of  the 
process,  and  the  effective  implementation  of 
resilience  and  adaptation  policies 
is  still 
lagging at national, regional and local level. 

comprehensive 

strengthen 

climate 

place 

a 

the 

the  already  delayed 

However, 
remain. 
further  challenges 
Despite  national  efforts  and  support  from  EU 
funds  to  ensure  the  implementation  of  the 
necessary measures, challenges also remain in 
implementing 
flood 
protection  measures, 
insufficient 
administrative  capacity,  and  the  sub-optimal 
coordination  between  different  stakeholders. 
Nature-based  solutions  play  a  key  role  for 
increasing  climate  and  water  resilience.  Some 
to  mainstream  and 
steps  were 
accelerate the deployment of such solutions in 
2025,  but  they  have  not  yet  been  deployed 
widely and systematically across all sectors in 
Slovenia  (see  Annex 10).  In  addition,  Slovenia 
has  one  of  the  lowest  insurance  coverage 
rates against natural disasters in the EU, which 
is particularly problematic in the case of floods 
and coastal floods (see Annex 10). 

taken 

Despite Slovenia’s efforts, there continue 
to  be  persistent  inefficiencies  in  water 
management.  The  law  on  drinking  water 
supply and on the collection and treatment of 
urban  wastewater  -  adopted  in  2025  under 
the RRP - is expected to ensure the long-term 
sustainability of water infrastructure financing 
and  make  water  management  more  efficient. 
There  are  ongoing  efforts  to  modernise  the 
wastewater  and  drinking  water  infrastructure 
both  with  EU  and  national  funds.  However, 
there  is  still  an  investment  gap  in  the  water 

 
treatment 

treatment,  which 

sector,  particularly  for  wastewater  collection 
and 
leaves  many 
agglomerations  without  an  adequate  level  of 
wastewater 
Annex 10). 
Challenges  also  remain  in  terms  of  ensuring 
sustainable  water  management. 
Some 
measures  have  been  taken  to  reduce  water 
abstraction, but rivers continue to suffer from 
fragmented  ecosystems,  a  poor  ecological 
status of surface water and the risk of floods. 

(see 

Slovenia  has  a  biodiversity-rich  natural 
environment,  which  is  under  substantial 
is 
pressure.  Almost  41%  of  Slovenia 
designated  as  a  protected  area  and 
its 
economy  is  highly  dependent  on  its  natural 
resources  and  ecosystem  services.  Key 
economic  sectors  (such  as  tourism,  the  food 
sector,  agriculture,  forestry  and  construction) 
are  particularly  vulnerable  to  nature  loss  and 
nature  degradation  (see  Annex 10).  Despite 
efforts  to  protect  Slovenia’s  nature  and 
to 
ecosystems, 
their 
the 
deteriorate,  which 
country’s  climate  and  water  resilience  and 
highlights the financing gap. 

status 
continues 
further  weakens 

19 

 
SKILLS, QUALITY JOBS AND SOCIAL FAIRNESS 

pupils, 

learning. 

In  2025  the  Commission  recommended 
that  Slovenia  address  labour  shortages 
by  strengthening  the  provision  of  skills 
and  competences,  including  basic  skills 
among 
increasing 
and 
It 
in  adult 
participation 
encouraged  Slovenia  to  make  the  country 
more  attractive  for  highly  skilled  foreign 
workers  and  to  improve  working  conditions, 
particularly in the healthcare, social and long-
term  care  and  education  sectors.  Slovenia 
stepped up reforms and investments under its 
recovery and resilience plan (RRP) and through 
cohesion  policy,  but  their  results  remain 
uneven. Low participation in adult learning and 
workforce  shortages 
(particularly  teachers, 
doctors, nurses, caregivers, and IT experts) risk 
slowing  the  delivery  of  reforms  and  limiting 
their impact. 

Labour shortages and skills 
mismatches persist 

Persistent  labour  shortages  and  skills 
mismatches  undermine  competitiveness. 
With  an  employment  rate  of  78.3%  in  2025, 
Slovenia  is  well  on  track  to  reach  the  2030 
national  employment  rate  target  of  79.5%. 
Overall,  job  vacancy  remained  stable  (2.2%) 
and  slightly  above  the  EU  average (2.1%)  but 
were  higher 
(see 
Annex 11). In 2025, Slovenia's macroeconomic 
skills  mismatch  exceeded  the  EU  average 
(19.9%  compared  to  19.2%  in  the  EU),  with 
half  of  the  workforce  unable  to  utilise  their 
skills  or  lacking  basic  skills.  This  suggests  a 
possible  misalignment  between  education 
programmes and labour market demands. 

in  several  professions 

More  than  half  of  Slovenian  companies 
report  difficulties  in  recruiting  suitable 
workers.  There  is  a  notable  shortage  of  ICT 
professionals  to  support  the  demands  of  the 

in  healthcare, 

digital  and green transition, with even greater 
long-term 
deficits  observed 
care,  and  education  sectors  (see  Annex 11). 
Roughly  80%  of  employers  in  these  sectors 
report  difficulties 
finding  workers,  also 
reflecting  demanding  working  conditions  and 
uncompetitive renumerations. The latter is also 
influenced  by  higher  tax  wedge  than 
in 
neighbouring countries. 

Graph 4.1: Labour market developments 

Source: Eurostat, LFS 

The  Slovenian  economy 
increasingly 
relies  on  foreign  workers.  Because  of 
negative  demographic  trends  and  persistent 
labour  shortages,  Slovenia  rapidly  employed 
more foreign workers (30)  mainly from non-EU 
countries (31). 
free 
language  courses,  information  points  and  a 

introduced 

Slovenia 

(30)  The number of foreign workers residing in Slovenia rose 
by  37.5%  between  2020  and  2025  to  214.931,  while 
the  number  of  employed  foreign  workers  in  the  same 
period increased by 48.4% to 148.074. 

(31)  Slovenia had the highest proportion of foreign residents 
among  eastern  EU  countries  before  Russia’s  full-scale 
invasion of Ukraine. 

20 

0.01.02.03.04.05.06.07.08.09.010.064.066.068.070.072.074.076.078.080.0Employment rate 20-64 (lhs)Unemployment rate 20-64 (rhs)Job vacancy rate (rhs) 
 
   
 
single  permit  system  for  work  and  residence, 
but integration remains difficult. Nevertheless, 
the  environment  for  foreign  workers  presents 
challenges  for  rapid  and  inclusive  integration, 
including cumbersome work permit procedures 
and  qualification  recognition,  difficulties  with 
the  access  to  affordable  housing,  healthcare, 
education,  and  childcare,  and  varying  public 
perception of migration (see Annex 11). 

economic 

Slovenia  faces  challenges  in  attracting 
high-skilled  foreign  talent,  essential  for 
competitiveness. 
boosting 
Slovenia took important steps to attract highly 
skilled  workers  from  abroad,  including  tax 
incentives 
for  high-skilled  non-residents, 
requirements  and 
easing  EU  Blue  Card 
introducing  a  digital  nomad  visa,  but  their 
impact  remains 
limited.  A  comprehensive 
talent  strategy  could  help  further  simplify 
qualification-recognition 
immigration 
procedures  and  expand  English-language 
higher 
and 
international  partnerships  to  attract  foreign 
students.  Competitive  wages 
in  high-skill 
sectors  such  as  ICT  and  research,  along  with 
strengthened  integration  and  family  support 
measures, could also help retain talent. 

programmes 

education 

and 

that 

applies 

Slovenia adopted a reform of the pension 
system 
from 
1 January 2026. Adopted as part of the RRP, 
the  reform  will  gradually  raise  the  legal 
retirement  age  from  65  to  67  with  minimum 
15  years  of  insurance  period  and  from  60  to 
62  with  minimum  40  years  of  pension 
qualifying  period.  (see  Annex 12). The  reform 
extends  the  reference  period  of  pension 
calculation and increases the accrual rate from 
63.5%  to  70%  for  40 years  of  work,  thus 
improving  both  sustainability  and  adequacy 
aspects  of  the  pension  system.  Moreover,  an 
increase  of  survivor’s  pensions  and  other 
benefits such  as the  newly  introduced  winter 
allowance  are  expected  to  further  improve 
pension  adequacy  and  living  standard  of 
reform 
retirees.  A 
restricted  older  employees’  access  to  a  very 
long  unemployment  benefits  period. 
In 
combination  these  measures  are  expected  to 
increase both the effective retirement age and 
the  workforce.  Older  people  were  also 
long-term 
among 
overrepresented 

complementary  RRP 

the 

unemployed  (see  Annex 11).  Labour  market 
reforms are expected to improve this situation 
when  fully  implemented.  In  addition,  further 
inclusion of older workers in  the active labour 
market  policies,  which  have  a  positive  impact 
on this group, is important (32). 

Improving working conditions to 
tackle the shortage of workers 

Slovenia  continues  to  face  workforce 
shortages  in  certain  sectors,  particularly 
healthcare,  social  and  long-term  care 
(LTC). In 2025 the Commission recommended 
improving  job  attractiveness  in  these  sectors. 
Despite  several  reforms  and  policy  measures 
under  the  ESF+  and  the  RRP,  there  is  still  a 
care  workers  and 
critical  shortage  of 
healthcare  professionals,  both  in  hospitals, 
homes  for  elderly  and  in  home-care  services. 
The number of doctors, nurses and caregivers 
per  inhabitant  in  Slovenia  is  below  the  EU 
average, while social workers are also in short 
supply  (see  Annexes 12  and  15).  Workforce 
shortages  are  exacerbated  by  poor  working 
conditions (33), absenteeism (34), high workload, 
high turnover and an ageing workforce. 

Salary  levels  and  the  public  sector  pay 
structure have been a source of tensions 
and strikes in recent years and important 
steps  have  been  taken  to  improve  the 
public  sector  wage  system.  The  recent 
public  sector  wage  reform  is  expected  to 
address  many  of  the  problems  in  some  of 
these key sectors. Workforce shortages in LTC 
result  in  the  inadequate  provision  of  LTC 
services  (especially  home-based  care),  long 
waiting  times,  and  empty  beds  in  homes  for 
the  elderly.  Tacking  these  shortages  requires 

(32)  Amendments to the Labor Market Regulation Act and 
Employment Relationships Act were adopted in 2025. 

(33)  Physically and emotionally demanding work conditions 
paired with low wages relative to responsibilities. 

(34)  Health professionals in Slovenia report some of the 
highest rates of depression across the EU. Mental 
Health of Nurses and Doctors survey in the European 
Union, Iceland and Norway. 

21 

 
 
improving  working  conditions  and 
further 
professional  development,  setting  up  the  IT 
system  to  speed  up  the  delivery  of  LTC 
services,  developing  sustainable  recruitment 
integrating  migrant 
strategies,  effectively 
workers  and  establishing  community-based 
service  models  with  the  assistance  of  social 
economy entities. 

participation 

and 
processes (36). 

in 

decision-making 

Basic skills are key for a 
competitive economy 

teachers’ 

in  STEM 

shortages, 
Addressing 
particularly 
subjects  and 
languages, presents a challenge. According 
to  the 2024 TALIS Survey, Slovenian teachers 
are less satisfied with their salaries and report 
a higher administrative burden. The increasing 
diversity  of  the  student  population  makes 
teaching  more  challenging.  The  country  has 
already  taken  measures  to  address  teacher 
shortages  by  raising  funding  for  scholarships 
for students in teacher-education programmes 
and  by  gradually  raising  teacher  salaries. 
However,  the  effects  are  not  yet  visible. 
Teacher shortages persist, particularly in STEM 
subjects,  English,  Slovenian  and  special  needs 
education.  Other  challenges  include  the  low 
prestige  of  teaching  in  Slovenia  and  limited 
promotion  of  alternative  pathways  into  the 
profession (see Annex 13). 

The  declining  basic  skills  level  poses  a 
risk  to  human  capital  development  and 
the  competitiveness  of  the  economy.  The 
2022  OECD  PISA  survey  on  students’  skills 
revealed  a  concerning  trend:  nearly  25%  of 
15-year-olds  failed  to  reach  the  minimum 
proficiency  level  in  mathematics  and  reading. 
Overall  declining  basic  skill  levels  weaken  the 
skills  foundation  needed  for  upskilling  and 
reskilling 
fast-changing  economy. 
Moreover, according to the 2023 International 
Computer  and  Information  Literacy  Study, 
around half of the students are low achievers 
in  digital 
teacher 
shortages  contribute  to  the  declining  basic 
skills.  Nearly  80%  of  basic  schools  employ  at 
least 
adequate 
qualifications,  while  in  special  schools  it  is 
almost 33% of the staff.  

literacy.  Widespread 

teacher  without 

in  a 

one 

Slovenia  performs  well  on  most 
job 
quality dimensions, but certain challenges 
remain. Though boasting low in-work poverty 
rates  and  a  rather  low  percentage  of  low-
wage earners, earnings satisfaction in Slovenia 
is  constrained  by  relatively  lower  wage  levels 
and  perceived  gaps  between  effort  and 
remuneration (35). The Slovenian labour market 
is  characterised  by  high  levels  of  job  and 
career security, but working conditions require 
attention, particularly health at the workplace. 
Absenteeism is above the EU average and the 
number  of  fatal  accidents  at  work  is  higher 
than  in  other  EU  countries  (2.23  vs  1.63  per 
100 000  workers  in  EU  in  2023).  Another 
challenge  is  limited  employee  representation 

Slovenia  has  taken  measures  to  reverse 
the declining basic skills trend for pupils. 
The  revised  curricula  for  basic  and  secondary 
schools  are  expected 
to  be  gradually 
introduced  from  the  2026/2027  school  year. 
Digital  skills gaps will be addressed by  a new 
compulsory subject on  Informatics and  Digital 
Technology introduced in the seventh grade of 
basic school starting in the 2028/2029 school 
year.  At  the  same  time,  digital  competences 
are  being  strengthened  already  through  the 
revised  curricula  for  primary  and  secondary 
education, to be introduced gradually from the 
2026/2027  school  year.  Challenges  involve 
(i) ensuring targeted training for all teachers to 
support  the  effective  implementation  of  the 
revised  curricula,  (ii) improving  the  general 
level  of  basic 
(iii) tackling 
skills,  and 
introducing 
in  education,  by 
inequalities 
measures  to  help  disadvantaged  schools  and 

(35)Wages  in  Slovenia  are  strongly  concentrated  close  to 
the  minimum  wage,  and  two  thirds  of  employees 
receive  a  lower-than-average  wage.  Source:  IMAD 
Analysis on Minimum Wage, August 2025. 

(36)  IMAD Quality of Life in Slovenia, Development Report 

2025, p.104. 

22 

 
 
 
students,  such  as 
additional methodological support. 

targeted  financing  or 

Strengthening adult learning is 
crucial to unlock the reskilling 
potential across the workforce 

on 

past 

groups 

learning 

vulnerable 

in  adult 

learning.  While 

Low  participation 
learning 
combined  with  labour  shortages  hamper 
Slovenia's  competitiveness.  In  2025  the 
Commission recommended that Slovenia boost 
the  acquisition  of  skills  and  competences  and 
lifelong 
efforts 
in 
concentrated 
particular,  improving  the  participation  of  the 
overall  adult  population  in  adult  learning 
remains  a  challenge  for  reaching  the  2030 
national  target  on  adult 
(60%). 
Slovenia  is  developing  a  national  skills  action 
plan and is committed to expanding measures 
to  promote  lifelong  learning,  strengthening 
career  guidance,  and  ensuring  labour  market 
relevance  of  upskilling  and  reskilling.  The 
action  plan  will  be  based  on  broad 
consultations  of  relevant  authorities,  social 
partners  and  other  stakeholders, 
taking 
account  of  evaluations  of  past  measures  and 
a  new  labour  market  platform  for  long-term 
skill forecasting. The plan is set to be adopted 
in 2026 with a view to boosting adult learning, 
both  under  the  European  Social  Fund  Plus 
(ESF+) and other EU and national funding. 

Adult  digital  skills  remain  a  challenge  in 
Slovenia. The percentage of Slovenian adults 
with  at 
least  basic  digital  skills  further 
decreased  in  2025  (46.5%  vs  an  EU  average 
of 60.4%) and is slowing the digital transition. 
At the same time, the highest future shortages 
in  Slovenia  are  expected  in  the  digital  sector. 
Inequalities  in  digital  inclusion  risk  increasing 
skills  gaps,  particularly 
existing  digital 
affecting  those  furthest  from  the 
labour 
market.  Slovenia  is  currently  revising  the 
‘Digital  Slovenia  2030’  strategy to strengthen 
its governance 
digital 
transformation  policies, 
including  digital 
inclusion.  Through  a  reform  of  the  vocational 
education  and 
training  system,  Slovenia 
incorporated  digital,  green  skills  and  financial 

delivery 

and 

of 

competencies  into  curricula  which  will  be 
gradually  introduced  as  of  the  2026/2027 
school year. Several EU and nationally funded 
projects  are 
in  preparations  or  ongoing, 
however the overall impact remains limited. 

Lack of affordable housing limits 
labour mobility 

Lack of affordable and social housing has 
been  a  long-term  challenge.  Slovenia  has 
an  estimated  shortage  of  roughly  20 000 
public  rental  apartments.  The  shortage  is 
greatest  in  the  capital  and  other  urban  areas, 
where  jobs  and  universities  are  concentrated. 
It  hinders  the  reduction  of  homelessness  and 
the  provision  of  affordable  and  adequate 
housing  to  vulnerable  groups.  This  may  also 
have a negative impact on labour mobility and 
on  the  attractiveness  of  the  country  for 
foreign  workers.  With  the  support  of  the  RRP, 
Slovenia  adopted  a  reform  increasing  the 
stock  of  public  rental  housing  and  providing 
480  new  public 
rental  dwellings  across 
Slovenia.  The  public  housing  stock  will  be 
further  boosted  with  EUR 53 million  from  the 
cohesion 
programme.  Moreover, 
systemic  financing  has  been  ensured  until 
2035  (with  up  to  EUR 100 million  committed 
annually),  while 
the  2026-2035  national 
housing  programme  is  being  prepared  (see 
Annexes 16 and 18). 

policy 

23 

 
KEY FINDINGS 

In  areas  covered  by  existing  country-specific 
recommendations,  Slovenia  would  benefit 
from: 

• 

improving 
the  quality  of  public 
finances through spending reviews as part 
of the budgetary process in particular in the 
largest  spending  areas  by  achieving 
efficiency gains through harmonisation and 
improved targeting  of  social  transfers;  and 
by  rebalancing  taxes  away  from  labour 
towards  more  sustainable  and  growth-
friendly sources; 

•  further  reducing  the  administrative 
burden  for  businesses  and  easing 
business  regulation  by  making  further 
progress  regarding  digitalisation  of  public 
services  and  interoperability  and  reuse  of 
data,  simplifying  the  permitting  process, 
in 
relaxing 
regulated  professions,  and  reducing  Single 
Market  barriers  to  service  providers  from 
other EU countries;  

restrictions, 

particularly 

•  accelerating the increase of the public 
spending  on  R&D  to  improve  the  quality 
of  the  public  science  base  and  provide 
talent for the public and private sector; 

•  strengthening 

link 

structured 

between 
the 
research  and  industry.  A  broader  and 
could 
more 
be 
developed, 
expanding 
collaborative  R&D  funding  and  developing 
innovation  hubs  that  would  help  close  the 
productivity  and  innovation  gaps  with  the 
EU’s frontrunners; 

strategy 
by 

including 

•  boosting private investment in R&I and 
business  development  by  improving 
access  to  finance, 
in  particular  by 
expanding  capital  availability,  channelling 
productive 
savings 
investment, including  venture  capital  and 

into 

24 

strengthening alternative investment funds 
and risk-sharing instruments; 

implementing 

•  further  developing  financial  markets 
by 
the  capital  markets 
strategy  and  expanding 
development 
investment through supplementary pension 
funds, 
including  by  providing  a  varied 
spectrum of investment options;  

• 

the 

percentage 

increasing 
of 
renewables  in  the  electricity  mix  by 
designating  renewable  acceleration  areas 
for 
to 
reduce 
fuels  and 
minimise  exposure  to  volatile  fuel  prices 
(also enhancing economic security); 

renewable  energy 
reliance  on 

installations 

fossil 

•  continuing  to  upgrade  the  electricity 
integrate 

grid  infrastructure  to  help 
renewable energy installations; 

• 

increasing  the  availability  and  uptake 
of  sustainable  modes  of  transport  for 
both  passengers  and  freight,  particularly 
through helping complete the TEN-T railway 
network,  including  cross  border  sections 
and high-speed railway lines, and enhanced 
development  of  urban  mobility  and 
alternative fuels infrastructure; 

•  further 

climate 
strengthening 
adaptation  and  water 
resilience, 
including  by  ensuring  the  implementation 
of  the  established  climate  governance 
framework,  as  well  as  by  strengthening 
sustainable  water  management,  nature 
protection and restoration; 

•  addressing worker and skills shortages 
in  affected  sectors,  notably  healthcare, 
education  and  long-term  care,  also  by 
improving  non-wage  working  conditions, 
raising  Slovenia’s  attractiveness  for  highly 
skilled  foreign  workers,  facilitating  the 
recognition  of  professional  qualifications, 

 
 
participation 

under-
increasing 
represented  groups  and  further  integrating 
non-EU  workers  into  the  job  market  and 
society; 

of 

•  promoting  human  capital  development 
by  strengthening  basic  skills  and 
participation 
in  STEM  programmes, 
through  targeted  trainings  for  teachers  to 
in  the  education 
complement  changes 
system 
supporting 
disadvantaged schools and students. 

further 

and 

•  Boosting  lifelong  learning  and  labour 
productivity  across 
the  entire  adult 
workforce  by  promoting  upskilling  and 
further  measures  supporting 
reskilling, 
activation  and  participation  of  groups  with 
low  employment  rate;  a  special  emphasis 
on  green  and  digital  skills  is  needed, 
including basic digital literacy. 

25 

 
ANNEXES 

 
 
 
 
LIST OF ANNEXES 

A1.  CSR implementation 

Fiscal 

A2.  Fiscal developments and debt sustainability 

A3.  Taxation 

Productivity 

A4. 

Innovation to business 

A5.  Single market and industry 

A6.  Savings, investment and access to finance 

A7.  Effective institutional framework 

Sustainability 

A8. 

Industry decarbonisation, circularity and climate mitigation 

A9.  Affordable energy transition 

A10.  Climate adaptation, preparedness and environment 

Fairness 

A11.  Labour market 

A12.  Social policies 

A13.  Education and skills 

A14.  Social scoreboard 

A15.  Health and health systems 

A16.  Housing 

Horizontal 

A17.  Sustainable development goals 

A18.  Competitive regions 

A19.  Transport 

LIST OF TABLES 

A1.1. 
A2.1. 
A2.2. 
A2.3. 
A3.1. 
A4.1. 

CSR Implementation and Commission assessment 
Projected change in ageing-related expenditure in 2025-2040 and 2025-2070 
Supplementary pension schemes - Scope for expansion 
Fiscal Governance Database indicators and Public Accounting Maturity 
Taxation Indicators 
Key innovation indicators 

29 

31 

38 

38 

43 

47 

47 

52 

62 

68 

73 

73 

81 

88 

96 

96 

100 

104 

109 

110 

114 

118 

118 

120 

128 

31 
40 
40 
42 
44 
51 

 
 
 
Single Market and Industry 
Savings and Investments Union summary diagnostic 
Statistical Annex 
Slovenia. Selected indicators on better regulation practices for primary legislation 
Digital Decade key performance indicators: availability of digital public services 
Key clean industry and climate mitigation indicators: Slovenia 

A5.1. 
A6.1. 
A6.2. 
A7.1. 
A7.2. 
A8.1. 
A10.1.  Key Adaptation Indicators 
A14.1.  Social Scoreboard for Slovenia 
A15.1.  Key health indicators 
A18.1.  Main development trends, challenges and the concentration of resources 
A18.2.  Key regional indicators (at NUTS 3 level) for Slovenia 
A19.1.  ERTMS deployment in Slovenia 

LIST OF GRAPHS 

General government balance: expenditure and revenues contribution to the change, euro area 
Public investment evolution and composition (% of GDP) 
Primary spending evolution and composition 
Investment composition, % of GDP 
Tax revenue by economic function in 2024, SI (outer ring) and EU-27 (inner ring) 
Tax wedge for single and second earners as a % of total labour costs, 2025 
Business R&D intensity as % of GDP 
Composition of NFCs’ funding 
Capital markets and financial intermediaries 
Composition of HHs’ financial assets 
Trust in the justice system, regional / local authorities and in government 

A2.1. 
A2.2. 
A2.3. 
A2.4. 
A3.1. 
A3.2. 
A4.1. 
A6.1. 
A6.2. 
A6.3. 
A7.1. 
A7.2.  Most time-consuming aspects of service delivery 
A8.1. 
A9.1. 
A9.2. 
A9.3. 
A11.1.  Key labour market indicators 
A12.1.  AROPE and its components 
A13.1.  Basic or above basic digital skills 
A15.1.  Life expectancy at birth, years 
A15.2.  Treatable mortality 
A16.1.  House prices, rents and price-to-income evolution in SI and EU27 since 2005 
A16.2.  Housing affordability selected indicators 
A17.1.  Progress towards the SDGs in Slovenia 
A18.1.  Share of employment in different sectors (2024), Slovenia (NUTS 3 regions) 
A19.1.  Slovenia's road fatalities per million, 2024 

Greenhouse gas emissions in the effort sharing sectors, 2005, 2023, and 2024 
Electricity and gas prices for household and non-household consumers, first half of 2025 
Low-carbon electricity generation vs. electricity wholesale prices, 2025 
Slovenia’s installed renewable capacity vs electricity generation mix 

LIST OF MAPS 

A18.1.  GDP per head compared to the EU average 
A18.2.  Ratio of the price of housing to income in Slovenian regions, 2025 
A18.3.  Untapped potential from solar, wind and hydro power by NUTS 3 region in Slovenia (2024 estimates) 
A19.1.  TEN-T cross-border and national priority sections in Slovenia. 
A19.2.  Slovenia's road safety map 

30 

61 
62 
67 
69 
70 
79 
94 
109 
112 
121 
123 
129 

38 
39 
39 
42 
43 
45 
48 
62 
63 
64 
68 
69 
75 
82 
82 
84 
96 
100 
107 
110 
110 
115 
117 
118 
120 
130 

120 
124 
126 
129 
130 

 
 
 
 
 
 
ANNEX 1: CSR IMPLEMENTATION  

Table A1.1:  CSR Implementation and Commission assessment 

(Continued on the next page) 

31 

Slovenia faces challenges in a wide range of policy areas, as identified in the country-specific recommendations (CSRs). Slovenia was recommended, among other things, to accelerate the roll-out of renewables, promote the electrification of the transport sector, address labour shortages, boost life-long learning and improve working conditions.  The Commission has assessed the degree of implementation of the 2025 CSRs considering the policy action taken by Slovenia to date*. To do so, the Commission has taken into account the information provided by Slovenia in its Annual Progress Report as well as other information sources. This annex provides summary information on the policy actions taken or planned by Slovenia for each CSR. More detailed information on these actions is included in the relevant chapters and other annexes of the report. *CSR 2 is not assessed in CeSaR. RRP implementation is monitored through the assessment of RRP payment requests and analysis of the bi-annual reporting on the achievement of the milestones and targets, to be reflected in the country reports. Progress with the cohesion policy is monitored in the context of the Cohesion Policy of the European Union. Recommendation text Main measures adopted or implemented  By 30 April 2026  Preparatory steps/ credibly announced measures By 30 April 2026 Assessm. of progress  1.1 Reinforce overall defence and security spending and readiness while ensuring debt sustainability in line with the European Council conclusions of 6 March 2025. Total general government defence expenditure in 2026 is projected at 1.6% of GDP, corresponding to an increase of 0.2 ppt. compared to 2024.  Total general government defence expenditure in 2027 is projected at 1.8% of GDP, corresponding to an increase of 0.4 ppt. compared to 2024. Substantial progress 1.2 Adhere to the maximum growth rates of net expenditure recommended by the Council on 21 January 2025, while making use of the allowance under the national escape clause for higher defence expenditure. Cumulated deviation in 2025 amounted to 0.5% of GDP and is only partially explained by the NEC flexibility (0.2pps. of GDP).  Cumulated deviation in 2026 projected at 1.7% of GDP and is only partially explained by the NEC flexibility (0.5pps. of GDP) Limited progress 1.3 Ensure the fiscal sustainability of social protection  In 2025, the key reforms addressing fiscal sustainability of social protection, namely pension, long term care (LTC) and health-care reform were adopted. All three reforms were part of the RRP. Two TSI projects support the on-gong long-term care reform.  Substantial Progress  1.4 rebalance tax revenues towards more growth-friendly and sustainable sources - environmental tax for air pollution by carbon dioxide emissions increased -some growth-friendly incentives (for high skilled foreign workers, deferred taxes from stock options in start-ups and targeted measures for administrative simplification). - ETS2 carbon tax should be implemented as of 2028 and it will substitute the tax for air pollution by carbon dioxide emissions.  Limited Progress  1.5 Improve the quality of public finances by implementing spending reviews Slovenia took initial steps by establishing a Public Internal Control Service and analysing healthcare spending.  Limited Progress  3.1 Simplify regulation, improve regulatory tools and reduce administrative burden on businesses, including in certain services and regulated professions, as well as reducing barriers to services trade.  -a single point of contact system for businesses and two Debureaucratisation Acts  - the Companies Act (aim to simplify reporting obligations);   - revised Business Register Act (increasing legal certainty and -Si is implementing the Slovenian Startup Strategy (addressing administrative obstacles and strengthen the startup ecosystem) - Slovenia has also announced Some Progress    
 
 
 
     
 
Table (continued) 

(Continued on the next page) 

32 

Recommendation text Main measures adopted or implemented  By 30 April 2026  Preparatory steps/ credibly announced measures By 30 April 2026 Assessm. of progress  security of transactions).  - amendment to the Income Tax Act (supports innovative start-ups) - an amendment to the Corporate Income Tax Act (improved tax treatment for investment funds) - The Investment Promotion Act (to facilitate domestic and foreign investment), and Slovenia's business portal (SPOT) provided targeted support to entrepreneurs - Slovenia adopted the Startup Strategy an action plan on the sustainable development of public administration.  3.2 Strengthen competitiveness by promoting business dynamism and the creation of high-growth companies by improving the conditions for equity investment, including venture capital investment, for institutional investors, as well as  -Income Tax Act (supporting innovative start-ups),  -the Corporate Income Tax Act (improving tax treatment for investment funds),  -Investment Promotion Act (capital markets development strategy), and -Act on alternative forms of financing.  - Within the framework of the Slovenian Enterprise Fund (SEF), the so-called Slovenian Technology Fund has been formed (investing in SMEs). -Slovenia adopted the Startup Strategy  -amendments to the Act on the Supportive Environment for Entrepreneurship and the Public Finance Act are envisaged (to allow greater investments by the SEF in the form of equity financing and to enable a broader and clearer use of financial engineering instruments)  Some Progress 3.3 for investments in research, development and innovation.  The amendment of the Scientific Research and Innovation Activity Act (ZZrID) was adopted in May 2025 increasing the target for financing for research and innovation activities, although the previous target and budget increase is not reached.   Limited Progress  4.1 Accelerate the roll-out of renewables and energy storage by streamlining and expediting administrative and permitting procedures by means of designating areas for wind power installations and by stepping up capacity building for permitting at local level.   In 2024, Slovenia adopted a decree allowing municipalities to benefit from one-time compensation from the state of EUR 200k per MWh if on their territory wind installations are deployed.  Renewable Acceleration Areas (RAAs): Slovenia is mapping the potential for RAAs as a first step before their designation (expected only in 2027 or 2028). New RES Support Scheme: A new support scheme is being prepared based on the Clean Industrial Deal State Aid Framework (CISAF). This will cover a wide range of technologies, including energy storage, the production of gaseous fuels, renewable heating and cooling, utilization of waste heat, hydrogen Limited Progress  
 
 
     
 
Table (continued) 

(Continued on the next page) 

33 

Recommendation text Main measures adopted or implemented  By 30 April 2026  Preparatory steps/ credibly announced measures By 30 April 2026 Assessm. of progress  production, and biofuels. Energy Community support scheme (2026–2029): A public call is planned for co-financing investments in community self-sufficiency, specifically addressing solar PV, energy storage, and geothermal heat pumps for the period between 2026 and 2029. Draft amendments concerning Spatial Planning to simplify and accelerate spatial planning in Slovenia. The key draft amendments include: Mandatory Digital Transparency ; Stricter Deadlines for Authorities; Refined Environmental Assessments; Formal Community Engagement. 4.2 Strengthen the electricity grid infrastructure at distribution level and introduce smart grid components.  Investments in the distribution grid have grown progressively over the years. In 2025, they reached over EUR 250 million, while in 2024 they were just over EUR 200 million. Part of the funds invested are earmarked for introduction of smart elements.  According to Slovenia, 100% of customers are equipped with advanced/smart meters as of the end of 2025. However, based on network development plans, the investment gap is still significant – amounting to EUR 4 billion until 2034. Furthermore, the expected demand for electrification in transport and industry will require a significant increase of the grid capacity.   Some Progress 4.3 …accelerate the implementation of energy efficiency measures, particularly in the building sector.  Implementation of investments under the RRP on Renovations of Buildings (T25 and T27bis with around 80 000 m2 renovated) and on Upgrades of technical building systems (T26 and T27ter with around 38 000 m2 renovated).  Implementation of EE measures continued also through cohesion policy programme. However, Slovenia’s final energy consumption rose by 2.4% in 2024 to 4.59 Mtoe, reversing Finalisation of investments under the RRP, on Upgrades of technical building systems (T26 and T27ter with around 38 000 m2 renovated) is expected to be completed.  In addition, further continued implementation under the RRP on Renovations of Buildings (T25 and T27bis with around 80 000 m2 renovated) is expected.   Limited Progress  
 
 
     
 
Table (continued) 

(Continued on the next page) 

34 

Recommendation text Main measures adopted or implemented  By 30 April 2026  Preparatory steps/ credibly announced measures By 30 April 2026 Assessm. of progress  years of decline. A draft National Building Renovation Plan signals commitment to decarbonising buildings, which account for 30.5% of final energy use. Yet heating and cooling still dominate residential demand (77%), with renewables covering just 34% of the sector’s needs (Annex 9). Without stronger financing tools and faster renovation rates, Slovenia risks missing energy efficiency targets while staying overly reliant on fossil fuels.  4.4 Promote the electrification of the transport sector and focus investments on sustainable transport, particularly rail.  Under the RRP, the Act on alternative fuels infrastructure has been adopted and a Public Transport Authority to integrate rail and bus services was established. Under the RRP and cohesion policy, many large railway and e-mobility investments have been implemented or are in progress,  Limited Progress 4.5 Further strengthen climate and water resilience by improving the environmental and climate adaptation governance and accelerating the implementation of targeted climate adaptation and environmental measures.  Under the RRP, Slovenia adopted the Drinking Water Supply and Municipal Wastewater Treatment and Collection Act, and continued with the implementation of drinking water supply, wastewater treatment and flood protection investments. The mentioned investments are also being implemented in the scope of cohesion policy. In 2025, the Climate Act was adopted.  Some Progress 5.1 Address labour shortages by stepping up the provision and acquisition of skills and competences, including basic skills among pupils and those relevant for the green and digital transition - Pension reform increasing labour supply, removed „bridge to retirement “. -Short-TimeWork Scheme Act (2025) introduced compulsory training during reduced working hours.  -Primary School Act (2025) introduced computer science and digital technology into the curriculum. -new scholarship policy for 2025–2029 offers 1,000 annual scholarships for deficit professions.  -Act on the Promotion of Digital Inclusion funded 36 projects, enhancing digital skills among 38,500 youths and 25,530 adults by October 2025. - The new National Curriculum Framework begins its gradual implementation in September 2026, with further updates continuing through 2027.  As part of modernising vocational education and training, 25 secondary and 16 higher education programmes will be reformed by mid-2026. - Most recent PISA results are expected to be published in Q3 2026 and will enable better assessment of progress.  Some Progress   
 
 
     
 
Table (continued) 

(Continued on the next page) 

35 

Recommendation text Main measures adopted or implemented  By 30 April 2026  Preparatory steps/ credibly announced measures By 30 April 2026 Assessm. of progress  -Several calls launched under Cohesion Policy targeting training and education for employees, unemployed persons, workers at risk of job loss and residents of restructuring regions (Zasavje and SAŠA). 5.2 Boost lifelong learning and training, especially for low-skilled and older workers  - SI launched a nationwide lifelong learning campaign in 2024, implementing the Resolution on the National Programme of Adult Education 2022–2030 (ReNPIO22–30) to improve adult education and literacy. - Higher Education Act, adopted (2025), introduce micro-credentials and flexible study options to modernise lifelong learning (part of MFF 2021-2027).  - Call for tender to support age-management strategies and training for older employees, including soft, vocational, digital, and green competences. - January 2026: SI adopted guidelines for active employment policy measures (2026–2030), setting targets to reduce long-term unemployment and accelerate the activation of older and low-skilled workers. - Slovenia commits to develop an Action Plan. Together with the existing Resolution on the National Programme for Adult Learning 2022-2030, Slovenia will aim at achieving the EU target of at least 60 % of adults participating in learning by 2030. The plan should be adopted by the MC by the end of 2026 at the latest. The plan will be developed in cooperation between many ministries and will provide an essential contribution from social partners.  Some Progress 5.3 Raise Slovenia's attractiveness for foreign workers with advanced skills.  -Personal Income Tax Act (Jan. 2025): introduced tax incentives for highly skilled professionals, featuring a preferential tax regime for new residents under 40 with above-average wage and beneficial tax treatment for employee stock options. -Act on Employment, Self-Employment and Work of Foreigners (adopted May 2025) implements the EU Blue Card system aimed at attracting highly qualified foreign workers. - Digital Nomad Visa (Nov. 2025): allows non-EU remote workers to reside in SI for up to a year, while working for employers or clients abroad.  Some Progress 5.4 Improve working conditions, particularly in the healthcare, social and long-term care and teaching sectors.  As part of the RRP, the Public Sector Salary System Reform (Jan. 2025) increased public sector wages, including teacher, healthcare and LTC workers; Salaries are increased gradually - New pilot internship program for nurses (as in 2024) to be launched in 2026 which aims at developing training models for healthcare, improve service quality, and tackle labour Some Progress  
 
 
     
 
Table (continued) 

(Continued on the next page) 

36 

Recommendation text Main measures adopted or implemented  By 30 April 2026  Preparatory steps/ credibly announced measures By 30 April 2026 Assessm. of progress  by 2028, with lower-paid and entry-level roles benefiting the earliest. The reform ensures that no basic salary is lower than the national minimum wage, while simultaneously it expands the pay ratio between the lowest and highest grades to 1:7. Real growth of gross wage per employee in the public sector in 2025 was 6.8% and a further 3.8% is expected in 2026. Alongside the wage reform, a new winter allowance has been introduced in October 2025. In January 2026, statutory minimum wage has been increased by 16%. According to latest OECD data1 (from 2023), ratio to average wage of hospital nurses and general practitioners is close to OECD average.  -Act on Temporary Measures to Improve Staffing and Working Conditions and Capacity for Social Care Services and LTC: enhances social assistance services, including co-financing vocational qualifications, volunteer engagement, foreign employee integration, and training in care professions as well as scholarships for nursing and social work. -Organization and Financing of Education Act (July 2025): Allows current teachers to take on an additional 20% workload at the same institution; issued a call for retired teachers to return; scholarships for pedagogy students, subsidies for teacher development. - Scholarships for pedagogy students, subsidies for continuing professional development of existing teachers, and funded internship schemes with mentoring. -Act on Recognition of Professional Qualifications in Healthcare (June 2025): Provides a streamlined framework for employing foreign healthcare shortages - Action Plan for Skills, which will be developed in 2026, will also cover the needs for skills in the Healthcare sector.    1 OECD (2025), Health at a Glance 2025: OECD Indicators, OECD Publishing, Paris, https://doi.org/10.1787/8f9e3f98-en.  
 
 
     
 
Table (continued) 

Source: Commission assessment 

37 

Recommendation text Main measures adopted or implemented  By 30 April 2026  Preparatory steps/ credibly announced measures By 30 April 2026 Assessm. of progress  professionals. -Social Security Act: permits hiring of social care workers without professional exams. Aligns qualifications recognition for EU and foreigners. -pilot internship programme for nurses (2024–2026) establishes a training model for healthcare and LTC.  -Public calls for scholarships published for the 2025/2026 school year aim to attract youth to healthcare and social work. - A TSI 2025 project is supporting the SI authorities in the implementation of Slovenia’s new Long-Term Care Act (ZDOsk-i), as well as enhancing the staff capacity in assessing the eligibility of individuals for LTC coverage under insurance, ensuring a uniform application of criteria across all regions - The National Strategy for the Development and Management of Human Resources in Healthcare 2026–2036, which is a comprehensive framework for recruitment and retention of healthcare staff, was adopted by the government in March 2026.     
 
   
 
FISCAL 
ANNEX 2: FISCAL DEVELOPMENTS AND DEBT SUSTAINABILITY 

Slovenia’s  rising  general  government  expenditure, 
which  reached  49.6%  of  GDP.  Expenditure  is 
expected  to  keep  increasing  reaching  50.6%  of 
GDP  in  2026  and  then  ebb  to  50.2%  of  GDP  in 
2027. 

Graph A2.1: General government balance: 
expenditure and revenues contribution to the 
change, euro area 

Source: European Commission Spring 2026 Forecast 

Public  investment  is  projected  to  remain  at 
an  all-time  high.  Public  investment  rose  during 
the  COVID-19  pandemic  and  it  reached  5.6%  of 
GDP  in  2025,  up  from  3.9%  in  2019.  The  end  of 
the Recovery  and  Resilience  Facility  (RRF)  will 
result in a reduction in public investment, which is 
nonetheless  set  to  remain  at  the  high  level  of 
5.1%  of  GDP  in  2027  despite  the  lower  support 
from the RRF thanks to strong nationally financed 
investments,  including  defence  investments,  and 
the continued use of EU cohesion funds under the 
2021–2027  multiannual 
framework. 
Slovenia is  projected  to  spend  more  on  nationally 
it  did  before  the 
financed 
pandemic.  

investment  than 

financial 

in 

developments 

This annex discusses selected topics in public 
finance  and 
fiscal-
structural  country-specific  recommendations 
(CSRs)  addressed  to  Slovenia  in  July  2025. 
These  CSRs  include  a  call  to  strengthen  defence 
spending  and  readiness  while  implementing  a 
the  Council 
fiscal 
Recommendation  of  21 January 2025.  Slovenia 
also  received  a  recommendation  to  take  decisive 
action  to  ensure  that  social  protection  is  fiscally 
sustainable, rebalance tax revenues towards more 
growth-friendly  and  sustainable  sources,  and 
improve 
the  quality  of  public  finances  by 
implementing spending reviews.  

line  with 

strategy 

in 

Union 

adopted 

endorsing 

On  21  January  2025,  the  Council  of  the 
European 
the 
Recommendation 
Slovenia’s 
medium-term  fiscal-structural  plan (37).  The 
plan  includes  a  fiscal  adjustment  over  four  years. 
On  8 July 2025,  the  Council  also  activated  the 
national escape clause for Slovenia to facilitate its 
defence 
to 
transition 
spending (38)(39). 

higher 

levels 

of 

Developments in the government 
balance, debt and public 
expenditure (40) 

Slovenia’s government deficit was equivalent 
to 2.5% of GDP and the government debt-to-
GDP  ratio  amounted  to  65.7%  at  the  end  of 
2025.  Based  on  the  Commission  Spring  2026 
Forecast,  Slovenia’s  government  deficit 
is 
projected to increase to 3.3% of GDP in 2026 and 
3.5%  of  GDP  in  2027  (see  Graph  A2.1).  The 
increase  in  deficit  in  2025  was  largely  driven  by 

(37)  OJ C, C/2025/640, 10.2.2025, ELI: 

http://data.europa.eu/eli/C/2025/640/oj. 

(38)  OJ C, C/2025/3973, 20.08.2025, ELI: https://eur-

lex.europa.eu/eli/C/2025/3973/oj. 

(39)  Slovenia’s compliance with the maximum growth rates of net 

expenditure recommended by the Council is assessed 
in COM(2026)200. 

(40)  Figures underpinning fiscal surveillance (net expenditure 
growth) are provided in the Fiscal Statistical Tables 
(SWD(2026)200) providing background data relevant for the 
assessment of the budgetary policies of the Member States. 

38 

-4-3-2-10123452021202220232024202520262027RevenueExpenditureChange in budget balance% of GDP 
 
 
 
      
 
 
 
Graph A2.2: Public investment evolution and 
composition (% of GDP) 

2025  Forecast (41).  The  tax  mix  in  Slovenia  is 
characterised  by  a  heavy  reliance  on  labour 
taxation,  which  accounts  for  52%  of  total  tax 
revenues, slightly above the EU average of 51.5%. 
Revenue  from  social  contributions  specifically  is 
the  EU  aggregate, 
than 
significantly  higher 
standing  at  17.2%  of  GDP  compared  with  the  EU 
average  of  14.0%.  In  contrast,  recurrent  property 
taxes  which  are  considered  least  detrimental  to 
growth  remain  underused  compared  with  the  EU 
average. 

Graph A2.3: Primary spending evolution and 
composition 

Source: European Commission Spring 2026 Forecast 

related 

nationally 

to  higher 

The  type  of  expenditure  that  has  a  greater 
impact on GDP has increased since 2019. This 
is 
financed 
investments  and  the  impact  of  the  RRF,  which 
facilitated  a  more  quality-based  fiscal  strategy. 
Zooming in on the composition of spending, social 
protection  accounts  for  the  largest  share  of  total 
expenditure  (around  37%),  followed  by  health 
(17%),  economic  affairs  (12%),  education  (12%) 
and  general  public  services,  each  of  which 
constitutes  at  least  10%  of  total  spending  (see 
Graph  A2.3a).  Since  2019,  public  expenditure  on 
health  and  other  economic  affairs  has  increased 
significantly  (See  Graph  A2.3b).  Spending  on 
defence and environment has risen more modestly 
since  2019,  with  the  rise  in  defence  spending 
recent  security  developments.  By 
reflecting 
contrast,  spending  on  R&D, 
transport  and 
education  expenditure  has  declined.  This  trend 
deserves  attention,  as  these  spending  categories 
are generally considered growth-friendly.  

Slovenia’s tax burden is slightly below the EU 
average  but  relies  heavily  on  labour  taxes, 
while  some  growth-friendly  taxes  remain 
underused. Slovenia has made limited progress in 
making  its  tax  system  more  growth-friendly  (see 
Annex 3). In 2025, Slovenia’s total tax revenues as 
a  percentage  of  GDP  (including  compulsory  social 
contributions)  amounted  to  39%,  which  is  0.9 
percentage points (pps) below the EU aggregate of 
39.9%.  Total  tax  revenues  are  projected  to 
increase to 40.1% of GDP in 2026 and 40.2 % of 
GDP in 2027 according to the Commission’s Spring 

(1) Based on economic literature, the categories considered to 
have a greater growth impact include education, R&D, health, 
transport and communication (see Barbiero and Cournede 
(2013), Gemmel et al. (2016), Lupu et al. (2018), Cepparulo 
and Mourre (2020) and OECD (2025)). 
Source: Eurostat 

(41)  Data retrieved from the AMECO database (https://economy-

finance.ec.europa.eu/economic-research-and-
databases/economic-databases/ameco-database_en).  

39 

0123456201920202021202220232024202520262027% of GDPDefenceRRF grants and other EU fundsOther nationally-financed510152040455055200720082009201020112012201320142015201620172018201920202021202220232024a) Evolution (% of GDP)Primary expenditureSpending with higher impact on GDP (rhs)-2.00-1.50-1.00-0.500.000.501.001.502.002.50SocialprotectionInterestspendingGeneralservicesEducationPublicorderTransportR&DHousingCommunicationCultureEnvironmentDefenceOther economicHealthb) Compositional change 2019-2024(% of total spending) 
      
   
 
 
Table A2.1:  Projected change in ageing-related expenditure in 2025-2040 and 2025-2070 

Source: 2024 Ageing Report (EC/EPC). 

Table A2.2:  Supplementary pension schemes - Scope for expansion 

Source: European Commission. 

The costs of ageing 

Total  ageing-related  spending  in  Slovenia  is 
projected  to  rise  by  2.5 pp.  of  GDP  between 
now and 2040, to 25% of GDP, with a further 
2.5 pps increase by 2070 (see Table A2.1). The 
overall  increase  in  spending  in  this  area  is  the 
result  of  a  projected  rise  in  pension  expenditure, 
with  smaller  increases  for  healthcare  and  long-
term care. Total spending on ageing-related items 
would  rise  to  above  the  EU  average.  These 
projections  do  not  account  for  the  2025  pension 
reform. 

Public pension spending as a share of GDP is 
projected to increase by about 2 pps over the 
next decades and by around 3.5 pps between 
now and 2070. Gross spending on public pension 
benefits  would  represent  around  14%  of  GDP  in 
2070, compared to around 12% on average in the 
EU. However, these figures do not yet incorporate 
the pension reform adopted in 2025 (42). 

(42)  The 2025 pension reform is projected to reduce long‑term 
pension expenditures by about 1 percentage point of GDP. 
According to the IMF projections, the pension‑to‑GDP ratio is 
expected to stabilise at around 12.5%, which is roughly one 
percentage point lower than in the pre‑reform scenario. IMF, 
Republic of Slovenia-Staff report for the 2025 Article IV 
Consultation, January 2026. 

Supplementary  pension  schemes  makes  the 
pension system more resilient by diversifying 
In  Slovenia, 
income  sources. 
retirement 
however,  the  uptake  of  these  supplementary 
schemes  remains  limited:  at  the  end  of  2024, 
private pension assets amounted to around 7% of 
GDP while participation in supplementary schemes 
covered  only  around  45%  of  the  working-age 
population (43).  This  coincides  with  both:  (i)  rising 
medium-term  pressures  on  public  pension 
spending;  and  (ii)  a  projected  decrease  in  the 
replacement  rate  by  2 pps  between  2025  and 
2040 (Table A2.1 and A2.2). 

Public healthcare expenditure is projected to 
be  6.9%  of  GDP  in  2025  (slightly  above  the 
EU  average  of  6.6%)  and  is  expected  to 
increase  by  0.7  pps  between  now  and  2040 
and  by  a  further  0.3  pps  between  now  and 
2070.  While  the  overall  increase  is  driven  by  an 
ageing  population,  it  is  further  influenced  by  a 
recent increase in access to mental health services 
and increase in healthcare workers’ salaries. 

Public  expenditure  on  long-term  care  is 
projected to be 1.1% of GDP in 2025 (below 
the  EU  average  of  1.7%)  and  is  expected  to 
increase by 0.4 pps of GDP between now and 

(43) OECD Pensions at a Glance 2025 

40 

SI22.51.90.70.4-0.42.525.0SIEU24.30.50.30.4-0.30.925.2EUSI22.53.40.90.9-0.25.027.5SIEU24.30.20.60.8-0.31.325.6EUageing-related expenditure change in 2025-2040 (pps GDP) due to:ageing-related expenditure pensionshealthcarelong-term careeducationtotalageing-related expenditure change in 2025-2070 (pps GDP) due to:ageing-related expenditure pensionshealthcarelong-term careeducationtotalAssets in 2024 (% GDP)Participation in 2024 (% working-age population)SI7.1-2.045.3SIEU32.4-2.855.9EUGross replacement rate at retirement: (pps change 2025-2040)  
 
 
 
 
 
   
 
 
   
 
2040  and  by  a  further  0.5 pps  of  GDP 
between 2040 and 2070. The projected increase 
is  due  to  an  ageing  population  but  does  not  yet 
reflect the budgetary impact of the latest reforms 
on long-term care (44). 

Slovenia  has  made  substantial  progress  in 
addressing the 2025 CSR on social protection 
sustainability  by  adopting  and  implementing 
key  reforms  in  the  pension,  healthcare  and 
long-term  care  systems.  The  adopted  reforms 
provide  financing  frameworks  that  significantly 
strengthen  the  long-term  fiscal  sustainability  of 
these systems. However, these improvements can 
only  be 
consistent 
implementation  over 
time.  Further  structural 
efficiency  measures  could  increase  the  cost-
effectiveness of the social protection system, such 
as  conducting  healthcare  spending  reviews  and 
integrating  the  governance  and  provision  of 
healthcare and long-term care services. 

realised 

through 

fully 

National fiscal framework 

Two institutions carry out Independent Fiscal 
Institution  (IFI)  tasks.  The  Slovenian  Fiscal 
Council (FC) is a small IFI with a relatively narrow 
mandate, focusing on monitoring compliance with 
fiscal  rules and assessing the government’s fiscal 
forecast,  while  the  other  IFI  (The  institute  of 
Macroeconomic  Analysis  and  Development  of  the 
Republic  of  Slovenia  -  IMAD)  is  responsible  for 
the  macroeconomic  forecasts.  The 
producing 
recent adoption of a revised Fiscal Rule Act implied 
a  strengthening  of  the  status  of  the  IFI,  for 
example  by  removing  the  previous  four-person 
limit  on  secretariat  staff.  FC  reported  also  some 
difficulties  with  accessing  micro  data  from  the 
National  Statistics Office. The FC is developing its 
outreach  activities  to  broaden  the  awareness  of 
fiscal issues.  

There is scope for improving management of 
public investment in Slovenia, particularly in 
the  early  phases  of  planning  and  selection. 
Long-term strategic planning of public investment 
is carried out mostly at the level of line ministries, 
limited  coordination  across  sectors  and 
with 

to  assess 

limited involvement  of  the  Ministry  of  Finance (45) 
Although  a  standardised  methodology  for  project 
assessment  is  in  place,  it  seldom  applies  before 
the  budget  has been  allocated,  which  can  lead  to 
delays  and  significant  cost  increases  when  the 
is  carried  out.  Moreover,  systematic 
project 
external  quality  assurance 
larger 
projects  is  lacking.  This  also  contributes  to  cost 
increases later in the project process. The national 
development  programme  presents  expenditure  by 
project  over  a  four-year  period.  This  increases 
transparency,  and  capital  expenditure  ceilings  are 
set  two  years  in  advance.  There  is,  however,  no 
standard methodology for estimating maintenance 
costs.  Ex  post  reviews  of  projects  are  carried  out 
on  an  ad  hoc  basis,  and  asset  registers  are 
required  to  be  kept  updated  across  the  general 
government (46). 

The  spending  reviews  framework  is  partially 
developed. Slovenia has made limited progress in 
improving  the  efficiency  of  public  spending  by 
implementing  spending  reviews.  The  country  has 
experience 
in  producing  analyses  of  public 
spending, but the main challenge is to convert the 
reviews’  findings  into  actual  budgetary  decisions. 
The Fiscal Council has published a comprehensive 
analysis on spending reviews (47). There have been 
recent  institutional  developments,  such  as  the 
creation of the Ministry of Finance’s Public Finance 
Internal  Control  Service,  which  is  supposed  to 
make  a  material  contribution  to  improving  the 
efficiency  of  public  expenditure  and  also 
contribute to building the skills needed to manage 
spending reviews. Although spending reviews need 
to  be  updated  on  a  regular  basis,  feeding  results 
into  the  budgetary  process  could  help  Slovenia 
fulfil medium-term budgetary targets. 

(45)  Belu Manescu, C. (2024), The planning of public investments 
in EU Member States: long-term strategy, selection and 
budgeting issues, DG ECFIN Discussion Paper No 213. 

(46)  Republic of Slovenia: Technical Assistance Report Public 
Investment Management Assessment, October 2024, 
https://www.imf.org/en/Publications/technicalassistance-
reports/Issues/2024/10/04/Republic-ofSlovenia-Technical-
Assistance-Report-PublicInvestment-Management-
Assessment-555893. 

(47)  https://www.fs-rs.si/wp-

(44)  The adequacy and quality of the Slovenian long-term care 

system are covered in Annex 12. 

content/uploads/2025/06/Public_expenditure_reviews_June-
2025.pdf.  

41 

 
 
 
 
Table A2.3:  Fiscal Governance Database indicators and Public Accounting Maturity 

(1) 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  targets/ 
ceilings included in 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. Higher scores are associated with higher rule and MTBF strength. The score for public 
accounting reflects the degree of maturity in relation to the International Public Sector Accounting Standards (IPSAS). Countries 
with an accounting maturity of 70% or more in relation to IPSAS are deemed to apply accrual accounting. For more information, 
see the report on public accounting in the EU (COM(2025)746 and accompanying Staff Working Document SWD(2025)396). 
Source: Fiscal Governance Database, European Commission 

Graph A2.4: Investment composition, % of GDP 

Accrual  accounting  makes  a  public  body’s 
financial  position  and  performance  more 
transparent and can boost sustainability and 
intergenerational  equity.  Most  (14)  Member 
implemented  accrual  accounting 
States  have 
across the general government sector and five are 
set  to  do  so  by  2030 (49).  Slovenia is close to  the 
EU  average  (see  Table  A2.3)  but  has  not  yet 
implemented  accrual  accounting  in  particular  for 
social  security  funds  and  has  no  medium-term 
plans to transition towards accrual accounting (50). 

Source: AMECO 

and 

environmental 

Slovenia  is  using  green  budget  tagging  to 
climate 
include 
considerations  in  its  budgetary  process.  In 
connection  with 
its  commitments  under  the 
recovery  and  resilience  plan,  the  government 
adopted  a  methodology  requiring  responsible  line 
ministries  to  systematically  tag  expenditures, 
revenues  and  tax  expenditures  according  to  their 
environmental and climate impacts (48). 

(48)  Government decision No 41000-11/2023/3, http://vrs-

3.vlada.si/MANDAT22/vladnagradiva.nsf/71d4985ffda5de89
c12572c3003716c4/4fa4b1792bc0ddd6c1258a32003cb7f
a?OpenDocument and Government decision No 41000-
3/2024/, 
https://podatki.vlada.si/zapis.aspx?mandat=22&id=2322. 

(49)  Report on public accounting in the EU (COM(2025)746 and 
accompanying Staff Working Document SWD(2025)396). 
Countries with an accounting maturity of 70% or more in 
relation to International Public Accounting Standards are 
deemed to apply accrual accounting. 

(50)  Annexes 3.1 and 3.4 of SWD(2025)396. 

42 

5.14.415.815.40510152025202410-y averages% of GDPgovernmentnon-government2024SloveniaEU AverageCountry Fiscal Rule Strength Index (C-FRSI)8.4714.81Medium-Term Budgetary Framework Index (MTBFI)0.630.722025 Public accounting maturity of general government58%65% 
      
  
 
 
 
  
 
ANNEX 3: TAXATION 

This  annex  provides  an 
indicator-based 
overview of Slovenia’s tax system. It includes 
information  on  the  tax  mix,  on  competitiveness 
and fairness aspects of the tax system, and on tax 
collection and compliance. In the area of taxation, 
the  2025  country-specific  recommendations  for 
Slovenia  highlighted  challenges in  rebalancing tax 
revenues 
towards  more  growth-friendly  and 
sustainable sources.  

taxes 

labour 

The tax burden in Slovenia is 0.9 percentage 
points  (pps)  below  the  EU  average.  In  2024 
Slovenia’s tax revenues were equivalent to 38.5% 
of  GDP,  slightly  lower  than  the  EU  aggregate  of 
39.4%.  The  percentage  of 
in 
Slovenia’s tax mix (52% of the total tax revenues) 
is  slightly  above  the  EU  average  (51.5%),  which 
labour 
reflects  Slovenia’s  strong  reliance  on 
taxation. 
security 
contributions  expressed  as  a  percentage  of  GDP 
were above the EU aggregate (16.8% vs 13%). In 
January 2024,  Slovenia  abolished  its  voluntary 
complementary  health  insurance  and  replaced  it 
with  an  additional  mandatory  health  contribution. 
As  of  1 July 2025,  a  mandatory  contribution  to 
long-term  care  of  2%  of  gross  wages  has  been 
charged  (1%  paid  by  employers  and  1%  by 
employees) and at 1% of net pensions. 

Revenues 

social 

from 

Graph A3.1: Tax revenue by economic function in 
2024, SI (outer ring) and EU-27 (inner ring) 

Source: Taxation Trends Data, DG TAXUD 

The  share  of  capital  taxes  in  the  tax  mix 
increased  by  0.8 pps  in  2024  against  2023. 
This  is  due  to  the  December  2023  Act  on 
Reconstruction,  Development  and  the  Provision  of 
Financial Resources, which increased the corporate 
income  tax  (CIT)  rate  by  3 pps  to  22%  and 
introduced  a  tax  on  banking  assets  for  2024-
2028.  The  revenue  from  these  taxes  is  used  to 
finance  reconstruction  after  the  August  2023 
floods. Revenues from CIT as a percentage of GDP 

43 

were, however, still below the EU aggregate (2.7% 
vs 3.1%). 

property 

Recurrent 
taxes,  which  are 
considered  to  be  one  of  the  taxes  least 
to  growth,  are  underused. 
detrimental 
Revenues  from  recurrent  property  taxes  were 
below the EU aggregate. Total property taxes were 
equivalent  to  0.7%  of  GDP  in  Slovenia  in  2024 
(compared  with  1.8%  for  the  EU  aggregate),  of 
which  the  equivalent  of  0.4%  of  GDP  came  from 
recurrent property taxes (compared  with 0.9% for 
the EU aggregate). 

from 

revenues 

In  2024, 

consumption 

Revenues 
and 
environmental  taxes  as  a  share  of  total 
taxation  in  Slovenia  were  above  the  EU 
aggregate. 
from  VAT 
expressed  as  a  percentage  of  GDP  were  0.8 pp. 
above the  EU  aggregate (7.9%  vs  7.1%).  In  2025 
VAT rates for sweet drinks increased from 9.5% to 
22%.  At  2.8%,  environmental  tax  revenue  as  a 
percentage  of  total  tax  revenue  and  GDP  was 
above  the  EU  aggregate  of  2.1%  and  composed 
almost entirely of energy and transport taxes. 

Slovenia  has  made  some  progress 
in 
rebalancing  its  tax  mix  by  increasing  CO2 
taxation  and  introducing  targeted  growth-
friendly  incentives  for  high-skilled  workers 
and  start-ups.  While  these  measures  enhance 
the 
environmental  sustainability  and  support 
innovation  ecosystem,  the  overall  tax  burden 
remains  heavily  concentrated  on  labour.  The  shift 
toward 
like  recurrent 
property taxation has yet to be realised. 

less  distortive  sources 

February  2026  a  new  Employee 
In 
Participation 
in  Profit  Sharing  Act  was 
adopted,  enabling  employees  to  participate 
in  profits  to  a  greater extent.  The  new profit-
sharing  scheme  for  employees  introduces  a more 
favourable  tax  treatment  for  companies,  which 
can claim a 100% tax relief on profits distributed 
to  employees,  and  for  employees,  as  cash 
payments  are  taxed  at  30%,  while  shares  and 
equity at 25%, with no social security contributions 
applicable. 

In 

hold. 

Plans for broader tax reforms, have been put 
policy 
on 
orientations/starting  points  were  presented  aimed 
at launching a discussion on introducing a new real 
estate  tax  and  reducing  labour  taxation. However, 

2025, 

initial 

the 

51.526.821.652.032.315.7Taxes on labourTaxes on consumptionTaxes on capital 
 
   
 
 
Table A3.1:  Taxation Indicators 

(1) Forward-looking effective tax rate (KPMG).  
(2) A higher value indicates a stronger redistributive impact of taxation. 
(*) EU-27 simple average. 
(**) Forecast value for 2024. EU-27 refers to the median value. For more data on tax revenues as well as the methodology 
applied, see the Data on Taxation Trends webpage. 
Source: European Commission, OECD, ISORA. 

following  their  public  consultation  the  Slovenian 
authorities  decided  that  a  more  comprehensive 
and  coordinated  approach  to  housing  policy  was 
needed  before  developing  new  real  estate  tax 
measures.  In  response,  the  Ministry  of  Solidarity-
Based  Future  prepared  a  national  housing 
programme  for  2026-2035  and  submitted  it  for 
public  consultation  at  the  end  of  2025.  Broader 
reforms  in  the  area  of  labour  taxation  have  also 
been put on hold. 

Slovenia  uses  generous  expenditure–based 
tax  incentives,  such  as  tax  incentives  for  R&D 
expenses,  investment  tax  incentives,  depreciation 
of tangible fixed assets, amortisation of intangible 
assets,  and  depreciation  of  investment  property. 
These  incentives  are  all  aimed  at  stimulating 
additional 
investment  as  they  directly  target 
investment expenses. 

Slovenia  also  allows  for  the  use  of  retained 
tax losses, which is limited to a maximum of 
50% of the actual tax base. An amendment to 
the  Corporate  Income  Tax  Act,  which  entered  into 
force  on  1 January  2025,  has 
the 
possibility of utilising tax losses to five tax periods, 
while  also  providing  for  a  transitional  regime. 
Carry-back of losses is not permitted. 

limited 

44 

tax  allowance 

transition.  The 

Slovenia  has  an  investment  allowance  for 
investing  in  digital  transformation  and  the 
green 
for 
investment  in  equipment  and  intangible  assets  is 
limited to 40% of the cost of investing in: (i) cloud 
computing;  (ii) artificial  intelligence;  (iii) big  data; 
(iv) environmentally-friendly 
technologies; 
(v) cleaner,  cheaper  public  and  private  transport; 
(vi) decarbonising the energy sector; (vii) improving 
the 
and 
(viii) implementing  other  standards  for  climate 
neutrality.  As  of  1 January 2025,  this  allowance 
can  be  claimed  in  five  tax  periods  following  the 
investment period. 

efficiency 

buildings; 

energy 

of 

Slovenia does not have a specific tax regime 
or  tax  incentives  for  venture  capital.  Well-
designed venture-capital incentives could help with 
the supply of venture-capital financing, particularly 
given  that  Slovenia  ranks  last  in  venture-capital 
financing  as  a  percentage  of  GDP  among  the 
24 EU countries for which data are available. 

Individual 

The 
Investment  Accounts  Act 
adopted  in  2025  has  introduced  a  new  type 
of  investment  accounts  for  Slovenian  tax 
residents with a beneficial tax treatment and 
a  simplified  tax  procedure.  Its  purpose  is  to 
encourage 
in  financial 
to 
instruments instead of bank deposits. Such income 

individuals 

invest 

2019202220232024202520192022202320242025Tax structureTotal taxes (including compulsory actual social contributions) (% of GDP)38.137.836.538.539.939.739.039.4Taxes on labour (% of GDP)19.019.218.820.020.620.119.920.3of which, social security contributions (SSC, % of GDP)15.816.115.516.813.012.712.713.0Taxes on consumption (% of GDP)14.013.112.512.411.210.910.510.6of which, value added taxes (VAT, % of GDP)8.28.38.07.97.17.47.17.1Taxes on capital (% of GDP)5.25.55.26.08.18.78.58.5Personal income taxes (PIT, % of GDP)5.35.25.15.39.69.49.39.6Corporate income taxes (CIT, % of GDP)2.02.32.32.72.63.23.23.1Total property taxes (% of GDP)0.60.60.50.72.22.11.91.8Recurrent taxes on immovable property (% of GDP)0.50.50.40.41.21.00.90.9Environmental taxes (% of GDP)3.82.92.82.82.62.12.12.1Effective carbon rate in EUR per tonne of CO2 equivalentsnana81.7nanana84.8naTax wedge at 50% of average wage (single person) (*)38.339.439.341.841.432.431.631.531.531.6Tax wedge at 100% of average wage (single person) (*)44.844.344.545.645.640.139.739.939.940.0Corporate income tax - effective average tax rates (1) (*)17.217.217.219.920.019.219.019.3Difference in Gini coefficient before and after taxes and cash social transfers (pensions excluded from social transfers) (2) (*)9.38.38.28.37.88.07.97.8Outstanding tax arrears: total year-end tax debt (including debt considered not collectable) / total revenue (in %) (*)6.74.33.7na31.832.630.7naVAT gap (% of VAT total tax liability, VTTL) (**)4.88.44.94.510.57.38.2naEU-27SloveniaProgressivity & fairnessTax administration & complianceBy tax baseSome tax types 
 
  
 
(IIA) 

investment  account 

is  only  taxed  when  money  is  paid  out  of  the 
into  a 
individual 
transaction account before the expiry of 15 years 
from the opening of the IIA or last payment from 
the  IIA.  This  means  that:  (i) income  and  profits 
earned  by  the  IIA  holder  though  the  IIA  and  not 
paid  out  from  the  IIA  are  not  taxable;  and  (ii) a 
taxpayer  who  uses  interests,  dividends,  or  capital 
gains  received  for  further  trading  in  financial 
instruments  within  the  scope  of  the  IIA  is exempt 
from income tax on the receipt of such income in 
the  IIA.  Only  payments  made  from  the  IIA  before 
the expiry of 15 years are taxable at the 15% tax 
rate,  which  is  lower  than  the  one  generally 
provided  (i.e.  25%  for  interests  and  dividends)  or 
for capital gains (i.e. 25% which decreases to 20% 
after  a  5-year  holding,  to  15%  after  a  10-year 
holding and to 0% after a 15-year holding). The IIA 
consists of two sub-accounts: a basic sub-account, 
and a special sub-account, the latter allowing only 
investments  in  Slovenian  financial  instruments. 
The Act will be applicable as of 5 March 2026. 

earners  at  a  wage  level  of  67%  of  the  average 
wage,  whose  spouses  earn  the  average  wage, 
were  also  subject  to  a  tax  wedge  that 
is 
considerably  above  the  EU  average.  However,  the 
difference  between  their  tax  wedge  and  that  of 
single earners at the same wage level  was below 
the EU average. Inequality of disposable income as 
measured by the Gini coefficient stood at 23.8% in 
2024  and  was  the  third-lowest  in  the  EU (52).  The 
redistributive  effect  of  taxes  and  benefits  taken 
together appears rather strong: in 2024, Slovenia’s 
tax-benefit 
as 
measured  by  the  Gini  coefficient (53)  by  8.3 pps, 
which  was  above  the  EU  average  of  7.8  pps  (see 
Table A3.1). 

inequality 

reduced 

system 

Graph A3.2: Tax wedge for single and second 
earners as a % of total labour costs, 2025 

levels, 

While  Slovenia’s  labour-tax  wedge  is  high 
inequality 
across  different  wage 
appears  to  be  not  too  pronounced.  In  2025, 
Slovenia’s  labour-tax  wedge (51)  was  higher  than 
the  EU  average  for  single  person  households  at 
various income levels, including the average wage 
and  high  incomes  at  167%  of  the  average  wage. 
However, the difference from the EU average was 
particularly  strong  at  50%  of  the  average  wage, 
where  Slovenia’s  tax  wedge  was  the  second-
highest  of  all  Member  States  at  41.4%,  almost 
10 pps higher than the EU average at 31.6%, and 
at 67% of the average wage, where Slovenia had 
the  highest  tax  wedge  of  all  Member  States  at 
43.3%, compared to an EU average of 35.8% (see 
Graph A3.2).  The  difference  between  the  tax 
wedge  at  167%  and  at  50%  of  average  wage  is 
substantially  below  the  EU  average.  Second 

Note: The second earner tax wedge shows a household’s tax 
wedge resulting from the wage that a second earner taking 
up a job at 67% of the average wage receives. It does not 
show the total tax wedge of the household. The household is 
assumed to have a first earner at 100% of the average wage 
and no children. For the methodology of the tax wedge for 
second earners, see OECD (2024), Taxing Wages 2024. 
Source: European Commission 

Slovenia  regularly  monitors  and  publishes 
the  type  and  size  of  tax  expenditures  in 
annual  reports  on  tax  expenditure (54).  These 
cover  tax  expenditures  in  personal  income  tax 

(51)  The  tax  wedge  is  an  indicator  of  the  tax  burden  on  labour 
that  can  be  assessed  at  various  levels  of  earnings.  It  is 
defined as the sum of personal income taxes, employee and 
employer  social-security  contributions  and  other  mandatory 
contributions,  expressed  as  a  percentage  of  total  labour 
costs  (composed  of  the  net  wage,  personal  income  tax, 
social 
contributions,  and  other  mandatory 
contributions).  Tax  wedge  data  in  the  2026  country  reports 
are calculated by the Joint Research Centre of the European 
Commission and based on the EUROMOD model, while in the 
past  country  reports  they  were  based  on  the  OECD  tax  and 
benefit  model.  While  the  underlying  methodology  is  very 
similar, differences in the assumptions can lead to different 
results between both models. 

security 

(52)  European Commission based on EU-SILC. 

(53)  The  Gini  coefficient  measures  the  extent  to  which  the 
distribution  of  income  within  a  country  deviates  from  a 
perfectly  equal  distribution.  A  coefficient  of  0  expresses 
perfect equality where everyone has the same income, while 
a coefficient of 100 expresses full inequality where only one 
person has all the income. 

(54)  See European Commission: Directorate-General for Taxation 

and Customs Union, Mind the gap – Challenges and 
opportunities for tax compliance and tax expenditures in the 
EU – Full report, Publications Office of the European Union, 
2025. 

45 

41.443.345.648.944.3202530354045505550100150Tax wedge, % of total labour costsEarnings as % of the average wageSingle earner - SISingle earner - EU averageSecond earner -  SISecond earner -  EU average 
 
   
 
tax 

(PIT), corporate income tax (CIT), excise duties, VAT 
and  taxes  on  motor  vehicle  traffic.  However,  it 
neither  reviews  nor  evaluates  them.  The  report  is 
prepared by the Ministry of Finance as part of the 
annual  budget  accounts.  According  to  the  2023 
to 
expenditures 
Report, 
EUR 3.3 billion  or  5.2%  of  GDP  in  2023,  a  0.1 pp. 
increase  against  the previous  year.  EUR 1.5 billion 
of  this  (or  2.3%  of  the  GDP)  comes  from  PIT-
related  tax  reliefs  and  exemptions.  The  second 
largest  percentage  comes 
relief 
(EUR 1.1 billion  or  1.7%  of  GDP).  Next  come  CIT 
reliefs and incentives (at EUR 491 million or 0.8% 
of GDP) and excise duties refunds and exemptions 
(at EUR 182 million or 0.3% of GDP). 

from  VAT 

amounted 

Slovenia displays a low VAT compliance gap, 
supported  by  a  well-established  VAT 
collection and administration system. In 2023, 
Slovenia’s  VAT  compliance  gap  was  estimated  at 
4.9%  of  the  VAT  total  tax  liability,  well below the 
EU average (9.5%), with a gap  of 4.5% for 2024. 
The  country  performs  very  well  in  the  area  of 
identification  for  VAT  purposes  (identification  and 
deregistration),  with  VAT  identification  and  return 
filing  being  fully  digitalised,  and  the  identification 
process  including  several  risk  checks.  Slovenia 
does  not  perform  CIT  and  PIT  gap  estimation, 
although it has recently taken steps to strengthen 
its tax gap estimation capabilities (55). 

Slovenia  shows  strong  performance  in  e-
filing  across  all  tax  types,  with  near-
universal  digital  filing  rates.  In  particular, 
Slovenia has had full uptake of VAT e-filling since 
2018,  and  above  EU-average  e-filling  rates  for 
corporate  income  taxation  and  personal  income 
taxation.  Since  mid-2025  taxpayers  can  receive 
pre-filled  VAT  returns.  These  high  e-filing  rates 
reflect  an  effective  digital  interface,  likely  due  to 
user-friendly  systems  and  mandatory  digital 
submission  for  VAT.  Slovenia’s  reduction  of  its 
compliance  burden  is  among  the  EU’s  better 
performances. 

(55)  See European Commission: Directorate-General for 

Taxation and Customs Union, Mind the gap – Challenges 
and opportunities for tax compliance and tax expenditures 
in the EU – Full report, Publications Office of the European 
Union, 2025. 

46 

 
 
PRODUCTIVITY 
ANNEX 4: INNOVATION TO BUSINESS  

Slovenia  continues  to  fall  short  on  the 
implementation  of  its  ambitious  targets  for 
research and development  (R&D) investment 
and  access  to  finance  for  innovative  SMEs. 
According  to  the  2025  edition  of  the  European 
Innovation  Scoreboard (56),  Slovenia  remains  a 
moderate  innovator,  although  its  performance  (at 
95%  of  the  EU  average)  is  catching  up  to  the  EU 
average.  One  of  the  main  shortcomings  is  the 
mediocre  performance  of  the  public  science  base 
low  public  R&D  spending, 
underpinned  by 
stagnating  at  0.64%  of  GDP  with  the  total  R&D 
intensity (57) at 2.16% of GDP in 2024 (EU average 
is  2.24%).  Additional  challenges  stem  from  the 
underdeveloped startup ecosystem, the result of a 
combination  of  regulatory  barriers,  low  levels  of 
investment  and  risk-averse  business  culture.  In 
both cases, increased and stable public funding for 
R&D,  in  line  with  the  2025  country  specific 
recommendation  (CSR),  and  long-term  initiatives 
would  be  beneficial.  While  firms  are  gradually 
increasing their uptake of digital technologies, with 
relatively  stronger  results  in  artificial  intelligence, 
progress remains uneven, as both the basic digital 
intensity  of  SMEs  and  the  overall  uptake  of  data 
analytics continue to lag behind EU averages. 

Excellent science  

Slovenia’s  public  expenditure  on  R&D 
continues  to  lag  behind  the  EU  average  as 
well  as  the  national  target.  In  2024,  public 
spending stood at 0.64% of GDP (58). This is below 
the 1.25% target set out in the Slovenian scientific 
research  and  innovation  (R&I)  strategy (59)  for 
2030  and,  although  it  is  increasing,  it  does  not 
follow 
increase 
the  0.08  percentage  point 
stipulated  by  the  Act  on  Research,  Development 

(56)  The  EIS  provides  a  comparative  analysis  of  innovation 
performance in EU countries, including the relative strengths 
and  weaknesses  of  their  national  innovation  systems  (also 
compared  to  the  EU  average).  EIS  2025  -  Country  profile: 
Slovenia. 

(57)  defined as gross domestic expenditure on R&D as a 

percentage of GDP. 

(58)  EU average 0.72%. 

(59)  Resolution-on-the-Slovenian-Scientific-Research-and-

Innovation-Strategy-2030.pdf. 

international 

and Innovation Activities (60). Low investments also 
result in the low quality of the public science base 
as indicated by the highly cited publications, which 
have  declined  over  time  and  were  below  the  EU 
average in 2022 (61). However, the increasing ratio 
of 
that 
Slovenia  is  well-integrated  in  the  international 
research  ecosystem.  Increasing  the  volume  of 
public spending on R&D, in line with the 2025 CSR 
on  investments  in  research,  development  and 
innovation,  is  important  for  strengthening  the 
Slovenian science base. 

co-publications  shows 

of 

and 

historical 

fragmentation 

between  ministries 

The 
of  R&I 
governance  still  holds back the performance 
of  the  public  science  base.  The  fragmentation 
was  due  to  the  lack  of  coordination  and  frequent 
funding 
changes 
responsibilities 
and 
implementation 
agencies (62).  Slovenia  has  made  efforts  in  this 
regard by consolidating most R&I policies into one 
the  Act  on  Research, 
ministry,  updating 
Innovation  Activities  and 
Development  and 
creating  horizontal  coordination  mechanisms  to 
streamline policy initiatives, which were part of the 
Slovenian  recovery  and  resilience  plan  (RRP). 
However,  the  impact  of  these  reforms  is  not 
tangible  yet  and  the  mechanisms  might  need 
reinforcing.  Under  a  technical  support  instrument 
project,  the  OECD  provides  recommendations  to 
address  these  issues,  including  better  alignment 
between various  strategies,  among ministries  and 
between  ministries  and  agencies  and  long-term 
predictable  R&I  funding  programmes (63).  Some 
elements,  like  reorganising  funding  agencies,  has 
already  taken  place  while  others,  such  as  the 
interministerial  R&I  strategy  and  a  multiannual 
financial  framework,  are  yet  to  be  implemented. 
The 
these 
recommendations  as  well  as  the  creation  of  a 

implementation 

continuous 

of 

(60)  Act on Research, Development and Innovation Activities in 
Slovenian: Zakon o znanstvenoraziskovalni in inovacijski 
dejavnosti (ZZrID) (PISRS). 

(61)  Scientific publications in the top 10% most-cited publications 

worldwide in 2022 for SI 6.95%, EU 9.44%. 

(62)  Policy Support Facility - Specific Support to Slovenia 2017. 

(63)  European Commission/Ministry of Higher Education, Science 
and Innovation/ OECD Technical Support Instrument project: 
Improving the Governance Model of the Research and 
Innovation System in Slovenia’ (2022) 
Improving the Governance Model of the Research and 
Innovation System in Slovenia - Reform Support. 

47 

 
 
 
 
 
 
 
monitoring  system  is  important  to  improve  the 
Slovenian public science base. 

and  most  R&D 
innovation (71).  

focuses 

on 

incremental 

Public  financial  support  to  business 
is 
comparable to the EU average, but its impact 
is uneven. Slovenia forewent 0.09% of its GDP as 
tax incentives for innovation in  2023 (72) although 
this  disproportionately  benefits  larger  and  older 
firms,  as  the  OECD  has  reported (73).  The  OECD 
also  suggests  evaluating  the  tax  policy  and 
diversifying the rules to help startups benefit more 
from  the  incentives.  Innovation  grants  amounted 
to  0.1%  of  GDP  in  2024  and  are  seen  as 
impactful,  especially  for  SMEs.  However,  the 
relatively  low  cap  of  these  grants  (EUR 300 000) 
could  limit  their  impact,  in  particular  for  radical 
innovation (74). This is why projects like the Gravity 
and  Strategic projects  organised  by the  Slovenian 
Research  and  Innovation  Agency  (ARIS)  in  2024 
could help extend the impact of financing business 
innovation, as could funding proposals that receive 
the Seal of Excellence label  under Horizon Europe 
calls (75). 

Graph A4.1: Business R&D intensity as % of GDP 

Business innovation 

Business  expenditure  in  R&D  in  Slovenia 
stand at the EU average, but there has been 
a strong decline in the past few years. Despite 
being  in  line  with  the  EU  average,  business 
spending  on  R&D  has  dropped  from  1.57%  in 
2021  to  1.50%  of  GDP  in  2024 (64),  which  was 
mostly  due  to  the  drop  in  R&D  activities  in 
SMEs (65)  (see  Graph A4.1).  Both  energy-related 
innovation (66)  and  energy-intensive  industries (67) 
are  dominant  in  Slovenia  so  the  country  was 
particularly  susceptible  to  recent  crises,  which 
could  be  one  of  the  factors  reducing  business 
spending  on  R&D.  Moreover,  the  openness  of  the 
Slovenian  economy  makes  it  sensitive  to  global 
conflicts  and  supply  chain  disruptions  (see  also 
Annex  5).  R&D  expenditure  has  also  decreased  in 
the  services  sector,  while  the  pharmacological 
sector has increased its spending on R&D (68). The 
proportion  of  high-tech  manufacturing  is  high 
(3.59% compared to the EU average of 2.14%) (69) 
and  the  private  sector  employs  a  high  number  of 
researchers  (6.5  per  thousand  active  population 
compared  to  the  EU  average  5.9  in  2024),  which 
creates 
innovation. 
a 
patent 
Nonetheless 
applications  (2.1)  than  the  EU  average  (2.8) (70), 

fertile 
Slovenia 

ground 
has 

for 
fewer 

(64)  The EU average was 1.49% of GDP in 2024. 

Source: Eurostat 

(65)  Business expenditure on R&D performed by SMEs dropped 
from 0.63% of GDP in 2021 to 0.51% of GDP in 2024. 

(66)  9.2% of highly cited publications and 11.4% of patent 
applications are in the field of energy in 2020. The EU 
averages are 9.8% and 18.4%. 

(67)  23.5% of energy is consumed by industry in Slovenia, (23.1% 
in EU) and 23% of value added is from manufacturing (14% 
in EU) 
source IEA Slovenia - Countries & Regions - IEA and OECD. 

(68)  Private expenditure on R&D in services of business economy 
went from 0.39% of GDP in 2021 to 0.35% in 2024 while in 
manufacturing pharmaceutical products it grew from 0.49% 
of GDP in 2021 to 0.56% in 2024. 
source: Eurostat - BERD by NACE Rev. 2 activity. 

(69)  Value added in high-tech manufacturing as % of total value 

added in 2024,Source: Eurostat. 

(70)  Patent Applications filed under PCT per billion GDP (in PPS 

EUR). Last year available: 2022. 

Slovenia  performs  well  in  terms  of  public-
private  co-publications,  but  businesses  seem 
reluctant  to  finance  public  research.  The 
strategic  R&I  partnerships  have  helped  maintain 

(71)  Quality of life in Slovenia – Development report 2025. 

(72)  EU average is 0.10% of GDP in 2023 

source: OECD. 

(73)  A review of Slovenia’s industrial strategy (EN). 

(74)  JRC Publications Repository - An evaluation of the impact of 

RDI State aid in Slovenia on firms' performance. 

(75)  Seal of Excellence is awarded to proposals under specific 
Horizon Europe calls that were evaluated as excellent but 
could not be funded due to budgetary restrictions 
Seal of Excellence - Research and innovation - European 
Commission. 

48 

1.0%1.2%1.4%1.6%1.8%2.0%2.2%2.4%201520202021202220232024EU averageAustriaSloveniaFinland 
 
  
 
the  high  level  of  collaboration  between  business 
and academia, shown by the proportion of public-
private  co-publications (76).  On  the  other  hand, 
public  R&D  activity 
financed  by  Slovenian 
businesses  only  amounted  to  0.02%  of  GDP  in 
2024,  lower  than  the  EU  average  (0.06%).  The 
main  reasons  cited  for  this  reluctance  are 
complicated  rules  and  a  lack  of  culture (77).  The 
updated  Act  on  Research,  Development  and 
Innovation  Activities  has  removed  some  barriers, 
such  as  the  restriction  on  researchers  setting  up 
companies. The public-private research calls run by 
ARIS  have  the  potential  to  increase  collaboration, 
although  continuous  monitoring  and  evaluation  is 
needed. 

facilitating 
cooperation  between  businesses, 
research  organisations  and  solution  providers.  At 
the  same  time,  Slovenia  is  active  in  several 
technology  projects,  notably 
cutting-edge 
in 
quantum 
technologies,  semiconductors,  cloud 
computing  and  AI,  including  as  indirect  and/or 
associated  partners in  EU-level  initiatives  such  as 
the  IPCEI  on  Microelectronics  and  Communication 
Technologies  and  the  IPCEI  on  Next  Generation 
Cloud  Infrastructure  and  Services.  In  this  context, 
comparatively  strong  performance  in  selected 
technologies  and  existing  support  measures  have 
not  yet  translated  into  a  broader  base  of  high-
growth firms. 

on 
a  mixed 

performance 
shows 
the 

digital 
Slovenia’s 
picture 
technologies 
depending  on 
technology.  Slovenia 
performs around the EU average in the uptake of 
cloud computing, with 42.95% of businesses using 
cloud services and shows a comparatively stronger 
performance  in  artificial  intelligence  (AI),  where 
adoption  has  increased  to  21.61%  of  enterprises, 
above  the  EU  average  (19.95%).  By  contrast,  the 
adoption  of  digital  technologies  remains  weaker 
among SMEs, with only 65.67% of SMEs reaching 
at least a basic level of digital intensity, compared 
to  an  EU  average  of  71.39%.  The  uptake  of  data 
analytics  also  remains  below  the  EU  average,  at 
30.87% of enterprises compared to 39.85% at EU 
level.  To  support  the  digital  transformation  of 
SMEs,  Slovenia  has 
two  European  Digital 
Innovation Hubs – the Digital Emergency Response 
for Slovenia (EDIH DIGI-SI) and the Smart, Resilient 
(SRC  EDIH). 
and  Sustainable  Communities 
Recovery and Resilience Facility (RRF) funding has 
supported  investments  in  digital  tangible  and 
intangible assets, as well as in the twin transition, 
combining  digitalisation  with  circular  business 
models.  As  no  new  initiatives  of  a  comparable 
scale  and  scope  are  currently  planned,  ensuring 
continuity  and  maximising  the  impact  of  these 
measures  will  be  important.  The  newly  launched 
competence  centre  for  AI  is  expected  to  further 
support  AI  uptake  by  companies  by  providing 
guidance,  training  and  advisory  support,  and  by 

(76)  8.7% of publications are public-private co-publications in 

Slovenia in 2024, 7.6% in EU. 
Source: Science-Metrix. 

(77)  View of Technology Transfer Offices for Better Management 
of The University-Industry Collaboration: Comparison of 
Slovenia, Italy, And Malta. 

49 

Entrepreneurial dynamism 

Slovenia  has  a  low  proportion  of  startups, 
and the limited availability of venture capital 
(VC),  particularly  for  later-stage  scaleups, 
poses  a  significant  challenge  for  their 
growth (78). Slovenia has one of the lowest levels 
of  VC  in  the  EU (79)  and  does  not  offer  incentives 
for  business  angels.  Although  the  VESNA  Venture 
Capital  Fund  and  the  Slovenian  Enterprise  Fund 
in  the  VC  market, 
attempt  to  fill  the  gap 
government venture capital only represents 5% of 
all  deals.  The  capital  market  development 
strategy (80),  part  of  the  RRP,  includes  relevant 
measures,  such  as  the  new  act  on  alternative 
investment funds. Nevertheless, the strategy could 
be  further  strengthened  by  a  single  digital  portal 
for investing in SMEs (81).  

Slovenia  lags  behind  in  startups  creation. 
According to an OECD report, while the percentage 
of  startups  is  close  to  average  in  manufacturing, 
this proportion drops for the non-financial services 
sector (82).  Despite  the  high  survival  rate  and  fast 
growth of young companies, the low entry rate of 

(78)  Venture Capital is 0.007% of GDP in Slovenia in 2024. The 

EU average is 0.063% of GDP. 

(79)  OECD 2025, A review of Slovenia’s industrial strategy (EN). 

(80)  OECD DPP - Policy Detail - Strategy for the development of 

the capital market in Slovenia by 2030. 

(81)  OECD Economic Surveys: Slovenia 2024 (EN). 

(82)  Startups (firms 0-2 years) represent 12% of all businesses in 

Slovenia in 2022 
source: OECD Insights on Productivity and Business Dynamics 
2025 – Country Notes: Slovenia (EN). 

 
 
 
recently 

adopted 

Slovenian 

firms points toward low business dynamism in the 
country.  It  might  be  due  to  high  barriers  to entry, 
for  example  limited  access  to  finance  and  the 
administrative and regulatory burden, which deter 
riskier  ventures,  like  break-through  innovators (83). 
startup 
The 
strategy (84) 
identifies  pertinent  challenges  to 
startups  like  administrative  obstacles,  lack  of 
talent  and  underdeveloped  capital  market.  It  sets 
including  creating  476 
out  ambitious  goals 
startups  per 
(currently 
238 (85)), investing at least EUR 410 per thousand 
inhabitants  by  2030  and  25%  year-on-year 
growth  of  the  sector.  The  implementation  of  this 
ambitious plan, needs to accelerate to achieve the 
goals as set out in the document by 2030, in line 
with the CSR 2025, strengthening competitiveness 
by promoting business dynamism and the creation 
of  high-growth  companies  by 
improving  the 
conditions  for  equity  investment,  including  VC 
investment.  

inhabitants 

thousand 

in 

Administrative  burden  is  one  of  the  main 
regulatory  barriers  for  business  innovation. 
The  OECD  finds  that  regulatory  barriers  are 
average  and  regulatory  restrictiveness  is  higher 
than  the  EU  average  limiting  business  dynamics. 
Slovenia  has  made  strong  progress 
the 
implementation  of  the  Startup  Nations  Standard, 
especially  on  stock  options,  where  it  reached  full 
alignment  with  the  standards (86).  However,  the 
standards  in  ‘innovation  in  regulation’  are  lagging 
lack  of  any  regulatory 
behind  due  to  the 
sandboxes  and  of  any  exemption  or  alternative 
procedures, such as simplified or phased reporting 
registration 
reduced  audit  or 
requirements, 
obligations, 
for  newly 
regimes 
established  firms  or  risk-based  application  of 
impact  assessments, 
to  ease  administrative 
burdens for startups. The Development Council (87) 
aims  to  bring  political  coordination  for  research 

transitional 

innovation  regulation, 

and 
including  startups, 
although  its  function  could  be  strengthened  by 
more  regular  meetings  or  sub-groups  holding 
preliminary  discussions  on  topics  of  high  interest 
before the high-level meetings.  

Skills mismatch hinders progress in Slovenia. 
Although  having  a  high  portion  of  the  population 
attained  tertiary  education, 
including  a  good 
proportion of STEM graduates, and both public and 
private sector employs more researchers than the 
EU  average (88),  employers  report  shortages  of 
highly  skilled  labour,  especially  in  the  ICT  sector 
(see  Annex  11).  This  suggests  a  skills  mismatch 
and  the  need  to  improve  upskilling,  reskilling 
programmes 
(see  also  Annex  13).  Although 
Slovenia’s  talent  attractiveness  index  for  highly 
skilled  workers  and 
is 
significantly lower the EU average (89). It is due to 
the lengthy visa processes and the low number of 
programmes  to  attract  and  retain  talent.  In  this 
respect  the  newly  established  researcher  mobility 
scheme and the Promoting Entrepreneurship grant 
with  around  EUR 90  million,  which 
includes 
mentoring,  training  and  access  to  resources  for 
entrepreneurs,  are  examples  of  promising 
initiatives (90). Another positive development is the 
amendment  of  the  Income  Tax  Act  (2024)  which 
allows  the  use  of  stock  options  for  startups  as 
incentives  for  employees (91)  although  it  requires 
registering  in  the  startup  database,  which  is 
reported to be cumbersome (see also Annex 3).  

for  entrepreneurs 

Entrepreneurial education is well established 
but  lacks  systematic  evaluation.  In  2025, 
Slovenia’s  curricula  reform  for  basic  and  upper 
secondary  schools 
introduced  common  goals, 
including entrepreneurship, to be addressed across 
all subjects. Entrepreneurial  education is also well 
in  higher  education,  where  study 
developed 
programmes  explicitly  promote  entrepreneurship 

(83)  OECD Insights on Productivity and Business Dynamics 2025 

– Country Notes: Slovenia (EN). 

(84)  Slovenian startup strategy (in Slovenian). 

(85)  Source: Dealroom. 

(86)  European Startup Nations Alliance, Startup Nations 

Standards report 2025. 

(87)  The  Development  Council  of  the  Republic  of  Slovenia  is  an 
expert  advisory  body  to  the  government  of  the  Republic  of 
Slovenia in the field of scientific research and innovation and 
is  an  important  body  for  the  mutual  coordination  of  views 
and  consensus-building  on  policies  in  the  field  of  scientific 
research and innovation. 

(88)  Slovenia  has  17.30  new  graduates 

in  science  and 
engineering  and  4.09  in  the  field  of  ICT  per  thousand 
population in  2024  compared  to the  EU  averages of  16.82 
and 3.84. 

The  public  sector  employs  5.0  research  FTEs  per  thousand 
active population, while the private sector 6.5 FTEs in 2024. 
EU averages are 4.3 and 5.9 respectively. 

(89)  Talent Attractiveness 2023 | OECD. 

(90)  OECD 2025, A review of Slovenia’s industrial strategy (EN). 

(91)  Amendment of the Income Tax Act (ZDoh-2AB), 6th 

December 2024 
Content of the Official Journal | Official Journal. 

50 

 
 
 
startups, 

spin-offs  and 

through 
innovation 
projects.  National  strategies  reinforce  this  focus: 
the  2030  national  higher  education  programme 
supports  personal  initiative,  employment  creation 
and  integration  with  international  entrepreneurial 
environments, while the 2022-2030 national adult 
education  programme  emphasises  skills 
for 
industrial 
entrepreneurship, 
targeting  groups  such  as  women.  Despite  these 
efforts,  there  is  still  limited  systematic  research 
and evaluation of entrepreneurial education. 

transition 

and 

Table A4.1:  Key innovation indicators 

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

51 

R&D intensity (gross domestic expenditure on R&D as % of GDP)2.072.222.162.102.132.16:2.243.44Public expenditure on R&D as % of GDP0.670.530.560.600.640.64:0.720.64Scientific publications of the country within the top 10% most-cited publications worldwide as % of total publications of the country 6.546.827.996.95:::9.4412.31Researchers (FTEs) employed by public sector (Gov+HEI) per thousand active population4.23.84.14.65.05.0:4.3:International co-publications as % of total number of publications39.1547.3851.6152.2853.7057.25:57.24:Business enterprise expenditure on R&D (BERD) as % of GDP1.401.691.581.481.471.50:1.492.69Business enterprise expenditure on R&D (BERD) performed by SMEs as % of GDP0.550.730.630.540.500.51:0.470.30Researchers employed by business per thousand active population3.44.36.66.56.66.5:5.9:Patent applications filed under the Patent Cooperation Treaty per billion GDP (in PPS €)3.742.172.382.13:::2.812.20Employment share of high-growth enterprises measured in employment (%):::0.830.85::0.87:SMEs with at least a basic level of digital intensity% SMEs (EU Digital Decade target by 2030: 90%)::::50.36:65.6771.39:Data analytics adoption% enterprises (EU Digital Decade target by 2030: 75%)::::19.06:30.8739.85:Cloud adoption% enterprises (EU Digital Decade target by 2030: 75%)::::36.00:42.9546.69:Artificial intelligence adoption % enterprises (EU Digital Decade target by 2030: 75%)::::11.3720.8921.6119.95:Public-private scientific co-publications as % of total number of publications7.879.139.569.599.558.65:7.62:Public expenditure on R&D financed by business enterprises (national) as % of GDP0.080.050.040.02:0.02:0.060.02Total public sector support for BERD as % of GDP0.290.220.220.200.20::0.21:R&D tax incentives: foregone revenues as % of GDP0.050.120.080.100.09::0.100.16BERD financed by the public sector (national and abroad) as % of GDP 0.240.100.140.100.110.10:0.11:Venture capital (market statistics) as % of GDP (calculated as a 3-year moving average)0.0010.0100.0030.0070.0050.007:0.063:Seed stage funding share (% of GDP)0.0000.0010.0000.0010.0010.001:0.005:Start-up stage funding share (% of GDP)0.0010.0060.0020.0050.0030.003:0.030:Later stage funding share (as % of GDP)0.0000.0030.0010.0020.0010.003:0.027:New graduates in science & engineering per thousand population aged 25-34:14.715.216.517.317.3:16.8:Graduates in the field of computing per thousand population aged 25-34:2.32.63.23.74.1:3.8:Science and innovative ecosystemsSlovenia2010201520202022202320242025EU average (1)USHeadline indicatorInnovative talentR&D investment & researchers employed in businessesInnovation outputsDigitalisation of businessesAcademia-business collaboration Public support for business innovationFinancing innovation 
 
  
 
ANNEX 5: SINGLE MARKET AND INDUSTRY 

recommendations 

Slovenia’s business  environment  is impacted 
by  insufficient  investment,  slow  innovation, 
administrative  burdens  and 
regulatory 
barriers,  which  drag  down  competitiveness 
and  productivity  growth.  In  addition,  skills 
shortages,  energy  costs,  uncertainty,  and  limited 
access to finance weigh heavily on an already low 
level of business investment. In this vein, the 2025 
for 
country-specific 
measures 
long-term 
competitiveness,  targeting,  simplification  and  the 
reduction  of  administrative  burden,  restrictions  in 
services  and  regulated  professions,  as  well  as 
barriers  to  services  trade,  and  the  promotion  of 
business  dynamism  by  improving  the  conditions 
for  equity  investment  (CSR  3  2025).  In  addition, 
recommendations  also  called  on 
the  2025 
Slovenia to expedite administrative and permitting 
procedures for wind power installations as well as 
step  up  capacity  building  for  permitting  at  local 
level (CSR 4 2025). 

strengthen 

called 

to 

and 

lengthy, 

Some  significant  steps  have  been  taken  in 
improve  the  business 
recent  years  to 
environment,  but  a  prevalence  of  legislative 
unpredictability 
complex 
procedures  remains,  while  access  to  finance 
also continues to be a barrier. However, Slovenia is 
also  continually  taking  steps  to  improve  in  this 
area  (see  also  Annex  6).  Despite  being  highly 
integrated  into  the  Single  Market  and  a  good 
restrictions 
performance  on  many 
persist in services, including some professions, an 
area  that  is  not  being  actively  addressed  with 
recent  policy  action.  Furthermore,  a 
lack  of 
competition  in  public  procurement  remains  a 
concern,  although  steps  into  the  right  direction 
have  been  taken  and  further  efforts  to  improve 
the situation are ongoing. 

indicators, 

Business dynamics 

Slovenia  has  a  small,  open  and  diversified 
economy.  Industry  makes  up 22%  of  total  gross 
value added (92), one of the highest shares among 
EU Member States. In 2025 exports accounted for 

(92)  Eurostat, 2026, Gross value added and income by main 

industry, Ec.europa.eu. 

52 

80%  of  the  country’s  GDP,  with  Switzerland (93), 
Germany,  Croatia,  Italy  and  Austria  as  Slovenia’s 
main  exporting  partners.  Slovenia's 
largest 
exported  product  groups  include  pharmaceutical 
products,  electrical  machinery  and  equipment, 
machinery  and  mechanical  appliances,  motor 
vehicles  and  mineral  fuels  and  oils (94).  99.9%  of 
Slovenian  companies  are  SMEs  which  employ 
74.3%  of  the  workforce  and  generate  66.8%  of 
value added (95). 

the 

the 

thanks 

country’s 
to 

While the share of public investment relative 
to  GDP  remains  higher than  the  EU  average, 
a low level of business investment continues 
to  hamper  competitiveness,  productivity 
growth  and 
innovation 
continued 
capacity.  Also 
deployment  of  RRF-financed  investment,  public 
investment  remained  high  at  5.1%  of  GDP  in 
2024.  However,  private  investment  as  a  share  of 
in  2024  (EU  average 
GDP  stood  at  11.7% 
12.56%),  the  exact  same  level  as  in  2021  and  a 
slight  decline  compared  to  2022  and  2023.  The 
perceived  investment  gap  reported  by  companies 
in  Slovenia  was  higher  than  the  EU  average,  with 
17%  of  firms  reporting  underinvestment  (EU 
average,  12%).   However,  Slovenian  firms  invest 
marginally  more in new products or services than 
the  EU  average  (14%  vs  13%  EU  average)  and 
slightly  less  in  replacing  existing  equipment (50% 
vs 54%) (96). Slovenia also remains among the EU 
Member States with the lowest inward FDI-to-GDP 
ratio,  with  inflows  of  FDI  having  decreased  in 
2023  and  2024 (97).  At  the  same  time,  labour 
productivity  growth  has  slowed  in  the  past  five 
years  due  to  weaker  total  factor  productivity 
gains (98).  Despite  a  slightly  narrowing  gap, 

(93)  Mainly processing transactions in pharmaceuticals without 
change of ownership, see Institute of Macroeconomic 
Analysis and Development, 2025, Pregled poslov 
oplemenitenja blaga v statistiki zunanje trgovine Slovenije, 
Umar.gov.si. 

(94)  Slovenia Business, 2025, Slovenia is highly open to foreign 

trade, Sloveniabusiness.eu. 

(95)  European Commission, 2025, SME Performance Review, 

Ec.europa.eu. 

(96)  European  Investment  Bank,  2025,  EIB  investment  survey 

2025, Eib.org. 

(97)  Institute of Macroeconomic Analysis and Development, 
2025, Quality of life in Slovenia – Development Report 
2025, Umar.gov.si. 

(98)  International Monetary Fund, 2026, Republic of Slovenia 
2025 Article IV Consultation – Press Release and Staff 
Report, Imf.org. 

 
 
 
 
 
 
Slovenia continues to lag behind the EU average in 
terms  of  its  labour  productivity,  which  reached 
86% of the EU average in 2025 (see Table A5.1).  
Nevertheless, the manufacturing sector remains a 
significant  driver  of  productivity  growth,  with 
annualised  labour  productivity  increasing  by  4.5% 
between  2004  and  2024.  Other  sectors, including 
financial  and insurance activities and energy,  also 
posted significant productivity gains, growing 4.6% 
and 4.3% annually, respectively. 

Slovenia’s  business  dynamism,  an 
issue 
addressed in the 2025 CSRs, remains slightly 
below the EU average. Entry and exit rates tend 
to  be  low (99)  but  2024  saw  an  increase  of  2.4% 
more  enterprises  operating  in  Slovenia  compared 
to  the  year  before.  However,  their  turnover  was 
0.7% less than in 2023, which constitutes the first 
decline  since  2020 (100).  Of  enterprises  born  in 
2018, 50.3% were still operating after five years. 
Most  enterprises  survived  in  real  estate  activities 
(64.0%  of  enterprise  births  were  active  after  five 
years), followed by water supply, sewerage, waste 
management  and  remediation  activities (101). New 
firms, in particular manufacturing businesses, tend 
to  perform  well  in  early  years.  However,  the 
importance of large firms is declining (102), with the 
share  of  large  enterprises,  their  value  added  and 
share  of  persons  employed  being  below  the  EU 
average, while SME employment is growing (103). In 
2024,  Slovenia  also  saw  fewer  high-growth 
enterprises  and  gazelles  operating  –  it  had  893 
high-growth enterprises (in terms of the growth in 
the number of employees) in industry, construction 
and business services, which is 6.5% fewer than in 
2023.  They  also  employed  10.5%  fewer  persons. 
Overall,  Slovenia  also  had  74  gazelles  (high-
growth  enterprises  up  to  5  years  old)  in  2024, 
level (104).   A 
down  by  7.5%  at  the  annual 
dedicated cluster policy using cluster organisations 
to facilitate Slovenia’s innovation ecosystem could 
be beneficial. 

(99)  OECD, 2025, Slovenia: Business Dynamics, Oecd.org. 

(100) Statistical Office of the Republic of Slovenia, 2025, 

Enterprises 2024, Stat.si. 

(101) Statistical Office of the Republic of Slovenia, 2025, Business 

demography, 2023, Stat.si. 

its 

To  increase  investment  and  strengthen  its 
business  dynamism,  Slovenia  has  taken  and 
is  implementing  several  measures.    While 
these  challenges  persist,  with 
Investment 
Promotion Act, whose amendment was adopted as 
part  of  the  RRP,  Slovenia  has  legislation  in  place 
which  aims  to  promote  domestic  and  foreign 
business  investment.  Slovenia’s  business  portal 
also  aims to  provide investor  support.  In  addition, 
a  2025  amendment  to  the  Income  Tax  Act  has 
been adopted in order to support innovative start-
ups  and  increase  investment  and  an  adopted 
amendment to the Corporate Income Tax Act aims 
to  establish  a  more  favourable  tax  treatment  for 
investment funds (see also Annex 6). Furthermore, 
initiatives part of Slovenia’s new start-up strategy 
should  also  strengthen  business  dynamism  (see 
also further below as well as in Annex 4). 

A  lack  of  skilled  labour,  high  energy  costs, 
and  uncertainty  are  the  main  reported 
investment  obstacles.  According  to  the  EIB 
Investment  Survey,  the  main  long-term  obstacles 
to investment reported by Slovenian firms in 2025 
were  the  availability  of  skilled  staff  (85%,  2024: 
85%),  uncertainty  about  the  future  due  to 
geopolitical  tensions  and  weak  economic  outlook 
(78%,  2024:  77%),  and  high  energy  costs  (77%, 
2024:  75%) (105).     Coupled  with  the  country’s 
rather  low  attractiveness  to  foreign  workers  (see 
also  Annex  11)  and  slow  automation, Slovenia 
labour 
continues 
shortages  and  labour  market  mismatches (106). 
Demographic  factors  as  well  as 
the  slow 
adaptation  of  education  and  training  to  meet  the 
needs  of  the  transition  to  a  net-zero  and 
digitalised  economy  exacerbate  already  existing 
constraints.  A  slightly  above-EU  average  vacancy 
rate  as  well  as  a  particular  shortage  of  ICT 
specialists  and  a  bottleneck  in  green  skills  may 
also  complicate  the  transition  (see  also  Annexes 
11 and 13). In addition, energy-intensive industries 
have  felt  the  burden  of  energy  costs  on  business 
revenues  since  the  energy  crisis  (see  also  Annex 
9). 

to  exhibit  some  persistent 

Although  there  has  been  a  recent  increase, 
the  number  of  bankruptcy  proceedings 

(102) OECD, 2025, Slovenia: Business Dynamics, Oecd.org. 

(105) European Investment Bank, 2025, EIB investment survey 

(103) European Commission, 2025, SME Performance Review, 

Country Fact Sheet Slovenia, Ec.europa.eu. 

(104) Statistical Office of the Republic of Slovenia, 2025, High-

growth enterprises, 2024, Stat.si. 

2025, Eib.org. 

(106) Institute of Macroeconomic Analysis and Development, 
2025, Quality of life in Slovenia – Development Report 
2025, Umar.gov.si. 

53 

 
 
 
remains  low,  with  only  a  moderate  share  of 
companies  having  a  high  exposure  to 
insolvency  risks. 
Indicators  of  profitability, 
liquidity, indebtedness, and debt-servicing capacity 
remained  relatively  favourable  even  after  the 
COVID-19  pandemic,  the  energy  crisis,  and  2023 
floods.  Despite 
over-
increases 
indebtedness and interest rates, companies’ debt-
servicing  capacity  reached  its  most  favourable 
levels since 2006 in 2025 (107). In terms of its legal 
insolvency 
framework,  Slovenia  has  already 
adopted  an  amendment  to  its  Insolvency  Act  to 
transpose  the  EU  Directive  on  Restructuring  and 
Insolvency into national law (108).  

in  debt, 

Business environment 

Despite  some  simplification  and  efforts  to 
cut red tape, administrative burdens are still 
significant  and  challenges  to  the  business 
environment  remain.  This  is  a  key  2025  CSR 
area  and  also  links  to  Slovenia’s  aforementioned 
low level of business investment, as a predictable 
business  environment  is  essential  for  investors. 
Business regulation as such is perceived to be less 
of  an  obstacle  to  investment  than  on  average  in 
the  EU.  While  still  an  issue  for  54%  and  a  major 
obstacle  for  16%,  this  is  considerably  lower  than 
the  EU  averages  of  69%  and  34% (109).  However, 
regulatory  density  and  the  lengthy  procedures 
required  for  interactions  with  public  services  as 
well  as 
in 
legislation  and  tax  policy  are  often  cited  by 
business executives as factors that undermine the 
predictability  and  stability  of  Slovenia’s  business 
environment (110). In particular, permitting can also 
still  constitute  a  major  obstacle,  significantly 
impacting 
in  new 
technologies.  Specifically,  Slovenia’s  Regulatory 

frequent  unpredictable  changes 

firms’  ability 

invest 

to 

(107) Institute of Macroeconomic Analysis and Development, 
2025, Quality of life in Slovenia – Development Report 
2025, Umar.gov.si. 

(108) OECD, 2022, Enhancing insolvency frameworks to support 

economic renewal, Oecd.org. 

(109) European  Investment  Bank,  2025,  EIB  investment  survey 

2025, Eib.org. 

(110) International Institute for Management Development, 2025, 
World Competitiveness Ranking 2025 Slovenia, Imd.org and 
Institute of Macroeconomic Analysis and Development, 
2025, Quality of life in Slovenia – Development Report 
2025, Umar.gov.si. 

Impact  Assessment 
complex and lengthy (111).  

(RIA)  procedure 

remains 

the 

(for 

the 

the 

2025 

includes 

installations 

In 
field  of  simplification,  burden 
reduction and promoting business dynamism, 
as  well  as  permitting,  which  are  addressed 
by 
country-specific 
recommendations,  several  measures  have 
been  taken  in  recent  years,  and  further 
efforts  have  been  announced.  For  instance, 
Slovenia has aimed to make doing business easier 
by setting up a single point of contact system for 
businesses,  or  also  through  the  Slovenian  RRP, 
which 
two  already  adopted 
Debureaucratisation  Acts  as  well  as  a  shortening 
of  permit  and  authorisation  procedures  for 
further 
renewable  energy 
information  on  permitting  for  renewable  energy 
sources,  see  Annex  9).  Furthermore,  according  to 
Slovenia’s  ‘STOP  the  Bureaucracy’  portal,  almost 
400 measures to eliminate administrative barriers 
have  already  been  implemented,  contributing  to 
reported  annual  savings  of  around  EUR 420 
million (112).  Slovenia’s  start-up  strategy,  which  is 
part of the country’s medium-term fiscal structural 
plan, also has administrative burden reduction and 
increased competitiveness and productivity as key 
objectives.  Moreover,  amendments  to  the  Act  on 
the  Supportive  Environment  for  Entrepreneurship 
and  the  Public  Finance  Act  aim  to  allow  greater 
investment by the Slovenian Enterprise Fund in the 
form of equity financing and enable a broader and 
clearer  use  of  financial  engineering  instruments. 
Furthermore,  amendments  to  the  Companies  Act, 
which  aim  to  simplify  some  of  the  existing 
sustainability reporting obligations and reduce the 
related administrative burden for companies, were 
implemented.  In  2025,  Slovenia  also  adopted  an 
Act  on  the  Promotion  of  the  Use  of  Renewable 
Energy  Sources,  which,  among  other  things,  aims 
to  enable  easier  and  electronic  applications  by 
investors  and  defines  new  activities  of  the  RES 
contact  point  to  further  assist  investors  and 
authorities involved in permit-granting, including at 
local level. 

Slovenia  has  also  made  notable  progress  in 
e-government.  While  their  uptake is  higher  than 

(111) Institute of Macroeconomic Analysis and Development, 
2025, Quality of life in Slovenia – Development Report 
2025, Umar.gov.si. 

(112) Republic of Slovenia, STOP the Bureaucracy portal, 

Stopbirokraciji.gov.si. 

54 

 
 
 
in  Slovenia 

is  somewhat 

on  EU  average,  the  availability  of  digital  public 
services (113) 
less 
widespread  than  in  the  EU,  especially  when  it 
comes 
is 
expected to improve with the advancement of the 
implementation of the Single Digital Gateway (see 
Annex 7).  

to  cross-border  services (114).  This 

to 

Businesses  in  Slovenia  benefit  from  strong 
fibre  and  5G  networks,  while  further 
in  very  high-capacity  network 
progress 
deployment remains important 
fully 
support  competitiveness.   Progress  in  fixed 
connectivity continues. Very high-capacity network 
(VHCN)  coverage  in  Slovenia  reached  79.6%  of 
households in  2024,  up  from  78.5% in  2023,  but 
remained  below  the  EU  average  of  82.5%.  By 
contrast,  fibre-to-the-premises  (FTTP)  coverage 
stood at 79.6% in 2024, significantly above the EU 
average  of  69.2%,  reflecting  a  comparatively 
advanced fibre roll-out and providing a solid basis 
for  high-quality  fixed  connectivity  for  households 
and  businesses.  Mobile  connectivity  has  improved 
markedly,  with  overall  5G  coverage  increasing  to 
96.7%  in  2024,  exceeding  the  EU  average  of 
94.3%. Coverage in the 3.4–3.8 GHz band, which is 
particularly  relevant  for  advanced  industrial  and 
substantially, 
business  use,  also  expanded 
reaching  68.1%,  significantly  above 
the  EU 
average 
(51.06%).  These  developments  are 
supported  by  roadmap  measures,  including  RRF-
funded  investment  providing  high-speed  internet 
access  to  educational  institutions  and  very  high-
speed  connectivity  between  public 
research 
institutes,  measures 
to  strengthen  network 
resilience,  and  the  co-financing  of  open  5G  base 
stations,  including  a  EUR  4.2  million  scheme 
targeting  flood-affected  areas. 
In  addition, 
Slovenia’s  Cohesion  Policy  Programme  2021–
2027  provides  support  for  open,  very  high-
capacity  broadband,  with  EUR  19.7  million  co-
financing the construction of backbone and access 
networks 
in  white-spot  areas  where  private 
interest.  The 
operators  have  no 
networks will provide households, businesses, and 
public  institutions  with  connectivity  of  at  least 
100 Mbps,  upgradeable  to  1 Gbps,  supporting  the 
deployment of advanced digital services, including 

investment 

(113) Part of the barriers highlighted in the Single market strategy 
(“Terrible 10”) and the 2026 Annual Single Market and 
Competitiveness Report 

e-business,  e-learning,  Internet  of  Things,  smart 
homes/buildings and 5G applications. 

finance 

to  equity 

Access 
remains  an 
investment  obstacle.  While  Slovenia  has  been 
taking  action  via  its  recovery  and  resilience  plan 
(RRP)  and  has  included  further  commitments  to 
develop  its  capital  market  and  improve  access  to 
finance  in  its  MTP,  financing  remains  heavily 
reliant  on  bank  loans,  despite  some  relative 
improvement  vis-a-vis  other  Member  States  in 
2023  and  2024  (see  Table  A5.1).  To  address  the 
2025 recommendation in this policy area, Slovenia 
has started taking some steps (see Annex 6).  

While  some  companies  experience 
late 
payments  (115),  this  appears  to  be  a  less 
widespread  problem  than  in  many  other 
Member  States.  Slovenia  has  one  of  the 
narrowest payment gaps (i.e. the gap between the 
agreed  and  actual  payment  times)  for  payments 
from  the  public  sector.  However,  the  gap  for 
business-to-business  payments  increased  to  18.1 
days  and  is  now  slightly  above  the  EU  average. 
56.7%  of  SMEs  also  experienced  late  payments 
from  other  business  entities  in  2025,  which  is 
above  the  EU  average,  while  the  share  SMEs 
experiencing late payments from the public sector 
is among the lowest in the EU (see Table A5.1).  

Rules for corporate governance in Slovenia’s 
many  state-owned  enterprises  (SOEs)  seem 
to have improved over recent years (116).  The 
(PMR) (117) 
OECD  Product  Market  Regulation 
database  indicates  that  Slovenia  is  among  OECD 
countries  whose  rules  for  public  ownership  and 
governing of SOEs induce the lowest distortions to 
competition  and 
lowest  shelter  from  market 
discipline (118).  The  largest  SOEs  by  value  operate 
transport. 
in 
Nevertheless,  Slovenia  continues  to  maintain 
stakes  in  companies  in  highly  competitive  sectors 

infrastructure, 

energy 

and 

(115) Part of the barriers highlighted in the Single market strategy 
(“Terrible 10”) and the 2026 Annual Single Market and 
Competitiveness Report 

(116) OECD, 2024, Ownership and Governance of State-Owned 

Enterprises 2024, Oecd.org. 

(117) OECD, 2024, Product Market Regulation Policy Simulator 

2023-2024 Edition, Oecd.org. 

(114) European Commission, 2025, Digital Decade Country Report 

(118) OECD, 2023, Descriptions of the components of the OECD 

Slovenia, Ec.europa.eu. 

PMR economy-wide indicator, Oecd.org. 

55 

 
 
 
 
 
that have little or no economic rationale for state 
ownership (e.g. tourism) (119). 

(1.1%).  The  country  also  remains  considerably 
below  the  EU  average  for  the  number  of  Single 
Market-related infringement cases.  

Single Market  

Recent  economic  volatility  and 
trade 
tensions underlined the importance of the EU 
Single  Market  for  growth  and  resilience. 
Slovenia  has  one  of  the  highest  rates  of  trade 
integration for goods in the Single Market. Intra-EU 
trade  represented  57.8% of  GDP  in  2025 (mostly 
due  to  this  high  level  of  trade  in  goods).  85%  of 
Slovenian  firms  either  imported  and/or  exported 
goods and/or services (within the Single Market or 
beyond),  according  to  the  EIB  Investment  Survey, 
which  is  considerably  above  the  EU  average  of 
66% (120).  The  largest  investors  in  Slovenia  are 
from EU and EFTA Member States, with Slovenia’s 
main  trading  partners  (Austria,  Germany,  Italy, 
Croatia  and  Switzerland)  contributing  about  three 
fifths of the total value of direct investment (121). 

Slovenia  continues  to  perform  well  on  key 
Single  Market  indicators.  Over  the  last  few 
years, Slovenia caught up on its lag in transposing 
and  conforming  with  Single  Market  directives (122) 
and  increased  its  resolution  rate  for  SOLVIT,  the 
EU  network  for solving  cross-border  problems  of 
citizens  and  businesses.  In  2025,  Slovenia  solved 
100%  of  the  SOLVIT  cases  it  handled  as  lead 
centre (EU average 84.6%) (123). The percentage of 
Single  Market  directives  not  transposed  on  time 
(transposition  deficit)  stands  at  0.8%  (below  both 
the EU average of 1.1% and the 1% target set by 
the  EU  Council).  The  conformity  deficit  (i.e.  the 
percentage  of  all  Single  Market  directives 
transposed  incorrectly)  is  one  of  the  narrowest  in 
the  EU,  despite  increasing  from  0.5%  to  0.7%  in 
2025, with Slovenia outperforming the EU average 

Compliance  of  products circulating  in  the 
Single  Market (124)  is  key  to  ensuring  both  a 
level-playing field for law-abiding companies 
and  the  safety  of  consumers. In Slovenia,  the 
number  of  market  surveillance  investigations  has 
increased  compared  with  2019.  In  2025,  national 
authorities  reported  in  the  EU  system  for  market 
surveillance 
total 
of 170.4 investigations per one million inhabitants, 
which  is higher  than  the  EU median  of 136.2. The 
number 
in 
absolute  terms,  which  may  also  be  the  result  of 
insufficient  IT  national  interoperability  to  the 
ICSMS  system.  The  upcoming  revision  of  the 
Market Surveillance Regulation will upgrade ICSMS 
to a fully interoperable EU digital platform.  

notifications remains limited 

(ICSMS) 

of 

a 

country-specific 

recommendation 

Regulatory and administrative barriers to the 
Single Market persist, affecting goods trade, 
and particularly the provision of services. For 
goods, businesses report that general driving bans 
for heavy goods vehicles can hamper cross-border 
operations (125).  For  services,  cross-border  trade 
remains comparatively restrictive.  To address the 
2025 
on 
reducing  administrative  burden  and  regulatory 
restrictiveness 
regulated  professions  and 
services  trade,  Slovenia  has  not  yet  taken  any 
specific  measures.  While  the  country’s  services 
export market share has gradually increased since 
2015 (126),  barriers  to  services  trade  remain. 
the  most  open  sector,  while 
Insurance 
engineering services are the most restricted when 
compared with other countries. Limitations on the 
duration  of  stay  for  service  suppliers  and  limited 
recognition  of  foreign  qualifications  are  potential 
hindrances (127).  

in 

is 

(119) Republic of Slovenia, 2025, Press release, Vlada dopolnila 

strategijo upravljanja državnih naložb, Gov.si. 

(120) European Investment Bank, 2025, EIB Investment Survey 

2025, Eib.org. 

(124) Part of the barriers highlighted in the Single market 

strategy (‘Terrible Ten’) and the 2026 Annual Single Market 
and Competitiveness Report. 

(121) Institute of Macroeconomic Analysis and Development, 

(125) European Round Table for Industry (ERT), 2025, Single 

2024, Development Report, Umar.gov.si. 

Market Compendium of Obstacles, ert.eu. 

(122) Part of the barriers highlighted in the Single market strategy 
(‘Terrible 10’) and the 2026 Annual Single Market and 
Competitiveness Report. 

(126) Institute of Macroeconomic Analysis and Development, 
2025, Quality of life in Slovenia – Development Report 
2025, Umar.gov.si. 

(123) European Commission, Single Market and Competitiveness 

(127) OECD, 2026 Services Trade Restrictiveness Index (STRI), 

Scoreboard, Ec.europa.eu. 

Oecd.org. 

56 

 
 
 
in 

Barriers  also 
professional 
persist 
services (128).  Regulatory  restrictiveness is  higher 
than  the  EU  average  for  professions  such  as 
lawyers,  real  estate  agents,  civil  engineers  and 
architects (129).  Overall,  261  specific  professions 
are regulated, which is considerably above the EU 
median (130). Moreover, language requirements can 
act  as  an  obstacle  to  market  entry  for  foreign 
providers (131).  Reducing  regulatory  barriers  in  the 
professional services sector will make entry easier 
and  improve  quality  and  prices (the  RRP  does  not 
cover  this).  In  particular,  the  profession  of  lawyer 
is  more  strictly  regulated  than  in  other  Member 
States and the fragmented system regulating civil 
engineers  could  hinder  the  free  movement  of 
professionals.  In  addition,  variations  in  regional 
regulations  governing  tourist  guides  may  hinder 
market access and affect both national and cross-
border  service  providers  (132).  So  far,  progress  in 
addressing  barriers 
in  the  field  of  business 
services  has  remained  limited.  In  answer  to  a 
survey  carried  out  by  the  Commission  between 
December  2025  and  February  2026,  Slovenia 
reported  it  fully  implemented  1,  and  partially 
implemented 2, out of 9 of the 2021 Commission 
recommendations (133). 
is 
currently  assessing  Slovenia’s  answer  to  measure 
the  2021 
in 
actual  progress 
recommendations.    

implementing 

Commission 

The 

Also related to the 2025 recommendation on 
and 
reducing 
strengthening 
the 
government  aims  to  accelerate  and  simplify 

burdens 
dynamism, 

administrative 

business 

(128) Part of the barriers highlighted in the Single market strategy 
(“Terrible 10”) and the 2026 Annual Single Market and 
Competitiveness Report. 

(129) OECD, 2024, Product market regulation – country note 

Slovenia, 2024, Oecd.org. 

(130) European Commission, Regulated professions database, 

Ec.europa.eu. 

(131) Official Gazette of the Republic of Slovenia, 2016, Act 

Regulating the Procedure for the Recognition of Professional 
Qualifications for Practising Regulated Professions (ZPPPK), 
pisrs.si. 

(132) European Commission, 2021, Communication on updating 
the reform recommendations for regulation in professional 
services, COM(2021)385. 9/7/2021, Eur-lex.europa.eu. 

(133) European Commission, 2021, Communication on updating 
the reform recommendations for regulation in professional 
services, COM(2021)385. 9/7/2021, Eur-lex.europa.eu. 

procedures  for  setting  up  a  business (134). 
Slovenia’s newly adopted start-up strategy aims to 
create a supportive environment to make Slovenia 
more  attractive  for  start-ups,  with  the  aim  of 
doubling  the  number  of  start-ups  per  million  of 
inhabitants  and  increasing  investments per  capita 
tenfold  by  2030 (see  also  Annex  47).  In  terms  of 
overall  entrepreneurial  conditions,  Slovenia  has 
started several initiatives over the past few years 
to  develop  entrepreneurial  skills  among  young 
people (135). 
Business 
Development 
an 
entrepreneurship  programme  aimed  to  equip 
women  with  entrepreneurial  skills,  as  women  are 
still  considerably  less  likely  to  start  a  business 
than men (136). 

Slovenia’s 
also 

SPIRIT, 
Agency, 

operates 

Competition in public procurement remains a 
challenge.  In  2025,  44%  of  contracts  were 
awarded  to  single  bidders,  in  comparison  to  47% 
in  2024.  Following  a  progressive  decline  from  a 
high of 26% in 2020 to 9% in 2024, the share of 
direct awards once again increased slightly to 11% 
in  2025,  which  is  nevertheless  below  Slovenia’s 
RRP  target  of  14%.  A  low  share  of  contracts  also 
tends  to  be  awarded  to  bidders  from  other 
countries 
the  Single  Market  and 
beyond) (137),  resulting  in  a  business  environment 
with few new entrants. This further aggravates the 
lack  of  competition  in  what  is  a  very  small 
procurement  market,  featuring  only  a  limited 
number of economic operators.  

(part  of 

However,  Slovenia  continues  to  work  on 
addressing  the  challenges  with  its  public 
system  and  has  already 
procurement 
implemented  various 
including 
initiatives, 
through  its  RRP.  For  example,  in  2024,  two 
multi-year  action  plans  for  2025-2030 
(on 
digital 
increasing 
transformation  of  public  procurement)  were 
adopted. 
strengthen 
professionalisation  and  analytics,  enhance  market 
access  for  suppliers,  and  upgrade  e-procurement 
capabilities. 
improve 
Further  measures 
competition  in  procurement  procedures  include 

competition 

plans 

aim 

and 

The 

the 

to 

to 

(134) Part of the barriers highlighted in the Single market strategy 
(“Terrible 10”) and the 2026 Annual Single Market and 
Competitiveness Report. 

(135) EACEA, 2023, Youthwiki Slovenia, Eacea.ec.europa.eu. 

(136) OECD, 2023, The Missing Entrepreneurs 2023, Oecd.org. 

(137) Republic of Slovenia, 2025, Statistical report on public 

contracts awarded in 2024, Ejn.gov.si. 

57 

 
 
 
Slovenia’s 

enhanced training through the Public Procurement 
Academy,  established  through  the  RRP.  In  2025, 
the Academy introduced ‘train the trainer’ sessions 
for  consultants  at  local  Slovenian  Business  Points 
(SPOT),  which  provide  information  for  businesses, 
in  particular  SMEs,  searching  for  public  contracts. 
Furthermore, 
procurement 
system underwent an independent analysis by the 
OECD funded by the Technical Support Instrument 
of  the  European  Commission  in  2024,  which 
offered 
potential 
improvements  to  the  institutional  and  regulatory 
frameworks  that  would  foster  competition  and 
improve  the  public  procurement  capacity  of  both 
contracting authorities and bidders (138). 

recommendations 

public 

for 

Slovenia’s 

is  mandatory 

Slovenia  has  made  considerable  progress  on 
strategic  public  procurement,  in  particular 
Green  Public  Procurement 
(GPP),  which 
accounted  for  29.92%  of  contracts  awarded 
in  2024 (139).  Under 
national 
legislation, 
for  all  public 
it 
procurement  entities 
take  environmental 
to 
aspects  into  account  when  procuring  goods  or 
services from 22 product and service groups (from 
electricity,  building  and  road  construction  to 
electronic  office equipment)  (140).  The  government 
also established a single contact point on GPP and 
guidance to contracting authorities for each of the 
22  product  and  service  groups.  Slovenia’s  GPP 
Decree was further amended in 2025 with the aim 
of  reducing  environmental  impacts  across  the 
procurement  lifecycle, embedding  the  principle  of 
’energy  efficiency  first’  and  aligning  national 
practice  with  EU  energy  efficiency  and  clean 
transport objectives (see Annex 8) (141).  

Slovenia  has  also  progressed  in  socially 
responsible  public  procurement,  accounting 
for  12.61%  of  contracts  awarded (142),  while 
procurement  could  be  used  more 
to 
strategically  encourage  innovation.  By  2018, 

Slovenia  had  already  published  guidelines  to 
combat ‘social dumping’ within the procurement of 
security  and  cleaning  services (143).  To  enable  the 
development  and  use  of  innovative  solutions  by 
public  authorities, 
the  government  adopted 
guidelines  on  innovative  public  procurement  in 
2022.  However,  a 
lack  of  awareness  and 
reluctance  from  contracting  authorities  seems  to 
persist, with the uptake of innovation partnerships 
also  very  low.  Making  effective  use  of  Slovenia’s 
Public  Procurement  Academy  could  help  improve 
the situation. 

Businesses’  views  on  corruption  risks  in 
public  procurement  are  above  the  EU 
average.  In  Slovenia,  78%  of  companies  (EU 
average: 51%) consider collusive bidding in public 
procurement  procedures,  and  74%  (EU  average: 
51%)  involvement  of  bidders  in  the  design  of 
specifications, 'very' or 'fairly widespread' practice. 
Among  companies  that  have  experience  in  and 
participated  in  a  public  procurement  procedure, 
28%  think  that  corruption  has  prevented  them 
from  winning  a  public 
tender  or  a  public 
procurement  contract  in  practice  (EU  average: 
25%) (144). 53% of companies perceive the level of 
independence  of  the  public  procurement  review 
body  (National  Review  Commission)  as  ‘very’  or 
reviewing  public 
it 
‘fairly  good’  when 
procurement  cases (145).  As  part  of  continued 
efforts to improve transparency and competition in 
public  procurement,  the  Commission  for  the 
Prevention  of  Corruption  conducted  investigations 
of misconduct in several large investment projects 
and  issued  recommendations  to  the  government 
and  respective  ministries  on  handling  corruption 
risks. In addition, it continued to carefully monitor 
state-owned  enterprises,  which  are  considered 
especially  prone  to  undue  influence  and  conflicts 
interest  situations  because  of  the  close 
of 
interaction  between  the  public  and  the  private 
spheres (146).   

is 

(138) OECD, 2025, Maximising the Benefits of Effective 

Competition in Public Procurement in Slovenia, Oecd.org. 

(143) European Commission, 2024, Procurement Monitoring Report 

(139) Republic of Slovenia, 2025, Statistical report on public 

– Slovenia, Ec.europa.eu. 

contracts awarded in 2024, Ejn.gov.si. 

(144) European Commission, 2025, Flash Eurobarometer 557, 

(140) Official Gazette of the Republic of Slovenia, 2023, Green 

Data.europa.eu. 

Public Procurement Regulation, Pisrs.si. 

(141) Republic of Slovenia, 2025, Green Public Procurement 

Regulation, Ejn.gov.si. 

(145) European Commission, 2025, EU Justice Scoreboard, 
Ec.europa.eu and European Commission, 2025, Flash 
Eurobarometer 555, Ec.europa.eu. 

(142) Republic of Slovenia, 2025, Statistical report on public 

(146) European Commission, 2025, Rule of Law Report – Country 

contracts awarded in 2024, Ejn.gov.si. 

Chapter Slovenia, Ec.europa.eu. 

58 

 
 
 
the 

and 

stronger 

procurement 

fragmented 

fragmentation  underscores 

Slovenia’s 
eProcurement 
landscape  and  data  quality  issues  highlight 
the need for interoperable systems, common 
standards, 
data 
governance.   Given  Slovenia’s  decentralised 
eProcurement landscape, with two to five separate 
Procurement  services in  operation (147)  economic 
operators  must  use  several  systems  to  access  all 
procedures, 
public 
creating complexity  and barriers  to  participation. 
This 
need 
for introducing interoperability 
common 
standards. The once-only principle is only partially 
implemented  at  national  level  (see  Annex  7),  and 
buyers  across  the  EU  still  lack  digital  access  to 
relevant 
The  Slovenian  national 
authorities provide many public procurements data 
set publicly.  Additionally, 
the  authorities  are 
establishing a public procurement data strategy on 
the  objectives  and  management  of  public 
integrating 
procurement 
dedicated  public  procurement  data  collection  and 
analysis  service within  the  government to  support 
data-driven oversight of the procurement lifecycle 
would  benefit the  Slovenian public  procurement 
system (148).  

processes. 

evidence. 

Further 

and 

this 

capable 

frictions (149) 

long-standing 

infrastructures 

A  resilient  and  forward-looking  European 
Standardisation  System  relies  on  strong 
national 
of 
translating  market  needs  into  effective  and 
regard,  National 
In 
timely  standards. 
Standardisation  Bodies  play  a  pivotal  role  in 
addressing 
that 
continue  to  constrain  the  efficiency  of  the  Single 
Market  and  the  competitiveness  of  European 
industry.  Addressing  these  pressures  requires  a 
deliberate  effort  to  reinforce  the  institutional  and 
human  capacities  of  the  Slovenian  Institute  for 
Standardisation.  Strengthening  expertise,  ensuring 
stable  funding,  and  enabling  broader  stakeholder 
participation  will  be 
to  maintaining 
responsiveness  and  relevance  in  standard-setting 
activities.  Such  investment  would  also  enhance 

key 

(147) As reported in the eProcurement matrix. 

(148) European Court of Auditors, Special Report 28/2023: Public 
Procurement in the EU. Less competition for contracts 
awarded for works, goods and services in the 10 years up to 
2021, 2023, Special report 28/2023: Public procurement in 
the EU. 

Slovenia’s  ability  to  contribute  meaningfully  to 
international  standardisation,  thereby  supporting 
its industrial base and innovation ecosystem. 

Industry and economic security  

recovered 

levels (150).  Energy-intensive 

Energy-intensive industries have been facing 
particular challenges. Nevertheless, productivity 
in  manufacturing  overall 
recently, 
slightly exceeding its pre-energy crisis level by the 
end of 2024. While production in energy-intensive 
industries, which had decreased during the energy 
crisis,  increased  in  2024,  it  remained  below  the 
2021 
industries 
accounted  for  approximately  5.2  %  of  Slovenia’s 
total  manufacturing  gross  value  added  (GVA)  in 
2024 (151). The competitiveness of these industries 
is  impacted  by  high  energy  costs  and  insufficient 
investment in clean technologies. Despite a recent 
decline, the wholesale price of electricity continues 
to  be  higher  for  industry  than  before  the  energy 
crisis  (152),  an  issue  consistently  highlighted  by 
businesses as a concern (see also Annex 9). Recent 
years  also  saw  the  reduction  and  eventual 
shutdown  of  energy-intensive  primary  aluminium 
production, which – due to the energy crisis – was 
replaced  by  imports  of  primary  aluminium  and 
more  modern 
recycling-based  production  of 
secondary  aluminium (153).  The  decarbonisation  of 
industry  is  supported  through  several  measures, 
including  through  the  co-financing  of  at  least  27 
energy-efficiency  and  decarbonisation  projects  as 
part  of  the  REPowerEU  chapter  of  Slovenia’s  RRP 
(see also Annex 8).  

Similar  to  other  parts  of  Europe,  Slovenia’s 
automotive  industry  is  struggling  for  global 
competitiveness in the midst of the e-vehicle 
transformation. The launch of the production of 
a  new  electric  passenger car  model  in  Slovenia  is 
expected to have a positive yet limited impact, as 

(150) Institute of Macroeconomic Analysis and Development, 
2025, Quality of life in Slovenia – Development Report 
2025, Umar.gov.si. 

(151) Eurostat, 2026, Gross value added and income by detailed 
industry (NACE Rev.2 ) (nama_10_a64), Ec.europa.eu.  

(152) Statistical Office of the Republic of Slovenia, 2025, Prices of 

energy sources, 4th quarter 2025, Stat.si. 

(149) Part of the barriers highlighted in the Single market strategy 
(“Terrible 10”) and the 2026 Annual Single Market and 
Competitiveness Report. 

(153) Institute of Macroeconomic Analysis and Development, 
2025, Quality of life in Slovenia – Development Report 
2025, Umar.gov.si. 

59 

 
 
 
exports  in  this  sector  have  been  impacted  by 
difficulties  in  industrial  production  in  some  key 
Slovenian  trading  partners (154).  The  Slovenian 
automotive 
industry  comprised  around  300 
companies  in  2024  and  provided  around  17  600 
jobs, with Germany by far being the biggest export 
market  for  this  sector (155),  which  means  that 
difficulties  in  the  German  market  also  impact 
Slovenian  companies  in  the  value  chain.  Higher 
costs than those of Asian competitors and a weak 
demand  for  electric  cars  further 
impact  the 
sector’s competitiveness as well as the sustainable 
mobility  transition  in  a  country  which  has  a 
comparatively 
low  share  of  newly  registered 
electric cars (see also Annex 8). 

grid 

exporter 

level  of 

opportunities 

industrialisation 
Slovenia’s  high 
provides 
the 
regarding 
manufacturing  of  net  zero  technologies, 
although  its  production  capacity  is  currently 
modest.  For  solar  PV  modules,  it  amounts  to 
between  700  and  800  MW/y,  which  is  4%  of  the 
EU’s  capacity (156).  However,  the  country  is  a 
competitive 
technology 
of 
least  five  battery 
components  and  hosts  at 
production facilities that mainly produce lead-acid 
batteries, including one giga factory which opened 
in  2024,  and  at  least  six  facilities  producing  heat 
pumps (157).  Slovenia  also  participates  in  several 
Important  Projects  of  Common  European  Interest 
(IPCEI) related to strategic technologies for Europe. 
Notably,  is  part  of  the  EuBatIn  IPCEI,  approved  in 
2021,  and  the  IPCEI  on  microelectronics  (IPCEI 
and 
ME/CT) 
IPCEI 
communication/information 
(IPCEI 
CIS).  Projects  in  IPCEI  ME/CT  and  IPCEI  CIS  are 
supported  by  Slovenia’s  recovery  and  resilience 
plan. 

cloud 
technologies 

and 

the 

on 

Slovenia 

Furthermore, 

stakeholders. 
has 
established a national  contact  point to administer 
applications,  facilitating  the  advancement  of  Net-
Zero  Strategic  Projects.  However,  so  far,  Slovenia 
has not confirmed any Net-Zero Strategic Projects 
and has not designated any Net-Zero Acceleration 
Valleys.  

Manufacturing depends heavily on imports of 
critical  raw  materials.  While  Slovenia’s  overall 
raw  materials  import  concentration  was  lower 
than  the  EU  average  in  2025,  47.3%  of  material 
inputs  in  manufacturing  production  originated 
from  imports  in  2024,  the  fifth  highest  share  in 
(EU  average:  22.4%) (158),  showing 
the  EU 
Slovenia’s  particular  vulnerability  to  supply  chain 
disruptions. To mitigate such vulnerabilities and to 
help 
integrate  domestic  raw  material  supply 
chains  in  line  with  the  European  Union’s  strategic 
objectives,  Slovenia 
its  National 
Research  Programme.  It  will  identify  the  national 
potential  for  critical 
raw  materials,  support 
research and innovation in the field of sustainable 
extraction  and  processing. 
In  2018,  Slovenia 
already adopted a National Mining Strategy (159). In 
addition,  recycling  might  also  still  offer  some 
further potential to reduce the need for critical raw 
materials. While Slovenia’s overall circular material 
use  rate  is  below  the  EU  average,  the  recycling 
rate  for  e-waste,  a  key  source  of  critical  raw 
materials,  is  slightly  above  the  EU  average  in 
Slovenia (at 82.9% vs. 82.2% in 2023) (160) 

is  preparing 

in 
Slovenia  has  made  some  progress 
implementing  the  Net-Zero 
Industry  Act 
(NZIA).  It  has  successfully  designated  a  single 
point  of  contact,  which  is  crucial  for  streamlining 
among 
communication 

coordination 

and 

(154) Institute of Macroeconomic Analysis and Development, 
2026, Spring Forecast of Economic Trends, Umar.gov.si. 

(155) Slovenia Business, 2024, Automotive industry, 

Sloveniabusiness.eu. 

(156) European Commission, 2025, The net-zero manufacturing 

industry landscape across the Member States, Op.europa.eu. 

(157) European Commission, 2025, The net-zero manufacturing 

industry landscape across the Member States, Op.europa.eu. 

(158) Eurostat, 2025, Material import dependency, Ec.europa.eu. 
(159) Republic of Slovenia, 2018, National Mining Strategy, 

Energetica-portal.si. 

(160) Eurostat, 2025, Recycling rate of waste of electrical and 
electronic equipment (WEEE) separately collected,  
Ec.europa.eu. 

60 

 
 
 
Table A5.1:  Single Market and Industry 

Source: 1) Eurostat, (2) EIB Investment Survey, (3) EIF SME Access to Finance Index, (4) Intrum Payment Report, (5) SAFE survey, 
(6) OECD, (7) data up to 2024: Single Market and Competitiveness Scoreboard, 2025: Commission calculation based on TED data, 
accessible at the Public Procurement Data Space (PPDS) (*) the value represented here under EU average is the median, (8) Single 
Market and Competitiveness Scoreboard, (9) European Commission calculations. 

61 

POLICY AREA20212022202320242025EU-27 average83.583.786.584.286.0100.011.712.212.011.7-12.64.75.55.55.1-3.9Business environment and simplification16.413.117.016.016.034.00.620.690.640.79-0.430.100.050.110.14-0.1911.712.311.810.318.117.411.112.99.312.012.413.6from private entities in the previous or current quarter---47.456.747.1from public entities in the previous or current quarter---12.712.115.961.970.461.159.057.840.70.0640.0640.0640.0640.0640.0504451454744271912109161.210.80.70.811.31.30.80.50.71.190805092.310084.62423231814250.10060.18970.23210.1782-0.146240.340.137.7--32.725.025.025.125.0-25.245.646.945.847.3-22.48.98.29.910.1-12.2SloveniaINDICATOR NAMEBusiness environment and investmentProductivity and investmentLabour productivity (GDP per hour worked in PPP terms), % of EU271Business investment (share of GDP)1Public investment (share of GDP)1Impact of regulation on long-term investment, % of firms reporting business regulation as a major obstacle2SME liquidityEIF Access to Finance for SMEs index - loans3EIF Access to Finance for SMEs index - equity3Late paymentsPayment gap - corporates B2B, difference in days between offered and actual payment4Payment gap - public sector, difference in days between offered and actual payment4Share of SMEs experiencing late payments, %5Industry and economic securitySingle Market IntegrationEU trade integration, average(intra-EU imports + intra EU exports)/GDP, %1EEA Services Trade Restrictiveness index6Public procurementSingle bids, % of total contractors7*Direct awards, % of negotiated procedures7*ComplianceTransposition deficit, % of all directives not transposed8Conformity deficit, % of all directives transposed incorrectly8SOLVIT, resolution rate per country, %8Number of pending infringement proceedings8Energy-intensive industriesElectricity prices for non-household consumers1Electrification (electricity as a share of total energy consumption in industry)1Share of energy from renewable sources (renewable energy generation as a share of overall energy consumption)1Critical raw materialsMaterial import dependency, %1Circular material use rate1Operational cleantech manufacturing capacity in 20259 - Solar PV (c: cell, w: wafer, M:module), GW0.75 (m) - Electrolyzer, GW- - Heat pump assembly 0.0013 - Battery, GW- 
 
 
 
 
 
     
 
ANNEX 6: SAVINGS, INVESTMENT AND ACCESS TO FINANCE 

Table A6.1:  Savings and Investments Union summary diagnostic 

Source: OECD (pensions), Eurostat (households' financial wealth), FISMA CMU dashboard (VC and PE), national sources (capital 
taxation). End-2024. 

Slovenia  lags  behind  most  Member  States  on  the 
key  progress 
indicators  for  the  Savings  and 
Investment  Union  (see  Table  A6.1).  The  financial 
sector  in  Slovenia  continues  to  be  dominated  by 
banks,  and  the  country’s  capital  markets  are 
comparatively  small.  Firms  in  Slovenia  rely  on 
funding  from  banks  rather  than  from  capital 
markets.  Slovenian  households  do  not 
invest 
enough in financial assets and equity. Slovenia has 
recently  introduced  a  new  individual  investment 
account,  but  it  seems  to  discriminate  against 
foreign  financial  instruments.  Slovenia’s  banking 
sector  has  performed  well  and  is  therefore  not 
constrained  in  its  role  of  financing  the  economy. 
Insurance  premiums dropped and  profitability and 
solvency  have  improved  due  to  the  abolition  of 
complementary  health  insurance.  The  protection 
gap for earthquake and flood is significant. Asset-
backed  funded  pensions  remain  very  small  and 
generate  only  modest  real  returns.  Encouraging 
the  development  of  universal  funded  pension 
schemes  alongside  the  prevailing  pay-as-you-go 
system  would  help  channel 
into 
equities  and, 
turn,  support  growth  and 
innovation. 

investment 

in 

Business landscape and company 
funding 

In terms of structure and size, the Slovenian 
economy  is  more  reliant  on  micro-sized 
companies  than  the  EU  average.  In  Slovenia 
the  relative  importance  of  medium  and  large 
businesses is  about the  same  as  the  EU  average, 

62 

but the micro-sized companies ply a stronger role 
in the structure of the economy, at the expense of 
small  companies  (see  Annex  5  for  more  details). 
This  has  implications  for  the  corporate  sector’s 
demand for funding. 

Graph A6.1: Composition of NFCs’ funding 

Source: Eurostat. End-2024. 

Firms  in  Slovenia  rely  more  on  internal 
funding  and  funding from  banks  and  less  on 
funding  from  capital  markets  than  the  EU 
average.  Slovenian  businesses  depend  more  on 
internal  financing  than  their  European  peers. 
According  to  the  2025  EIB  Investment  Survey, 
69%  of  the  investment  needs  of  Slovenian  firms 
are covered by internal funding, compared with an 
EU  average  of  66%.  At  the  end  of  2024,  bank 
finance through loans constituted 26% (vs 27% in 
the  EU)  of  all  external  funding  sources  for 
Slovenian  non-financial  corporations  (NFCs),  while 
listed  shares  and  bonds  represented  only  9%  (vs 
24%  in  the  EU)  of  external  funding  sources. 
Expressed in terms of GDP, the overall level of NFC 

050100150200250SIEU% of GDPLoansTrade credit and advancesBondsListed sharesUnlisted sharesOther equityMain featuresRelative EU positioningAssets at 6.7% of GDP (32.4% in the EU)10-year real return of 1.5% (1.4% in the EU)Slovenia has very low pension fund assets that yield a modest return. Equity exposure is low. Slovenia has no mandatory or auto-enrolment pension schemes. Slovenia has a low gross replacement rate and will face a strong increase in pension expenditures.EUR 37 800 per capita (EUR 85 100 in the EU)o/w 3.3% in listed shares and bonds (7.6% in the EU)o/w 6.7% in investment funds (11.1% in the EU)o/w 4.5%  in life insurance (13.4% in the EU)o/w 6.9% in pension claims (13.6% in the EU)A very small share of households' low financial assets is invested in equity, investment funds and pension funds.VC at 0.007% of GDP (0.064% in the EU)PE at 0.059% of GDP (0.487% in the EU)Very low capital and low private equity investments.Corporate income tax of 19% (temporarily 22% in 2024-2028) with interest deductibility, withholding tax of 25% but lower if SIAEquity is taxed slightly more than other financial assets, but the SIA partly corrects it.1-34-1011-1718-2425-27Colours indicate the country's relative ranking based on five groups, ranging from the three best to the three worst performers. The relative ranking as regards an SIU diagnostic topic derives from a consistent cross-country comparison, the starting point of which is the average of the underlying main features.TopicAsset-backed pension schemesHouseholds' financial assetsVenture capital (VC)Private equity (PE)Capital taxation 
 
 
     
 
 
 
  
 
funding  was  much  lower  in  Slovenia  (124%  of 
GDP) than in the EU (226%) (see Graph A6.1). 

Size and structure of the financial 
sector 

All Slovenian financial intermediaries, and in 
particular  banks,  are  small  in  terms  of  GDP. 
Banks’  assets  were  equivalent  to  83%  of  GDP  in 
September 2025 (vs 246% in the EU), one of the 
lowest  in  the  EU,  sharply  down  from  150%  in 
2012.  The  banking  sector  is  quite  concentrated, 
since  the  top  five  banks  accounted  for  74%  of 
total  assets  (vs  51%  in  the  EU)  at  the  end  of 
2024.  The  banking  sector  is  dominated  by  the 
state-controlled  NLB,  followed  by  the  Hungarian 
OTP  bank  and  the  two  Italian  subsidiaries,  Intesa 
Sanpaolo  and  Unicredit.  Foreign-owned  banks 
accounted  for  about  46%  of  the  banking  sector’s 
assets in 2024 compared with the 30% figure that 
prevailed before the sovereign crisis of 2013. Most 
banks  are  privately  owned,  with  the  notable 
exception  of  the  largest  bank,  NLB,  which  is  still 
25% 
(+1  share)  state-owned,  effectively  a 
controlling  stake.  The  insurance  sector,  with  total 
assets  equivalent  to  15%  of  GDP  at  Q3-2025, 
dominates  non-bank  intermediation,  though  well 
below the EU average (54% of GDP). The pension 
funds’  assets  are  much  smaller:  they  were  only 
equivalent  to  7%  of GDP in  2024  (vs  23%  in  the 
EU). 
Investment  funds  are  equivalent  to  a 
relatively small level of 10% of GDP. 

Graph A6.2: Capital markets and financial 
intermediaries 

Slovenia’s  capital  markets  are  under-
developed.  The  main  stock  exchange  in  Slovenia 
is the Ljubljana Stock Exchange. The equity market 
is  very  small  in  terms  of  capitalisation  (17.9%  of 
GDP  vs  an  EU  average  of  67%  as  of  end-2024) 
and  volumes  traded,  and  even  more  so  when 
compared  with  the  US  (213%).    The  breadth (161) 
of  bond  markets  has  steadily  decreased  since 
2018 and is largely below the EU average (0.6 vs 
1.5).  The bid-ask  spread (162)  on  equity  markets is 
much higher than the EU average (12.6 vs 1.6). In 
late  2024,  eight  CEE  stock  exchanges  (Bratislava, 
Bucharest,  Budapest,  Ljubljana,  Skopje,  Sofia, 
Warsaw,  and  Zagreb),  together  with  the  EBRD, 
signed a memorandum of understanding (MoU) to 
foster  the  joint  development  of  national  capital 
markets  through  closer  cooperation,  regulatory 
alignment,  and  increased  market  integration.  This 
initiative  was  endorsed  by  the  respective  finance 
ministers in August 2025. 

Most bonds are issued by the government. At 
end-2024,  financial  corporations  accounted  for 
37%  of  the  market  capitalisation  of  listed  equity, 
which  reflects  the  extent  to  which  the  stock 
market  in  Slovenia  is  geared  towards  funding  the 
financial  segment  of  the  real  economy.  The 
outstanding  volume  of  debt  securities  is  very  low 
and  reached  61%  of  GDP  at  end-2024.  Bonds 
issued  by  the  government  accounted  for  89%  of 
the  total.  This  reflects  the  very  high  weight  of 
gross public debt in the Slovenian bond market. 

Households’ participation in capital 
markets 

Slovenian households do not invest enough in 
financial  assets  and,  more 
importantly, 
equity.  Slovenian  households’  financial  assets 
equated to 119% of GDP in 2024, less than the EU 
average (212%) and far less than the US (446%). 
Worse,  assets  invested  in  equity  equated  to  only 
52%  of  GDP,  below  the  EU  average  (91%)  and 
almost  six  times  below  the  US  (291%).  Slovenian 
households  invest  relatively  little  in  investment 
funds,  bonds,  shares  and  insurance  and  pension 
funds,  while  allocating  a  significant  portion  to 

Source: ECB, EIOPA, AMECO. End-2024. 

(161) The ratio of bonds outstanding to GDP. 

(162) Median of bid-ask spread as a % of the mid-price. 

63 

Non-financial corporationsFinancial corporationsNon-financial corporationsMFIsInsurance  and pension fundsOther financialsGovernmentMFIsPension fundsInsurance corporationsInvestment funds0102030405060708090   Listed equity               Bonds                        Assets by sector% of GDP 
   
 
deposits  and  cash,  which  generate  much  lower 
returns than equity. 

Graph A6.3: Composition of HHs’ financial assets 

Source: Eurostat. End-2024. 

(shares,  bonds, 

Slovenia’s new individual investment account 
may  discriminate  against  foreign  financial 
instruments. On 27 May 2025, Slovenia adopted 
a  law  introducing  individual  investment  accounts 
aimed  at  promoting  retail  investment  in  financial 
instruments 
treasury  bills, 
exchange 
trade  funds  and  undertakings  for 
collective investment in transferable securities. To 
benefit  from  the  preferential  scheme,  investors 
may  invest  up  to  EUR 5 000  per  year,  with  an 
if 
additional  EUR 5 000  permitted,  but  only 
invested 
total 
outstanding  amount  on  the  account  is  capped  at 
EUR 150 000.  This  distinction  between  domestic 
and foreign financial products, if confirmed, would 
Slovenian-issued 
incentivise 
instruments  and  put  foreign  companies  at  a 
disadvantage.  Since  it  raises  concerns  about  the 
measure’s  compatibility  with 
the  EU  single 
market’s  fundamental  freedoms  (particularly  the 
free  movement  of  capital),  the  Commission  is 
currently 
the  Slovenian 
authorities. 

in  Slovenian  securities.  The 

in  a  dialogue  with 

investment 

in 

The banking sector: resilience and 
financing of the economy 

Slovenia’s banking sector has performed well 
and is therefore not constrained in its role of 
funding  the  economy.  Return  on  equity  has 
constantly  exceeded  9%  since  2017,  and  reached 
13.8% in the first three quarters of 2025 (vs 9.6% 

64 

information  on 

in  December  2024  to  1.9% 

in the EU).  The capital adequacy ratio has slightly 
decreased  from  19.8%  in  December  2024  to 
19.5%  in  Q3-2025  (vs  20.2%  in  the  EU).  The 
average  MREL  (Minimum  Requirement  for  own 
funds  and  Eligible  Liabilities)  level  of  Slovenian 
banks stood at 35.7% of TREA (Total Risk Exposure 
Amount)  in  Q2-2025,  up  from  33.7%  of  TREA  in 
December 2024. Against an average MREL binding 
target  (including  combined  buffer  requirements, 
CBR) in Q2-2025 of 29.7% TREA, no bank reported 
a MREL shortfall (163). In December 2024 Slovenia 
published 
its  national  bail-in 
mechanic, in line with the EBA guidelines (164). The 
non-performing-loan  ratio  has  slightly  increased 
from  1.6% 
in 
September 2025 (vs 1.9% in the EU) driven solely 
by  a  few  manufacturing  firms.  The  banks’  asset 
quality outlook is increasingly uncertain due to the 
current  conflict  in  the  Middle  East  and  its  impact 
on  energy  prices  and  economic  growth.  With  a 
loan-to-deposit ratio of 74.3% in September 2025 
(vs  93.2%  in  the  EU),  banks  benefit  from  a 
substantial  excess  of  deposits  over  loans,  which 
ensures  a  relatively  stable  funding  base.  The 
in 
liquidity  coverage 
December 2024 to 263% in Q3-2025 but remains 
one  of  the  highest  in  the  EU.  However,  this 
generally  positive  outlook  could  be  threatened  in 
the future by political or legal developments. There 
is still no lasting solution to the legacy portfolio of 
loans  issued  by  Slovenian  banks  in  Swiss  francs, 
and  adverse  court  rulings  on  this  issue  remain  a 
real  possibility,  even  if  the  issue  only  concerns  a 
few banks. 

ratio  fell  from  287% 

Household  credit  growth  is  strong,  but  NFC 
credit  growth  remains  modest.  Due  to  the 
recent  moderate  decline  in  interest  rates  and  a 
relatively  favourable  economic  situation  featuring 
high employment and real wage growth, year-on-
year  household  credit  growth  in  Slovenia  has 
increased from a low of 3.4% in September 2023 
(vs  0.8%  in  the  euro  area)  to  7.5%  in  September 
2025  (vs  1.8%  in  the  euro  area).  This  very 
dynamic  growth  was  partly  driven  by 
the 
substantial growth of 12.6% in the consumer loan 
segment (vs 7.4% in the housing loan segment). In 
contrast,  lending  to  NFCs  was  more  moderate, 
even  if  its  rebound  was  substantial:  its  year-on-
year growth reached 2.2% in September 2025 (vs 

(163) See the MREL Dashboard published by the SRB. 

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

their approach to implementing the bail-in tool. 

050100150200250020406080100SIEUSIEUper capita (000 EUR) (lhs)% of GDP (rhs)Currency and depositsInsurance and pension fundsInvestment fundsBondsListed sharesUnlisted sharesOther equityHH Debt (liability) 
     
 
1.8%  in  the  euro  area),  steeply  up  from  a  low  of 
minus 6.9% in November 2024. 

Interest  rates  on  new  loans  to  the  private 
sector  have  receded  from  the  peak  reached 
end-2023.  In  September  2025,  interest  rates  on 
new  loans  to  Slovenian  households  for  house 
purchases  reached  2.83%  (vs  3.3%  in  the  euro 
area), down from a high of 4.07% in July. Interest 
rates on new loans to NFCs followed a similar but 
even  steeper  pattern.  They  reached  3.97%  (vs 
3.52%  in  the  euro  area)  in  September  2025, 
steeply down from the peak of 5.69% observed in 
October  2023.  Overall,  even 
they  have 
somewhat declined from their peak, interest rates 
remain  quite  high  compared  with  those  observed 
over  the  last  decade.  But  the  spread  between 
Slovenian  and  euro  area  interest  rates  has  been 
much  smaller  (and  even  sometimes  negative) 
since  2022,  while  historically 
it  was  quite 
substantial.  This  lower  spread  is  probably  due  to 
the  lower  NPL  ratio  and  the  better  quality  of  the 
credit portfolio of Slovenian banks. 

if 

In  Q4-2025  Banks  reported  no  change  in 
their  credit  standards  for  NFC  loans  and  a 
slight  tightening  in  credit  standards  for 
housing loans. In the January 2026 Bank Lending 
Survey,  Slovenian  banks  indicated  no  change  in 
their  credit  standards  for  NFC  loans  in  Q4-2025, 
while  the  euro  area  reported  a  tightening  on 
reported  a  slight 
average.  Slovenian  banks 
tightening 
to 
in  credit  standards  for 
households for house purchases in Q4-2025 (vs a 
small  easing  in  the  euro  area).  Because  of  lower 
fixed investment, firms’ net demand for corporate 
loans  slightly  decreased  in  Q4-2025  (vs  a  slight 
increase  in  the  euro  area).  Housing  loan  demand 
remained  stable  in  Q4-2025  (vs  a  moderate 
increase in the euro area). 

loans 

Role of non-bank financial 
intermediaries 

Insurance premiums dropped but profitability 
and  solvency  improved  due  to  the  abolition 
of complementary health insurance. The gross 
written premium of Slovenian insurers dropped by 
12.8%  between  2023  and  2024  due  to  the 
abolition  of  complementary  health 
insurance. 
Excluding health insurance, gross written premium 
would have risen by 10.8% in year-on-year terms. 

In  2025,  the  sector’s  performance  continued  to 
strengthen: in the first half of the year, insurance 
companies  collected  EUR  1.4  billion  in  gross 
premiums, 10.8% more than in the same period of 
the previous year. The non-life combined ratio (165) 
improved from 96% in December 2023 to 90% in 
December  2024.  Part  of  the  improvement  is  due 
to 
the  abolition  of  complementary  health 
insurance,  which  tended  to  exhibit  a  higher 
combined  ratio  than  other  non-life  insurance 
segments due to the regulatory cap imposed on its 
low  of 
premiums.  Profit  grew 
record  high 
in  2023 
EUR 49 million 
EUR 228.6 million in 2024. This exceptional growth 
in  profit  was  attributable  in  particular  to  the 
increase  in  insurance  premiums,  the  large  decline 
in  claims,  and  buoyant  financial  markets,  while 
provided 
insurers 
supplemental 
received 
compensation for loss of earnings in 2023, which 
were  paid  in  2024.  Overall  capital  adequacy 
improved  from  247%  in  2023  to  267%  in  2024 
(vs 243% in the EEA) and hovered around 258% in 
Q3-2025  (vs  249%  in  the  EEA),  confirming  the 
sector’s strong resilience to potential shocks. 

previously 
insurance 

from  a 
to  a 

had 
health 

that 

The 
investment  portfolio  of  Slovenian 
insurers mostly comprises bond holdings. The 
Slovenian  insurance  sector,  which  is  small  by  EU 
standards (with an assets-to-GDP ratio of 15% vs 
an EU average of 53% in Q2-2025), invested 52% 
of its assets in bonds in Q4-2024 (compared with 
37%  for  the  EEA  as  a  whole) (166).  Government 
bonds (domestic at 20%) represented 34% of the 
portfolio  (vs  19%  in  the  EEA),  investment  funds 
26%  (vs  36%  in  the  EEA),  corporate  bonds  17% 
(vs 18% in the EEA), equity 16.0% (vs 16% in the 
EEA),  cash  and  deposits  2%  (vs  4%  in  the  EEA), 
and mortgage and loans 1% (vs 4% in the EEA). 

is 
The  protection  gap  for  earthquake 
significant. 
on 
dashboard 
EIOPA’s  2025 
insurance  protection  gap  for  natural  catastrophes 
for 
gives  scores  3.5  and  2.5 
earthquake  and  for  flood  protection  gaps  on  a 
scale from 0 (lowest gap) to 4 (highest gap). On 4-
5 August 2023,  Slovenia  experienced 
its  most 
catastrophic  natural  disaster  (flash  floods)  since 
indirect 
independence,  with 

total  direct  and 

respectively 

(165) The combined ratio is equal to the sum of the incurred losses 
and expenses divided by the earned premiums. It is inversely 
related to profitability. 

(166) Source: EIOPA Insurance Statistics. 

65 

 
 
damage estimated at EUR 10 billion (16% of GDP). 
Although the insurance penetration for floods has 
increased  from  0-25%  in  2024  to  25%-50%  in 
2025,  the  insurance  penetration  for  earthquake 
remains particularly low, between 0% and 25%. 

The  domestic  pension  fund  industry  has  an 
even  more  conservative  investment  profile 
than insurers, with a greater focus on bonds, 
and  in  particular  corporate  bonds.  The  assets 
of Slovenian pension funds were equivalent to 7% 
of GDP in Q2-2025 (vs 23% in the euro area) and 
bonds accounted for 64% of assets held by IORPs 
(institutions  for  occupational  retirement  provision) 
as  of  end-2024  (vs  35%  in  the  EEA).  Corporate 
bonds  represented  39%  of  the  assets  (vs  12%  in 
the  EEA),  government  bonds  25%  (vs  23%  in  the 
EEA),  investment  funds  represented  17%  of  the 
assets (vs 38% in the EEA), equity 13% (vs 20% in 
the EEA) and cash and deposits 3% (vs 3% in the 
EEA). 

on 

investment 

the  Ordinance 

Asset-backed  (funded)  pensions  remain  very 
small  and  fail  to  deliver  a  significant  real 
return.  Well-developed  asset-backed  pension 
systems  are  critical  in  providing  financial  security 
to  the  public,  particularly  in  light  of  demographic 
trends; they also help develop capital markets and 
mobilise 
to  finance  growth  and 
innovation.  Pension  assets (167)  amounted  to  only 
7.1%  of  GDP  in  2024  (vs  32.3%  in  the  EU  and 
162.0% in the US), the third lowest level in the EU. 
Slovenia has no public pension reserve fund, even 
though 
State  Assets 
Management Strategy adopted in 2025 envisaged 
the  creation  of  a  demographic  reserve  fund. 
Contributions to occupational pension schemes are 
not  mandatory,  and  there  is  no  auto-enrolment, 
even  though  the  Pension  Reform  Act  requires 
employers  with  more  than  ten  employees  to 
conduct  collective  bargaining  to  set  up  collective 
supplementary 
than 
1 January 2028. Slovenia has not yet developed a 
single,  nationwide  pension  tracking  system  and 
pension  dashboard  that  aggregates  all  pension 
entitlements. Over the past ten years the average 
real return generated by Slovenian pension assets 
has  been  mediocre  (1.0%  vs  1.4%  in  the  EU), 
largely  because  of  low  equity  exposure  and  high 
bond  holdings.  In  general,  encouraging  the  build-

insurance  by  no 

later 

up of universal, funded pension schemes alongside 
the  prevailing  pay-as-you-go  system  would  help 
channel  investment  into  equities,  support  growth 
and innovation and diversify retirement income.  

Venture capital ecosystem 

The  domestic  venture  and  growth  capital 
market  is  significantly  under-developed.  The 
value  of private equity  relative to nominal GDP  is 
extremely low. It has hovered around 0.04% since 
2017  with  an  exceptional  high  of  0.82%  in  2021 
and a low of 0.01% in 2024 (vs 0.46% in the EU). 
Worse,  the value  of venture  capital  has  remained 
negligible,  never  exceeding  0.01%  of  GDP  (vs 
0.06% in the EU in 2024). 

The  participation  of  domestic  institutional 
investors  in  providing  funding  for  start-ups 
and  venture  capital  investors  is  low.  A  2024 
paper by the think tank Centre for European Policy 
Studies showed that, on average, pension funds in 
Croatia,  Slovenia  and  Slovakia  accounted  for  only 
6%  of  private  equity  and  venture  capital  funds 
raised annually between 2007-2023, a figure that 
falls far short of the 19% for the Baltic states or 
20% for the Nordic Member States (168). 

There  are  some  policies  in  place  to  promote 
start-up funding. To address the low volumes of 
PE  and  VC,  on  23 March  2022,  Slovenia  adopted 
the Resolution on the Slovenian scientific research 
and  innovation  strategy  2030.  The  Slovenian 
recovery  and  resilience  plan  (RRP)  also  allocates 
EUR 143 million  to  supporting  productivity  and 
innovation,  creating  a  more  business-friendly 
environment for investors. This includes reforms to 
improve 
the  business  environment,  facilitate 
access to finance and foster cooperation between 
public and private research sectors. The Slovenian 
support 
offers 
government 
mechanisms  for  start-ups  and  SMEs  via  the 
Slovene  Enterprise  Fund  (SEF),  which  proposes 
grants,  loans  and  co-investment  opportunities,  or 
via  EU  funding,  which  is  used  for  small  scale 
incentives,  with  vouchers,  or  for  a  start-up 
consortium  to  improve  the  support  environment 
for  innovative  start-ups  through  services  like 

various 

also 

(167) Pension assets consist of pension providers’ assets and 
public pension fund reserve assets. See OECD, Pension 
Markets in Focus 2025 for details. 

(168) Source: Closing the gaping hole in the capital market for EU 

start-ups – the role of pension funds – CEPS. 

66 

 
 
 
Table A6.2:  Statistical Annex 

(1) Annualised data. 
For ECB data on credit growth and pension fund assets, EU data refer to the EA average. 
Private equity and venture capital, % of GDP is calculated as a three-year moving average. 
Source: ECB, ESTAT, OECD, CMU Dashboard, AMECO. 

advisory  support  and mentoring. (see  Annex  4  for 
more details). 

67 

20182019202020212022202320242025-Q3EUTotal assets of MFIs, % of GDP89.488.698.895.091.185.183.182.5246.1Common equity Tier 1 ratio17.617.816.716.915.917.717.617.416.8Total capital adequacy ratio17.918.518.318.418.520.419.819.520.2Overall NPL ratio, % of all loans6.03.43.02.11.81.51.61.91.9NPL ratio, loans to NFCs13.36.96.53.92.92.82.93.53.5NPL ratio, loans to HHs3.02.42.52.52.11.81.81.72.1Return on equity ratio110.710.311.39.513.316.814.913.89.6Loans to NFCs, % of GDP20.219.319.518.418.915.914.914.829.3Loans to HHs, % of GDP22.822.823.522.221.920.120.320.543.6NFC credit growth rate, %0.22.8-1.15.712.7-5.0-1.62.22.5HH credit growth rate, %6.86.10.75.27.73.76.47.52.6Stock market capitalisation, % of GDP14.014.714.917.713.414.417.825.269.9Initial public offerings, % of GDP--------0.06Market funding ratio34.032.232.030.327.728.628.5-49.7Private equity, % of GDP0.0820.0450.0420.3000.3290.3310.059-0.487Venture capital, % of GDP0.0050.0030.0030.0040.0070.0050.007-0.064Financial literacy, composite index-----54.5--45.5Bonds, % of HHs' financial assets0.50.40.30.20.20.50.9-2.8Listed shares, % of HHs' financial assets3.03.23.44.13.33.74.4-4.8Investment funds, % of HHs' financial assets3.94.54.55.54.85.56.7-11.0Insurance/pension funds, % of HHs' financial assets15.014.914.113.412.512.212.2-27.8Total assets of insurers, % of GDP17.518.019.617.814.814.214.815.453.9Pension assets, bn EUR---4.14.04.34.8-5813.8Pension assets, % of GDP---7.87.06.77.1-32.310y real return average of pension assets, %-----1.51.0-1.4Pension funds assets, ECB (% of GDP)----7.06.97.27.323.01-34-1011-1718-2425-27Colours indicate performance ranking among the 27 EU Member States.Banking sectorNon-banking sector 
 
   
 
ANNEX 7: EFFECTIVE INSTITUTIONAL FRAMEWORK 

institutional  framework 

An  effective 
is 
essential  for  competitiveness.  This  requires 
public  trust  built  on  integrity,  high-quality 
legislation,  regulatory  simplification  and 
efficient  services  for  people  and  businesses. 
The  2025  country  specific 
recommendations 
(CSRs) highlighted challenges for Slovenia in terms 
of i) simplifying regulation, ii) improving regulatory 
tools,  iii)  identifying  administrative  burdens  (see 
Annex  5)  and 
improving  working  conditions, 
particularly  in  the  care  and  teaching  sectors  (see 
Annex 11).  

Public trust 

Graph A7.1: Trust in the justice system, regional / 
local authorities and in government 

(1) EU-27 since 2019; EU-28 before 
Source: European Commission, Standard Eurobarometer 
surveys. 

Public trust in Slovenia remains below the EU 
average.  In  Slovenia  27%  of  people  trust  the 
government,  which  is  below  the  EU  average  of 
33%.  (Graph  A7.1)  Trust  in  regional  and  local 
authorities  continues  to  be  higher  than  trust  in 
central  government.  Both  people  and  businesses 
the  ability  of  public 
retain  confidence 
administration  to  protect  their  personal  data  and 
to handle their data securely and responsibly (169). 

in 

Quality of lawmaking 

a 

good 

Slovenia's  rules  for  lawmaking  demonstrate 
in 
partial  alignment  with  best  practice 
reducing the regulatory  burden and  ensuring 
effective implementation (Table A7.1). Slovenia 
has 
stakeholder 
framework 
engagement  and  providing  information  about  the 
development  of  all  primary  laws  and  secondary 
regulations.  When  assessing  the  impact  of  new 
is  placed  on 
primary 
competitiveness  and  compliance  costs  for  small 
and medium-sized businesses.  

legislation  emphasis 

for 

Administrations  are  not  required  to  consider 
non-legislative options when developing new 
primary  legislation.  Accordingly,  an  opportunity 
is  missed  simplify  and 
reduce  unnecessary 
legislation  without  losing  sight  of  the  policy 
objectives.  Moreover,  the  absence  of  a  formal 
requirement  for  the  government  to  assess  the 
level of compliance when developing new primary 
its  ability  to  monitor 
legislation  undermines 
implementation. The mechanisms and scope of ex 
post  evaluations 
remain  discretionary,  and 
Slovenia  continues  to  perform  below  the  EU 
average. The oversight of better regulation tools is 
hindered  by  the  absence  of  i)  an  external  body 
responsible for reviewing the quality of regulatory 
impact  assessments  and  ex  post  evaluations,  ii)  
assessments  of  the  effectiveness  of  ex  post 
evaluations in enhancing the regulatory stock (170).  

Public service delivery and 
digitalisation 

there 

friendliness 

Slovenia  has  made  good  progress 
in 
digitalising its public services but in terms of 
for 
user 
improvement.  Overall,  52%  of  people  and  37% 
of  companies  are  satisfied  with  administrative 
services,  compared  with  an  EU  average  of  45% 
and  42%,  respectively (171).  Moreover,  the  number 
of people in Slovenia finding public administration 

room 

is 

(169) European Commission, 2026, Flash Eurobarometer surveys 
567 and 568 on satisfaction with administrative services. 

(171) European Commission, 2026, Flash Eurobarometer surveys 
567 and 568 on satisfaction with administrative services. 

(170) OECD, 2025, Better Regulation Practices across the European 

Union 2025, https://doi.org/10.1787/6f007516-en. 

68 

00.10.20.30.40.50.60.70.80.9AutumnSpringAutumnSpringSpringAutumnWinterSummerWinterSpringWinterSummerAutumnSpringAutumnSpringAutumnSpring202520242023202220212020201920182017Justice,  legal system EU-27Justice,  legal system SIRegional or local public authorities EU-27Regional or local public authorities SIGovernment  EU-27Government  SI 
 
     
 
 
  
Table A7.1:  Slovenia. Selected indicators on better regulation practices for primary legislation 

Source: OECD, 2025, Regulatory Policy Outlook 2025 [https://doi.org/10.1787/56b60e39-en] and Better Regulation across the 
European Union 2025   

complex and burdensome has fallen from 38% in 
2023  down  to  26%  in  2025 (172).  For  businesses, 
the  most  time-consuming  aspects  when  dealing 
with  public  administration  are 
i)  preparing 
documents,  ii)  submitting  application  forms  iii) 
processing  and  iv)  waiting  for  responses,  which 
affects  almost  a  third  of  companies  (slightly 
above  the  EU  average,  see  Graph  A7.2).  While 
businesses report no negative operational impacts 
from administrative delays, there is clear demand 
for improvement and call for transparent and clear 
information  together  with  step-by-step  guidance 
or tutorials to further improve usability. 

Graph A7.2: Most time-consuming aspects of 
service delivery 

Source: European Commission, 2026, Flash Eurobarometer 
surveys 567 and 568 on satisfaction with administrative 
services. 

(172) European Commission, 2026, Flash Eurobarometer surveys 
567 and 568 on satisfaction with administrative services. 

69 

Slovenia  is  gradually  making  more  public 
services  available  online  for  people  and 
businesses,  but  the  country  remains  below 
the EU average (Table A7.2). Slovenia had made 
mixed  progress  in  offering  cross-border  access  to 
its  services (173).  Access 
to  electronic  health 
records is above the EU  average (Slovenia 87; EU 
83).  Businesses  are  making  extensive  use  of  e-
government platforms and 85% of companies find 
that  digital  public-administration  services  save 
time  and  effort (174).  The  business  registration 
in 
process 
Europe (175).  Slovenia  is  revising  the  Business 
Register  of  Slovenia  Act  (ZPRS-2)  to  further 
simplify  the  process  and 
introduce  a  digital 
corporate identity (176).  

is  one  of  the  most  streamlined 

In  early  2026,  Slovenia  launched  a  new 
digital  construction-permit  platform (177).  The 
platform  is  linked  to  the  spatial  information 
system  (PIS)  and  the  land  registry,  and  offers  a 
comprehensive  range  of  online  services.  It  marks 

(173) European Commission, 2025, Digital Decade 2025: Country 

reports. 

(174) European Commission, 2026, Flash Eurobarometer surveys 
567 and 568 on satisfaction with administrative services.  

(175) European Commission, forthcoming, Simplification of key life 

events. 

(176) Government of the Republic of Slovenia, Draft budgetary 

plan of the General Government 2026. 

(177) Ministrstvo za naravne vire in prostor, 2026, Pridobitev 

gradbenega dovoljenja po elektronski poti je odslej možna 
po celotni Sloveniji | GOV.SI. 

0%10%20%30%40%50%Time forresponsesDocumentspreparationApplicationformsDocumentspreparationApplicationformsTime forresponsesPeopleBusinessesEUTools for smart legislation: Share of possible impacts assessed for all primary laws when developing legislation 1Regulators are required to identify and quantify the benefits of a new primary law1Regulators are required to identify and assess the impacts of alternative non-regulatory options0Tools for effective implementation: when developing laws, regulators are required to:Assess the level of compliance0Identify and assess potential enforcement mechanisms1Specify the methodology of measuring progress in achieving the law's goals1Oversight of better regulation: There is an external  body responsible for reviewing the quality of RIAs and of ex post evacuations 0There are publicly available assessments of the effectiveness of RIA in modifying regulatory proposals 0There are reports on the level of compliance by government department with the requirements of RIA1There are indicators on the percentage of ex post evaluations that comply with guidelines0The effectiveness of ex post evaluations in improving the regulatory stock has been assessed in the last five years0 
 
     
 
 
 
     
 
Table A7.2:  Digital Decade key performance indicators: availability of digital public services 

(1) Digital Decade target by 2030: 100. (2) Publishing year, data was collected in the previous year. 
Source: European Commission, State of the Digital Decade report 2025 

in 

important  milestone 

an 
digital 
transformation  of  public  administration,  but  its 
success  still  depends  on  providing  good  user 
support  and  ensuring  that  different  institutions 
interpret procedures consistently (178). 

the 

To  address  the  2025  CSRs,  Slovenia  is 
working to strengthen its digital government 
improve  online  public 
infrastructure  and 
services,  as  there  is  room  for  improvement 
of  interoperability  and  reuse  of  data  across 
levels  of  government (179).  Slovenia’s  cohesion 
policy  programme  2021–2027  provides  support 
ICT  solutions,  e‑services  and 
for  government 
applications (180).  Under its recovery and  resilience 
plan  (RRP)  and  in  line  with  the  digital  public 
services  strategy  for  2030,  Slovenia  is  further 
developing 
its  central  government  portal  for 
companies  and  business  entities,  to  provide  more 
interaction 
integrated,  coordinated,  and  safe 
between 
public 
and 
administrations (181).  

businesses 

the  cross-border 
Slovenia  has  enabled 
exchange  of  data  and  documents  between 
authorities 
the  EU  once-only 
technical  system (182).  When  once-only-enabled 

through 

(178) Gospodarska zbornica Slovenije, 2026, ZGIGM | Arhiv: Po vsej 
Sloveniji odslej možna elektronska pridobitev gradbenega 
dovoljenja. 

(179) European Commission, forthcoming, Simplification of key life 

events. 

(180) European Commission, 2020, Slovenia’s EU Cohesion Policy 

Programme 2021-2027. 

(181) Government of the Republic of Slovenia, Draft budgetary 

plan of the General Government 2026. 

services (183)  become  accessible,  people  and 
businesses  will  no  longer have to  search  for  their 
data,  download  upload  documents  manually 
across  e-government  portals  in  different  Member 
States. Slovenia has authority registries connected 
in the populations domain. The country has yet to 
identify  the types of documents and data needed 
for  this  exchange  and  shift  from  exchange  of 
documents to exchange of structured data.  

Civil service 

Slovenia  has  been  implementing  reforms  to 
improve the attractiveness of employment in 
its the civil service. Under the  RRP, the country 
introduced  a  new  public-sector  wage  system, 
which  adapted  pay  in  the  various  parts  of  the 
public  sector  and  linked  it  to  work  performance. 
The  new  system  is  expected  to  be  better  tailored 
to  the  different  professions  and  help  address 
shortages  in  fields  such  as  social  care) (184)  (see 
Annexes 11 and 12).  

Compared  to  their  peers  across  the  EU,  civil 
servants  in  Slovenia  demonstrate  relatively 
strong  motivation.  Civil  service  employees  tend 
to  be  immersed  in  work  and  willing  to  do  extra 
effort.  Employee  engagement  is  highest  among 
new  starters  (less  than  a  year  in  post)  and 
experienced  employees  (those  who  have  been  in 
the  job  more  than  26  years).  Staff  satisfaction 
may be improved by i) better strategic leadership, 
ii)  stronger  focus  on  organisational  development 

(183) Procedure types under Annex II of the SDGR (2018/1724/EU) 
and directives 2005/36/EC, 2006/123/EC, 2014/24/EU and 
2014/25/EU.  

(182) European Commission, Once-Only Technical System 

(184) Government of the Republic of Slovenia, Draft budgetary 

Acceleratormeter, Ec.europa.eu. 

plan of the General Government 2026. 

70 

EU-272023202420252025717779828384858680888783Digital public services for citizens (0 to 100)Digital public services for businesses (0 to 100)Access to electronic health records (0 to 100)Slovenia 
 
 
 
  
 
for 

iii)  more 

opportunities 

and 
career 
development (185).  This  would  help  Slovenia’s  civil 
service have a younger age profile, 43% of which 
is 
public 
administration  employees  75%  have  completed 
higher  education,  well  above  the  EU  average  of 
55% (187). 

50 (186). 

Among 

above 

aged 

Integrity  

in  Slovenia 

While  the  perception  of  corruption  when 
doing  business 
is  high,  the 
reported  level  of  experienced  corruption  is 
below  the  EU  average.  The  figures  suggest  a 
high  perceived  level  of  corruption,  with  84%  of 
companies  saying  corruption  is  widespread  (EU: 
63%)  and  86%  stating  that  overly  close  links 
between  business  and  politics  lead  to  corruption 
(EU:  76%).  In  a  similar  vein,  42%  of  businesses 
report  that  corruption  is  a  problem  when  doing 
business  (EU:  35%) (188).  A  smaller  proportion  of 
firms than across the EU report direct requests for 
gifts  or  extra  payments  in  dealings  with  permits, 
services and public procurement (Slovenia 9%; EU: 
10%).  However,  confidence  in  enforcement  is 
lower,  with  only  13%  believing  that  those  caught 
bribing  senior  officials  are  appropriately  punished 
(EU: 33%) (189). The sector that is most vulnerable 
to  corruption  in  Slovenia  is  public  procurement, 
with investigations of wrongdoing carried out in  a 
number of large investment projects (e.g. purchase 
of  real  estate,  acquisition  of  IT  equipment,  water 
concessions and state-owned enterprises) (190) (see 
Annex 5).  

(185)OECD, 2025, Workforce Insights from Central Governments. 

(186) European Commission, Eurostat, 2026, European Union 

Labour Force Survey, Employed persons by economic activity 
(NACE Rev. 2) (2008-2026). 

(187) European Commission, Eurostat, 2026, European Union 

Labour Force Survey, Employees by educational attainment 
level and NACE Rev. 2 activity (2008-2026). 

(188) European Commission, 2025, Flash Eurobarometer survey 
557 on businesses’ attitudes towards corruption in the EU 
and selected enlargement countries. 

(189) European Commission, 2025, Flash Eurobarometer survey 
557 on businesses’ attitudes towards corruption in the EU 
and selected enlargement countries. 

(190) European Commission, 2025, Rule of Law Report, p. 14. 

Slovenia  has  taken  major  steps  to  improve 
the prevention and detection of corruption. In 
2025,  Slovenia  adopted  a  new  resolution  on  the 
prevention  of  corruption  (anti-corruption  strategy) 
and  an  accompanying  action  plan  covering  the 
period  to  2030.  This  provides  sector-  and  policy-
specific objectives to mitigate corruption risks and 
increase transparency, integrity and accountability. 
Its purpose is also to strengthen the enforcement 
of  the  rules  on  conflicts  of  interest,  lobbying, 
political-party financing, public procurement, public 
spending and whistleblower protection.  

The  commission  for  the  prevention  of  corruption 
upgraded  its  publicly  accessible  online  portal 
(ERAR) to modernise and enhance the accessibility 
and  transparency  of  data  on  public  expenditure. 
With  a  view  to  improving  transparency,  reducing 
the  risk  of  corruption  and  boosting  integrity,  the 
portal  is  also  intended  to  provide  information  on 
lobbying  and  business 
asset  declarations, 
restrictions. It also clarifies lobbying guidelines on 
exemptions 
registration  obligation, 
although  reporting  of  lobbying  contacts  remains 
low at local level. The legislation entered into force 
in  2026,  meaning  that  this  commission  now  has 
jurisdiction  over  all  public  employees  concerning 
interest (191).  Despite  awareness-
conflicts  of 
raising  campaigns, few reports of corruption have 
so  far  been  submitted  through  whistleblowing 
channels (192).  

from 

the 

Slovenia has also taken measures to improve 
the prosecution of corruption. The country has 
managed  to  reduce  the  backlog  of  unresolved 
reports  of  crime  and the police  concluded  several 
open  investigations.  However,  there  were  fewer 
charges  and  convictions  than  in  previous  years, 
and  no  foreign  bribery  cases  were  reported  or 
investigated. No high-level judgments in corruption 
cases have been delivered since 2020 and there is 
clear room for improvement (193).  

(191)The new Public Employees Act (ZJU-1) reproduces the 

legislative provisions on conflicts of interest laid down in the 
Integrity and Prevention of Corruption Act (IPCA) (ZIntPK) to all 
public employees and office holders. Previously, this 
commission was responsible only for overseeing conflicts of 
interest of high-level officials that fell within the scope of the 
IPCA. information gathered during the country visit for Rule of 
Law Report. 

(192) European Commission, 2025, Rule of Law Report, p. 13. 

(193) OECD, 2025, Slovenia must promptly strengthen 

independence of investigations and implement longstanding 

71 

 
 
 
 
justice system is expected to be completed by the 
end of 2026 (196).  

Amendments  have  been  proposed  to  the 
State  Prosecution  Office  Act  to  make  the 
prosecution  of  corruption  more  effective.  An 
internal  peer  review  was carried  out,  which  found 
shortcomings  in  the  effectiveness  of prosecutions 
of  local  officials,  mainly  relating  to  abuse  of 
functions  and  misuse  of  public 
financing 
resources. Following the peer review, a specialised 
working  group  was  set  up  to  develop  and  to 
promote  uniform,  comparable  approaches 
to 
conducting pre-trial proceedings (194). 

Justice 

The 
justice  system  generally  performs 
efficiently,  but  some  challenges  remain. 
Despite  maintaining  the  improved  number  of 
resolved  cases,  the  overall  backlogs  further 
increased (by 3%)  and the length of trials remain 
a challenge, particularly in financial and economic 
crime  cases.  The  average  time  taken  to  reach  a 
decision  in  commercial  cases  in  first-instance 
courts increased slightly from 344 in 2023 to 355 
days  in  2024.  The  estimated  time  to  resolve 
administrative  cases 
first-instance  courts 
in 
decreased from 627 days in 2023 to 570 days in 
2024 (195). 

The  digitalisation  of  the  Slovenian  justice 
system  is  advanced.  This  is  especially  true  of 
case  management.  Some 
improvements  have 
been  made  to  close  the  digitalisation  gap, 
especially regarding digital solutions to initiate and 
follow  proceedings 
civil/commercial  and 
in 
administrative  cases,  as  it  is  possible,  since  April 
2026, to send and receive court documents in civil 
cases.    The  country  lags  behind  in  online  access 
for  the  public  to  published  judgments  and  in  the 
arrangements  for  producing  machine-readable 
judicial  decisions.  As  part  of  Slovenia’s  RRP, 
investment  in  the  digitalisation  of  services  in  the 

recommendations, says OECD Working Group on Bribery 
following High-Level mission in Ljubljana. 

(194) European Commission, 2025, Rule of Law Report, p. 10. 

(195) European Commission, 2025, EU Justice scoreboard. 

(196) For  a  more  detailed  analysis  of  the  performance  of  the 
justice  system  in  Slovenia,  see  the  upcoming  2026  EU 
Justice Scoreboard and the 2025 Rule of Law Report. 

72 

 
 
 
SUSTAINABILITY 
ANNEX 8: INDUSTRY DECARBONISATION, CIRCULARITY AND CLIMATE MITIGATION 

received 

Slovenia 

Slovenia  has  been  advancing  with  reducing 
CO₂  emissions  in  industry  and  improving 
waste  management,  yet  it  faces  challenges 
in  mapping  renewable  energy 
including 
priority  zones  and  the  circular  economy.  In 
2025, 
country-specific 
recommendations  which  highlighted  the  need  to 
implement  energy  efficiency measures  and  invest 
in  sustainable  and  electric  transport.  Since  these 
recommendations,  Slovenia  rolled  out  financial 
incentives to promote energy efficiency in industry, 
but  several  challenges  remain.  They  include  the 
slow mapping of renewable energy priority zones, 
and  the  low  uptake  of  industry  decarbonisation 
funds  under  the  Recovery  and  Resilience  Facility. 
Challenges  persist  in  the  improvement  of  public 
transport  and 
transport  emissions. 
Slovenia has one of the highest recycling rates and 
lowest  landfilling  rates  in  the  EU.  Nonetheless, 
progress  has  been  limited  in  making  products 
more  circular  from  design  to  end-of-life.  This  is 
reflected  in  circular  economy  indicators  such  as 
resource  productivity  and  circular  material  use 
rate,  which  are  below  the  EU  average.  Industrial 
heavy  metals remain a  pressure  on  water  quality 
in Slovenia, primarily due to localised sources and 
historical pollution. The increase in industrial heavy 
metal 
is  concerning,  as 
it exacerbates water  pollution  and  contributes  to 
environmental costs that are not yet fully borne by 
polluters.  

to  water 

reducing 

releases 

Industry decarbonisation 

Greenhouse gas emissions from industry  

Slovenia’s  industrial  base  is  undergoing  a 
transformation  to  meet  climate  targets  and 
remain competitive as it transitions to a net-
zero  and  circular  economy (197).  Although 

(197) This Annex discusses the transition of Slovenia's 

manufacturing industry, specifically its energy-intensive 
industries, to low-carbon and net-zero modes of production, 
which is key to preserving competitiveness on the path 
towards climate neutrality as mandated by the European 
Climate Law. A broader perspective on the current 
competitiveness challenges facing Slovenia's manufacturing 
industry is provided in Annex 5. For a more detailed 
description of greenhouse gas emissions from industry, see 
European Commission (2025), 2025 Country Report - 

73 

improvements 

manufacturing in Slovenia contributes less to 
overall  greenhouse  gas  emissions  than  the 
EU  average,  the  key  climate  and  energy 
metrics  of  the  sector  are  close  to  the  EU 
average.  Industry  generates  16%  of  Slovenia's 
total  greenhouse  gas  emissions (198).  Industrial 
decarbonisation  has  made  measurable  progress, 
with 
in  energy  efficiency  and 
reductions  in  emission  intensity,  broadly  in  line 
with  EU  trends.  Manufacturing  emission  intensity 
has  fallen,  particularly  energy-related  emissions, 
and  energy  consumption  per  unit  of  output  is 
significantly  lower.  Nevertheless,  Slovenia’s  pace 
of improvement lags behind the EU average in key 
areas,  and  the  share  of  renewable  energy  in 
industrial  energy  use  has  slightly  decreased.  A 
State  aid  scheme  provides  indirect  compensation 
to  energy-intensive  companies  for  electricity 
charges  that  are  higher  due  to  carbon  prices 
(‘indirect emission costs') under the ETS. Emissions 
from industrial processes also remain a challenge. 
The lack of a specific national industrial policy for 
net-zero  manufacturing  limits  the  scope  to  scale 
up 
long-term 
investment signals (199). 

these  activities  and  weakens 

Policies to promote industry decarbonisation  

Energy  efficiency  is  an  important  aspect  of 
to  promote  cleaner 
Slovenia’s  policies 
industry production. Several regulatory schemes 
and  financial  incentives  are  in  place  to  promote 
energy  efficiency  and  industry  (and  services),  in 
line  with  the  country-specific  recommendation 
(CSR)  that  called  for  the  acceleration  of  the 
implementation of energy efficiency measures […]. 
This  includes  the  Energy  Efficiency  Obligation 
Scheme  (2015-2030),  which  aims  to  mobilise 

Slovenia, Commission staff working document, SWD (2025) 
224 final, Brussels, 4.6.2025, Annex A7. Clean industry and 
climate mitigation. 

(198) Data on the manufacturing sector exclude the NACE division 
C19 – manufacture of coke and refined petroleum products, 
for better match of the sectoral data from Eurostat (gross 
value added) with those from the UNFCCC under the 
Common Reporting Format. Also see further indicators on 
industry decarbonisation, as well as the annotation for 
further information, in table A8.1 at the end of this Annex. 

(199) At the same time, coal-region transition policies offer new 
opportunities to invest in skills development and clean 
technology deployment (see also Annex 19). On the 
environmental pollution from industrial activities, see further 
below in this annex.  

 
 
 
 
 
 
 
 
investment 

private 
in  energy  efficiency  by 
requiring  energy  suppliers  across  all  sectors  to 
achieve  annual  energy  savings  of  about  0.8%  of 
final  energy  sales  through  a  continuous  scheme 
(with  industry  delivering  the  largest  share  of 
savings). The Eco Fund business programme offers 
SMEs  and  large  companies  grants  covering  up  to 
30%  of  efficient  equipment, 
insulation,  heat 
recovery  and  process  improvements.  Its  Energy 
Audit programme provides 50% in subsidies (up to 
to  conduct  energy  audits  or 
EUR 15 000) 
implement 
ISO  50001  energy  management 
systems.  National  figures  indicate  that  industrial 
energy  efficiency (200)  improved  by  approximately 
38%  between  2000  and  2023.  However,  in  late 
2025, Slovenia cancelled a planned EUR 42 million 
public  call  under  the  recovery  and  resilience  plan 
to  support  decarbonisation,  energy  efficiency  in 
industry  and  buildings,  renewables,  hydrogen  and 
biofuels  investments  due  to  insufficient  eligible 
bids. This illustrates some of the challenges of the 
implementation 
policies. 
Slovenia  would  benefit  from  clearer  eligibility, 
smaller thematic sub-calls and blended finance to 
lower  co-financing  barriers,  while  providing 
technical  support  to  help  companies  prepare 
strong  applications.  Streamlining  administrative 
bottlenecks in permitting, enhancing outreach and 
aligning the scheme with national decarbonisation 
roadmaps  and  complementary  fiscal  incentives 
will 
take-up  and  ensure  effective 
deployment of decarbonisation investments. 

decarbonisation 

increase 

of 

Slovenia’s  hydrogen  eco-system  is  at  an 
emerging  stage.  The  Slovenian  Ministry  of 
Environment,  Climate,  and  Energy  launched  a 
tender in 2025 to draft an action plan to achieve 
the  hydrogen  targets  set  in  the  national  energy 
and  climate  plan.  Slovenia  is  also  involved  in 
Important  Projects  of  Common  European  Interest 
on hydrogen and report innovation in the hydrogen 
sector, particularly in mobility and energy systems, 
as well as expanding take-up by industry. Slovenia 
has  joined  the  EU  Clean  Hydrogen  Partnership 
alongside  Croatia  and  the  Italian  region  of  Friuli 
Venezia  Giulia  to  support  the  North  Adriatic 
Hydrogen Valley (201). 

(200) As measured by the ODEX index. 

(201) Slovenia Joins the EU Clean Hydrogen Partnership to 

Advance Hydrogen Innovation, Slovenia Joins the EU Clean 
Hydrogen Partnership to Advance Hydrogen Innovation - 
NAHV. 

74 

and 

Slovenia  provides  a  business  tax  incentive 
for  investment  in  the  green  and  low-carbon 
transition  under  its  Corporate  Income  Tax  Act, 
allowing  companies  to  reduce  their  taxable  base 
by up to 40% of the value of eligible investments 
in  areas  such  as  energy  efficiency,  renewable 
energy, 
industrial 
decarbonisation 
processes (202). There is also a government-backed 
State  aid  scheme  for  indirect  cost  compensation, 
which  provides  partial 
certain 
companies  for  the  higher  electricity  costs  caused 
by the EU emissions trading system (EU  ETS). For 
energy-intensive  industries,  this  is  a  temporary 
electricity  price  relief,  but  it  can  blunt  the  price 
signal that drives companies to reduce energy use 
or shift to low-carbon electricity. 

refunds 

of 

to 

Reduction of effort sharing emissions 

Compliance  with  effort  sharing  limits  with 
domestic measures 

is  projected 

For  2030,  Slovenia 
to 
overachieve  its  effort  sharing  target (203).  In 
2024,  greenhouse  gas  (GHG)  emissions  from 
Slovenia’s  effort  sharing  sectors  are  expected  to 
have  been  12.2%  below  2005  levels.  By  2030, 
with  current  and  planned  policies  and  measures, 
these  emissions  are  expected  to  decrease  by 
28.3%,  resulting  in  a  surplus  of  1.3  percentage 
points  relative  to  the  2030  target,  a  27% 
reduction. Slovenia is projected to exceed its effort 
sharing  emissions  limits temporarily  in  the  2021-
2030 period but could cover the gap  with unused 

(202) Corporate Income Tax Act (ZDDPO-2), Article 55.c 

(Facilitation of investments in the digital and green 
transitions). 

(203) The  national  GHG  emission  reduction  target  is  set  out  in 
Regulation (EU) 2018/842 (the Effort Sharing Regulation). It 
applies  jointly  to  buildings  (heating  and  cooling),  road 
transport,  agriculture,  waste  and  small  industry  (known  as 
the effort sharing sectors). The emissions from effort sharing 
sectors for 2024 are based on approximated inventory data. 
The  final  data  will  be  established 
in  2027  after  a 
comprehensive  review.  Projections  about  the  impact  of 
current  policies 
(‘with  existing  measures’,  WEM)  and 
additional  policies (‘with  additional  measures’,  WAM)  as  per 
Slovenia’s 2025 reporting under Article 17 of Regulation (EU) 
2018/1999 (the Governance Regulation). Also see European 
Commission  (2025),  Climate  Action  Progress  Report  2025 – 
Technical  Information,  Commission  staff  working  document, 
Brussels, Chapter 9 (pp. 111ff.),  and in particular Tables 25 
and 26. 

 
 
 
annual  emission  allocations  from  other  years  to 
the  Effort  Sharing 
achieve  compliance  with 
Regulation. 

Sustainable transport 

Graph A8.1: Greenhouse gas emissions in the 
effort sharing sectors, 2005, 2023, and 2024 

Source: European Environment Agency. 

the  need 

to  electrify 

transport,  particularly 

Slovenia's  2025  CSRs  highlighted  challenges 
concerning 
the 
transport  sector  and  focus  investments  on 
rail. 
sustainable 
Nonetheless,  road  transport  emissions  in  Slovenia 
have  continued  to  grow.  In  2024,  road  transport 
generated  55%  of  Slovenia’s  effort  sharing 
emissions,  an 
increase  of  29%  from  2005 
levels (204).  In  2025,  the  share  of  new  car  sales 
that  are  zero-emissions  reached  11%.  This marks 
quite  a  substantial  growth  from  2024,  when  the 
share  of  zero-emission  vehicles  was  6%.  In  line 
with the Alternative Fuels Infrastructure Regulation 
(AFIR),  Slovenia  is  mandated  to  facilitate  the 
installation of publicly accessible charging stations 
for  light-duty  vehicles  along  the  TEN-T  network. 
While  significant  investments  have  been  made 
with  funding  under  the  recovery  and  resilience 
Infrastructure 
plan  and  the  Alternative  Fuels 
is  needed  to  attain  the  AFIR 
Facility,  more 
targets (205).  Regarding  heavy-duty 
vehicles, 
Slovenia  does  not  internalise  the  external-cost  of 
CO2 emissions of heavy-duty vehicles by charging 
an external-cost charge for CO2 emissions in tolls, 
a  measure  that  would  make  zero-emission  trucks 
more  cost-competitive  and  thereby  support  their 
faster deployment. 

(204) See Graph A8.1, and Table A8.1 at the end of this Annex. 

investments  have 

Slovenia  has  taken  measures  to  promote 
more  sustainable  transport,  notably  public 
transport  and  rail  infrastructure.  In  2023, 
Slovenia  established  a  Public  Transport  Authority 
to integrate rail and bus services. It expanded bus 
services  from  approximately  50  to  60  million  km 
per  year  and  adjusted  peak-hour  and  weekend 
coverage,  along  with  measures 
to  better 
coordinate timetables.  An integrated ticketing  and 
pricing  system  is  now  in  place,  and  a  new  digital 
back-office  and  payment  platform 
is  under 
procurement, with implementation expected within 
12–18  months.  Slovenia  is  bringing  in  demand-
responsive  transport  and  adapted  vehicles  to 
improve  accessibility  for  people  with  reduced 
mobility.  Rail 
increased, 
including  new  lines,  TEN-T  corridor  upgrades, 
station  modernisation  (notably  in  Ljubljana)  and 
rolling  stock  adapted  for  accessibility.  Major 
projects  such  as  the  second  Divača–Koper  rail 
track,  are  expected  to  be  completed  in  2026 (206) 
and 
times  and  enhance 
competitiveness  with  cars.  Overall,  good  progress 
has  been made  in  railway  development.  However, 
to achieve the modal shift and reduce dependency 
on  cars,  further  action 
is  needed,  first  and 
foremost  to improve  public transport and develop 
infrastructure along the TEN-T corridors, due to be 
completed  by  2030.  It  is  also  important  to 
advance preparations for high-speed rail lines, the 
the  Ljubljana-Maribor  section. 
priority  being 
improve 
Additional 
multimodal passenger hubs in TEN-T urban nodes 
and to equip them with charging infrastructure for 
buses and coaches, the priority being on finalising 
the  Ljubljana  Hub.  To  aid  strategic  planning, 
Slovenia  has  a  new  national  mobility  plan  and  a 
transport  policy  framework  for  2030  which  will 
integrate  ongoing  and  planned 
systematically 
the 
measures  outlined,  amongst  others, 
National  Energy  and  Climate  Plan,  alongside 
environmental impact assessments. 

is  required  to 

investment 

reduce 

travel 

to 

in 

Slovenia  allocates  a  substantial  portion  of 
its  Climate  Fund,  financed  primarily  through 
revenue  from  the  EU  emissions  trading 
system, to mobility and transport initiatives, 
including  electric  public  transport  and  support  for 
low-emission  vehicles.  Slovenia  has  a  growing  e-
mobility  sector,  anchored  by  a  large  electric 
vehicle  manufacturer  and  several  smaller  firms. 
is  expanding, 
infrastructure 
Public  charging 

(205) AFIR fleet-based target tracker, Link 

(206) TTR Capacity Strategy 2025, page 2, Link. 

75 

02468101214200520232024MtCO2eDomestic transport (excl. aviation)Buildings (under ESR)AgricultureSmall industryWaste 
  
 
 
particularly  along  the  main  transport  corridors. 
Municipalities  can  access  subsidies  for  electric 
buses  and  shuttles,  and  Ljubljana  has  brought  in 
its first renewable-powered buses. Electric vehicles 
accounted 
for  approximately  10%  of  new 
registrations,  supported  by  sustained  state 
subsidies  and  expanded  charging  infrastructure.  
This  now  includes  around  2 500  public  charging 
points,  approximately  one  charger  per  six  electric 
vehicles.  But  the  infrastructure  for  heavy-duty 
vehicles  remains limited; a  new  tender  is  planned 
after  the  initial  call  that  failed  to  attract  bids. 
Between  2022  and  2026,  Slovenia  has  allocated 
around  EUR 124 million  for  electric  vehicles  and 
buses.  Its  long-term  plans  include  developing  12 
high-capacity  charging  hubs  along  the  TEN-T 
network  by  2035,  highlighting  progress  and  the 
areas where further investment and policy support 
are needed. 

of 

policy 

recent 

initiatives, 

Slovenia’s 
Despite 
transport  sector  still  lacks  strong,  targeted 
policies  to  significantly  reduce  emissions,  as 
road  transport  remains  the  dominant  source  of 
in  the  sector. 
GHG  and  energy  consumption 
Slovenia’s 
reimbursing 
current 
employees’ commuting costs effectively subsidises 
fossil  fuel  use,  as  fossil  fuel–based  transport  is 
eligible. This policy could be reformed to prioritise 
support  for  public  transport  and  electric  vehicles, 
helping 
toward 
to  shift  commuting  habits 
low-carbon  options.  To  accelerate  the  process  of 
integrate 
Slovenia 
decarbonisation, 
demand-side 
sustainable 
incentives 
commuting,  stronger  disincentives  for  fossil-fuel 
use,  and  invest  in  rail  and  active  transport 
infrastructure  as  a  competitive  alternative  to  car 
use.  This  is  possible  under  Slovenia's  national 
transport  and  climate  strategies,  supported  by 
implementation  at  all 
coherent  planning  and 
governance levels.  

could 
for 

Sustainable industry 

to  become  the  leader  in  central-eastern 
in  the  transition  to  a  circular 
Europe 
economy, but implementation remains slow.  

The  very  good  results  on  waste  management 
contrast  with  rather  poor  performance  on  circular 
economy  indicators,  indicating  a  high  untapped 
potential. Slovenia is one of the top EU performers 
on  recycling  rates,  with  over  62%  of  municipal 
waste recycled in 2024 (against the EU average of 
48%)  and  almost  52%  of  plastic  packaging 
recycled  in  2023  (above  the  EU  average  of 
42% (208).  This  is  also  reflected  in  a  low  and 
decreasing  use  of  landfilling,  used  for  only  about 
10%  of  municipal  waste  in  2023,  already  in  line 
with the 10% EU target for 2035. Despite the 47% 
surge  in  the  number  of  people  employed  in  the 
sector  since  2014 (209),  the  key  circular  economy 
indicators  are  improving  only  slowly  and  still  trail 
the EU average. In 2024, the circular material use 
rate was 10.1% (EU average: 12.2%) (210), and the 
resource productivity rate was EUR 2.3 per kg (EU 
average:  almost  EUR 3  per  kg).  The  rate  of 
integrating  secondary  raw  materials  into  new 
products is also slow, as is the take-up of products 
under  the  EU  ecolabel  scheme (211)  and  the  eco-
management  and  audit  scheme  (EMAS) (212).  The 
low  results  on  the  circular  economy  indicators 
might  be  partially  explained  by  the  high  share 
(about 50%) of waste produced by demolition and 
construction  and  the  technical  and  permitting 
obstacles to reusing those materials.   

consumption  per 

Material 
capita  has 
decreased  over  the  past  five  years  by 
8.2% (213)  but  the  volume  of  total  waste 
generation  (including  mineral  waste)  has 
increased  over  the  last  10  years,  exceeding 
the  EU  average (214).  These  data  underscore  a 
persistent reliance on primary raw materials, with 

(208) European Commission, 2025 Environmental Implementation 

Review, Country Report – Slovenia. Link.  

(209)Circular economy sector covers the recycling sector, repair 
and reuse sector and rental and leasing sector. Eurostat 
definition code [cei_cie011]. 

Circular economy 

(210)Eurostat, circular material use rate. 

Slovenia’s  circular  economy  roadmap (207)  is 
ambitious, with the objective for the country 

(211)European Commission, ‘EU Ecolabel facts and figures’. 

(212)European Commission, ‘EMAS register’.  

(213)Eurostat, Material footprints, 2024. 

(207) Ministry of the Environment and Spatial Planning of the 

Republic of Slovenia, Roadmap towards the Circular Economy 
in Slovenia, Ljubljana, 2018, Link. 

(214)Eurostat, Waste generation per capita, European 
Commission, Waste Management Country Profile, Slovenia, 
March 2025 Link (includes mineral waste). 

76 

 
 
 
a  high level  of dependence  on  imports.  A  positive 
milestone in the transition to a circular economy is 
the new Slovenian Center for Circular Economy set 
up  in  December  2024.  The  Center  is  a  one-stop 
shop  for  policy  support,  innovation  services  and 
capacity  building  for  policymakers,  businesses, 
research organisations and the public.  

Slovenia’s  fiscal  tools  for  circular  practices 
support  revenue  and  waste  reduction.  Total 
environmental  tax  revenue  is  higher  than  the  EU 
average  (at  2.9%  of  GDP  in  2022;  EU  average: 
2%) (215). Taxes on pollution and resources form a 
low share of total taxes (0.1%) but slightly above 
the  EU  average  (0.08%).  Bringing  in  a CO2  tax  on 
incineration  could  lead  to  a  reduction  in  the 
volume  of  mixed  municipal  waste (216)  and 
generate  additional  revenue (217).  Likewise,  an 
effective  measure  to  encourage  producers  to 
design  for  recycling  and  therefore  create  the 
conditions  for  higher  recycling  rates  would  be  to 
bring  in  criteria  for  advanced  fee  modulation  in 
extended  producer  responsibility  schemes,  which 
do  not  yet  exist  in  Slovenia (218).  Reaching  its 
circular  economy  objectives  require  additional 
investment of EUR 88 million per year. 

Bioeconomy industry 

Between  2018  and  2023,  the  value  added 
generated  by  the  bioeconomy  has  grown  by 
4.6%  on  average,  below  the  EU  average  of 
5.1%.  Wood  products  and  furniture  saw  the 
highest  growth  in  value  added  (6.1%  on  average 
between 2018 and 2023) (219). 

Overall  employment 
in  the  bioeconomy  has 
slightly  fallen.  However,  the  bioeconomy  sub-
sectors of food and beverages, wood products and 
furniture, and bio-based chemicals and plastics all 
recorded  growth  in  total  employment  between 
2018 and 2023 (1.6%, 1.4% and 3.5% on average 

in 

respectively) (220).  Labour  productivity 
the 
bioeconomy  –  measured  as  value  added  per 
person employed – stood at 57.3% of the national 
average, down from 58.5% in 2018 (221). Research 
and development (R&D) business expenditure from 
bioeconomy  sub-sectors  has  grown  slightly  more 
than overall R&D business expenditure in Slovenia 
(6.7%  compared  to  6.0%  on  average  between 
2018 and 2023) (222). 

is  also 

textile  sector 

Slovenia’s  bioeconomy  is  anchored  by  its 
wood products and furniture sector.  The food 
and  beverage  market  is  a  vital  pillar,  focusing  on 
organic  production  and  creating  value  from 
agricultural  residues  into  functional  ingredients. 
The 
transitioning  by 
integrating  natural  fibres  such  as  hemp  and 
recycled  cellulose  into  a  more  sustainable  value 
chain.  Slovenia's  bioeconomy  policy  is  framed  in 
various strategic documents such as the Slovenian 
the  Slovenian 
Development  Strategy  2030, 
Agriculture  and  Food  Strategy,  the  Slovenian 
Smart  Specialization  Strategy  (S5) (223).  Slovenia 
also promotes the development of the bioeconomy 
under  the  recovery  and  resilience  plan,  which 
invests  in  the  sustainable  use  and  processing  of 
wood  and  the  sustainable  renovation  of  buildings 
using bio-based materials (224).  

Zero-pollution industry 

Over  the  past  decade,  Slovenia  has  made 
in  reducing  key  air 
significant  progress 
pollutants  through  cleaner  energy  production, 
tighter 
and 
emission 
improvements in industrial technology.  

standards 

vehicle 

From 2010 to 2022, Slovenia has achieved a 26% 
reduction in air pollutant emissions (NOx, NMVOC, 
PM10,  PM2.5  SOx)  in  kg  per  capita (225).  Despite 
this  achievement,  the  costs  of  air  pollution, 

(215)2025 Environmental Implementation Review, Country Report 
– Slovenia, Link. 

(216)An average 25% reduction in municipal waste can be 
achieved when PAYT is applied, (Dornbusch et al., 2020). In 2024 
Slovenia incinerated 15,7% of its municipal waste. 

(217)EEA, Early warning assessment related to the 2025 targets 
for municipal waste and packaging waste. 

(218)European Commission, Waste Management Country Profile, 
Slovenia, March 2025. 

(219)Joint Research Centre, Developments of Economic Growth 
and Employment in Bioeconomy Sectors across the EU, Link. 

(220)Bioeconomy subsectors: food and beverages; bio-based 
textiles; wood products and furniture; bio-based chemicals and 
plastics. 

(221)Joint Research Centre, Developments of Economic Growth 
and Employment in Bioeconomy Sectors across the EU, Link. 

(222)Joint Research Centre, Business expenditure in Research and 
Development (R&D) in the EU bioeconomy, Link,. 

(223)Bioeast, Slovenia’s Bioeconomy policy framework. Link 

(224)About the Recovery and Resilience Plan | GOV.SI. 

(225) Eurostat, Air emissions accounts. 

77 

 
 
 
especially from road traffic, are still high (226) and 
estimated at EUR 4.6 million per year. Air pollution 
by PM2.5 is estimated to lead to 629 years of life 
lost  per  100 000  in  2024,  still  above  the  EU 
average  of  527.  This  underscores  the  need  for 
further action, particularly in industrial regions and 
urban 
transport  corridors.  The  environmental 
taxation system is well developed, but there is still 
scope  to  improve  it.  Small  changes  in  pollution 
taxes for major air pollutants such as NOx, SO₂ or 
particulate  matter  could  help  improve  air  quality, 
particularly in urban and industrial areas that still 
face challenges with particulate pollution (227).   

productivity  and  environmental  degradation (230). 
Investment  still  falls  short  of  this  need.  Meeting 
national  and  EU  targets  for  pollution  prevention 
and  control  would  require  an  additional  EUR 55 
million  in  investment  every  year  (0.09%  of  GDP), 
mainly on improving air quality and particularly in 
the road transport and energy sectors (231). 

releases 

lead),  while 

In  Slovenia, 

Water  pollution  from  industry  remains  a 
challenge.  Concerning  developments  for  water 
pollution  in  Slovenia  include  a  102%  increase  in 
(cadmium, 
industrial  heavy  metal 
mercury, nickel and 
total  organic 
carbon  emissions  to  water  have  fallen  by  66% 
since  2010,  as  reported  under  the  Industrial 
Emissions  Directive  (IED) (228).  100%  of  Slovenia’s 
surface  water  bodies  still  fail  to  achieve  good 
chemical status due to the presence of ubiquitous, 
toxic  priority 
persistent,  bioaccumulative  and 
substances 
these  are 
(uPBTs). 
primarily  mercury  and  PBDEs  (polybrominated 
diphenyl  ethers).  Excluding uPBTs,  98.7%  of 
surface  water  bodies  in  Slovenia  would  achieve 
good  chemical  status.  Water  pollution  by  industry 
imposes direct and indirect costs of EUR 72 million 
a year, not yet sufficiently borne by the polluters. 
There  is  scope  to  improve  the  taxation  system  in 
the  water  sector  as  rates  are  modest  compared 
with  the  environmental  costs  they  should  cover. 
Adjusting  wastewater  charges  for  households, 
industry  and  agriculture  could  raise  additional 
revenue (229)  that  could  be  used  for  wastewater 
infrastructural 
improve 
compliance with the Water Framework Directive. 

upgrades 

and 

to 

The  total  economic  cost  of 
industrial 
pollution in Slovenia is EUR 1.6 billion a year, 
lost 
encompassing 

healthcare 

expenses, 

(226)Report, 'Update of the costs of not implementing EU 
environmental law'. The damage cost is estimated as VOLY. 

(227)Green taxation study, 2025 [ref. TBD]. 

(228)European Environmental Agency (EEA), Water pollutant 
releases changes from 2010 to 2022 for the EU Member States. 

(229)Green taxation study, 2025 [ref. TBD]. 

(230)The cost of health and the environment from industrial air 
pollution in Europe, 2024 update. EEA. The costs reported are 
calculated as value of a statistical life.  

(231)Environmental Implementation Review 2025 (SWD(2025) 
324 final), Country Report Slovenia, Link. 

78 

 
 
 
Table A8.1:  Key clean industry and climate mitigation indicators: Slovenia 

Sources and notes: Industry decarbonisation: All data are from Eurostat; data following the UNFCCC Common Reporting 
Format (CRF) are from the European Environment Agency (EEA), republished by Eurostat. (1) Sectors covered: all divisions of 
section C - Manufacturing - of the NACE Rev. 2 statistical classification of economic activities, except C19 (manufacture of coke 
and refined petroleum products). (2) GHG emissions as per UNFCCC Common Reporting Framework (CRF) categories 1.A.2 - fuel 
combustion in manufacturing in industries and construction (that broadly correspond to the broadly correspond to the NACE 
sections C - Manufacturing and E - Construction, excluding C-19),  and CRF2 - industrial processes and product use. The figures 
shows the emissions in the 1.A.2 category as a share of the sum of CRF1.A.2. and CRF2 emissions. (3) Sectors covered: CRF 1.A.2 
as described above. Gross value added (GVA) data in the denominator aligned in sectoral coverage, in 2020 prices. (4) Sectors 
covered: NACE section C excluding C19. (5) Nominator: NACE divisions C17, 20, 23, 24; denominator: NACE section C excluding 
C19 (see above). (6) GVA (denominator) in 2020 prices. Reduction of effort sharing emissions: Data source: European 
Environment Agency, greenhouse gas data viewer; European Commission, Climate Action Progress Report, 2025. For details, see 
the footnote in the "Reduction of effort sharing emissions" section. Sustainable road transport: (7) Source: Eurostat; (8) Source: 
European Alternative Fuels Observatory; (9) Source: Eurostat. For all climate mitigation indicators, the trend arrows compare the 
latest available data (year t) with the data four years earlier (t-4). Sustainable industry: Bioeconomy value added, employment 
and productivity: JRC, Developments of Economic Growth and Employment in Bioeconomy Sectors across the EU. Bioeconomy 
R&D business expenditure: JRC, Business expenditure in Research and Development (R&D) in the EU bioeconomy. Damage cost for 
industrial pollution: EEA, The costs to health and the environment from industrial air pollution in Europe, 2024. Water industrial 
pollutants releases: EEA, Industrial releases of pollutants to water and economic activity in the EU-27, 2024. Water chemical 
status: WISE, Surface water bodies: Chemical status, 2024 and WISE Groundwater bodies: chemical status, 2024. Other indicators: 
Eurostat. For circular economy indicators, the trend arrows compare the latest available data (year t) with the data two years 
earlier (t-2). 

79 

Climate mitigationTrendIndustry decarbonisation201820192020202120222023202420182023GHG emissions intensity of manufacturing production, g/€ (1)315288281259251227223330-Share of energy-related emissions in industrial GHG emissions (2)60.459.259.760.759.760.1-55.557.9Energy-related GHG emissions intensity of manufacturing and construction, g/€ (3)199.1178.6178.6163.8156.0144.0-203.9163.0Share of electricity and renewables in final energy consumption in manufacturing, % (4)47.347.446.346.246.344.944.842.843.9Energy intensity of manufacturing, GWh/€ (4)1.611.501.451.351.251.121.091.271.05Share of energy-intensive industries in manufacturing production, % in GVA (5)15.0715.3114.9914.3414.9614.3813.13--GHG emissions intensity of production in sector [...], g/€ (6)- paper and paper products (NACE C17) 1 636       1 466       1 239              1 157         1 679               1 282        1 328          722             619            - chemicals and chemical products (NACE C20) 355          320          311                 243            272                  342           214             --- other non-metallic mineral products (NACE C23) 2 971       2 899       2 949              2 498         2 388               2 311        2 896          2 495          2 352         - basic metals (NACE C24) 1 392       1 109       1 107              1 861         3 606               1 894        1 513          2 842          3 099         Reduction of effort sharing emissions201820192020202120222023202420182023GHG emission reductions relative to base year, % -12.2-9.5-13.4-12.2- domestic road transport32.627.84.018.331.721.929.0-1.4-5.6- buildings-49.4-49.9-49.8-53.4-53.0-53.5-52.4-20.3-33.520052021202220232024TargetWEMWAMEffort sharing: GHG emissions, Mt; target, gap, %11.810.410.710.210.4-27.0%-9.4%-28.3%Sustainable road transport2018201920202021202220232024202520182021New zero-emission vehicles, electricity motor, % (7)0.700.963.223.265.028.896.001.038.96Number of publicly accessible AC/DC charging points (8)--36312471601160821562545446956n/aShare of electrified railways, % of total (9)50.4550.4550.4550.4550.0850.0850.0855.4756.49Sustainable industryTrendEU-27Circular economy transition20182019202020212022202320242018latest dataMaterial footprint, tonnes per person17.015.814.316.617.017.315.314.813.7Circular material use rate, %10.1          10.2         9.9                  8.9             8.2                    9.9             10.111.612.2Resource productivity, €/kg1.5            1.7           1.7                  1.7             1.8                    2.0             2.32.13.0Employees in circular economy2.2            2.33.1                  2.9             2.5                    2.7             -2.12.0Patents in circular economy01.0           0.5                  1.0             12.312.0Recycling rate           58.9           59.2                  59.3             60.8                   62.6            59.8 62.4            46.4048.1Plastic recyling 49%50%45%50%51%52%-41%42%Construction and demolition waste (CDW) recovery 98-978889Bioeconomy industry 2018201920202021202220232024CAGR 2018-202320182023Value added, million EUR2 6292 7582 9392 9753 4043 433-4.6%642 438863 436Employment, total number of people employed116 496116 998115 315115 244116 332115 551--0.1%17 649 04017 085 642ProductivityValued added per worker, thousand EUR22.623.625.525.829.329.7-4.7%36.450.5Valued added per worker, % of national average58.558.964.359.663.457.3--62.270.7R&D business expenditureTotal bioeconomy (biomass producing and converting sectors)1271361571571761876.7%15 67223 335Total R&D business expenditure662731739816840938-6.0%196 587259 525Zero pollution industry201820192020202120222023202420182021Damage cost for industrial pollution2.01.61.51.6---414.9352.7Water industrial pollutants releases 2021change (2010)2021change (2010)2021change (2010)2021change (2010)454          90%253 441          -76%12 274 100      -57%40 061        -76% Water chemical statusGood-                  Good (%)-                   Poor155.0Poor (%)100%EUTOCPhosporusSloveniaSloveniaCd, Hg, Ni, Pbnitrogen 
 
  
 
 
ANNEX 9: AFFORDABLE ENERGY TRANSITION 

This  annex  outlines  the  progress  made  and 
the  ongoing  challenges  faced  in  increasing 
energy  affordability,  while  advancing  the 
transition 
the 
implementation  of  past  energy-related  country-
specific recommendations. 

to  net  zero. 

reflects 

It 

local  authorities’  capacity 

The  2025  country-specific  recommendations 
highlighted  the  need  for  Slovenia  to:  (1) 
accelerate  the  roll-out  of  renewables  and 
energy storage by simplifying permitting and 
boosting 
to 
accelerate  approvals;  (2)  strengthen  the 
electricity  grid  infrastructure  at  distribution 
level  and  introduce  smart  grid  components; 
and  (3)  accelerate  the  implementation  of 
energy  efficiency  measures,  particularly  in 
the  building  sector.  The  development  of 
Slovenia’s electricity sector remains largely reliant 
on  a  mix  of  renewables  and  nuclear  power,  while 
progressively reducing the share of coal (until coal 
is  finally  phased  out  by  2033 (232)).  Despite 
Slovenia  recently  undertaking  several  reforms  to 
simplify  permitting  in  the  context  of  its  recovery 
and resilience plan, deployment of wind capacities 
has  stalled  for  more  than  a  decade.  Regarding 
energy  system  integration,  Slovenia  has  taken 
steps  to  promote  the  installation  of  electricity 
storage and demand-response systems, and put in 
place 
to  enable 
development. 

framework 

regulatory 

the 

Energy prices and costs 

the 

government’s 

Alongside 
continued 
measures  to  reduce  final  retail  energy 
prices (233),  Slovenia  recorded  significant 
decreases  in  household  and  non-household 
electricity  and  gas  prices,  which  remained 
below the EU average, whereas gas industrial 
prices remained at the EU level.  

In the first half of 2025, both household electricity 
and  household  gas  prices  in  Slovenia  decreased 
and  remained  well  below  the  EU  average,  at 
EUR 0.1810/kWh 
EUR 0.0849/kWh 
and 
respectively.  Similarly,  non-household  gas  prices 

have  stabilised  since  2024  and  reached  the 
average EU level, while industrial electricity prices 
(EUR 146/MWh)  have  decreased  significantly  and 
remained  below  the  EU  average  (EUR 164/MWh). 
While  70%  of  the  electricity  price  for  industry  is 
accounted  for  by  wholesale  cost,  network  cost, 
carbon  cost  and  taxes  represent  12%,  10%  and 
8% respectively of the electricity bill.  

In  the  first  half  of  2025  gas  remained 
significantly  cheaper  than  electricity 
in 
Slovenia,  partly  due  to  higher  taxation  on 
electricity  than  on  gas.  For  large  businesses, 
electricity was 2.8 times more expensive than gas 
in  the  first  half  of  2025,  with  taxes  and  levies 
(excluding  VAT)  accounting  for  8%  of  electricity 
bills  and  6%  of  gas  bills.  Excluding  taxes  and 
levies, the electricity-to-gas price ratio would have 
decreased  to  2.7,  indicating  that  Slovenia’s  fiscal 
measures  did  not  have  any  balancing  effect.  For 
household  consumers,  the  impact  of  taxes  and 
levies  on  the  electricity-to-gas  price  ratio  was 
almost  the  opposite,  reducing  it  from  2.3  to  2.1 
once taxes and levies were eliminated, indicating a 
positive balancing effect (234).  

for 

fuels 

fossil 

electricity 

Due  to  a  combination  of  reliance  on 
electricity 
expensive 
generation  and  limited  non-fossil  flexibility, 
Slovenia’s  wholesale 
prices 
in  2025 (235)  – 
averaged  EUR 106/MWh 
significantly  above  the  EU  average  of 
EUR 85/MWh.  Fossil  fuels  accounted  for  20%  of 
electricity generated in Slovenia, maintaining their 
structural  role  as  dominant,  and  costly,  marginal 
price-setting  technologies  (56%  of  price-setting 
hours  for  21%  electricity  generation).  Average 
day-ahead  electricity  prices  in  Slovenia  increased 
by  15%  in  2025  (compared  to  2024)  amid  rising 
natural  gas  costs.  Although  daytime  wholesale 
electricity prices have fallen in recent years owing 
to  the  surge  in  solar  power,  Slovenia  remains 
vulnerable  to  severe  price  spikes  during  peak-
demand hours. This is because falling solar output 
in  the  evening  and  early  morning  and  higher 
imports  from  neighbouring  countries,  combined 
with  limited  non-fossil  flexibility,  have  led  to  a 
significant ramp-up of thermal plants to cover the 

(232) National strategy for coal phaseout, january 2022.  

(234)Based on Eurostat data first half of 2025. 

(233) Eurostat.  

(235) Ember. 

80 

 
 
 
 
 
supply–demand gap. As a result, price spreads (236) 
in Slovenia averaged EUR 136/MWh in 2025, down 
2% compared to 2024 but above the EU  average 
of EUR 121/MWh. 

Graph A9.1: Electricity and gas prices for 
household and non-household consumers, first 
half of 2025 

Graph A9.2: Low-carbon electricity generation vs. 
electricity wholesale prices, 2025 

(i) For household consumers, the consumption band is DC for 
electricity and D2 for gas. 
(ii) For non-household consumers, the consumption band is ID 
for electricity and I4 for gas. VAT and recoverable charges are 
not displayed for non-household consumers as these are 
typically recovered by businesses. This also applies to the ‘% 
of taxes and levies’, which is shown excluding VAT and 
recoverable charges for non-household consumers. 
(iii) ‘Without taxes and levies’ indicates the retail price 
excluding all taxes and levies. It always includes the 
energy/supply and network cost components, which are not 
disaggregated in Eurostat’s six-monthly price dataset. 
Source: Eurostat 

Unavailable data for Cyprus and Malta. Wholesale price is 
given as average of day-ahead electricity prices over 2025. 
EU-27 average is calculated as consumption-weighted. EU 
low-carbon share is calculated out of total EU electricity 
generation. Low-carbon share by country is calculated out of 
total public electricity generation. Low-carbon includes 
renewables and nuclear. 
Source: Eurostat 

Flexibility and electricity grids 

flexibility 

Slovenia's  energy  sector  is  characterized  by 
a  high  capacity  for  cross-zonal  electricity 
trade and a growing need to grid investment. 
The  country  has  implemented  measures  to 
promote 
consumer 
empowerment,  with  ongoing  efforts  to 
increase 
various 
electrification  across 
sectors.  The  2025  CSRs  highlighted  the  need  to 
increase  investments  in  the  distribution  grid  in 
order  to  achieve  Slovenian  national  energy  policy 
objectives. 

and 

for 
remains 

capacity 
trade 

cross-zonal 
Slovenia’s 
consistently 
electricity 
high (237),  with  no  action  plan  or 
timeline 
derogation (238)  needed  to  achieve  the  70% (239) 
threshold.  Since  2020,  EU  Member  States  have 

(237)According to 2024 estimates from ACER (2025 Market 
Monitoring Report). 

(238)A transitional period was granted under Article 15 of the 
Electricity Regulation, allowing Member States with structural 
congestion issues to gradually reach compliance by 
31 December 2025 through action plans approved by the 
European Commission. 

(239)Transmission system operators are required under EU law to 
make 70% of transmission capacity available for electricity 
trading with neighbours by the end of 2025. 

(236) ‘Spread’  refers  to  the  difference  between  the  highest  and 
lowest hourly day-ahead electricity prices in a single day. 

81 

 
 
 
 
 
 
been  required  to  ensure  that  at  least  70%  of 
is  made 
interconnection  capacity 
electricity 
available for cross-border trade. Slovenia is part of 
the  Core  and  Italy  North  capacity  calculation 
regions  (CCRs) (240).  While  the  Italy  North  CCR 
largely  meets  this  target,  greater  efforts  are 
needed in the Core CCR. 

to  put  in  place  the  regulatory  framework  to 
enable  development  of  flexible  energy 
introduced  economic 
resources.  Slovenia  has 
incentives  for 
integrated  with 
local  storage 
renewable  energy  sources  (RESs)  and  a  support 
scheme  for  advanced  devices  enabling  flexibility 
services.  

(4%  of 

is  well 

Slovenia 
interconnected  with 
neighbouring  EU  Member  States.  Slovenia is  a 
net  electricity  exporter 
its  own 
consumption),  exporting  significant  volumes  to 
Croatia,  while  importing  from  Austria.  Although 
there has been a decrease in allocated capacity at 
its  cross-border  points,  Slovenia  has  maintained 
an  electricity  interconnection  level  of  74.7%,  well 
above the EU target, for 2026. The transit role of 
Slovenia  is  projected  to  further  increase  in  the 
years  to  come,  with  rising  cross-border  electricity 
flows,  mainly  from  north  to  south.  Cross-border 
interconnections  with  Austria  and  Croatia  are 
therefore  expected  to  receive  greater  attention 
along  with  necessary 
internal  reinforcements, 
while  the  interconnections  with  Hungary  and  Italy 
remain important (241).  

Since  2023,  Slovenia,  together  with  Austria 
and  Croatia,  has  been  implementing  the 
‘GreenSwitch’  project  with  support  from  the 
Connecting  Europe  Facility,  which  seeks  to 
modernise  and  digitise  these  countries’ 
transmission  and 
electricity  grids  at 
distribution  level  and  increase  their  hosting 
capacity.  Another  smart  grid  electricity  project 
which  Slovenia  is  currently  developing  together 
with  Hungary  and  Slovakia  is  ‘TUNE’.  This  project 
has been included in the second Union PCI/PMI list 
and is due to be implemented by 2031. ELES, the 
combined  transmission  and  distribution  system 
in 
operator,  plans  to 
transmission  grid  modernisation  and  expansion 
between 2025 and 2034. 

invest  EUR 1.21  billion 

Slovenia  has  already  taken  steps  both  to 
promote 
installation  of  electricity 
storage  and  demand-response  systems  and 

the 

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

(241)Updated 2021-2030 national energy and climate plan of the 
Republic of Slovenia. 

82 

The  introduction  of  an  advanced  metering 
system  has  been  completed:  almost  100%  of 
customers  were  equipped  with  advanced  meters 
by the end of 2025. Further measures, such as the 
introduction  of  economic  incentives  for  combined 
RES  storage  projects,  should  follow  by  2030,  as 
outlined  in  the  country’s  updated  national  energy 
and climate plan (NECP). Furthermore, there are no 
barriers  to  the  development  of  flexible  resources 
in Slovenia’s regulatory framework, as it allows for 
demand-side  response  (DSR)  and  storage  to  sell 
and  buy  electricity  in  the day-ahead  and  intraday 
to 
markets.  DSR  and  storage  are  allowed 
participate 
in  ancillary  services.  Aggregators, 
including independent aggregators, can participate 
in  these  services  as  well.  Further  reflecting  the 
increased  flexibility,  245 hours  of 
need  for 
negative  prices  were  recorded  in  2025,  a  growth 
of 12% compared to 2024 (218 hours). 

In October 2024, a new system of electricity 
network  charges  for  both  businesses  and 
households entered into operation. It is based 
on  the  2022  Act  on  the  methodology  for  the 
charging  of  network  charges  for  electricity 
operators,  which  has  been  amended  on  several 
occasions  since  then.  The  reform  introduced  high 
seasons  (November-February)  and  low  seasons 
(March-October),  as  well  as  five  time  blocks 
determined  in  accordance  with  the  load  on  the 
network.  Other  important  changes  were  made  in 
the  areas  of  capacity  and  the  calculation  of 
network  charges.  There  have  been  ongoing 
disputes  between 
regulator 
(responsible  for  approving  network  charges)  and 
the  government  on  the  content  of  the  tariff 
methodology  adopted  by the  regulator  in  October 
2024.  In  February  2025,  parliament  passed  an 
urgent  bill  to  reduce  the  network  charges  during 
Block  1,  the  most  expensive  block,  for  household 
consumers in January and February 2025, with the 
shortfall  in  the  network  charges  collected  to  be 
covered by ELES, the electricity system operator. In 
June  2025,  parliament  adopted  another  bill  fully 
exempting  pumped  hydro  and  battery  storage 
facilities from network charges. 

the  Slovenian 

 
 
decentralisation 

Decarbonisation, 
of 
renewable  energy  production,  the  uptake  of 
flexibility  and  storage,  and  electrification  in 
sectors  such  as  transport  and  heating  mean 
that  the  distribution  grid  needs  to  be 
strengthened.  While  an  increase  in  the  level  of 
investment in Slovenia has been seen over recent 
years,  the  investment  required  for  2025  to  2034 
has  been  projected  at  EUR 3.94  billion (242).  In 
response to the growing need for grid investment, 
the  2021‑2027  cohesion  policy  programme  was 
amended  to  make  energy  transition  and  energy 
security a priority, allocating funding to modernise 
transmission  and  distribution  networks,  support 
energy  storage  facilities  and  develop  charging 
infrastructure  to  increase  resilience  and  facilitate 
the integration of renewable generation. The 2025 
Country specific Recommendations highlighted the 
need  for  Slovenia  to  increase  investments  in  the 
distribution  grid  in  order  to  achieve  its  national 
energy policy objectives. 

in  2024 

In  Slovenia,  consumer  empowerment  is  well 
advanced with the adoption of smart meters 
and  dynamic  contracts,  but  progress  still 
need  to  be  done  to  facilitate  switching 
between  energy  suppliers  and  to  foster  the 
growth of energy Communities.  The roll-out of 
smart meters has progressed well in Slovenia, with 
almost  100%  of  households  being  equipped  with 
them 
in  2023). 
Furthermore,  6.2%  of  consumers  are  also 
producers,  an  increase  of  1.5  percentage  points 
compared  to  the  previous  year (243).  As  of  2024, 
there  were  60 245  self-consumption  systems  in 
installed 
in  Slovenia,  with  a  total 
operation 
capacity  of  779 MW.  Dynamic  contracts  are 
available  and 
recorded  an  uptake  among 
households  of  + 3%  in  2024.  There  are  now 
comparison  tools  available  to  compare  dynamic-
price contracts.  

from  95% 

(up 

the  national 

regulatory  authority 

previous  year.  92.6%  of  household  consumers 
have not switched supplier in the past three years. 
AGEN, 
in 
Slovenia,  found  that  government  measures  had 
significantly  reduced  the  expected  benefits  of 
switching.  The  number  of  energy  communities  is 
very  limited,  although  it  is  increasing.  In  2024,  it 
grew  to  126,  representing  a  16.7%  increase 
compared  to  the  previous  year (244).  In  2024, 
electricity accounted for 22.9% of Slovenia’s final 
energy consumption, slightly below the EU average 
of 23.4%. When it comes to households, electricity 
accounts  for  35.4%  of  final  energy  consumption, 
while  in  industry  it  represents  38.5%  (see  also 
Annex  8).  For  the  transport  sector,  this  share 
remains  negligible,  at  1.3%.  Further  progress  in 
electrification across sectors is required in order to 
cost-effectively  decarbonise  the  economy  and 
bring 
renewable 
generation to consumers. 

the  benefits  of  affordable 

Renewables and long-term contracts 

Slovenia's  renewable  energy  development  is 
hindered  by  lack  of  growth  in  wind  power 
lengthy  permitting  procedures, 
capacity, 
despite  efforts  to  introduce  new  support 
schemes, digitalize permitting processes, and 
provide  state  aid to  stimulate investment  in 
renewables.  

In  2025,  39.3%  of  Slovenia’s  electricity  mix 
was  supplied  by  renewable  energy  sources 
(hydro,  wind,  solar,  biomass),  compared  to 
47%  in  the  EU  overall (245).  Hydro  represented 
30.1%,  biomass  1.8%  and  solar  9.6%  of  the 
electricity mix. 

Despite  the  positive  trends,  the  number  of 
consumers  supplied  on  the  basis  of  dynamic 
pricing  remains  small  and  still  makes  up  an 
insignificant  share  of  the  retail  market.  32%  of 
household  consumers  remain  on  regulated  fixed-
price  contracts.  The  switching  rate  of  household 
consumers  in  2024  is  0.5%,  unchanged  from  the 

(242) ELES_RNDS_okt-2025_digital_spread.pdf. 

(244) Report on the energy situation in Slovenia, AGEN 2024 

(243) Report on the energy situation in Slovenia, AGEN 2024 

report), p. 30. 

report. 

(245)Eurostat 2026. 

83 

 
 
 
Graph A9.3: Slovenia’s installed renewable 
capacity vs electricity generation mix 

assessment of potential solar and wind areas was 
completed  in  2023.  The  assessment  is  being 
updated  and  is  expected  to  be  completed  in 
summer  2026  in  order  to  meet  Slovenia’s  NECP 
objectives.  The  results  will  feed  into  a  thematic 
spatial action plan under the Spatial Planning Act, 
which  will  require  a  strategic  environmental 
impact assessment and is therefore unlikely to be 
adopted before 2028. Slovenia has become a part 
of  two  Important  Projects  of  Common  European 
Interest  in  the  field  of  hydrogen:  on  hydrogen 
technologies and industrial deployment. 

to  simplify 

Spatial  planning  remains  one  of  the  main 
bottlenecks  in  the  permitting  process,  as 
national  and  municipal  plans  often  lag  behind 
project  needs.  And  although  the  Spatial  Planning 
Act  was  recently  amended 
the 
procedure, comprehensive local plans can still take 
many years to finalise. Slovenia provides financial 
compensation  to  municipalities  hosting  renewable 
projects  through  an  annual  production-based  fee 
and  a  one-off  government-funded  payment  for 
new  installations,  but  members  of  the  public  are 
not  direct  beneficiaries.  Although  community 
initiatives,  particularly  for  solar,  are 
energy 
supported  at 
level,  wind  projects  face 
significant  opposition  from  residents,  parts  of  the 
political  sector  and  NGOs,  and  Slovenia  currently 
has  no  schemes  that  directly  share  project 
benefits with local communities. Public awareness-
raising  campaigns  promoting  renewable  energy 
were launched in the first half of last year and are 
expected to continue in the coming year. 

local 

to 

Despite  undertaking  a  number  of  permitting 
reforms  between  2023  and  2024,  Slovenia 
continues 
face  systemic  permitting 
bottlenecks  for  wind.  Slovenia’s  2025  final 
NECP  states  that  the  country  plans  to  designate 
renewable  acceleration  areas  by  preparing  a 
thematic  action  programme  for  potential  priority 
areas  for  solar  and  wind  energy,  but  it  does  not 
provide any further details. The programme needs 
to  be  underpinned  by  a  strategic 
impact 
assessment,  which  may  make 
it  difficult  to 
implement the revised Renewable Energy Directive 
promptly.  The  NECP  also  proposes  to  remove 
administrative  obstacles  to  permitting  procedures 
by  setting  up  and  detailing  the  role  of  a  single 
point of contact. 

Electricity mix is given as net electricity generation (gross 
electricity production minus consumption of power stations’ 
auxiliary services). Electricity produced in pumped hydro 
plants is excluded from total net electricity production, as it 
was previously counted as electricity produced from another 
source. 
“Other” includes renewable municipal waste, solid biofuels, 
liquid biofuels, and biogas. 
Source: IRENA, Eurostat 

Slovenia  has  recorded  no  increase  in  wind 
power  capacity  in  the  past  decade  and  has 
maintained  modest  goals  for  increasing  its 
share of renewable energy by 2030. Slovenia’s 
total  renewable  energy  capacity  in  2025  was 
2 781 MW  (year-on-year 
increase  of  4,3%  – 
considerably  below  the  12%  in  2024) (246).  This 
was  driven  by  147 MW  of  newly  installed  solar 
photovoltaic capacity,  resulting in a total  installed 
capacity  of  1 568MW  in  2024.  For  utility-scale 
solar  photovoltaics,  the  grid  connection  waiting 
time is  1-4  years.  By  contrast,  the  situation  looks 
slightly better for small-scale photovoltaics, with a 
connection  time  of  3-12  months.  On  the  other 
hand,  the  wind  capacity  currently  deployed  in 
Slovenia remains insignificant (3 MW), with limited 
plans  for  its  deployment  by  2030.  In  addition, 
Slovenia’s  2030  renewable  energy  target  of  at 
least 33%, as part of its final NECP, falls short of 
the  46% 
the  European 
Commission.  By  2030,  Slovenia  aims  to  generate 
55% of its electricity from renewable sources. 

recommended  by 

Slovenia  has  begun  mapping  work  to 
designate  renewable  energy  priority  zones, 
is  slow,  and  wind  power 
but  progress 
continues  to  face  strong  local  opposition. 
Following  the  2025  CSR  on  designating  areas  for 
wind power installations and stepping up capacity 
building  for  permitting  at  local  level,  an  initial 

(246)2026 renewable capacity statistics, IRENA. 

84 

 
 
 
the 

with 

strong 

To complement this, the eBuilding (eGraditev) 
system  (which  will  be  fully  operational  by 
2026 (247))  will  fully  digitalise  the  process 
both  of  obtaining  a  building  permit  and  of 
competent 
communication 
authorities  (with  a  few  exceptions).  On  the 
other hand, despite the legal improvements made, 
the installation of wind power plants is still being 
from 
delayed  by 
local  opposition 
inhabitants  and 
lengthy  municipal  permitting 
procedures.  Measures  to  involve  the  public  and 
share the benefits of projects with them, together 
with  targeted  training  and  the  boosting  of 
resources available to local authorities, could help 
speed  up  permit  processing  and  reduce  potential 
bottlenecks  in  the  system.  A  significant  limitation 
in Slovenia is that is not possible to apply for more 
than  one  permit  at  a  time,  as  each  permit  or 
approval  typically  requires  the  previous  one  to 
have been obtained first. 

the 

So far, Slovenia has not set up any auctions 
to  support  the  uptake  of  renewable  energy. 
Slovenia  lacks transparency  in  its  project  pipeline, 
as  it  has  not  published  a  long-term  auction 
schedule  containing  details  of 
timing, 
frequency and expected  capacity  for the next 3-5 
years.  Power  purchase  agreements  (PPAs)  are 
relatively  new  in  much  of  south-eastern  Europe, 
with  Slovenia  entering  the  market  for  the  first 
time  in  2023  to  supply  a  total  of  200 GWh  of 
electricity.  The  first  physical  PPA  was  signed  in 
October  2024,  with  a  duration  of  only  five  years. 
While  interest  in  the  market  is  growing  and  there 
is  potential  to  scale  up,  there  is  still  a  need  to 
legislation 
tackle  barriers  to  PPAs,  such  as 
restricting the construction and connection of new 
facilities.  Slovenia’s  final  updated  NECP  updates 
the  support  scheme  for 
the  promotion  of 
renewable  energy  by  introducing  new  forms  of 
incentive, 
promote 
renewable  energy  communities,  self-consumption, 
the  uptake  of  guarantees  of  origin,  and  power 
purchase  agreements.  The  support  scheme  is  due 
to  be  upgraded  once  every  three  years  (for  the 
next  time  in  2028)  in  order  to  contribute  at  least 
1%, or 500 GWh, annually to the share of RESs in 
gross final energy use, but no further details have 
been provided. 

including  measures 

to 

energy 

support 

schemes 

investment 

in  renewables, 

Slovenia has complemented the carbon price 
incentive of the EU emissions trading system 
that 
(ETS)  with  a  State  aid  scheme 
stimulates 
in 
the  2025  CSRs.  Slovenia’s 
accordance  with 
renewable 
cover 
electricity  generation  from  solar  power,  wind, 
biomethane,  energy  storage  and  renewable  heat 
and  are  implemented  under  a  State  aid  scheme 
approved  by  the  European  Commission  within the 
temporary  crisis  and  transition  framework  (in 
effect  until  the  end  of  2025),  with  a  budget  of 
about EUR 150 million. The scheme provides direct 
grants to stimulate investment in decarbonisation, 
particularly  renewable  capacity,  storage,  and  heat 
technologies.  The  Slovenian  authorities  are 
preparing  a  new  support  scheme,  currently  pre-
notified to the Commission, to succeed the existing 
arrangement  and  align  it  with  the  post-2025  EU 
State  aid  framework.  At  the  same  time,  the 
government is finalising a new act on renewables 
that  will  create  the  legal  basis  for  renewable 
energy 
framework, 
streamline permitting and planning processes and 
introduce  a  single  point  of  contact  to  facilitate 
project approvals and grid connections (248). 

support  under  a  new 

Energy efficiency 

Few  measures  have  been  taken  by  Slovenia 
to  address  concerns  highlighted 
in  the 
country-specific  recommendation  on  energy 
efficiency.  

In  2024  final  energy  consumption  (FEC) 
increased  by  2.5%,  compared  to  2023,  to 
4.59 Mtoe, reversing the declining trend since 
2019. Slovenia’s FEC in 2024 was however in line 
with  the  trajectory  to  its  expected  2030  national 
contribution of 4.319 Mtoe. A decrease in FEC can 
be observed across three sectors: in 2024 industry 
displayed a 18.2%, services a 4.0% and residential 
a  7.1%  reduction  compared  to  2019,  while  in the 
transport  sector  energy  consumption  increased 
slightly, by + 0.1% (see also Annex 8). 

Slovenia  deploys  a  supportive,  but  limited, 
national  financing  framework  that  mobilises 

(247) Gradual introduction of e-commerce in the field of 

(248) Act on the promotion of the use of renewable energy sources 

construction of buildings. 

(ZSROVE). 

85 

 
 
 
and 

efficiency 

investment 

energy 
is 
composed  mainly  of  grants  and  soft  loans 
(see also Annex 8). In 2024, Slovenia continued 
to  implement  its  eco-fund  and  energy  savings 
obligation schemes. In terms of sectors supported, 
Slovenia  tends  to  take  a  multisectoral  approach, 
with  some  focus  on  public  and  residential 
buildings, including by implementing different EU-
supported programmes,  such  as  the  recovery  and 
resilience plan (with energy renovation of buildings 
than  80 000 m2  under  way  and 
of  more 
38 000 m2  of  upgrades  of  ventilation  and  cooling 
systems completed) and the 2021-2027 cohesion 
policy programme. 

by 

to 

(such 

savings 

technical 

in  Slovenia’s  2020 

The  2025  CSRs  for  Slovenia  highlighted  the 
implement  energy  efficiency 
need 
measures, particularly in the building sector, 
more  quickly.  Between  2019  and  2024,  the 
decrease  observed  in  residential  FEC  was  driven 
as 
primarily 
renovations). The variation (decrease) in residential 
FEC referred to above is in line with the objectives 
long-term  renovation 
set 
strategy, which forecast a 17% reduction in energy 
consumption  between  2020  and  2030.  Slovenia 
submitted  its  draft  national  building  renovation 
plan, indicating a clear commitment to setting up a 
predictable  pathway  towards  an  energy-efficient 
and decarbonised building stock, which is currently 
responsible  for  30.5%  of  total  final  energy 
consumption,  and  therefore  acknowledging  the 
importance  of  the  sector 
increasing  the 
country’s  energy  security.  Heating  and  cooling 
account  for  77%  of  the  country’s  residential  final 
energy  consumption,  with  renewables  supplying 
34%  of  the  total  energy  used  for  heating  and 
cooling in all sectors. 

in 

Security of supply and diversification 

Despite having made progress in renewables, 
Slovenia’s  overall  energy  mix 
in  2024 
remained  fairly  reliant  on  fossil  fuels.  Oil 
accounted  for  35.5%,  coal  12%  and  natural  gas 
inland  consumption (249),  while 
11%  of  gross 
nuclear  heat  contributed  21%  and  renewables 
(and biofuels) 19.7% (vs 20.2% in 2023) (250).  

reactor 

Until  2030  the  development  of  Slovenia’s 
electricity  generation  sector  will  remain 
largely reliant on a mix of renewable energy 
sources  and  nuclear  power,  while  gradually 
reducing  reliance  on  coal.  Slovenia  has  a 
696 MWe  Westinghouse  nuclear 
in 
operation,  Krško  1,  which  is  jointly  owned  by 
Croatia.  At  strategic  level,  Slovenia  supports  the 
continued  use  of  nuclear  energy  for  electricity 
production,  including  the  potential  construction  of 
a  new  nuclear  power  plant  and  small  modular 
reactors (SMRs), under the Resolution on the long-
term  peaceful  use  of  nuclear  energy  –  Nuclear 
energy for the future of Slovenia, adopted in May 
2024.  The  Slovenian  parliament  cancelled  the 
consultative referendum on the construction of the 
new  Krško  2  nuclear  power  plant.  In  June  2025 
Slovenia  began  a  three-month  public  consultation 
as part of the planning process before potentially 
constructing a second reactor. Technical feasibility 
studies  completed  in  August  2025  confirmed  the 
suitability of both the US company Westinghouse’s 
and the French company EDF’s technology for the 
project.  At 
the 
the 
government  adopted  a 
preparation  of  a  national  spatial  plan  for  the 
Krško 2 nuclear power plant, which was drawn up 
on  the  basis  of  an  initiative  of  the  ministry 
responsible  for  energy  –  the  Ministry  of  the 
Environment,  Climate  and  Energy  –  and  of  an 
analysis  of  the  policies  and  data  of  spatial 
planning  authorities,  municipalities  and  proposals 
from the public (251). 

its  session  on  17 February, 
resolution  on 

In  response to  rising  energy prices  following 
in  the  Middle  East, 
the  regional  crisis 
Slovenia has reduced excise duties on petrol 
diesel 
(€0.499→€0.475/litre), 
(€0.439→€0.363/litre),  and 
oil 
(€0.177→€0.112/litre),  while  suspending  the 
CO₂  tax  until  4  May  2026.  Slovenia  has  also 
released  30  million  litres  of  diesel  from  state 
reserves,  imposed  fuel  rationing,  and  accelerated 
subsidies for heat pumps and renewables. 

heating 

(249) Electricity and heat are excluded to avoid double counting, 

focusing on primary energy sources. 

(250) Gross inland consumption (Eurostat). 

(251) Decision on the preparation of the national spatial plan 

(NSP) for the Krško 2 nuclear power plant. 

86 

 
 
 
Fossil fuel subsidies 

In  2024,  environmentally  harmful ([1])  fossil 
fuel  subsidies  without  a  planned  phase  out 
represented  0.10% ([2])  of 
before  2030 
Slovenia’s  GDP ([3]).  However,  Slovenia’s  2023 
effective  carbon  rate ([5])  averaged  EUR 81.74  per 
tonne  of  CO₂  –  slightly  below  the  EU  weighted 
mean of EUR 84.80 (252).  

([1])  Explicit fossil fuel subsidies (e.g. direct transfers) and implicit 
fossil fuel subsidies (i.e. tax expenditures linked to forgone 
tax revenues that have an identifiable fiscal impact for the 
central budget) that support fossil fuel energy production, 
transmission and/or consumption.  

([2])  European Commission calculation based on underlying data 
from the Study on energy subsidies and other government 
interventions in the EU – 2025 edition, Enerdata. 

([3])  2024 gross domestic product at market prices, Eurostat. 

([5])  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. 

(252) OECD (2024), Pricing Greenhouse Gas Emissions 2024. 

87 

 
 
 
ANNEX 10: CLIMATE ADAPTATION, PREPAREDNESS AND ENVIRONMENT 

and 

Slovenia 

adaptation 

governance, 

established 

environmental  measures. 

While 
an 
has 
overarching legal and governance framework 
for  resilience  and  climate  adaptation,  and 
implemented  some  water  saving  reforms,  a 
number of challenges remain. For Slovenia, the 
2025 CSRs highlighted challenges in strengthening 
climate  and  water  resilience,  environmental  and 
climate 
the 
implementation  of  targeted  climate  adaptation 
and 
Remaining 
challenges  include  effective  implementation  of 
resilience and adaptation policies – particularly  at 
the sectoral, regional and local levels – the need to 
scale  up  investment  in  adaptation,  progress  in 
closing  the  climate  insurance  protection  gap, 
ensuring  climate 
infrastructure 
(notably transport infrastructure), and accelerating 
the  uptake  of  nature-based  solutions.  In  terms  of 
water  resilience,  while  some measures  have been 
taken  to  reduce  water  abstraction,  pressure 
remains particularly strong on rivers that continue 
to  suffer  from  fragmented  ecosystems,  poor 
ecological  status  of  surface  water  and  risk  of 
floods. No plans have been adopted to make rivers 
free  flowing  by  removing  obsolete  barriers  that 
hinder river continuity. 

resilience  of 

Climate adaptation and preparedness 

Slovenia is highly exposed to climate change 
impacts  with  significant  climate  adaptation 
investment  needs  across  sectors.  Slovenia 
belongs  to  one  of  the  three  regions  identified  as 
hotspots  of  climate 
risks,  namely  southern 
Europe (253), and is particularly vulnerable to heavy 
floods,  heatwaves,  droughts  and  forest  fires (254). 
Extreme  weather  events,  such  as  the  devastating 
floods 
triggered  multiple 
landslides (255) and caused damage to almost 90% 
of all municipalities in Slovenia (256), have imposed 
substantial  fiscal  pressure  on  Slovenia.  In  2024 
Slovenia’s heat-related mortality rate was 132 per 

in  2023  which 

(253) The three regions are Southern Europe, low-lying coastal 
regions and EU outermost regions. EEA, 2024, European 
Climate Risk Assessment, Link. 

(254) 4EC, 2025, Commission Staff Working Document 2025 
Country report -Slovenia, COM(2025), 211 final, Link. 

(255) EEA, 2024, European Climate Risk Assessment, Link. 

(256) EEA, 2024, European Climate Risk Assessment, Link. 

million (257).  A  recent  study  commissioned  by  DG 
CLIMA (258)  estimates  that  Slovenia  will  need  to 
invest almost EUR 297 million per year up to 2050 
(0.4%  of  annual  GDP,  below  the  EU  average  of 
0.5%): 
infrastructure 
foremost 
retrofitting and reinforcement (more than 57% of 
the  total),  followed  by  ecosystems  restorations 
(around  16%  of  the  total)  and  food  adaptation 
(around 12.5% of the total) (259). 

first  and 

in 

climate 

targeted 

Slovenia is taking some measures to improve 
adaptation 
environmental 
and 
the 
governance.  However,  accelerating 
implementation 
climate 
of 
adaptation  and  environmental  measures 
remains  an  issue  at  all  levels.  In  2025, 
Slovenia  significantly  strengthened  its  climate 
adaptation  governance  framework  through  the 
adoption  of  the  new  Climate  Act  (PoZ).  This  Act 
created  a 
for 
adaptation. It mandated the preparation of a new 
national  adaptation  strategy,  the  development  of 
climate  vulnerability  and  risk  assessments  across 
10  priority  sectors,  and  the  creation  of  regional 
adaptation  action  plans  identifying  vulnerabilities 
in given regions based on their specificities. While 
a  comprehensive  and  a  legally  binding  policy 
the  actual 
framework 
implementation,  monitoring  and  evaluation  are  at 
the beginning of the process. 

comprehensive 

legal  basis 

in  place, 

is  now 

on 

climate 
capacity 
Administrative 
adaptation  at  national,  local  and  regional 
level  are  currently 
insufficient.  However, 
Slovenia  has  launched  the  LIFE4ADAPT  project 
to  strengthen  national  climate 
(2025-2032) 
adaptation by improving climate data and services, 
governance  and  coordination  across  sectors  and 
different  levels  of  government.  It  will  support  the 

(257) Janoš, et al. (2025). Heat-related mortality in Europe during 

2024 and health emergency forecasting to reduce 
preventable deaths. Link. 

(258) European Commission (2026), Assessment of EU and 

Member States adaptation investment needs, Table 25, Link. 
The study provides detailed estimates of adaptation 
investment needs at the level of the EU and individual 
Member States per type of measure. It relies on a common 
methodology that makes estimates comparable across the 
EU. Four accompanying methodological reports provide a 
detailed description of how the results were estimated to 
ensure full transparency. 

(259)Typical investments in ecosystems include soil restoration, 
wildfire prevention, biodiversity protection and coastal 
ecosystems restorations. 

88 

 
 
 
 
 
implementation  of  Slovenia’s  adaptation  strategy 
capacity  building,  pilot  adaptation 
through 
measures and enhanced support for municipalities 
and  vulnerable  sectors (260).  There  is  further  work 
to  be  done  to  ensure  that  adaptation  is  better 
incorporated  into  policies  across  ministries.  MECE 
is currently supporting other ministries to carry out 
their  vulnerability  assessments  as  part  of  the 
risk  assessments  work  under  PoZ. 
sectoral 
However,  this  work  is  delayed.  At  the  subnational 
level,  MECE  has  established  a  public  partnership 
with  the  Association  of  Municipalities  of  Slovenia 
that  provides 
to  operate  a  Climate  Office 
municipalities  with  expert  support,  guidance, 
training  and  tools  to  plan  and  implement  climate 
adaptation  measures  and  integrate  climate  risks 
into  local  decision-making (261).  Furthermore,  the 
regional  action  plans  for  adaptation,  which  will 
align  strategic  planning  between  national  to 
subnational levels (262), have not yet been drafted. 
The  share  of  Slovenia’s  population  covered by  EU 
Covenant of Mayors signatories has been steadily 
increasing and stood at 23.41% (vs EU27: 34%) in 
2024.  Furthermore,  30%  of  signatories  have 
submitted  a  sustainable  energy  and  action  plan 
(SECAP)  on  time,  and  4%  of  signatories  have 
submitted  at  least  one  monitoring  report  within 
the  recommended  timeframe (263).  While 
this 
indicates a growing commitment among Slovenian 
municipalities to increase climate resilience, it also 
shows  that  implementation  of  policies  is  lagging 
behind at the local level. 

Climate  risks  have  a  direct  and  significant 
effect  on  Slovenia’s  economy,  while  the 
insurance  coverage  remains  low.  The  latest 
studies  show  that  extreme  weather  events  are 
likely  to  have  a  prolonged  and  increasing  impact 
on  economic  activity  in  Slovenia (264).  Slovenia 
belongs  to  a  group  of  countries  with  the  highest 
share  of  natural  disaster  damages  in  relation  to 
GDP. In August 2023 alone, flash floods caused an 
estimated 
damage, 
corresponding  to  16%  of  national  GDP.  At  the 
same time, Slovenia has one of the lowest rates of 

EUR 10 

billion 

of 

(260) Republika Slovenija News, Link. 

(261) Republika Slovenija News, Link. 

(262) The Climate Act, Article 15, Link. 

(263) European Commission, Link. 

insurance coverage against weather- and climate-
related  extreme  events  in  the  EU  (3%  vs  EU27: 
19%). For the two highest risks (floods and coastal 
floods) (265)  it  is  not  mandatory  to  have  an 
insurance coverage, while in the case of a disaster 
the  compensation  is  on  an  ad  hoc  basis.  At  the 
moment 
insurance 
no 
scheme (266)  in  place  which  could  help  improve 
insurance  coverage  and  reduce  the  insurance 
protection gap (267). In 2025, losses of gross value 
added  (GVA)  in  Slovenia  were  at  -142.73  million 
euros,  which  is  a  share  of  -0.24%  of  Slovenia’s 
GVA in 2024 (268). 

national 

there 

is 

Climate proofing has not been systematically 
applied across sectors and key infrastructure 
so  far.  Slovenia  has  identified  the  energy  sector 
as  being  moderately  vulnerable  in  the  current 
climatic  conditions.  However,  the  sector  contains 
critical  elements  whose  outage  could  lead  to 
large-scale  supply  disruptions  and  significant 
economic and social consequences. There are also 
marked  regional  differences  in  exposure  and  the 
degree of vulnerability: the Notranjska region is at 
greater  risk  from  frost,  the  southwest  from  fires, 
and  the  east  of  the  country  to  a  faster  rise  in 
temperatures.  According  to  the  Slovenian  climate 
vulnerability  and  risk  assessment  for  the  energy 
sector, the greatest  threat to the energy sector is 
posed  by  floods,  which  threaten  fuel  storage 
facilities, 
electricity 
distribution networks and other elements of supply 
chains.  Significant  risks  are  also  posed  by  fire, 
storms  and  windbreaks,  frost  and  wet  snow,  as 
well as heat waves, which affect the efficiency of 
devices  and  increase  energy  consumption  for 
cooling.  A  national  study  finds  that  the  weighted 
overall  vulnerability  score  of  the  energy  sector  is 
around 2.3 on a scale of 1 to 5, with the electricity 
subsector having the highest vulnerability (around 

transformer 

stations, 

(265) The estimated protection gap score for 2025 is 2.5 for floods 
(medium high) and 1.5 for coastal floods (medium low). 
EIOPA, 2025, Dashboard on insurance protection for natural 
catastrophes. Link. 

(266) These types of schemes supplement private insurance cover 
for natural catastrophes by improving risk awareness and 
prevention, while increasing insurance capacity through more 
affordable (re)insurance. 

(267) ECB & EIOPA (2024), Towards a European system for natural 

catastrophe risk management, Link. 

(264) Usman, Parker & Vallat (2025), Dry-roasted NUTS: early 

estimates of the regional impact of 2025 extreme weather, 
Link. 

(268)Usman,  Parker  and  Vallat,  2025,  Dry-roasted  NUTS:  early 
estimates of the regional impact of 2025 extreme weather, 
Link. 

89 

 
 
 
for 

routes 

2.6) (269).  Systems 
for  electricity  distribution, 
photovoltaic  power  plants  and  transport  and 
logistics 
fuels  also  show  high 
vulnerability (270).  Slovenia’s  NECP  contains  few 
new concrete measures and objectives, beyond the 
objective  to  increase  the  share  of  underground 
distribution  grid  to  50%  (from  35%  currently)  to 
increase 
resilience  against  extreme  weather 
events (271). 

of 

mainstream  and  accelerate  the  uptake  of  such 
nature-based  solutions,  for  example  the  official 
preparation 
nature 
Slovenia’s 
restoration  plan  to  implement  the  EU  Nature 
Restoration  Regulation 
restore 
ecosystems  by  2030  and  beyond) (274),  and 
government  guidelines  to  integrate  nature-based 
solutions into flood risk reduction projects (275). 

national 

(aiming 

to 

Furthermore,  the 
transport  vulnerability 
index  of  the  TEN-T  network  to  climate 
change has been assessed to be at a medium 
level  in  Slovenia.  This  is  mainly  driven  by  the 
lack  of  alternative  routes  on  the  TEN-T,  the  low 
interoperability  on  the  TEN-T,  and  the  lack  of 
trained  human  resources  on  the  network (272). 
Estimates  show  that  in  total  EUR 0.35  billion  will 
need to be invested until mid-century in the TEN-T, 
of  which  the  majority  should  be  in  railways 
(EUR 287  million)  and  roads  (EUR 61  million) (273). 
The  need  to  make  infrastructure  more  resilient  is 
recognised  both  in  the  NECP  and  in  the  National 
Strategy for transport development in preparation. 

There  is  scope  to  tap  into  nature-based 
solutions  more  widely  and  systematically. 
Nature-based solutions and prevention play  a key 
role  in  increasing  resilience.  So  far,  nature-based 
solutions have not been deployed at a large scale 
and widely across sectors in Slovenia. If used, they 
are  mostly  applied  in  the  context  of  pilot  or 
research projects (e.g. the NBS4RESILIENCE project 
for  climate  resilience)  or  flood  risk  management 
contexts. These are usually project-based, such as 
restoring 
the 
degraded forests through NBS in the RE-ENFORCE 
project  funded  under  Interreg  Central  Europe. 
However,  in  2025  certain  steps  were  taken  to 

cooperation  on 

transnational 

Water resilience 

and 

Slovenia  suffers  from  occasional  water 
scarcity and drought, which can become more 
severe during the summer season. Agriculture, 
(particularly 
water  utilities,  energy  production 
hydropower 
freshwater 
and 
nuclear) 
aquaculture are among the most water-dependent 
sectors. The national water exploitation index plus 
(WEI+) (276),  indicates  low  overall  pressure  due  to 
abundant 
resources. 
Slovenia  faces  a  moderate  risk  of  drought 
impact (277),  with 
regional 
disparities (278).  Water 
shortage  events  are 
becoming  more  frequent.  In  summer  2025,  a 
drought  hit  most  of  the  Slovenian  territory  with 
severe  impact  for  agricultural  production  and 
energy  production  from  hydropower  and  nuclear 
plants. 

some  persistent 

freshwater 

renewable 

Inefficiencies  in  water  management  persist 
in  Slovenia,  particularly  for  abstraction-
heavy  sectors  like  energy  and  agriculture. 
This  poses  competitiveness  risks,  especially 
during  peak  seasons.  Water  productivity (279) 
stood  at  EUR 49  per  m³  of  abstracted  water  in 
2023  (with  a  limited  increase  since  2018),  far 
below  the  EU-27  average  of  EUR 153  (2022)  per 

(269) Assessment of climate vulnerabilities and risks at national 

level for the energy sector, link. Chapter 7, Page 52. 

(270) Assessment of climate vulnerabilities and risks at national 

level for the energy sector, link. Chapter 7, Page 52. 

(271) Staff Working Document accompanying the EU-wide 

assessment of the final updated national energy and climate 
plans Delivering the Union’s 2030 energy and climate 
objectives, NECP assessment COM (2025/274 final) Link. 

(272) Support study on the climate adaptation and cross-border 

investment needs to realise the TEN-T network. Publications 
Office of the European Union, 2024. Link., Table 4.6. 

(273) Support study on the climate adaptation and cross-border 

investment needs to realise the TEN-T network. Publications 
Office of the European Union, 2024. Link., Table 4.28. 

(274) Republika Slovenija News, Link. 

(275) Republika Slovenija, Usmeritve za vkljucevanje NBS v 

projekte za zmanjsevanje poplavne ogrozenosti, Nov 2024, 
Link. 

(276) The WEI+ measures of how much water is being used 

compared with the total renewable freshwater resources 
available for a given territory and period. 

(277) JRC, European Drought Risk Atlas, Link. 

(278) Agricultural droughts, Okoljski kazalci, Link. 

(279) Water  productivity  is  a  metric  that  is  calculated  by  dividing 
GDP  (in  chain-linked  volume)  by  total  water  abstraction.  It 
indicates the average economic value (GDP) a Member State 
creates for each unit of water it takes from nature. 

90 

 
 
 
m³.  In  2023,  electricity  cooling  accounted  for 
76.1% of freshwater abstraction, with public water 
supply at 19.8 (280). Since 2014, water abstraction 
has been stable, but high compared to countries in 
the region, particularly in the energy sector, which 
remains  very  vulnerable  to  water  availability.  The 
water used for turbine drive in hydroelectric power 
plants  amounted  for  almost  all  water  use  in 
industry (281). To discourage excessive consumption 
of  drinking  water,  Slovenia  adopted  the  ‘Drinking 
Water Supply Act’ in April 2025. The act increases 
the  price  of  water  supply  by  50%  if  a  certain 
consumption  threshold  is  exceeded.  Furthermore, 
as  of  2026  a  new  methodology  for  calculating 
water abstraction fees for holders of water rights 
considers volume of permitted water use, duration, 
environmental and socio-economic impact. 

The  good  ecological  status  of  Slovenia’s 
surface  water  bodies  has  declined.  Compared 
the first River Basin Management Plan (RBMP) the 
share of surface water bodies classified as having 
good ecological status has decreased from 57.6% 
in  the  first  RBMP  to  48.7%  in  the  third  RBMP. 
Hydro-morphological  pressures  and  broader 
degradation  processes remain the  primary  factors 
contributing to surface water bodies not achieving 
good  ecological  status (282).  The  high  density  of 
barriers  and  obstacles (283)  on  Slovenia’s  larger 
rivers  like  the  Sava,  Drava  and  smaller  streams 
impacts  the  good  ecological  status  of  surface 
water. It isolates and fragments habitats, reduces 
the  migration  of  fish  species  and  blocks  the 
transport  of  sediments,  leading  to  an  increased 
risk  of  floods (284).  According  to  the  latest  river 
management plan, 19 out of 155 water bodies in 
Slovenia  are  heavily  modified.  Slovenia 
is 
addressing  the  need  to  give  more  space  to  rivers 
by  integrating  nature-based  solutions  into  flood 
protection  projects  where  possible  and  by 
implementing 
river 
restoration mostly funded by the LIFE programme 

promote 

projects 

that 

(280)EEA (2025). Water abstraction by source and economic 
sector in Europe. 

(281)About 100 billion m3 out of about 101 billion m3 of water 
used. Statistical Office of the Republic of Slovenia (2024). 
Exploitation of water in industry, 2024. Link. 

(282)Agencija Republike Slovenie za Okolje (2021), Chemical and 
ecological status of surface water bodies. Link. 

(283)AMBER, Adaptive Management of Barriers in European River. 

(284)Načrt upravljanja voda na vodnem območju Jadranskega 
morja za obdobje 2023-2027. 

and Cohesion Policy (285). While there is no or small 
information  about  plans  to  remove  obsolete 
barriers  to  rivers,  and  nature-based  solutions  as 
an  alternative  to  flood  protection  infrastructural 
projects  Slovenia  plans  to  reduce  the  knowledge 
gap  on  river  barriers  in  the  framework  of  the 
Nature  Restoration  Regulation 
implementation. 
Moreover, new hydropower projects in the pipeline 
could  put  further  strain  on  river  ecosystems.  By 
investing 
in  nature-based  solutions  and  free 
flowing  rivers,  Slovenia  could  generate  broad 
socio-economic  benefits,  including  enhanced  rural 
landscape  quality,  new  recreation  and  tourism 
opportunities,  strengthened 
job  creation, 
improved  water quality, better sediment transport 
and  protection  against  floods.  This  is  particularly 
urgent  following  the  tragic  floods  of  summer 
2023. 

local 

Freshwater  and  marine 
resources  are 
increasingly  affected  by  climate  change  and 
biodiversity  degradation  through  strain  on 
water  availability,  quality  and  warming 
water  temperatures 
in  northern  Adriatic 
the  vulnerability  of  marine 
heighten 
ecosystems. 
environmental 
Strengthened 
monitoring,  data  collection  and  fisheries  control 
support  early  detection  of  ecosystem  shifts  and 
help  safeguard  biodiversity  and  the  resilience  of 
sectors  dependent  on  healthy  freshwater,  coastal 
and marine environments. 

of 

drinking 

sustainability 

to  modernise 

continues 
and 

its 
Slovenia 
wastewater 
water 
infrastructures,  both  with  EU  and  national 
funds.  As  part  of  RRP  reforms,  Slovenia  adopted 
the Act on drinking water supply and collection and 
treatment  of  urban  wastewater  to  ensure  the 
long-term 
infrastructure 
investments,  to  upgrade  the  information  system 
and  to  increase  efficiency  in  water  management, 
including  by  allowing 
reuse  of  urban 
wastewater.  Compared  to  2020,  Slovenia  has 
increased  its  compliance  rate  with  the  Urban 
Waste  Water  Treatment  Directive  (91/271/EEC) 
reaching  65%  in  2022  (from  58%  in  2020). 
Despite  progress,  wastewater  remains  a  major 
pressure to the quality of water and Slovenia still 
has  a  significant  load  not  treated  in  line  with  the 

the 

(285)e.g. LIFE2Rivers, Life Restore for MDD, LifelineMDD, LIFE 
Stržen,,LIFE-IP NATURA  funded by the LIFE programme and 
Natura Mura, zaDravo, Kras.Re.Vita, VIPava by Cohesion Policy. 

91 

 
 
 
requirements  of  the  directive (286).  Consequently, 
compliance remains below the EU average, leaving 
many  agglomerations  without  an  adequate  level 
in  the 
of  wastewater  treatment,  particularly 
western 
the 
generated load is not compliant. 

region,  where  almost  half  of 

Slovenia’s  investments  in  the  water  sector 
do  not  yet  cover  its  needs.  The  annual 
investment needs for water reach EUR 701 million, 
while  investments  only  reach  EUR 441  million, 
with  the 
linked  to 
largest  part  of  the  gap 
wastewater  measures  (EUR 85  million) (287).  Even 
if  general  government  expenditure  has  increased 
for  wastewater  management  and  for  protection 
and  remediation  of  soil,  groundwater  and  surface 
water between 2021 and 2023 (288), a problem of 
absorption  capacity  persists,  and  projects  often 
face delays. This was notably the case of the RRP. 

Nature restoration 

Slovenia’s  economy  is  exposed  to  nature 
loss.  Roughly  one  third  of  GVA  relies  directly  on 
the ecosystem, comparable to the EU average (289). 
This  vulnerability  is  particularly  acute  in  the 
tourism  and  food  sectors,  which  are  directly 
dependent  on  healthy  ecosystems.  Other  key 
sectors  like  forestry,  agriculture,  healthcare  and 
construction  are  also  heavily  dependent  on 
ecosystems (290).  The  degradation  of  ecosystems 
might  directly  impact  the  competitiveness  of 
companies working in these sectors. 

Slovenia’s  habitats  continue  to  degrade, 
reducing the country’s climate resilience and 
its  economy.  While  40.5%  of 
impacting 
Slovenia’s  territory  is  designated  as  a  protected 
area, there are substantial pressures on Slovenia’s 
biodiversity.  Grasslands  are  among  the  most 
threatened  habitats  in  Slovenia,  mainly  due  to 
changes in agricultural practices like abandonment 

and  intensification.  Natural  water  bodies  quickly 
become  artificially  modified.  Wetlands  and 
peatlands  that  deliver  essential  water-retention 
and  climate-regulation  functions  are  also  at  risk. 
The protection of those habitats and the reduction 
of  hydro-morphological  pressures  are  key  for  the 
country‘s economic sustainability.  

Nature  degradation  is  further  amplified  by 
invasive  alien  species.  In  2024,  21  invasive 
alien  species  of  Union  concern  were  recorded  in 
Slovenia (291), inflicting damages for about EUR 80 
million  up  to  2020,  primarily  affecting  agriculture 
and  public  health (292).  At 
time, 
eutrophication  -  a  threat  to  biodiversity  and 
ecosystem 
shown  partial 
improvement, with the areas at risk declining from 
93%  to  76%  since  2005 (293).  Nitrogen  deposition 
from  agriculture  and 
combustion 
remains a critical driver of this degradation. 

the  same 

industrial 

integrity 

-  has 

Slovenia’s  biodiversity  gap  continues  to  be 
substantial.  The  biodiversity  gap  reached  an 
estimated  EUR 202  million  annual  shortfall  in 
to  conservation  priorities. 
funding  dedicated 
Despite significant EU  funding available (cohesion 
policy,  RRP,  CAP,  etc.),  this  shortfall  underscores 
the  need  for  increased  investment  in  habitat 
restoration (294). 

Sustainable agriculture and land use 

Slovenia’s  carbon  removals  are  expected  to 
exceed its 2030 target for land use, land-use 
change and forestry (LULUCF).  Slovenia is one 
of  the  most  heavily  forested  countries  in  the  EU, 
with  approximately  58%  of  its  total  surface  area 
being 
forests  are 
responsible  for  a  major  share  of  these  removals. 
To meet its 2030 LULUCF target, additional carbon 
removals  of  0.2 million  tonnes  of  CO2  equivalent 

forested.  The 

country’s 

(286)UWWTD compliance (2022), internal documents. 

(287) 2025 Environmental Implementation Review, Country Report 

- SLOVENIA. 

(288) Environmental subsidies and similar transfers, 2023. 

(291) European Commission, 2025, Environmental Implementation 

Review, Slovenia Country Report. Link. 

(292) Economic  Cost  of  invasive  alien  species  across  Europe 
(2021),  NeoBiota  and  Report  ‘Update  of  the  costs  of  not 
implementing EU environmental law’ (2025). 

(289) Dataset from JRC, based on  The EU economy’s dependency 

(293) Eutrophication caused by atmospheric nitrogen deposition in 

on nature, JRC (2024). 

Europe. EEA (2024). 

(290) 40 JRC, The EU economy’s dependency on nature. Link. 

(294) Environmental Implementation Review, 2025. 

92 

 
 
 
(CO2-eq)  are  needed (295).  The  latest  available 
projections show an overachievement of the target 
by 6.5 Mt CO2eq for 2030 (296). 

Forest  management  plans  and  subsidies  for 
public  and  private  forests  are  the  key 
measure  influencing  net  emissions  trends. 
Around  80%  of  Slovenia’s  forests  are  privately 
owned,  making  management  challenging.  The 
state  supports  forest  owners  through  subsidies 
from  the  integral  budget  for  investments  in 
forests, the forest fund and the rural development 
programme.  These  funds  support  sustainable 
forest  management,  infrastructure,  restoration, 
equipment and timber processing, all implemented 
through  mandatory  forest  management  plans  for 
public  and  private  forests (297),  which  set  felling 
limits  and  guide  activities  such  as  reforestation 
adjustment (298). 
and 
composition 
Continued investments in healthy forests and soils 
are key to building resilient biobased product value 
chains  and  enabling  a  growing,  competitive  EU 
bioeconomy. 
in  the  monitoring 
system  for  net  removal  data  and  projections  will 
also  be  crucial  in  supporting  timely  and  effective 
action in the sector. 

Improvements 

species 

Slovenia  faces  environmental  and  public 
health  risks 
in  certain  regions  due  to 
persistent  agricultural  pollution  pressures 
and  rapid  transfer  of  contaminants 
in 
vulnerable  groundwater  systems,  especially 
in  areas  with  intensive  agricultural  use. 
Slovenia’s  functional  urban  area  expanded  more 
slowly  that  the  EU  average  between  2012  and 
2018 – increasing by 0.44% in cities and by 1.32% 
in  commuting  areas,  where  most  land  has  been 
taken  from  arable  land.  Land  take  and  the 
resilient 
associated  soil  sealing  causes 

less 

ecosystems,  decreased  carbon  sequestration,  and 
impaired flood protection (299). 

Water  quality  pressures  reamain  a  concern. 
Under the EU Nitrates Directive, 26% of Slovenia’s 
groundwater monitoring stations recorded average 
nitrate concentrations exceeding 25 mg/l (and 9% 
above 50 mg/l,  the EU threshold for safe drinking 
water)  between  2016  and  2019 (300).  This  trend 
underscores 
systemic  agricultural  pressures, 
confirmed  by  Slovenia’s  relatively  high  livestock 
density  –  1.01  livestock  units  per  hectare  in 
2020(301),  compared  to  the  EU  average  of  0.75. 
While  an  8%  reduction  in  agricultural  ammonia 
emissions  between  2018  and  2023  underscores 
improvements in emission control, nitrate pollution 
persists,  indicating  gaps  in  nutrient  management 
strategies (302). 

regulatory 

Pesticide  contamination  is  limited  for  rivers, 
lakes  and  soils  but  high  for  groundwater 
bodies.  While  only  12%  of  rivers  and  no  lakes 
exceeded 
thresholds  for  pesticide 
residues between 2018 and 2023 less than the EU 
average  of  27%  for  rivers  and  18%  for  lakes, 
Slovenia’s groundwater bodies are reported among 
the  most  affected  by  pesticides  in  the  EU,  with 
40% of them surpassing the threshold (303) (the EU 
average is  19%) (304).  Pesticides  not  only  threaten 
aquatic ecosystems  but  also  pose  long-term  risks 
to  human  health  through  contaminated  drinking 
water  and  food  chains.  Slovenia  ranks  relatively 
well for soil contamination, as the concentration of 
pesticides  exceeds  0.05 mg  kg  only  in  33%  of 
samples (305), less than most EU Member States. 

(299)Land take and land degradation in functional urban areas, 

Publications Office of the European Union, 2022, 

(300)Nitrate in groundwater in Europe, EEA (2025). 

(301)Livestock density index, Eurostat. 

(295) 44)  National LULUCF targets of the Member States in line 

(302)Ammonia emissions, Eurostat. 

with Regulation (EU) 2023/839 Link. 

(296) Climate action progress report 2025. Link. 

(297) These plans, developed by the Slovenia Forest Service and 
valid for 10 years, define allowable felling levels and 
management practices such as reforestation and tree 
species composition adjustment. 

(298)Slovenia’s Eight National Communication and Fifth Biennial 
Report under the United Nations Framework Convention on 
Climate Change, Page 164. Link. 

(303)Pesticides in rivers, lakes, and groundwater in Europe, EEA 
(2024). 

(304) National monitoring data show that exceedances in 
groundwater occur at a relatively small proportion of 
sampling sites (4.3% in 2024) and have been decreasing 
over time, indicating strong spatial variability and improving 
trends. 

(305)Pesticides residues in European agricultural soils, JRC 
Technical Report. 

93 

 
 
 
Table A10.1:Key Adaptation Indicators 

(1) EFFIS (European Forest Fire Information System). Link. 
(2) The climate protection gap refers to the share of non-insured economic losses caused by climate-related disasters, based on 
modelling of the risk from floods, wildfires, windstorms, and the insurance penetration rate. Scale: 0 (no protection gap) – 4 (very 
high gap). EIOPA, 2025, Dashboard on insurance protection gap for natural catastrophes. 
(3) 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. 
(4) 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). 
(5) Indicator refers to concentrations of nitrate (NO3) in groundwater, measured as milligrams per litre (mg NO3/L). Nitrate 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 is limited to 50 mg NO3/L to avoid threats to human health. 
(6) Net removals are expressed in negative figures, net emissions in positive figures. Reported data are from the 2025 
greenhouse gas inventory submission. 2030 value of net greenhouse gas removals as in Regulation (EU) 2023/839 – Annex IIa. 
Source: Eurostat, EEA, JRC 

94 

Climate adaptation and preparedness:EU-27201920202021202220232024latest dataDrought impact on ecosystems0.290.695.5855.480.26-2.76[area impacted by drought as % of total]Forest fires burned area (1)80            168          76            4 388       112          76            354 510     [burned area in ha. per year]Economic losses from extreme events207          10            -          173          10 243     33            40 452       [EUR million at constant 2022 prices]Insurance protection gap (2)---2              2              2               -[composite score between 0 and 4]Sub-national climate adaptation action12            17            21            24            23            23            34               [% of population covered by the EU Covenant of Mayors for Climate & Energy]Water resilience:EU-27201920202021202220232024latest dataWater Exploitation Index Plus, WEI+ (3)0.57         0.61         0.54         0.66         0.42         -4.53            [total water consumption as % of renewable freshwater resources]Water productivity46            41            48            56            49            -151[EUR per m3]Water abstractionWater abstraction by source (% from surface water)80.09%81.64%79.66%76.51%78.72%-Water abstraction by sectorAgricultureElectricity coolingManufactu-ringPublic water supplyMining and QuarryingConstru- ction 0.49%76.12%3.47%19.80%0.12%0.00%Status of water bodies (4)[% of water bodies in a good status]Surface water bodies (ecological)-----49%38%Groundwater bodies (quantitative)-----95%93%Nature restoration:EU-27201920202021202220232024latest dataEcosystem dependency---43%--44%[% of direct dependency]Protected area40.540.540.540.540.526.4[% of terrestrial protected areas]Invasive alien species (IAS)-----2129.2[number of IAS of Union concern]Damage cost of IAS----0.081.69[EUR billion]Eutrophication 298298295[AAE of area at risk of euthrophication]Sustainable agriculture and land use:EU-272012-20182018-2021latest dataYearly net land taken by country159          384          670            [ppm of total urban surface per country]Land conversion in functional urban area [% of total land taken from 2018-2021]Arable land35%Complex and mixed cultivation0%Forests29%Herbaceous vegetation associations3%Open spaces with little or no vegetation0%Pastures32%Permanent crops0%Water0%Wetlands0%201920202021202220232024latest dataNitrates in groundwater (5)14.814.915.115.315.5[mgNO₃/l]Livestock density1.01:0.75(number of livestock units per hectare of  utilised agricultural area)Ammonia emissions 97%98%97%97%97%-94%[% of total utilised agricultural area]Pesticide contamination on rivers and lakes water bodiesrivers12%27%[% of monitoring sites with pesticides exceeding thresholds, 2018-2023]lakes0%18%Pesticide contamination in soil 33%57%[% of samples with a concentration over 0.5 mg/Kg⁻¹]Net greenhouse gas removals from LULUCF (6)-4528.2-4336.9-4318.7-4218.6-4291.1--198 421 [ktCO₂-eq] 
 
      
 
FAIRNESS 
ANNEX 11: LABOUR MARKET 

labour  market  continues 

Slovenia’s 
to 
perform  well,  but  significant  structural 
challenges  weigh  on  productivity  and 
remains 
competitiveness.  Economic  growth 
constrained  by  labour  and  skills  shortages,  driven 
by  an  ageing  workforce  and  unattractive  working 
conditions  in  certain  sectors.  The  slow  adaptation 
of  the  workforce  to  the  digital  and  green 
transitions  and  continued  under-representation  of 
some  groups  in  the  labour  market,  particularly 
older and low-skilled workers, remain a challenge. 
Slovenia  is  progressing  rapidly  towards  its  2030 
employment 
target.  However,  unlocking 
untapped  potential,  tackling  skills  mismatches, 
further  integrating  foreign  workers  and  improving 
job  quality  will  be  key  to  addressing  pronounced 
labour  shortages  and  supporting  an  even  more 
inclusive  labour  market  and  a  thriving  economy. 
The  2025  country-specific  recommendations  for 
Slovenia  highlighted 
the 
country’s  attractiveness  for  foreign  workers  with 
advanced  skills  and  improve  working  conditions, 
particularly in the healthcare, social and long-term 
care and teaching sectors.  

the  need 

to  raise 

rate 

Graph A11.1: Key labour market indicators 

Source: Eurostat, LFS [lfsi_emp_a, une_rt_a, lfsi_neet_a, 
une_ltu_a, lfsi_emp_a]. 

The  labour  market  remains  robust  with  high 
employment  and  low  unemployment  but  is 
still  marked  by  structural  headwinds.  On  the 
back  of  a  moderate  economic  expansion,  the 
employment  rate  (20-64)  remained  at  its  record 

95 

high  of  78.3%  in  2025.  The  rate  remains  well 
above the EU average (76.2%), and Slovenia is on 
track  to  achieve  its  2030  national  employment 
rate  target  of  79.5%.  Employment  is  projected  to 
stagnate both  in  2026  and  in  2027 (306).  Regional 
disparities persist, with a gap of 3.1 pps in 2025 in 
employment  rates  between  West  Slovenia  (79.9 
%) and East Slovenia (76.8 %) (see Annex 18). The 
labour force participation rate, at 75.8% (15-64) in 
2025,  was  slightly  above  the  EU  average.  The 
unemployment rate edged up to 3.9% in 2025 but 
remains far below the EU average of 6%, with only 
limited regional differences. At 12.1% in 2025 (EU: 
15.2%),  the  youth  unemployment  rate  (15-24) 
remains  significantly  higher  than  that  of  the 
overall  population,  which  suggests  challenges  for 
this group transitioning from education to work. 

some 

growth 

hindering 

improvements, 

labour 
Despite 
shortages and skills mismatches still persist, 
affecting certain sectors in particular, which 
is 
and 
Slovenia’s 
competitiveness. The job vacancy rate remained 
stable but above the EU average in 2025 (2.2% vs 
2.1%). Although they have gradually declined from 
their  peak  in  2022,  vacancy  rates  remain  high  in 
the  private  sector  and  public  services.  There  are 
particularly  acute  pressures  in  construction,  a  key 
sector  for  the  green  transition,  followed  by  repair 
(307). 
and 
installation  of  machinery  activities 
Employers’  expectations  corroborate  these  tight 
conditions:  in  October  2025,  the  share  of  firms 
expecting 
their 
shortages 
production  was  higher  than  the  EU  average, 
reaching  36.5% in  services  (EU:  23.1%),  39.4% in 
industry  (EU:  17.5%)  and  60.8%  in  construction 
(EU:  27.5%).  Around  half  of  Slovenian  companies 
report  staff  shortages,  75%  of  which  are  large 
companies (308). Shortages are even more acute in 
the  public  sector,  particularly  in  healthcare,  long-
term  care  and  education.  80%  of  employers  in 
these  sectors  struggle  to  find  staff,  with  public 
administration  also  facing  difficulties,  at  50%. 
Significant  skills  gaps  across  various  sectors  are 
affecting both low- and medium-skilled jobs, such 
as  electricians,  carpenters,  construction  workers, 
chefs,  truck  drivers  and  nurses,  and  high-skilled 

labour 

limit 

to 

(306) European Commission, Spring Forecast for Slovenia, 2026. 

(307) European Commission, Business and Consumer Surveys.  

(308) Public employment services (PES) employment forecast.  

71727374757677787902468101214162019202020212022202320242025%%SIEmployment rate 20-64 (rhs)Activity rate 15-64 (rhs)Unemployment rate 15-74 (lhs)Long-term unemployment rate 15-74 (lhs)Youth unemployment rate 15-24 (lhs)NEET rate 15-29 (lhs) 
 
 
  
 
 
and 

fields 

education (309). 

occupations 
in  healthcare,  engineering  and 
The 
technical 
macroeconomic  skills  mismatch  was  19.9%  in 
2024, above the EU average of 19.2% (see Annex 
13).  This  highlights 
relatively  greater 
difficulties  people  with  low-  and  medium-level 
qualifications face in entering the labour market. 

the 

In  this  context,  the  low  labour  market 
participation of certain groups weighs on the 
country’s growth potential (310). Older and low-
skilled  workers,  young  people,  women  with  a 
foreign  background  and  persons  with  disabilities 
tend  to  have  relatively  lower  employment  rates 
than  the  overall  working-age  population.  They 
often  work  in  low-paid  jobs  with  unfavourable 
in 
working  conditions  and  are  often  caught 
inactivity  or  low-wage  traps  (311).  Despite  recent 
improvements,  the  employment  rate  for  older 
workers  (55-64)  remained  below  the  EU  average 
in 2025 (57.6% vs 66.4%), especially in the 60-64 
age group. Similarly, the percentage of adults with 
lower  qualifications  has  seen  a  significant 
increase,  from  47.4%  in  2020  to  54.9%  in  2024, 
yet it remains well below the EU average of 58.2% 
and  stagnated  at  the  same  level  in  2025.  Both 
long-term 
groups  also  face  higher  rates  of 
unemployment. 
(20-29) 
youth 
In 
employment  exceeded  the  EU  average,  and  the 
share of young people neither in employment nor 
in  education  and  training  remained  among  the 
lowest  in  the  EU.  There  is  still  an  ongoing 
challenge in further aligning the education system 
with the needs of the labour market, speeding up 
the  completion  of  studies,  and  encouraging 
apprenticeships (312)  (see Annex  13).  The disability 
employment gap  has  narrowed  significantly,  from 
21.7 pps in 2020 to 14.2 pps in 2024 (EU: 24 pps) 
and  is  among  the  lowest  in  the  EU.  However,  in 
2025, the gap so a slight uptick to 15.7 pps.  

2025, 

Various  measures  are  being  taken  to  tackle 
the  challenges  described  above (313).  The 

(309) Skills intelligence material provided by AL network, Cedefop 

and PES. 

(310) CSR 2025.5.1 Address labour shortages by stepping up the 

provision and acquisition of skills and competences, including 
basic skills among pupils and those relevant for the green 
and digital transition. 

(311) See Proposal for a Joint Employment Report 2026.  

(312) IMAD, Quality of Life in Slovenia-Development Report 2025. 

(i) 

to: 

are 

reduce 

European  Social  Fund  Plus  (ESF+)  supports  active 
labour  market  measures,  focusing  on  young 
people  and  vulnerable  groups,  such  as  older 
workers,  low-skilled  people,  people  in  long-term 
unemployment  and  migrants.  Using  forecasts  by 
the  Labour  Market  Platform,  co-financed  by  the 
ESF+,  the  government  plans  to  tailor  existing 
active  labour  market  programmes  even  more  to 
address skills shortages. In January 2026, Slovenia 
adopted  the  Guidelines  for  Implementing  Active 
Labour  Market  Policy  for  2026–2030.  The  main 
objectives 
long-term 
unemployment;  (ii)  accelerate  the  activation  of 
unemployed  people,  especially  those  over  50, 
people  with  lower  levels  of  education,  and  people 
receiving  social  assistance;  (iii)  help  young  people 
(under  29)  find  employment  faster  under  the 
Youth  Guarantee;  and  (iv)  boost  skills  to  meet 
labour  market  needs.  The  2025  pension  reform 
(see Annex 12) and changes to the Labour Market 
Regulation  Act  aim  to  extend  working  lives  and 
reduce  the  gap  between  the  age  at  which  people 
stop  working  and  the  legal  retirement  age.  The 
Recovery 
supports 
workplace  adaptations  for  people  with  disabilities 
and  youth  employment  transitions:  approximately 
1 950  unemployed 
secured 
permanent  contracts  between  2022  and  2024. 
There  is  scope  for  further  action  to  ensure 
accessible  and  systemic  early  occupational 
activation to  address  the challenges  of  an  ageing 
workforce.  

Resilience 

Facility 

people 

young 

and 

Attracting  and  retaining  foreign  talent, 
including  highly  skilled  workers,  could  help 
counter  the  effects  of  adverse  demographic 
trends  and  ease  labour  shortages (314).  It  is 
essential to continue activating under-represented 
groups  and  improving  training.  However,  greater 
reliance on legal migration could help close labour 
and  skills  gaps,  in  particular  through  improved 
skills  recognition  and  more  effective  integration 
policies.  In  this  context,  Slovenia  has  steadily 
increased  the  number  of  work  permits  issued  to 
non-EU  nationals,  who  accounted  for  16%  of  the 
workforce in 2025 and are projected to reach 26% 
by  2030.  These  workers,  mainly  from  former 
Yugoslav  republics,  predominantly  work  in  low-
wage, 
as 
construction,  accommodation  and  food  services, 

labour-intensive 

sectors, 

such 

(313) CSR 2025.5.2. Boost lifelong learning and training, especially 

(314) CSR 2025.5.3. Raise Slovenia’s attractiveness for foreign 

for low-skilled and older workers. 

workers with advanced skills. 

96 

 
 
 
housing, 

procedures 

and transport (315). Only around one third of these 
workers  have  post-secondary  education,  leaving 
them more exposed to material disadvantage than 
Slovenian  nationals (see  Annex  12).  In  2024  and 
early  2025,  to  support 
integration,  Slovenia 
introduced  free  language  courses,  information 
points for foreigners and a single permit system to 
streamline  work  and  residence  authorisations. 
Nevertheless, ongoing challenges remain in further 
and 
permit 
accelerating  work 
improving 
healthcare, 
to 
access 
education,  diploma  recognition,  childcare  and 
pension  rights,  alongside  promoting more  positive 
attitudes towards migrants. Moreover, the absence 
of comprehensive studies on integration outcomes 
limits  the  possibility  to  assess  migrants’  effective 
participation  in  the  labour  market  and  society.  At 
the  same  time,  boosting  competitiveness  will 
require  a  marked  improvement  of  the  country’s 
capacity to attract and retain highly skilled foreign 
talent, especially in high-growth areas such as ICT 
and 
and 
mathematics  (STEM).  Slovenia  is  one  of  the  less 
attractive  Member  States  for  highly  qualified 
workers (316),  reflecting  factors  such  as  income 
levels,  low  digitalisation  and  workplace  inclusion. 
Recent  steps  have  begun  to  yield  results.  These 
include 
skilled 
tax 
professional 
professionals, 
experience  and  facilitated  mobility  under  the 
revised Foreigners Act in line with the EU Blue Card 
Directive.  While  these  measures  led  to  a  50% 
increase in EU Blue Card permits issued in the first 
10  months  of  2025  compared  with  2024,  overall 
numbers  remain  low  (119  EU  Blue  Card  permits 
issued in 2024) (317).  

engineering 

technology, 

recognition 

incentives 

science, 

highly 

for 

of 

Although  Slovenia  performs  well  across  job 
quality  indicators,  there  are  still  challenges, 
including  the  adequacy  of  wages,  working 
conditions  and  training (318).  The  share  of  low-
wage  earners  is  among  the  lowest  in  the  EU,  at 
9.4% in 2024, and the country also has one of the 
highest minimum-to-average wage ratios; it is one 
of the few Member States that met the objectives 
set  out  in  the  Directive  on  Adequate  Minimum 

in 

and 

stress. 

earnings, 

lies 
developing 

Wages (319).  The  challenge 
increasing 
transparent, 
average 
performance-based  pay-setting  systems,  and 
scaling  up  investment  in  training (320).  Working 
conditions  also  present  an  ongoing  challenge, 
including  ergonomics  and  the  prevention  of 
physical  strain:  one  third  of  employees  report 
musculoskeletal problems, alongside high levels of 
emotional 
Employee 
physical 
participation in decision-making processes at work 
and  flexibility  also  remain  limited,  with  only  40% 
involved,  below  the  EU  average (321). 
feeling 
Absenteeism  has  increased  over  the  past  decade 
and  remains  above  the  EU  average (322).  This  has 
been  driven  not  only  by  an  ageing  workforce  but 
also  by  weaknesses  in  work  organisation  and 
working  conditions,  pointing  to  challenges  at both 
company  and  national 
In  July  2024, 
Slovenia  adopted  measures  to  improve  working 
conditions  in  social  assistance  and  the  long-term 
these  measures  are 
care  sector.  However, 
temporary,  their  full  effects  are  expected  only  in 
2026,  and  they  appear  insufficient,  especially  in 
tackling  significant  staffing  shortages  in  the  care 
sector (see Annex 12).  

levels. 

Wage  developments  have  been  broadly  in 
line  with  EU  trends.  Nominal  wage  growth 
reached  6.2%  in  2024  and  7.9%  in  2025,  driven 
by  public  sector  wage  reform.  In  2026,  nominal 
wages are forecast to increase by 6.5%, primarily 
driven by the continued impact of the public sector 
wage  reform,  the  minimum  wage  hike,  and 
continued  tight  labour  supply.  In  turn,  real  wages 
grew by 3.8% in 2024 and 5.2% in 2025. In 2026, 
they  are  expected  to  grow  by  3%.  These  positive 
wage  developments  place  Slovenia  in  the  top 
quartile  of  Member  States  in  both  nominal  and 
real  terms.  The  rebound  in  real  wages  reflects 
both  remaining  robust  nominal  wage  growth  and 
inflation decreasing from 6.0% in 2023 to 2.5% in 
2025.  In  2026,  inflation  is  projected  to  average 
3.5%,  due to  rising  global  energy  and  food prices 
and continued pressure on food and service prices. 
The  statutory  minimum  wage  increased  by  19% 
between  January  2022  and  January  2025,  but 

(315) Imad, Autumn forecast of Economic Trends 2025. 

(316) IMAD, Quality of Life Report – Development Report 2025. 

(317) Eurostat, Migration and asylum in Europe – 2025 edition. 

(318) CSR 2025.5.4. Improve working conditions, particularly in the 

(319) See Directive (EU) 2022/2041 of the European Parliament 
and of the Council of 19 October 2022 on adequate 
minimum wages in the European Union PE/28/2022/REV/1 

(320) Ibid., p. 41 and 104. 

(321) Ibid. 

care and teaching sectors. 

(322) Health Insurance Institute of Slovenia, Annual Report 2024. 

97 

 
 
 
transition. Green  job  vacancies  are  expected  to 
make  up  40%  of  all  openings,  while  positions 
requiring  digital  skills  will  account  for  54% 
between  2025  and  2039.  Against  this  backdrop, 
upskilling  and  reskilling  of  the  workforce  is  far 
below  the  2030  target  of  60%  of  adults 
participating  in  learning  (see  Annex  13).  Slovenia 
also lags behind in digital skills among the broader 
population,  with  only  46.5%  of  individuals  aged 
16–74 having at least basic digital skills in 2025, 
compared with 60.4% in the EU. Low participation 
in digital skills development among low-skilled and 
older workers may further limit the contribution of 
lifelong  learning  in  helping  workers  adapt  to  the 
digital transition (see Annex 13). While several EU 
and  national  funded  trainings  to  improve  digital 
skills  are  underway  further  efforts  are  necessary 
to  ensure  wider  outreach  to  the  overall  adult 
population  including  vulnerable  groups.  Slovenia 
has  committed  to  tackling  this  challenge  also  by 
developing  a  comprehensive  skills  action  plan  by 
2026. 

A  continued  reliance  on  emission-intensive 
activities  further  hinders  the  transition  to 
climate  neutrality.  Although 
the  emission 
intensity  of  employment  decreased  by  24.1% 
between  2018  and  2023,  Slovenia  continues  to 
have  an  above-average  share  of  workers  in 
emission-intensive industries (4.6% vs EU: 3.5% in 
2025).  At  the  same  time,  employment  in  the 
environmental goods and services sector is slightly 
below the EU average (2.9% vs 3.1% in 2024). 

stagnated  in  real  terms. However,  in  January 
2026,  in  response  to  rising  living  costs  in  the 
previous  years,  it  was  raised  by  16%  to  EUR 
1 482. In addition, Slovenia has introduced a new 
mandatory  tax-free  Christmas  bonus  (i.e.  winter 
allowance) equal to about half the minimum wage, 
to be paid by mid-December each year. This aims 
to  ensure  all  workers  receive  a  guaranteed  extra 
payment  annually  and  improve  their  income, 
satisfaction  and  motivation.  Collective  bargaining 
in Slovenia is highly structured and takes place at 
both  industry  and  company  levels  in  the  private 
sector.  The  collective  bargaining  coverage  rate 
stood at 83.1% (2016); however, according to the 
data  transmitted  by  Slovenia  under  the  Directive 
on  Adequate  Minimum  Wages,  the  collective 
bargaining  coverage  rate  is  63.3%.  (2023).  Trade 
union  density  and  employer  organisation  density 
stood  at  15.3% 
(2016), 
respectively.  Slovenia  is  currently  consulting  the 
social  partners on measures to be included in the 
future  action  plan  on  promoting  collective 
bargaining.  

(2022)  and  72.5% 

Skills shortages hinder the green and digital 
transitions (323).  The  ICT  sector  remains  under-
developed,  with  ICT  specialists  accounting  for 
4.5%  of  those  in  total  employment  in  2024, 
compared to 5% in the EU, despite an increase of 
0.2 pps from 2024. Skills gaps are acute: in 2024, 
63.9%  of  companies  faced  a  shortage  of  ICT 
professionals,  one  of  the  highest  rates  in  the  EU. 
This  shortage,  along  with  the  low  level  of  digital 
skills  among  employees,  is  increasingly  hindering 
business  digitalisation (324).  Demand 
ICT 
specialists remains high across many sectors, with 
a  growing  focus  on  AI-related  profiles (325),  while 
supply  continues  to  lag  behind  demand  despite  a 
rising  number  of 
ICT  graduates. The  growing 
challenge  of  this  shortage  of  ICT  specialists  is 
reflected in the frequency of ICT security incidents, 
which  continue  to  rise (326)).  Slovenia  also  faces 
the  green 
shortages 

in  skills  needed 

for 

for 

(323) CSR 2025.5.1 Address labour shortages by stepping up the 

provision and acquisition of skills and competences, including 
basic skills among pupils and those relevant for the green 
and digital transition.  

(324) IMAD, Quality of Life in Slovenia-Development Report 2025. 
In 2024, 47.6% of companies reported shortages of workers 
or skills an obstacle to the digital transformation. 

(325) Ibid. In 2024, 65.2% of companies did not opt to introduce 

GAI technology due to the lack of skills (SURS, 2025a), p. 97. 

(326) European Commission, 2025, Digital Decade 2025: Country 

Report Slovenia. 

98 

 
 
ANNEX 12: SOCIAL POLICIES 

(LTC)  services  remains 

Slovenia  has  a  well-functioning  welfare 
system,  with  some  of  the  lowest  inequality 
and  poverty  rates  in  the  EU.  Despite  the 
generally  positive  social  situation,  poverty  levels 
have  been  trending  in  the  wrong  direction  since 
the Covid-19  pandemic, leading  Slovenia  to move 
further  away  from  its  national  2030  poverty 
reduction target. Challenges related to poverty and 
social  exclusion  are  particularly  pronounced  for 
certain  vulnerable  groups  and  rural  communities, 
especially in eastern Slovenia. Access to long-term 
care 
insufficient  and 
uneven  across the  country,  with  rural  areas  being 
particularly impacted by a lack of availability, amid 
rising  demand  and  severe  staff  shortages.  In 
addition,  there  is  a  lack  of  affordable  and  social 
housing, especially for older people, young people, 
foreign  workers  and  to  some  extent  homeless 
people,  especially  in  the  capital  and  other  urban 
areas  where  jobs  are  concentrated,  and  this  is 
having  a  negative  impact  on  labour  mobility,  on 
the  attractiveness  of  the  country  for  foreign 
workers  and,  consequently,  on  productivity  (see 
Annex 16).  

Graph A12.1: AROPE and its components 

Source: Eurostat, EU-SILC [ilc_peps01n, ilc_li02, ilc_mdsd11, 
ilc_lvhl11n].  

Despite  having  one  of  the  lowest  levels  of 
poverty,  Slovenia  is  moving  away  from  its 
2030 poverty reduction target. The AROPE rate 
has risen for the fourth consecutive year, reaching 
15.5%  in  2025,  which  further  distances  Slovenia 
from  its  2030  national  target  of  reducing  the 
number  of  people  in  poverty  by  9 000,  including 
3 000  children,  compared  to  2019  levels.  Given 

99 

the  recent  increase,  the  country  now  needs  to 
decrease  the  figure  by  54 000  by  2030.  Certain 
demographics,  such  as  single-person  households, 
are  particularly  affected,  with  a  high  and  rapidly 
rising  AROPE  rate  of  46.4%  in  2025.  For  people 
aged  65  and  over,  the  AROPE  rate  rose  markedly 
by 3.5 pps in 2025 and is significantly higher than 
the  EU  average.  Older  women  face  higher  risks 
than  older  men  (30.2%  vs  22.7%),  which  also 
reflects  inadequate  pensions.  Other  vulnerable 
groups include  unemployed  people  (53.8%), those 
born  outside  the  EU 
(23.8%),  persons  with 
disabilities (26.9%), and tenants renting at market 
prices (27.1%). Regional disparities also exist, with 
eastern Slovenia reporting a higher AROPE rate of 
17.7%  in  2025  compared  to  13.1%  in  western 
Slovenia.  Following  a  brief  increase  in  2024 
compared to 2023 (2.2 percentage points (pps) to 
37.7%),  the  impact  of  social  benefits  (other  than 
pensions) on poverty reduction resumed its decline 
in  2025  (3.3 pps  to  34.4%).  A  comprehensive 
approach,  as  set  out  in  the  EU  anti-poverty 
strategy,  support  progress  towards  achieving  the 
national anti-poverty target. 

Despite  being  at  a  relatively  low  level, 
poverty  risks  are  becoming  more  persistent. 
The at-risk-of-poverty (AROP) rate has increased in 
recent years, up from 11.7% in 2021 to 14.3% in 
2025.  Almost  half  of 
those  affected  are 
characterised by persistent poverty, meaning they 
were at risk of poverty during at least two of the 
three  previous  years.  At  the  same  time,  Slovenia 
has a high and increasing concentration of people 
with  incomes  up  to  10%  above  the  at-risk-of-
poverty threshold. As a result, economic shocks or 
similar  events  could  swiftly  drive  a  significant 
portion  of  the  population  below  the  poverty-risk 
threshold.  For  some  groups,  notably  homeless 
people,  Roma  and  non-nationals,  poverty  can  be 
lack 
hidden 
insufficient 
a 
due 
monitoring (327).  Overall 
in  2025,  the  relative 
poverty  gap,  measuring  the  intensity  of  poverty, 
was  at  17.4%,  below  the  EU  average  of  22.5%. 
However,  it  has  been  climbing  since  2020.  To 
counter  this  rise  and  to  accelerate  progress 
towards Slovenia’s 2030 poverty reduction target, 
the  implementation  of  the  action  plans  adopted 
based  on 
the  2022-2030  National  Social 
Assistance  Programme  are  crucial.  The  European 
Social  Fund  Plus  (ESF+)  supports  social  activation 
to  connect  vulnerable 
programmes  designed 

of 

to 

(327) IMAD, Quality of Life in Slovenia-Development Report 2025. 

0246810121416182019202020212022202320242025% of populationSIAt-risk-of-poverty or social exclusion rateAt-risk-of-poverty rateSevere material and social deprivationPeople living in low work intensity households 
 
     
 
 
 
 
key 

the 
among 

labour  market, 
social 

groups  with 
facilitating 
protection 
cooperation 
institutions  to  deliver  comprehensive  support  and 
improve Roma community integration. Additionally, 
the  ESF+  aids  in  combating  severe  poverty  by 
providing  non-financial  assistance,  such  as  food 
packages,  to  promote  social  inclusion  among 
materially and socially deprived individuals. 

Despite  relatively  low  child  poverty  rates 
overall,  some  vulnerable  children  still  face 
higher risks. In 2025, the AROPE rate for children 
increased  by  0.7 pps  to  12.5%  (EU:  24.3%). 
Despite  efforts  to  address  this,  some  vulnerable 
children  in  Slovenia,  including  Roma  children, 
children  in  single-parent  families,  children  of 
parents with a low level of education, and migrant 
children,  are  at  a  much  higher  risk.  The  challenge 
lies in improving  the  effectiveness  of  the  tax  and 
social  benefit  systems  and  accelerating  the 
Child 
implementation 
Guarantee (328). Ongoing initiatives aim to improve 
social inclusion, education incentives and systemic 
support,  but  further  policy  adjustments  may  be 
needed  to  address  these  gaps  effectively (329). 
Additional  measures,  such  as  attracting  qualified 
workers  from  abroad,  could  help  mitigate  staff 
shortages  in  social  services  and  support  single 
institutional) 
parents 
care (330).   

in  alternative  (especially 

European 

the 

of 

amid 

negative 

Slovenia  adopted  a  reform  of  the  public 
pension  system  to  ensure  sustainability  and 
adequacy 
demographic 
trends (331). The recent Slovenian pension reform, 
which  was  adopted  as  part  of  the  recovery  and 
resilience  plan  (RRP),  has  been  in  force  since  1 
January  2026.  From  2028  to  2035, 
it  will 
gradually  raise  the  legal  retirement  age  from  65 
to 67 for those with at least 15 years of insurance 
contributions. 
those  with  a  40-year 
contribution  record,  the  minimum  retirement  age 
will  increase  from  60  to  62.  The  reform  is 
expected  to  have  a  positive  effect  on  pension 
adequacy, especially for the lower quintile classes. 
The  pensions  of  the  latter  are  projected  to 

For 

(328) Ibid.  

(329) Eurochild, 2024 Biennial report on the implementation of the 

Child Guarantee in Slovenia. 

(330) See Slovenia Country Report 2025. 

(331) CSR 2025.1.3. Ensure the fiscal sustainability of social 

protection. 

to 

increase  the  most  (approximately  12%)  while  the 
increase  will  be  lower  for  higher  quintile  classes 
(4-6%). On average, the first pension received will 
be 8% higher than under the baseline scenario by 
2045 (332).  The 
increases  the 
legislation  also 
accrual  rate  from  63.5%  to  70%  for  40  years  of 
work  and  to  30%  for  15  years  of  work.  These 
measures  are  expected 
improve  pension 
adequacy  and  lower  poverty  risks  among  older 
to 
people.  Further  measures  are  envisaged 
strengthen  the  link  between  pension  adjustments 
and  inflation.  As  single  pensioners,  especially 
women,  are  among  the  most  vulnerable  groups, 
the  new  legislation  includes  an  increase  to  the 
survivor’s  pension  from  70%  to  80%.  The  newly 
introduced annual winter allowance, in the amount 
of  EUR 250  paid  to  pensioners  and  recipients  of 
disability  benefits  on 
regular 
pension (333),  will  further  improve  the  situation  of 
standard retirees. While various measures, such as 
the  guaranteed  pension  for  40  years  of  work (334) 
and  pension  indexation,  contributed  to  growth  in 
real  pensions  in  recent  years,  challenges  remain 
for certain groups of pensioners (335) who continue 
to receive very low pensions. Approximately half of 
pensioners  receive  a  pension  below  the  poverty 
threshold (336). The impact of social benefits (other 
than  pensions)  on  poverty  reduction  is  the  least 
effective among older people (65 and over). This is 
reflected  in  the  high  AROPE  rate  among  women 
aged 75 and over, which is almost twice as high as 
that  of  the  general  population.  At  41%,  the 
aggregate pension replacement ratio in Slovenia is 
below  the  EU  average  of  61%  in  2025,  as  are 
median  relative  incomes  of  people  aged  65  and 
over (75% compared to 91%). 

top  of 

their 

Even  with  the  full  entry  into  force  of  the 
2023 
the  sector 
continues  to  grapple  with  challenges  in 

long-term  care  act, 

(332) Institute for Economic Research, Slovenia, Analysis of the 

fiscal and adequacy effects of the pension reform proposal. 

(333) The amount of winter allowance will increase gradually from 

EUR 150 in 2025 to EUR 250 in 2030. 

(334) Due to the pension adjustment  of 4,2 % in January 2026 

(regular) and 1% in March 2026,, the guaranteed pension for 
40 years of work increased to EUR 826 as of 1 March 2026. 

(335) European Commission, 2024 pension adequacy report, 2024. 
Pensioners with incomplete or short working lives, the self-
employed, people working in intermittent jobs, and those 
with a low level of contributions. 

(336) ZPIZ, Annual Report 2024, p. 37. 

100 

 
 
 
in 

accessibility (337). 

Instrument,  Slovenia  benefits 

improving 
Slow 
implementation  due  to  necessary  adjustments  to 
staffing  poses  challenges.  Through  the  Technical 
Support 
from 
support  for  the  implementation  of  its  new  long-
term  care  act.  The  project  aims  to  improve 
administrative  processes  for  the  delivery  of  LTC 
services  both 
institutional  and  community 
settings, and increase staff capacity to assess the 
eligibility  of  individuals  for  LTC  coverage  under 
insurance,  ensuring  a  uniform  application  of 
criteria  across  all  regions.  Despite  an  increase  in 
public spending, reaching 1.0% of GDP (EU: 1.7%), 
unmet  needs  remain  high.  Public  funds  cover 
78.7%  of  LTC  expenditure,  while  private  out-of-
pocket  payments  account  for  20.6%.  Residential 
care  –  mainly  homes  for  the  elderly  –  dominates 
spending (61.4%).  Home care accounts for 38.6% 
of  expenditure  but 
increased  public 
investment  in  2022  (24.5%).  In  2023,  of  the 
76 841  individuals  benefiting  from  LTC  services, 
only  around  29 200  received  care  at  home, 
followed  by  users  of  LTC  in  institutions  (22  900), 
highlighting  a  need  for  improved  home  and 
community-based  services (338).  Delays  in  issuing 
decisions  for  determining  entitlement  to  the  LTC 
rights  at  entry  points  may  hinder  timely  access, 
particularly 
Strengthening 
increasing 
services 
community 
accessibility remains crucial to addressing growing 
demand.  Addressing  these  issues  could  support 
ongoing reform efforts and help meet the growing 
demand,  without  leaving  too  many  people  reliant 
on institutional care. 

in 
care 

areas. 

rural 

saw 

and 

in 

Slovenia  faces  significant  and  persistent 
long-term  care (339). 
staff  shortages 
Slovenia has only 2.2 LTC workers per 100 people 
aged  65  and  over  (vs  an  EU  average  of  3.3 
workers),  with  around  70%  of  staff  in  residential 
care and only 30% in home care. Structural issues, 
such as burnout, poor working conditions (340), high 
turnover 
rates,  and  an  ageing  workforce, 
exacerbate  existing  shortages.  The  workforce  is 
highly  gender  segregated  (83%  women)  and 

(337) On 1 December 2025, new institutional LTC services and the 

payment of cash benefits were introduced. 

(338) See SURS, Long-term care, 2023, 2025. 

(339) CSR 2025.5.4. Raise Slovenia’s attractiveness for foreign 
workers with advanced skills. Improve working conditions, 
particularly in the care and teaching sectors. 

in 

engaging 

volunteers 

for  deploying  modern 

concentrated 
lower-  and  medium-skilled 
occupations such as nursing assistants. Shortages 
also persist due to low interest in LTC work among 
Slovenian  workers  and  recruitment  challenges  for 
foreign workers. In 2024, Slovenia adopted several 
measures  under  the  ‘act  on  temporary  measures 
to  improve  staffing  and  working  conditions  and 
capacity  at  providers  of  social  care  services  and 
long-term  care’.  These 
include  measures  to 
improve social assistance services, including: (i) co-
financing the cost of obtaining national vocational 
qualifications, 
and 
establishing  quality  models,  and  (ii)  ensuring 
funding 
technologies, 
integrating  foreign  employees (including  subsidies 
for  accommodation  and  Slovenian 
language 
courses),  training  employees  in  care  professions, 
co-financing  of  a  personnel  scholarships  for 
professions  in  social  and  long-term  care  and 
financing  additional  tasks  of  the  Employment 
the  Republic  of  Slovenia.  These 
Service  of 
initiatives  aim  to  address  working  conditions, 
improve service quality, promote the integration of 
foreign  workers,  and  renew  interest  in  the  care 
professions  among  workers.  However,  many  of 
these  measures  are  still  to  bear  fruit  or  be  fully 
implemented.  Through 
the  Technical  Support 
Instrument, Slovenia will receive support to design 
a  roadmap  for  retaining  and  strengthening  the 
community-care  workforce  in  line  with  both  the 
LTC  reform  and  the  objective  of  helping  people 
with  disabilities  to  be  able  to  live  independently, 
including by attracting and integrating foreign care 
workers in a fair, responsible and sustainable way. 
Despite these measures and increasing wages for 
care  assistants  and  nurses (341),  vacancies  remain 
high. The challenge involves addressing shortages 
by 
fostering 
professional  development,  developing  sustainable 
establishing 
recruitment 
community-based 
the 
assistance of social economy entities. Additionally, 
integrating  migrant  workers  effectively  and 
to  deliver 
expanding  multidisciplinary 
preventive,  person-centred  care  remain  key  areas 
requiring attention. 

and 
service  models  with 

improving  working 

conditions, 

strategies, 

teams 

Energy  poverty  in  Slovenia  is  relatively  low. 
Based  on 
the  national  definition,  6.8%  of 
Slovenian  households  were  estimated  to  be 

(340) Physically and emotionally demanding work conditions paired 

(341) Public sector reforms increased wages by 8% to 15% for 

with low wages relative to responsibilities. 

care assistants and nurses. 

101 

 
 
 
15.9%.  However,  the  continued  dominance  of 
private cars and the stagnation in public transport 
use  highlight  challenges  in  promoting  sustainable 
and  inclusive  transportation  systems.  Slovenia’s 
reliance  on  cars  for  land  transport  is  among  the 
EU’s highest (85.5% vs 82% in the EU), with a very 
low propensity for taking the train (2.6% vs 8.4% 
in  the  EU).  These  challenges  may  be  more 
pronounced  in  rural  areas,  which  are  home  to  a 
larger share of the population (45.1%) than towns, 
suburbs  or  cities (345) (see  Annex  18).  Transport 
fuel  expenditures  are  projected  to  increase  under 
ETS2 more than the EU average. Strengthening the 
affordability  and  availability  of  public  transport 
will be essential while in areas with limited access 
support  could  focus  on  zero-emission  vehicle 
options  to  be  used  for  an  on-call  transportation 
system.  

experiencing energy poverty in 2025 (342) and only 
3.6%  of  the  population  was  unable  to  keep  their 
homes  adequately  warm  (EU  average:  8.8%).  In 
addition,  5.4%  of  individuals  faced  arrears  on 
utility bills in 2025, which marks an improvement 
of 4 pps compared to 2020 (EU: 9.2%). To address 
energy poverty, Slovenia has introduced a range of 
measures including financial  incentives to support 
vulnerable  households.  Under  the  2021-2027 
cohesion  policy  programme,  Slovenia  allocated 
EUR 23.5  million  to  measures  addressing  energy 
poverty,  including  energy-efficiency  renovations 
targeting  vulnerable  households.  The  national 
energy and climate plan for 2030 (343) established 
overarching  energy  poverty  targets, 
including 
reducing  the  share  of  energy-poor  households  to 
between  3.8%  and  4.6%  by  2030.  Slovenia  also 
has  a  national  action  plan  to  alleviate  energy 
poverty  for  2024-2026,  with  an  allocated  budget 
of EUR 34 million focusing on structural measures 
such  as  energy-efficiency  renovations  for  the 
energy  poor,  decarbonising  district  heating 
systems  and  transitioning  away  from  outdated 
biomass heating technologies. The action plan also 
set targets for the uptake of energy efficiency and 
renewable energy by energy-poor households until 
2026  and  2030,  respectively.  The  introduction  of 
the EU emissions trading system for buildings and 
road transport (ETS2) is expected to put additional 
pressure  on  households,  although  heating 
expenditure  is  projected  to  increase  less  than  in 
the  EU  owing  to  Slovenia’s  very  low  exposure  to 
ETS2-covered  fuels.  From  2026,  the  EU’s  Social 
Climate  Fund  will  help  mitigate  these  impacts 
through targeted energy-efficiency investments.  

Koroška, 

Savinjska, 

Transport  poverty  does  not  seem  to  pose  a 
particular  challenge,  but  in  certain  regions 
public  transport  is  not  very  accessible (344). 
regions  most  affected  are  Pomurska, 
The 
Podravska, 
Zasavska, 
Posavska,  Jugovzhodna  Slovenija,  Primorsko-
notranjska,  Goriška  and  Obalno-kraška.  Transport 
poverty,  measured  by  the  share  of  households 
unable  to  afford  a  car,  was  well  below  the  EU 
average  in  Slovenia  at  2.1%  in  2024  (compared 
with 5.6% in the EU). Similarly, the percentage of 
people at risk of poverty who cannot afford a car 
was  9.8%  in  2024  –  below  the  EU  average  of 

(342) See Energy poverty, 2024. 

(343) See National Energy and Climate Plan for 2030.  

(344) Data from Commission’s Transport Poverty Hub. 

(345) See Slovenia Country Report 2025.  

102 

 
 
 
ANNEX 13: EDUCATION AND SKILLS 

skills, 
and 

The  resilience  and  competitiveness  of  the 
Slovenian  economy  can  be  improved  by 
addressing 
basic 
strengthening 
expanding 
teacher 
shortages 
reskilling. 
comprehensive  upskilling  and 
Deteriorating  basic  skills  and  persistent  teacher 
shortages  pose  a  risk  for  competitiveness.  Adult 
education 
faces  multifaceted  challenges,  as 
participation  in  upskilling  and  reskilling  is  low 
across  the  entire  workforce,  most  notably  among 
vulnerable  groups.  Moreover,  while  the  vocational 
education  and  training  (VET)  system 
is  well 
developed,  alignment  with  labour  market  needs 
remains  a  challenge,  including  for  the  digital  and 
green transitions. Enhancing the inclusiveness and 
labour-market relevance of education and training 
could  help  overcome  skills  gaps  and  mismatches. 
The  2025  country-specific  recommendations  for 
Slovenia called for skills acquisition to be stepped 
up,  including  basic  skills  among  pupils  and  skills 
relevant  for  the  green  and  digital  transition.  They 
also  called  for  improved  lifelong  learning  and 
training,  especially  for  low-qualified  and  older 
workers. 

in 

progress 

substantial 

Slovenia  has  a  well-developed 
early 
childhood education and care (ECEC) system. 
In 2024, the participation rate in ECEC for children 
aged  three  and  over  was  93.6%,  close  to  the  EU 
average  of  95%,  but  still  below  the  EU  2030 
target of 96%. Between 2015 and 2025, Slovenia 
increasing 
made 
participation among children under three, with the 
rate  rising  by  more  than  20  pps.  In  2024,  the 
participation  rate  reached  57.8%,  well  above  the 
EU  average  at  39.2%  and  the  national  Barcelona 
target of 45%. Even though municipalities received 
funding  to  cover  higher  labour  costs (346),  some 
municipalities decided to raise fees for childcare in 
light  of  increases  in  public  sector  wages  and  
broader  cost  pressures (347).  As  of  the  2025/2026 
school year, an updated kindergarten curriculum is 
in  place  to  strengthen  early  learning  outcomes, 
involvement,  promote  more 
increase  parental 
individualised 
and 
support  the  inclusion  of  children  from  diverse 
backgrounds.  This  will  be  followed  by  a  revised 
curriculum  for  children  with  special  educational 
needs in the school year 2026/2027. 

pedagogical 

approaches, 

Declining  basic  skills,  including  digital  skills, 
are a risk to human capital development (348). 
The  share  of  underachievers 
in  education 
increased  between  2018  and  2022  in  all  three 
subjects,  especially  in  mathematics  (from  16.4% 
to 24.6%) and reading (from 17.9% to 26.1%). The 
share of top-performing pupils in 2022 dropped in 
mathematics (from 13.6% in 2018 to 9.4%) and in 
reading (from 7.8% to 4.4%). Overall, deteriorating 
basic  skill  levels  weaken  the  skills  base  and 
exacerbate  future  skills  shortages  (see  2025 
country  report).  Positively,  the  rural-urban  gap  in 
PISA 2022 results was well below the EU average 
for  all  three  subjects.  The  share  of  15-year-old 
students  from  a  disadvantaged  socio-economic 
background performing well in at least one subject 
was  in  line  with  the  EU  average  (16.3%)  in  2022 
but  had  dropped  from  25.7%  in  2018.  Moreover, 
according  to  ICILS  2023,  around  half  of  students 
are  low  achievers  in  digital  literacy  (51%  vs  EU 
average: 43%), far off the EU 2030 target of 15%. 
Positively,  the  share  of  early 
leavers  from 
education and training remained stable at 5.5% in 
2025, well below the EU average (9.1%). In 2025, 
(NPZ)  became 
the  National  Knowledge  Test 
compulsory  for  all  third-grade  students.  The 
results are expected to help teachers better adapt 
methods  and  forms  of  work  to  students’  needs. 
Revised  curricula  for  primary  and  secondary 
education  are  being  finalised  and  are  planned  to 
be  gradually 
the 
2026/2027  school  year.  To  address  digital  skills 
gaps,  a  new  compulsory  subject  on  Informatics 
and  digital  technology  will  be  introduced  in  the 
seventh grade from the 2028/2029 school year. 

introduced  starting 

from 

and  mathematics 

Slovenia  is  facing  teacher  shortages,  with 
the  highest  needs  in  science,  technology, 
engineering 
(STEM) 
subjects  and  in  languages.  Data  indicate  a 
including  1 846 
shortfall  of  3 611  teachers, 
teachers 
lower  secondary 
education (349). However, according to estimates by 
the  Association  of  Principals,  using  a  different 
methodology,  the  gap may  be  significantly larger, 
at around 7 000 (350), with the biggest needs being 
reported  in  Slovenian,  English  and  STEM  subjects. 

in  primary  and 

(348) CSR 2025.5.1. ‘Address labour shortages by stepping up the 

provision and acquisition of skills and competences, including 
basic skills among pupils and those relevant for the green 
and digital transition.’ 

(346) See Government of Slovenia, 2025.  

(349) According to a government report on teacher shortages.   

(347) Modre novice, 2025, Letos višje cene vrtcev v več občinah.  

(350) See N1, 2025, Teacher shortages. 

103 

 
 
 
 
 
TALIS  2024  data  show  that  55.1%  of  teachers 
over  50  intend  to  leave  the  profession,  which  is 
higher  than  the  EU  average  (42.7%).  To  sustain 
the  learning  process,  schools  increasingly  hire 
partially  qualified  staff.  Nearly  80%  of  basic 
schools  report  employing  at  least  one  teacher 
without  adequate  education,  while 
in  special 
schools  almost  one  third of  staff  do  not  hold  the 
required qualifications (351). 

The  teaching  profession  currently  has  low 
prestige,  yet  reforms  to  increase  teachers’ 
salaries are under way (352). Recent reforms aim 
to  improve  teachers’  pay  and  strengthen  the 
attractiveness  of  the  profession  in  response  to 
persistent  shortages.  A  new  law  envisages  a 
gradual increase in salaries by 2028 for all public 
sector  employees,  including  teachers.  The  reform 
is  explicitly  designed  to  correct  distortions  at  the 
bottom  of  the  pay  scale (353).  New  rules  in  force 
since  2025  allow  an  additional  workload  for 
teachers already  employed at the same school or 
institution  (up  to  20%  of  working  time  beyond 
100%),  helping  to  address  teacher  shortages. 
teachers 
to  TALIS 2024,  Slovenian 
According 
report lower satisfaction with their salary (32.7%) 
than on average in the EU (37.3%). A significantly 
lower  share  of  teachers  feel  valued  in  society 
compared to their EU peers (7.4% vs EU average: 
15.4%).  However,  this  was  a  slight  improvement 
on 2018 (5.6% vs EU: 17.7%).  

The  VET  system  is  well  developed  yet  not 
fully  aligned  with  labour  market  needs.  The 
share  of  learners  enrolled  in  medium-level  VET 
reached  70.0%  in  2024,  well  above  the  EU 
average  of  52.9%.  In  2025,  the  vast  majority  of 
recent  VET  participants  (72,0%)  had  undertaken 
work-based  learning,  exceeding  the  EU  average 
rate  after 
(66,0%),  while 
completion  of  VET,  at  77.6%,  was  slightly  below 
the  EU  average  (80.2%).  The  share  of  VET 
students enrolled in STEM was also above the EU 
average  (41.9%  vs  EU:  36.6%  in  2024),  although 
the participation of women remained lower (14.1% 
vs  15.9%).  Despite 
these  overall  positive 
outcomes, employers still struggle to find workers 
with vocational qualifications. While the number of 

the  employment 

(351) According to a government report on teacher shortages.   

(352) CSR2025.5.4 ‘Improve working conditions, particularly in the 

care and teaching sectors.’ 

apprenticeship  programmes  and  partner  schools 
increased  markedly  from  35  in  2017  to  228  in 
2024, only a small share (4.7%) of students in the 
2025/2026  school  year  opted 
to  do  an 
apprenticeship (354). Factors contributing to the low 
large 
uptake 
companies  able  to  host  apprentices,  lack  of 
mentors, low interest among students (due to the 
specific status of apprentices and low pay) and the 
limited resources of small businesses. 

limited  number  of 

include  a 

carried  out 

Slovenia  is  taking  steps  to  enhance  the 
appeal  and  alignment  of  VET  with  labour 
market  needs,  including  digital  and  green 
competencies (355).  In  2025,  48  revised  upper-
secondary  VET  programmes  were  adopted, 
incorporating  digital,  financial  and  green  skills  in 
the  curricula.  They  are  gradually  being  introduced 
starting from the 2026/2027 school year. In 2024, 
work 
included  updating  pilot 
programmes  such  as  pharmaceutical  technician 
and  nursing  assistant.  A  national  study  examined 
the  expansion  of  apprenticeships  to  four-year 
technical  and  higher  VET  levels,  with  digital  tools 
developed  to  aid  work-based  learning.  Slovenia 
also  promoted  apprenticeships  through  initiatives 
such  as 
in  VET’  and 
WorldSkills.si.  The  labour  market  platform  for 
long-term  skills  forecasting  is  under  development 
and  already  provides  projections  of  future  skill 
needs.  Its  aim  is  to  establish  a  comprehensive 
labour  market  needs  by 
system  to  forecast 
occupation and skill, identify supply–demand gaps, 
present  data  and  inform  the  development  of 
education  and 
is 
expected  to  reduce  mismatches  and  strengthen 
the  competitiveness  of  the  Slovenian  economy. 
Active  labour  market  policy  programmes  will  also 
be  aligned  with  the  identified  skills  shortages. 
careers 
Additionally,  Slovenia 
guidance 
participants’ 
employability (356). 

is  enhancing 
VET 

training  programmes.  This 

‘Promoting  Excellence 

tracking 

and 

is 
Participation 
increasing  but  remains  low  for  people  born 

education 

higher 

in 

(354) National Assembly of the Republic of Slovenia, Committee 

on Education, Science and Youth, 9 May 2024. 

(355) CSR 2025.5.1. ‘Address labour shortages by stepping up the 
provision and acquisition of skills and competences, including 
basic skills among pupils and those relevant for the green 
and digital transition.’ 

(356) European Commission, 2025, Education and Training Monitor 

(353) ZSSS, 2025; Government RS, 2025. 

– Slovenia. 

104 

 
 
 
outside the EU. The share of the population with 
tertiary  education  (25-34)  rose  from  31.3%  in 
2015  to  42.8%  in  2025,  however,  it  remains  
below  the  EU  average  of 44.8%  and  the  EU-level 
target of 45%. Participation is much lower among 
those born outside the EU, at 18.6%, compared to 
an EU average of 39%. Positively, the urban-rural 
gap  in  tertiary  education  attainment  of  young 
people (aged 25-34) is one of the lowest in the EU 
(9.4pps  vs  22  pps).  The  gender  gap  in  higher 
education  participation  (in  favour  of  women) 
remains among the widest in the EU  (23.8 pps vs 
EU:  11.3 pps).  Participation  in  STEM  programmes 
in  2023  was  at  29.7%,  above  the  EU  average 
(26.9%), but still below the proposed EU target of 
32%.  The  share  of  students  enrolled  in  STEM  at 
ISCED  5-8 
PhD 
enrolments  stands  at  1.5%,  just  above  the  EU 
average  of  1.4%.  The  proportion  of  PhD  students 
in ICT (4.1%) is around the EU average (3.8%), but 
still  below  the  proposed  EU-level  target  of  5%. 
Around  one  third  (31.6%)  of  STEM  students  at 
tertiary  level  in  2024  were  women,  very  close  to 
the  EU  average  (32.2%),  but  below  the  proposed 
EU-level  target  of  40%.  The  government  plans  to 
expand  the  network  of  public  universities  by 
changing the legal status of some existing private 
universities  or 
independent  higher  education 
institutions to public. 

level  as  a  share  of  total 

flexibility 

The  new  Higher  Education  Act  aims  to 
strengthen  labour-market  relevance,  quality 
in  creating  new  study 
and 
programmes.  The  reform  adopted 
in  2025 
focuses  on  aligning  study  programmes  more 
closely  with  skills  demand  by  increasing  funding 
for  higher  education  and  introducing  a  legal 
framework  for micro-credentials.  It  also  enhances 
quality  assurance,  supports  the  development  of 
languages  and 
study  programmes 
promotes  modern 
environments. 
Additional  measures  are  planned  to  strengthen 
cooperation  between  higher  education  institutions 
improve  data  collection  on 
and  employers, 
graduate competences and increase investment in 
the professional development of academic staff.  

in  foreign 
learning 

Universities are taking steps to adapt to the 
digital and green transitions. The University of 
Ljubljana  adopted  a  sustainability  strategy  in 
2025 (Vision  to  2040),  while  the  University  of 
Primorska  adopted  a  2025-2030  development 
strategy to enhance the provision of skills for the 
digital  and  green  transition.  Cohesion  policy 
funding  (EUR  15  million)  supports  universities  in 

infrastructure 

offering more flexible learning pathways, including 
short  courses  and  micro-credentials  developed 
jointly  with  employers (357).  European  Regional 
Development  Fund  (ERDF)  investments  enhance 
ICT 
in  universities  and  public 
libraries,  supporting  in-class  and  remote  learning 
and  boosting  students’  digital  skills.  These 
initiatives  facilitate  graduates’  transition 
into 
employment and ensure that the skills acquired in 
higher  education  better  match  labour  market 
needs. 

people  with 

Skills mismatches and the shortage of skilled 
labour  hamper  growth  while  constraining 
business activity (358). In 2025, the vacancy rate, 
at  2.2%,  exceeded  the  EU  average  (2.1%)  but 
remained broadly stable. The macroeconomic skills 
mismatch,  which  highlights  the  relative  difficulty 
for 
low-  and  medium-level 
qualifications to enter the labour market compared 
to highly qualified people, increased and exceeded 
the  EU  average  in  2024,  while  the  EU  average 
decreased. At the same time, 20.8% of those with 
tertiary  education  (25-34)  were  employed 
in 
occupations  requiring  at  most  upper-secondary 
education 
(EU  average:  21.2%),  highlighting 
challenges  in  taking  advantage  of  existing  highly 
skilled labour. This comes against  the background 
of a rapidly changing skills profile in the economy. 
Between  2025  and  2030,  37%  of  core  skills  of 
workers are expected to face changes, particularly 
to  AI,  big  data,  cybersecurity  and 
related 
technological 
In  2025,  shortages 
were  reported  in  more  than  100 (360)  occupations 
with  only  a  few  occupations  having  a  surplus, 
labour  market 
further 
conditions (361). 
skills 
reported 
Companies 
shortages  to  be  the  most  significant  business 
constraint, affecting their investments, operations, 
productivity and growth as well as the adoption of 
new technologies (362).  

literacy (359). 

pointing 

tight 

to 

(357) Ibid. 

(358) CSR 2025.5.1. ‘Address labour shortages by stepping up the 
provision and acquisition of skills and competences, including 
basic skills among pupils and those relevant for the green 
and digital transition.’ 

(359) WEF, 2025, Future of Jobs Report.  

(360) https://sibiz.eu/slovenia-expands-list-of-shortage-

occupations-for-2025/. 

(361) EURES, 2025, Labour shortages and surpluses in Europe. 

(362) IMAD, Quality of Life in Slovenia-Development Report 2025. 

105 

 
 
number 

Slovenia  also  faces  increasing  skills  needs 
for  the  transition  to  a  green  economy. 
Persistent  labour  shortages  in  occupations  linked 
to  the  green  transition  and  climate  adaptation 
have been reported since 2022, including civil and 
electrical  engineers,  forestry  and  other  related 
workers,  electrical  mechanics  and  fitters,  and  a 
substantial 
construction-related 
of 
professions,  such  as  insulation  workers  and  air 
conditioning  and  refrigeration  mechanics.  Labour 
shortages  in  construction,  one  of  the  key  sectors 
for the green transition, remain well above the EU 
average  (4.6%  vs  EU:  3%  in  2024).  The  share  of 
workers in energy-intensive industries who receive 
training  is  almost  twice  the  EU  average  for  the 
sector  (20%  vs  EU:  12%  in  2025),  helping  to 
ensure that skillsets in the workforce are adapted 
to  the  changing  needs.  However,  this  is  still  less 
than the all-industry average (24.7%). 

Graph A13.1: Basic or above basic digital skills 

Source: Eurostat, [isoc_sk_dskl_i21]. 

qualified 

The level of digital skills in the population is 
low and stagnating, threatening to delay the 
digital transition. In 2024, 47.6% of companies 
reported that a shortage of appropriate workers or 
skills was an obstacle to the digital transformation 
of  their  operations.  And  even  though  the  highest 
future  shortages  in  Slovenia  are  expected  to  be 
among 
and 
digital 
engineers (363),  between  2023  and  2025  the  level 
of basic digital  skills stagnated (-0.2 pps)  while it 
increased  significantly  in  the  EU  overall  (around 
5 pps).  At  46.5% (EU  average:  60.4%,  2025),  less 
than half the population (16-74) had at least basic 
digital 
vulnerable  groups, 
including  the  unemployed,  older  people  and those 
with  lower  education  or  limited  access  to  digital 
lag  significantly  behind, 
tools,  continue 

skills.  Moreover, 

specialists 

to 

(363) IMAD, Quality of Life in Slovenia-Development Report 2025. 

inequalities 

underscoring  ongoing 
in  digital 
inclusion.  Launched  in  2023,  the  government’s 
Digital  Slovenia  2030  strategy  aims  to  boost 
digital  skills  across  the  whole  of  society,  by 
enhancing  digital  literacy  and  rights  through  the 
the  school 
integration  of  digital  skills 
curriculum,  creating  a  unified  training  programme 
and  improving  educators’ digital  skills.  Several  EU 
and  nationally  funded  projects  are  in  preparation 
recent 
or  ongoing.  However,  according 
assessments (364),  and  as  reflected  in  decreasing 
digital skills in society, implementation and impact 
remain  limited  and  there  is  significant  scope  for 
further measures.  

into 

to 

population  groups 

Participation in adult learning and training is 
slowly increasing, but this masks differences 
across population  groups (365). According to the 
adult education survey, adult learning participation 
(25-64) decreased from 40.3% in 2016 to 26.5% 
in  2022,  well  below  Slovenia’s  2030  national 
target  of  60%  (see  2025  country  report).  More 
recent data from the Labour force survey suggest 
a  possible  increase  in  participation  rates  between 
2022 and 2024. There were substantial disparities 
across 
in  2022,  with 
participation  among  low-qualified  individuals  at 
7.8%  (EU  average:  18.4%),  while  almost  half  of 
adults with tertiary education participated. Women 
participated  significantly  more  than  men  (31.2% 
vs 22%). Other groups, such as older workers (55 
and  over),  those  with  a  migrant  background  and 
those  outside  the  labour  force,  are  particularly  in 
need  of  up-  and  reskilling  yet  also  have  low  and 
decreasing  participation.  These  patterns  reflect 
socio-economic 
structural,  demographic  and 
factors  and  contribute  to  persistent  skills  gaps 
amid widespread shortages.  

Slovenia is investing significantly in training 
opportunities, including for green and digital 
skills,  but  measures  have  yet  to  bear  fruit. 
Several  measures  funded  by  the  European  Social 
Fund Plus (ESF+) and the Recovery and Resilience 
Facility (RRF) aim to foster basic skills and lifelong 
learning,  with  priority  given  to  vulnerable  groups. 
In  2024,  a  nationwide  campaign  to  increase 

(364) Digital Skills and Jobs Platform, 2025, Slovenia.  

(365) CSR 2025.5.1. ‘Address labour shortages by stepping up the 
provision and acquisition of skills and competences, including 
basic skills among pupils and those relevant for the green 
and digital transition.’ CSR 2025.5.2. ‘Boost lifelong learning 
and training, especially for low-skilled and older workers.’ 

106 

0.10.20.30.40.50.60.70.25-34 years35-44 years55-64 yearsUnemployedLow-qualifiedNon-EU bornTotal202120232025 
   
 
 
lifelong  learning  was  launched.  EUR  423  million 
(67% of the ESF+ allocation) has been allocated to 
initiatives  under  the  theme  ‘skills  and  responsive 
labour  market’,  including  for  the  integration  of 
green  skills  within  all  levels  of  the  education 
system.  Furthermore,  the  ESF+  is  investing  in 
strengthening  key  skills  (EUR  37  million)  and 
supports opportunities for upskilling and reskilling, 
including  in  digital  skills.  Additional  support  from 
the ERDF (EUR 13.2 million) and the Just Transition 
Fund  (EUR  7  million)  expands  lifelong  learning 
opportunities, focusing on green skills and flexible 
study  options.  Moreover,  with  the  support  of  the 
RRF,  roughly  16 000  professionals  and  managers 
in education and training have received training in 
digital  and  green  skills  and  financial  literacy. 
However,  significant  shortages  along  weak 
outcomes  regarding  overall  but  in  particular  in 
digital 
challenges. 
Furthermore,  existing  schemes  do  not  reach  the 
broader  working-age  population,  including  low-
qualified  and  older  people.    The  authorities  will 
carry out a comprehensive needs assessment and 
develop  a  skills  action  plan (366),  building  on  the 
2022-2030  national  adult  education  programme. 
The  aim  is  to  scale  up,  simplify  and  enhance 
availability  and  the  quality  of  training  measures. 
Slovenia  has  already  begun  a 
large-scale 
evaluation of adult education in 2026. 

significant 

skills 

pose 

(366) Adopted at the Cohesion Policy Monitoring Committee, 

27.11.2025. 

107 

 
 
ANNEX 14: SOCIAL SCOREBOARD 

Table A14.1:Social Scoreboard for Slovenia 

Update of 4 May 2026. 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 2026 for details on the methodology 
(https://employment-social-affairs.ec.europa.eu/joint-employment-report-2026_en). 
Source: Eurostat 

108 

26.55.546.57.64.93.5578.33.91.1122.415.512.534.415.73.560.33.2Critical situationTo watchWeak but improvingGood but to monitorOn averageDynamic 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, 2025)Impact of social transfers (other than pensions) on poverty reduction(% reduction of AROP, 2025)Children aged less than 3 years in formal childcare (% of the under 3-years-old population, 2025)Self-reported unmet need for medical care (% of the population aged 16+, 2025)Disability employment gap (percentage points, population aged 20-64, 2025)Housing cost overburden (% of the total population, 2025)Adult 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, 2025)Young people not in employment, education or training(% of the population aged 15-29, 2025)Gender employment gap(percentage points, population aged 20-64, 2025)Income quintile ratio (S80/S20, 2025)At risk of poverty or social exclusion (AROPE) rate (% of the total population, 2025)Employment rate(% of the population aged 20-64, 2025)Unemployment rate(% of the active population aged 15-74, 2025)Long term unemployment(% of the active population aged 15-74, 2025)Gross disposable household income (GDHI) per capita growth(index, 2008=100, 2024)At risk of poverty or social exclusion (AROPE) rate for children(% of the population aged 0-17, 2025) 
 
 
 
  
 
 
ANNEX 15: HEALTH AND HEALTH SYSTEMS 

Slovenia’s  health  system  faces  challenges 
that  negatively  affect  the  health  of  its 
population  and  productivity.  Slovenia  faces  a 
challenge  with  access  to  healthcare,  mainly 
caused  by  shortages  of  healthcare  workers  and 
increasing  demand  for  services  due  to  population 
ageing. 
country-specific 
2025 
recommendations  (CSRs)  referred  to  the  need  to 
address  labour  shortages  by  stepping  up  the 
provision 
and 
acquisition 
competences  and  improving  working  conditions, 
including in the healthcare sector. They also raised 
issue  of  fiscal  sustainability  of  social 
the 
protection. 

skills 

and 

The 

of 

Graph A15.1: Life expectancy at birth, years 

Source: Eurostat (indicator: demo_mlexpec) 

live 

longer 

(around  4.2 years 

longer  than  men 

Life  expectancy  at  birth  in  Slovenia  was 
higher  than  the  EU  average  in  2024,  with 
significant  differences  between  men  and 
women.  As  in  other  EU  countries,  women  can 
expect  to 
(5.2 years) 
However,  unlike  in  other  EU  countries,  they  can 
also  expect  to  live  considerably  longer  in  good 
health 
than  men). 
Slovenia  fares  comparatively  well  in  avoiding 
deaths  from  treatable  causes,  which  have  fallen 
steadily  over  the  last  10 years.  Diseases  of  the 
circulatory  system  (cardiovascular  diseases)  and 
cancer  are  the  leading  causes  of  death,  with 
mortality rates for cancer considerably higher than 
the  EU  average.  Investments  under  the  recovery 
and  resilience  plan  (RRP)  are  being  directed 
towards improving emergency care and infectious 
in  an  effort  to 
disease  treatment  facilities 
strengthen the resilience of the health system. 

Preventable  mortality  in  Slovenia  in  2022 
was  higher  than  the  EU  average,  while 
treatable mortality was lower. After peaking at 
212  deaths  per  100  000  population  in  2021, 
mortality  from  preventable  causes  decreased  to 

Control 

Programme 
approach 

168  per  100  000  in  2023,  below  the  pre-
pandemic  levels  (173  per  100  000  in  2019). 
Meanwhile, the treatable mortality was lower than 
the  EU  average  (see  Graph  A15.1).  At  the  same 
time,  spending  on  prevention  in  Slovenia  in  2023 
accounted  for  3.3%  of  total  spending  on  health, 
below the EU average of 3.7% (of which 0.9% was 
spent  on  immunisation).  Cancer  prevention  forms 
a  significant  aspect  of  Slovenia's  health  strategy, 
with  screening  programmes  for  breast,  cervical 
and colorectal cancer achieving participation rates 
well  above  the  EU  average.  Slovenia's  National 
a 
Cancer 
presents 
population-focused 
emphasising 
prevention,  early  detection  and  standardised 
treatment,  and  ensuring  fair  access  to  advanced 
care.  Simultaneously,  a  National 
oncology 
Committee  for  Cancer  Screening  was  established 
to guide evidence-based early detection efforts. In 
addition,  mortality  linked  to air pollution  is  high 
in 
Slovenia 
(see 
EU4Health-funded joint actions aimed at reducing 
the  burden  of  cardiovascular  diseases,  cancer, 
diabetes  and  respiratory  diseases,  and  improving 
mental  health.  The  EU  Technical  Support 
Instrument  is  also  providing  support  for  the 
development  and  implementation  of  strategies, 
procedures  and  actions  focused  on  organised, 
population-based screening for lung, prostate and 
cervical cancer. 

participates 

Annex 8). 

Graph A15.2: Treatable mortality 

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

Smoking, 

A  considerable  proportion  of  deaths 
in 
Slovenia is closely linked to behavioural risk 
factors. 
alcohol 
consumption  and  low  levels  of  physical  activity 
contribute to over one third of all deaths. Obesity 
rates,  particularly  among  adolescents,  exceed  the 
EU  average,  with  18%  of  adults  and  25%  of 

dietary 

risks, 

109 

80.680.781.382.082.1808080.681.481.520202021202220232024SloveniaEU89.372.069.866.964.067.094.889.291.793.389.786.8201420192020202120222023per 100 000 populationSloveniaEU 
 
      
      
 
 
early 

focus 

is  on 

Its 
harm 

the  negative 

through 
intervention 

15-year-olds  affected (367).  This,  together  with 
poor  diet,  contributes  to  high  incidence  rates  of 
cardiovascular  diseases.  Initiatives  like  Slovenia’s 
National  Nutrition  and  Physical  Activity  Strategy 
(2015-25)  aim 
these  concerns. 
to  address 
Alcohol-related  causes  contributed  to  15%  of 
preventable  deaths  in  Slovenia  in  2022.  Although 
alcohol  consumption  is  close  to  the  EU  average, 
standardised death rates  linked  to alcohol-related 
mental disorders are among the highest in the EU 
(around five times higher than the EU average). To 
mitigate 
impact  of  alcohol 
consumption,  Slovenia  has  authorised  a  2025–26 
Programme for Limiting Alcohol  Consumption and 
reducing 
Reducing  Harm. 
strengthened 
alcohol-related 
public 
and 
prevention, 
awareness  measures.  A  variety  of  programmes 
aimed  at  preventing,  reducing  exposure  to  and 
quitting  smoking  have  also  been  carried  out, 
for 
including 
Decreasing  the  Consequences  of  Tobacco  Use  for 
a Tobacco-Free Slovenia. The 2025–2035 National 
Strategy  for  Health  Literacy  aims  to  further 
to 
improve  public  awareness  and  access 
preventive  services.  Mental  and  behavioural 
disorders due to alcohol and particularly drug use 
are higher than the EU  average. Suicide  rates are 
also  a  cause  for  concern,  remaining  among  the 
highest in the EU. The 2018-2028 National Mental 
Health  Programme  is  partially  addressing  mental 
health  challenges.  Despite  the  range  of  health 
programmes  available  in  Slovenia,  low  levels  of 
public  awareness  and  participation  rates  pose  a 
significant challenge. 

latest  2021-30  Strategy 

the 

Health  expenditure  in  Slovenia  was  lower 
than  the  EU  average  in  2023,  with  recent 
reforms  expected  to  increase  the  share  of 
public  spending.  In  2023,  health  spending  per 
inhabitant  (adjusted  for  differences  in  purchasing 
power)  was  below 
(see 
Table A15.1).  Due  to  population  ageing,  public 
healthcare  spending  in  Slovenia  is  projected  to 
increase, 
fiscal 
sustainability, as highlighted by the 2025 CSR (see 
Annex  2).  87%  of  health  spending  was  publicly 
funded in 2024 and it was the first year since the 
transformation  of  the  voluntary  complementary 
health  insurance  scheme  into  a  social  health 

the  EU  average 

concerns 

raising 

about 

(367) OECD/European Observatory on Health Systems and Policies 
(2025), Country Health Profile 2025: Slovenia. State of 
Health in the EU. 

insurance  scheme  financed  by  a  new  mandatory 
contribution.  This  change  is  expected  to  have  a 
major  impact  on  the  share  of  publicly  funded 
health  expenditure.  Key  reforms  include  tighter 
regulation  of  sickness  benefits  and  absenteeism, 
stronger  provider  oversight,  clearer  division  of 
budgetary  responsibilities,  and  new  tools  for  cost 
analysis  and  pricing,  all  supporting  transparency, 
discipline,  and  value  for  money. These  measures 
could  potentially  address  the  2025  CSR  on  fiscal 
sustainability.  The  share  of  out-of-pocket  (OOP) 
payments  remains  below  the  EU  average  (12.4% 
of  total  health  expenditure  in  2023  vs  an  EU 
average  of  15%).  The  largest  share  of  OOP 
payments  went  on  outpatient  medical  goods 
(38%),  followed  by  outpatient  care  (26%)  and 
dental care (11%) (368).   

The  largest  share  of  health  expenditure  – 
above  the  EU  average  –  went  on  outpatient 
care.  This,  together  with  a  relatively  low  number 
of  hospital  beds  (343  per  100 000  population  in 
2023, lower than the EU average of 440) is partly 
a result of reforms over the past decade aimed at 
transitioning  patients  from  hospital  settings.  In 
2023,  investments  in  health  capital  formation,  as 
a  share  of  total  health  expenditure,  were  well 
below the EU  average. This could partially explain 
the  low  availability  of  medical  imaging.  However 
the situation is improving using, among others, the 
EU  funds.  RRP  investments  are  being  directed 
infrastructure  of  public 
towards  the  physical 
healthcare 
equipment, 
institutions,  medical 
including linear accelerators for Maribor university 
clinic,  emergency  and  preventive  health  services, 
and the digitalisation of healthcare. 

and 

research 

Slovenia’s  pharmaceutical  sector 
is  a 
significant contributor to the EU’s trade and 
landscape,  marked  by  robust 
innovation 
employment 
activities. 
Employment 
in  pharmaceutical  manufacturing 
consistently exceeds the EU average, with Slovenia 
being one of the powerhouse countries driving the 
sector’s  growth.  The  country  demonstrates  strong 
research  and  innovation  metrics,  particularly  in 
patents  granted 
for  pharmaceuticals,  where 
Slovenia is well above the EU average. The country 
has  a  strong  manufacturing  base,  particularly  in 
generics and biosimilars. Clinical trial participation 
is  also  noteworthy,  maintaining  a  relatively  high 
level of trials per million population in 2024. Trade 

(368) Country Health Profile 2025: Slovenia - see earlier footnote. 

110 

 
 
 
Table A15.1: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 2023 data (or latest available). 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 Portugal (licensed to practice) and Slovakia (professionally active). Latest data 
update on nurses for Belgium and Sweden: 2022; for France: 2021; for Luxembourg: 2017. 
** latest available 10-year trend: ratio 2023/2014 or 2024/2013; a factor of 2.00 means that it has doubled in 10 years. 
***‘Available hospital beds’ covers somatic care, not psychiatric care. 
Source: Eurostat 

performance  is  a  highlight,  with  extra-EU  exports 
showing  exceptional  growth,  well  above  the  EU 
average  in  2025  (66.3%  vs  13.9%),  positioning 
Slovenia  as  one  of  the  top  contenders 
in 
pharmaceutical  export  growth  within  the  EU. 
Despite  rising  pharmaceutical  spending,  Slovenia 
has implemented pricing and funding mechanisms, 
supported  by  the  Slovenian  Quality  Health  Care 
Agency,  to  maintain  affordability  and  ensure 
sustainable growth in the sector. 

Challenges  in  accessing  healthcare  persist, 
particularly  in  rural  areas. 
In  2025,  the 
proportion  of  the  Slovenian  population  reporting 
unmet needs for medical care was higher than the 
EU  average  (3.2%  vs  2.4%).  The  main  reason  for 
unmet  needs  is  long  waiting  times.  The  share  of 
people  with  medical  needs  who  reported  unmet 
needs is also higher than the EU average (4.3% vs 
3.6%  at  EU  level).  Comparatively  high  unmet 
needs  for  medical  examination  are  reported  in 
rural  areas.  This  is  also  linked  to  the  issue  that 
only  41%  of  Slovenia’s  population  live  within  a 
10-minute  drive  of  a  hospital  (see  Annex 18). 
Waiting  times 
in  Slovenia  are  currently  not 
measured  in  a  reliable  or  consistent  way  and 
require  refinement.  A  reform  of  the  booking 
system  is  underway,  and  more  accurate  data  are 
expected from June 2026. Access to primary care 
remains  challenging,  although  incentives  for  GPs 
to increase patient lists have shown early positive 
results.  

and 

research 

incentives, 

strengthening 
services,  particularly  by 
primary care and optimising specialised care 
provision.  The  2024-2031  Primary  Healthcare 
Development  Strategy  tackles  challenges  such  as 
ageing  population,  technological  advances  and 
changing patient needs, focusing on strengthening 
the  primary  healthcare  workforce.  It  aims  to 
improve  equitable  access,  promote  health  and 
empower  communities,  while  also  prioritising 
integrated,  high-quality  care,  better  management, 
financial 
digital 
transformation. Recent amendments to the Health 
Services  Act  further  support  these  objectives  by 
reinforcing  the  role  of  public  providers,  reducing 
dual  practice  and  clarifying 
the  boundaries 
between  public  and  private  provision.  The 
introduction  of  non-profit  public  providers  and  a 
revised  concession  model  is  expected  to  improve 
equity  of  access  and  limit  patient  diversion  to 
private  services.  In  tertiary  care,  international 
comparisons  point  to  the  need  to  strengthen 
coordination  among  providers  and  foster  closer 
cooperation  with  academic  institutions.  Advancing 
these  areas  could  support  a  better  concentration 
of  highly  specialised  services,  ensuring  high-
quality  care  for  the  most  complex  cases  (369). 
Slovenia  participates  in  the  EU4Health-funded 
CIRCE joint action (370), through which EU countries 
share good practices and expertise in primary care. 

(369) Best practice in the regulation and financing of tertiary care 
based on case studies from five OECD Countries | OECD. 

Slovenia is advancing reforms to improve the 
organisation  and  delivery  of  healthcare 

(370) Home | CIRCE-JA. 

111 

2020202120222023202410-year change**EU average* (latest year) Cancer mortality per 100 000 population290.7277.3280.5286.9n.a.0.96233.1 (2023)Mortality due to circulatory diseases per 100 000 population 377.1 361.2 332.9 352.0n.a.0.78313.0 (2023)Current expenditure on health, purchasing power standards, per capita2 4432 6972 9563 1213 4171.813834.9 (2023)Public share of health expenditure, % of current health expenditure 73.2 73.8 74.0 73.6 87.01.2180.6 (2023)Spending on prevention, % of current health expenditure 3.25.44.73.3n.a.1.073.7 (2023)Available hospital beds per 100 000 population*** 364 361 350 343n.a.0.89440 (2023)Doctors per 1 000 population*3.33.33.43.5n.a.1.284.3 (2023)*Nurses per 1 000 population* 4.3 4.5 4.9 5.1n.a.2.117.6 (2023)*Mortality at working age (20-64 years), % of total mortality13.414.614.113.813.20.7214.3 (2023)Consumption of antibiotics in the community and hospital sectors,      defined daily doses per 1 000 inhabitants 10.2 10.2 12.4 13.4 14.41.0820.3 (2024) 
 
 
      
 
Quality of care is closely looked at. According 
to  the  2023-24  OECD  Patient-Reported  Indicator 
Survey  (PaRIS) (371),  89%  of  patients  in  Slovenia 
were  satisfied  with  the  quality  of  care  and  85% 
with  person-centred  care.  Trust  in  the  health 
system,  confidence  in  managing  health,  and  care 
coordination  received  ratings  of  63%,  61%  and 
57%,  respectively,  similar  to  other  EU  countries, 
with  overall  positive  experiences  reported  but 
room  for  improvement  identified.  In  line  with  its 
RRP,  Slovenia  adopted  the  2021-31  National 
Strategy for Quality and Safety in Healthcare and 
passed  the  Healthcare  Quality  Assurance  Act  in 
November  2024.  An  independent  body  to  monitor 
and  control  quality  in  the  healthcare  system  was 
also established.  

Shortages of health workers in Slovenia limit 
the  availability  of  care.  The  number  of  nurses 
per inhabitant in Slovenia is below the EU average 
(5.1  per  1 000 population  vs  7.6 (372),  as  is  the 
number  of  doctors  (3.5  per  1 000 population  vs 
4.3  in  2023).  Shortfalls  in  primary-care  doctors 
and  hospital  nurses  in  Slovenia  are  linked  to  the 
low  appeal  of  these  careers,  including  relatively 
low pay. Graduation numbers for both doctors and 
nurses remain among the lowest in the EU. Health 
professionals  in  Slovenia  report  some  of  the 
highest  rates  of  depression  across  the  EU (373). 
Workforce  constraints  are  recognised  as  affecting 
service  quality,  care  continuity  and  patient 
satisfaction. Slovenia is making efforts to improve 
the  situation  through  higher  wages,  improved 
working  conditions,  easier  recruitment  of  foreign 
workers, 
schemes  and  actions 
addressing  workplace  violence.  These  measures 
could potentially address the 2025 CSR on working 
conditions  in  the  care  sector.  Slovenia  lacks  a 
complete,  up-to-date  overview  of 
its  health 
workforce.  However,  a  forecasting  model  is  being 
developed.  In  2025,  Slovenia  also  adopted  a  new 
Act 
Professional 
Recognition 
Qualifications  in  Healthcare  -  intended  to  reduce 
administrative  barriers  and  processing  times  for 

scholarship 

the 

on 

of 

foreign-trained  health  professionals  seeking  to 
practise in Slovenia, while retaining high standards 
for  assessing  competence.  Investments  under  the 
Slovenian  RRP  focus  on  improving  the  skills  of 
health  personnel,  enabling  nurses  to  work  more 
doctors’ 
independently 
competencies  in  primary  care.  Moreover,  Slovenia 
participates in the EU4Health-funded HEROES joint 
action (374), through which EU countries share best 
practices  and  expertise  on  health  workforce 
planning. 

expanding 

and 

by 

Slovenia  aims  to  scale  up  the  digitalisation 
of  its  health  system,  with  support  from  EU 
programmes.  The  shares  of  people  accessing 
their  personal  health  records  online  and  using 
online health services (excluding phone) instead of 
in-person  consultations  increased  between  2020 
and  2024.  However,  their  use  by  patients  is 
slightly below the EU average. In December 2025, 
Slovenia adopted the Healthcare Digitalisation Act, 
which  establishes  a  centralised  national  digital 
health  infrastructure,  including  a  dedicated  public 
entity  responsible  for  managing  core  digital 
systems. It aims to improve healthcare access and 
quality 
interoperability, 
strengthening 
standardising  data  across  national  health 
registries  and  enabling  secure  data  exchange  for 
care delivery,  public health and research. The RRP 
investments  focus  on  improving  access  to  high-
quality  healthcare  data  by  integrating  digital 
communication  between 
services,  enhancing 
patients  and  stakeholders  and  using  real-time 
data  for  quality  monitoring  and  planning.  Key 
initiatives  include:  (i)  expanding  the  Patient  Data 
Register;  (ii)  creating  a  central  image  storage 
system; (iii) implementing a telemedicine platform; 
(iv)  upgrading  the  eMedical  appointment  system; 
and  (v)  boosting  digital  skills  in  healthcare  (see 
Annex 13). In addition, Slovenia participates in joint 
actions  and  benefits  from  direct  grants  under 
EU4Health 
semantic 
improve 
interoperability  of  health  data  and  facilitate  the 
implementation  of  the  European  Health  Data 
Space. 

the 

to 

(371) Patient-Reported Indicator Surveys | OECD. 

(372) Under the newly adopted Eurostat definition of nurses 

(following the EU Directive 2005/36/EC on the recognition of 
professional qualifications) nurse density numbers shown 
below are signifcantly lower than numbers using a broader 
definition, as for instance used for the OECD health statistics 
(10.5 compared to 8.4 at the EU). 

(373) Mental Health of Nurses and Doctors survey in the European 

Union, Iceland and Norway. 

(374) The project – JA HEROES | Health Workforce Planning Project. 

112 

 
 
 
ANNEX 16: HOUSING 

levels 

affordability 

Housing 
disproportionately 
affects vulnerable people at risk of poverty, 
with housing quality also a concern. The house 
price-to-income 
increased  by  16.9% 
between  2015  and  2024,  compared  with  an 
average  increase  of  5.7%  in  the  EU,  and  are 
currently  among  the  highest  in  the  EU.  The 
proportion of rent to disposable household income 
decreased slightly from 17.4% to 16.8% between 
2018  and  2025  and  is  below  the  EU  average  of 
22.5%.  The  proportion  of  people  facing  housing 
cost overburden in Slovenia was well below the EU 
average  (3.5%  vs  the  EU  average  of  7.7%  in 
2025) (375)  amid  easing  energy  and  utility  price 
growth. However, the housing cost overburden rate 
was still about five times higher for those living in 
households  at  risk  of  poverty  or  social  exclusion 
(18.7%) and also much higher for tenants renting 
at  market  prices  (19.7%).  In  2025,  households 
experiencing  poverty  spent  a  much 
larger 
proportion  of  their  disposable  income  on  housing 
(27.3%) compared with other households (10.2%). 
In  2023,  18.5%  of  the  population  in  Slovenia,  vs 
the  EU  average  of  15.6%,  experienced  housing 
deprivation, defined as homes with a leaking roof, 
damp walls, floors or foundations or rot in window 
frames or floors. The proportion is even higher for 
the  lowest-income  households  (29.3%  in  2023) 
and for families with dependent children. The issue 
is  particularly  pronounced  in  the  Pomurska  region 
and  in  south-east  Slovenia (376).  The  proportion  of 
people  unable  to  keep  their  homes  adequately 
warm was at 3.6% in 2025 below the EU average 
of  8.8% (377).  However,  the  proportion  was  about 
three times higher for those in households at risk 
of  poverty  and  social  exclusion  (10%).  In  2025, 
6.3% of individuals faced arrears on utility bills, vs 
the  EU  average  of  9.2%,  which  marks  an 
improvement  of  4  percentage  points  compared 
with  2020.  Under  the  2021-2027  cohesion  policy 
programme, Slovenia allocated EUR 23.5 million to 

measures  addressing  energy  poverty,  including 
energy efficiency renovations targeting vulnerable 
households.  Therefore,  it  would  be  beneficial  to 
pay  attention  to  improving  housing  quality  while 
keeping housing affordable, especially for those at 
risk of poverty. 

Housing markets developments 

House  prices,  as  well  as  rental  prices, 
continue  their  steep  increase.  Between  2015 
and  2024,  the  nominal  house  prices  doubled  for 
Slovenia,  while  it  increased  only  by  50%  for  the 
EU-27. However, the rate of increase slowed down 
from  2023,  with  modest  4.3%  year-on-year 
growth  recorded  in  2025.  The  Bank  of  Slovenia 
(BoS)  noted  that  residential  real  estate  prices  in 
the second quarter of had increased by more than 
50% in nominal terms compared with 2008, while 
they  had  increased  by  only  12.6%  in  real  terms. 
The  strong  price  increase  in  recent  years  in 
Slovenia  has  resulted  in  a  higher  price-to-income 
ratio  in  the  country  than  in  the  EU-27,  which  has 
not been the case since the financial crisis. In fact, 
Slovenia had one of the highest ratios in the EU in 
2024,  exceeding  its long-term  average by  around 
5%,  while  the  ratio  for  the  EU  as  a  whole 
(including  existing  and  new  rental  contracts)  have 
increased  significantly  since  2021  due  to  a 
shortage  of  available  housing,  especially  in  large 
cities  where  residential  and  tourist  demand 
compete.  Demand  for  rental  housing  is  rising 
further 
student 
accommodation, the inflow of foreign workers and 
an 
in  the  number  of  single-person 
increase 
households. 

insufficient 

because 

of 

(375)The overburden rate should be read together with the tenure 
structure  (homeowner,  tenants),  that  may  differ  across 
country and regions. 

(376) One of the main reasons for poor housing condition is the old 
and  poorly  maintained  housing  stock.  About  80%  of 
dwellings  were  built  before  1990  and  only  about  2% 
between 2016 and 2021, with the highest proportion in the 
Central  Slovenia  region  and  the  lowest  in  the  Zasavska 
region.  See 
Institute  of  Macroeconomic  Analysis  and 
Development, Development report 2024. 

(377) Eurostat:  ilc_mdes01_r.  The  share  of  those  unable  to  keep 
their homes adequately warm was two times higher in East 
Slovenia (4.2% in 2024) compared to West Slovenia (2.4%). 

113 

 
 
 
 
 
Graph A16.1: House prices, rents and price-to-
income evolution in SI and EU27 since 2005 

Source: Eurostat 

Both  the  square  metre  prices  of  dwellings 
and  house  prices  continue  to  rise,  with  the 
former reaching new records. In the first half 
of 2025, the country-wide median price of a 
dwelling  on  the  secondary  market  reached 
EUR 3 070/m²,  exceeding  the  EUR 3 000/m² 
threshold  for  the  first  time.  In  Ljubljana,  the 
average  price  of  a  second-hand  dwelling 
(EUR 4 890/m²) increased in the first half of 2025 
by  EUR 520/m²  compared  with  the  first  half  of 
2024.  In  the  same  period,  the  median  price  of  a 
house 
in  Slovenia  was  EUR 180 000,  having 
increased by EUR 20 000 compared with the same 
period  in  2024 (378).  Between  the  second  half  of 
2022  and  the  first  half  of  2025,  the  prices  of 
dwellings,  houses  and  building  land  increased  by 
24%,  22%  and  23%,  respectively 
(Geodetic 
Administration  2025.  According  to  indicative  data 
of  the  Geodetic  Administration,  more  than  2  000 
new  housing  units  were  completed  in  Slovenia  in 
the  first  half  of  2025  and  around  4 400  were 
under  construction.  It  is  predicted  that  housing 
investment needs will remain substantial, with the 
Commission  estimating  a  cumulative  housing 
construction  gap  of  almost  63 000  dwellings  in 
2025-2035,  reflecting  accumulated  demographic-
driven shortfalls net of projected construction (379). 

Growth  in  housing  loans  continued  to  recover  in 
2025. The increased demand for loans in the first 
half  of  2025  was  driven  by  the  fall  in  interest 
rates and by a rise in consumer confidence. At the 
end  of  June  2025,  the  stock  of  housing  loans 
totalled  EUR 8.8  billion.  The  fall  in  interest  rates, 
low  unemployment  and 
rising  wages  have 
increased  the  number  and  value  of  residential 
property  sales  by  30.5%  and  32.9%,  respectively 
in the first three quarters of 2025 (SORS). 

Activity  in  residential  construction  remains 
down in year-on-year terms. The BoS does not 
expect  a  sharper 
in  the  supply  of 
increase 
residential  properties  over  the  next  few  years,  as 
the  number  of  new  building  permits 
issued 
remains  relatively low  despite  a  slight increase  in 
2025.  The  corresponding  floor  space  was  even 
lower than in 2024 (380). 

Structural policies 

types  of  public 

Social and affordable housing construction is 
increasing but still falls significantly short of 
demand. Between 2015 and 2024, the supply and 
provision  of  additional  non-market  housing  have 
lagged  behind  demand.  Currently,  the  stock  of 
different 
rental  apartments 
amounts  to  just  over  36 000  units,  representing 
around  4%  of  the  housing  stock.  Slovenia  thus 
falls  significantly  behind  the  EU  average,  where 
such units represent around 8% of the stock. There 
are also noticeable regional differences in both the 
number and quality of these units. An even greater 
challenge is the pace of providing new units, which 
lags  far  behind  needs.  Since  2022,  2 000  public 
rental  dwellings  have  been  built,  with  just  over 
2 500 dwellings under construction or in the phase 
before  permitting.  The  government’s  newly 
proposed 2026-2035 national housing programme 
aims  to  deliver  an  additional  20 000  non-market 
apartments  over  the  next  10  years,  namely: 
16 000 public rental units (381) and 1 000 units to 
be  activated  through  the  renovated  public  rental 
service. 

(378) Geodetic Administration of the Republic of Slovenia; Semi-

annual report on the Slovenian real estate market for 2025; 
https://www.gov.si/novice/2025-10-17-polletno-porocilo-o-
slovenskem-trgu-nepremicnin-za-leto-2025/. 

(379) Balouktsi et al. (2026) Housing investment needs in the EU, 

JRC Technical Report 144703. 

(380) Bank of Slovenia, Review of macroeconomic developments, 
October 2025, Review of macroeconomic developments, 
October 2025 | Banka Slovenije. 

(381) There is no definition yet for the term ‘“affordable housing” 

for the purpose of the national housing programme; it will be 
defined over the course of the housing programme. 

114 

751001251501752002252500507091113151719212325Index (2005 = 100)Nominal prices SINominal prices EU27Rental prices SIRental prices EU27Price-to-income ratio SIPrice-to-income ratio EU27 
   
 
 
Productivity in Slovenia’s construction sector 
low  compared  with  other  European 
is 
countries  and  there  are  significant  labour 
shortages.  Slovenia  had  one  of  the  highest 
vacancy rates in the construction sector in the EU 
(4.5% in 2025) which was also well above the EU 
average  (2.8%  in  2025) (382).  Slovenia  reports 
labour  shortages  for  several  construction  related 
including  construction  supervisors, 
occupations, 
carpenters  and 
joiners,  building  construction 
labourers, concrete placers, concrete finishers and 
related  workers,  civil  engineers,  civil  engineering 
labourers,  electrical  engineers  and  technicians, 
floor  layers  and  tile  setters,  insulation  workers, 
roofers and plumbers and pipe fitters (383). Labour 
shortages 
in  construction  sectors  stem  from 
skills 
demographic 
mismatches,  a  tight  labour  market  overall,  high 
reliance  on  foreign  workers  (with  almost  half  of 
workers  in  construction  being  foreigners (384)  job 
below-average 
attractiveness 
wages (385)(386).  To  address  these  issues,  it  would 
be  beneficial  to:  (i)  align  the  education  and 
vocational  system  more  strongly  with  current 
market  needs,  (ii)  develop  the  workforce;  and  (iii) 
improve 
job  attractiveness  for  the  domestic 
workforce.  

pressures, 

structural 

issues 

and 

Vulnerable groups 

There  is  a  severe  shortage  of  social  and 
affordable housing, which represents a long-
term  challenge.  Non-profit  housing  supply 
constraints  are  hindering 
the  provision  of 
affordable  and  social  housing  for  vulnerable 
groups, 
reduce 
as 
homelessness (387).  To  date,  no  national-level 

as  well 

efforts 

to 

(382) [jvs_q_nace2] Job vacancy statistics by NACE Rev. 2 activity 

- quarterly data (2001-2025). 

(383)ELA EURES report on Labour Shortages and Surpluses. 2024.  

(384) Pomanjkanje-kadrov-v-gradbenistvu.pdf. 

(385) Plače zaposlenih pri pravnih osebah, julij 2025: The average 
monthly gross salary in the construction sector in July 2025 
was below the national average by almost 20%, while 
construction is the fifth -worst industry in terms of salaries. 

(386) Zaposlovanje v gradbeništvu raste, plače pa ostajajo 

skromne | Sobotainfo.com. 

(387) The latest national estimates found that 3 545 people, 

representing 0.17% of the total population, were homeless. 
According to 2022 data, there were 352 accommodation 

database has been set up that would allow waiting 
times  to  be  estimated.  According  to  a  survey 
conducted  in  2025, there is  an estimated  need  in 
Slovenia for 20 407 public rental apartments. This 
includes  non-profit  rental  housing  units  (11 719), 
housing units intended to temporarily address the 
housing  needs  of  the  socially  disadvantaged 
(1 028), designated housing units for young people 
(3 790),  purpose-built  housing  units  for  older 
people (2 587) of which 1 550 would be serviced, 
housing units for employees (369) and other types 
of  public  rental  housing  units  (914).  There  is  a 
need  for  non-profit  rental  apartments  in  all 
regions.  The  need  is  highest  in  the  central  region 
(4 347), with the capital Ljubljana at the forefront. 
Ljubljana  is  followed  by  the  (388)  Karst  region  (1 
409)  and  the  Podravska  region  (1 333).  The 
highest  need  for  public  rental  apartments  is  in 
larger  cities  (Ljubljana,  Koper,  Maribor),  where 
there  is  the  greatest  demand.  Under  the  National 
Recovery and Resilience Fund, Slovenia committed 
to  establishing  the  conditions  for  increasing  the 
stock  of  public  rental  housing  through  a  housing 
policy  reform.  This  increase  is  to  be  achieved, 
purchasing, 
among 
renovating or building non-profit flats. This reform 
package  also  includes  the  construction  of  480 
flats,  financed  by  the  Recovery  and  Resilience 
Facility  to  improve  access  to  non-profit  rented 
housing  primarily  for  young  families  and  other 
full 
disadvantaged 
implementation  of 
remains 
subject  to  monitoring  (389).    The  Just  Transition 
Fund  allocates  EUR 6.5  million  for  social  and 
affordable  housing  to  the  Housing  Fund  of  the 
Republic  of  Slovenia.  This  enables  apartments  to 
be  purchased  or  transferred  from  closing  coal-
related  companies  in  SAŠA  to  protect  existing 
tenants,  preserve  affordable  housing  stock  and 
ensure  continued  public  rental  provision,  while  in 
Zasavje  it  supports  the  renovation  of  existing 
housing  units 
functionality  and 
improve 
accessibility. 

groups.  However, 

these  measures 

through 

things, 

other 

the 

to 

places for homeless people in Slovenia or 16.7 per 100 000 
inhabitants. 

(388) Source: data provided by the SIovenian authorities during the 

Semester mission. An additional 4 956 public rental 
apartments are needed in Ljubljana (of which, 4 010 non-
profit rental apartments), 1 056 public rental apartments in 
Maribor (of which, 871 non-profit rental apartments) and 2 
879 public rental apartments in Koper (of which, 1 100 non-
profit rental apartments). 

(389) 2025 Country report. 

115 

 
 
 
 
Graph A16.2: Housing affordability selected indicators 

Source: Eurostat and European Commission calculations. The overburden rate should be read together with the tenure structure 
(homeowner, tenants), that may differ across country and regions. 

The 2025 legislative changes (a new housing 
financing  law  and  updates  of  the  Housing 
Act)  ensure  systematic  financing  of  up  to 
EUR 100 million per year from 2025 to 2035 
specifically  for  public  rental  housing  to  help 
reach the target of 20 000 units by 2035. The 
government will also reallocate cohesion funds for 
this 
additional 
providing 
EUR 42 million for the construction of public rental 
apartments and public rental assisted apartments.  

purpose, 

an 

116 

 
 
HORIZONTAL 
ANNEX 17: SUSTAINABLE DEVELOPMENT GOALS 

social 

fairness 

This  annex  assesses  Slovenia’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. 

Slovenia performs well on most SDGs related 
to  competitiveness  (SDGs 4,  8,  9)  but  still 
needs  to  catch  up  with  the  EU  average  for 

Graph A17.1: Progress towards the SDGs in Slovenia 

SDG 9. On SDG 9, Slovenia has made progress on 
R&D  and  innovation,  namely  in  increasing  gross 
domestic expenditure on R&D from 2.06% of GDP 
in  2019  to  2.16%  in  2024,  but  this  is  still  below 
the  EU  average  of  2.24%.  It  has  also  made 
significant  progress  in  increasing  the  share  of 
households  with  a  high-speed  internet  connection 
from 63.8% in 2019 to 79.6% in 2024. 

Although  it  performs  well  on  the  quality  of 
education (SDG 4) there are some challenges 
related  in  particular  to  adult  digital  skills 
and  learning  outcomes.  The  percentage  of 
adults with at least basic digital skills is below the 
EU  average  (46.5%  in  2025;  EU  average:  60.4%) 
and Slovenia needs to catch up. The percentage of 
the  population  aged  25  to  34  completing  tertiary 
education  has  improved  from  40.7%  in  2023  to 
42.8% in 2025 but remains slightly below the EU 
average of 44.8%. The measures under Slovenia’s 
recovery  and  resilience  plan  (RRP)  will  drive 
progress here by helping to digitalise the country’s 

For a detailed progress assessment towards the various SDGs, see the annual Eurostat report ‘Sustainable development in the 
European Union’; for extensive data on the short-term SDG progress of EU countries, see Key findings – Sustainable development 
indicators; for an interactive visualization of SDG progress of EU countries, see SDG country overview. 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 or six 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 29 April 2026. Data refer mainly to the period 2019-2024 or 2019-2025. Data on SDGs may 
vary across the report and its annexes due to different cut-off dates. 

117 

 
 
 
 
 
 
 
public and private sector and boost digital skills. 

in 
energy 

increasing 
in  gross 

Slovenia  performs  well  or  is  improving  on 
most  of  the  SDGs  related  to  sustainability 
(SDGs  2,  6,  7,  9,  11,  13,  15)  but  needs  to 
catch  up  with  the  EU  average  on  four  of 
them  (SDGs  2,  9,  12,  13).  Slovenia  has  made 
the  share  of 
some  progress 
energy 
renewable 
consumption from 22% in 2019 to 25.1% in 2023, 
although  this  decreased  slightly  to  25%  in  2024 
(SDG 7). Moreover, it has reduced its energy import 
dependency a little from 52.0% in 2019 to 46.4% 
in 2024. Through the RRP, Slovenia is expected to 
boost  its  production  of  renewable  energy  by 
investing  in  the  distribution  grid,  which  would 
lower  wholesale  electricity  prices  and  strengthen 
the case for electrification across sectors. 

final 

Slovenia has made some progress on climate 
action  (SDG 13)  over  the  last  few  years.  It 
has  reduced  its  net  greenhouse  gas  emissions 
from 6 tonnes per capita in 2019 to 5.2 tonnes in 
2024  but  still  needs  to  catch  up  with  the  EU 
In  particular,  the 
average  on  other  aspects. 
average  CO2  emissions  per  kilometre  from  new 
passenger cars was 128.2g in 2024 (EU: 107.9g). 

on 

infrastructure 

improvements 

industry, 
Despite 
innovation  and 
(SDG 9), 
Slovenia  still  needs  to  catch  up  with  the  EU 
average on certain indicators. In particular, the 
share  of  buses  and  trains  in  inland  passenger 
transport  is  very  low  (14.5%  in  2023  against  the 
EU  average  of  16.9%)  despite  having  increased 
from  13.9%  in  2022.  Slovenia’s  RRP  contains 
several  measures  aimed  at  increasing  the  use  of 
public  transport  and  significantly  improving  the 
country’s railway infrastructure, which will help the 
country tackle this challenge. 

Slovenia  needs  to  catch  up  with  the  EU 
average  on  responsible  consumption  and 
production  (SDG 12)  (see  Annex 8).  Particularly 
noteworthy is the increase in generation of waste 
from  3  964 kg  per  capita in  2018  to  5  398 kg in 
2022 (EU average 4 981 kg).  

Slovenia  performs  well  or  is  improving  on 
some  SDGs  related  to  social  fairness 
(SDGs 1, 7, 8, 10) but needs to catch up with 
the EU average on good health and wellbeing 
and  gender  equality  (SDG  3,  5).  Slovenia 
performs well on poverty and basic needs (SDG 1). 

gender 

fairness-related 

While  the  percentage  of  people  at  risk  of  poverty 
or social exclusion increased from 13.7% in 2023 
to 14.4% in 2024, it is still significantly lower than 
the EU average of 21%. The country has improved 
on  most 
equality 
indicators  (SDG 5),  but  it  remains  below  the  EU 
average,  particularly  on 
the  percentage  of 
positions  held  by  women  in  senior  management 
which was 29.2% in 2025 against the EU average 
of  33.6%.  The  gender  gap  for  tertiary  education 
attainment  stands  above  the  EU  average  at  23.8 
pp  in  2025  (EU  average  11.3  pp)  with  more 
females attaining tertiary education.  

Slovenia’s  quality  of  education  (SDG 4)  is 
above  the  EU  average,  though  there is  room 
the 
improvement.  The  percentage  of 
for 
population  aged  25  to  34  completing  tertiary 
education reached 42.8% in 2024, close to the EU 
average  of  44.1%.  According  to  the  2022 PISA 
survey, about a quarter of Slovenian students lack 
the  minimum  level  of  proficiency  in  mathematics 
and reading. While this performance is better than 
the  EU  average,  Slovenia’s  performance  in  the 
PISA  survey  categories  has  deteriorated.  The 
percentage of early leavers from education stands 
at  5.5%  in  2025,  well  below  the  EU  average  of 
9.1%, but is higher than the 4.0% of 2022. 

Slovenia  performs  well  on  SDGs  related  to 
macroeconomic  stability  (SDGs 8,  16)  and, 
although it is improving, it needs to catch up 
with  the  EU  average  on  ‘partnerships  for 
goals’  (SDG 17).  The  country  performs  well  on 
indicators measuring employment (SDG 8) and has 
in 
low  percentage  of  young  people  not 
a 
employment,  education  or  training  compared  with 
the EU average (2025 figures: 7.6% vs 11%). The 
long-term unemployment rate is also below the EU 
average (1.1% in 2025 against the EU average of 
1.9%).  On  SDG 16  (Peace,  justice  and  strong 
institutions),  the  level  of  perceived  independence 
of  the  justice  system  in  Slovenia  increased  from 
39% in 2019 to 56% in 2025, higher than the EU 
average  of  54%.  On 
‘Partnership  for  goals’ 
(SDG 17),  Slovenia  is  improving.  For  example,  its 
general government gross debt fell from 68.4% of 
GDP  in  2023  to  65.7%  in  2025.  However,  the 
share  of  households  with  high-speed  internet 
connection remains slightly below the EU  average 
(79.6% in 2024, EU average 82.5%). As the SDGs 
form  an  overarching  framework,  any  links  to 
relevant  SDGs  are  either  explained  or  depicted 
with icons in the other annexes. 

118 

 
ANNEX 18: COMPETITIVE REGIONS 

Regional development trends 

its 

Slovenia  has  strengthened 
relative 
economic  performance  in  recent  decades, 
with  a  slow  convergence  towards  the  EU 
average,  but  the  pace  of  growth  has  been 
uneven  across  regions.  The  country’s  GDP  per 
head  (in  PPS)  increased  from  87%  of  the  EU 
average 
in  2024, 
in  2004  to  around  90% 
supported  by  a  strong 
industrial  base,  high 
employment  rates  and  stable  economic  growth. 
However, convergence with the EU has progressed 
at a different pace in different regions, resulting in 
uneven  economic  and  demographic  outcomes  at 
level.  Regional  disparities  have 
subnational 
increased  with  the  gap  between  the  two  larger 
(NUTS 2) regions rising 3 pps from 35 percentage 
points in 2004 to 38 in 2024. During this time, the 
gap between NUTS 3 regions widened even more, 
rising  15  pps  from  72  pps  in  2004  to  87  pps  in 
2024.  

GDP per head, driven by the strong performance of 
the  capital  region  of  Osrednjeslovenska,  where 
GDP per head is around 135% of the EU average 
in 2024. Vzhodna Slovenija remains below 75% of 
the  EU  average  GDP  per  head  across  most  of  its 
NUTS 3 regions, with the lowest levels observed in 
several  northern  and  eastern  regions,  including 
Zasavska,  where  GDP  per  head  is  around  50%  of 
the EU average (see Map A18.1 and Table A18.2). 

Labour  productivity  has  increased  steadily 
across  all  regions 
in  recent  years  but 
remains  below  the  EU  average.  In  2024, 
productivity  reached  85%  of  the  EU  average  at 
national  level,  with  higher  levels  in  the  capital 
region  and  western  Slovenia  (ranging  between 
81% and 96%) and lower levels in eastern regions 
(between  72%  and  86%).  Productivity  growth  in 
Slovenia  between  2014  and  2024  has  exceeded 
the  EU  average,  and  although 
it  has  been 
relatively stronger than the EU average in several 
eastern  regions,  gaps  with  higher-performing 
regions persist (see Annex 5). 

Map A18.1:  GDP per head compared to the EU 
average 

Graph A18.1: Share of employment in different 
sectors (2024), Slovenia (NUTS 3 regions) 

Source: Commission calculations based on JRC data 

Source: 2021-2023 average GDP per head in purchasing 
power standard compared with the EU average. 
Source: Commission calculations based on Eurostat 16 July 
2025 data 

Development  trends  in  recent  years  reflect 
persistent territorial disparities between the 
capital 
region  and  structurally  weaker 
regions  in  the  eastern  part  of  the  country. 
Zahodna Slovenija scores above the EU average on 

Productivity  growth  has  been  supported  by 
Slovenia’s  industrial  base,  but  there  are 
significant  structural  differences  across 
regions.  Employment  in  industry  exceeds  the  EU 
average  in  most  regions,  particularly  in  Koroška, 
Gorenjska  and  Jugovzhodna  Slovenija,  where  it 
accounts for more than 30% of total employment, 
compared  with  an  EU  average  of  15.3%.  This 
chemicals, 
reflects 

specialisation 

in 

119 

0255075100EUSloveniaPosavskaJugovzhodna SlovenijaKoroškaPomurskaSavinjskaPrimorsko-notranjskaZasavskaGoriškaGorenjskaPodravskaObalno-kraškaOsrednjeslovenskaAgricultureIndustryConstructionTrade, Transport, AccomICT, Financial, ProfPublicArts 
 
 
 
 
   
 
 
Table A18.1:Main development trends, challenges and the concentration of resources 

Source: European Commission based on Eurostat data;  categories of regions based on Map A18.1 

pharmaceuticals,  machinery  and  automotive 
activities.  The  country’s  northern  and  eastern 
regions  also  have  a  relatively  high  concentration 
of  employment  in  agriculture,  exceeding  13%  in 
regions  such  as  Pomurska  and  Posavska, 
compared with an EU average of 4%. By contrast, 
the capital  region, Osrednjeslovenska, has a more 
service-oriented  economic  structure,  with  a 
stronger focus on financial, professional, scientific 
and technical activities.  

Key challenges for regional 
competitiveness 

overall 

competitiveness, 

Slovenia’s 
as 
measured at the national level, is above the 
EU  average,  but  performance 
varies 
substantially  between  the  western  and 
eastern  regions.  At  the  NUTS  2  level,  these 
disparities  are 
the  Regional 
Competitiveness Index (RCI) 2022, where Slovenia 
records  an  overall  score  of  104  (against  an  EU 
average  of  100),  with  Zahodna  Slovenija  (in  the 

reflected 

in 

120 

Main development trendsLess developed region(population 1.11 million)Eastern Slovenia has a GDP per head that is less than 75% of the EU average. It also has labour productivity levels significantly below both the national and EU averages. Economic activity in this region is characterised by a higher concentration in industry and agriculture, alongside a lower presence of knowledge-intensive services and high value added activities. Although productivity growth has been relatively strong in some eastern regions in recent years, gaps in productivity growth with Western Slovenia persist due to weaker innovation capacity, lower business R&D investment and infrastructure constraints. Labour market outcomes in Eastern Slovenia are less favourable, with lower employment rates and slower employment growth. Another shortage faced by this region is the workforce shortage in healthcare, particularly of family doctors, nurses and specialists. Demographic challenges, including an ageing population and outward migration, continue to weigh on the area’s long-term growth prospects and potential for economic and social convergence. More developed region (population 1.01 million)Western Slovenia is a more developed region, with GDP per capita above the EU average, driven by the strong performance of the capital region. This region benefits from greater labour productivity, a more diversified economic structure, and a greater concentration of knowledge-intensive services and innovative activities. Stronger innovation ecosystems, higher R&D intensity and better integration into international value chains all bolster the region’s competitiveness. Labour market outcomes in Western Slovenia are also more favourable, with higher employment rates and faster employment growth. However, sustaining recent productivity gains will require continued investment in skills, digitalisation and innovation diffusion, particularly outside the capital area.Specific territoriesUrban areas, particularly the capital region in and around Ljubljana, concentrate economic activity, high value added services, innovation capacity and employment growth. They benefit from: (i) greater labour productivity; (ii) stronger labour market outcomes; (iii) greater uptake of advanced digital technologies; (iv) stronger collaboration between innovation actors, including universities and PPPs; and (v) better access to services. At the same time, they face increasing pressures related to housing affordability, congestion, commuting flows and infrastructure capacity, which weigh on quality of life and functional efficiency.Rural and sparsely populated areas face structural challenges linked to: (i) lower productivity levels; (ii) a greater reliance on traditional sectors; (iii) weaker access to services and digital connectivity; and (iv) less favourable labour market outcomes. Underserved rural regions also face shortages of workers in healthcare, and in particular a shortage of family doctors, nurses and specialists. In these rural and sparsely populated areas, the limited availability and uptake of public transport reinforce car dependency and reduce accessibility, particularly for ageing populations. Demographic pressures, including ageing populations and outward migration, continue to weigh on long-term development prospects. At the same time, these areas hold untapped potential in renewable energy, agri-food value chains and ecosystem services, provided that connectivity, skills, transport accessibility and governance capacity are strengthened.National cohesion aspectsTerritorial connectivity in Slovenia remains uneven, with a strong reliance on road transport and private car use, particularly outside urban areas, reflecting gaps in the coverage and attractiveness of public transport. Although the country’s main transport links and cross-border connections are relatively well developed, differences in accessibility persist between urban centres and more remote or sparsely populated areas. Improving the take-up and effectiveness of public transport and light mobility in these remote or sparsely populated areas would help to address a number of regional development bottlenecks. In recent years, progress has been made in Slovenia’s environmental infrastructure, especially in wastewater treatment. However, regional disparities remain in water supply efficiency, flood protection and climate resilience, with environmental risks weighing more heavily on less developed and disaster-prone regions. Fragmented local procedures and the absence of fully coordinated approaches to spatial planning can contribute to delays in planning and infrastructure development. Differences in administrative capacity and coordination between national, regional and local levels may also affect policy implementation on the ground. 
 
   
 
west)  performing  around  10  points  higher  than 
Vzhodna Slovenija (in the east). These differences 
are  reflected  across  all  components  of  the  index. 
In  the  basic  sub-index,  infrastructure  remains  a 
key  constraint,  particularly  in  Vzhodna  Slovenija, 
which  scores  37  percentage  points  below  the  EU 
average,  compared  with  18  points  below  the  EU 
average in Zahodna Slovenija. 

and 

public 

universities 

Weak  and  uneven  regional  R&D  expenditure 
and innovation bottlenecks are a drag on the 
competitiveness  of 
lagging  regions.  The 
concentration of high-value-added activities in the 
western  part  of  the  country  are  underpinned  by 
higher  business  sophistication  and 
innovation 
capacity there (390). There are significant disparities 
between the regions in terms of R&D expenditure. 
In particular, Obalno-kraška, Podravska, Primorsko-
notranjska, Pomurska and Koroška have low levels 
of  business  R&D 
investment  and  weaker 
productivity  outcomes (391).  Cooperation  between 
firms, 
research 
organisations  in  Slovenia  is  uneven,  reflecting 
differences  in  regional  capacity  and  economic 
structure (392).  There  are  21  cluster  organisations, 
14 of them in Zahodna Slovenija. Patent activity is 
heavily  concentrated  in  the  capital  region,  with 
only  two  other  NUTS3  regions  recording  patent 
applications (Jugovzhodna and Podravska) in 2022 
(see  Annex  4).  Smart  specialisation  strategies  are 
an effective instrument for strengthening regional 
innovation capacities while accounting for regional 
specificities.  However,  Slovenia’s  current  strategy 
(S5) 
stronger 
implementation capacity, particularly in addressing 
delays  in  RRI  infrastructure  and  policy  measures; 
(ii)  improved  coordination  across  its  innovation 
ecosystem; and (iii) more effective mechanisms to 
translate research and innovation into marketable 
products. 

benefit 

from: 

could 

(i) 

Disparities  in  labour-market  outcomes  and 
uneven  participation  in  adult  education  are 
further  constraining  the  growth  potential  of 
some  of  Slovenia’s  regions  and  rural  areas. 
Regional  disparities 
in  the  employment  rate 
persist,  with  western  Slovenia  exceeding  80% 
employment and the eastern regions being around 

(390) Regional Competitiveness Index (RCI) 2022. 

(391) Statistical Office of the Republic of Slovenia. 

(392) Regional Innovation Scoreboard 2025 - Country profile 

Slovenia. 

76% in 2024 (see Annex 11). Employment growth 
between  2014  and  2024  has  been  fastest  in  the 
capital  region  and  Obalno-kraška,  at  over  2% 
annually,  while  several  northern  and  eastern 
regions, including Pomurska and Koroška, recorded 
growth  below  1%,  increasing  the  gap  between 
stronger  and  weaker  labour  markets.  Low  inter-
regional  mobility  and  uneven  skills  development 
between  the  different  regions  further  widen 
regional  labour-market  disparities.  Unemployed 
residents  in  Vzhodna  Slovenia  are  less  likely  to 
move  west  despite  stronger  job  creation  there, 
limiting  the  reallocation  of  workers.  At  the  same 
time,  although  rural-urban  gaps  in  both  PISA 
results  and  tertiary  attainment  among  Slovenia’s 
25–34  year-olds  remain  below  the  EU  average 
(see  Annex  13),  significant  regional  differences 
also persist in adult learning. Participation in adult 
learning  among  25–64-year-olds  is  highest  in 
Osrednjeslovenska (47.3 % in 2022) and lowest in 
Primorsko-Notranjska (32.7%). 

Digital connectivity gaps persist, reflecting a 
clear  urban-rural  divide  and  limiting  the 
diffusion  of  digital  technologies  outside 
major  centres.  Access  to  high-speed  fixed 
broadband 
remains  uneven  across  Slovenian 
regions.  In  2024,  fibre-to-the-premises  coverage 
reached  78.5%  nationally  (compared  with  the  EU 
average  of  64%),  while  rural  coverage  stood  at 
56.8%,  slightly  above  the  EU  rural  average  of 
55.6%.  Although  Slovenia’s  rural  performance  for 
broadband  coverage  is  broadly  in  line  with  the 
European  average,  a  clear  rural-urban  divide 
remains, with rural areas continuing to lag behind 
the  national  level.  Persistent  pockets  of  low 
connectivity in remote regions reflect the difficulty 
of  extending  infrastructure  to  these  ‘white  areas’ 
where existing subsidies for providing fibre do not 
of 
the 
sufficiently 
installation (393).  These  areas  are  predominantly 
rural and largely characterised by hilly terrain and 
geographically 
hard-to-access 
challenging, 
locations  with  low  population  density.  Broadband 
operators do not have a market incentive to invest 
in the construction of broadband networks in these  

higher 

cover 

costs 

(393) Digital Decade country report 2024: Slovenia.  

121 

 
 
 
Table A18.2:Key regional indicators (at NUTS 3 level) for Slovenia 

Dark green - the indicator is 120% or more of the EU average. 
Light green - the indicator is 100% or more, but less than 120% of the EU average. 
Yellow - the indicator is 90% or more, but less than 100% of the EU average. 
Light red - the indicator is 75% or more, but less than 90% of the EU average. 
Dark red - the indicator is below 75% of the EU average. 
This colour scale applies to 'positive' indicators, where higher values are favourable. 
For 'negative' indicators (where higher values are unfavourable), the colours are reversed. 
Source: Eurostat and JRC 

gap 

Slovenia’s 

urban-rural 

areas (394). 
in 
connectivity  also  limits  the  diffusion  of  digital 
technologies  outside  major  centres  for  both 
households  and  SMEs.  At  NUTS  2  level,  regional 
disparities are evident, with enterprises in Vzhodna 
Slovenija 
to  digital 
reporting  more  barriers 
in 
transformation  compared  with  enterprises 
Zahodna Slovenija (395) (see Annex 4 and Annex 5). 

regions  affect 

Differences  in  multi-level  governance  and 
coordination  across 
the 
implementation  of  place-based  development 
policies.  Governance  quality  varies  across 
Slovenia,  with  Zahodna  Slovenija  performing 
above  the  EU  average  and  Vzhodna  Slovenija 
slightly  below,  reflecting  weaker  outcomes  in 
perceived  impartiality  and  corruption  in  public 

services.  Limited  horizontal  coordination  between 
municipalities  and  limited  vertical  coordination 
regional  development 
between  municipalities, 
agencies  at  NUTS-3  level,  both  cohesion  region 
development councils at NUTS-2 level and national 
authorities  continue  to  constrain  the  effective 
investments, 
integrated  territorial 
delivery  of 
particularly  in  less  developed  and  more  rural 
regions (396). 

in  administrative 

regional  development. 

capacity 
Constraints 
continue  to  affect  the  effectiveness  of 
Slovenia’s 
These 
fragmented 
constraints  are  compounded  by 
spatial  planning  and  permitting  practices  across 
municipalities,  which  contribute  to  delays 
in 
infrastructure  and  renewable  energy 
housing, 

(394) Slovenia’s Cohesion Policy Programme 2021-2027. 

(396) OECD report (2025): Building More Competitive Regions in 

(395) Statistical Office of the Republic of Slovenia (SiStat, 2025). 

Slovenia. 

122 

GDP per head (PPS, index)Population growthNet migrationReal GDP per head growthPopulation aged 20-64Change in working age population (20-64)Access to healthcare - Rural areasAccess to primary schools  - Rural areasAccess to alternative fuel infrastructureEU27=100Average annual change per 1000 residentsAverage annual change per 1000 residentsAverage annual % change% of total populationAverage annual % changePopulation within 10 minutes by car from nearest hospital  (%)Children under 15 within 15-minute walk to primary school (%)Electric vehicles charging points within 10 km20242015-20242015-20242014-202420252016-2025202320232022EU1001.83.51.458.3-2.63034288Slovenia903.24.42.658.3-3.6132090Vzhodna Slovenija721.84.12.358.1-5.9112031Zahodna Slovenija1104.84.82.858.4-1.02020156Pomurska62-3.01.82.657.1-13.2162123Podravska742.65.62.558.9-4.1101860Koroška65-1.30.51.757.3-11.03.2305.0Savinjska773.44.82.058.6-3.5121925Zasavska49-1.11.82.157.5-10.24.2226.5Posavska750.52.64.057.5-8.1211817Jugovzhodna Slovenija824.34.32.157.8-3.73.21720Primorsko-notranjska582.44.61.457.3-5.23.0287.2Osrednjeslovenska1356.35.33.059.51.72013252Gorenjska762.93.02.057.5-2.9201935.2Goriška80-0.12.42.355.9-8.9132926.5Obalno-kraška835.97.81.857.8-3.3382738.1  
 
 
 
   
 
projects, particularly outside the capital region (397). 
Regional development agencies play a central role 
in  programming,  coordination  and implementation 
of regional development but face uneven capacity 
in terms of staffing, technical expertise and project 
pipelines (398).  Ongoing  reforms 
(including  the 
recently adopted amendment of the Promotion of 
Balanced  Regional  Development  Act  and  Regional 
Development Strategy to 2050) aim to strengthen 
functional 
regional 
regionalisation 
inter-municipal 
cooperation.  The  effective 
implementation  of 
these reforms will be critical for reducing territorial 
disparities. 

governance, 
and 

improve 

support 

Map A18.2:  Ratio of the price of housing to income 
in Slovenian regions, 2025 

Source: REGIO elaboration based on Eurostat 

pressures 

affordability 

Housing 
differ 
markedly  across  Slovenian  regions  and  are 
reinforced  by  the  tenure,  age  and  energy 
performance  of  the  housing  stock.  House 
prices  relative  to  income  vary  widely  at  NUTS-3 
level.  In  Koroška,  an  average  household  requires 
around 5.9 years of income to purchase a 100 m² 
dwelling,  compared  with  around  17  years  in 
in 
Obalno-kraška 
levels 
Osrednjeslovenska,  where  higher  wage 

about 

years 

and 

14 

(397) OECD report (2025): Building More Competitive Regions in 

Slovenia. 

(398) OECD report (2025): Building More Competitive Regions in 

the  highest  unmet  needs 

partly offset the strong demand and higher prices. 
Affordability  has  weakened  in  most  regions  in 
2025 as house prices have increased more quickly 
than  incomes,  particularly  in  urban  and  coastal 
areas.  These  pressures  are  compounded  by  a 
housing  market  dominated  by  owner  occupation 
and  a  comparatively  small  rental  sector,  limiting 
mobility across regions. In addition, around 35% of 
the public housing stock is more than 40 years old, 
and  typically  less  energy-efficient,  contributing  to 
higher  housing-related  costs.  There  is  a  structural 
shortage  of  non-profit  rental  housing  across  all 
in 
regions,  with 
Osrednjeslovenska (notably Ljubljana), followed by 
Savinjska,  Obalno-kraška  and  Podravska 
(see 
Annex  16).  This  further  constrains  mobility  and 
intensifies  affordability  pressures  in  high-demand 
areas. Housing quality also shows marked regional 
variation,  with 
the  quality  challenges  being 
particularly  pronounced  in  Pomurska  and  Obalno-
kraška  region.  More  broadly,  social  vulnerability 
compounds  these  pressures,  as  the  at-risk-of-
poverty  or  social  exclusion  rate  is  17.1%  in 
Vzhodna  Slovenia  compared  with  11.6% 
in 
Zahodna  Slovenia  (see  Annex  12).  Energy  poverty 
shows  clear  regional  variations,  ranging  from 
around  4%  in  Osrednjeslovenska  to  over  10%  in 
regions  such  as  Koroška  and  Obalno-kraška, 
improving  the 
importance  of 
underlining  the 
energy performance of Slovenia’s housing stock. 

across 

considerably 

local  public  services 

Access  to  key 
in 
Slovenia  remains  below  the  EU  average  and 
varies 
regions, 
challenging residents’ ability to stay in their 
region. In Slovenia, municipalities are responsible 
for  providing  several 
local  public  services, 
including:  (i)  primary  healthcare;  (ii)  education 
from primary to secondary school; (iii) elderly and 
child  care;  (iv)  housing;  (v)  local  roads;  (vi)  waste 
management;  (vii)  sewerage;  and  (viii)  the  water 
supply (399).  Geographical  accessibility  to  primary 
education 
limited,  with  only  33%  of  the 
is 
living  within  a  15-minute  walking 
population 
distance  of  a  primary  school  in  2023,  compared 
with  59%  in  the  EU.  Accessibility  is  highest  in 
Osrednjeslovenska  (44%  are  within  a  15-minute 
walk  of  a  primary  school)  and  generally  better  in 
western  regions,  while  northern  and  eastern 
regions record substantially lower levels, at around 
28%.  Access  to  healthcare  services  is  similarly 
uneven  (see  Annex  15).  Around  41%  of  the 

Slovenia. 

(399) See SNG-WOFI Country profile: Slovenia. 

123 

 
 
 
 
 
 
territorial  disparities.  There  are 

Slovenian  population  can  reach 
the  nearest 
hospital  within  10 minutes  by  car,  well  below  the 
EU  average  of  almost  69%.  Coverage  exceeds 
50% in Osrednjeslovenska, Gorenjska and Obalno-
kraška, but falls sharply in rural areas, where only 
around 13% of the population enjoys such access. 
Access to long-term care services is also affected 
by 
labour 
shortages  in  all  regions  for  core  long-term-care 
occupations.  However,  certain  municipalities  are 
more affected by these shortages than others (400). 
Regional  variation  arises  primarily  from  factors 
such  as  cross-border  wage  differentials,  urban 
cost-of-living  pressures,  and  local  labour-market 
competition,  all  of  which  affect  the  severity  and 
operational  impact  of  shortages  rather  than  their 
existence  (see  Annex  12).  These  disparities  weigh 
on  quality  of  life  and  the  capacity  of  several 
regions to retain population. 

infrastructure 

The  performance  of  drinking  water  and 
wastewater 
varies 
considerably  across  Slovenian 
regions. 
Drinking  water  networks  record  losses  of  around 
29%  of  treated  water  -  above  the  EU  average  of 
about  23% 
-  with  pressures  particularly 
pronounced  in  smaller  rural  and  karst  supply 
systems  and  in  coastal  areas  exposed  to  drought 
risk.  Regional  differences  in  supply  systems  also 
persist: while around 91% of residents in Obalno-
kraška  and  about  75%  in  Osrednjeslovenska  are 
served  by  large  water  supply  systems,  regions 
such as Koroška rely mainly on medium-sized and 
small systems and have no large supply networks, 
increasing  operational  costs  and  vulnerability  to 
leakages.  Wastewater  treatment  outcomes  differ 
treats  nearly  all 
across 
wastewater  discharged 
from  public  sewage 
systems (around 98%), while Primorsko-notranjska 
and Zasavska also record similarly high treatment 
rates,  followed  by  Jugovzhodna  Slovenija  (around 
96%) and Obalno-kraška (about 92%). By contrast, 
Goriška and Osrednjeslovenska record the highest 
shares of untreated wastewater (around 44% and 
43%,  respectively),  pointing  to  significant  gaps  in 
wastewater 
treatment 
infrastructure.  Moreover,  regions  such  as  Koroška 
and Posavska still rely more heavily on secondary 

regions.  Pomurska 

collection 

and 

(400) Employer expectations collected in the Employment Forecast 
(Napovednik zaposlovanja 2025/I) indicate that OS Murska 
Sobota, OS Sevnica, and OS Novo mesto report the highest 
shares of employers anticipating recruitment difficulties, 
while OS Ptuj and OS Ljubljana report comparatively lower 
shares. 

treatment  (around  34%  and  36%,  respectively), 
indicating  slower  progress  in  upgrading treatment 
systems, particularly in smaller municipalities with 
more limited technical and financial capacity. 

gaps 

urban-rural 

Slovenian  regions  face persistent  challenges 
in  transitioning  to  sustainable  mobility,  with 
strong  territorial  disparities.  Public  transport 
uptake  is  lowest  in  Koroška  (24%)  and  Obalno-
kraška  (25%)  and  highest  in  Osrednjeslovenska 
(54%),  with 
particularly 
pronounced.  In  rural  areas,  20%  of  residents  cite 
the lack of service availability as the main reason 
for  not  using  public  transport,  compared  with  2% 
in cities, and only 17% report regular monthly use 
of  public  transport  (vs  42%  in  urban  areas).  High 
levels  of  car  dependency  is  closely  linked  to 
commuting patterns: in 2024, 55.5% of workers in 
Slovenia  commuted  daily  to  another  municipality, 
including  141  500 
into  Ljubljana  (population 
298 000),  increasing  pressure  on  the  capital  and 
its  surroundings  (Annexes  8  and  12).  Access  to 
electric  vehicle  charging  infrastructure  is  similarly 
uneven:  Osrednjeslovenska  records  around  252 
points within 10 km of a residence, while all other 
NUTS 3 regions remain below 65, with five regions 
–  mostly  in  eastern  Slovenia  –  below  20  (see 
Annex  8).  Despite  the  2023  introduction  of  the 
integrated  ‘Slovenia  ticket’  for  nationwide  public 
transport  across  different 
transport  modes, 
targeted  regional  solutions  could  be  useful  to 
improve  mobility,  reduce  car  dependency  and 
support  the  green  transition.  In  this  context, 
municipal  and 
transport 
strategies  (OCPS/RCPS),  supported  by  national 
policies,  help  improve  accessibility  and  reduce 
regional  disparities,  while  the  national  strategy 
(DCPS) will provide overarching coordination. 

integrated 

regional 

Climate risks are unevenly distributed across 
Slovenian  regions,  reflecting  differences  in 
geography, settlement patterns and exposure 
to natural hazards. Northern and alpine regions 
(Gorenjska  and  Koroška)  are  particularly  exposed 
to  flooding  and  landslides,  while  other  regions, 
namely  Obalno-kraška  face  rising  risks  from 
wildfires.  Overall,  around  one  quarter  of  the 
population  lives  in  flood-prone  areas  and  nearly 
30%  of  land  is  susceptible  to  landslides (401). 
Climate  change  is  increasing  the  frequency  and 
severity  of  extreme  events,  as  illustrated  by  the 
in  northern 
catastrophic  August  2023  floods 

(401) Ministry of Natural Resources and Spatial Planning. 

124 

 
 
 
Slovenia,  underlining  the  need  for  territorially 
differentiated  climate-adaptation  and  disaster-
resilience approaches (see Annex 10). 

despite 

substantial 

Renewable  energy  generation(402)  remains 
untapped 
limited 
potential in Slovenia’s regions. There is almost 
no  onshore  wind  generation  in  Slovenia,  while 
solar  photovoltaic  production  remains  slightly 
below the EU average and is largely concentrated 
in  rural  areas.  The  estimated  untapped  potential 
for  renewable  energy  is  highest  in  Pomurska, 
followed  by  Podravska  and  Koroška,  where  land 
availability  and  solar  irradiation  conditions  are 
favourable. However, deployment remains modest. 
Spatial  planning  restrictions,  lengthy  permitting 
procedures and limited grid capacity, particularly in 
eastern  and  more  rural  regions,  constrain  the 
development of larger renewable energy projects. 

lignite-based  power  generation  at  the  Šoštanj 
power  plant  are  scheduled  to  be  phased  out  by 
2033  at  the  latest.  The  region  faces  transition 
needs  related  to:  (i)  the  expansion  of  renewable 
energy;  (ii)  the  transformation  of  district  heating 
systems;  (iii)  economic  diversification;  (iv)  job 
creation; and (v) the remediation of mining-related 
land  degradation (403).  At  the  same  time,  the 
Zasavska  region  continues  to  address  the  legacy 
of  an  incomplete  transition  away  from  coal,  with 
GDP  per  head  around  49%  below  the  national 
average  in  2024.  Savinjsko-Šaleška  faces  the 
most  significant  challenges  in  the  just  transition, 
followed  by  Zasavje.  Both  regions  are  currently 
benefiting from the EU’s Just Transition Fund. The 
transition offers an opportunity to make the most 
of  governance  mechanisms  for  delivery,  including 
the  operational  capacity  of  just  transition  centres 
within  regional  development  agencies,  to  support 
balanced and effective transition outcomes. 

Map A18.3:  Untapped potential from solar, wind 
and hydro power by NUTS 3 region in Slovenia 
(2024 estimates) 

Source: JRC study (2024) 

just 

from 

The 
coal 
transition  away 
represents  a  major  regional  challenge  for 
Slovenia. At the same time, it offers opportunities 
for 
the 
development  of  renewable  energy  sources.  These 
challenges  are  most  acute  in  the  Savinjsko-
Šaleška  region,  where  coal  mining  in  Velenje  and 

reskilling/upskilling 

employee 

and 

(i) 

(47 km) 

(iii)  difficulties 

Although  there  are  economically  significant 
blue  economy  activities  in  Slovenia’s  only 
coastal  region,  Obalno-kraška,  the  sector 
faces  several  challenges.  The  country’s  limited 
coastline 
infrastructure 
creates: 
constraints;  (ii)  limited  marine  research  capacity 
compared  with  larger  coastal  EU  Member  States; 
in  scaling  up  emerging 
and 
activities,  including  sustainable  aquaculture  and 
marine  technology  innovation.  Slovenia  already 
has  skilled  workers  in  blue  economy  sectors,  but 
training  opportunities  in  this  area  are  relatively 
narrow  in  scope.  The  size  of  the  country’s  fishing 
fleet decreased by 12% from 2013 to 2023, with 
many  vessels  being  inactive  due  to  their  age, 
owners retiring without successors, fishers finding 
other jobs, and high operating costs (404). 

regions 

several 

Tourism in Slovenia is highly concentrated in 
Alpine,  coastal  and  capital  destinations, 
while 
remain 
interior 
underdeveloped.  In  2023,  Gorenjska  accounted 
for  around  28%  of  all  overnight  tourist  stays, 
followed  by  Osrednjeslovenska  (around  23%)  and 
the  coastal  region  Obalno‑kraška  (around  21%), 
meaning 
together 
generated  around  70%  of  overnight  stays 
nationally. By contrast, interior regions contribute a 
much  smaller  share:  Pomurska  accounted  for 

regions 

these 

three 

that 

(402) See Annex 9. 

(403) National strategy for phasing out coal (Slovenia). 

(404) BLUNEW: Report on Innovation in the Blue Economy. 

125 

 
 
 
 
 
 
is 

Tourism 

demand 

about 6% of overnight tourist stays in 2023, while 
Koroška and Zasavska made up only around 1.1% 
and  0.1% 
respectively  of  overnight  stays, 
underlining their marginal role in national tourism. 
These regions also have limited capacity to attract 
visitors.  For  example,  Zasavska  only  has  around 
471 official tourist beds (compared with 40 000 in 
Gorenjska). 
further 
characterised  by  a  high  reliance  on  international 
visitors,  who  generated  around  72%  of  overnight 
stays  in  2023,  and  a  relatively  short  average 
length  of  stay  of  about  2.6  nights.  This  reflects 
strong  seasonality  and  short‑break  patterns 
common in  Slovenian tourism markets.  Expanding 
accommodation capacity, connectivity and tourism 
services  in  these  less  visited  regions  could  help 
redistribute  visitor  flows  and  economic  benefits 
more  evenly  across  the  country,  in  line  with  the 
objectives  of  the  Slovenian  Tourism  Strategy 
2022–2028.

126 

 
ANNEX 19: TRANSPORT 

This  Transport  Annex  presents  the  state  of  play 
and  the  challenges  Slovenia  faces  with  the 
implementation  of  the  trans-European  transport 
network  (TEN-T),  the  European  railway  traffic 
management system (ERTMS) and road safety. 

Slovenia 
is  crossed  by  three  European 
(Baltic  –  Adriatic, 
Transport  Corridors 
Mediterranean,  Western  Balkans  –  Eastern 
Mediterranean). The TEN-T in Slovenia comprises 
987 km  of  rail  (475  of  which  are  on  the  core 
network) and 603 km of road (446 of which are on 
the core network). Slovenia has three airports (one 
core), one core port and two urban nodes (405). 

The  main  capacity  bottlenecks  on  the 
Slovenian  railway  network  are  concentrated 
on  the  Koper-Divača  and  Divača-Ljubljana 
sections,  where  daily  train  volumes  exceed 
available 
capacity.  Considering  Slovenia’s 
strategic location, all these bottlenecks as well as 
port infrastructure, should be  adapted to the dual 
use  requirements.  Bottlenecks  have  also  been 
identified in national strategic plans.  

Further  investments  are  also  necessary  on 
cross-border  sections  linking  Divača  with 
Trieste,  Ljubljana  with  Zagreb,  Maribor  with 
Graz.  Zidani  Most,  where 
line 
bifurcates  towards  Croatia  and  Austria,  is  a  key 
railway node in Slovenia. Upgrades to the existing 
railway  infrastructure  are  principally  aimed  at 
improving the speed parameter (speed of at least 
160 km/h)  as  well  as  increasing  capacity  of  the 
lines.  

railway 

the 

start  on 

Preparations  will  also 
the 
line  from 
construction  of  a  high-speed 
Ljubljana  in  the  direction  of  Maribor.  The  top 
priority is the further improvement of cross-border 
section  with  Italy  and  the  further  upgrade  of  the 
railway connection between the port of Koper and 
Divača  and  further  east  towards  Ljubljana.  This 
could  be  complemented  by  further  modernisation 
of  the  following  railway  lines  on  the  Slovenian 
territory:  Borovnica-Sežana,  Maribor-Graz,  Zidani 
Most towards Zagreb. 

The  ERMTS  is  essential  to  digitalising  the 
railways and to modernising and harmonising 
railway  operations  across  Europe.  The  ERTMS 
ensures the safety of rail networks by providing a 
unified signalling system that significantly reduces 
the 
It  also  provides 
interoperability  between  national  rail  systems, 
improving  cross-border  train  movements.  Finally, 
the  ERTMS  enhances  network  capacity  and 
operational 
the 
competitiveness of the rail sector. 

risk  of  accidents. 

efficiency, 

increasing 

ERTMS  was  operational  on  39.4%  of  the 
network the end of year 2024 (406). To meet its 
national  plan’s  ERTMS  roll-out  target  by  2035, 
Slovenia  aims  to  deploy  ERTMS  on  an  additional 
length of 133 km, for an estimated investment of 
EUR 32 million.  Decommissioning  of  the  legacy 
signalling system remains a priority. 

of 

the 

Delays  in  implementing  major  infrastructure 
projects  mainly  result  from  the  lengthy 
procurement 
preparation 
documentation  as  well  as  subsequent 
questions, complaints and appeals submitted 
by  the  bidders.  In  some  cases,  the  public 
procurements  had  to  be  cancelled  and  repeated, 
since no bids were submitted or they exceeded the 
available  budget.  To  streamline  procedural 
bottlenecks  and  shorten  approval  timelines,  the 
administrative  and  technical  capacities  of  the 
relevant bodies need to be strengthened.  

of 

harmonisation 
rules, 

technical 
together  with 

and 
The 
operational 
the 
reduction  of  national  rules  in  line  with  EU 
rail  interoperability  and  safety  legislation, 
to  ensure  seamless 
remains  essential 
cross‑border 
The  proper 
transport. 
rail 
notification and clean-up of its numerous national 
rules by committing to the envisaged processes at 
EU level is not yet completed. 

Building on the lessons learned of the cross-
financing  model  used  in  the  Koper-Divača 
project,  Slovenia  should  consider  applying  a 
diversified 
large 
financial  model 
infrastructure projects that combine multiple  

for 

(405) TENtec Information System, according to Reg. 2024/1679. 

Coordinator Matthias Ruete. 

(406) Based on ERTMS – Third work plan of the European 

127 

 
 
 
 
 
  
Map A19.1:  TEN-T cross-border and national priority sections in Slovenia. 

funding sources, such as national funding, EU 
grants,  international  financial  institutions  support 
as well as contributions from road tolls. 

Table A19.1:ERTMS deployment in Slovenia 

Source: Based on ERTMS – Third work plan of the European Coordinator Matthias Ruete. 

128 

 
 
 
 
 
 
 
 
 
Graph A19.1: Slovenia's road fatalities per million, 
2024 

Source: Report at the Mid-Point - Slovenia, SWD(2026) 57 
final. 

The  map  below  presents 
roads  where 
infrastructure safety is poor and urgent works are 
required. 

the 

Map A19.2:  Slovenia's road safety map 

Source: TENtec Information System and TEN-T map library – 
European Commission 

Road  crashes  impose  an  enormous  social, 
economic  and  health  burden  on  the  EU 
economy.  The  external  socio-economic  costs  of 
fatal,  serious  and  minor  injuries  have  remained 
persistently  high  despite  the  progress  made  in 
reducing  crash  frequency  and  severity.  These 
resources 
innovation, 
education,  healthcare  and  other  crucial  public 
investments (407). 

could  otherwise 

fuel 

In 2024, Slovenia performed better than the 
EU average (45) with 32 fatalities per million 
inhabitants.  In  2023,  829  people  were  seriously 
injured  in  road  crashes,  which  is  2%  higher  than 
the figure for 2019. Compared to the EU average, 
the  distribution  of  fatalities  in  Slovenia  showed  a 
high  proportion  of  cyclists  and  powered  two- 
wheeler  riders.  Most  road  crashes  between  2013 
and  2022  were  caused  by  participants  aged  25-
34.  Over  the  same  period,  there  was  an  upward 
trend  in  the  number  of  serious  injuries  in  all  age 
groups.  Also,  speeding  was  the  main  cause  for 
38.5%  of  fatal  road  crashes,  which  was  8.5% 
higher than the EU average. 

To  systematically  address 
these  challenges, 
Slovenia  is  implementing  the  Resolution  on  the 
National Programme of Road Traffic Safety for the 
period  2023–2030,  enforcing  the  'Vision  Zero' 
approach."  Despite  of  Slovenia’s  efforts  and 
taken  measures  on  speed  management, 
infrastructure  safety,  and  enforcement 
deriving  from  national  strategic  documents, 
the  reduction  in  the  number  of  serious 
injuries  is  still  not  sufficient  to  reach  the 
target  set  for  this  period.  A  possible  way 
forward to address this could be by reviewing the 
degree  of  implementation  of  the  various  road 
safety  measures,  focusing  on  those  targeting 
serious  injuries;  accelerating  the  implementation 
of  the  delayed  measures;  linking  police  and 
hospital injury databases to better investigate and 
monitor  serious  injury  trends  in  the  country,  as 
well  as  to  identify  the  critical  factors  contributing 
to  serious  road  crash 
injuries  and  consider 
adapting (408).  

(407) Report on the implementation of the EU Road Safety Policy 

framework at the Mid-Point, COM(2026) 77 final. 

(408) More details in Report on the implementation of the EU Road 

Safety Policy framework at the Mid-Point – Slovenia, 
SWD(2026) 57 final. 

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