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

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 3.6.2026  SWD(2026) 225 final  COMMISSION STAFF WORKING DOCUMENT 2026 Country Report - Slovakia Accompanying the document Recommendation for a COUNCIL RECOMMENDATION  on the economic, social, employment, structural and budgetary policies of Slovakia {COM(2026) 225 final}  
 
 
 
 
 
 
 
 
 
 
 
ECONOMIC DEVELOPMENTS AND KEY POLICY 
CHALLENGES 

in 

reflect 
and 

the  capital.  Lagging 

continued  divides 
and 
innovation, 

Slovakia  exhibits  significant  regional 
disparities,  with  most  economic  activity 
and innovation being concentrated in the 
Bratislava  region.  While  growth  outside  the 
capital  has  recently  outpaced  it,  large  gaps 
persist,  with  GDP  per  capita  ranging  from 
151% of the EU average in Bratislava to 55% 
(Annex  18).  These 
in  eastern  Slovakia 
in 
disparities 
productivity 
a 
concentration  of  high-value  services,  R&D 
investment,  financial  ecosystem  and  skilled 
regions, 
labour 
particularly  eastern  Slovakia,  face  additional 
challenges,  including  weaker  labour  market 
outcomes,  higher  unemployment  and  poverty 
rates,  and  significant  outward  migration  of 
young and skilled workers. An imbalance in the 
location  of 
institutions 
tertiary  education 
contributes  to  a  sustained  brain  drain  from 
regions  outside  the  capital.  In  2024,  the 
Bratislava  region  accounted  for  40.7%  of  all 
full-time  university  students 
in  Slovakia. 
Moreover,  structural  constraints  such  as 
limited  transport  connectivity,  weaker  digital 
infrastructure  and  lower  access  to  healthcare 
further  hinder  regional  competitiveness  and 
are a key factor in residents’ decision to leave. 
Overall, these imbalances are compounded by 
fragmentation  of  governance  and 
limited 
fiscal capacity at local level, limiting the ability 
of  less  developed  regions  to  catch  up  (Annex 
18). 

A strong reliance on low-value-
added production limits 
convergence and competitiveness  

Slovakia’s  competitiveness  is  weakening, 
reflected by sluggish productivity growth 
and  decreased  inflows  of  foreign  direct 
real 
investment 

Slovakia’s 

(FDI). 

The economic outlook remains 
subdued 

Economic  growth  in  Slovakia  remains 
weak  amid  needed  fiscal  consolidation, 
global  uncertainty  and  trade  tensions. 
Growth slowed  significantly,  to  0.8%,  in  2025 
and  is  forecast  to  remain  subdued,  with  real 
GDP  growth  forecast  at  0.8%  in  2026  and  at 
1.5% in 2027. The slowdown is driven mainly 
by  fiscal  consolidation  and 
the  external 
environment.  The  export-oriented  nature  and 
global value chain integration of the economy 
leave Slovakia particularly vulnerable to trade 
tensions  and  global  uncertainty.  Exports  are 
expected  to  start  regaining  momentum  in 
2027, supporting a gradual  pick-up in  growth. 
The  current  account  has  marginally  improved 
compared  to  2024.  However,  due  to  the 
worsened  trade  balance  and  a  persistently 
high government deficit, the risks for external 
sustainability remain.  

The labour market in Slovakia is resilient, 
inflation  remains  elevated.  The 
while 
unemployment  rate  stood  at  a  low  5.4%  in 
2025  compared  to  the  EU  average  of  5.9%. 
Furthermore,  labour  supply  is  limited  due  to 
the 
demographic  pressures  as  well  as 
underrepresentation  of  specific  population 
groups,  most  notably  women  and  Roma 
(Section 4). However, unemployment and wage 
dynamics are expected to worsen in 2026 and 
2027.  Inflation  reached  4.2%  in  2025  on  the 
back  of  tax  increases  and  services  price 
pressures  and  is  expected  to  remain  high,  at 
4.3%,  in  2026  mainly  due  to  rising  energy 
prices,  before  moderating  to  3.2%  in  2027. 
High  inflation  results  in  real  wages  set  to 
remain  broadly  stagnant  in  2026,  before 
picking up in 2027. 

2 

 
 
of 

EU 

the 

convergence  has  broadly  stalled  over  the  last 
decade, with its real GDP per capita in 2024 at 
56.8%  of  the  EU  average  and  its  GDP  per 
capita  in  purchasing  parity  terms  in  2024  at 
average.  Structural 
75% 
inefficiencies  of  the  labour  market,  including 
skills  mismatches  and  regional  imbalances, 
contribute  to  the  recent  sluggish  growth  in 
labour  productivity.  The  resulting  high  unit 
labour  costs  undermine  Slovakia’s  cost 
competitiveness.  FDI  inflows  have  decreased 
in  the  context  of  a  worsening  business 
economy 
the 
environment. 
undergoes 
changes,  Slovakia’s 
economy  risks  being  left  behind  due  to  its 
weakening competitiveness position. 

As 
structural 

global 

The  highly 
trade-dependent  Slovak 
economy  remains  heavily  reliant  on  low-
value-added  automotive  production.  The 
in  Slovakia  represents 
automotive  sector 
around  a  half  of  the  country’s  industrial 
revenues and over a third of its exports. While 
the  sector  performed  relatively  well  in  2025, 
its  resilience  is  not  expected  to  persist  amid 
domestic  and  external  economic  pressures 
(Annex  5).  The  planned  launch  of  the  Volvo 
factory  for  electric  vehicles  supports  the 
sectoral green transition. However, automotive 
production is still expected to broadly stagnate 
in  the  coming  years.  Furthermore,  electric 
vehicles  are  more  dependent  on  imports,  in 
particular from countries outside of the EU (1). 
Diversifying  supply  chains  and  developing 
increase 
green 
trade 
economic 
dependencies.  Moreover,  as  Slovakia  remains 
heavily  reliant  on  gas  and  crude  oil  imports 
from  Russia,  the  diversification  of  energy 
sourcing  is  key  for  economic  security  amid 
rising  global  geopolitical 
tensions.  The 
structural  shift  of  the  economy  towards 
higher-value-added activities is imperative for 
convergence  towards  the  EU  average.  This 
implies a focus on R&D and innovation, which 
is  chronically  low  (Section  2);  a  push  towards 
developing  a  more  service-based  economy; 
developing the green tech industry (Section 3); 
and 
the  outflow  of  high-skilled 
workers.   

infrastructure  could 

security 

limiting 

limit 

tech 

and 

Slovakia continues to face vulnerabilities 
related  to  competitiveness,  the  external 
and  government  balances,  the  housing 
market  and  household  debt.  Earlier  this 
year,  an  in-depth  review  was  carried  out  as 
part  of 
imbalance 
the  macroeconomic 
procedure  (2).  Despite  recent  improvements  in 
the current account deficit, it remains high and 
is  forecast  to  further  increase  due  to  a 
worsened  external  environment.  Inflation  is 
projected to remain elevated, further widening 
the cumulated inflation differential to the euro 
area  and  weighing  on  competitiveness. 
Housing  supply  remains  limited,  with  robust 
demand  pushing  housing  prices  up  and 
weighing on household debt. Policy progress in 
these areas has been limited.  

A short-sighted fiscal strategy 
weakens medium-term prospects  

to 

is  struggling  to  correct 

Slovakia 
its 
excessive  budget  deficit  and  to  put  debt 
on a declining path. Under its medium-term 
fiscal-structural  plan  (MTP)  for  2025–2028, 
Slovakia  has 
limit  net 
committed 
expenditure growth, with the aim of reaching a 
deficit below 3% of GDP by 2027, in line with 
the  excessive  deficit  procedure,  and  placing 
debt on a downward trajectory (Annex 2). Thus 
far,  Slovakia  appears  to  be  adhering  to  the 
maximum  net  expenditure  growth 
limit, 
especially  when  accounting  for  the  defence 
flexibility  allowed  by  the  national  escape 
clause.  However,  according  to  the  2026 
budget,  the  deadline  for  bringing  the  deficit 
below 3% of GDP has already been postponed 
to 2028. The adjustment presented in the plan 
would 
the 
structural  primary  balance  of  around  5.2 
percentage  points  of  GDP  between  2024  and 
2028.  Consolidation  measures  implemented 
by  Slovakia 
in  2025–2026  only  partially 
address  these  challenges,  particularly  in  light 
of  Slovakia’s  significant  age-related  spending 
pressures, which are among the highest in the 

improvement 

require  an 

in 

(1)  JRC (2026) - Transition to Electric Vehicles. 

Paper 339, May 2026. 

(2)  SWD(2026) 142 final. European Economy Institutional 

3 

 
 
 
increase 
EU.  Moreover,  Slovakia  plans  to 
defence  expenditure  to  around  2.0%  in  2025, 
1.8%  in  2026,  and  2.1%  in  2027.  The  Slovak 
Council  for  Budgetary  Responsibility  (RRZ) 
warns  that,  in  the  absence  of  additional 
measures,  the  deficit  could  reach  around  6% 
of  GDP  and  public  debt  could  rise  to  75%  of 
GDP  by  2029.  Additional  fiscal  consolidation 
structural 
measures  and 
reforms  will  therefore  be  needed  to  secure 
sound  public  finances  and  support  potential 
growth. 
Commission’s 
assessment  of  Slovakia’s  national  defence 
investment  plan, 
the  Council  adopted  a 
decision to make financial assistance available 
to  Slovakia  for  an  amount  of  up  to  EUR  2.3 
billion  through  the  Security  Action  for  Europe 
instrument. 

comprehensive 

Following 

the 

Slovakia’s  debt  continues  to  rise  despite 
a  gradual  decline  of  the  government 
deficit.  The  general  government  deficit 
decreased  to  4.5%  of  GDP  in  2025,  largely 
because  of  fiscal  consolidation  measures, 
including  adjustments  to  VAT  and  corporate 
income tax rates, as well as the introduction of 
a  financial  transaction  tax.  The  Commission 
Spring  2026  Forecast  projects  the  deficit  to 
reach 4.6% of GDP in 2026 and 5.4% of GDP 
in  2027.  Public  debt  is  expected  to  increase 
from around 61.4% in 2025 to 66.9% in 2027, 
government 
reflecting 
deficits. 

persistent 

highly 

Graph 1.1: Evolution of general government 
debt and deficit 

Source: Eurostat and Commission Spring 2026 forecast 

Slovakia’s fiscal strategy relies primarily 
on tax increases, while a clear long-term 
consolidation  plan  remains  absent.  Fiscal 
consolidation  has  so  far  focused  primarily  on 

4 

tax  measures  such  as  a  higher  VAT  rate, 
higher  excise  taxes,  increased  tax  rates  on 
both  corporate  and  personal  income,  and  the 
introduction of financial transaction tax (tax on 
the  use  of  payment  services).  However, 
additional  increases  in  discretionary  spending, 
such as the permanent 13th pension payment 
and  permanent  energy  support  measures 
targeted  at  90%  of  households,  have 
fiscal 
significantly 
the 
to  weigh  on 
consolidation  and  are  set 
government  debt  dynamics  also 
the 
in 
medium  term.  Moreover,  Slovakia  has  yet  not 
presented  a  comprehensive  fiscal  strategy 
outlining  how  it  intends  to  meet  its  fiscal 
commitments  beyond  2026  while  ensuring 
that  the  associated  policy  measures  remain 
conducive to sustainable economic growth. 

reduced 

net 

Optimising the tax system to 
improve fairness and 
competitiveness 

In 2025 the Commission issued a number 
of  recommendations  to  Slovakia  in  the 
area  of  taxation  and  housing.  It  was 
recommended that Slovakia make the tax mix 
more  efficient;  strengthen  tax  compliance; 
support 
wind  down  emergency  energy 
measures  and  ensure  they  are  properly 
targeted; and support housing supply including 
social  housing.  Progress  in  these  areas  has 
been very limited. 

Slovakia has failed to make adequate use 
of  property,  environmental  and  energy 
taxes,  with  consequences  for  fairness, 
revenue  and  house  prices.  Slovakia's 
property  taxation  system  relies  on  property 
area  rather  than  market  value,  which  means 
that, as property values surge, owners of high-
value  properties  pay  proportionately  less  in 
taxes. 
and 
undermines 
contributes to the rise in house prices. Capital 
gains  from  property  sales  are  tax-exempt 
after  five  years,  further  narrowing  the  tax 
long-term  housing 
base  and  encouraging 
increases 
investments,  which 
homeownership  concentration.  Environmental 
tax  rates,  including  those  on  transport  and 

fairness 

turn 

This 

in 

4.04.24.44.64.85.05.25.45.650.052.054.056.058.060.062.064.066.068.020232024202520262027Debt (% GDP)Deficit (% of GDP) 
  
pollution,  remain  below  the  EU  average, 
indicating  that  the  ‘polluter  pays’  principle  is 
insufficiently  applied  (Annex  3).  Additionally, 
there  is  scope  to  improve  energy  taxation  by 
improving  the  electricity-to-gas  price  ratio  for 
both households and businesses. 

Cutting untargeted expenditures 
and reviewing spending is 
essential to improving the 
efficiency of the social system and 
public finances  

have 

taxes 

Although 

Corporate 

tax,  negatively 

combined  with 

Recent  tax  changes  have  increased  the 
complexity of the tax system and the tax 
burden  on  both  businesses  and  labour, 
fairness  and 
undermining  economic 
competitiveness. 
recent 
adjustments  to  personal  income  tax  brackets 
appear  to  have  made  the  tax  system  more 
progressive,  the  mandatory  social  and  health 
contributions  have  increased  the  already  high 
labour  tax  wedge,  particularly  for  low-income 
earners. 
also 
significantly  increased,  while  the  introduction 
of  three  corporate  income  tax  brackets  in 
January 2025 has added complexity to the tax 
system.  The  hike  in  the  corporate  income  tax 
rate,  leading  to  an  effective  tax  rate  that  is 
in  Czechia,  Poland  and 
higher  than  that 
financial 
the 
Hungary, 
transaction 
the 
impacts 
business  environment  (Annex  3).  The  increase 
in  the  standard  VAT  rate  from  20%  to  23% 
puts an additional burden on households, while 
two  reduced  VAT  rates  covering  many  goods 
and  services  complicate  the  system  and 
increase  tax  expenditures.  At  the  same  time, 
while  Slovakia’s  VAT  compliance  gap  has 
improved,  as  recommended  in  2025,  it  still 
remains above the EU average (Annex 3). The 
increasing  complexity  of  the  taxation  system 
hinders  its  effectiveness  and  exacerbates  the 
VAT  compliance  gap.  Although  new  rules 
limiting  the  scope  of  entities  subject  to  the 
financial  transaction  tax  from  2026  have 
mitigated  some  negative  effects,  high  tax 
rates  continue 
the  business 
to  burden 
environment,  posing  risks  to  competitiveness, 
banking  and  the  scope  of  informal  economy. 
reforms, 
Nevertheless, 
recently 
such  as  strengthened  oversight  by 
the 
Financial  Administration,  the  expanded  use  of 
eKasa  (an  online  sales  reporting  system)  and 
mandatory cashless payment options including 
QR  codes,  are  expected  to  enhance  tax 
compliance. 

introduced 

in 

reduce 

benefits, 

integrating 

insufficiently 

Challenges 
spending 
reviews  into  the  budgetary  process,  as 
recommended  in  2025,  together  with  the 
targeted 
expansion  of 
social 
spending 
effectiveness and increase costs. Spending 
reviews,  which  systematically  assess  public 
expenditure to improve value for money, have 
been  conducted 
for  several  years  with 
significant past and ongoing support from the 
Technical  Support  Instrument  (TSI).  However, 
their  full  potential  remains  untapped  due  to 
their  limited  integration  into  the  budgetary 
process. Strengthening this link would support 
fiscal  discipline,  alongside  efforts  to  improve 
public  investment  management  through  more 
centralised assessments. To this end, Slovakia 
plans to centralise project evaluations under a 
harmonised  methodology  overseen  by  the 
Ministry of Finance as part of its recovery and 
resilience  plan  (RRP).  Additionally,  the  social 
system  has  gradually  expanded  in  recent 
years,  becoming  increasingly  costly.  Generous 
social  benefits  such  as  the  permanent  13th 
pension  payment,  parental  bonuses  and 
energy  subsidies  are  not  effectively  targeted 
at  vulnerable  groups.  Furthermore,  Slovakia 
needs to improve the quality and effectiveness 
of public spending on education, which, despite 
being  above 
the  EU  average,  has  not 
translated into better outcomes in primary and 
secondary education. 

Expenditure  on  pensions,  healthcare  and 
long-term  care  is  expected  to  increase 
due  to  population  ageing.  Public  pension 
spending  is  expected  to  rise  significantly  by 
2070  due  to  rapid  population  ageing  in  the 
coming decades. Although the pension reform 
adopted  in  January  2023  improved  the  long-
term  sustainability  of  the  pension  system  by 
linking  the  retirement  age  to  life  expectancy, 
total  pension  outlays  are  still  projected  to 
remain above the EU average by 2070 (Annex 

5 

 
2). Supplementary pensions play a limited role 
in  providing  retirement  income,  due  to  low 
coverage and limited financial depth (Annexes 
2  and  6).  Population  ageing  will  continue  to 
put  upward  pressure  on  healthcare  and  long-
the 
term 
importance 
in 
effective 
supporting healthy ageing and reducing future 
financial demand. 

care  expenditure, 

reinforcing 

prevention 

of 

support  measures 

Despite the recommendation for Slovakia 
to  wind  down 
the  energy  support 
measures, these have become permanent 
and  remain  poorly  targeted.  To  address 
inflation  concerns,  Slovakia  has  implemented 
energy 
since  2022. 
However,  unlike  most  Central  and  Eastern 
European  countries,  Slovakia  remains  heavily 
reliant  on  Russian  energy.  Consequently, 
limited resources diversification contributes to 
higher  energy  prices  compared  to  regional 
peers.  Consequently,  household  gas  and 
electricity  price  caps  will  continue  to  alleviate 
cost  increases  through  2026.  These  costly 
subsidies,  ongoing  without  a  specified  end 
date,  are  broadly  targeted,  covering  90%  of 
households. 

Improving housing supply and 
rental support is needed to boost 
affordability and promote labour 
mobility 

Slovakia's housing shortage, coupled with 
high  demand  and  low  rental  availability, 
is driving up house prices and hampering 
labour  mobility.  With  the  lowest  housing 
stock  per  capita  in  the  EU,  Slovakia  faces  a 
considerable housing supply shortage. In 2025, 
the  Commission  recommended  that  Slovakia 
support  housing  supply.  Despite  the  efforts 
including  the  newly  adopted  Building  Act 
aiming  to  streamline  permitting  procedures, 
to  be 
residential  construction  continues 
sluggish.  Furthermore, 
for 
housing,  fuelled  by  a  strong  preference  for 
homeownership 
favourable 
consistently 
macroeconomic 
surpasses  supply,  driving  up  house  prices. 
Additionally,  the  share  of  rental  housing  in 

and 
conditions, 

the  demand 

6 

Slovakia  is  notably  low  compared  to  the  EU 
average  and  has  not  grown  over  time,  which 
adversely  impacts  regional  labour  mobility 
(Annexes 16 and 18). 

The 

system 

In  2025, 

Housing  policies  favour  homeownership, 
limiting rental support and social housing 
affordability. 
the  Commission 
recommended that Slovakia expand the rental 
market by accelerating residential construction 
and  promoting  social  housing.  Slovakia  falls 
short of the EU average in social housing, with 
(Annex  16). 
limited  public  rental  options 
Although  a  public-private 
rental  housing 
scheme  has  been  implemented  and  a  new 
Building  Act  introduced,  these  measures  have 
yet  to  yield  tangible  results,  leaving  progress 
constrained. 
favours 
tax 
homeownership  through  a  tax  bonus  for  paid 
mortgage  interest  available  to  eligible  young 
households,  increasing  housing  demand  and 
prices.  Landlords  may  deduct  only  expenses 
directly  related  to  rental  income,  with  the 
scope  of  deductible  costs  depending  on 
whether  the  property  is  included  in  business 
assets. State policies inadequately support the 
rental  sector,  and  housing  allowances  cover  a 
negligible  part  of  rental  costs,  failing  to 
effectively 
affordability 
(Annexes  16  and  18).  Expanding  rental  and 
social housing, tailoring housing allowances to 
reflect  real  housing  and  energy  costs,  and 
supporting housing-led solutions is essential to 
ensure long-term access, housing affordability 
and social inclusion.  

improve 

rental 

funding 

instruments 

competitiveness, 

EU 
provide 
considerable  resources  to  Slovakia.  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  Slovakia  with  an  EU  contribution  of 
EUR 3.4 billion under the CAP strategic plan for 
2023-2027 (3). A further EUR 151.8 million are 

(3)  An overview of Slovakia’s formally approved strategy to 
the  EU’s  common  agricultural  policy 
at 

implement 
nationally 

found 

can 

be 

 
 
 
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  Slovakia,  for 

programmes 

EU 

Box 1: 

UN Sustainable Development Goals (SDGs) 

 Slovakia  is  progressing  towards  several  SDGs  related  to  sustainability,  in  particular 
clean  water  and  sanitation  (SDG  6),  sustainable  cities  and  communities  (SDG 
11) and life on land (SDG 15). For these, the status is above the EU average. 

At the same time, despite progress, the status of several SDGs remains worse than the 
EU  average.  These  include  SDGs  related  to  competitiveness,  namely  on  quality 
education (SDG 4), decent work and economic growth and industry (SDG 8), and 
innovation  and  infrastructure  (SDG  9).  Moreover,  while  making  some  progress, 
Slovakia also lags behind the EU average for several SDGs related to social fairness, in 
particular related to good health and well-being (SDG 3), gender equality (SDG 5), 
affordable and clean energy (SDG 7), decent work and economic growth (SDG 8). 

https://agriculture.ec.europa.eu/cap-my-country/cap-
strategic-plans/slovakia_en. 

7 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Box 2: 

Key achievements of the Recovery and Resilience Facility 

Slovakia’s recovery and resilience plan (RRP) represents a total envelope of EUR 6 408 
billion,  corresponding  to  5.21%  of  GDP.  It  is  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 5 May 2026, EUR 5.2 billion (around 81% of the total allocation) has 
been disbursed to Slovakia following the satisfactory fulfilment of 130 milestones and 
targets. Implementation has progressed steadily, with a growing number of reforms and 
investments already fulfilled and delivering tangible results. 

Highlights and impact of the plan: 

•  Households benefiting from energy efficiency investments. Over 25 000 
family houses will be renovated. To date, more than 21 000 family houses have 
been  renovated,  with  an  average  primary  energy  savings  of  59%  (against  the 
30% required).  

•  Termination of coal-based electricity production in Upper-Nitra region. 
Slovakia terminated the support to lignite electricity generation produced in the 
Nováky power plant, which was among the Slovak installations participating in 
the  EU  ETS  with  the  highest  CO2  emissions.  The  plant  officially  stopped 
operating in December 2023.  

•  Strengthened  medical  network.  The  Slovak  population  benefits  from  a 
medical  network with 148 new practices for general practitioners having been 
established across Slovakia since 2022. 

•  New kindergarten places. Under the RRP, Slovakia will expand the capacity of 
reconstructing 
the  pre-primary  education  system  by  constructing  and 
kindergartens. Of 220 construction/reconstruction projects planned, to date 120 
have been delivered, corresponding to around 4 700 new places. 

8 

 
 
 
Box 3: 

Contribution of cohesion policy funds 

EU cohesion policy funding is supporting Slovakia’s efforts to boost competitiveness, 
environmental  sustainability,  skills  and  social  fairness.  In  the  2021-2027  programming 
period, EU cohesion policy funds (4) are providing EUR 12.6 billion (amounting to EUR 15.9 billion 
paired with national co-financing), or 9.7% of 2024 GDP, to Slovakia. This makes cohesion policy 
one  of  the  main  sources  of  public  investment  in  the  country.  The  value  of  selected  projects 
corresponded to 61.8% of the total allocation as of March 2026, with additional contracts and 
calls for projects in the pipeline. 

• 

Innovation, business environment and productivity.  Over EUR 1.6 billion is invested in 
Slovakia’s  competitiveness.  Projects  selected  so  far  provide  support  to  almost  3 000 
businesses, including 350 new enterprises, strengthening  research and technology transfer 
and  fostering  innovation  and  digitalisation.  Approximately  one  tenth  of  this  support  is 
delivered through financial instruments such as first-loss portfolio guarantees. 

•  Decarbonisation, energy affordability and sustainability. EUR 4 billion is dedicated to 
the  green  transition.  Over  6 000  dwellings  in  multiapartment  buildings  had  improved  their 
energy performance by the end of 2025 and around 10 000 will follow. Projects approved to 
upgrade  wastewater  treatment  facilities  are  set  to  benefit  60  000  people.  The  Just 
Transition  Fund  is  supporting  a  major  geothermal  energy  project  that  will  decarbonise  the 
district heating system of Slovakia’s second-largest city, Košice. 

•  Skills, 

social 

and 
Approximately 
fairness. 
labour  market  measures, EUR 646 million 

533 
jobs 
quality 
million is allocated to active 
quality 
and inclusive  education, EUR 274 million  to integration  of  marginalised  Roma  communities, 
EUR 191 million 
to the Youth  Guarantee  and 
EUR 969 million to social  and  primary  healthcare  services. 1  000 new  places in  early 
childhood education and care facilities for children aged 0 to 3 will be created. 47 000 long-
term  unemployed  people will receive  support with the goal of securing  employment  for at 
least 21 000 of them. 

to  skills  for  adults,  EUR 288 million 

EUR 
to 

The mid-term review (5) reinforced cohesion policy’s contribution to emerging strategic priorities, 
with over EUR 1.2 billion reallocated to such priorities. Almost half of the reallocations support 
defence and civil preparedness, including military mobility; cybersecurity; and civil preparedness 
skills  of  healthcare  workers. 
Investments  worth  EUR  316  million  will  further  boost 
competitiveness through support to the development of critical Strategic Technologies for Europe 
Platform  (STEP)  technologies  in  the  fields  of  robotics,  AI,  semiconductors,  eco-innovation  and 
biotechnology.  Additional  funding  has  also  been  allocated  to  water  retention  measures  and 
energy infrastructure. The mid-term review also brought an increase of the allocation under the 
European  Social  Fund  Plus  (ESF+),  by  EUR  36  million,  and  transfers  within  the  ESF+  to  social 
services and inclusive education. The allocation to sustainable and affordable housing, including 
social housing for vulnerable groups, has been boosted with EUR 153 million.  

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

(5)  Undertaken 

the 

through 

halfway 

2021-2027 
programming  period,  the  mid-term  review  is  a  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. 

9 

 
 
 
 
 
 
INNOVATION, BUSINESS ENVIRONMENT AND 
PRODUCTIVITY 

a 

(CSRs) 

bolster 

system; 

recommendations 
favourable 

In  2025,  Slovakia  received  country-
specific 
to 
ensure 
business 
environment;  promote  transparency  and 
competition  in  the  public  procurement 
process; strengthen the judicial and anti-
corruption 
digital 
infrastructure and the adoption of digital 
technologies;  and  improve  research  and 
innovation (R&I) policy. Shortcomings in the 
justice and anti-corruption system and lack of 
transparency in public procurement continue to 
affect  the  business  environment.  Despite 
progress,  persistent  gaps  in  digitalisation  and 
digital  skills  limit  the  uptake  of  advanced 
technologies  among  firms.  The  fragmentation 
of local  governance undermines already weak 
investment pipelines and the absorption of EU 
funding.  The  regulatory  environment  remains 
unpredictable due to the frequent use of fast-
track legislative procedures, while the research 
and 
remains 
fragmented and R&D expenditure continues to 
lag significantly behind the EU average.  

landscape  also 

innovation 

Structural challenges in the justice 
system and anti-corruption 
enforcement negatively affect the 
business environment 

Concerns  over  the  judicial  and  anti-
corruption  system  persist,  whereas  the 
investigate  and 
capacity 
to  detect, 
prosecute  high-level 
corruption  has 
further  deteriorated.  The  perception  and 
reported  experience  of  corruption  when 
doing  business  in  Slovakia  remains  very 
high.  The  dismantling  of  key  anti-corruption 
bodies  and  controversial  amendments  to  the 
Criminal  Code  in  2024  have  eroded  the  anti-
corruption framework, diminishing institutional 

10 

lower  prosecutors  and 

expertise  and  operational  capacity  (Annex  7). 
In  2025,  Slovakia  received  a  country-specific 
recommendation 
(CSR)  to  strengthen  the 
judicial system and enhance the effectiveness 
of  the  anti-corruption  system,  including  by 
ensuring  adequate,  autonomous  and  effective 
investigations  and  prosecutions  of  high-level 
corruption  cases  and  sufficient,  specialised 
police and prosecution capacity. No steps were 
taken  by  the  government  to  address  these 
challenges.  In  particular,  the  dismantling  of 
specialised  anti-corruption  bodies  (e.g.  the 
Special  Prosecution  Office  and  the  National 
Crime  Agency),  and  amendments  to  the 
Criminal  Code,  combined  with  the  exercise  of 
power by the General Prosecutor to annul final 
the 
decisions  of 
law enforcement  authorities  in  the  pre-trial 
stage,  have  disrupted  institutional  capacity 
and  the  specialised  expertise  developed  over 
time to investigate and prosecute complex and 
high-level corruption cases. The reorganisation 
of  investigative  and  prosecutorial  structures 
transitional  challenges,  and 
has  created 
rebuilding  specialisation,  through  training  and 
organisational  adjustments,  will  require  time. 
(Annex  7).  Recent  statistics  show  a  sharp 
decline  in  the  detection,  investigation  and 
prosecution  of  corruption  following  the  2024 
reforms.  For  example, 
the  number  of 
prosecution  cases  dropped  by  70  %,  pointing 
the 
deterrence 
to  weakened 
administration 
the 
attempt  to  dismantle  and  restructure  the 
Whistleblower  Protection  Office  in  December 
2025 raised concerns over a chilling effect on 
potential  whistleblowers.  While  Slovakia 
repealed  that  legislation  in  early  2026,  these 
developments 
permanent 
damage,  further  undermining  the  ability  to 
detect and prosecute serious crimes (Annex 7). 
Similarly,  in  the  justice  system,  no  progress 
was  made 
insufficient 
in  addressing  the 
safeguards against the dismissal  of members 
of  the  judicial  council,  negatively  affecting  its 
independence.  This  is  further  exacerbated  by 

across 
(Annex  7).  Moreover, 

creating 

risk 

 
 
amendments  extending  the  judicial  council’s 
powers  in  disciplinary  proceedings,  currently 
under constitutional review.  

Despite continued progress in the reform 
of the judicial map, challenges persist as 
regards  the  judicial  system’s  efficiency. 
Slovakia  completed  the  reform  of  the  judicial 
map under the RRP. The reform was aimed at 
strengthening the specialisation of judges and 
improving  the  organisation  of  courts,  to 
further  improve  the  efficiency  of  the  justice 
reform  was  coupled  with 
system.  The 
investments  in  energy  saving  renovations  of 
existing court buildings, also supported by the 
Recovery  and  Resilience  Facility  (RRF).  An 
evaluation  of  the  reform  is  planned  for  2026 
to assess the impact on judicial efficiency and 
the  functioning  of  the  court  system.  Despite 
these efforts, structural challenges continue to 
hinder  the  efficiency  of  the  justice  system. 
Administrative 
particular 
proceedings 
remain lengthy. This is largely due to  inability 
to  fill  judicial  positions,  contributing  to  case 
backlog (Annex 7).  

in 

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

improving 

Limited  progress  was  made  in  improving 
the  conditions  for  a  favourable  business 
the  Commission 
In  2025, 
environment. 
recommended 
that  Slovakia  ensures  a 
favourable business environment by creating a 
regulatory  environment 
more  predictable 
through 
regulation 
the  better 
framework,  ensuring  that  impact  assessment 
and  stakeholder  consultations  are  integrated 
into  the  legislative  process.  The  unpredictable 
regulatory  environment  remains  the  biggest 
challenge  for  the  business  environment.  The 
main  issue  is  the  frequent  use  of  fast-track 
weak 
legislative 
implementation  of  better  regulation  rules 
(Annex 7). Around 60% of legislative proposals 
follow  the  standard  procedure,  whereas  the 
remaining 40% consist of ad hoc government 
proposals 
(Annex  5).  The  Slovak  better 
regulation  framework,  although  formally  in 

procedures 

and 

to 

the 

and 

consultations 

place, is applied inconsistently and in a strictly 
formalistic  manner,  and  as  such  does  not 
business 
improve 
contribute 
environment. 
amendments 
Substantive 
initiated  by  members  of  parliament,  often  on 
sensitive  matters,  are  made  without  applying 
better  regulation  rules  (for  instance,  these 
amendments are not subject to the obligation 
impact  assessments  and 
to  carry  out 
Overall, 
stakeholder 
consultations). 
stakeholder 
impact 
assessments  are  not  adequately  integrated 
legislative  process,  as  they  are 
into  the 
conducted  under  tight  deadlines.  Follow-up 
and  scrutiny  are  often  lacking.  While  Slovakia 
is  preparing  amendments  of  the  rules  and 
methodology  for  impact  assessments,  the 
specific  arrangements  and  their  effects  are 
still to be seen. At the same time, despite the 
introduction  of  RRP  measures  (e.g.  simplifying 
the  regulatory  environment  and  increasing  its 
predictability  through  ex  post  evaluations, 
prevention  against  excessive  regulation  or 
anti-bureaucratic 
overall 
been  marginal. 
improvements 
Administrative  burden  remains  high,  with 
complex 
compliance 
requirements  continuing  to  hamper  business 
activity. 

procedures 

packages), 

have 

and 

the 

In  2025, 

highly fragmented,  with 

Little  action  has  been  taken  to  address 
the  fragmentation  of  local  governance 
structures. 
the  Commission 
recommended  that  Slovakia  addresses  the 
fragmentation  of  governance 
structures, 
including  by  preparing  a  reform  of  local 
governance.  Local governance in  the  country 
remains 
large 
differences  in  the  size  of  municipalities.  This 
investment  planning  and  the 
undermines 
absorption  of  EU  funding.  There  are  almost 
3 000 municipalities in the country, with 65% 
of  them  having  less  than  1 000  residents. 
Moreover,  funding  often  doesn’t  match  the 
actual  population  living  in  the  municipality 
(Annex  18).  A  reform  of  the  local  governance 
structure  has  however  not  yet  been  initiated. 
While  21  shared-service  centres  have  been 
established,  supported  by 
the  RRP  and 
cohesion  policy  funds,  to  make  municipalities 
management  more  efficient,  intermunicipal 
cooperation  remains  limited  (Annexes  7  and 
18).  On  the  other  hand,  the  2025  CSR  to 
ensure  quality  public  services  through  better 

11 

 
coordination  and  policymaking  has  been 
addressed  to  some  extent.  There  have  been 
positive  developments  in  strategic  planning, 
with  a  dedicated  body  created  under  the 
Office  of  the  Government  to  coordinate 
different  strategic  documents  across 
the 
public administration (Annex 7).  

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. 

recommended 

Recent reforms of the public procurement 
system  have  had  a  negative  impact  on 
transparency and competition. In 2025, the 
Commission 
that  Slovakia 
ensure transparency and competition in public 
procurement  processes 
to  promote  good 
governance  and  improve  the  effectiveness  of 
public  spending.  It  was  also  recommended  to 
the  use  of  quality-related  and 
increase 
lifecycle-cost  criteria  in  public  procurement 
operations.  The  2024  amendment  to  the 
Public  Procurement  Act,  which  merged  sub-
contracts  and 
low-value 
threshold  and 
increased  the  publication-free  threshold  from 
EUR  10 000  to  EUR  50 000,  has  simplified 
procedures, in particular for authorities, but at 
the  expense  of 
competition  and 
fair 
transparency.  As  a  result,  below-threshold 
risk  of 
tenders  now  present  a  higher 
recent 
corruption.  At 
contentious  procurement  procedures  have 
highlighted  the  importance  of  the  capacity  of 
the  Public  Procurement  Office’s  (PPO)  to 
to  safeguard  competition  and 
intervene 
transparency (Annex 5). Finally, two additional 
concerns  are  the 
length  of  procurement 
procedures  (generally  above  the  EU  average), 
and the continuing use of ‘lowest price’ as the 
predominant  criterion  for  awarding  contracts 
(Annex 5).  

same 

time, 

the 

erode 
resilience 

the 
Single  market  barriers 
competitiveness 
of 
and 
businesses, particularly small to medium-
sized enterprises (SMEs). Slovak companies 
suffer difficulties caused by late payments. In 
2025,  a  notably  higher  proportion  of  firms 
(62.4%)  reported  late  payments  from  private 
entities  compared  to  2024  (51.2%).  Slovakia 
has  also  failed  to  address  long-standing  and 
excessive payment delays by public healthcare 
entities.  Allowing 
transfer 
outstanding  claims  from  public  healthcare 
entities to third parties could improve payment 
practices.  Easing  administrative  requirements 

suppliers 

to 

Digital connectivity is advancing, 
but business digitalisation and e-
government services lag behind 

and 

connectivity 

(VHCN),  prioritising 

Slovakia  has  progressed 
in  digital 
infrastructure,  though  challenges  persist 
in  rural  areas.  In  line  with  the  2025  CSR  to 
bolster  digital  infrastructure  by  investing  in 
gigabit 
streamlining 
regulation  for  infrastructure  roll-out,  telecom 
operators  are  investing  in  very  high-capacity 
networks 
fibre-to-the-
premises (FTTP), in both urban and rural areas 
(Annex  4).  The  country  is  advancing  in  5G 
deployment and has achieved a solid coverage 
of  87.94%.  A  spectrum  auction  concluded  in 
July  2025  is  expected  to  further  boost  5G, 
in  urban  areas.  Moreover,  two 
especially 
launched  commercial  5G 
operators  have 
standalone services. The new construction law 
from  April  2025  seeks  to  streamline  digital 
infrastructure  permitting  procedures.  There 
are,  however,  concerns  over  an  increased 
inconsistent 
administrative 
digital 
municipal 
infrastructure 
The  Gigabit 
deployment. 
Infrastructure  Act,  effective  as  of  November 
2025, improved the situation by removing the 
requirement for permits for connections of up 
to 100 metres. However, economic constraints, 
costs  and 
including 
inflation,  coupled  with  complex  permitting 
procedures, hinder investments. The problem is 
particularly  pronounced  in  rural  areas,  where 
VHCN  and  FTTP  coverage  are  below  the 
national  average,  at  39.62%  and  39.57%  (6). 
Plans 
in  gigabit 
infrastructure in these regions were promising, 
but the reallocation of EUR 88 million to other 
priorities has stalled progress.  

complicating 

construction 

for  public 

investment 

practices 

burden 

rising 

and 

(6)  Digital Decade DESI visualisation tool. 

12 

 
 
business 

digitalisation 
Slovakia’s 
initiatives  are  progressing,  but  their 
impact is limited by scope and funding. In 
line  with  the  2025  CSR  to  increase  the 
adoption  of  digital  technologies,  particularly 
among SMEs, by removing bottlenecks in their 
roll-out,  programmes  such  as  Digitrans  and 
European Digital Innovation Hubs support SME 
digital  uptake,  but  their  impact  is  restricted 
due  to  their  limited  reach  and  scale.  As  of 
2025,  57.09%  of  SMEs  had  achieved  at least 
basic digital intensity, improving from previous 
years  but  still  below  the  EU  average  of 
71.39%  (Annex  3).  AI  uptake  shows  progress, 
and Slovakia is implementing measures aimed 
at  further  promoting  its  uptake,  for  instance 
through  the  ‘AI  Vision  for  Slovakia’  strategy 
and  the  work  of  the  Slovak  Centre  for  AI 
Research. 

(Annex  3).  Many  SMEs 

Addressing  digital  skills  gaps  is  crucial 
for  business  digitalisation  in  Slovakia. 
There  is  a  shortage  of  basic  digital  skills 
across the population, alongside  a particularly 
important need to strengthen workforce digital 
competencies  to  support  the  digitalisation  of 
enterprises 
lack 
personnel  to  design  and  manage  digital 
projects.  While  ICT  enrolments  in  secondary 
and 
the 
education  system  still  produces  too  few  ICT 
specialists,  and  training  offers  for  companies 
remain  misaligned  with  business  needs. 
Initiatives  such  as  Digital  Skills  for  the  Green 
Future  of  Slovakia  aim  to  standardise  digital 
and  green  skills  assessment,  but  more 
business-oriented training is needed. 

tertiary  education  have 

risen, 

and 

predictable 

is  needed 

Further  focus  on  the  digitalisation  of 
to 
public  administration 
enhance  service  delivery  and  create  a 
more 
competitive 
environment  for  businesses  and  citizens. 
The  introduction  of  a mobile  eID  in  2025,  the 
accessibility  of  electronic  health  records,  and 
plans to digitalise 16 ‘life events’ to centralise 
administrative  procedures  for  citizens  and 
businesses  are  examples of  Slovakia’s  efforts 
in  the  provision  of  digital  public  services. 
Nonetheless, 
the  satisfaction  with  public 
administration  services  remains  below  the  EU 
average.  While  70%  of  people  find  digital 
public  services  to  be  timesaving,  81%  desire 

for 

low 

more  user-friendly  designs  (7)  (Annex  7).  The 
key  obstacles  to  end-to-end  public  service 
delivery  are  limited  integration  with  base 
registers, 
interoperability 
levels  of 
between base registers, and lack of standards 
for  data  exchange  (8).  This  underscores  the 
need 
data 
governance, interoperability, and further 
services. 
of eGovernment 
integration 
Furthermore,  while  the  RRP-funded  digital 
marketplace  for  IT  procurement  marked  an 
important first step, the digital transformation 
of  the  public  administration  is  hampered  by 
fragmented  procurement  approaches  and 
limited ICT skills (Annex 7).  

improved 

Continued support for and 
consolidation of the research and 
innovation landscape is critical to 
ensure Slovakia’s competitiveness  

R&I 

environment 

The 
remains 
fragmented,  and  limited  progress  has 
been  made  in  improving  collaboration 
between businesses  and  the  research 
sector, as  recommended  in  2025.  The  R&I 
ecosystem 
lacks  predictability  due  to  an 
underdeveloped  institutional  framework  which 
lacks clearly assigned responsibilities. Reforms 
aimed  at 
improving  R&I  governance  and 
coordination  have  been  launched  under  the 
RRP,  and  a  new  coordination  structure  has 
been  set  up,  but  delays  in  approving  related 
follow-up legislation limit the effectiveness of 
R&D  spending. Practices  developed  under  the 
international 
RRP 
evaluations  for  the  award  of  grants  and  for 
knowledge 
to  be 
effective;  these  contribute  to  the  quality  of 
research  outputs  and  increase  their  likelihood 
of  successful  commercialisation.  To  further 
incentivise  technology  transfer,  it  would  be 
beneficial  for  Slovakia  to  follow  international 

transfer  have  proved 

conducting 

linked 

to 

(7)  European Commission, 2026, Flash Eurobarometer 

surveys 567 and 568 on satisfaction with 
administrative services. 

(8)  Interoperable Europe, Slovakia: 2024 Digital Public 

Administration Factsheet, p5. 

13 

 
 
limit 

limited 

venture 

capital, 
Slovakia's 
conservative  investments,  and  stagnant 
financial  literacy  hinder  capital  market 
growth  and 
innovation.  Slovak 
companies rely heavily on internal funding and 
traditional  bank  loans  for  investments.  The 
financial  system  in  Slovakia  is  dominated  by 
the  banking  sector.  Although  banking  assets 
are  significantly  lower  than  the  EU  average, 
they surpass those of other domestic financial 
sectors.  Domestic  capital  markets  remain 
underdeveloped,  primarily  directing  savings  to 
the  government.  Slovak  households  tend  to 
have 
invest 
conservatively,  holding  financial  assets  well 
below  the  EU  norm 
(Annex  6).  Lending 
towards 
show  more  activity 
practices 
households  rather  than  businesses,  while 
recent  pension  reforms  aim  to  boost  capital 
market  investment.  The  venture  capital  and 
private  equity  sectors  are 
insufficiently 
developed  to  support  innovative  enterprises. 
Financial  literacy  has  improved  slightly,  with 
levels  comparable  to  the  EU  average,  though 
the  national  strategy  has  not  been  updated 
since its adoption in 2017. 

saving 

rates 

and 

low 

best  practice  on  ownership  of  intellectual 
property rights generated at universities. 

the 

committed 

government 

Slovakia,  classified  as  an 
‘emerging 
innovator’, registered a growing disparity 
between  its  innovation  performance  and 
the  EU  average.  Public  sector  spending  on 
R&D decreased from 0.45% in 2023 to 0.39% 
in 2024, significantly below the EU average. In 
2023, 
to 
maintaining a trajectory of annual increases in 
R&D  budget  allocations,  which  should  reach 
0.67%  of  GDP  by  2030. This  trajectory  needs 
to  be  maintained 
improve  Slovakia’s 
to 
competitiveness and should be complemented 
by 
further  stimulation  of  private  R&D 
low. 
investment,  which 
Additionally,  weak  private-sector  innovation  is 
further 
enterprise 
expenditure  on  R&D  which  accounted  for  just 
0.59% of GDP in 2024, below the EU average 
of 1.49% (Graph 2.1 and Annex 4). 

remains  critically 

in  business 

evident 

Graph 2.1: Business enterprise expenditure on 
R&D as % of GDP in Visegrad countries 

Source: Eurostat 

SMEs,  highly  prevalent 
in  Slovakia's 
private sector, lack resources to invest in 
R&D,  and  no  progress  has  been  made  in 
revising the R&D tax incentive scheme, as 
recommended  in  2025.  Public  support  for 
R&D is not accessible enough for SMEs due to 
insufficient  provision  of  targeted  competitive 
grant  schemes.  Financial  instruments  under 
the  RRF  have  provided  targeted  support  for 
SMEs.  The  economic 
is  not 
sufficiently diversified and the SMEs and start-
ups operating in the areas of green transition, 
cleantech  or  biotech  do  not  receive  sufficient 
incentives for innovation.  

landscape 

14 

0.5900.20.40.60.811.21.41.6EU averageCZHUPLSK 
  
DECARBONISATION, ENERGY AFFORDABILITY AND 
SUSTAINABILITY 

and 

and 

mobility 

efficient 

intensified 

In  2025,  the  Commission  recommended 
that  Slovakia  prioritise  investments  in 
clean 
production; 
strengthen  the  legislative  framework  for 
green technologies; accelerate renewable 
energy  deployment;  diversify  fossil  fuel 
supply away from Russian sources; invest 
further into the energy grids and support 
zero-emission 
rail 
infrastructure  modernisation.  While 
Slovakia has taken some steps in these areas, 
progress remains limited and uneven. Ongoing 
challenges,  particularly  high  energy  prices, 
require 
support 
competitiveness  and  access  to  clean  energy. 
Slovakia has made some strides, particularly in 
legislative  reforms  aimed  at  accelerating  the 
green  transition  and,  to  some  extent,  in 
investments in the distribution grid to prepare 
for  the  uptake  of  renewables.  Despite  these 
country 
advancements, 
faces 
the 
still 
structural  challenges 
in  achieving  carbon 
removal goals, strengthening the transmission 
network  and  integrating  renewables  into  the 
legal  amendments 
grid  efficiently.  Recent 
renewable  project 
aimed  at  streamlining 
permits  and 
flexibility 
measures  contribute  to  the  green  transition, 
although  dependence  on  Russian  fossil  fuels 
remains high. 

introducing  grid 

efforts 

to 

Structural weaknesses slow down 
decarbonisation and affect 
competitiveness  

remains  among 

the  most 
Slovakia 
carbon-intensive  economies  in  the  EU. 
Manufacturing  activities  account 
the 
largest  share  of  total  emissions  in  Slovakia, 
the  highest  in  the  EU  (Annex  8).  In  2024,  the 

for 

emission intensity of the Slovak economy was 
among  the  highest  in  the  EU  (9),  with  the 
manufacturing  sector  representing  a  large 
share of 33% of domestic GHG emissions. The 
majority  of  the  emissions  originate  from 
energy  use  in  production  processes,  followed 
by  emissions  stemming 
industrial 
processes  and  product  use.  Moreover,  the 
share  of  electricity  and  renewable  energy 
sources 
final  energy 
consumption  gradually  decreased  between 
2017  and  2022,  by  approximately  three 
percentage  points,  despite  improvements  in 
energy efficiency (Annex 8). 

in  manufacturing’s 

from 

the 

lagging 

framework 

The 
industry  decarbonisation 
highlights  the  need  to  accelerate  the 
transition  towards  cleaner  production 
processes  to  maintain  competitiveness. 
The  2025  country-specific  recommendations 
(CSRs)  highlighted  the  need  to  (i)  prioritise 
investments  in  clean  and  efficient  production 
and in the use of energy and resources and (ii) 
to 
legislative 
strengthen 
support  green  technologies  and  products  and 
promote  investments  to  advance  industrial 
competitiveness  and  economic  diversification. 
Slovakia’s  national  energy  and  climate  plan 
outlines  a  broad  set  of  priority  actions 
designed 
to  support  decarbonisation  and 
modernise the industrial base, but the country 
lacks  an  overall  framework  operationalising 
(Annex 
decarbonisation 
industry 
8).Decarbonisation  needs 
start  with 
to 
investments  improving  energy  efficiency  and 
processes,  where 
electrifying 
achievable.  More  renewables  in  the  electricity 
mix  would  make  the  system  less  prone  to 
external  shocks  and 
fossil  price-setting, 
lowering  average  electricity  prices.  As  a 
cheaper  and  relatively  stable  source,  the 
Slovak  manufacturers  would  be  able  to 

industrial 

(9)  Climate Action Progress Report, 2026. 

15 

 
 
 
engage in long-term fixed contracts, benefiting 
from predictable long-term pricing. 

Slovakia’s  decarbonisation  efforts  rely 
heavily  on  funding  from  the  EU  and  the 
EU’s  emission  trading  scheme 
(ETS). 
Slovakia  receives  revenues  from  the  EU  ETS 
through the auctioning of emission allowances. 
A  substantial  share  of  these  proceeds  is 
channelled into the Slovak Environmental Fund 
(Envirofond)  to  support  climate  action,  energy 
efficiency  and 
protection 
industrial 
projects, 
decarbonisation  projects  has  at  times  proven 
difficult. (Annex 8). For instance, in 2024, U.S. 
Steel  Košice  planned  a  major  decarbonisation 
EUR 
investment 
300 million  from  the  RRF,  but  the  project  did 
not  proceed  due 
timeline  challenges. 
to 
Overall,  there  is  a  gap  between  ETS  revenues 
and  actual  environmental  spending,  reflecting 
low absorption rates. 

environmental 
key 

supported 

funding 

though 

about 

by 

is 

to 

diversify 
planning 
Slovakia 
decarbonisation  pathways  through  the 
development  of  hydrogen  technologies, 
but  market  realities  are  slowing  down 
progress.  The  national  hydrogen  strategy, 
prepared  under  the  RRP,  aims  to  support  the 
gradual integration of hydrogen into industrial 
processes,  particularly 
in  energy-intensive 
sectors.  Furthermore,  as  part  of  the  RRP, 
Slovakia  also  transposed  parts  of  European 
legislation  relevant  for  the  hydrogen  sector 
into  its  national  legislation  and  adopted  a 
strategic  document  for  the  development  of  a 
Slovak hydrogen economy by 2050 (Annex 8). 
Small-scale  projects  are  starting  to  come 
online,  such  as  in  Trnava,  and  more  projects 
are  approaching  the  final  investment  decision 
stage.  However,  further  steps  need  to  be 
undertaken  to  support  the  development  of 
Slovakia’s hydrogen ecosystem, in particular in 
industrial decarbonisation.  

Delays in renewable deployment 
and limited diversification of 
energy supplies constrain the 
transition towards a more secure 
energy market  

to 

the 

in  grids, 

investments 

the  heating 

(i)  accelerate 

A further boost to renewables will ensure 
Slovakia’s  supply  of  affordable 
low-
carbon  energy.  Slovakia  received  CSRs  in 
rollout  of 
2025 
renewables,  while  making  the  procedures  for 
connecting  renewables  to  the  grid  more 
efficient  and  less  burdensome;  and  (ii)  to 
in 
support  further 
particular  electricity  networks,  as  well  as  in 
decarbonisation  of 
sector. 
Slovakia's  electricity  mix  is  largely  dominated 
by  nuclear  generation  (61.9%),  with  fossil 
fuels  contributing  around  15%;  the  share  of 
hydropower  is  13-15%  and  of  PVE,  2.5-3% 
(Annex  9).  Slovakia  is  expanding  its  nuclear 
capacity,  having  connected  a  new  nuclear 
reactor, Mochovce, in 2023 and is constructing 
the  fourth  unit  at  the  same  location  (to  be 
completed in 2026). Both units will add around 
942  MW  of  new  nuclear  capacity,  boosting 
significantly  Slovakia’s  electricity  supply.  The 
Slovak  government  plans  to  further  expand 
nuclear capacity and has approved the plan for 
the  construction  of  a  new  unit  in  Jaslovske 
Bohunice,  even  though  this  will  not  be 
operational  before  2040  (Annex  9).  Slovakia 
phased  out  coal  from  electricity  generation  in 
2023and  plans  to  further  reduce  the  carbon-
intensity  of  its  electricity  mix,  based  primarily 
on  nuclear  power  and  renewable  energy 
sources.  Natural  gas  is  expected  to  play  a 
transitional  role;  it  currently  accounts  for 
around  8-9%  of  Slovakia’s  total  electricity 
generation (Annex 9). Any further investments 
in  natural  gas  capacity,  unless  targeted  and 
limited in scope, could create lock-in risks and 
lead to stranded assets. At the strategic level, 
Slovakia  has  taken  some  steps  to  strengthen 
its  renewable  energy  commitments,  but  the 
level  of  ambition  remains  insufficient.  In  its 
final  update  of  the  national  energy  and 
its 
the  country 
climate  plan, 
proposed  contribution  to  the  EU’s  2030 
renewable  energy  target  from  23%  to  25%. 
Nevertheless,  this  remains  significantly  below 

increased 

16 

 
 
 
 
the  35%  level  expected  under  the  Energy 
Union  governance  framework  (Annex  9).  Amid 
the  ongoing  electrification  of  the  Slovak 
economy,  given  also  the  long  lead  times  for 
building  new  nuclear  units,  the  renewable 
energy  deployment  over  the  coming  decade 
will  be  key  to  limiting  reliance  on  natural  gas 
and ensuring energy affordability and security. 

High energy prices, augmented further by 
the  conflict  in  the  Middle  East,  continue 
to  pose  a  challenge  for  the  Slovak 
industrial 
undermining 
economy, 
competitiveness.  Electricity  prices  differ 
markedly between businesses and households: 
household  tariffs 
in  Slovakia  are  heavily 
regulated and subsidised, while businesses are 
exposed  to  market-based  pricing  and  pay  the 
larger  share  of  network  charges  and  levies. 
Slovakia's  wholesale  electricity  prices  rose  by 
11% from 2024, influenced by natural gas as 
an expensive balancing fuel. In the first half of 
2025,  household  electricity  and  gas  tariffs 
stayed  below  the  EU  average  (Annex  9). 
However, while non-household gas prices have 
been  in  alignment  with  EU  levels  since  2024, 
industrial  electricity  prices  remain  above  the 
EU  average,  with  large  consumers  paying 
about three times more for electricity than for 
gas.  This  is  compounded  by  taxes  and  levies, 
which  make  up  more  of  electricity  bills  than 
actual  gas  costs.  Furthermore,  the  role  of 
expensive  natural  gas  in  setting  the  marginal 
price  creates  a  risk  of  increased  pressure  on 
energy-intensive  industries  and  of  weakening 
the  Slovak  economy  (Annex  9).  Therefore, 
Slovakia could benefit from lowering electricity 
taxation,  in  particular  for  industry,  alongside 
other  measures  to  improve  the  electricity-to-
gas  price  ratio,  while  removing  barriers  to 
electrification. 

deployment 

of 
(RAAs), 

The  potential  of  wind  energy,  including 
renewable 
through 
acceleration  areas 
remains 
untapped  in  Slovakia.  One  of  the  main 
obstacles  to  wind  energy  deployment  is  the 
complex  permitting  framework.  To  date,  no 
large  wind  energy  project  in  Slovakia  has 
the  environmental 
successfully  completed 
(EIA)  process,  which 
impact  assessment 
represents  a  critical  bottleneck  for  project 
development  (Annex  9).  As  part  of  Slovakia’s 

17 

the 

RRP,  measures  were  adopted  to  harmonise 
grid  connection  procedures  and 
improve 
transparency  and  efficiency,  including  rules 
re-release  of  unused  grid 
allowing 
is  uncertain  what 
it 
capacities.  However, 
impact  the  new  rules  will  have  on  the 
acceleration  of  the  roll-out  of  renewables.  In 
addition, the Slovak government amended the 
Act on EIA and adopted legislation establishing 
criteria  for  the  designation  of  RAAs  for  wind 
energy. However, the impact of these reforms 
remains to be seen. The designation of an RAA, 
expected in August 2026, with at least 0.3GW 
of potential installed capacity, would allow for 
some  progress 
large-scale 
renewable  installations,  contributing  to  lower 
and less volatile electricity prices. The addition 
of wind energy, which has low marginal  costs 
and  delivers  also  in  peak  demand  times 
(during  evenings  and  winters),  has  a  potential 
to reduce the need for more expensive backup 
power  sources  like  natural  gas  plants  (Annex 
9).  Public  opinion  continues  to  play  an 
important  role  in  shaping  prospects  for  wind 
importance  of 
projects,  highlighting 
reconciling  the  need  to  develop  sources  of 
reliable  and  affordable  energy  with  social 
acceptance. 

in  developing 

the 

enjoys 

strong 

demand. 

Investments 

Slovakia 
regional 
connectivity,  but  the  grid  infrastructure 
remains insufficient to accommodate new 
capacity  from  renewables  and  rising 
electricity 
in 
transmission  infrastructure  have  increased  in 
line  with  national  development plans,  and  the 
distribution  grid  has  undergone  substantial 
upgrades 
in  recent  years.  The  RRF  and 
cohesion  policy  funds  further  support  these 
limitations, 
efforts  by  addressing  grid 
enhancing  system  flexibility,  and  promoting 
renewable  energy  integration.  A  significant 
part  of  RRF  funding  to  Slovakia  (EUR  354 
million,  i.e.  around  6%  of  the  overall  RRF 
allocation)  is  dedicated  to  energy  efficiency 
and decarbonisation and targets key initiatives 
such  as  electricity  storage,  modernisation  of 
distribution  networks,  and  new  renewable 
energy  generation. 
These  projects  are 
scheduled  for  completion  under  the  final  RRF 
payment,  so  their  full  impact  and  operational 
extent  will  become  clearer  in  the  second  half 
time,  Slovakia's 
of  2026.  At  the  same 

 
energy 

out  dependence  on  Russian  sources.  In  early 
2026,  Slovakia  was  strongly  affected  by  the 
disruption  of  Ukrainian  transit  routes,  which 
in  regional  supply 
exposed  vulnerabilities 
supply 
structures.  Progress  on 
diversification has been very limited so far. In 
the  context  of  the  EU  commitments  to  the 
phase-out  of  Russian  natural  gas  imports  by 
2027  at  the  latest,  Slovakia  has  made  some 
progress  in  reducing  gas  demand  as 
its 
consumption  has  declined  by  around  18-20% 
since August 2022, broadly in line with the EU 
average  (Annex  9).  As  regards  diversification, 
the national gas supplier SPP has expanded its 
portfolio of contracts with international energy 
companies  and  liquified  natural  gas  suppliers, 
enabling  a  growing  share  of  consumption  to 
be covered from non-Russian sources. The halt 
of  Russian  gas  transit  via  Ukraine  at  the  end 
of 2024 has also shifted supply, with gas now 
reaching  Slovakia  mainly  via  alternative 
routes,  notably  via  the  Austria/Trans-Balkan 
routes.  Despite  these  efforts,  dependence  on 
Russian energy imports remains significant. In 
2025, more than half of Slovakia’s natural gas 
imports  were  still  of  Russian  origin.  Slovakia 
continues  to  rely  almost  entirely  on  Russian 
crude  oil  delivered  through  the  Druzhba 
pipeline,  under  a  long-term  supply  contract 
valid until the end of 2029 (Annex 9). While an 
alternative  supply  route  exists,  the  Adria 
pipeline from Croatia, it has been underutilized 
by Slovakia. There have been ongoing trilateral 
negotiations  between  Slovakia,  Hungary  and 
Croatia  about  the  technical  feasibility  of  the 
Adria  pipeline  as  well  as  about  transmission 
tariffs.  However,  following  the  interruption  of 
the Druzhba pipeline between 27 January and 
23 April 2026, Slovakia’s security of oil supply 
(non-
was  maintained  due 
Russian)  crude  oil  flow  on  the  Adria  system. 
Slovakia  even  managed 
its 
emergency oil stocks thanks to oil flows on the 
Adria  during  that  period.  This  experience 
showcased  the  technical  feasibility  of  the 
Adria  pipeline.  In  parallel,  negotiations  with 
Czechia about the feasibility of a reverse flow 
to  Slovakia  are  ongoing.  Accelerating  the 
diversification 
and 
infrastructure  adaptation  would  be  beneficial 
for  strengthening  Slovakia’s  energy  security 
and reducing remaining vulnerabilities. 

to  replenish 

increased 

supplies 

oil 

of 

to 

infrastructure 
investments 

is 
domestic  electricity  grids 
outdated  and 
its 
requires 
modernisation.  This  will  also  be  needed  to 
ensure  that  Slovakia  can  reliably  integrate 
growing  renewable  energy  (including  planned 
wind energy investments) and rising electricity 
demand, 
expected 
including 
electrification of the industry (Annex 9) 

from 

the 

regards 

legislative 

Slovakia  made 
some  progress  on 
renewable  auctions,  but  progress  on 
other  structural  measures  incentivising 
the  rollout  of  renewable  energy  sources 
remains  very  limited.  Lack  of  long-term 
certainty  for  investors  continues  to  be  a 
structural barrier. In 2024 and 2025, Slovakia 
issued  auction  calls  to  support  photovoltaic 
energy  (PVE)  under  the  RRP,  but  the  demand 
was  weak.  Slovakia  intends  to  move  towards 
using contracts for difference (CfDs) as part of 
its  energy  market  framework,  but  they  have 
not  yet  been  widely  implemented  in  practice. 
As 
framework 
introduced  by  Slovakia  for  power  purchase 
agreements  (PPAs)  already  in  2024,  without 
an  increase  in  new  renewable  generation 
capacity,  especially  wind  energy,  which  could 
provide  stable  and  competitively  priced 
electricity, the development of PPAs is likely to 
remain  very  limited  (Annex  9).  There  is  a 
strong  rationale  for  accelerating  renewable 
energy  deployment,  in  particular  given  the 
potential  of  wind  power  to  supply  affordable, 
low-carbon  electricity 
could  boost 
industrial  competitiveness  and  support  the 
broader energy transition. Slovakia has seen a 
limited  increase  in  investments  in  electricity 
storage  in  batteries  and  hybrid  systems  in 
recent  years,  though  the  country’s  main 
storage  capacity  historically  comes  from 
pumped  hydro  plants  (as  for  instance  the 
hydro  storage  at  Čierny  Váh,  a  project  of 
common interest which received a Connecting 
is 
Europe  Facility  grant 
potential 
of 
greater 
geothermal  energy  in  certain  regions,  due  to 
favourable geological conditions` (Annex 18). 

in  2026).  There 
exploitation 

that 

for 

energy 

security 

Slovakia’s 
remains 
heavily  constrained  by  a  continued 
reliance  on  Russian  fossil  fuels.  Slovakia 
received  a  CSR  in  2025  to  accelerate  the 
diversification  of  fossil  fuel  supply  to  phase 

18 

 
Transport decarbonisation 
advances at a very slow pace due 
to lack of regulatory incentives 

strong 

Slovakia’s 

zero-emission  mobility  and 

Slovakia's  transport  sector  continues  to 
face  major  challenges  in  transitioning 
towards zero-emission vehicles and more 
sustainable  mobility  modes.  Slovakia 
received a CSR in 2025 to support further roll-
to 
out  of 
modernise  its  rail  network,  by  reforming  the 
national railway infrastructure governance and 
creating  a  dedicated  investment  framework. 
automotive 
Despite 
manufacturing  base,  the  domestic  uptake  of 
zero-emission  vehicles  remains  among  the 
lowest  in  the  EU.  Battery-electric  vehicles 
represented  2.4  %  of  new  passenger  car 
registrations in  2024,  placing  Slovakia  among 
the lowest-ranking EU Member States in terms 
of  deployment  of  zero-emission  vehicles. 
Slovakia  has  taken  steps  to  support  the 
transition 
including  by 
adopting  an  electromobility  action  plan  and 
planning 
in 
the  RRP, 
infrastructure. 
recharging 
particular 
However,  the  actual  implementation  of  the 
electromobility action plan is still very limited. 
Moreover,  Slovakia  does  not  currently  apply 
EU-permitted  incentives  such  as  road  toll 
exemptions 
for  zero-emission  heavy-duty 
vehicles.  Such  policy  measures,  alongside 
strengthened  rail  infrastructure  and  services, 
transport 
would 
decarbonisation (Annex 8).  

investments  under 

to  electromobility, 

accelerate 

freight 

for 

in 

as 

being 

project 

investments 

rail 
in 
Although 
infrastructure  are 
supported 
through  European  funds,  Slovakia  faces 
delays  in  their  delivery,  particularly  due 
to  issues  in  the  pre-investment  phases, 
such 
preparation, 
permitting,  and  public  procurement. 
Slovakia’s  2025  Construction  Act  contains 
and 
at 
provisions 
streamlining 
approval 
proceedings; 
implementation,  however,  has 
been  set  back  by  capacity  constraints  (Annex 
19).  Additionally,  the  lack  of  a  predictable 
funding  framework  under the  national  budget 
continues to be a constraining factor. Slovakia 

infrastructure 

accelerating 

aimed 

could  consider  guaranteeing  annual  national 
budgetary  contributions  to  national  transport 
infrastructure  development  and  upkeep, 
allowing for a predictable source of funding to 
be used alongside European and public-private 
financing.  Upgrading 
connection 
between  Bratislava  and  Košice  to  a  higher 
speed  could  greatly  benefit  the  economic 
development of Eastern Slovakia (Annex 18). 

railway 

Weaknesses in climate 
governance, municipal waste 
management and resource 
conservation affect economic 
productivity 

of 

coverage 

insurance 

Slovakia’s  high  vulnerability  to  extreme 
weather  events  is  not  reflected  in  the 
level 
and 
preparedness, impacting the economy and 
society.  Between  1980  and  2023,  Slovakia 
recorded  EUR  1.95  billion  in  economic  losses 
caused  by  extreme  weather  and  climate-
related  events.  Yet,  only  4%  of  the  economic 
damages over that period were insured, which 
is  one  of  the  lowest  rates  of  weather  and 
climate  insurance  coverage  in  the  EU  (EU 
average:  19%).  While  Slovakia  adopted  an 
important national adaptation plan in 2021, it 
still  needs  to  carry  out  a  comprehensive 
assessment  of  its  vulnerability  to  climate 
change  and  officially  adopt  the  updated 
national  adaptation  strategy.  As  much  as 
Slovakia has progressed on implementation of 
adaptation  policies  thanks  to  EU  funding,  the 
Slovak TEN-T network is still highly vulnerable 
due  to  lack  of  institutional  preparedness. 
Constructive  investments  in  climate  resilience 
have  been  slowed  down  by  low  awareness  at 
regional  and  local  level  and  an  inadequate 
degree 
cooperation. 
interministerial 
Structural  mainstreaming  of  nature-based 
solutions  across  sectors,  strengthening  the 
climate adaptation governance at national and 
sub-national  level  and  promoting  insurance 
against  climate-related  events  would  help 
address this issue.  

of 

Slovakia  continues  to  face  water  quality 
challenges. 
and  water  management 

19 

 
of 

are 

leading 

degraded, 

resources, 

received  a  CSR  in  2025  to  strengthen  the 
conservation 
by 
natural 
mainstreaming  nature-based  solutions  and 
finalising  the  zonation  of  nature-protected 
areas. Nevertheless, around 60% of Slovakia’s 
ecosystems 
to 
significant  losses  in  services  such  as  climate 
regulation,  flood  control  and  timber  provision. 
With  the  associated  losses  coming  at  about 
EUR 20 billion per year, ecological degradation 
has a major economic impact. 75% of species 
and  60%  of  habitats  in  the  country  are  in  a 
poor or bad conservation state. This is caused 
by  pressures  such  as  unsustainable  forestry 
and 
infrastructure 
development  and 
invasive  species.  The 
finalisation  of  the  zonation  of  national  parks 
planned  under  the  RRP,  with  respect  to  the 
Natura  2000  sites, 
local  habitats  and 
ecosystem  values,  would  address  the  issue  if 
completed  appropriately.  New  incentives  for 
agricultural 
sustainable 
management, 
agroecological 
including 
practices,  could  be  introduced  to  encourage 
landowners  to  adopt  practices  that  are  not 
primarily production-focused.  

agriculture 

practices, 

forestry 

and 

Slovakia  received  a  CSR  in  2025  to  increase 
water  resilience  by  mainstreaming  nature-
based  solutions.  However, 
the  ecological 
status  of  surface  water  bodies  continues  to 
deteriorate.  Surface  water  bodies  also  face 
high pressure from, among others, alternations 
interrupting  the  natural  flow  of  rivers.  Such 
disruptions  are  caused  also  by  the  small 
hydropower  plants  installed  on  Slovak  rivers 
without  sufficient  assessment,  which  are 
subject  to  ongoing  infringement  proceedings. 
Additionally,  pesticide  and  nitrogen  fertiliser 
in 
contamination  remains  a  critical 
groundwaters,  with  levels  well  above  the  EU 
average.  Removing  barriers  to  restore  river 
ecosystem  connectivity  and  create  free-
flowing  rivers,  and  incentivising  the  reduction 
of  pesticide  and  fertiliser  inputs,  would  help 
improve the ecological status of water bodies. 
Additionally,  Slovakia  could  build  on  the  RRF 
into 
invest 
experience 
watercourses revitalisation.  

further 

issue 

and 

and 

landfilling 

Slovakia  made 
some  progress  on 
recycling  of  packaging  waste;  municipal 
waste 
resource 
productivity,  however,  remain  an  issue. 
Slovakia received a CSR in 2025 to strengthen 
resource waste management and the reuse of 
municipal  and  packaging  waste.  Slovakia  has 
moved  in  the  right  direction  in  terms  of 
recycling  rate  of  packing  waste,  with  total 
packaging waste and materials recycling close 
to  and  above  the  respective  2025  targets. 
Nevertheless, resource productivity in Slovakia 
is  still  below  the  EU  average.  Slovakia 
continues  to  be  at  risk  of  missing  the 
municipal waste and packaging waste targets, 
as  well  as  the  2035  target  of  maximum  of 
10%  of  municipal  waste  landfilled.  While  a 
landfill ban on biodegradable waste was put in 
place  in  2023,  mixed  municipal  waste  is  still 
allowed to be landfilled without pre-processing 
repeatedly  postponed 
and  Slovakia  has 
introducing  an  obligation  to  pre-process  this 
type  of  waste.  Slovakia  would  benefit  from 
encouraging  investments  in  recycling  or  reuse 
infrastructure,  to  stimulate  domestic  demand 
and productivity growth in the sector. 

The  degrading  nature  ecosystems  affect 
the  productivity  of  agriculture,  forestry 
industries.  Slovakia 
and  water-related 

20 

 
 
SKILLS, QUALITY JOBS AND SOCIAL FAIRNESS 

in 

the 

labour 

(CSRs) 

teacher 

training; 

recommendations 

In  2025,  Slovakia  received  country-
to 
specific 
strengthen 
market 
participation of underrepresented groups; 
increase the availability and use of early 
childhood education and care; strengthen 
the  teaching  of  basic  skills;  provide 
reskilling  and  upskilling  opportunities; 
improve 
invest 
primary  care  provision;  strengthen  the 
resilience  of  the  health  system  and 
ensure  affordable  and  quality  long-term 
care.  While  some  measures  have  been  taken 
across  these  areas,  progress  remains  uneven 
and overall limited. Further efforts are needed, 
in  particular  to  (i)  increase  labour  market 
participation  among  underrepresented  groups, 
such  as  the  Roma  population,  which  remains 
marginalised;  (ii)  accelerate  the  provision  of 
flexible  work 
affordable 
arrangements;  (iii)  strengthen  basic  skills  and 
inclusive  education  outcomes;  (iv)  better  align 
reskilling  and  upskilling  with  labour  market 
needs; and (v) address structural challenges in 
primary  care,  healthcare  financing  and  long-
term care provision. 

childcare  and 

Labour market participation of 
underrepresented groups, including 
women with small children, could 
be boosted  

The  lagging  labour  market  participation 
of  underrepresented  groups  remains  an 
obstacle to growth and social cohesion. In 
2025,  Slovakia  received  a  CSR  to  strengthen 
the 
of 
underrepresented  groups.  Progress  remains 
limited,  as  persistent  regional  disparities  and 
structural  challenges,  particularly  affecting 
marginalised  communities  and  women  with 
to  hinder 
care 

responsibilities,  continue 

labour  market 

participation 

of  marginalised 

regional  disparities.  The 

substantial 
improvement.  Rapid  population 
ageing,  outward  migration  of  young  people, 
weak  activation  of  underrepresented  groups 
(specifically  the  long-term  unemployed,  older 
workers,  low-skilled  workers,  people  of  Roma 
background,  residents  of  structurally  weaker 
areas, and women, especially those caring for 
young  children)  and  the  low  attractiveness  of 
the  Slovak  labour  market  deepen  skills  gaps 
long-term 
and 
unemployment 
groups, 
particularly  Roma,  remains  a  challenge,  with 
the  employment  rate  among  Roma  aged  16-
24  standing  at  only  30%  and  that  of  Roma 
women  being  even  lower  (21%)  (Annex  11). 
Employment  levels  in  the  eastern  regions 
(Prešov, Košice) are generally low (72.5%,) and 
the supply of quality jobs is limited (Graph 4.1, 
Annex  11).  At  the  same  time,  insufficient 
labour market integration of non-EU nationals 
as  Slovakia 
constrains 
struggles  to  convert  migration  into  relief  for 
skilled  labour  shortages.  Slovakia  scores  only 
39/100  on  the  Migrant  Integration  Policy 
Index,  with  particularly  low  results  in  labour 
market  mobility  (Annex  11).  Additionally,  the 
employment  gap  for  women  with  young 
children  remains  wide.  Spending  on  active 
labour  market  policies  (ALMPs)  remains  low 
and  heavily  reliant  on  EU  funding.  Improved 
and  targeted  ALMPs  could  serve  as  tool  for 
investing  in  people’s  potential,  ensuring  that 
the  quality  of  training  matches  modern 
industry demands. 

competitiveness, 

21 

 
 
Graph 4.1: Employment rate by region and sex 
in 2025 

Slovakia struggles to improve 
basic skills and make education 
inclusive 

Source: Eurostat, LFS [lfst_r_lfe2emprt]. 

Limited  access  to  affordable  childcare 
and 
flexible  work  options,  and  a 
persistent  pay  gap,  hinder  women’s 
ability  to  enter  the 
labour  market. 
Slovakia  received  CSRs  to  introduce  more 
flexible  work  arrangements  for  parents  with 
children  and  to  increase  the  availability  and 
use of affordable high-quality early  childhood 
education and care for children under the age 
of  three.  Slovakia  made  little  progress  in 
promoting  and  expanding  flexible  working 
arrangements for parents, and the availability 
of  part-time  and  teleworking  options  remains 
among  the  lowest  in  the  EU,  despite  existing 
legal  provisions.  Women’s  participation  in  the 
workforce is hindered by the lack of adequate 
childcare services, especially for children under 
the  age  of  three.  Despite  some  progress 
achieved in expanding childcare services (ages 
0–3), the participation rate is still the lowest in 
the EU at 1.8% (EU: 40.5%). Capacity is set to 
grow  as  there  are  plans  to  make  enrolment 
from  age  three  mandatory  by  2028,  with 
support 
Regional 
Development  Fund  (ERDF)  and  the  European 
Social  Fund  Plus  (ESF+).  Additionally,  Slovakia 
still has one of the highest gender pay gaps in 
the  EU, 
reaching  approximately  18.3%, 
particularly  among  working  women  with 
children under the age of three.  

European 

from 

the 

not 

Limited progress has been made towards 
improving  basic  skills  in  the  country. 
Slovakia received a CSR in 2025 to strengthen 
the  teaching  of  basic  skills,  including  for 
children  from  disadvantaged  backgrounds 
notably  in  marginalised  Roma  communities. 
in  particular  among 
Weak  basic  skills, 
disadvantaged  learners,  are  exacerbated  by 
absenteeism 
in  schools  and  early  school 
leaving  in  rural  areas  (Annex  13).  Persistent 
educational  and  skills  gaps,  especially 
in 
mathematics  and  reading,  with  one  third  of 
15-year-olds 
reaching  minimum 
proficiency  in  mathematics  (33.2%),  reading 
(35.4%)  and  science  (30.6%),  place  Slovakia 
below  the  EU  average  and  jeopardise  young 
people’s  future  access  to  the  labour  market. 
Similarly,  early  school  leaving  undermines 
young  people’s  employment  prospects.  This 
represents  a  persistent 
loss  of  qualified 
workers.  While  substantial  reforms  supported 
by  the  ESF+  and  the  RRP  are  underway,  they 
are  yet  to  demonstrate  results.  Effective 
implementation  of  the  curricular  reform  and 
application  of  innovative  teaching  methods, 
reading  and  science, 
with  a 
technology,  engineering  and  mathematics 
(STEM) 
improve 
could 
subjects, 
performance in basic skills.  

focus  on 

help 

Reforms  are  ongoing  to  improve  the 
inclusiveness of education, but challenges 
remain  and  disparities  across  regions 
persist.  Slovakia  received  a  CSR  to  ensure 
equal and inclusive access to quality education 
at all levels. Despite some legislative changes 
(e.g.,  the  2025-2027  strategy  for  inclusive 
education  and  training  and  amendments  to 
the  Education  Act  in  2023  and  2024),  it  is 
important to ensure the availability of support 
measures.  For  example,  even  though  children 
with  special  education  needs make  up one-
third  of  all  pupils,  support  measures  were 
provided 
(Annex 
13). Insufficient  support  to  schools  with  high 
shares  of  disadvantaged  learners  reduces 
students’  future  employability  and  earnings 

to  only  14%  of 

them 

22 

0102030405060708090100Bratislava RegionWestern SlovakiaCentral SlovakiaEastern SlovakiaTotalMalesFemales 
   
perspectives  and  increases  the  risk  of  long-
term inactivity.  

Skills shortages and talent outflow 
weigh on the labour market 

the 

investing 

importance 

The widening gap between workers’ skills 
and  the  demands  of  the  economy 
underscores 
of 
accelerating  reskilling  and  upskilling, 
including  investing  in  teachers’  training. 
Significant  skills  shortages  are  being  reported 
across  businesses,  affecting  over  50%  of 
Slovak  enterprises  and  putting  the  Slovak 
labour  market  under  pressure  (Annex  11).  In 
2025,  Slovakia  received  a  CSR  to  provide 
reskilling  and  upskilling  opportunities  for 
in  teacher  training,  and 
adults, 
increasing  enrolment 
in  STEM  education 
programmes. Slovakia made some progress in 
expanding  adult  learning  through  initiatives 
such  as  digital  skills  programmes,  individual 
learning  accounts,  and  pilot  training  centres. 
However,  the  system  still  needs  to  better 
low-skilled  workers  and  be  better 
target 
aligned  with  labour  market  needs.  Despite 
improvements  in  the  quality  of  vocational 
education  and  training  (VET)  through  stronger 
the 
school–employer 
cooperation 
establishment  of 
centres  of  vocational 
excellence,  participation  in  workplace-based 
learning  (58.5%  in 2024)  remains  below  both 
the  EU  average  (65.2%)  and  the  2025  target 
of  60%.  This  underscores  the  need  to  further 
expand  employer  engagement  and  practical 
training opportunities (Annex 13). At the same 
time,  most  future  job  openings,  mainly  from 
retirements  and  other  departures,  will  require 
medium  to  high-level  skills  that  the  current 
workforce  cannot  fully  meet.  A  significant 
portion  of  the  population  still  lacks  basic 
digital skills, and women’s participation in tech 
is  low  (see  Chapter  2).  Moreover,  Slovakia 
faces teachers’ shortages, particularly in STEM 
subjects.  While  some  measures  have  been 
taken,  including  the  creation  of  a  network  of 
regional centres under the RRP, further support 
to teachers is needed to effectively implement 
the 
through  quality 
reform, 
mentoring and needs-based training.  

curricular 

and 

in 

retaining  high-skilled 
Attracting  and 
is  key  for  boosting  economic 
talent 
education 
Tertiary 
competitiveness. 
attainment 
STEM 
enrolment 
and 
programmes is below the EU average and the 
proportion  of  graduates  at  doctoral  level  has 
been  decreasing.  In  addition,  Slovak  students 
have  for  a long  time  chosen  to  pursue  higher 
Approximately 
education 
every fifth secondary  school  leaver continues 
in tertiary  education  abroad (10)  (mostly  in 
Czechia)  and  the  majority  do  not  return  back 
to Slovakia’s labour market. The rate of return 
for IT graduates is particularly low (Annex 13). 
It  is  thus  important  to  foster  an  attractive 
labour  market  to  which  Slovak  students  can 
return and contribute.  

abroad. 

Limited social protection leaves 
vulnerable groups and unemployed 
people at risk of poverty 

Slovakia  is  marked  by  deep  regional 
socio-economic  inequalities,  while  social 
benefits  are  untargeted  and  social 
protection is limited. Concerning job quality, 
limited  social  protection  leaves  almost  two-
thirds of unemployed people at risk of poverty, 
far  exceeding  the  EU  average.  Many  self-
employed  workers  also  lack  adequate  social 
protection  and  their  participation  in  insurance 
schemes is low (Annex 12). Roma communities 
continue  to  face  extreme  poverty  and  social 
exclusion. 
In  2025,  Slovakia  recorded  an 
improvement  in  the  risk  of  poverty  or  social 
(16.7%)  compared  with  2024 
exclusion 
(18.3%),  staying  below 
the  EU  average 
(20.9%).  Yet,  the  rate  remained  higher  than 
before  the  pandemic.  High  poverty  risks  in 
regions  are  fuelled  by 
some  Slovakia’s 
inflation, 
real  wage  erosion,  and  social 
benefits  that  are  not  sufficiently  targeted  at 
the  most  vulnerable  groups  (Annexes  12  and 
18).  Benefits  are  uniform  nationwide  and 
often  fail  to  meet  local  needs.  The  collective 
bargaining system covers only about a quarter 
is 
of  employees.  The  minimum 

income 

(10)  Education and Training Monitor 2025 

23 

 
 
transport  poverty,  specific  measures  could 
include  on-demand  transport  measures  and 
social taxis in the most affected rural regions.  

Structural shortages and financing 
pressures challenge the 
sustainability of Slovakia’s health 
and long-term care system 

care 

especially 

Access  to  primary  care  and  preventive 
healthcare  in  Slovakia  remains  limited, 
despite  some  recent  policy  initiatives. 
Slovakia  received  CSRs  in  2025  to  improve 
primary 
for 
provision, 
vulnerable  people,  and  expand  preventive 
healthcare  measures  and  to  strengthen  the 
resilience of the health system in the areas of 
critical  medical  products,  infrastructure,  and 
healthcare  workforce  by 
retaining  and 
attracting  skilled  workers,  while  ensuring  the 
fiscal  sustainability  of  the  healthcare  system. 
In 2024, Slovakia faced an estimated shortfall 
of  around  21%  of  the  public  primary  care 
workforce.  Although  base  salaries  for  certain 
healthcare  professionals  were  increased  in 
2025,  shortages  persist,  driven  by  an  ageing 
workforce,  limited  interest  in  primary  care 
careers,  and  ongoing  emigration.  Preventive 
care  also  remains  underdeveloped.  In  2023, 
only  2.7%  of  total  health  expenditure  was 
allocated  to  prevention,  compared  with  an  EU 
average  of  3.7%.  As  a  result,  avoidable 
mortality  remains  high,  with  both  treatable 
and  preventable  mortality  among  the  highest 
in the EU. While measures such as support for 
nearly 150 outpatient practices under the RRP 
and 
the  expansion  of  cancer  screening 
programmes aim to strengthen prevention and 
ease  pressure  on  hospitals,  they  have  yet  to 
significantly improve preventive care or ensure 
equitable  access,  particularly  for  vulnerable 
groups, 
including  Roma  communities.  The 
density  of  healthcare  professionals  has  been 
below  the  EU  average  for  several  years,  as 
hospitals  struggle  to  retain  staff  due  to 
working  conditions.  In  addition,  the  uptake  of 
e-health  solutions  remains  uneven,  varying 
significantly across education levels. 

insufficient  to  lift  households  out  of  poverty. 
Taken  together,  these  factors  increase  the 
pressure  on  vulnerable  households,  especially 
in 
regions.  Limited  social 
protection  highlights  the  need  to  strengthen 
collective  bargaining  and 
income 
security. 

the  eastern 

improve 

to 

face 

Housing  exclusion  and  homelessness 
remain  among  the  main  unaddressed 
social  challenges,  particularly  affecting 
Roma.  Homelessness  in  Slovakia  has  risen 
markedly  over  the  past  decade,  while  the 
housing  allowance  system  has  failed  to 
adequately  cover  housing  costs,  even  for  the 
poorest households. In addition, social housing 
investment  is  declining.  The  Roma  community 
continues 
large-scale  housing 
exclusion.  86%  of  Roma  live  in  overcrowded 
conditions,  often  in  segregated  settlements 
lacking basic infrastructure, such as access to 
running  water 
Promising 
approaches 
to  addressing  Roma  housing 
exclusion,  such  as  self-help  construction 
programmes,  as  well  as  housing-led  and 
housing-first approaches to homelessness, are 
being  developed  across  the  country,  but 
remain  limited  in  scale.  Around  half  of  the 
136 000  Ukrainian 
in 
Slovakia  still  identify  accommodation  as  a 
priority need (Annex 16). 

refugees  currently 

(Annex  16). 

Transport  poverty  limits  labour  mobility 
in  Slovakia.  Transport  poverty  occurs  when 
households  lack  affordable  transport  options 
like  work, 
to  access  essential  services, 
education  and  medical  care.  According  to  a 
recent  study,  every  third  person  in  Slovakia 
reports  experiencing  one  or  more  aspects  of 
particularly 
transport 
problematic in rural areas, where over 12% of 
the population cannot afford a car (Annex 12) 
(11). To address this issue, priority actions could 
include  supporting  active  mobility  such  as 
cycling,  introducing  school  and  work  buses, 
and improving public transport connectivity for 
poverty. 
people  affected  by 
Meanwhile  for  people  heavily  affected  by 

transport 

poverty. 

This 

is 

(11)  Institut 2050, Slovak Transport Poverty, 

https://institut2050.cz/wp-
content/uploads/2026/01/skdopravnachudoba2025_1.p
df page 10. 

24 

 
 
rise  by  0.5  pps  of  GDP  by  2040  and  by  a 
further  0.8  pps  by  2070,  i.e.  almost  doubling 
(Annex  2).  Workforce  shortages,  low  wages 
and  regional  disparities  further  constrain 
service provision, especially in rural areas and 
in  eastern  regions.  Initial  reforms  have  been 
introduced, including a reform of the financing 
of  social  services  under  the  RRP,  aimed  at 
making  the  system  more  person-centred. 
Additional  measures  are  being  supported 
through 
investments  under  the  RRP  and 
cohesion  policy  programmes  aimed  at 
infrastructure  and  the 
strengthening  care 
transition 
to 
institutional 
community-based  care.  However,  the  impact 
of  these  measures  remains  limited  at  this 
expanding 
progress 
stage. 
community-based  services,  strengthening  the 
care  workforce  and 
improving  access  to 
services across regions is needed.  

Further 

from 

care 

in 

face 

in  2025) 

The  fiscal  sustainability  of  the  Slovak 
healthcare  system  also  remains  under 
pressure.  Due  to  population  ageing,  Slovakia 
faces  fiscal  sustainability  challenges  in  the 
long  run.  Public  healthcare 
medium  and 
expenditure 
is 
(6.2%  of  GPD 
projected to rise by 0.7 percentage points (pps) 
of  GDP  by  2040  and  by  a  further  0.4  pps  by 
2070,  which  means  that  further  efforts  are 
needed  to  improve  cost-effectiveness  (Annex 
2). Health expenditure per capita is among the 
lowest  in  the  EU,  while  rising  costs  for 
pharmaceuticals and healthcare staff continue 
to  strain  public  finances.  Persistent  hospital 
debt  and  long  payment  delays  to  suppliers 
illustrate  these  pressures.  At  the  same  time, 
relatively  high  direct 
households 
healthcare costs, with out-of-pocket payments 
accounting  for  around  20%  of  total  health 
expenditure  in  Slovakia,  compared  with  an  EU 
average  of  16% 
(Annex  15).  Structural 
inefficiencies  persist,  particularly  concerning 
inefficient  use  of  hospital  resources  and 
insufficient  development  of  community-based 
care.  The  government  has  increased  financial 
through  additional 
support 
allocations 
the  state  budget  and 
introduced,  under  the  RRP,  measures  such  as 
hospital  optimisation  reforms  and  centralised 
management. However, these steps remain at 
implementation,  and 
an  early  stage  of 
improved 
financial  governance, 
stronger 
resource  allocation  and  further  reinforcement 
of  primary  and  preventive  care  will  be 
necessary 
long-term 
ensure 
sustainability of the health system. 

to  hospitals 

from 

the 

to 

Slovakia's  fragmented 
long-term  care 
system struggles to meet the needs of its 
ageing  population.  Slovakia  received  a  CSR 
in 2025 to ensure affordable and quality long-
term  care.  Some  progress  has  been  achieved 
in  this  area.  Self-reported  unmet  needs  for 
long-term care are higher compared to the EU 
average, with 37% of the population reporting 
unmet needs versus an EU average of 26.6%. 
Furthermore,  the  system  is  underfunded,  with 
expenditure  at  around  1%  of  GDP,  compared 
with  the  EU's  1.7%,  and  poorly  coordinated, 
resulting in high levels  of unmet needs and a 
heavy reliance on informal family care (Annex 
12).  Due 
to  population  ageing,  public 
expenditure for long-term care is projected to 

25 

 
KEY FINDINGS 

Slovakia  would  benefit  from  taking  action  in 
the  following  areas  covered  by  existing 
country-specific recommendations: 

•  ensuring 

a 

growth-friendly 

and 
sustainable  fiscal  strategy  by  making 
the  tax  system  fairer,  simpler  and  more 
growth-friendly  through  introducing  value-
taxation,  strengthening 
based  property 
environmental  taxation,  reducing  the  tax 
burden  on  businesses  and  labour,  and 
reducing  tax  complexity  in  VAT  and  CIT 
rates;  improving  the  efficiency  of  public 
spending,  including  by  better  integrating 
spending 
the  budgetary 
process, reducing social and energy support 
measures, and continuing to strengthen tax 
compliance; 

reviews 

into 

• 

the 

housing 

and 
supply 
increasing 
rental  market  by 
expanding 
streamlining  building  permit  procedures, 
reducing 
burdens, 
administrative 
strengthening social housing and improving 
housing  support  for  vulnerable  groups, 
including the Roma population; 

under 

•  putting  in  place  safeguards  for  the 
independence and effectiveness of the 
justice system and law enforcement, in 
particular 
anti-corruption 
framework, by increasing capacity, levels of 
specialisation of, and effective coordination 
between  competent  authorities  in  order  to 
detect, investigate and prosecute high-level 
undue 
corruption; 
interference; 

preventing 

and 

the 

• 

improving the business environment by 
ensuring  legislative  stability  and  reducing 
the use of fast-track legislative procedures; 
increasing  transparency  and  the  use  of 
impact  assessments  and 
stakeholder 
consultations  through  a  more  effective 
better 
framework;  boosting 
transparency  and  competition  in  public 

regulation 

26 

procurement;  and  reducing  regulatory  and 
cross-border single market barriers;  

•  strengthening  governance  at  the  local 
level  by  revising  the  local  governance 
structure and the funding of municipalities, 
and  ensuring  their  capacity  to  provide 
quality public services; 

investment 
impact 

•  boosting  innovation  by  increasing  public 
R&D 
and 
and 
private 
through 
its 
strengthening 
innovation 
research  and 
streamlined 
improving  business-science 
governance; 
collaboration;  and 
financial 
support and revising the R&D tax incentives 
for  small  to  medium-sized  enterprises 
(SMEs);  

improving 

•  supporting  digitalisation  by  addressing 
increasing  the 
digital  skills  gaps  and 
number  of 
improving 
interoperability  between  digital  public 
services;  and  fostering  digitalisation  of 
SMEs and digital connectivity; 

ICT  specialists; 

•  fostering 

the 

legislative 

renewables  and 
clean  and 

industrial  competitiveness 
and economic  security, making further 
progress  in  decarbonising,  innovating 
and  diversifying  the  economy  by 
strengthening 
and 
investment  framework  to  accelerate  the 
deployment  of 
the 
renewable 
production  of 
technologies; 
electrification, 
fostering 
including through measures to improve the 
electricity-to-gas price  ratio;  enhancing  the 
infrastructure; 
internal  electricity  grid 
supporting 
the 
heating  and  transport  sectors,  including  by 
supporting 
zero-
emission 
relevant 
infrastructure;  and  modernising  the  rail 
network  by  reforming  the  national  railway 
management  and  creating  a  dedicated 

the  deployment  of 
vehicles 

the  decarbonisation  of 

and 

 
 
investment 
long-term 
transport infrastructure; 

framework 

for 

• 

increasing climate and water resilience 
by  improving  the  governance  of  climate 
adaptation  policies  and  sustainable  water 
management, and prioritising nature-based 
solutions and river restoration; 

in  the 

participation 
groups, 

•  addressing skills and labour shortages 
and social disparities between regions by 
strengthening 
of 
particularly 
underrepresented 
marginalised  Roma  and  women  with 
childcare  responsibilities, 
labour 
market,  including  through  more  effective 
active labour market policies; attracting and 
including 
retaining  skilled  professionals, 
non-EU  nationals;  ensuring  access 
to 
affordable  high-quality  early  childhood 
education  and  care  and  expanding  flexible 
working  arrangements;  addressing  poverty 
rates, 
enhancing 
collective  bargaining  and  adjusting  the 
adequacy of minimum income; and tackling 
transport poverty; 

including 

through 

•  promoting  human  capital  development 
by  strengthening  basic  skills  and  inclusive 
education,  particularly  for  disadvantaged 
pupils;  reskilling  and  upskilling  people  in 
labour  market  needs;  and 
line  with 
increasing enrolment in science, technology, 
engineering and mathematics education; 

the 

ensuring 

•  addressing  medical  staff  shortages 
and 
financial 
sustainability  of  healthcare  and  long-
term  care  by  improving  the  recruitment 
and 
retention  of  health  professionals; 
expanding  community-based  services;  and 
optimising 
and 
improving cost-effectiveness.  

allocation 

resource 

In other areas, Slovakia would benefit from: 

• 

to 

finance  by 
improving  access 
supporting  the  development  of  capital 
markets;  encouraging  household  investing 
in financial markets; and expanding venture 
capital  and  private  equity  to  support 
innovative firms, SMEs and start-ups; 

27 

 
 
ANNEXES 

 
 
 
 
LIST OF ANNEXES 

A1.  CSR implementation 

Fiscal 

A2.  Fiscal developments and debt sustainability 

A3.  Taxation 

Productivity 

A4. 

Innovation to business 

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. 
A5.1. 

2025 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 
Single Market and Industry 

31 

34 

41 

41 

46 

50 

50 

68 

75 

82 

82 

89 

96 

103 

103 

109 

114 

120 

121 

126 

131 

131 

134 

141 

34 
43 
43 
45 
47 
56 
67 

 
 
 
Savings and Investments Union summary diagnostic 
Financial sector indicators 
Slovakia. Selected indicators on better regulation practices for primary legislation 
Digital Decade targets: availability of digital public services 
Key clean industry and climate mitigation indicators: Slovakia 

A6.1. 
A6.2. 
A7.1. 
A7.2. 
A8.1. 
A10.1.  Key Adaptation Indicators 
A14.1.  Social Scoreboard for Slovakia 
A15.1.  Key health indicators 
A18.1.  Key regional indicators (at NUTS2 level) for Slovakia 
A18.2.  Main development trends, challenges and the concentration of resources 
A18.3.  Wind and solar photovoltaic energy production and potential in Slovakia, by degree of urbanisation, 2023 
A19.1.  ERTMS deployment in Slovakia. 

LIST OF GRAPHS 

A2.1. 
A2.2. 
A2.3. 
A2.4. 
A3.1. 
A3.2. 
A4.1. 

Contributions to the change in general government balance (% of GDP) 
Public investment evolution and composition (% of GDP) 
Primary spending evolution and composition 
Investment composition (% of GDP) 
Tax revenue by economic function in 2024, SK (outer ring) and EU (inner ring) 
Tax wedge for single and second earners as a % of total labour costs, 2025 
Scientific publications of the country within the top 10% most-cited scientific publications worldwide as % of the country’s 
total scientific publications 
Business expenditure on R&D as a percentage of GDP in the Visegrad countries 
Composition of non-financial corporations’ funding 
Capital markets and financial intermediaries 
Composition of households’ financial assets 
Trust in the justice system, regional / local authorities and in government 

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 
Slovakia’s installed renewable capacity vs electricity generation mix 

A4.2. 
A6.1. 
A6.2. 
A6.3. 
A7.1. 
A7.2.  Most time-consuming aspects 
A8.1. 
A9.1. 
A9.2. 
A9.3. 
A11.1.  Employment rate by region and sex in 2025 
A12.1.  At-risk-of-poverty or social exclusion rate and its components (% of total population) 
A12.2.  Severe Material and Social Deprivation by NUTS3 region, EU_SILC 2023 
A13.1.  Tertiary education attainment (levels 5-8, age 25-34) 
A15.1.  Treatable mortality 
A15.2.  Healthcare infrastructure investment by year 
A16.1.  House prices, rents and price-to-income evolution in SK and EU27 since 2005 
A16.2.  Borrowing costs and housing loans, in SK and EA since 2018 
A16.3.  House supply indicators in SK since 2005 
A16.4.  Housing affordability selected indicators 
A17.1.  Progress towards the SDGs in Slovakia 
A18.1.  GDP per head (PPS) in % of the EU-27 average 
A18.2.  Share of employment in different sectors (2023), Slovakia, NUTS 2 regions 
A19.1.  Slovakia's road fatalities per million, 2024 

LIST OF MAPS 

A18.1.  GDP per head compared with the EU average 
A18.2.  Population growth (average ‰ change per year), Slovakia, NUTS3 regions, 2015-2024 
A18.3.  Rent capacity relative to income, 2024 
A19.1.  TEN-T 
A19.2.  Slovakia's road safety map 

32 

68 
74 
76 
77 
87 
101 
120 
123 
135 
136 
138 
141 

41 
42 
42 
44 
46 
48 

51 
52 
68 
69 
70 
75 
77 
83 
88 
89 
91 
104 
109 
111 
117 
121 
122 
126 
126 
126 
129 
130 
133 
134 
142 

133 
135 
137 
141 
142 

 
 
 
 
33 

 
 
 
ANNEX 1: CSR IMPLEMENTATION  

Table A1.1:  2025 CSR implementation and Commission assessment 

(Continued on the next page) 

34 

Slovakia faces challenges in a wide range of policy areas, as identified in the country-specific recommendations (CSRs). Slovakia was recommended, among other things, to improve the business environment and governance by strengthening regulatory quality, public procurement, judicial effectiveness, and anti-corruption measures; boost digital infrastructure, innovation, and SME digitalisation; accelerate the green transition through clean energy, renewables, and sustainable transport and resource management; and address labour market, education, and healthcare challenges by increasing participation, improving skills and inclusion, and strengthening health and long-term care systems.  The Commission has assessed the degree of implementation of the 2025 CSRs considering the policy action taken by Slovakia to date*. To do so, the Commission has taken into account the information provided by Slovakia in its Annual Progress Report as well as other information sources. This annex provides summary information on the policy actions taken or planned by Slovakia 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 2.0% of GDP, corresponding to an increase of 0.6 ppt. compared to 2024.      Total general government defence expenditure in 2027 is projected at 2.3% of GDP, corresponding to an increase of 0.9 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, with a view to bringing an end to the situation of an excessive deficit while making use of the allowance under the national escape clause for higher defence expenditure. Cumulated deviation in 2025 amounted to  -1.9% of GDP. Cumulated deviation in 2026 projected to -1.0% of GDP. The EDP is held in abeyance   Full implementation          1.3 Make the tax mix more efficient, including by reducing disincentives in the labour market, and making stronger use of taxes less detrimental to growth such as environmental and recurrent property taxation.  Two consolidation packages introduced, which increased the tax burden on households and businesses  Slovakia introduced a new levy on raw materials in construction as well as a car registration tax reflecting vehicle emission, preferential road tax for EV and higher rates for older cars.  Limited progress 1.4 Improve spending efficiency by, for example, implementing spending reviews.    No 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  1.5 Continue to strengthen tax compliance, including by further digitalising the tax administration.  The introduction of new tax brackets for PIT and reduced tax rates on VAT and CIT has increased the complexity of the taxation system.  Limited progress 1.6 Wind down the emergency energy support measures in force and ensure that these are targeted at protecting vulnerable households and firms, and are fiscally affordable, and preserve incentives for energy savings.  Energy measures amounting to 0.3% of GDP have been extended from 2026 without a specific time limit. These costly measures lack precise targeting since they are intended for 90% of households, thus reducing the focus on the most vulnerable and further distorting incentives for energy savings.  Limited progress 1.7 Support housing supply and expand the rental market by accelerating residential construction  Despite the Adoption of the new Building Act, policy implementation is still at an eraly stage.  Slovakia rolled out the National Concept for Preventing and Ending Homelessness 2023-2030. Under recent legislation, municipalities are required to adopt spatial plans by 2032. No progress 1.8 and by promoting social housing, taking into account regional disparities.  Slovakia tightened refugee accommodation support, reducing the allowance from 120 to 60 days for new arrivals.  Limited progress 3.1 Ensure a favourable business environment   The authorities are preparing a reform of the Regulatory Impact Assessment and an IT platform to make the assessments less burdensome for lawmakers.  Limited progress 3.2 by creating a more predictable regulatory environment   No progress 3.3 through improving the better regulation framework,   No progress 3.4 ensuring that impact assessment and stakeholder consultations are integrated into the legislative process.   No progress 3.5 Address the fragmentation of governance structures, including by preparing a reform of the local governance The Ministry of Interior is conducting preparatory analysis for a proposal to merge municipalities with delegated state administration, but there is no concrete timeline for the reform of local governance  Limited progress 3.6 Ensure quality public services through better coordination and policymaking. Some progress has been achieved through the creation of a Strategic and Coordination Centre and the development of a long-term vision and development strategy until 2040  Some progress 3.7 Ensure transparency and No new measures adopted. The  No 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  competition in public procurement processes to promote good governance and improve the effectiveness of public spending,  3.8 and increase the use of quality-related and life cycle cost criteria in public procurement operations. effects of the 2024 reform become more visible, confirming the analysis that simplification went at the expense of transparency and competition. 3.9 Strengthen the judicial system and enhance the effectiveness of the anti-corruption system, Several dismissals of members of the Judicial Council have demonstrated the lack of adequate safeguards preventing political interference.  The specialised police investigating high-level corruption (NAKA) was abolished/reorganised into a new entity (ÚBOK). It has become clear that they don’t have sufficient capacity and expertise to detect and investigate corruption.  No progress 3.10 including by ensuring adequate, autonomous and effective investigations and prosecutions of high-level corruption cases Slovakia adopted legislation in late 2025 to abolish the Whistleblower Protection Office and replace it with a new body. The law was subsequently suspended by the constitutional court and did not enter into force. In early 2026, the government repealed the legislation due to concerns regarding compatibility with EU-instruments.  These developments nonetheless highlight vulnerability in the stability and independence of the whistleblower protection framework and risk permanent chilling effects on whistleblowers, with implications for the effective detection, investigation and prosecution of corruption.  No progress 3.11 and sufficient, specialised capacity at police and prosecution level.    No progress 4.1 Bolster digital infrastructure by closing the investment gap for gigabit connectivity  Slovakia has continued to improve its connectivity infrastructure, even though the performance still remains below the EU average (especially in underserved areas).  EUR 88 million planned for connectivity in underserved areas was reallocated to other priorities,  Some progress  
 
 
     
 
Table (continued) 

(Continued on the next page) 

37 

Recommendation text Main measures adopted or implemented  By 30 April 2026  Preparatory steps/ credibly announced measures By 30 April 2026 Assessm. of progress  without any concrete plans to finance it from other sources. 4.2 and streamlining regulation for infrastructure roll-out.  New construction law took effect in April 2025, aiming to streamline construction procedures. It had positive effects, though some issues remain, notably linked to access to passive infrastructure.  Some progress 4.3 Increase the adoption of digital technologies, particularly among SMEs, by removing bottlenecks in their roll-out.  Slovakia still lags behind the EU average in some areas related to the digitalisation of businesses, though progress has been made. There are programmes supporting digital uptake by businesses (DIGITRANS and Digital innovation hubs) but the overall impact is limited as they target only a limited number of companies.  Some progress 4.4 Improve research and innovation policy by incentivising collaboration between business and the research sector  Direct support to 10 Technology Transfer Offices. The matching for university-business cooperation was strengthened in the institutional funding of universities from 15 mil. EUR in 2025 to 22 mil. EUR annually (from 6 % to 8 % of total institutional R&D funding) IP rights at universities to shift to researchers (against international best practice)  Limited progress 4.5 and by revising the R&D tax incentive scheme to provide greater support to SMEs.  No political will to push for R&D tax incentives. The draft law prepared at technical level was blocked.  No progress  5.1 Prioritise investments in clean and efficient production and in the use of energy and resources.  No major new initiatives. Slovakia continues its efforts mostly in the area of RRP/ESIF investments (often with rather limited progress), while the absorption of the EU’s Modernisation Fund appears to lag behind.   Limited progress 5.2 Strengthen the legislative framework to support green technologies and products, Slovakia adopted several legislative changes, contributing to improvements in the RES permitting processes. No significant legislative efforts to support green products, though Slovakia focuses its EU-funded programmes like Green for Enterprises aid firms, especially SMEs, in cutting energy costs, adopting clean technologies.   Limited progress 5.3 and promote investments to advance industrial competitiveness and economic diversification. No new significant measures. Slovakia continued its efforts under the RRP and MoF to decarbonise its industry, with schemes on targeting industry as well as the heating sector. The Slovak industry faces  No progress  
 
 
     
 
Table (continued) 

(Continued on the next page) 

38 

Recommendation text Main measures adopted or implemented  By 30 April 2026  Preparatory steps/ credibly announced measures By 30 April 2026 Assessm. of progress  relatively high energy prices, also due to bottlenecks limiting the take-up of RES (including wind). 5.4 Accelerate the diversification of fossil fuel supply to phase out dependence on Russian sources.   Slovakia has been in negotiation with other EU Member States on the diversification of fossil fuels supply away from Russia. The state-owned utility (SPP a.s). has concluded several diversification contracts for gas deliveries. In crude oil, there are negotiations with Hungary and Croatia, on the technical feasibility of operation of the Adria pipeline in full capacity  and on transmission tariffs. There are negotiations with Czechia about the feasibility of oil reverse flows to Slovakia.   Limited progress 5.5 Accelerate the roll-out of renewables, while making the procedures for connecting renewables to the grid more efficient and less burdensome.  Slovakia adopted several legislative changes (under the RRP), contributing to improvements in the RES permitting processes (Energy and IPPC Acts), including the legislative framework for acceleration areas. The legislative framework for improving the connection procedures to the grid were also implemented through the secondary legislation (under energy regulator – URSO). The impact of the legislative changes, however, remains to be seen, as the growth in RES large installations remains limited. The new projects on wind energy have stalled.   The preparation of acceleration areas for wind energy –  in locations where the development of wind energy projects will be expedited –  has progressed in Slovakia, with the key legislative changes adopted in late 2025. However, by early May 2026, the key elements of go-to areas designations still have not been finalised.  Some progress 5.6 Support further investments in grids, in particular electricity networks,  The roll-out of investments into distribution grids was helped by increased funding under the RRP in recent years. The Slovak transmission system operator SEPS  has several EU projects of common interest (PCI) to strengthen cross-border interconnections, while implementing also an interconnector with Ukraine.  Some progress 5.7 as well as in decarbonisation of the heating sector. No new major initiatives detected in this area, though EU funding initiatives continue in its roll-out.  Limited progress 5.8 Support further roll-out of zero-emission mobility  No new major developments in this area.  Limited progress 5.9 and modernisation of the rail network, by reforming  Ongoing discussions between Ministry of Finance, Ministry of Limited progress  
 
 
     
 
Table (continued) 

(Continued on the next page) 

39 

Recommendation text Main measures adopted or implemented  By 30 April 2026  Preparatory steps/ credibly announced measures By 30 April 2026 Assessm. of progress  the national railway infrastructure governance and creating a dedicated investment framework.  Transport, and stakeholders on a law guaranteeing a percentage of annual budget towards transport network reconstruction, upgrade, and maintenance. 5.10 Strengthen resource waste management and reuse of municipal and packaging waste,    No progress  5.11 the conservation of natural resources, and increase water resilience by mainstreaming nature-based solutions and finalising the zonation of nature-protected areas. New call introduced under LIFE fund to mainstream nature-based solutions to increase water resilience.   Limited progress 6.1 Strengthen the labour market participation of underrepresented groups, Several national projects (NPs) in the field of social economy under Priority 4P1 (ESO4.1) contribute to increasing the participation of underrepresented groups in the labour market, yet the long-term unemployment of marginalised groups and in Eastern Slovakia remains a challenge.   Limited progress  6.2 and introduce more flexible work arrangements for parents with children.   No progress  6.3 Increase the availability and use of affordable high-quality early childhood education and care for children under the age of 3. The government adopted an Action Plan with 19 measures focusing on early care development.  From 2026, an amendment to the Social Services Act will ensure a coherent framework for early age education and service delivery.  Some progress 6.4 Strengthen the teaching of basic skills,  Slovakia will gradually introduce a new curriculum in all primary schools from September 2026, while the results on improving basic skills remain to be seen. Some progress 6.5 including for children from disadvantaged backgrounds notably in marginalised Roma communities, while ensuring equal and inclusive access to quality education at all levels. Mandatory education for children with migrant background has been put in place;   National projects, including on the introduction of adaptation classes;    Some progress 6.6 Step up policy efforts aimed at the provision and acquisition of skills and competences, by providing reskilling and upskilling opportunities for adults, New competences given to an Alliance to evaluate educational programmes designed for labour market.  National projects Digital Skills and Individual Learning Accounts have New Higher Education Act will introduce short cycle programmes focused on acquiring practical knowledge.  Some progress  
 
 
     
 
Table (continued) 

Source: Slovakia's reporting and Commission assessment 

40 

Recommendation text Main measures adopted or implemented  By 30 April 2026  Preparatory steps/ credibly announced measures By 30 April 2026 Assessm. of progress  expanded offer for vocational training.   6.7 investing in teacher training, and increasing enrolment in STEM education programmes. Ministry of Education launched a scheme to fund qualification training for teachers.  Communication campaign targeting GenZ to motivate them to choose teacher education, including STEM.  Slovakia introduced a compulsory maturita examination in math from 2027 to increase pool of candidates capable in enrolling in STEM studies.  Some progress 6.8 Improve primary care provision, especially for vulnerable people, and expand preventive healthcare measures. Slovakia’s progress in primary and secondary care shows limited progress. Under the RRP and the Strategy for General Outpatient Care to 2030, 148 new outpatient practices have been opened in underserved areas.  Nationwide population-based screening programmes for breast, cervical and colorectal cancer; the Swiss-Slovak Health Programme, launched in April 2025, aims to further strengthen prevention of non-communicable diseases and promote health nationwide.  Limited progress 6.9 Strengthen the resilience of the health system in the areas of critical medical products, infrastructure, and healthcare workforce by retaining and attracting skilled workers, while ensuring the fiscal sustainability of the healthcare system. No specific measures have been introduced in the area of critical medical products. Financial incentives to retain doctors show some positive results; The 2026 budget includes a substantial increase in healthcare funding.  Limited progress 6.10 Ensure affordable and quality long-term care. Reform of the financing of social services goes in the right direction. Ongoing Vision and Strategy for the Development of Social policies by 2040.  Some progress   
 
   
 
FISCAL 
ANNEX 2: FISCAL DEVELOPMENTS AND DEBT SUSTAINABILITY 

fiscal-structural 

(CSRs)  addressed 

This  annex  discusses  selected  topics 
in 
Slovakia’s public finances  and  developments 
in 
country-specific 
to 
recommendations 
Slovakia in July 2025. These CSRs include a call 
to increase defence spending and readiness while 
implementing  a  fiscal  strategy  in  line  with  the 
Council  Recommendation  of  21 January 2025. 
Slovakia  also  received  a  recommendation  to 
implementing 
improve  spending  efficiency  by 
the 
reviews  and 
spending 
emergency energy support measures.  

to  wind  down 

[ 

Union 

adopted 

endorsing 

On  21 January 2025,  the  Council  of  the 
the 
European 
Recommendation 
Slovakia’s 
medium-term  fiscal-structural  plan.  The  plan 
includes  a  fiscal  adjustment  over  4  years.  At  the 
the  Council  also  adopted  a 
same 
Recommendation  under  Article  126(7)  TFEU  to 
correct  the  excessive  deficit  in  Slovakia  (12).  On 
the 
8 July 2025, 
National  Escape  Clause  for  Slovakia  in  order  to 
facilitate the transition to higher levels of defence 
spending (13)(14). 

the  Council  also  activated 

time 

Developments in the government 
balance, debt and public expenditure 
(15) 

Slovakia’s  government  deficit  amounted  to 
5.3%  of  GDP  and  the  government  debt-to-
GDP  ratio  amounted  to  59.7%  at  the  end  of 
2024.  Based  on  the  Commission  Spring  2026 
Forecast,  Slovakia’s  government  deficit 
is 
projected  to  increase  slightly  to  4.6%  of  GDP  in 
2026  before  increasing  again  to  5.4%  of  GDP  in 
2027. The forecast increase in the deficit is largely 
driven  by  Slovakia’s  rising  general  government 
expenditure, which reached 48.4% of GDP in 2023, 
around  5.3  pp.  higher  than  in  previous  years. 
Expenditure is expected to  stay high until the end 
of  the  forecast  period,  reaching  47.4%  of  GDP  in 
2027  (see  Graph  A2.1).  Fiscal  consolidations  for 
2025  and  2026  were  primarily  focused  on 
revenue  increases,  while  a  new  consolidation 
package for 2027 has not been announced yet. 

Graph A2.1: Contributions to the change in general 
government balance (% of GDP) 

(12)  Council Recommendation with a view to bringing an end to 
the situation of an excessive deficit in Slovakia, adopted on 
21 January 2026. The corrective net expenditure path 
recommended by the Council under the excessive deficit 
procedure is consistent with the maximum growth rates of 
net expenditure set out in the plan. 

(13)  Council Recommendation of 8 July 2025 allowing Slovakia 

to deviate from the maximum growth rates of net 
expenditure as set by the Council under Regulation (EU) 
2024/1263 (Activation of the national escape clause) (OJ C, 
C/2025/3974, ELI: https://eur-
lex.europa.eu/eli/C/2025/3974/oj)  

(14)  Compliance by Slovakia with the maximum growth rates of 
net expenditure recommended by the Council is assessed in 
COM(2026)200. 

Source: European Commission Spring Forecast 

EU  funds  drive  public 
investment,  but 
absorption  lags  behind  regional  peers.  Public 
investments  have  been  significantly  supported  by 
EU-funded  initiatives,  including  from  the  RRRF. 
However,  uptake  of  EU  funds  remains  sluggish, 

(15)  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. 

41 

-7-5-3-11352021202220232024202520262027RevenueExpenditureChange in budget balance% of GDP 
 
 
 
  
 
 
 
notably when compared with regional counterparts 
(see Graph A2.2). Domestically funded investments 
are  supported  by  defence  spending,  while 
investment 
the 
potential to boost competitiveness could be better 
utilised. 

in  productive  projects  with 

Graph A2.2: Public investment evolution and 
composition (% of GDP) 

contrast,  spending  on  R&D  has  remained  broadly 
stable while spending on transport,  and education 
has  declined.  This  trend  deserves  attention,  as 
are 
these 
generally 
categories 
spending 
considered  growth-friendly. 
the  case  of 
education,  the  decline  is  particularly  concerning 
given  the  drop  in  performance  (see  Annex  13  for 
further details). 

In 

Graph A2.3: Primary spending evolution and 
composition 

Source: European Commission Spring Forecast 

The  type  of  expenditure  that  has  a  greater 
impact  on  GDP  remained  broadly  stable  for 
nearly two decades; however, it has  been on 
an upward trend since 2017, with the pace of 
growth  accelerating  after  2019  (see  Graph 
A2.3a).  This  may  be  related  to  the  impact  of  the 
RRF,  which  possibly  facilitated  a  more  quality-
based fiscal strategy. Focusing on the composition 
of  spending,  social  protection  accounts  for  the 
largest share of total expenditure (39%), followed 
by  health,  economic  affairs,  (16)  general  public 
services  and  education,  each  of  which  constitutes 
at least 10% of total spending. Since 2019, public 
expenditure  on  social  protection  has  increased 
strongly  (see  Graph  A2.3b).  Spending  on  other 
economic  affairs,  health  and  defence  has  risen 
more  modestly,  with the  rise  in  defence  spending 
recent  security  developments.  By 
reflecting 

(16)  This refers to the set of government activities, policies, and 

expenditures aimed at regulating, supporting, and developing 
economic activity across major sectors, including general 
economic and labour policies, agriculture and natural 
resources, energy, industry, construction, and other economic 
functions not elsewhere classified. Although transport and 
communication, as well as research and development 
activities, are normally considered part of this function, they 
are treated separately in the graph presented. 

Source: Based on the Classification of the Functions of 
Government (COFOG data).  
Note: 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).  

Slovakia has relatively low tax revenues as a 
share of  GDP but  places  a  heavy  tax  burden 
on  low  earnings.  In  2024,  Slovakia’s  total  tax 
revenues  as  a  percentage  of  GDP  (including 
compulsory  social  contributions)  amounted  to 
35.9%,  compared  with  the  EU  average  of  39.4%. 
Total  tax  revenues  are  projected  to  increase  to 
36.6% of GDP in 2025 and 36.5 % of GDP in 2026 
according to the Spring 2026 Forecast (17). The tax 
mix  in  Slovakia  relies  heavily  on  labour  and 
consumption  taxation.  The  labour  tax  burden  on 
low  earnings  is  high  compared  with  the  EU 

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

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

42 

-2-10123456201920202021202220232024202520262027% of GDPDefenceRRF grants and other EU fundsOther nationally-financed051015203035404550201020112012201320142015201620172018201920202021202220232024Primary expenditureSpending with higher impact on GDP (rhs)-2.0-1.00.01.02.03.04.0PublicorderEducationGeneralservicesTransportCultureEnvironmentHousingInterestspendingCommunicationR&DDefenceHealthOther economicSocialprotection 
   
 
  
 
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. 

average,  while 
considered 

recurrent  property 

less  detrimental 

to  growth, 

taxation, 
is 

The costs of ageing 

Total  ageing-related  spending  in  Slovakia  is 
projected  to  rise  by  2.5 pps  of  GDP  between 
now and 2040, to around 23% of GDP, with a 
further  2 pps  increase  between  2040  and 
2070  (see  Table  A1.12).  The  overall increase is 
the 
in  pension 
expenditure,  healthcare  and  long-term  care.  Total 
spending  on  ageing-related  items  would  remain 
below the EU average. 

result  of  a  projected 

rise 

Public pension spending as a share of GDP is 
projected to increase by about 1 pp. over the 
next  decades  and  by  just  under  2 pps  by 
2070.  By  2070,  public  pension  outlays  would 
represent around 11.5% of GDP, compared with an 
EU average of about 12%.  

Supplementary  pension  schemes  can  make 
the  pension  system  more  resilient  by 
diversifying  retirement  income  sources.  In 
Slovakia,  however, 
these 
supplementary  schemes  remains  limited:  at  the 
end of 2024, private pension assets amounted to 

the  uptake 

of 

underused (see Annex 3).  

around  16%  of  GDP  while  participation 
in 
supplementary schemes covered only around 55% 
of  the  working-age  population,  as  a  result  of  the 
quasi-mandatory,  fully-funded,  Pillar  II  and  other 
III)(18).  This 
voluntary  pension 
funds 
(Pillar 
rising  medium-term 
(i) 
coincides  with  both: 
pressures  on  public  pension  spending;  and  (ii)  a 
projected  decrease  in  the  replacement  rate  by 
3.5 pps between 2025 and 2040 (Tables A2.2 and 
A2.3)  (19).  In  January  2023,  Slovakia  reformed 
Pillar II of its pension system.  New workers under 
40 were automatically enrolled in Pillar II, but they 
have  the  choice  to  opt  out  after  two  years.  In 
addition, 
introduced  a  default 
investment strategy based on a lifecycle approach. 
Unless 
otherwise, 
contributions  are  allocated  to  a  non-guaranteed 
index pension fund. From the age of 50, savings of 
all participants are gradually transferred from the 
non-guaranteed  pension  fund  to  the  guaranteed 
bond  pension  fund  according  to  a  statutory 

actively 

choose 

reform 

savers 

the 

(18)  Source: OECD Pension Market in Focus 2025. The highest 

participation rate in at least one supplementary pension plan 
is reported.  

(19)  The (gross) replacement rate refers, depending on data 

availability, to both public and private pensions. It is based 
on projections from the 2024 Ageing Report. 

43 

SK20.71.20.70.50.12.523.1SKEU24.30.50.30.4-0.30.925.2EUSK20.71.71.11.30.24.425.0SKEU24.30.20.60.8-0.31.325.6EUageing-related expenditure change in 2025-2070 (pps GDP) due to:ageing-related expenditure pensionshealthcarelong-term careeducationtotalageing-related expenditure change in 2025-2040 (pps GDP) due to:ageing-related expenditure pensionshealthcarelong-term careeducationtotalAssets in 2024 (% GDP)Participation in 2024 (% working-age population)SK16.2-3.555.3SKEU32.4-2.855.9EUGross replacement rate at retirement: (pps change 2025-2040)  
 
 
 
 
   
 
 
   
 
schedule,  so  as  to  reduce  investment  risk  as  the 
saver approaches retirement.  

Public healthcare expenditure is projected to 
be  6.2%  of  GDP  in  2025  (slightly  below  the 
EU  average  of  6.6%)  and  is  expected  to 
increase  by  0.7  pps  between  now  and  2040 
and  by  a  further  0.4  pps  between  2040  and 
to  an  ageing 
increases,  due 
2070.  These 
population,  pose  a  risk  to  fiscal  sustainability  in 
the  medium  and  long  term.  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  0.5  pps  of  GDP  between 
now  and  2040  and  by  a  further  0.8  pps  of  GDP 
between 2040 and 2070. 

National fiscal framework 

While  spending 
reviews  assess  public 
expenditure to optimise  efficiency  and  guide 
policy priorities, they are not directly tied to 
the budgetary process. Slovakia has one of the 
most  institutionally  advanced  spending  review 
frameworks,  though  a  gap  remains  between 
analytical  capacity  and  political  implementation. 
Spending  reviews,  led  by  the  independent  Value 
for  Money  Unit  at  the  Ministry  of  Finance,  aim  to 
improve public expenditure efficiency and prioritise 
resource  allocation.  This  operational  framework 
has reviewed over half of public spending since it 
was set up eight years ago, assessing sectors like 
healthcare,  transport,  education  (Annex  13),  and 
environmental policy, identifying inefficiencies and 
suggesting  reforms.  Although  national  legislation 
mandates 
reviews  be 
that  annual  spending 
presented  alongside  the  budget  document,  and 
findings  support  budget  planning  and  fiscal 
management,  there  is  no  link  to  the  budgetary 
process,  and  recommendations  are  not  fully 
implemented. 

Slovakia  plans  to  refine  public  investment 
management  to  make  it  more  efficient  and 
transparent. As part of the  RRP, the country will 
centralise 
public 
investments  in  Q2-2026  using  a  harmonised 
methodology overseen by the Ministry of Finance. 
investment  quality, 
This  aims 
prioritisation  and  budget  planning,  with  all 

evaluation 

significant 

improve 

of 

to 

evaluations  being  published  for  transparency 
purposes.  At  the  same  time,  no  medium-term 
capital  budget  plan  linking  investment  planning 
with the budget cycle, systematic  ex post reviews 
or asset registers are in place. 

stricter 

sanctions 

Slovakia's  fiscal  framework  is  governed  by 
the constitutional debt brake, which imposes 
as 
progressively 
predefined  debt  thresholds  are  exceeded. 
When  the  escape  clause  expired  in  late  2025, 
these  fiscal  rules  regained  full  effect.  Public  debt 
currently  resides  in  the  highest  sanction  band, 
formally  obliging  the  government  to  present  a 
balanced  or  surplus budget  for  2027.  Considering 
the  magnitude  of  the  current  fiscal  deficit, 
achieving  this  requirement  may  necessitate  a 
significant  and 
immediate  fiscal  adjustment, 
potentially  leading  to  an  abrupt  consolidation 
instead of a gradual fiscal correction. 

independent 

well-resourced 

The Council for Budget Responsibility (CBR) is 
a 
fiscal 
institution with a broad mandate and a fairly 
broad media presence. The three members have 
staggered (but non-renewable) mandates of seven 
years  and  are  subject to a  three-year  ’cooling-off 
period’  before  joining  a  government.  The  CBR  has 
recently  improved  its  access  to  information.  Its 
policy  dialogue  with  the  government  is  not  fully 
developed  and  interactions  with  parliament  are 
moderate.  

Graph A2.4: Investment composition (% of GDP) 

Source: Eurostat 

44 

3.63.716.917.50510152025% of GDPgovernmentnon-government10-y average 
     
 
 
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 the 
targets/ceilings included in the national medium-term fiscal plans; ii) connectedness between these targets/ceilings and the 
annual budgets; iii) involvement of the national parliament in the preparation of the plans; iv) involvement of independent fiscal 
institutions in their preparation; and v) their level of detail. A higher score is associated with higher rule and MTBF strength. 
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 

45 

2024SlovakiaEU AverageCountry Fiscal Rule Strength Index (C-FRSI)16.3114.81Medium-Term Budgetary Framework Index (MTBFI)0.780.722025 Public accounting maturity of general government70%65% 
 
   
 
ANNEX 3: TAXATION 

This  annex  provides  an 
indicator-based 
overview of Slovakia’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.  The  2025  country-
specific recommendations highlighted the need to 
make  the  tax  mix  more  efficient,  including  by 
reducing  disincentives  in  the  labour  market,  and 
less 
making  more  use  of 
detrimental  to  growth,  such  as  environment-
related  and 
taxes.  The 
recurrent  property 
recommendations  also  emphasised  the  need  to 
continue improving tax compliance, in particular by 
further digitalising the administration of taxes. 

that  are 

taxes 

labour  and 
Taxation  relies  heavily  on 
that 
consumption  taxes.  Table A3.1  shows 
Slovakia’s total tax revenue in 2024 amounted to 
35.5%  of  GDP,  well  below  the  EU  average  of 
39.4%  (20).  This  was  a  slight  increase  from  the 
2019 level of 34.3%. In Slovakia, both labour and 
consumption  taxes  account  for  a  significantly 
higher share of total tax revenue (see Graph A3.1) 
than the respective EU averages. Labour taxes are 
the  largest  source  of tax  revenue (54.9%  of total 
revenue, 3.4 percentage points (pps) above the EU 
average),  followed  by  consumption  taxes  (31.2%, 
4.4 pps above the EU average), while capital taxes 
account  for  only  13.9%  of  total  taxation  (7.7 pps 
below  the  EU  average).  A  distinctive  feature  of 
Slovakia’s  tax  mix  is  the  high  share  of  labour 
taxes,  primarily  driven  by  compulsory  social 
contributions,  which  comprise  44.2%  of  total 
revenue  and  exceed  the  EU  average  (32.9%)  by 
11.3 pps. 

Revenues  from  recurrent  property  taxes  in 
Slovakia  are  low  (0.5%  of  GDP  in  2024), 
compared  to  the  EU  average  (0.9%),  despite 
property  taxes  being  relatively  growth-
friendly.  Unlike  most  EU  countries,  Slovakia 
applies  an  area-based  property  taxation  system 
under  which 
taxed 
according  to  surface  area  rather  than  estimated 
market  value.  As  a  result,  some 
important 
characteristics  are  not  taken  into  account.  This 
reduces  fairness  and 
limits  the  capacity  to 
generate revenue. 

immovable  property 

is 

reforms. Furthermore, capital gains from property 
sales  are  exempt  from  tax  after  five  years  of 
ownership,  narrowing  the  property  base  and 
increasing  the  incentive  for  long-term  investment 
in  housing,  while  further  increasing  the  level  of 
home ownership. Moving towards a market-value-
based  property 
tax  system,  as  either  a 
complement  to  or  replacement  for  the  current 
area-based approach, would improve fairness and 
revenue mobilisation and help dampen real estate 
demand.  Currently,  market  values  are  used  to 
calculate only land taxation and are not applied to 
areas covered by buildings.  

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

Source: Taxation Trends Data, DG TAXUD 

As  the  share  of  environmental  taxation  in 
Slovakia’s tax mix is declining there is scope 
to  make  greater  use  of  this  revenue  source. 
Revenues  from  taxes  on  transport,  pollution  and 
use of natural resources remain consistently below 
the  EU  average,  suggesting  untapped  potential  to 
strengthen  application  of  the 
‘polluter  pays’ 
principle. Estimates for 2023 show that Slovakia’s 
effective  carbon  tax  rate was  EUR 64.1  per  tonne 
of  CO₂  equivalent,  well  below  the  EU  average  of 
EUR 84.8.  This  constitutes  a  weak  incentive  to 
reduce 
internalise 
To 
environmental  externalities,  it  would  be  beneficial 
if  Slovakia  considered  expanding  underused 
environmental  tax  instruments  such  as  waste 
disposal taxes (including on incineration), transport 
taxes and additional levies on waste discharge into 
water courses and on plastic products. 

emissions. 

fully 

The  absence  of  a  comprehensive  valuation 
system and sufficiently detailed data hinders 

(20)  Eurostat  (April  2026  release)  reports  a  tax-to-GDP  ratio  of 

36.4 % for 2025. 

Recent  reforms  of  Slovakia’s  corporate 
taxation,  including  a  new  tiered  statutory 
rate  structure,  have  increased  headline  tax 
rates for larger firms while preserving lower 
rates for smaller companies. In the short term, 
this  may  negatively  affect  investment  decisions 

46 

51.526.821.654.931.213.9Taxes 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. 

for 

tax 

rate 

(CIT) 

income 

large  corporations.  However, 

for  some 
the 
implications  for  growth  and  competitiveness  will 
depend primarily on effective tax rates, which are 
the highest in the Visegrád Four. Furthermore, both 
the  effective  tax  rate  (20.6%)  and  the  statutory 
corporate 
large 
companies  (24%)  are  above  the  EU  average, 
probably  reducing  competitiveness.  Moreover,  in 
2025  Slovakia  introduced  a  tax  on  the  use  of 
payment services with a differentiated tax rate per 
taxable  service  (0.4%  on  bank  transfers,  with  a 
cap  of  EUR 40  per  transfer;  0.8%  on  cash 
withdrawals and a flat  amount of EUR 2 per year 
for  each  payment  card  issued  to  a  transaction 
account that has been used to carry out a financial 
transaction). There are exemptions for some types 
of  users  (non-profit  organisations,  for  example) 
and 
(transactions 
connected with the purchase of securities or other 
financial instruments and health related payments, 
for  instance).  As  of  1 January  2026,  the  tax  only 
applies  to  legal  entities  and  self-employed  are 
excluded.  In  addition  to  potentially  complicating 
compliance,  tax  exemptions  might  encourage 
evasion  through  claims  of  tax-exempt  status. 
Moreover, 
in 
relatively  high 
conjunction  to  the  capping  of  the  tax  at  EUR 40, 
might  prompt  bunching  of  payments,  netting  or 
other tax distortions. The tax further increases the 

transactions 

specific 

rate, 

the 

tax 

for 

already  substantial  corporate  taxation  burden  on 
businesses.  

climate 

supporting 

As  of  2026,  Slovakia  has  reinforced  CIT 
incentives 
and 
environment related activities. The Income Tax 
Act  allows  the  deduction  from  taxable  income  of 
specific  categories  of  expenses,  including  costs 
incurred 
in-house  environmental 
protection  facilities.  This  promotes  efforts  to 
pursue  environmental  objectives  while  preserving 
competitiveness. 

to  operate 

Compliance in the area of corporate taxation 
remains a key challenge. The corporate income 
tax  gap  is  estimated  to  be  high,  by  both  national 
sources  (21)  and  the  European  Commission  (22). 
There  is  no  evidence  that  recent  rate  increases 
have  improved  compliance.  Meanwhile,  increasing 
complexity and legislative changes risk weakening 
Slovakia’s investment attractiveness. 

The  tax  burden  on  labour  is  relatively  high, 
especially  at  low  levels  of  earnings.  Changes 

(21) Searching for gaps: bottom-up approach for Slovakia. 

(22)  The Corporate Income Tax Gap: A European approach to 

measuring losses in corporate tax revenues. 

47 

2019202220232024202520192022202320242025Tax structureTotal taxes (including compulsory actual social contributions) (% of GDP)34.335.335.035.536.439.939.739.039.4Taxes on labour (% of GDP)18.518.418.919.520.620.119.920.3of which, social security contributions (SSC, % of GDP)14.914.715.015.713.012.712.713.0Taxes on consumption (% of GDP)11.511.611.611.111.210.910.510.6of which, value added taxes (VAT, % of GDP)7.27.87.97.67.17.47.17.1Taxes on capital (% of GDP)4.35.24.64.98.18.78.58.5Personal income taxes (PIT, % of GDP)3.73.83.83.79.69.49.39.6Corporate income taxes (CIT, % of GDP)3.04.13.63.92.63.23.23.1Total property taxes (% of GDP)0.40.40.40.52.22.11.91.8Recurrent taxes on immovable property (% of GDP)0.40.40.40.51.21.00.90.9Environmental taxes (% of GDP)2.52.12.21.92.62.12.12.1Effective carbon rate in EUR per tonne of CO2 equivalentsnana64.1nanana84.8naTax wedge at 50% of average wage (single person) (*)40.440.540.740.640.832.431.631.531.531.6Tax wedge at 100% of average wage (single person) (*)44.344.344.444.544.640.139.739.939.940.0Corporate income tax - effective average tax rates (1) (*)20.620.620.620.620.019.219.019.3Difference in Gini coefficient before and after taxes and cash social transfers (pensions excluded from social transfers) (2) (*)5.06.06.68.27.88.07.97.8Outstanding tax arrears: total year-end tax debt (including debt considered not collectable) / total revenue (in %) (*)22.119.815.9na31.832.630.7naVAT gap (% of VAT total tax liability, VTTL) (**)16.511.510.59.710.57.38.2naEU-27SlovakiaProgressivity & fairnessTax administration & complianceBy tax baseSome tax types 
 
 
      
 
coming  into  effect  in  2026  have  improved  the 
progressivity  of  labour  taxation,  adding  two  new 
tax  brackets  at  the  top  of  the income  distribution 
with marginal rates of 30% and 35%. In  addition, 
increases 
in  mandatory  social  and  health 
contributions  have  raised  the  tax  wedge  for  low-
income  earners  too.  Graph  A3.2  shows  that  the 
labour  tax  wedge  (23)  for  Slovakia  in  2025  was 
above  the  EU  average  at  all  earnings  levels,  but 
especially for low earners (40.8% for single people 
earning 50% of the average wage, compared to an 
EU  average  of  31.6%).  Second  earners  earning  a 
wage of 67% of the average wage whose spouses 
earned  the  average  wage  were  subject  to  a  tax 
wedge slightly below the EU average. The ability of 
the  tax-and-benefit  system  to  reduce  inequality 
its  ability  to  reduce  the  Gini 
(measured  by 
coefficient)  (24)  has  increased  in  recent  years.  In 
2024, it was at 8.2 pps, close to the EU average of 
7.8 pps  (see  Table  A3.1).  Meanwhile,  inequality  in 
Slovakia as measured by the Gini coefficient is the 
lowest in the EU.  

Slovakia  has  a  formal  system  for  reporting 
tax  expenditures,  but  evaluation  remains 
fragmented.  Annual  data  are  published  covering 
personal  income  tax  (PIT),  CIT,  value-added  tax 
(VAT)  and  excises,  with  projections  up  to  three 
years  ahead  and  classification  by  tax  base  and 
policy  purpose.  The  Ministry  of  Finance  has  also 
developed  a  dedicated  tax  expenditures  manual 
(‘Daňové  výdavky’),  defining  tax  expenditures,  the 
reference-law  benchmark  and 
revenue-
forgone  estimation  method.  However,  evaluation 

the 

employer 

contributions, 

(23)  The  tax  wedge  is  an  indicator  of  the  tax  burden  on  labour 
that  can  be  assessed  at  various  levels  of  earnings.  It  is 
calculated  as  the  sum  of  personal  income  tax,  employee 
social-security 
social-security 
contributions and other mandatory contributions, net of cash 
family benefits where relevant, expressed as a percentage of 
total  labour  costs  (composed  of  the  gross  wage  plus 
employer  social-security  contributions).  In  other  words,  the 
tax  wedge  measures  the  gap  between  the  total  cost  of 
employing  a  worker  and  that  worker’s  net  earnings,  as  a 
share  of  total  labour  costs.  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 the models.  

(24)  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 a single 
person has all the income. 

continues  to  be  done  across  different  institutions 
and studies. Although the budget report includes a 
dedicated  section  assessing  the  fiscal  cost  of  tax 
expenditures, 
and 
is 
consolidated  report  focusing  on  their  systematic 
effectiveness evaluation. 

recurring 

there 

no 

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

Note: The second-earner tax wedge assumes a first earner at 
100% of the average wage and no children. For the 
methodology of the tax wedge for second earners, see 
OECD, 2016, Taxing Wages 2014-2015. 
Source: European Commission 

from 

foregone 

revenues 

Overall 
tax 
expenditures  are  limited  and  mostly  stem 
from  PIT  and  VAT.  Overall  fiscal  costs  of  tax 
expenditures  are  reported  at  EUR 3.4 billion  in 
2025.  This  corresponds  to  7.4%  of  total  tax 
revenues  or  2.4%  of  GDP.  VAT-related  foregone 
revenues are estimated to have been EUR 1 billion 
in  2024  and  are  projected  to  have  risen  to 
EUR 1.8 billion 
fiscal 
2025, 
including  a  higher 
consolidation  measures, 
standard  VAT  rate.  The  VAT  policy  gap  stood  at 
46%  in  2023.  PIT-related  tax  expenditures  are 
expected  to  have  fallen  from  EUR 1.5 billion  in 
2024 to EUR 0.9 billion in 2025, while CIT-related 
tax  expenditures  are  expected  to  have  declined 
from  EUR 668 million  to  EUR 297 million  in  the 
same period, following changes to the reduced CIT 
rate and eligibility threshold. 

reflecting 

in 

Over  the  last  two  years,  legislative  changes 
across  VAT,  CIT  and  PIT  have  increased  the 
complexity  of  the  tax  system.  These  include 
the  VAT  rate  increase  and  a  revised  reduced-rate 
structure,  the  introduction  of  a  tiered  CIT  regime, 
and more progressive PIT brackets and allowances. 
Additional  complexity  may  weaken  compliance 
behaviour  and  encourage 
informality,  thereby 
complicating  progress  towards  reducing  the  tax 
gap. 

48 

40.842.744.646.736.02025303540455050100150Tax wedge, % of total labour costsEarnings as % of the average wageSingle earner - SKSingle earner - EU averageSecond earner -  SKSecond earner -  EU average 
 
      
digital reporting for domestic business-to-business 
transactions  will  apply  from  January  2027,  with 
cross-border reporting expected from July 2030 in 
line  with 
reporting 
the  EU  VAT  digital 
framework (26).  By  contrast,  PIT  e-filing  remains 
low  at  49.2%,  well  below  the  EU  average  of 
87.1%. The tax administration also uses risk-based 
tools, soft-warning notifications and multi-channel 
taxpayer  assistance  to  support  taxpayers.  While 
artificial intelligence has been formally introduced, 
its  use  remains  limited  in  practice.  In  January 
2026,  Slovakia  introduced  a  broader  package  of 
anti-fraud  and  tax-compliance  measures.  The 
reform expanded the use of eKasa (an online sales 
rules  on  cash 
tightening 
reporting  system), 
payments,  and 
the  Financial 
strengthened 
Administration’s  oversight  powers.  Additionally, 
from 1 May 2026, businesses must offer at least 
one  cashless  payment  option  for  transactions 
exceeding  EUR  1,  with  QR  code  payments 
permitted as one of the available methods. 

Slovakia  has  a  high  level  of  outstanding 
stock of tax arrears, though it declined from 
22.1% to 15.9% between 2019 and 2023. As 
of  2023,  Slovakia  reported  that  6.2%  of  its  tax 
arrears  were  considered  collectible.  This  suggests 
limited  recovery  of  unpaid  taxes  due  to  delays, 
insufficient  write-off 
legal 
mechanisms. 

constraints  and 

Slovakia’s VAT compliance gap declined from 
over  16%  of  the  VAT  total  tax  liability  in 
2019  to  10.5%  in  2024.  However,  Slovakia’s 
VAT  compliance  remained  above  the  EU  average. 
The reduction in the VAT compliance gap reflects a 
lower share of services in GDP and slower growth 
in  sectors  with  higher  non-compliance  risk;  this 
supported compliance but was partly offset by an 
increase  in  bankruptcies  that  complicated  VAT 
collection.  Slovakia’s  use  of  electronic  reporting 
obligations  (e.g.  SAF-T-type  reporting)  and  online 
cash 
improved 
transaction traceability.  

registers  has  probably  also 

Slovakia  has  an  established  CIT  gap 
estimation  framework  but  does  not  publish 
any  official  estimate  of  the  PIT  gap (25). 
National  bottom-up  estimates 
for  2015–16 
suggest that the CIT gap amounted to around 28% 
of  potential  CIT 
revenues,  while  European 
Commission  estimates  based  on  a  top-down 
methodology  place  the  CIT  compliance  gap  at 
around 27% of collected CIT revenues, well above 
the unweighted average of 10.9% for EU countries 
with  available  data.  Looking  ahead,  the  planned 
introduction  of  mandatory  business-to-business 
structured 
near-real-time 
reporting  from  2027,  while  primarily  aimed  at 
strengthening VAT compliance, is also expected to 
generate  positive  spillovers  for  monitoring  and  to 
reduce the CIT gap. 

e-invoicing  with 

Slovakia  does  not  provide  pre-filled  tax 
returns for PIT, CIT or VAT. The absence of pre-
filling  makes  the  compliance  process  more  time-
consuming  for  taxpayers.  In  contrast,  pre-filled 
returns for motor vehicle taxes are available. 

Slovakia  has  advanced  the  digitalisation  of 
its  tax  administration  to  address  the  2025 
CSR  in  this  area.  Its  financial  administration 
portal enables e-filing, secure communication and 
online  account  management,  and  this  helps  to 
reduce  compliance  burdens.  Slovakia  has  one  of 
the highest VAT e-filing rates in the EU, with 100% 
of  VAT  and  98.9%  of  CIT  returns  submitted 
electronically in 2023, both above the EU average 
(97.1%). Slovakia introduced mandatory business-
to-government  e-invoicing  in  April  2023  through 
the IS EFA platform using the European EN-16931 
standard.  Mandatory  structured  e-invoicing  and 

(25)  European Commission, Directorate-General for Taxation and 

Customs Union, Mind the gap - 2025 report. 

(26)  eInvoicing in Slovakia. 

49 

 
 
 
PRODUCTIVITY 
ANNEX 4: INNOVATION TO BUSINESS  

to 

for 

the 

National 

European 

Slovakia 
‘emerging 
is  classified  as  an 
innovator’,  with  the  disparity  between  its 
performance  and  the  EU  average  growing. 
Innovation 
According 
Scoreboard (27), Slovakia achieves 62.6% of the EU 
benchmark.  Its  growth  trajectory  since  2018  has 
lagged  behind  the  EU’s  overall  progress,  with  an 
increase of 8.3 percentage points vs the EU’s 12.6. 
After steady increases in previous years, Slovakia’s 
R&D  intensity (28)  declined  between  2023  and 
2024  and  remains  significantly  below  the  EU 
average  (0.98%,  compared  with  2.24%).  In  its 
2023 
Research, 
Strategy 
Development, and Innovation (NSRDI) (29), Slovakia 
set  a  2%  R&D  intensity  target  by  2030  and 
outlined an action plan with concrete measures to 
reform  the  research  and  innovation  (R&I)  system. 
For 
country-specific 
recommendation  (CSR)  highlighted  challenges  in 
collaboration  between business  and  the  research 
sector  and  the  need  to  revise  the  R&D  tax 
incentive  scheme  to  provide  greater  support  to 
increasing  R&D 
SMEs.  Additionally, 
spending  in  line  with  the  trajectory  up  to  2030, 
and  tackling  the  R&I  ecosystem’s  persisting 
fragmentation 
includes 
to 
implementing 
consolidate R&I governance, as kickstarted by  the 
RRP.  The  digitalisation  of  Slovak  businesses  is  on 
an  upward  trajectory,  aligning  with  the  2025 CSR 
objectives  to  increase  the  adoption  of  digital 
technologies  by  businesses,  particularly  among 
SMEs.  Companies  are  progressively  integrating 
advanced  digital  technologies  and  SMEs  are 
advancing,  although  performance  remains  overall 
below the EU average. 

remain  crucial.  This 
necessary 
the 

Slovakia, 

reforms 

further 

2025 

the 

Excellent science 

faces 
Slovakia’s  public 
challenges  related  to  fragmentation  and 

science  base 

(27)  European 

Commission, 

Innovation 
2025, 
Scoreboard,  Country  profile:  Slovakia.  The  EIS  provides  a 
comparative  analysis  of  innovation  performance  in  EU 
countries, including the relative strengths and weaknesses. 

European 

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

R&D as a percentage of GDP. 

(29)  Web page: https://vaia.gov.sk/sk/narodna-strategia-vyskumu-

vyvoja-a-inovacii-2/. 

50 

underinvestment.  Slovakia’s  proportion  of  the 
top 10% most-cited scientific publications relative 
to  its  total  output  continues  to  rank  among  the 
lowest in the EU (4.8% in 2022; EU average: 9.4% 
- see Graph A4.1 below). However, this figure has 
improved  from  3.7%  in  2010.  This  points  to  a 
weak public science base, caused by long-standing 
public  R&D  underinvestment  and  a  fragmented 
R&I 
landscape  performance  from  33  higher 
education  institutions (30),  69  institutes  of  the 
Slovak Academy of Sciences, and other public and 
private research centres and institutes. In addition, 
the  share  of  tertiary  students  enrolled  in  STEM 
programmes  in  Slovakia  remains  below  the  EU 
average (23% vs 26.9% in 2023, see Annex 13).  

In  2024,  public  R&D  expenditure  as  a 
reached  0.39% (31), 
percentage  of  GDP 
although  compared  with  2023  (0.45%)  the 
figure  decreased  slightly.  According  to  the 
NSRDI,  public 
research  and 
spending  on 
development  from  the  state  budget  should  reach 
0.67%  of  GDP  by  2030;  keeping  the  public  R&D 
spending  trajectory  is  necessary  to  achieve  this 
target.  The  introduction  of  a  system  of  periodic 
scientific  performance  evaluations  for  universities 
and research organisations is helping improve the 
quality of scientific performance and achieve more 
merit-based distribution of institutional funding. In 
this  context,  deploying  international  reviewers  for 
research  output  assessment  and  for  projects 
funded  through  the  RRP  has  proven  effective  in 
mitigating  bias,  streamlining  evaluations  and 
establishing  a  model  for  best  practice.  Alongside 
efforts  to  unify  the  current  fragmented  system 
and encourage the cooperation of research teams, 
continued  support 
for  high-quality  scientific 
outputs  is  vital  to  attaining  a  critical  mass  and 
fulfilling  the  original  NSRDI  and  action  plan’s 
goals.  

(30)  20 public higher education institutions (HEIs), 3 state HEIs 

(ministry-linked institutions for specific state functions such 
as police, military, or healthcare education) and 10 private 
HEIs. 

(31)  Universities  accounted  for  0.23%  and  the  rest  of  the 
government  sector  0.16%  of  GDP.  These  percentages  are 
below the EU level, where the public sector in the EU spends 
0.72% of GDP (universities 0.48% and government 0.24% of 
GDP). 

 
 
 
 
 
 
 
Graph A4.1: Scientific publications of the country 
within the top 10% most-cited scientific 
publications worldwide as % of the country’s 
total scientific publications 

applying the 2023 binding methodology (34) for the 
management, financing and evaluation of support 
for research and development. 

Business innovation 

Source: Science-Metrix 

an 

R&I 

top-level 

research, 

distribution 

governance 

development 

The efficiency of R&I funding is hampered by 
coordination,  while  keeping 
inadequate 
national 
and 
innovation  strategy  reforms  on  track  is 
critical  to  ensure  the  sustainability  of  RRP 
investments  beyond  2026.  Fragmentation  and 
underfunding of the research base (see above) are 
aggravated  by  R&I  governance  weaknesses, 
particularly 
of 
unclear 
responsibilities  and  fragmented  allocation  of 
financial  resources (32).  Reforms  to  improve  inter-
and 
ministerial 
coordination  have  been  launched  under  the  RRP. 
These  have  led  to  a  new  coordination  structure, 
including  the  creation  of  the  Research  and 
Innovation  Authority  and  the  adoption  of  the 
NSRDI  and  accompanying  action  plan,  creating 
very  positive  momentum  for  reforms.  However, 
there  has  seen  little  progress  on  the  introduction 
of  a  new  R&I  act (33),  with  little  developments  on 
the National RDI Strategy 2030. The proposed act 
is  intended  to  make  research  and  innovation 
governance  more  efficient  by  consolidating 
responsibilities across relevant ministries, agencies 
and  organisations  involved  in  R&I  policymaking 
and implementation, thus enabling R&I funds to be 
used more effective and efficiently. Further effort 
is  also  required  to  implement  reforms  already 
introduced,  for  example  to  improve  the  efficiency 
of  public  funding  distribution  by  systematically 

and 

in 
relies 

faces  challenges 

fostering 
Slovakia 
innovation 
the 
on 
still 
manufacturing  industry.  A  significant  share  of 
the  country’s  business  landscape  consists  of  low-
efficiency micro-businesses (35). These firms, which 
constitute  around  97%  of  all  businesses  and 
provide  over  40%  of  employment in  the  business 
in  R&I 
sector,  display  minimal  engagement 
activities (36).  Productivity 
improvements  have 
largely  relied  on  the  manufacturing  industry, 
particularly 
corporations, 
large  multinational 
whereas  the  service  sector  has  seen  only  modest 
gains.  The  value  added  in  medium-high-tech (37) 
manufacturing  (e.g.  automotive)  as  a  percentage 
of  total  value  added  significantly  prevails  (10.02, 
vs  EU  average  of  5.63  in  2023).  Weak  private-
sector  innovation  is  further  evident  in  business 
enterprise  expenditure  on  R&D  (BERD),  which 
accounted  for  just  0.59%  of  GDP  in  2024  –  well 
below  the  EU  average  of  1.49% (38)  (see  Graph 
A4.2  below).  This  underinvestment  also  translates 
into limited innovation output, as demonstrated by 
patent filings: in 2022, Slovakia recorded only 0.58 
the  Patent 
patents  per  billion  GDP  under 
Cooperation Treaty, compared with 2.81 in the EU.  

(34)  Záväzná metodika – Výskumná a inovačná autorita. 

(35)  Defined as enterprises with fewer than 10 employees.  

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

Slovak Republic, OECD Publishing, 
Paris, https://doi.org/10.1787/972046f5-en. 

(32)  OECD,  2021,  ‘Promoting  research  and  innovation  in  the 
Slovak  Republic  through  an  effective  use  of  European 
funds’, OECD  Public  Governance  Policy  Papers,  No. 4,  OECD 
Publishing, Paris, https://doi.org/10.1787/f0e9d786-en. 

(37)  On  the  other  hand,  value  added  in  high-tech  manufacturing 
as % of total value added lags behind the EU average and is 
even  decreasing  over  time  (from  0.81  in  2013  to  0.64  in 
2023). 

(33)  The act was originally planned to be submitted in Q3/2024 

(38)  The  country  is  thus  at  roughly  half  of  its  national  strategic 

(see Action plan – measure number 1.1.1.3). 

goal of 1.2% in 2030. 

51 

9.44.80246810121416NLLUDKSEFIIEBEITCYDEATEEEUELESFRPTSIMTROHUPLCZLTLVSKHRBG 
   
 
 
Graph A4.2: Business expenditure on R&D as a 
percentage of GDP in the Visegrad countries 

boost accountability, ensure rigorous selection and 
strengthen public trust in the funding process. 

Source: Eurostat 

Increasing the effectiveness and targeting of 
public  support  could  stimulate  greater 
company  engagement  in  innovation.  Public 
funding  for  business  R&D  as  a  share  of  GDP 
remains  far  below  the  EU  average  (0.211%), 
though  a  positive  trend  emerged  between  2017 
and  2021,  with  the  rate  rising  from  0.019%  to 
0.089%.  Although  this  increase  came  primarily 
from  slightly  expanded  R&D  tax  incentives,  both 
these  incentives  and  direct  financial  support  for 
R&D have remained stagnant at minimal levels. As 
highlighted 
in  the  2025  CSR,  the  R&D  tax 
allowance  is  skewed  towards  established,  large-
scale  and  multinational  enterprises.  Additionally, 
an  OECD  analysis (39)  notes  that  the  current  R&D 
tax  incentive  framework  lacks  provisions  for  cash 
refunds,  which  could  be  critical  for  small  and 
requiring  early-stage 
newly 
founded 
financial  backing  during 
innovation  processes. 
the  scope  of  competitive  grant 
Expanding 
represent  strategic  steps 
programmes  could 
forward.  Given 
about 
concerns 
repeated 
transparency  and  fairness  in  R&I  funding  to 
private  companies, 
independent 
international  evaluators (40) 
could  strengthen 
confidence  in  merit-based  allocations.  Already 
applied in recovery and resilience R&I funding and 
some  other  selected  calls,  such  panels  would 

the  use  of 

firms 

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

https://doi.org/10.1787/397ca086-en (see p. 50). 

(40)  This 

is 

in 

requirement 

the  2023  binding 
included 
methodology for the management, financing and evaluation 
of  support  for  research,  development  and  innovation  and 
based  on 
in  a  2021  OECD  study: 
‘Promoting  research  and  innovation  in  the  Slovak  Republic 
through  an  effective  use  of  European  funds’, OECD  Public 
Governance  Policy  Papers,  No. 4,  OECD  Publishing, 
Paris, https://doi.org/10.1787/f0e9d786-en. 

recommendations 

in  key 

sectors 

limiting 

technology 

in  Slovakia 

Collaboration  between  the  business  and 
research 
remains 
and 
constrained, 
knowledge  transfer.  Science-business  linkages 
in  Slovakia  have  been  historically  hampered  by  a 
weak  public  and  private  science  and  innovation 
base  (see  above),  with 
limited  capacity  and 
incentives  for  both  sides  to  interact.  This  is 
reflected 
indicators  such  as  public 
expenditure  on  R&D  funded  by  businesses  as  a 
share  of  GDP.  This  remains  exceptionally  low  – 
0.01% in 2021, significantly below the EU average 
of 0.06% – and has shown a declining trend over 
time  (in  2012  the  figure  stood  at  0.04%). 
Additionally,  in  2023  the  number  of  researchers 
employed  by  businesses  (full-time  equivalents) 
was less than half the EU average, underscoring a 
persistent  gap  in  industrial  research  capacity.  In 
contrast,  data  on  public-private  scientific  co-
publications  as  a  proportion  of  total  publications 
reveal  a  more  encouraging  trajectory,  increasing 
from  4.9%  in  2013  to  6.3%  in  2024,  though  still 
slightly  trailing  the  EU  average  of  7.7%.  Recent 
efforts  such  as  those  under  the  RRP  (C[C9]-I[I2]) 
with  a  focus  on  matching  grants  /  innovation 
vouchers  for  collaborative  R&D,  have  produced 
some 
academia-business 
the 
cooperation. Nevertheless, significant gaps persist, 
as  noted  in  the  2025  CSR,  which  highlighted  the 
need to strengthen collaboration between business 
and the research sector. The 2023 NSRDI outlines 
several  specific  measures  in  its  action  plan,  such 
as  enhanced  support  for  technology  transfer 
offices. Some financial  support  was distributed to 
technology transfer offices in selected universities 
in  the  past  year,  in  line  with  the  action  plan,  and 
matching  for  university-business  cooperation  was 
strengthened 
institutional  funding  of 
universities  from  15  mil.  EUR  in  2025  to  22  mil. 
EUR  annually  (from  6  %  to  8  %  of  total 
institutional  R&D  funding).  Nevertheless, it  is  also 
important  that  its  other  targeted  initiatives  are 
implemented and their continuity ensured, so as to 
improve 
level  of 
the  current  unsatisfactory 
collaboration (41).  In  addition,  the  new  Universities 
Act,  due  to  enter  into  force  in  September  2026, 

results 

the 

on 

in 

(41)  E.g.  by  ensuring  continued  emphasis  on  programmes  to 
support 
strategic 
documents such as forthcoming updates to the national R&D 
strategy action plan. 

science-business 

collaboration 

in 

52 

EUaverageCZHUPLSK20241.491.180.990.890.5900.20.40.60.811.21.41.6EU averageCZHUPLSK 
   
 
 
shifts  ownership  of  intellectual  property  rights 
generated  at  universities  to  researchers,  which 
could be  seen as a disincentive for universities to 
support technology transfer. 

Slovak  businesses  are  making  gradual 
progress  in  their  digitalisation,  though  to 
varying  degrees.  In  2025,  the  majority  of  SMEs 
(57.09%) achieved at least a basic level of digital 
intensity, marking a notable increase from 42.19% 
in  2023.  Nevertheless,  this  figure  remains  well 
below  the  EU  average  of  71.39%.  While  the  gap 
with  the  EU  average  was  smaller,  SMEs  with  a 
very  high  digital  intensity  formed  only  a  minority 
(5.37%  in  Slovakia  vs  9.06%  at  EU  level).  (42) 
Improvements  have  also  been  registered  in  the 
adoption  of  advanced  digital  technologies  in  the 
business  population.  AI  uptake  saw  the  most 
substantial  increase  in  2025,  reaching  18%  –  a 
67% 
rise  compared  with  2024  –  closely 
approaching  the  EU  average  of  19.95%.  Data 
analytics  adoption  also  showed  robust  progress, 
reaching  38.75%  in  2025,  slightly  below  the  EU 
average  of  39.85%  but  experiencing  stronger 
growth. Conversely, cloud technology uptake stood 
at  32.92%  in  2025,  considerably  lower  than  the 
EU  average  of  46.69%,  with  only  a  modest 
increase from 30.16% in 2023. Overall, and in line 
with  the  same  trend  at  EU  level,  a  considerable 
gap  exists  between  large  enterprises  and  SMEs, 
with  the  former  making  much  greater  use  of 
advanced digital technologies.  

Relevant  measures  are  being  implemented 
and  are  generally  well  received,  but  remain 
fragmented and small in scale, reaching only 
a minority of firms and limiting their overall 
impact. These are meant to increase the adoption 
of digital technologies, principally among SMEs, in 
line  with  2025  CSR  on  increasing  the  adoption  of 
digital  technologies,  particularly  among  SMEs,  by 
removing  bottlenecks 
roll-out.  The 
in 
measures’  visibility  is  also  low,  meaning  many 
SMEs  –  especially  traditional  firms  and  those 
outside major centres – are either unaware of the 
support  available  or  are  unclear  about  the 
measures’  practical  benefits. 
In  addition,  the 
availability  of  future  funding  is  uncertain,  which 
raises  questions  about 
the  sustainability  of 
existing  initiatives.  Key  measures  implemented  in 
2025  include:  (i)  a  guaranteed  loan  with  a  grant 

their 

(42)  Eurostat, Digital Intensity by size class of enterprise, 
isoc_e_dii, https://doi.org/10.2908/ISOC_E_DII. 

to 

(EDIHs); 

Innovation  Hubs 

component  (supported  by  cohesion  policy  funds 
and the RRF) to improve access to investment for 
businesses  embarking  on  digitalisation  and 
automation  projects;  (ii)  five  active  European 
Digital 
(iii)  digital 
vouchers  to  support  the  adoption  of  advanced 
digital  technologies  by  SMEs.  Moreover,  the  pilot 
phase  of  Digitrans,  aimed  at  supporting  the 
digitalisation  of  SMEs  with  very  low  levels  of 
digital  uptake,  was  also  completed  in  2025,  with 
continue 
plans 
in  2026.  Beneficiaries 
appreciated 
its  simple  procedures  and  rapid 
support,  but  its  overall  scale  and  impact  were 
limited by the relatively small size of the financial 
assistance.  Generally,  EDIHs  and  the  guarantee 
grant  instrument  appear  to  be  better  suited  to 
driving  deeper  digitalisation,  as  they  deliver 
tailored  solutions  and  enable  substantial  co-
financed  investments  anchored  in  medium-  to 
long-term  business  plans.  However,  continued 
financial  support  for  EDIHs  after  May  2026  is 
uncertain, due to related funding from Programme 
Slovakia being reallocated to other priorities. 

While achieving a basic level of digitalisation 
for  many  Slovak 
remains  a  priority 
companies,  work 
is  also  under  way  to 
promote  the  development  and  adoption  of 
advanced digital technologies, particularly AI 
and  high-performance  computing.  Recent 
initiatives include: (i) the adoption of the ‘AI Vision 
for Slovakia’ strategic framework; (ii) the activities 
of  the  Slovak  Centre  for  Artificial  Intelligence 
Research  (including  an  online  information  point, 
preparation  of  an  AI  regulatory  sandbox  and  an 
awareness  campaign);  and  (iii)  the  forthcoming 
SKAIAT  AI  Factory  Antenna,  linked  to  Austria’s 
AI:AT.  In  November  2025,  Slovakia  launched  its 
first  operational  supercomputer  at  the  Technical 
University  in  Košice  and  in  March  2026  at  the 
Slovak  Academy  of  Sciences  in  Bratislava  (two 
clusters).  This  will  strengthen  national  research 
capacity.  However,  as  underlined  by  the  Slovak 
Academy of Sciences and industry representatives, 
long-term 
access 
opportunities for businesses are currently unclear, 
which might negatively affect the supercomputer’s 
long-term added value.  

financing 

future 

and 

A  shortage  of  relevant  digital  skills  and  ICT 
specialists remains an underlying challenge – 
particularly  among  midcareer  workers  and 
women  –  not  sufficiently  addressed  by  the 
current  training  offer.  Many  SMEs  lack  staff 
able  to  design  and  manage  digital  projects,  while 

53 

 
 
the  education  system  produces  too  few 
ICT 
specialists,  and  existing  courses  are  often 
misaligned with business needs. Initiatives such as 
‘Digital Skills for the Green Future of Slovakia’ aim 
to  tackle  this  by  developing  a  standardised 
reference  framework  for  assessing  digital  and 
green skills. However, a need  remains for flexible, 
targeted and business-oriented training.  

Entrepreneurial dynamism 

The  market  for  venture  capital  is  still  weak 
and  weighs  on  the  development  of  the 
start-up  ecosystem.  Venture  capital  investment 
has  expanded  gradually  yet  remains  significantly 
lower  than  the  EU  average  (0.017%,  vs  an  EU 
average of 0.063% of GDP in 2024). According to 
a recent start-up ecosystem mapping exercise (43), 
Slovak  start-ups  are  strongest  in  IT/software 
(38%),  healthcare  (15%)  and  education  (8%). 
Almost half of the start-ups operate in Bratislava, 
and  9%  have  headquarters  abroad.  In  addition  to 
limited financing (44), talent shortages constitute a 
particular  challenge,  alongside  other  regulatory 
aspects  such  as  the  lack  of  an  overarching  legal 
structure for start-up development (e.g. a start-up 
law)  and  a  lack  of  more  targeted  incentives,  for 
instance through special tax schemes.  

considerable 

Slovak  businesses  are  grappling  with  the 
consequences  of  a 
skill 
shortage. A recent OECD report (45) indicates that 
54%  of  Slovak  companies  cite  skill  gaps (46).  This 
has  led  to  multiple  negative  effects  on  the 
innovation capacity of businesses and their ability 
to  adopt  new  technologies.  The  issue  is  also 
exacerbated  by  the  decreasing  number  of  new 

(43)  Startup report Slovensko 2025 | Slovenská sporiteľňa. 

(44)  Ibid.  More  than  half of  investments  go  to  companies  in  the 
pre-seed and seed stages, with the largest volume of capital 
flowing into IT and healthcare. 

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

(46)  Skill gaps are defined as mismatches between the skills 

available in a firm and those required to meet current and 
future business needs (including adapting to technological 
change). 

graduates  in  science  and  engineering (47).  The 
country’s  strategy  for  research,  development  and 
innovation  places  a  strong  emphasis  on  tackling 
pressing  skills  shortages  by  retaining  domestic 
talent  and  actively  attracting  highly  skilled 
professionals, including non-EU nationals; targeted 
initiatives  to  achieve  this  are  detailed  in  its 
implementation  plan  (see  Annexes  11  and  13). 
Additionally,  under  this  implementation  plan,  a 
dedicated  team  responsible  for  coordinating  and 
steering  policies  related  to  talent  retention  and 
attraction  has  been  established  within 
the 
Research  and  Innovation  Authority.  The  team 
currently  coordinates  efforts  to  attract  and  retain 
talent across various ministries. 

The  Slovak  education  system  has  woven 
entrepreneurship  education  into  strategies, 
and  into  a  new  curriculum  that  will  be 
implemented  from  September  2026  in  all 
primary and lower secondary schools. The new 
curriculum  aims  to  cultivate  essential  skills  and 
competences, including critical thinking, digital and 
problem-solving,  with  a  significant  focus  on 
entrepreneurship  and  initiative-taking  through  a 
new  cross-curricular  approach.  Development  of 
entrepreneurial  skills  cross  curricula 
is  also 
promoted  via  the  national  standard  of  financial 
literacy,  which  indicates  the  aspects  of  financial 
literacy  that  students  in  primary  and  secondary 
education are expected to achieve. Furthermore, a 
funding  scheme  for  supporting  entrepreneurial 
education  is  contributing  to  the  development  of 
students’  entrepreneurial  skills,  with  direct  grants 
available  for  micro,  small  and  medium-sized 
businesses  to  implement  projects  that  encourage 
entrepreneurial  experience  among  students.  Also, 
the  State  Institute  of  Vocational  Education  and 
Training (VET), the Slovak Centre of Training Firms 
and  Junior  Achievement  Slovensko  have  a  long 
history  of  supporting  entrepreneurship,  while  the 
National  Bank  of  Slovakia  and  commercial  banks 
strengthening 
implement  numerous  projects 
in 
literacy 
financial 
comparison  with 
level,  national 
strategies  on  higher  education  pay  less  attention 
to  entrepreneurship  education.  No  data  are 
the  effectiveness  of  measures 
available  on 
supporting  young  people’s  entrepreneurship  skills 
recent  graduates’ 
or  on 

in  Slovakia.  However, 
secondary 

the  quality  of 

(47)  The number of new graduates in science and engineering per 
thousand population continued to decrease, standing at only 
half the EU average in 2023. 

54 

 
 
 
entrepreneurial  skills.  Similarly,  no  evaluation  is 
available  on  the 
impact  of  entrepreneurship 
education on learners’ mindsets and the readiness 
to  turn  ideas  into  action.  More  policy  action  and 
research  on  entrepreneurship  education  in  higher 
education  would  be  beneficial,  also  because  the 
proportion  of  labour  market-oriented  bachelor’s 
studies  is  marginal  in  Slovakia.  Stronger  system-
level coordination, evaluation and investment at all 
levels  would  ensure  greater  reach  and  impact. 
Future  efforts  will  need 
to  move  beyond 
information  delivery  to  focus  on  building  habits 
and confidence, including among those who are at 
greatest risk of exclusion. 

55 

 
 
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 

56 

R&D intensity (gross domestic expenditure on R&D as % of GDP)0.611.150.890.981.040.98 :2.243.44Public expenditure on R&D as % of GDP0.350.830.410.420.450.39:0.720.64Scientific publications of the country within the top 10% most-cited publications worldwide as % of total publications of the country 3.684.004.044.80:::9.4412.31Researchers (FTEs) employed by public sector (Gov+HEI) per thousand active population4.84.14.74.74.74.8:4.3:International co-publications as % of total number of publications42.2041.4949.4348.7549.8352.71:57.24:Business enterprise expenditure on R&D (BERD) as % of GDP0.250.320.480.560.580.59:1.492.69Business enterprise expenditure on R&D (BERD) performed by SMEs as % of GDP0.100.120.210.260.28:: 0.470.30Researchers employed by business per thousand active population0.711.52.12.42.6:5.9:Patent applications filed under the Patent Cooperation Treaty per billion GDP (in PPS €)0.730.790.720.58:::2.812.20Employment share of high-growth enterprises measured in employment (%):::0.920.85::0.87:SMEs with at least a basic level of digital intensity% SMEs (EU Digital Decade target by 2030: 90%)::::42.19:57.0971.39:Data analytics adoption% enterprises (EU Digital Decade target by 2030: 75%)::::30.17:38.7539.85:Cloud adoption% enterprises (EU Digital Decade target by 2030: 75%)::::30.16:32.9246.69:Artificial intelligence adoption % enterprises (EU Digital Decade target by 2030: 75%)::::7.0410.7818.0019.95:Public-private scientific co-publications as % of total number of publications5.975.656.126.746.866.30:7.62:Public expenditure on R&D financed by business enterprises (national) as % of GDP0.0200.0400.0100.0000.000::0.0600.020Total public-sector support for BERD as % of GDP0.030.030.060.06:::0.21:R&D tax incentives: foregone revenues as % of GDP0.000.000.040.04:::0.100.16BERD financed by the public sector (national and abroad) as % of GDP 0.030.030.020.020.05::0.09:Venture capital (market statistics) as % of GDP (calculated as a 3-year moving average)0.0010.0080.0160.0190.0160.017:0.063:Seed stage funding share (% of GDP)0.0010.0010.0020.0030.0040.003:0.005:Start-up stage funding share (% of GDP)0.0000.0040.0120.0110.0070.005:0.030:Later stage funding share (as % of GDP)0.0000.0020.0020.0050.0060.009:0.027:New graduates in science & engineering per thousand population aged 25-34:13.118.828.588.288.55:16.82:Graduates in the field of computing per thousand population aged 25-34:2.062.162.472.552.97:3.84:Science and innovative ecosystemsSlovakia2010201520202022202320242025EU 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 

(SMEs); 

Slovakia's  economic  performance  and  its 
business  environment  have  deteriorated  in 
recent  years. 
country-specific 
The  2025 
recommendations  (CSRs)  highlighted  challenges 
associated  with  ensuring  a  favourable  business 
environment,  transparency  and  competition  in 
public  procurement;  digitalising  of  small 
to 
medium-sized  enterprises 
incentivising 
collaboration  between  business  and  the  research 
sector;  strengthening  the  legislative  framework to 
support  green 
technologies,  and  promoting 
investments to advance industrial competitiveness 
and  economic  diversification.  Uncertainty,  political 
instability and the direct negative effects of some 
significantly 
consolidation  measures 
have 
hampered  business  operations, 
in 
resulting 
investment  delays,  economic  slowdown  and 
heightened 
Structural 
weaknesses persist, including a decreasing foreign 
direct  investment  inflow,  insufficient  investments 
in  research  and  innovation,  and  weak  growth 
among  SMEs.  Public  procurement  suffers  from 
reduced  competitive transparency at 
the  pre-
award  stage,  corruption  and  a  predominant  focus 
criteria,  which  weakens 
on 
competition, while access to finance  – particularly 
equity  –  remains  below  the  EU  average.  The 
industrial sector, led by automotive manufacturing, 
faces elevated energy costs, labour shortages and 
transformation  pressures  amid  global 
trade 
disruptions and geopolitical shifts. The absence of 
industrial  strategy  makes 
it  harder  for 
an 
businesses 
to new  economic  and 
to adapt 
geopolitical challenges. 

lowest-price 

operational 

risks. 

Business dynamics 

limiting 

difficult, 

The  economy  faces  a  scale-up  problem,  as 
the  step  from  micro  to  medium-sized  firms 
remains 
technology 
diffusion  and  the  emergence  of  strong 
domestic  champions.  The  business  demography 
is  heavily  skewed  towards  small  firms.  At  97.7%, 
Slovakia has the highest share of firms with under 
10  employees  in  the  EU  (48).  While  they  provide 
employment for almost 47% of the Slovak labour 
force (30.4% in the EU), they have a limited role in 
value-added  creation  (21.7%  in  Slovakia,  against 
20.5%  in  the  EU).  At  the  other  end  of  the  scale, 

in  Slovakia 

firms with more than 250 employees (despite their 
negligible  share  of  total  business  demography 
(0.1%)  and  relatively 
low  employment  share 
compared with other EU countries (26% vs 36% in 
the  EU)  generate  only  a  slightly  lower  share  of 
value  added  than  their  counterparts  in  the  EU 
(44%  in  Slovakia vs  48% in  the  EU).  This  reflects 
their  much  higher  labour  productivity  and  strong 
export  orientation. The  gap  between  the  largest 
is  not  only 
and  smallest  firms 
substantial but has also been widening over time. 
This  economic  structure  limits  overall  growth  and 
focused  on 
competitiveness.  Policy  efforts 
improving  the  regulatory  environment  –  with  the 
twin 
enhancing  micro-firm 
productivity  and  enabling  scalable  SMEs  to  grow 
into  larger,  internationally  competitive  businesses 
–  would  help  foster  a  more  balanced  business 
demography  and  support  stronger  growth.  To 
address  these  challenges,  it  would  be  beneficial 
for  Slovakia  to  support  clusters  in  key  economic 
sectors  to  strengthen  innovative  collaboration, 
access to funding and scale-up support services. 

objectives 

of 

Slovak  business  demography  is  dynamic, 
characterised  by  a  relatively  high  business 
churn  rate.  This  high  rate  indicates  greater 
economic  dynamism  compared  with  the  EU 
average,  with  a  higher  proportion  of  business 
closures  relative  to  new  registrations.  While  the 
business churn rate stood at nearly 19% in 2021, 
it  climbed  to  more  than  25%  in  2023(49)  (well 
above  the  EU  average  of  19%  in  2023).  This 
signals economic  dynamism but also fragility and 
potential  barriers  to  SME  survival  and  growth. 
Business  creation  responds  more  sharply  to 
shifting conditions such as interest rates, demand 
and  sentiment.  Economic  growth  is  slowing  amid 
the direct impact of some consolidation measures, 
labour  costs  and  a  high 
such  as 
corporate  tax  rate.  Slovakia’s  transaction  tax 
(applying  from  2025)  adds  direct  costs  to  cash-
flow-sensitive SMEs, exacerbating the vulnerability 
of  SMEs  and  increasing  the  risk  of  business 
closures. While the wholesale, retail and transport 
sectors  recorded  the  lowest  increase  in  new 
registrations 
in  2025  compared  with  2024, 
in  2025, 
insolvencies  rose  sharply 
industrial 
underscoring  intense  pressure  on  manufacturing 
and  related  sectors.  This  trend  highlights  ongoing 
vulnerabilities  in  the  automotive,  retail,  transport 
and  construction  sectors,  with  courts  remaining 

increased 

(48)  SME Performance Review 2026. 

(49)  Eurostat (bd_size__custom_19037959), November 2025. 

57 

 
 
 
 
 
overloaded despite the October 2025 amendment 
to  Slovakia’s  insolvency  framework  (50).  The  RRP 
reform  of  the  insolvency  framework  has  also 
helped 
to  establish  unified  and  digitalised 
procedures for insolvency and restructuring. 

Annex  4) (2025 CSR on  incentivising collaboration 
between  business and  the  research  sector and  by 
revising  the  R&D  tax  incentive  scheme  to  provide 
greater support to SMEs). 

a 

lacks 

country 

The 
comprehensive 
regulatory  framework  tailored  to  the  needs 
of  family  businesses.  According  to  the  Institute 
of Family Business (51), 46% of Slovak companies 
are  family  businesses,  72%  of  them  will  transfer 
their  business  to  the  next  generation  within  five 
years,  but  only  30%  of  second-generation  family 
businesses will succeed. Current legislation fails to 
address  practical  challenges  associated  with 
generational 
unique 
characteristics of family businesses, hindering the 
state’s  ability  to  provide  effective  support  for 
smooth  transitions  (52).  Key  institutions,  such  as 
trust  funds,  remain  absent  from  the  Slovak  legal 
system,  limiting  options  for  structured  succession 
planning.  Consequently,  many  family  businesses 
are relocating abroad, primarily to Czechia. 

succession 

the 

or 

improve 

framework, 
regulatory 
With  a  better 
international 
its 
Slovakia  could 
positioning 
in  the  start-up  environment. 
Slovakia’s start-up ecosystem ranks moderately – 
60th globally and 16th regionally in eastern Europe 
(53)  –  yet  it  demonstrates  solid  growth  potential 
through  key  hubs  and  emerging  centres  such  as 
Bratislava  and  Košice,  bolstered  by  accelerators 
and  EU  funds.  Like  other  eastern  European 
economies,  Slovakia’s  start-ups  primarily  offer 
digital  services.  The  Slovak  start-up  scene  is  still 
waiting  for  its  first  unicorn,  but  there  have  been 
several  early exits among Slovak tech companies. 
Positive  changes  have  been  made  by 
the 
government  through  cooperation  with  the  Slovak 
Alliance  for  Innovation  Economy  (SAPIE),  focusing 
on  encouraging  new  start-ups  with  legislation 
tailored for high-growth companies, tax incentives, 
start-up  visas  and  educational  reform.  With  a 
competitive location, digitally oriented universities, 
and  R&D  tax  incentives,  Slovakia  possesses  high 
(see 
innovative  and  entrepreneurial  potential 

(50)  Ministry of Justice, October 2025.  

(51)  Inštitút Rodinného Biznisu. 

drivers 

investments 

insufficient 

investment,  especially 
(54),  and 

Slovakia is losing competitiveness partly due 
in 
to 
in 
research  and  development 
total 
sustainable  growth.  The  share  of 
investment  (government,  households,  business)  in 
Slovakia  has  been  below  the  EU  average  (20.4% 
of  GDP  in  Slovakia  vs  21.7%  in  the  EU)  (55). 
is 
Although  the  total  share  of 
comparable  with  other  EU  countries,  the  key 
distinction lies in their composition. Investments in 
can  be 
research  and  development,  which 
growth, 
of 
the  main 
considered 
significantly  lag  behind.  Their  share  of  total 
investments was 10% in Slovakia, less than the EU 
average  (19%)  or  the  average  in  Czechia  (18%). 
Over the past three years (2022-2025), the rate of 
fixed  investments  in  long-term  assets  –  such  as 
buildings,  machinery,  vehicles  or  infrastructure  – 
decreased by one percentage point compared with 
the  previous  decade,  marking  the  weakest  result 
among  neighbouring  countries.  Slovakia  relies 
primarily  on  EU  sources  for  public  investments 
and, unlike other countries in the region, does not 
them  with  domestic 
sufficiently  supplement 
resources.  Slovakia  approved  a  road  map  in 
long-term 
December  2025  for  developing  a 
the 
investment 
preparedness  of  priority  projects  and  more 
effective use of public funds. 

plan  aimed  at 

ensuring 

country, 

investors  as 

Slovakia  needs  to  restore  confidence  among 
foreign 
it  has  become 
progressively  less  attractive  to  them.  Its 
strongest  growth  period (2000-2012),  when  large 
volumes  of  foreign  direct  investment  flowed  into 
the 
is  now  over.  Foreign  direct 
investments  in  Slovakia  are  the  lowest  compared 
with  neighbouring  countries.  From  2015  to  2024, 
they  accounted  for  only  1.4%,  while  in  Hungary, 
Czechia  and  Poland  they  were  nearly  double  –  at 
around  3%.  Although  there  have  been  recent 
decisions on two major investments in Slovakia – a 
new  car  factory  and  a  battery  production  plant  – 

(52)  Business transfer as part of the barriers highlighted in the 
2025 Single Market Strategy (‘Terrible Ten’), Single market 
strategy. 

(54) Development = investments in intellectual property, including 

software and databases. 

(55) Eurostat, Investment share of GDP by institutional sectors 

(53)  Global Startup Ecosystem Index 2025. 

[sdg_08_11]. 

58 

 
 
 
fewer  investors  are  coming  to  Slovak  ‘greenfield’ 
sites compared with neighbouring countries. 

previous 

increasingly 

investing  only 

years,  with 

Domestic  companies  are  investing  less  than 
in 
uncertainty 
dominating as the main investment obstacle. 
Companies  are 
in 
renewing  machinery  and  buildings  and  in  cost 
reduction, including lay-offs, rather than expanding 
production.  Investment  activity  in  Slovakia  has 
declined  in  the  industrial  sector  in  particular, 
especially  in  the  key  industry  of  automotive 
manufacturing,  which  has  not  maintained  the 
significantly above-average investment rate of the 
previous  decade.  91%  of  Slovak  firms  cite 
uncertainty  as  a  key  obstacle  to  investment 
(compared  with  83%  in  the  EU)  (56).  Companies 
also invest less because they lack people (86% of 
companies report skilled labour shortages vs 79% 
in the EU), energy prices are unpredictable, there is 
less  demand  for  products  or  services  and  the 
business environment is unattractive. 

Business environment 

to 

and 

burdens 

The  Slovak  business  environment  requires 
comprehensive 
reduce 
reforms 
bureaucratic 
improve 
competitiveness.  Slovakia  no  longer  competes 
on  the  basis  of  low  costs.  Both  labour  costs  and 
corporate  tax  rates  have  increased  in  the  last 
years  and  are  relatively  high.  At  the  same  time, 
the  country  is  not  yet  technologically  advanced 
enough to compete in high value-added industries. 
The  legislative  framework  is  comparable  with 
those  of  other  countries,  but  the  key  difference 
lies  in  the  efficient  implementation  of  proposed 
measures.  These  measures  often  fail  to  be 
launched,  are 
than 
planned,  or  are 
reflecting 
inefficiencies in public administration. 

implemented  differently 

incomplete, 

left 

Businesses  need a  more  stable  environment, 
as political instability has a major impact on 
their  operations.  The  2025  recommendation  on 
ensuring  a  favourable  business  environment  by 
regulatory 
creating 
environment 
these 
include  governmental 
challenges.  Key 

predictable 
for 

a  more 
called 

addressing 

issues 

in 

the 

and 

difficulty 

reforms.  There 

instability, 
implementing 
is 
comprehensive  structural 
continued use of fast-track legislative procedures, 
with  60%  of  legislative  proposals  following  a 
standard  system  and 
remaining  40% 
comprising  ad  hoc  governmental  proposals. 
proposals 
parliamentary 
Additionally, 
196 
(57) 
(November  2025) 
thoroughness, 
lack 
completeness,  or  quality  in  their  drafting  and 
execution (see Annex 7). This substantially disrupts 
company  functioning  and  investment  decisions, 
ultimately  leading  some  to  consider  relocating 
abroad  or  even  ceasing  operations.  The  ongoing 
recodification  of  the  Civil  Code 
in  Slovakia 
represents  a  major  legislative  reform  aimed  at 
modernising  civil  law  to  create  a  clearer,  more 
legal  framework.  This 
stable  and  predictable 
reform 
to  significantly  affect 
businesses, including aspects such as contract law, 
legal  certainty  and  rights  related  to  commercial 
activities. 

is  expected 

prevention, 

regulatory 

environment, 

improve  the 
Despite  current  efforts  to 
business 
and 
administrative obstacles remain.  A number of 
RRP  measures,  such  as  the  one-in-two-out  rule, 
gold-plating 
anti-bureaucratic 
packages,  ex post  evaluations,  and  regulatory 
impact  assessments,  have  been  implemented  in 
recent  years.  Even  though  these  measures  have 
the  potential  to  build  a  competitive  business 
environment,  their  effects  have  not  yet  been 
widely  perceived  by  businesses.  According  to 
stakeholders,  they  have  brought  about  only 
improvements,  mainly 
marginal 
affecting 
legislative  acts  and  often  being 
individual 
overshadowed  by 
legislative  packages 
adopted  without  sufficient  stakeholder  input.  In 
addition,  stakeholder  consultations  are  not  a 
standard  practice,  do  not  provide  adequate  time 
for 
remain 
unaddressed. The problem also includes numerous 
exceptions in  legislation  –  such  as  tax  exceptions, 
which  increase  tax  complexity  for  businesses  – 
missing  quantification  of  the  impact  of  new 
measures  and  minimal  outcomes  from  ex post 
assessments.  As  of  the  beginning  of  2026,  a 
comprehensive  package  of  tax  reforms  has  come 
into  effect  as  part  of  the  government’s  fiscal 
consolidation  measures.  The  package  introduces 
significant  changes  for  companies  and  sole 

substantial 

often 

large 

input 

and 

(56)  EIB Investment Survey 2025: Slovakia overview. 

(57)  Ministry of Economy of the Slovak Republic, discussion during 
the European Commission visit to Slovakia, November 2025. 

59 

 
 
 
traders,  representing  one  of  the  most  extensive 
overhauls  of  the  business  environment  in  recent 
years  (58).  The  measures  significantly  increase 
taxation,  particularly  for  larger  companies,  while 
also  expanding  bureaucratic  requirements  for 
thousands of small entrepreneurs. 

for 

business 

efficiency, 

improvements,  digitalisation  of 
Despite 
in  Slovakia  remains 
business  procedures 
limited,  hindering  efficiency  and  smooth 
communication  between 
the  state  and 
businesses.  According  to  the  Single  Market  and 
Competitiveness  Scoreboard,  only  21%  of  cross-
border  business  procedures  were  fully  online  in 
Slovakia  in  2025,  while  company  registration  and 
related  procedures  continue  to  rely  on  registry-
court verification, certified documents and Slovak-
language formalities (59). E-invoicing for business-
to-government  (B2G)  is  considered  a  positive 
development 
tax 
compliance and digital modernisation in Slovakia’s 
business environment. The ongoing process for e-
invoicing 
is 
for  business-to-business 
advancing,  including  with  technical  support  under 
the  European  Commission's  TSI.  This  process  is 
also in line with the commitment under Slovakia's 
fiscal-structural  plan 
national  medium-term 
invoicing 
(MTFSP).  The  structured  electronic 
system 
implemented  and  will  be 
mandated  from  1 January  2027.  Digitalisation  of 
the  regulatory  impact  assessment  began  at  the 
end  of  2025,  with  the  final  delivery  date  of  the 
platform  scheduled 
for  2028.  The  project 
DIGITRANS  (60)  offers  SMEs  with  below-average 
digital maturity, a combination of financial support 
and  expert  advice  for  efficient  and  sustainable 
digitalisation  (see  Annex  4).  These  measures  help 
to  address 
recommendation  on 
increasing  the  adoption  of  digital  technologies, 
particularly among SMEs. 

the  2025 

is  being 

(B2B) 

Slovakia  has  continued  to  improve  its  high-
speed connectivity infrastructure, in line with 
its  2025  CSR  4  prompting  the  country  to 
bolster  its  digital  infrastructure.  However, 
room  for  improvements  remains.  In  recent 

to 

deploy 

(FTTP), 

supported 

investment 

(61).  Economically,  deployment 

years,  the  country  has  prioritised  the  roll-out  of 
by 
fibre-to-the-premises 
sustained  investment  from  telecom  operators.  By 
2024,  FTTP  coverage  reached  67.76%,  slightly 
below  the  EU  average  of  69.24%.  A  wider  gap 
(VHCN) 
in  very-high-capacity-network 
existed 
coverage,  which  stood  at  72.97% 
in  2024, 
compared  with  an  EU  average  of  82.49%.  A 
pronounced  disparity  persisted  in  rural  areas, 
where  VHCN  and  FTTP  coverage  were  lower  than 
the  national  average,  at  39.62%  and  39.57% 
respectively 
is 
constrained by rising costs for construction, labour, 
materials  and  administrative  fees,  with  additional 
pressure  from  higher  energy  prices,  inflation  and 
increased taxation. In rural and sparsely populated 
areas, these costs often exceed the revenues that 
realistically  be  expected.  A  broadband 
can 
connectivity 
gigabit 
infrastructure  in  underserved  areas  amounting  to 
EUR 112  million  was  planned  for  2025.  However, 
over  the  course  of  2025,  EUR 88  million  of  this 
amount  was  reallocated  to  other  priorities.  As  a 
result,  the  intended  public  investments  were  not 
implemented,  potentially  hindering  the  roll-out  of 
high-speed  internet  in  less  affluent  and  rural 
areas.  Significant  legal  changes  took  effect  in 
2025,  notably  the  new  Construction  Law  and  the 
Gigabit  Infrastructure  Act  (62)(63).  While  the  new 
Construction  Law  had  made  the  last  100  metres 
from  the  pavement  to  the  house  subject  to 
notification,  the  GIA  reversed  this.  At  the  same 
to  high 
time, 
administrative 
for 
permitting  procedures,  differing  practices  and 
requests  between  municipalities  and  uneven 
access  to  physical 
In  parallel, 
demand  for  very  high‑speed  internet  in  Slovakia 
remains  relatively  modest,  especially  outside 
major  urban  centres.  Together,  these  elements 
tend  to  discourage  investment,  especially  in  less 
densely populated areas. 

telecom  operators  still  point 
complexity, 

infrastructure. 

especially 

Slovakia  achieved  solid  5G  coverage  across 
the  country.  In  2024,  5G  coverage  reached 
87.94%,  progressing 
the 
national  objective  of  98.5%  coverage  by  2030, 

towards  achieving 

(58)  https://www.mfsr.sk/sk/media/tlacove-spravy/mf-sr-

predstavilo-treti-balik-konsolidacie-verejnych-financii.html. 

(61)  DESI indicators - Digital Decade DESI visualisation tool. 

(59)  European Commission (2025/2026) Single Market and 

Competitiveness Scoreboard – Slovakia. 

(60)  DIGITRANS: Úspešný pilotný projekt otvára dvere k 

digitalizácii desiatok podnikov | Ministerstvo investícií, 
regionálneho rozvoja a informatizácie SR. 

(62)  Act No. 25/2025 Coll., Building Act, March 2025, 25/2025 
Coll. Building Act and on Amendments to Certain Acts 
(Building Act) | Slov-Lex 

(63)  Act No. 297/2025 Coll., amending Act No. 452/2021 Coll. on 

Electronic Communications, 12 November 2025. 

60 

 
 
 
although  this  remained  below  the  EU  average  of 
94.35%.  In  July  2025,  Slovakia  concluded  its 
largest  multi-band  spectrum  auction,  which  is 
expected to underpin a more capacity driven phase 
of 5G deployment, particularly in dense urban and 
high traffic areas. Moreover, two mobile operators 
have 
launched  commercial  5G  stand-alone 
services. Despite the overall good progress in this 
area,  similar 
fixed  broadband  network, 
to  complex 
structural  barriers  exist, 
administrative  procedures  and  rising  construction 
costs. 

linked 

to 

to 

finance 

external 

Access 
remains 
challenging,  particularly  in  terms  of  equity. 
According to the 2025 EIF SME Access to Finance 
(ESAF) Index, the equity sub-index places Slovakia 
fifth  among  the  worst-ranked  EU  countries.  Also, 
venture capital investments in Slovakia are among 
the  least  favourable  in  the  EU,  comprising  only 
0.003%  of  GDP  in  2024  (64).  Although  internal 
finance is the dominant source for investments by 
Slovak  businesses 
(57%  share  of  business 
finance), the share of firms using external finance 
increased in 2025 compared with 2024 and is well 
above the EU average (63% in Slovakia vs 42% in 
the  EU).  Slovak  companies  rely  on  external 
financing  (37%  share  of  business  finance)  more 
(25%).  Many 
than 
programmes  exist  to  ease  businesses’  access  to 
finance,  but  their  structure  is  highly  fragmented, 
making  it  difficult  for  businesses  to  navigate  and 
benefit from them (see Annex 4 and Annex 6). 

counterparts 

their  EU 

Growing  pressures  on  Slovak  companies  are 
reflected  in  an  increasing  number  of  firms 
experiencing  late  payments  and  in  longer 
business-to-business  (B2B)  payment  periods. 
In  2025,  significantly  more  companies  reported 
late  payments  (65)  from  private  entities  (62.4%, 
compared  with  51.2%  in  2024)  –  the  fourth 
highest  share  in  the  EU  and  well  above  the  EU 
(66).  The  reported  average 
average  of  47% 
payment  period  for  B2B  transactions  lengthened 
from  60  days  in  2023  to  62  days  in  2024,  while 
government-to-business 
times 
remained  stable  at  68  days  for  the  third 

(G2B)  payment 

(64)  Invest Europe, Private Equity Activity 2024. 

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

(66)  2025 SAFE survey. 

consecutive  year(67).  An  ongoing  monitoring 
procedure  indicated  payment  delays  exceeding 
those  reported  by  companies,  requiring  active 
engagement  by  the  relevant  authorities.  The 
impact of mandatory instant payments for Slovak 
banks  from  2025  remains  to  be  seen  but  holds 
potential  to  accelerate  business  transfers,  reduce 
state  payout  delays  and  improve  cash  flow  for 
SMEs. 

delays 

undermine 

Chronic 
the 
competitiveness and resilience of businesses 
operating  in  the  health  sector,  particularly 
SMEs.  Focusing  on  payments  from  the  Slovak 
government, in 2024 the EU Court of Justice ruled 
that  Slovakia  had  failed  to  ensure  that  its  public 
healthcare entities effectively comply with the 60-
day  payment  period  established  under  the  Late 
Payment Directive. The ruling concerned excessive 
payment  delays  by  public  hospitals  to  their 
suppliers – an issue that has persisted despite the 
infringement  procedure  first  launched  by  the 
European Commission in 2017. In June 2025, the 
Commission  sent  a  letter  of  formal  notice  to 
Slovakia,  as  the  measures  announced  following 
the ruling had not led to sufficient improvements. 
Ministerial 
legislation 
and 
significantly  limit  the  transfer  of  outstanding 
claims  from  public  healthcare  entities  to  third 
parties.  Reassignments 
provide 
additional  form  of  external  finance  which  is  vital 
for  the  survival  of  businesses.  Practices  whereby 
the  assignment  of  credits  are  systematically 
banned, despite the contractual obligations having 
been fulfilled by the creditor and accepted by the 
debtor,  complicate  the  financial  management  of 
suppliers, and especially SMEs. 

credits 

Slovak 

orders 

of 

Single Market 

Slovakia’s  deep  integration  into  the  Single 
Market  has  substantial  economic  effects. 
Because Slovakia is highly integrated into EU value 
chains,  it  is  the  EU  country  with  the  highest 
spillover-to-GDP  ratio  at  1.8%  (68)(69).  It  also  has 

(67)  EU Payment Observatory - Annual Report, December 2025.  

(68)  European Commission, Report on the Implementation of the 

Recovery and Resilience Facility, October 2025. 

(69)  Member States that are highly integrated in EU value chains 
tend to experience the largest spillovers relative to the size 
of their economy. 

61 

 
 
 
the  highest  integration  rate  in  the  EU  for  goods: 
the trade volume of goods represented 55% of its 
GDP  in  2024  (compared  with  the  EU  average  of 
18%).  Slovak  businesses  demonstrate  strong 
export  orientation  (both  within  and  beyond  the 
Single  Market).  82%  of  Slovak  firms  engage  in 
international  trade,  especially  in  manufacturing, 
well  above  the  EU  average  (66%)  (70).  While 
exports to markets outside the EU weakened (due 
to US tariffs and loss of  market shares in China), 
exports  to  EU  countries  showed  resilience  and 
grew  slightly  in  2025  (71).  This  resilience  was 
supported, except in car exports, by record growth 
in  arms  and  ammunition  exports  –  a  sector  that 
has  been  expanding  rapidly  in  recent  years. 
Germany remains the dominant destination (more 
than  21%  of  exports),  followed  by  neighbouring 
countries (Czechia, Poland and Hungary). While this 
reliance  confirms  Slovakia’s  position  as  a 
manufacturing  hub  within  the  Single  Market  – 
exporting  mainly  vehicles,  car  parts,  tires  and 
electronics  –  it  simultaneously  heightens  the 
economy’s vulnerability to external shocks, such as 
a  slowdown  in  Germany  and  fluctuations  in  EU 
demand,  given  its  high  export  dependence  and 
concentration on a single key market. Cross-border 
service  provision  is  also  burdened  by  posting  and 
social security coordination requirements, including 
advance  filing  for  PD  A1  applications,  prior 
notifications  and  significant  delays  in  processing 
(72). 

is  open  with  regard  to 
While  Slovakia 
services trade, it also has one of the highest 
numbers  of  regulated  professions.  The  2024 
OECD  Services  Trade  Restrictiveness  Index  (73) 
indicates a relatively open regulatory environment 
for services trade (74). However, conditions for the 
temporary  entry  of  contractual  service  suppliers 
remain  more  restrictive  than  international  best 
practices.  Accounting  and  auditing  services 
represent the most open sector, while engineering 
services  face  the  highest  restrictions.  Despite 

(70)  European Investment Bank, 2025, EIB investment survey. 
(71)  October 2025’s number. 

(72)  Sociálna poisťovňa (Social Insurance Agency of the Slovak 
Republic) (n.d.). Available at: https://socpoist.sk/en/how-
apply-portable-document-a1-pd-a1-work-eu-eea-
switzerland-and-united-kingdom-great-britain-and (Accessed 
16 March 2026). 

(73)  OECD Services trade restrictiveness index, February 2025. 

74)  OECD Services trade restrictiveness index, February 2025. 

en"Single market strategy. 

skilled  worker  shortages,  Slovakia  regulates  288 
professions  –  the  fourth  highest  reported  number 
of regulated professions in the EU (75) (EU average: 
210).  The  Product  Market Regulation  indicator (76) 
highlights  ongoing  restrictions  in  the  form  of 
administrative requirements for new firms. 

Regulatory and administrative barriers to the 
Single  Market  remain  in  Slovakia,  affecting 
the  cross-border  provision  of  services  and 
the freedom of establishment. For example, in 
services, road freight operators face excessive and 
regionally fragmented national driving bans under 
Act  No  8/2009  on  Road  Traffic,  which  restrict  the 
circulation of heavy goods vehicles on motorways, 
expressways  and  class 
roads,  potentially 
logistics  planning  and 
disrupting  cross-border 
delivery schedules (77). In addition, the retail sector 
remains subject to restrictive national  rules under 
Act  No  91/2019  on  Unfair  Conditions  in  the  Food 
Trade,  including  a  broad  clause  on  unfair  terms 
and limits on certain service payments, which can 
require  retailers  active  across  several  Member 
States 
contractual  arrangements 
specifically for the Slovak market (78).  

to  adapt 

I 

(0.5%)  and  conformity 

Slovakia  fares  well  with  respect  to  the 
implementation  of  Single  Market  law.  Low 
(0.8%) 
transposition 
deficits in 2025  – compared  with 1.1% of the EU 
average  for  both  indicators  –  signal  effective 
integration  of  EU  directives  into  national  law  (79). 
In 2025,  the  Slovak  SOLVIT  centre  resolved 92% 
of the cases it handled as lead centre (EU average 
84.6%).  Opportunities  arise  from  addressing 
pending infringements to sustain this momentum. 

(75)  European Commission, Regulated Profession Database. 

(76)  2023-2024 OECD Product Market Regulation indicator. 

(77)  Slovak Republic (2009) Act No 8/2009 on Road Traffic 

(Zákon č. 8/2009 Z. z. o cestnej premávke), §39. Available at: 
https://www.slov-lex.sk/ezbierky/pravne-
predpisy/SK/ZZ/2009/8/. 

(78)  Slovak Republic (2019) Act No 91/2019 on Unfair Conditions 
in the Food Trade (Zákon č. 91/2019 Z. z. o neprimeraných 
podmienkach v obchode s potravinami). Available at: 
https://www.slov-lex.sk/ezbierky-fe/pravne-
predpisy/SK/ZZ/2019/91/vyhlasene_znenie.html. 
EuroCommerce (2025) Single Market Barriers Overview, 
updated 28 January 2025. Available at: 
https://www.eurocommerce.eu/app/uploads/2024/05/single-
market-barriers-overview-updated-28-january-2025.pdf. 
(Accessed 16 March 2026). 

(79)  Part of the barriers highlighted in the 2025 Single Market 

Strategy (‘Terrible Ten’), Single market strategy. 

62 

 
 
 
The  number  of  pending  infringements  is  slightly 
above the EU average (28 in Slovakia vs 25 in the 
EU) but shows a positive trend, as it represents the 
lowest  figure  since  2022.  The  average  time  to 
solve  infringement  proceedings  is  well  below  the 
EU average (39.3 months vs 44.5 months).  

remain  below  EU  mid-ranking thresholds  (27% vs 
6%  in  the  EU  respectively).  Conversely,  the  time 
between  the  deadline  for  receipt  of  offers  (or 
requests  to  participate)  and  the  award  of  the 
contract  amounts  to  101  days,  slowing  contract 
awards and reducing responsiveness. 

Compliance  of  products circulating  in  the 
Single Market (80) is key to ensuring a level-
playing  field  for  law-abiding  companies  and 
the  safety  of  consumers. In Slovakia, 
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 231.8 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 

to 

to 

Act 

and 

aimed 
reduce 

the  Public 
The  2024  amendment 
simplify 
Procurement 
procedures 
administrative 
burdens.  Key  changes  included  the  merger  of 
below-threshold  and  low-value  contracts  and  an 
increase  of  the  threshold  for  mandatory  prior 
publication  from  EUR 10 000  to  EUR 50 000.  The 
reform  has  shifted  transparency  towards  an 
ex post  focus,  with  reduced  transparency  at  the 
pre-award stage for contracts awarded below this 
threshold  (82)  (2025  recommendation  on  ensuring 
transparency 
public 
procurement  processes).  While  initially  criticised 
for potential risks to transparency, these concerns 
have not materialised, as there is an obligation to 
invite at least three economic operators to tender 
and voluntary prior publication remains common. 

competition 

and 

in 

reforms 

to  strengthen 

Procurement  practices  continue  to  show 
some  weaknesses  in  conducting  efficient 
procedures, 
limiting  economic  operators’ 
willingness and ability to participate in public 
procurement,  while 
insufficient  use  of 
quality-related  and  life-cycle  cost  criteria 
persists.  Although  Slovakia  has  undertaken 
its  public 
numerous 
procurement practices, the use of the lowest-price 
award  criterion 
remains  predominant,  being 
applied  in  90%  of  procedures  in  2025  (despite  a 
declining  trend  over  recent  years),  compared  with 
53%  at  EU  level(81)  (2025  CSR  on  increasing  the 
use of quality-related and life-cycle cost criteria in 
public procurement operations). A strong focus on 
price  may  discourage  participation  by  companies 
competing  on  quality  and  innovation,  reduce  the 
number  of  bidders,  and  increase  the  risk  of 
abnormally low tenders. 

in  2015, 

leading  to 

In  Slovakia,  the  Public  Procurement  Act  has 
been  amended  with  unusual  frequency  since 
legal 
its  adoption 
uncertainty  for  both  contracting  authorities 
and  economic  operators.  Changes  were 
introduced  almost  every  year,  i.e.  amendments 
were  adopted  in  2018,  2019,  2020,  2021,  2022 
and  2024  and  another  set  of  changes  is  planned 
for 2026 as part of continuing reforms. This level 
of legislative instability is relatively high compared 
with  many  other  EU  Member  States.  Frequent 
amendments  complicate  the  interpretation  and 
application  of  the  rules,  increase  administrative 
and  compliance  costs,  and  require  continuous 
adaptation  of  procurement  practices.  As  a  result, 
procedures  tend  to  be  slower  and  more  risk-
the  overall 
averse,  ultimately  undermining 
efficiency  and  predictability  of 
the  public 
procurement system. 

Public  procurement  procedures  are  on 
average  longer  than  in  the  EU.  Concerning 
competition  in public procurement markets,  single 
bidding  (25%)  and  direct  award  (3%)  indicators 

The public procurement landscape in Slovakia 
is  highly  fragmented,  reflecting  the  large 
number  of  contracting  authorities,  including 
almost 3 000 cities and small municipalities. 

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

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

(81)  Typical (mid-ranking) EU country. 

(82)  Threshold for obligatory publication of contract notice in the 
national journal (in the case of below-threshold contracts) is 
lower (stricter) in the case of below-threshold contracts 
financed by EU funds. 

63 

 
 
 
This  fragmentation  limits  economies  of  scale  and 
contributes  to  uneven  levels  of  expertise  and 
capacity  among  procurers,  particularly  at  local 
level. As a result, procurement processes are often 
less  professionalised  and  more  administratively 
burdensome.  Greater  centralisation  or  increased 
use of joint (that is largely underused) and central 
purchasing  mechanisms  could  help  strengthen 
professional  capacity, 
improve  efficiency  and 
ensure more consistent application of procurement 
rules across the system. 

all 

and 

stronger 

fragmented 

fragmentation  underscores 

e-procurement 
Slovakia’s 
landscape  and  data  quality  issues  highlight 
the need for interoperable systems, common 
standards 
data 
governance. Given  Slovakia’s  decentralised  e-
procurement  landscape,  with between  12  and  20 
separate  procurement  services in  operation  (83), 
economic  operators  must  use  several  systems  to 
procedures, 
public procurement 
access 
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  evidence.  The  country  has  not  yet 
established a service to monitor procurement data, 
resulting 
quality, 
issues  with 
incompleteness  and  duplication. Therefore, the 
Slovak  system  would benefit from a  dedicated 
public  procurement  data  collection  and  analysis 
service within  the  government to  support  data-
driven oversight of the procurement life cycle (84). 

data 

and 

the 

in 

In  Slovakia,  increased  attention  has  been 
directed  towards  ensuring  the  integrity  of 
public  procurement  procedures  and  the 
effective  use  of  both  European  and  national 
public  resources.  Recent  controversial  tenders 
have  underscored  the  importance  of  the  Public 
Procurement Office’s (PPO) authority to initiate ex 
officio proceedings, enabling timely intervention in 
situations 
that  may  undermine  competition, 
transparency  or  value  for  money.  Strengthening 
the  PPO’s  human  resources  capacity  appears  to 

(83)  As reported in the e-procurement matrix. 

(84)  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. 

support  improvements  in  internal  processes  as 
well  as  in  the  quality  and  timeliness  of  checks 
conducted  under the implementation of EU funds. 
These  developments  are  closely 
to 
maintaining  trust  among  economic  operators  and 
accelerating  the  efficient  delivery  of  high-quality 
public projects. 

linked 

Businesses’  views  on  corruption  risks  in 
public  procurement  are  above  the  EU 
average.  In  Slovakia,  81%  of  companies  (EU 
average: 58%)  consider tailor-made specifications 
for  particular  companies  in  public  procurement 
procedures  and  81%  (EU  average:  51%)  collusive 
bidding  to  be  a  ‘very’  or  ‘fairly  widespread’ 
practice.  Among  companies  that  have  experience 
of  and  have  participated  in  a  public  procurement 
that  corruption  has 
procedure,  49% 
think 
prevented  them  from  winning  a  contract 
in 
practice (EU average: 25%) (85). 31% of companies 
perceive  the  level  of  independence  of  the  public 
procurement review body (the Public Procurement 
Office)  to  be  very  or  fairly  good  when  it  is 
reviewing public procurement cases (86). 

on 

unitary 

cooperation’ 

Slovakia  remains  outside  the  Unitary  Patent 
(UP) system. Although Slovakia participates in the 
‘enhanced 
patent 
protection  and  has  already  signed  the  Unified 
Patent Court Agreement, it  is one of few Member 
States  that  has  not  yet  ratified  it.  The  unitary 
patent therefore does not cover Slovakia. This has 
the  following  consequences:  firstly,  Slovak  and 
non-Slovak  companies  remain  burdened  by  the 
significant  administrative 
costs  of  national 
validation  and  maintenance  fees  to  obtain  patent 
protection  in  Slovakia.  Secondly,  the  enforcement 
of  European  patents  in  Slovakia  can  only  take 
place  before  national  courts,  without  benefiting 
from the advantages offered by the Unified Patent 
Court  in  terms  of  centralised  litigation.  For  all 
these  reasons,  by  refraining  from  joining  the  UP 
system,  Slovakia  may  be  less  attractive,  in  terms 
of  innovation  support,  than  those  Member  States 
already  participating  in  that  system.  Finally,  the 
fact that several Member States do not participate 
in  the  UP  system  weakens  the  Single  Market, 
making  the  EU  less  attractive  for  inventors  and 
innovative entities. 

(85)  Flash Eurobarometer 557, p. 133. 

(86)  Justice Scoreboard (2025), p. 53; Flash Eurobarometer 555, 

p. 39. 

64 

 
 
 
National  Standardisation  Bodies  (NSBs)  are 
central  to  ensuring  that  the  European 
Standardisation System operates effectively. 
They  also  contribute  to  removing  structural 
barriers,  such  as  the  “Terrible  Ten”,  that  continue 
to limit the full potential of the Single Market and 
the  competitiveness  of  EU  industry.  However, 
empirical  evidence  suggests  that  Slovak  Office  of 
Standards,  Metrology  and  Testing  face  persistent 
resource  constraints,  which  risk  slowing  down 
standardisation processes and limiting stakeholder 
participation.  There  is  a  need  to  strengthen  both 
the financial and human capacity of Slovak Office 
of  Standards,  Metrology  and  Testing.  Without 
targeted  investment  in  capacity  building  of  its 
NBS, 
in 
standardisation,  which  could  weaken  its  industrial 
competitiveness. 

Slovakia 

behind 

falling 

risks 

Industry and economic security 

Slovak  industry  –  facing  one  of  its  most 
profound  transformations 
in  decades  – 
experienced  a  difficult  year  in  2025.  As  the 
economy’s largest sector  by weight (17% of total 
added  value)  (87),  it  is  also  approximately  40% 
more  energy-intensive  than  the  EU  average  per 
unit of gross value added (88). Further exacerbated 
by  trade  uncertainty,  energy-intensive  industry 
continued  to  struggle  with  expensive  energy 
supply,  while 
industry  faced 
the  electronics 
cheaper  Asian 
competition.  Slovakia’s  RRP 
addresses green industrial transformation through 
several  measures  supporting  energy  savings, 
innovation, 
and 
renewables.  Slovakia  has  the  highest  labour  cost 
and  corporate  tax  rate  among  neighbouring 
countries.  Electricity  prices  for  Slovak  businesses 
were  among  the  highest  in  the  EU  (around 
in  H12025  vs  EU  average 
EUR 0.20/kWh 
(89).  Slovak  economic  growth 
EUR 0.15/kWh) 
slowed  as  industrial  production  declined  by  3.1% 
year-on-year in 2025 (90) (see Annex 9). 

decarbonisation 

industry 

Slovakia’s automotive sector – a cornerstone 
of  the  national  economy  –  demonstrated 
resilience  amid  European  challenges.  The 
automotive 
industry  accounts  for  49.5%  of 
industrial  revenues,  contributes  43.1%  to  exports, 
and  directly  or  indirectly  provides  jobs  for  more 
than  244 000  people  (91).  It  maintained  strong 
production  performance  in  2025,  with  a  1.5% 
largest  car 
increase.  While  the 
year-on-year 
manufacturers saw their profits rise in 2024 (92) – 
thanks  to  lower  production  costs  compared  with 
western  European  competitors  – 
the  dense 
network  of  Slovak  parts  suppliers  faced  bigger 
problems.  Large  automotive  suppliers  maintained 
their  revenues  in  2024  but  not  their  profits,  with 
some also resorting to lay-offs, as they supply not 
only  Slovak  but  also  Western  carmakers  facing 
sharper  demand  drops.  However,  the  sector’s 
resilience  is  not  expected  to  persist,  as  industry 
forecasts point to stagnating car production in the 
coming years, despite the planned launch of a new 
carmaker’s operations in 2027. The government is 
determined  to  support  sector  transformation  and 
held  talks  with  automotive  representatives  – 
resulting in a plan to allocate EUR 1.5 billion in EU 
funds  (93).  The  support  from  the  plan  –  financed 
from  EU  funding  –  focuses  on  decarbonisation, 
simplified 
rules, 
autonomous vehicle testing sites, expanded waste 
processing  capacity  and  procurement  of  low-
emission vehicles. 

investment 

assistance 

A  clear 
industrial  strategy  could  help 
businesses  navigate  new  economic  and 
geopolitical  challenges.  One  measure  included 
fiscal-
in  Slovakia’s  national  medium-term 
structural  plan is the preparation of the industrial 
strategy for 2027-2035. This aims to analyse the 
potential, needs and challenges of Slovak industry 
to build a sustainable and resilient industrial base. 
Discussions  on  the  strategy  are  ongoing,  but  no 
concrete  output  has  yet  materialised.  While  there 
is a stated ambition to diversify the economy, the 
specific  approach  has  yet  to  be  developed. 
Potential  areas  of  development  include  hydrogen, 
semiconductors, 
engineering, 
cybersecurity,  space  technology  and  AI  robotics. 

electrical 

(87)  Statistical Office of the Slovak Republic, September 2025. 

(88)  UniCredit Bank, Weekly Notes, 09/2026. 

(91)  Association of the Automotive Industry of the Slovak 

Republic, April 2026. 

(92)  https://finstat.sk/. 

(89)  Eurostat - Electricity prices for non-household consumers. 

(90)  Statistical Office of the Slovak Republic, February 2026. 

(93)  Vláda sa sústredí na päť kľúčových oblastí pre podporu 
automobilového priemyslu | Tlačové správy | MHSR. 

65 

 
 
 
recycled  materials  in  overall  material  use  rose 
from  10.6%  in  2023  to  12.2%  in  2024,  reaching 
the EU average. Slovakia produces materials such 
as  silicon  metal,  coking  coal  and  aluminium  but 
relies  heavily  on  imported  CRMs  for  green  and 
digital  transitions.  The  main  CRM  imported  from 
non-EU  countries  – in terms of trade value  – was 
coking  coal  from  the  USA,  Australia  and  Canada. 
Slovakia’s 
Index  ranked 
among  the  EU’s  highest  in  2025,  heightening 
supply chain risks, environmental degradation and 
social  concerns  that  undermine  sustainability  and 
resilience. In 2024, 44.5% of material inputs were 
imported – well above the EU average of 22.4% – 
leaving 
supply 
country  vulnerable 
disruptions. 

Import  Concentration 

the 

to 

Slovakia’s  reserves  of  the  strategic  raw 
material  magnesite  and  the  new  strategic 
investment  in  a  battery  plant  offer  a  major 
opportunity for its industry. Slovakia is the EU’s 
leading  producer  of  magnesite  and  magnesium 
compounds.  The  construction  of  the  new  battery 
cell  production  plant  in  Šurany  was  officially 
launched in 2025, with full production expected to 
start  in  2027  and  an  initial  capacity  of  20 
gigawatt-hours.  Despite  this  positive  progress, 
heavy reliance on imports of other CRMs heightens 
supply chain risks for the manufacturing sector. To 
address  this,  the  government  approved  the  draft 
national  programme  for the  exploration  of  critical 
minerals  in  2025,  which  lays  down  29  tasks  to 
enhance  knowledge  of  domestic mineral  deposits. 
An  amendment  to  the  Mining  Act  is  also  being 
prepared,  extending  not  only  to  CRMs  but  also  to 
key 
raw  materials 
stakeholders  will 
to 
ensuring  balanced 
regulation,  environmental 
protection  and  sustainable  development  of 
Slovakia’s mineral resources. 

therefore  be  essential 

Involving 

general. 

in 

framework 

The  2025  recommendation  on  strengthening  the 
green 
legislative 
technologies 
promote 
investments to advance industrial competitiveness 
and  economic  diversification  also  called  for 
measures in this area. 

support 
and 

products, 

and 

to 

Slovakia’s clean tech manufacturing remains 
limited  compared  with  front-runner  EU 
countries,  but  shows  potential  in  areas  tied 
to its  automotive  strengths,  such as  battery 
components  and  heat  pumps  for  industrial 
decarbonisation. The  country  benefits  from  EU 
funding  and  national  plans  targeting  renewable 
hydrogen  production,  alongside  emerging  solar 
photovoltaic  assembly  and  electric-vehicle-related 
supply  chains.  The  national  energy  and  climate 
plan  highlights  a  simplified  regulatory  framework 
for 
renewable 
procedures 
acceleration  areas  and 
the  elimination  of 
like 
for 
permitting 
geothermal  energy.  However,  it  does  not  specify 
whether  this  simplified  permitting  extends  to 
manufacturing  facilities  for  clean  technologies  or 
whether  access  to  national  funding  will  be 
streamlined  where  needed.  The  clean  technology 
sector  constitutes  a  modest  component  of  the 
Slovak  labour  market,  employing  around  6 000 
workers  in  2023,  representing  0.23%  of  the  total 
workforce (94). 

technologies 

permitting 

hurdles 

in 

and 

in 
Slovakia  could  make  more  progress 
implementing  the  Net-Zero 
Industry  Act 
(NZIA). Slovakia  still  has  not  designated  a  single 
point  of  contact,  which  is  crucial  for  streamlining 
among 
communication 
stakeholders.  For  the  moment,  Slovakia  has  not 
confirmed any net-zero strategic projects and has 
not established a national contact point to process 
applications that could facilitate the advancement 
of  those  projects.  Finally,  Slovakia  has  not 
expressed  an  interest  in  the  acceleration  valleys 
described in the NZIA regulation. 

coordination 

management, 

While  the  country  has  improved  circular 
remains 
material 
imports  of 
substantially  dependent  on 
critical raw materials (CRMs). Notable gains in 
sustainable  material  use  have 
lifted  circular 
material  rates  to  the  EU  average.  The  share  of 

it 

(94)  Bruegel Clean Tech Tracker (data extracted in November 

2025). 

66 

 
 
 
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. 

67 

POLICY AREA20212022202320242025EU-27 average80.076.279.880.581.2100.011.512.312.812.8-12.63.03.13.63.6-3.9Business environment and simplification22.414.119.227.325.034.00.340.330.500.36-0.430.050.050.070.07-0.1912.812.115.513.017.517.410.212.917.914.614.613.6from private entities in the previous or current quarter---51.262.447.1from public entities in the previous or current quarter---14.014.915.966.573.865.962.462.240.70.0440.0440.0440.0440.0440.0502530322425273534361.40.90.60.70.511.31.41.31.10.81.110010010095.59284.62729313128250.13440.26300.27870.21040.19900.146229.526.926.5--32.717.417.517.018.1-25.245.245.843.844.5-22.410.411.510.612.2-12.2Operational cleantech manufacturing capacity in 20259 - Solar PV (c: cell, w: wafer, M:module), GW0.15 (m) - Electrolyzer, GW- - Heat pump assembly 0.4262 - Battery, GW0.3Energy-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 rate1Industry 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 proceedings8Impact 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, %5SlovakiaINDICATOR 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)1 
 
 
   
 
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. 

Investment  Survey,  66%  of 

profile  of  the  corporate  sector.  According  to  the 
2024  EIB 
the 
investment  needs  of  Slovak  companies  are 
covered by internal funding, which matches the EU 
average  (95).  According  to  Eurostat,  when  looking 
at  external  funding,  bank  loans  accounted  for 
40.1%  of  NFCs’  financing  (EU  average:  26.9%)  at 
end-2024.  Market  based  instruments  such  as 
listed shares and/or corporate bonds accounted for 
a  low  2.5%  of  total  NFC  financing  (EU  average: 
23.5%)  at  end-2024,  which  underlines  the  fact 
that  Slovakia’s  capital  market  is  underdeveloped. 
The  overall  level  of  NFC  funding  in  Slovakia  was 
equivalent to 92.6% of GDP at end-2024, which is 
lower  than  the  EU  average  of 
substantially 
226.2% of GDP (see Graph A6.1).  

Graph A6.1: Composition of non-financial 
corporations’ funding 

to 

capital  markets 

Slovakia  is  performing  satisfactorily  in  terms  of 
progress  towards  the  policy  goals  of  the  Savings 
and  Investment  Union  (see  Table  A6.1).  Slovak 
companies  largely  rely  on  internal  funding  or 
traditional  bank  loans  to  finance  their  investment 
needs.  Domestic 
remain 
underdeveloped,  and  debt  markets  channel 
savings  mostly 
the  government.  Slovak 
households’  rather  limited  financial  assets  are 
conservatively  invested  in  the  capital  market.  The 
Slovak  banking  sector  remains  robust.  Bank 
lending  to  households  has  been  more  dynamic 
than lending to companies. Because the insurance 
sector  is  very  small  and  focused  on  non-life 
insurance, its capacity to invest in the economy is 
limited. The fund management sector is small yet 
growing  and  increasingly  investing  in  investment 
funds  and  equity  (in  addition  to  bonds).  The 
pension funds sector, which was reformed in 2023 
include  mandatory  auto-enrolment  and 
to 
lifecycle-based  default 
in 
pillar  2,  has  the  potential  to  increasingly  channel 
funds  to  capital  markets  and  the  economy.  The 
venture capital and private equity ecosystems are 
too underdeveloped to meet the financing needs of 
innovative firms. 

investment  strategy 

Business landscape and company 
funding 

Slovak  companies  largely  rely  on  internal 
financing or traditional bank funding. The size 
structure of local non-financial corporations (NFCs) 
is  tilted  towards  micro  firms  and  SMEs  (see  also 
Annex  5).  This  has  implications  for  the  funding 

Source: Eurostat. End-2024. 

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

68 

050100150200250SKEU% of GDPLoansTrade credit and advancesBondsListed sharesUnlisted sharesOther equityMain featuresRelative EU positioningAssets at 16.2% of GDP (32.3% in the EU)10-year real return of -0.7 (1.4% in the EU)The low level of pension assets yield a low real return (for comparative purposes this table uses OECD data of 2024). In the meantime, there has been a pension system reform in May 2023 that lead to bette restimated returns.EUR 19 969 per capita (EUR 85 090 in the EU)o/w 5.0% in listed shares and bonds (7.6% in the EU)o/w 12.4% in investment funds (11.0% in the EU)o/w 3.3% in life insurance (13.4% in the EU)o/w 19.5% in  pension claims (13.6% in the EU)A modest share of households' financial assets is invested in equity and in capital markets. A savings and investment framework known as Dlhodobé Investičné Sporenie (DIS) is available.VC at 0.017% of GDP (0.064% in the EU)PE at 0.029% of GDP (0.487% in the EU)Low venture capital and very low private equity investments.Capital gains on assets like shares held over a year are often 0% tax (exempt if not business-related), while dividends are taxed at 7% (for profits from 2025 onwards) or 10% (for 2024 profits).Preferential tax treatment for equity investments1-34-1011-1718-2425-27Colours 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 
 
 
   
 
 
 
 
   
 
Size and structure of the financial 
sector 

Graph A6.2: Capital markets and financial 
intermediaries 

sector 

financial 

remains 
Slovakia’s 
dominated  by  banks.  The  banking  sector 
dominates  financial  services,  with  banking  assets 
equivalent to  95%  of  GDP  in  Q3-2025,  far below 
the  EU  average  of  246.1%  but  well  above  any 
other sector of the domestic financial system. The 
Slovak banking sector is highly concentrated, with 
the  top  five  lenders  owning  75.6%  of  total  bank 
assets (EU average: 50.9%), while  foreign entities 
controlled  87.4%  of  the  total  bank  assets  in  Q2-
2025.  Pension  fund  assets  amounted  to  about 
17% of GDP in Q3-2025 (EU average: 23%), which 
makes  it  the  second  largest  segment  of  the 
financial  system (96).  The  investment  fund  sector 
was  equivalent  to  9.1%  of  GDP  in  Q3-2025.  The 
insurance  sector  was  equivalent  to  just  4.1%  of 
GDP  in  Q3-2025  (EU  average:  53.9%)  (see  Graph 
A6.2).  

The Slovak capital market is underdeveloped. 
The  Bratislava  Stock  Exchange  (BSSE)  is  the 
primary  platform  for  equity  trading  in  Slovakia. 
The  market  capitalisation  of  listed  companies 
stood  at  just  1.7%  of  GDP  in  Q3-2025  (EU 
average:  69.9%).  NFCs  accounted  for  only  35.3% 
of  that  capitalisation  at  end-2024.  Initial  Public 
Offerings  (IPOs)  are  virtually  non-existent,  and 
trading volumes are extremely low and dominated 
by  bond  transactions.  In  2024,  Gevorkyan  (a 
Slovak  manufacture  of  metallurgy  products) 
secured a dual listing on BSSE after being listed on 
the prime market of the Prague Stock Exchange in 
2023.  

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

to 

some 

steps 

support 

Public  and  private  stakeholders  have  been 
taking 
the 
development  of  the  capital  market.  The  April 
2014  concept  report  for  the  development  of  the 
capital markets (97) has not been updated since. In 
the  Slovak  Business  Association  also 
2023, 
prepared  an  analysis  on  how 
to  promote 
alternative  forms  of  raising  capital  for  SMEs (98). 
To stimulate regional markets in November 2024, 
eight  central  and  eastern  European  stock 
exchanges 
(Bratislava,  Bucharest,  Budapest, 
Ljubljana,  Skopje,  Sofia,  Warsaw,  and  Zagreb), 
together with the EBRD, signed a memorandum of 
joint 
understanding 
development  of  national  capital  markets  through 
closer  cooperation,  regulatory  alignment,  and 
increased  market  integration.  This  initiative  was 
endorsed by the respective finance ministers with 
an MoU signed in August 2025. In April 2026, the 
respective  regulators  also  signed  a  MoU,  thereby 
bringing all key institutions to this project. 

foster 

(MoU) 

the 

to 

Government  securities  dominate  the  fixed 
income  market,  and  NFCs  barely  raise  any 
funds  on  this  market.  The  outstanding  volume 
of debt securities reached the equivalent of 70.8% 
of  GDP  at  end-2024  (EU  average:  139.8%).  The 
domestic bond market in Slovakia is dominated by 
government securities, which accounted for almost 
70.6%  of  the  total  bonds  as  of  end-2024. 

(96)  The figure on pension funds’ assets (in % of GDP) provided in 
Graph  A6.2  is  based  on  ECB  data  on  pension  funds.  It  is 
therefore different from the figure provided in the first table 
on  the  assets  of  asset-backed  pension  schemes,  which  is 
based on OECD data and includes all pension providers (not 
only pension funds) and public pension reserve funds. 

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

the development of capital market.  

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

through the capital markets.  

69 

Non-financial corporationsFinancial corporationsNon-financial corporationsMFIsInsurance  and pension fundsOther financialsGovernmentMFIsPension fundsInsurance corporationsInvestment funds020406080100120   Listed equity               Bonds                        Assets by sector% of GDP 
 
      
 
Financial 
institutions,  whether  banks  or  not, 
accounted for 20.2% of total debt securities, while 
NFCs  accounted  for  3.1%  of  the  total  debt 
securities.  Debt  securities  are  therefore  not  a 
major source of Slovak NFC funding.  

Households’ participation in capital 
markets 

Slovak  households  manage  their  financial 
assets  in  a  conservative  manner.  Slovak 
households  have  a  low  saving  rate  (8.1%  vs  EU 
average of 14.4% in 2024). On aggregate, Slovak 
households  have  financial  assets  equivalent  to 
83.2%  of  GDP  (EU  average:  212.2%).  Slovak 
households held about half of their assets (49.6%) 
in bank deposits at end-2024 (EU average: 31.6%) 
Around  40.7%  of  households’  financial  assets 
were held in pension and investment funds or held 
directly  in  financial  investment  instruments  (EU 
average:  46.5%)  at  end-2024.  More  specifically, 
Slovak  households  invest  about  23.4%  of  their 
financial  wealth  in  insurance  and  pension  funds 
(EU  average:  27.8%),  12.4%  in  investment  funds 
(EU  average:  11.0%),  4.1%  in  bonds  (EU  average: 
2.8%),  and  0.8%  in  listed  shares  (EU  average: 
4.9%) (see Graph A6.3).  

Financial  literacy  in  Slovakia  has  improved 
over the years. In July 2023, the Eurobarometer 
survey showed that 20% of the Slovak public had 
a  high  level  of  financial  literacy  (vs  18%  for  the 
EU), 63% a medium level (vs 64% for the EU), and 
the remaining 17% a low level (vs 18% for the EU) 
(99).  In  Slovakia,  the  overall  financial  literacy 
indicator, which combines financial knowledge and 
financial  behaviour  indicators,  was,  at  45%,  close 
to  the  EU  average  score  of  45.5% (100).  The 
Ministry  of  Education  adopted 
‘national 
financial literacy standard’ strategy, which entered 
into force in 2017, but has not been updated since. 
This  strategy  focused  on  topics  such  as  financial 
responsibility,  money  protection,  credit  and  debt, 
savings  and  investment,  risk  management  and 

the 

insurance,  etc.  Many  other  activities  aimed  at 
literacy  have  also  been 
increasing  financial 
developed by the National Bank of Slovakia (NBS) 
(101),  the  Finance  Ministry  as  well  as  universities, 
business  entities  and  non-profit  organisations. 
Challenges  remain  given  the  uneven  level  of 
knowledge across different population groups, the 
difficulty  in  applying  theoretical  knowledge  in 
practice,  and  the  growing  complexity  of  financial 
products. 

Graph A6.3: Composition of households’ financial 
assets 

Source: Eurostat. End-2024. 

Recent  policy  initiatives  aim  at  boosting  the 
level  of  retail  investors’  participation  in 
capital  markets.  First,  in  the  first  half  of  2025, 
to familiarise households with direct investment in 
financial instruments, for the first time the Slovak 
government launched government bond issuances 
for  retail  investors  (two-  and  four-year  maturity 
interest 
bonds  with  a  tax-exemption  on  the 
income).  Second,  in  2015  Slovakia  introduced  a 
savings  and 
called 
Dlhodobé  Investičné  Sporenie  (DIS)  that  could 
greatly  benefit  retail  investors (102).  The  DIS  tax 
exempts  investment  income  on  a  variety  of 
financial  instruments  such  as  listed  and  unlisted 
equity, 
instruments,  money  market 
instruments, precious metal certificates, when held 
for  a  minimum  of  15  years  and  for  a  maximum 
annual  amount  of  EUR 6 000  per  person.  Only 
25 500  Slovak  residents  have  opened  a  DIS, 
to 
representing 

investment 

framework 

amounting 

assets 

total 

debt 

(99)  European  Commission,  2023,  Flash  Eurobarometer  Survey  -
Monitoring the level of financial literacy in the EU, p. 17. Sum 
of  financial  knowledge  score  and  financial  behaviour  score 
(with equal weight for each score) (% by country).  

(100) European Commission, 2025, Overview of CMU Indicators, 

Indicator 27. 

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

(102) Commission  Recommendation  of  30.9.2025  on  Increasing 
the  Availability  of  Savings  and  Investment  Accounts  (SIAs) 
with  Simplified  and  Advantageous  Tax  Treatment  and  EC 
SWD 2025, p.21. 

70 

050100150200250020406080100SKEUSKEUper capita (000 EUR) (lhs)% of GDP (rhs)Currency and depositsInsurance and pension fundsInvestment fundsBondsListed sharesUnlisted sharesOther equityHH Debt (liability) 
 
   
 
EUR 103 million  (approximately  0.08%  of  GDP).  
Third,  the  2023  reform  of  pillar  2  introduced 
automatic  enrolment,  and  lowered  management 
fees  for  pillar  3  pensions.  The  tangible  impact  of 
these  initiatives  has  yet  to  materialise,  but  the 
process  of  onboarding  Slovak  households  into 
capital markets is ongoing. 

The banking sector: resilience and 
financing of the economy 

The Slovak banking sector is well capitalised 
and  resilient  and  therefore  not  constrained 
in its role of funding the economy. Key capital 
ratios for the Slovak banking sector are solid and 
above  the  EU  averages,  which  underlines  the 
sector’s  robustness  (see  Table  A6.2).  As  of  Q2-
2025, the aggregate MREL (Minimum Requirement 
for  Own  Funds  and  Eligible  Liabilities)  level  stood 
at  31.6%,  which  is  above  the  required  level  of 
27.4% (103). Profitability, asset quality and liquidity 
the  EU  average. 
indicators  are  also  above 
However,  the  banks’  asset  quality  outlook  is 
subject to increased uncertainty due to the current 
conflict  in  the  Middle  East  and  its  impact  on 
energy prices and economic growth. Regardless of 
the  tax  on  extraordinary  banking  profits (104), 
return  on  equity  stood  at  11.2%,  and  the 
aggregate non-performing loans (NPL) ratio at 2% 
in Q3-2025 (see Table A6.2). As part of the fiscal 
consolidation  measures,  Slovakia  introduced  a 
financial  transaction  tax  with  the  first  taxable 
period  starting  in  April  2025,  targeting  business 
entities (the tax is designed to be a levy on debits 
from  bank  accounts)  (see  Annex  3).  In  terms  of 
liquidity,  the  net  stable  funds  ratio  (NSFR)  was 
131% (exceeding the 100% regulatory minimum), 
while  the  liquidity  coverage  ratio  (LCR)  stood  at 
184% in October 2025 (105). 

Bank lending in Slovakia is driven by loans to 
households. As of November 2025, bank loans to 
households 
(of  which  75%  were  residential 
mortgage loans) were equivalent to 42.6% of GDP, 

(103) EBA, 2025. MREL Dashboard – Q2 2025, p.13. 

(104) ) In 2024, banks paid 30% extraordinary tax on profits in the 
form  of  a  levy.  This  bank  levy  was  then  set  to  fall  5%  per 
year  to  15%  in  2027,  before  being  scheduled  to  be 
eliminated in 2028.  

while the figure for bank loans to NFCs was 18.7% 
of GDP. Mortgage loan growth is supported by the 
fall  in  interest  rates,  a  low  unemployment  rate, 
and  increasing  prices  in  the  housing  market.  The 
mortgage portfolio’s annual growth is expected to 
continue  to  accelerate  and  reach  8–9%  in  spring 
2026,  up  from  6.6%  as  of  September  2025  (106). 
Annual  growth  in  loans  to  NFCs  has  revived 
starting  early  2025  and  stood  at  6.3%  as  of 
September 2025.  

Role of non-bank financial 
intermediaries 

Slovakia’s insurance sector is profitable and 
solvent,  but  very  small  and  focused  on  non-
life insurance. The total assets of Slovak insurers 
were  equivalent  to  just  4%  of  GDP  at  Q2-2025, 
well  below  the  EU  average  of  53.3%  (see  Table 
A6.2). The return on equity (ROE) fell slightly, from 
16.2% in H1-2024 to 15.9% in H1-2025 (107). The 
main  driver  of  profit  growth  was  the  non-life 
underwriting  performance,  with  total  premiums 
increasing by 9.1% year-on-year in H1-2025 (108). 
The Solvency Capital Requirement ratio (SCR) was 
at 185.4% in Q2-2025 (EU average: 246.6%). The 
National Bank of Slovakia concluded from a stress 
test that the vast majority of insurance companies 
were  able  to  cope  with  a  combination  of  several 
adverse  shocks  without  the  SCR  falling  below  the 
required  100%  (109).  The  European  Insurance  and 
Occupational  Pensions  Authority’s  protection  gap 
that  Slovakia  has  a 
assessment 
considerable  insurance  protection  gap  for  floods 
(in particular) and wildfires (110).  

indicates 

Given  its  focus  on  non-life  business  and  its 
associated  liability  structure,  the  Slovak 
insurance sector’s investment  strategies  are 
conservative. Bonds accounted for 36.8% of the 
sector’s  total  assets  in  Q2-2025  (EEA:  around 
(111).  Around  25.2%  of  assets  under 
19%) 

(106) NBS, 2025. Financial Stability Report (Nov 2025). p.17-18. 

(107) NBS, 2025. Financial Stability Report (Nov 2025), p.51. 

(108) NBS, 2025. Financial Stability Report (Nov 2025), p.55-56. 

(109) NBS, 2025. Financial Stability Report (May 2025), p.62. 

(110) EIOPA, 2025. Dashboard on Insurance Protection for Natural 

Catastrophes in a Nutshell. 

(105) NBS, 2025. Macroprudential Commentary, Dec. 2025, p.5. 

(111) EIOPA, 2025. Insurance Statistics (under asset exposures). 

71 

 
 
 
management (AUM) were invested into investment 
funds,  with  around  half  allocated to  equity  funds. 
Corporate  bonds  made  up  around  24%  of  AUM 
whereas equity represented only about 5% of the 
portfolio. Lastly, cash and deposits make up 4.6% 
of the total allocation, mortgages and loans 1.7%, 
and property 2.1% of the total assets.  

The  Slovak  fund  management  industry  is 
quite  small  but  investing  more  and  more  in 
investment  funds  and  equity.  In  Q3-2025,  the 
largest  portion  of  total  assets  was  allocated  to 
investment  funds  (42.3%),  followed  by  stocks 
(24.4%),  bonds  (17.9%),  and  deposits  and  loan 
claims (14.6%) (112). This trend towards investment 
funds  and  equity  investments  may  be  a  result  of 
the  2023  pension  system  reform.  The  sector  has 
the  potential  to  grow  further  as  households 
become  increasingly  aware  of  investment  options 
yielding higher returns than bank deposits. 

funded,  private  pension 

The  Slovak  pension  system  was  reformed 
into a three-pillar system in 2005 (113). Pillar 1 
is  the  public,  mandatory,  pay-as-you-go  (PAYG) 
the  Social 
pension  scheme  administered  by 
Security  Agency.  Pillar 2  is  a  quasi-mandatory, 
scheme (114). 
fully 
Mandatory  auto-enrolments  and  the  lifecycle-
investment  strategy (115)  were 
based  default 
introduced  on  1 May 2023.  Pillar  3  is  an  entirely 
voluntary  supplementary  pension  scheme  (116). 
According  to  the  Slovak  Ministry  of  Labour,  there 
are  currently  2.7  million  participants  in  the  first 
pillar, 2 million participants in the second, and 1.1 
million  participants  in  the  third.  According  to  the 
of 
of 
Slovak 
31 December 2025, around 80% of the volume of 
AUM is part of pillar 2, while the remaining 20% of 
AUM is part of pillar 3 (117). 

Ministry 

Labour, 

as 

(112) ECB, 2025, Euro-Area Investment Funds, Q3-2025.  

(113) Ministry of Finance of the Slovak Republic, 2023. 2024 

Ageing Report Slovak Republic – Country Fiche (1.12.2023). 

(114) Act No 43/2004 on the Old-age Pension Scheme.  

(115) Commission  Recommendation  of  20.11.2025  on  Pension 
tracking  systems,  pension  dashboards  and  auto-enrolment 
final;  Commission  Communication  of 
C(2025)  9300 
20.11.2025  on  Enhancing 
the  EU 
the  capacity  of 
supplementary pension sector to improve retirement income 
and supply long-term capital to the EU economy, COM(2025) 
839 final (also SWD(2025) 367 final). 

(116) Act No 650/2004 on Supplementary Pension Savings. 

(117) According  to  the  Ministry  of  Labour,  the  total  exposure  to 
stocks (whether direct stocks, stock ETFs, or stock indices) for 

72 

into 

As  of  1 May 2023,  there  have  been  changes 
to  the  pillar  2  pension  fund  scheme.  Auto-
enrolment  was  introduced  to  pillar  2  from  May 
2023 onwards for all individuals under 40 entering 
the  workforce.  For  employees  already  in  the 
workforce  before  May  2023  and  under  40, 
enrolment  in  pillar  2  remains  voluntary.  Between 
May  2023  and  October  2025,  approximately 
218 000  individuals  were  ‘automatically  enrolled’ 
in pillar 2 pension funds, and only 5 000 exercised 
their  right  to  optout.  Since  1 May 2023  (118),  new 
employees  automatically  participate 
the 
default  ‘life-cycle  non-guaranteed  passive  index 
fund’  (unless  opted  otherwise)  that  gradually 
adjusts  its  risk  profile  over  a  saver’s  career  and 
age. All participants will gradually move savings to 
‘guaranteed bond funds’ (119) starting from age 50. 
As  of  31 December 2025,  18.7%  of  AUM  is 
invested in guaranteed (bond) funds, while 81.3% 
of  AUM  is  invested  in  non-guaranteed  funds  (the 
estimated  10-year  return  on  assets  is  higher  for 
non-guaranteed funds)  (120). In Slovakia, there are 
five private pension fund management companies 
(PFMC)  in  pillar  2 (121),  offering  17  funds:  five 
guaranteed  bond  funds  and  12  non-guaranteed 
pension  funds  (six  index  funds,  four  stock  funds, 
and  two  mixed  funds  that  allow  a  more  diverse 
risk  profile)  (122).  Members  are  free  to  choose 
between  different  options.  However,  participants 
closer  to  retirement  have limited  access  to  riskier 
funds. Their account records all asset movements 
(e.g.  contributions,  fees  and  transfers).  A  central 
is  being 
tracking  system  for  pension  funds 

the  entire  pension  sector  (pillars  2  and  3)  in  Slovakia  was 
around 75% (EUR 18.1 bn) of the NAV (EUR 24.1 bn) as of 
31 December 2025. 

(118) Between  2012-2023,  employees’  contributions  were  placed 

into a guaranteed-return bond fund.  

(119) There are two types of funds: guaranteed bond funds (mainly 
bond 
funds)  prioritise  capital  protection,  while  non-
guaranteed index funds (equity/index) aim for higher returns.  

(120) The Slovak Ministry of Labour estimates that for pillar 2, as 
of  31 December 2025,  the  10-year  return  for  guaranteed 
funds  was  0.5  %  (NAV-weighted  average),  while  for  non-
guaranteed funds it was 9.9% (NAV-weighted average). 

(121) All PFMCs are legally bound to offer two types of funds: (a) a 
guaranteed bond fund, and (b) a non-guaranteed index fund. 
The law allows PFMCs to create an arbitrary number of other 
funds. 

(122) NBS,  Financial  Entities  Register,  Pension  Savings  Schemes. 
Also,  OECD,  2025.  Annual  Survey  on  Investment  Regulation 
of Pension Providers (2025). P. 51-54; 172-175, 512-513. 

 
 
 
 
considered (123),  while  the  PFMCs  have  a  legal 
obligation to send savers a statement once a year 
(current  and 
forecast).  Mandatory  pension 
contributions  and  benefits  to/from  the  second 
pillar are tax exempt (124). 

Voluntary  pension  funds  (pillar  3)  are  small 
but  growing.  Four  supplementary  pension 
companies  offer  voluntary  pension  funds.  The 
supplementary  pension  funds  regime  (pillar  3) 
offers  flexibility  in  terms  of  switching  between 
funds  and,  compared  with  pillar  2,  has  a  higher 
proportion  of  assets  invested  in  riskier,  growth-
oriented funds, which has resulted in the growth of 
such  funds  (125).  Employee  contributions  are  tax 
deductible up to EUR 180 per year while employer 
contributions are taxed at a marginal rate (of up to 
6%) of an employee’s gross salary (126). Returns on 
investment are taxed on withdrawal at a 19% rate. 
online 
Voluntary 
about 
access 
applications 
agreements, savings, and the services provided.  

offer 
information 

pension 
to 

providers 

product 

The  pan-European  personal  pension  product 
is  a  voluntary  EU-wide  personal 
(PEPP) 
complements 
that 
investment 
national  products,  and 
is  portable 
it 
throughout  the  EU.  The  Slovak  fintech  broker 
Finax is the first European company to be licensed 
to offer PEPPs (127) to Czechia, Croatia, Poland and 
Slovakia. 

The  second  and  third  pillar  pension  funds 
invest  more  in  investment  funds  than  in 
direct holdings of securities. In terms of asset 
allocation, investment funds accounted  for 73.1% 
of  total  assets  held  by  pension  funds (128)  as  of 
Q3-2025. Debt securities were the second largest 
asset category at 21.4%, while equities came in at 
2% of the total. A maximum of 5% net asset value 

(123) Commission  Recommendation  of  20.11.2025  on  Pension 
tracking  systems,  pension  dashboards  and  auto-enrolment 
C(2025) 9300 final. 

(124) Ministry  of  Finance  of  Slovak  Republic,  2023.  2024  Ageing 
Report  Slovak  Republic  –  Country  Fiche  (1.12.2023).,  p.  7; 
OECD,  2024.  Annual  Survey  on  Financial  Incentives  for 
retirement savings, Dec. 2024. P. 81-82. 

(125) NBS, 2025. Financial Stability Report (May 2025), p.59. 

(126) Max-Planck-Institute (2020). The Slovak Old Age Security 

System in 2020. 

(127) EIOPA, 2025, PEPP. 

(NAV)  of  assets  may  be  invested  in  alternative 
investment  funds,  however,  such  investment  is 
limited  to  specific  domestic  infrastructure  (in 
effect,  traditional  VC/PE  funds  are  excluded).  The 
recent  reform  of  pillar  2  resulted  in  a  sizeable 
transfer of holdings from bonds to equity-oriented 
funds  and 
index  pension  funds  with  higher 
risk/return profiles (129).  

Venture capital ecosystem 

The  Slovak  VC  and  PE  ecosystems  remain 
significantly  underdeveloped.  Venture  capital 
(VC)  and  private  equity  (PE) 
in 
Slovakia  are  marginal,  respectively  equivalent  to 
just  0.017%  and  0.029%  of  GDP  in  2022-2024, 
well  below  the  EU  averages  of  0.064%  and 
0.487% (130), (131) (see Annex 4 for more details). 

investments 

Despite public initiatives to facilitate access 
to  capital  for 
innovative  firms,  funding 
opportunities  remain  limited,  in  particular  in 
the  scale-up  phase.  Established  in  2014,  the 
Slovak Investment Holding (SIH) (100% owned by 
the  Slovak  Guarantee  and  Development  Bank 
(primarily  European 
funds 
(SZRD))  manages 
Structural  Investment  Funds  (ESIF))  such  as  the 
Venture  to  Future  Fund  to  facilitate  access  to 
funding  for  start-ups  and  innovative  SMEs  in 
Slovakia.  According  to  SIH,  early-stage  start-ups 
primarily  rely  on  public  instruments  (e.g.  grants, 
pre-seed 
acceleration 
programmes), while companies seeking later stage 
funding rely mostly on foreign capital. In addition, 
according  to  SIH,  several  Slovak  scale-ups  in  its 
portfolio  already  relocated  to  the  US,  Czechia, 
Norway or Poland to get access to larger and more 
liquid  capital  markets  and  more  investor-friendly 
legal frameworks, which suggests a financing gap 
for promising early-stage innovative firms seeking 
to  scale  up.  Slovakia  does  not  have  a  dedicated 
VC/PE tax regime.  

equity, 

seed 

and 

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

(130) European Commission, 2025, Overview of CMU Indicators, 

Indicator 16. 

(131) European Commission, 2025, Overview of CMU Indicators, 

(128) ECB, 2025, Euro-Area Pension Funds, Q2-2025. 

Indicator 11. 

73 

 
 
 
 
Table A6.2:  Financial sector indicators 

(1) Annualised data. EU data for credit growth and pension funds refer to the EA average. 
Source: ECB, Eurostat, European Insurance and Occupational Pensions Authority, DG FISMA CMU dashboard, AMECO. 

74 

20182019202020212022202320242025-Q3EUTotal assets of MFIs, % of GDP90.891.599.2104.6103.799.396.395.0246.1Common equity Tier 1 ratio15.515.816.816.716.817.317.418.316.8Total capital adequacy ratio17.818.019.319.419.520.119.820.520.2Overall NPL ratio, % of all loans3.22.92.52.01.71.81.92.01.9NPL ratio, loans to NFCs4.03.53.42.82.32.52.52.43.5NPL ratio, loans to HHs3.43.02.62.21.81.91.92.02.1Return on equity ratio19.38.35.38.49.411.510.211.29.6Loans to NFCs, % of GDP20.520.320.820.020.818.817.518.029.3Loans to HHs, % of GDP40.541.744.444.745.742.441.942.043.6NFC credit growth rate, %6.44.24.36.09.82.8-0.97.42.5HH credit growth rate, %10.78.56.69.110.03.84.06.62.6Stock market capitalisation, % of GDP5.32.92.82.01.81.51.71.769.9Initial public offerings, % of GDP0.000.000.000.000.000.000.00-0.06Market funding ratio28.427.524.723.521.720.520.8-49.7Private equity, % of GDP0.0190.0250.0310.0380.0330.0370.029-0.487Venture capital, % of GDP0.0080.0100.0160.0210.0190.0170.017-0.064Financial literacy, composite index-----45.0--45.5Bonds, % of HHs' financial assets3.73.93.93.33.74.14.1-2.8Listed shares, % of HHs' financial assets0.20.40.50.70.60.80.9-4.8Investment funds, % of HHs' financial assets7.37.47.79.29.310.812.4-11.0Insurance/pension funds, % of HHs' financial assets19.019.619.920.921.021.823.4-27.8Total assets of insurers, % of GDP7.17.37.56.04.84.44.24.153.9Pension assets, bn EUR---15.415.117.621.1-5813.8Pension assets, % of GDP---15.113.714.316.2-32.310y real return average of pension assets, %------1.2-0.7-1.4Pension funds assets, ECB (% of GDP)-12.413.915.113.714.316.317.023.01-34-1011-1718-2425-27Colours indicate performance ranking among the 27 EU Member States.Banking sectorNon-banking sector 
 
 
 
 
 
 
 
 
 
 
 
 
     
 
ANNEX 7: EFFECTIVE INSTITUTIONAL FRAMEWORK 

trust  built  on 

institutional  framework 

An  effective 
is 
essential  for  competitiveness.  This  requires 
public 
integrity,  high-quality 
legislation,  regulatory  simplification  and  efficient 
services  for  people  and  businesses.  For  Slovakia, 
recommendations 
the  2025  country  specific 
(CSRs) highlight the need to i) improve the quality 
of  regulation,  ii)  address  the  fragmentation  of 
better 
governance 
coordination  and  policymaking,  and  iv)  strengthen 
the judicial system and enhance the effectiveness 
of the anti-corruption system. 

structures, 

ensure 

iii) 

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 

In  Slovakia,  trust  is  highest  in  local  and 
regional  authorities.  Trust  in  government  is 
declining. Trust in the legal system fluctuates and 
remains  significantly  lower  than  the  EU  average 
(Graph  A7.1).  Both  businesses  and  people  have 
strong  confidence  in  the  public  administration’s 
their  data  securely  and 
ability 
responsibly (132). 

to  handle 

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

75 

Quality of lawmaking and 
implementation 

Slovakia  continues  to  be  hampered  by  a 
weak  implementation  of  lawmaking  rules. 
There are rules formally in place for the legislative 
they  are  easily  and  often 
process,  but 
circumvented.  For  instance,  assessment  of  the 
implementation  of 
legislation.  Ministries  are 
expected to assess the costs, benefits and a range 
of  impact  on  businesses  of  all  new  primary  and 
secondary  legislation.  (133).  Yet,  such  assessments 
are often limited or of poor quality (134). The level 
of  compliance  with  existing  legislation  is  not 
non-regulatory 
assessed. 
approaches  is  rare.  The  quality  of  the  regulatory 
impact  assessments  and  evaluations  is  overseen 
by  a  legislative  council,  whose  recommendations 
on  draft  legislative  proposals  are  not  mandatory. 
The  Ministry  of  Economy  carries  out  ex  post 
evaluations of existing legislation, but these focus 
only  on  the  impact  of  regulation  on  business. 
Wider,  sector-oriented  evaluations  are  not  carried 
out. (Table A7.1).  

Consideration 

of 

consultations  are 

Stakeholder 
limited. 
Consultations  with  business  stakeholders  are  a 
mandatory  part  of  the  assessment  of  impact  of 
legislation on the business environment. However, 
the  Ministry  of  the  Economy  takes  the  final 
decision on which proposals need consultation. The 
legislative  rules  of  the  parliament  do  not  require 
impact  assessment  or  public 
consultations 
introduced  by  its  members  or  committees,  even 
though  the  number  of  such  legislative  proposals 
has 
recent  years. 
Stakeholder  organisations  find  that  overall,  in 
recent  times,  consultations  are  either  skipped  or 
rushed, thus limiting their usefulness.  

increased  significantly 

in 

The  speedy  adoption  of  laws  continues  to 
undermine business environment in Slovakia. 
Many 
laws,  especially  concerning 
sensitive political topics, are still subject to a ‘fast-
track’ procedure. The share of laws adopted in this 

important 

(133) OECD, 2025, Regulatory Policy Outlook 2025, OECD 

Publishing, Paris, p. 214, link. 

(134) Government Office of the Slovak Republic, 2024, Annual 
Report of the Standing Working Commission of the 
Legislative Council of the Government of the Slovak Republic 
for the Assessment of Selected Impacts 2024, pp. 8-13, link. 

00.10.20.30.40.50.60.70.80.9AutumnSpringAutumnSpringSpringAutumnWinterSummerWinterSpringWinterSummerAutumnSpringAutumnSpringAutumnSpring202520242023202220212020201920182017Justice,  legal system EU-27Justice,  legal system SKRegional or local public authorities EU-27Regional or local public authorities SKGovernment  EU-27Government  SK 
 
       
 
 
 
 
Table A7.1:  Slovakia. Selected indicators on better regulation practices for primary legislation 

Source: OECD, 2025, Regulatory Policy Outlook 2025 and Better Regulation across the European Union 2025   

way  remained  high  at  around  20%  in  2025  (135). 
The  criteria  for  the  application  of  the  fast-track 
procedure  are  very  general  and  applied  in  a 
flexible  way  (136).  Such  fast  lawmaking  avoids 
thorough  impact  assessment  and  limits  public 
consultations.  Together,  these  elements  create  an 
unpredictable regulatory environment, as reported 
by  Slovak  businesses  who  consider  the  frequent 
use  of  fast-track  legislative  procedures  and  weak 
implementation  of  better  regulation  rules  among 
the key challenges (see Annex 5).  

Slovakia  received  a  CSR  in  2025  calling  for 
creating  a  more  predictable  regulatory 
environment  through  improving  the  better 
regulation  framework,  ensuring  that  impact 
assessment  and  stakeholder  consultations 
are  integrated  into  the  legislative  process. 
Slovakia  is  planning  a  comprehensive  reform  of 
impact  assessments.  It  will  be  carried  out  in  the 
context  of  improving  strategic  governance.  The 
specific  measures  to  address  existing  challenges 
remain to be fully defined.  

Slovakia  is  making  some  efforts  to  improve 
its  strategic  planning,  policy  prioritisation 
and monitoring. The need for better coordination 
and  policymaking  has  also  been  flagged  by  the 
2025  CSRs.  A  newly  established  network  of 
strategic  and  coordination  units  in  the  ministries 

will  be  led  by  a  strategic  and  coordination  centre 
at the Office of the Government. The TSI is helping 
to  develop  capacity  to  link  policy  strategies, 
investment planning, EU programming and reform 
implementation.  The  government  is  also  working 
to  connect  different  digital  platforms  to  ensure  i) 
consistent monitoring of strategies, ii) transparent 
assessment  of  newly  proposed  and  existing 
iv) 
iii) 
legislation, 
public 
management  of 
legislative  drafting  and  v) 
assessment of the overall regulatory environment 
(137).  

consultations, 

Public service delivery and 
digitalisation 

Public services in Slovakia fall short of what 
is  needed  in  terms  of  user-friendliness.  Only 
40%  of  people  and  25%  of  companies  are 
satisfied  with  administrative  services,  compared 
with an EU average of 45% and 42% respectively 
(138). The most time-consuming aspects are time to 
obtain  responses,  identifying  the  service  required 
and 
the 
related  obligations,  and  preparing 
paperwork (Graph A7.2). 

(135) National Council of the Slovak Republic, link. 

methodology, link. 

(137) Ministry of Economy of the Slovak Republic, Uniform 

(136) National Council of the Slovak Republic, Rules of procedure, 

Article 89. link. 

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

76 

Tools 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 mechanisms0Specify the methodology of measuring progress in achieving the law's goals0Oversight of better regulation: There is an external  body responsible for reviewing the quality of RIAs and of ex post evacuations 1There 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 RIA0There 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 targets: availability of digital public services 

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

say 

Moreover,  65%  of  people  say  they  need  multiple 
interactions  with  public  administration  to  obtain 
services  and  73% 
the  public 
administration  repeatedly  asks  for  the  same 
level  of 
information.  This 
administrative  complexity  and  suggests 
that 
digitalisation is not being used to simplify services 
and provide seamless experience for the users. 

reveals  a  high 

that 

Graph A7.2: Most time-consuming aspects 

iii)  enhancing  data  integration  across  ministries 
and iv) adopting a mobile-first approach for easier 
authentication and authorisation.  

services 

The  gap  between  Slovakia  and  the  EU  in 
terms  of  digital  public 
for 
businesses has however  widened (Table  A7.2). 
This is particularly true of i) the availability of pre-
filled  forms,  ii)  cross-border  online  payments  and 
iii)  transparency  of  processes  (140).  Companies 
prefer  online 
services:  85% 
acknowledge  that  digital  public  services  reduce 
time and effort to obtain a service (EU: 73%) and 
74% report regular use (EU: 69%) (141). Businesses 
can  be  established  online  using  the  Slovensko.sk 
portal,  which  also  offers  automated  checks, 
information  on  the  tax,  health-insurance  and 
social-security  systems.  Applicant  data  are 
partially pre-filled (142).  

in-person 

to 

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

Slovakia  has  only  marginally  increased  the 
availability  of  digital  public  services  for 
people, lagging well behind the rest of the EU 
(Table  A7.2).  Slovakia  has  made  progress  in 
closing the  gap  with  the  EU  in  enabling  access  to 
electronic health records (Slovakia 72%; EU 83%). 
Slovakia has issued four million electronic identity 
documents (eIDs), but less than a quarter of them 
are  actually  used.  This  can  be  explained  by  the 
complexity  of  online  services.  Although  70%  of 
people  acknowledge  that  digital  public  services 
save time  and  effort,  81%  (EU  66%)  desire more 
user-friendly designs (139). With the support of the 
RRP, Slovakia aims to improve 16 ‘life events’, by i) 
simplifying forms, ii) introducing proactive delivery, 

Despite  some  progress,  digitalisation  of 
permitting  in  Slovakia  faces  critical  barriers 
in connectivity, interoperability and workflow 
is  being 
efficiency.  Construction  permitting 
digitalised  as  part  of  a  wider  reform  of  spatial 
planning  and  construction.  A  new  portal  allows 
applications  for  construction  permits 
to  be 
submitted  and  progress  to  be  monitored  online 
(143).  The  digitalisation  of  spatial  planning  is 
ongoing 
the  digitalisation  of 
environmental  and  energy  permitting  remains 

(144).  However, 

(140) EGovernment benchmark 2025, Publications Office of the 

EU, link. 

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

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

events.  

(143) Construction Portal, link. 

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

(144) Office for Spatial Planning and Construction of the Slovak 

Republic, Spatial planning, link. 

77 

0%10%20%30%40%50%Time forresponsesDocumentspreparationServiceidentificationTime forresponsesLegislationandobligationsDocumentspreparationPeopleBusinessesEUEU-272023202420252025677273827879738642667283Access to electronic health records (0 to 100)Digital public services for citizens (0 to 100)Digital public services for businesses (0 to 100)Slovakia 
     
 
 
 
   
 
fragmented. 
information about the process.  

Existing 

portals 

offer 

online 

Slovakia  is  technically  ready  to  enable  the 
exchange  of  data  and  documents  with 
authorities in other EU countries through the 
once-only technical system (145). When services 
(146) become accessible, people and businesses will 
no longer have to search for their data, download 
and  upload  documents  manually  across  e-
government  portals  in  different  Member  States. 
Still,  Slovakia  has  yet  to  identify  the  types  of 
documents  and  data  to  exchange  through  the 
system  and  explore  ways  to  shift  from  the 
submission  of  documents 
to  exchange  of 
structured data. 

There  are  major  obstacles  for  end-to-end 
digital  public  services  delivery.  These  include 
limited  integration  with  base  registers,  low  levels 
of  interoperability  between  base  registers,  and 
lack  of  standards  for  data  exchange  (147).  The 
digitalisation  and 
internal 
simplification  of 
is  also  slow,  which  undermines 
workflows 
(148).  The 
infrastructure 
in  digital 
investment 
government  is  developing  reusable  components, 
(for  the  design  of  services,  data  integration, 
notification  of  users,  payments,  user  guides,  etc.), 
public 
available 
which  will 
administrations.  

be 

all 

to 

(149). 

It  aims 

The  2025  National  ICT  concept  for  public 
administration  addresses  some  of 
the 
existing  obstacles  to  digital  public  service 
delivery 
to  advance  digital 
transformation  by  providing  standardised  cloud 
to  public 
services  and 
administrations, 
exchange, 
automation,  and  the  use  of  AI,  as  well  as 
strengthening  cyber  security.  However,  other 
critical aspects that undermine Slovakia’s ability to 

resources 
data 

enabling 

shared 

(145) European Commission, Once-Only Technical System 

Acceleratormeter, Ec.europa.eu. 

(146) 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.  

(147) European Commission, 2024 Digital Public Administration 

Factsheet, p5, link. 

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

reports, link. 

(149) NIKVS, Ministerstvo investícií, regionálneho rozvoja a 

informatizácie SR. 

78 

improve  service  delivery  and  create  a  more 
predictable  and  competitive  environment  for  the 
business  and  the  citizens  are  not  reflected.  Such 
registers, 
aspects 
include  digitalisation  of 
developing  wider  digital  skills 
in  the  public 
administration,  ensuring  an  effective  digital 
transformation of municipalities. 

of 

of 

hampered 

information 

Procurement 

transformation 
also 
is 

Digital 
public 
by 
administration 
fragmented  procurement  and  limited  digital 
skills. 
and 
communications  technology  goods  and  services is 
not  guided  by  an  integrated  strategic  approach. 
The  coordination  between  the  authorities  that 
have  an  important  role  in  this  area  is  neither 
sufficient,  nor  efficient.  Guidance  is  limited.  As  a 
result,  procured  solutions  do  not  contribute  to  a 
interoperable,  seamless  digital 
well-connected, 
government.  While 
the  RRP-funded  digital 
IT  procurement  marked  an 
marketplace  for 
important first step, public administrations do not 
have  sufficient  confidence  and  capability  to 
develop  new  approaches  to  ICT  procurement.  This 
leads  to  high  levels  of  dependency  on  individual 
service  providers.  Slovakia’s  administration  has 
significantly lower share of in-house IT specialists 
compared  to  abroad.  In  this  context,  only  6%  of 
operational 
the  works 
programme  “Integrated  infrastructure”  for  2014-
2020  were  delivered  through  in-house  expertise. 
There is also a significant brain drain of IT experts, 
resulting in a lack of institutional memory for both 
contractors and suppliers (150). 

financed 

through 

Local governance 

Slovakia  has  taken  very  few  efforts  to 
address  the  structural  weakness  of  local 
administration  and  governance,  flagged  in 
the 2025 CSRs (see Annex 18). This affects the 
ability to offer good-quality public services at local 
level.  Inter-municipal  coordination  has  been  a 
central  strategy  for  addressing  fragmentation  of 
local  government  (see  Annex  18)  and  improving 
the  efficiency  and  stability  of  the  services  they 
deliver.  Recent  analysis  shows,  however,  that 

(150) OECD (2022), Towards Agile ICT Procurement in the Slovak 

Republic: Good Practices and Recommendations, OECD Public 
Governance Reviews, OECD Publishing, Paris, link. 

 
 
 
voluntary  participation  in  such  cooperation  has 
declined, especially among the smallest (151). As a 
next step, the government is planning to introduce 
a  mechanism  of  ’facilitated  incorporation’  and  to 
adapt the delivery of delegated state tasks only to 
designated municipalities.  

With the support of the RRP, Slovakia piloted 
the  creation  of  21  shared-service  centres 
(152). These centres i) employ specialists in specific 
areas  such  as  education,  urban  planning  and 
building  codes,  ii)  coordinate  the  implementation 
of  certain  functions  such  as  building  regulations, 
transport,  and  environmental  protection  and  iii) 
enable  the  recruitment  of  qualified  staff  on 
specialised  tasks 
legal  advice  and 
including 
financial  management.  This  approach  enables 
centres 
to  obtain  needed  equipment  and 
connectivity to public digital services. Following an 
evaluation of this first phase, Slovakia plans to roll 
this out more widely.  Other planned  steps include 
legal  amendments  to  boost  local  referendums, 
support for the digitalisation of regional and local 
administrations  and 
improved  performance.  A 
regional  development  strategy  is  being  drawn  up, 
linked  to  the  long-term  Vision  and  Development 
Strategy of Slovakia by 2040 (see Annex 18). 

Civil service 

Slovakia’s  public  administration struggles  to 
attract  young  talent.  The  proportion  of  staff 
below  the  age  of  49  is  falling,  albeit  remaining 
above  the  EU  average  (153).  On  the  positive  side, 
the  proportions  of  i)  civil  servants  with  higher 
education  and  ii)  those  participating  in  adult 
learning  have  caught  up  with  the  EU  average  in 
recent  years  (154).  The  job-vacancy  rate  in  public 

(151) Report on the State of Public Administration Brings Data, 
Trends and Recommendations for State Modernization, 
Ministry of the Interior of the Slovak Republic, p.13, link. 

(152) Ministry of Interior, 2024, Návrh na určenie vybraných 

prijímateľov priameho vyzvania s cieľom „Zriadenia centier 
zdieľaných služieb, link“. 

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

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

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

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

administration  is  significantly  higher  than  that  in 
the  economy  as  a  whole  (4.9  vs  1.2)  (155), 
suggesting strong competition from other sectors. 
Younger  people  are  less  likely  to  consider  public 
administration  an  attractive  employer  (13%  for 
people under 39 vs 19% for those above) (156). An 
EU-funded  central 
information  system  was 
launched  in  2024  to  handle  job  applications  and 
enable analysis of the recruitment process.  

Following  the 2024  amendments  to the Civil 
Service  Act  no  action  has  been  taken  to 
ensure  the  coordination  of  human  resources 
management,  promotion  of  integrity  and 
training of civil servants. A Civil Service Section 
in  the  Slovak  Government  Office.  (Úrad  vlády, 
Sekcia  štátnej  služby)  provides  opinions  and 
methodological  guidelines  on  the  application  of 
the  Act  as  regards  civil  servant  employment 
conditions (157). 

Integrity  

The  perception  and  reported  experience  of 
corruption  when  doing  business  in  Slovakia 
remains  very  high.  The  figures  reveal  acute 
concerns  over  corruption  levels,  with  85%  of 
companies  perceiving  corruption  as  widespread 
(EU: 63%) and 90% stating that overly close links 
between  business  and  politics  lead  to  corruption 
(EU:  76%).  Consistently,  64%  report  corruption  as 
a  barrier  to  doing  business,  well  above  the  EU 
(158).  Sectors  particularly 
average  of  35% 
vulnerable  to  corruption  in  Slovakia  are  public 
procurement  and  agriculture  (159)  (see  also  Annex 
5). Many more firms than in the rest of the EU say 
they  have  been  asked  or  are  expected  to  offer 
gifts  or  extra  payments  for  permits,  services  or 
procurement  (Slovakia  20%;  EU  10%),  while  only 

Survey, Participation rate of employees in education and 
training (last 4 weeks) by NACE Rev. 2 activity (2008-2026). 

(155) Eurostat, 2026, Job vacancy rate by NACE Rev. 2 activity - 

annual data, link. 

(156) European Commission, 2026, Flash Eurobarometer 

surveys 568 on satisfaction with administrative services. 

(157) Civil Service and Civil Service Section, Office of the 

Government of the Slovak Republic, link. 

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

(159) European Commission, 2025, Rule of Law Report, link. 

79 

 
 
 
 
is 
10%  believe  bribery  of  senior  officials 
(160).  This 
(EU:  33%) 
appropriately  punished 
suggests 
corruption 
considerable  day-to-day 
pressure  and  weak  enforcement  and  deterrence. 
Against 
this  background,  several  corruption 
scandals were reported in 2025 (161). 

corruption  was  split  between  several  general 
police bodies at different levels. The power of the 
Prosecutor  General  to  annul  final  decisions  of 
lower-ranking prosecutors, now combined with the 
new  prosecutorial  framework,  remains  a  concern 
(165). 

robust 

system. 

limited  progress 
integrity 

in 
Slovakia  has  made 
and 
introducing 
transparency safeguards, although it received a 
CSR  in  2025  to  enhance  the  effectiveness  of  the 
anti-corruption 
of 
influence 
legislative  process 
businesses  on  Slovakia’s 
remains  opaque.  Lobbying  is  still  unregulated. 
Preparatory  work  appeared  to  have  started,  but 
the  proposed  legislation  on  lobbying  has  been 
postponed again. Some progress was made on the 
adoption  of  the  code  of  ethics  for  high-level 
executives in December 2025 (162). 

The 

its 

relaxed 

The  capacity  of  law-enforcement  authorities 
to  detect, 
investigate  and  prosecute 
corruption  has  been  seriously  undermined.  In 
2024,  Slovakia 
laws  punishing 
specialised  anti-
corruption  and  dissolved 
corruption entities. The reform of the criminal law, 
implemented 
consecutive 
amendments  in  the  fast-track  procedure,  raised 
serious  concerns  over  Slovakia’s  capacity  to 
combat  corruption  (163).  As  a  result  of  reduced 
sanction  levels  for  corruption  crimes  and  the 
shortened  period  in  which  offenders  can  be 
brought  to  justice,  several  high-level  corruption 
cases have been dropped (164). 

through 

several 

Slovakia  reorganised  both  prosecution  and 
police  enforcement  bodies.  The  autonomous 
special  prosecution  office,  National  Crime  Agency 
(Národná  kriminálna  agentúra,  NAKA)  and  the 
(Odbor 
department  of  corruption  prevention 
prevencie korupcie, OPK) of the government office 
were dissolved. NAKA’s exclusive responsibility for 

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

(161) European Commission, 2025, The OLAF report 2024: 

Investigative activities - Protecting EU Funds - Investigations 
in EU Member States, link; as well as media article, 
DennikN.SK, 22 November 2025, link. 

As  a  consequence,  serious  concerns  have 
been  raised  about  the  effectiveness  of  the 
fight  against  corruption  (166).  According  to  the 
General  Prosecutor’s  office,  corruption-related 
prosecutions  in  2025  fell  by  70%  compared  with 
the  previous  year,  while  criminal  charges  fell  by 
67%.  Compared  with  2023,  prosecutions  were 
down  56%  and  charges  40%.  No  new  high-level 
corruption cases were detected in 2025. Bribery of 
foreign  public  officials  remains  an  area  with  low 
enforcement levels, with one case reported. 

The 

reassigned. 

The  positive  impact  of  investments  in  the 
specialisation and capacity building in recent 
years, funded by the RRF (e.g. training police 
officers  in  the  area  of  anti-corruption)  has 
therefore been severely undermined. After the 
reorganisation,  the  prosecutors  with  specialised 
experience  were 
general 
prosecution  and  the  new  Office  for  the  Fight 
(Úrad  boja  proti 
against  Organised  Crime 
organizovanej  kriminalite;  ÚBOK) 
themselves 
confirmed  insufficient  capacity  to  detect  and 
investigate 
the 
following 
the  positive  side,  some 
reorganisations.  On 
progress has been made in helping prosecutors to 
improve  their  handling  of corruption  cases  and to 
strengthen  the  capacity  of  delegated  European 
prosecutors.  However,  the  decentralisation  of 
investigations  and  the  turnover  of  employees  has 
had a largely detrimental impact on the follow-up 
of ongoing cases and the detection of new cases, 
which  has  fallen  sharply  compared  to  previous 
years (167). 

corruption 

also 

over 

Concerns 
potential 
arose 
whistleblowers being afraid to come forward 
with information about high-level corruption. 
In December 2025, Slovakia adopted amendments 
to the law on whistleblower protection, which also 
dissolved  the  existing  office  for  the  protection  of 

(162) Ethics Codex, December 2025, Slovak Government Office, 

(165) European Commission, Rule of Law reports 2025, p. 7, link. 

link. 

(163) European Commission, Rule of Law reports 2025, link. 

(166) GRECO report of 6 June 2025, pp. 43 and 44, link. 

(167) Euroactiv.com, 10 February 2026, link, Press conference of 

(164) European Commission, Rule of Law reports 2025, p. 10, link. 

the General Prosecutor, 4 February 2026, link. 

80 

 
 
 
whistleblowers  (Úrad  na  ochranu  oznamovateľov). 
intention  was  to  create  a  new  office 
The 
responsible  to  protect  whistleblowers  and  the 
victims  of  crime.  While  the  Slovak  constitutional 
court  initiated  a  constitutional  review  of  this  law 
(168),  and  the  Commission  opened  infringement 
proceedings (169), Slovakia then repealed the law in 
March  2026.  These  developments  may  deter 
whistleblowers  from  coming  forward  and  further 
aggravated  the  reported  risks  of  low  detection  of 
corruption. 

Justice 

justice  system  continues 

to  face 
The 
challenges as regards its efficiency. The time 
taken  to  reach  a  decision  in  civil  and  commercial 
cases in first-instance courts decreased from 173 
days in 2023 to 151 days in 2024. The estimated 
time  to  resolve  administrative  cases  in  first-
instance courts decreased significantly from 1 040 
days  in  2023  to  860  days  in  2024  but  is  still 
among the longest in the EU (170). 

The  quality  of  the  justice  system  is  good 
overall. Funded by the RRP, the redrawing of the 
judicial map cut the number of district courts down 
from  54  to  36  and  created  administrative  courts, 
strengthening  the  specialisation  of  judges  and 
the  organisation  of  courts.  Some 
improving 
concerns  persist,  for  example, 
terms  of 
unoccupied  positions  in  administrative  courts  and 
insufficient alignment of seats of prosecutors (171). 
An evaluation of this reform is planned in 2026 to 
assess  its  impact  on  judicial  efficiency  and  the 
functioning of the court system. 

in 

The  level  of  digitalisation  of  Slovakia’s 
justice system is close to the EU average. The 
judicial system would benefit from enabling secure 
remote  working  environments  for  courts  and 

(168) Decision of the Slovak Constitutional Court of 17 December 

2025, link. 

(169) European Commission, Letter of formal notice to Slovakia 

(INFR(2026)2012), link. 

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

(171) European Commission, Rule of Law reports 2023, p. 4, link 

and 

services 

digitalised 

prosecution 
case 
management.  Slovakia  performs  well  in  digital 
solutions  to  initiate  and  follow  proceedings  in 
civil/commercial  and  administrative  cases  and  in 
online  access 
to  published 
judgments  (172).  The  country  also  performs  well 
regarding  arrangements  for  producing  machine-
readable judicial decisions.  

the  public 

for 

Challenges  regarding  judicial  independence 
persist. The judicial council plays a key role in the 
justice  system,  and  its  powers  were  further 
increased,  including  in  disciplinary  proceedings, 
following  the  amendments  to  the  judges’  laws. 
There are insufficient safeguards, however, for the 
independence  of  members  of  the  judicial  council 
(173). In this regard, all non-judicial members were 
dismissed and replaced in late 2023 and 2024. To 
further  exacerbate  these  challenges,  the  latest 
amendments  to  the  laws  on  judges,  currently 
under  constitutional  review,  extended  the  judicial 
council’s 
disciplinary 
proceedings (174). 

including 

powers, 

in 

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

(173)GRECO report of 6 June 2025, pp. 43 and 44, link. 

and 2025, p. 9, link. 

(174) European Commission, Rule of Law report 2025, p. 7, link. 

81 

 
 
 
SUSTAINABILITY 
ANNEX 8: INDUSTRY DECARBONISATION, CIRCULARITY AND CLIMATE MITIGATION 

sharing 

Slovakia  faces  challenges  in  decarbonising 
its  industry,  in  reducing  emissions  from  the 
effort 
sector  and  on  waste 
management.  In  2025,  Slovakia  received  a 
country-specific  recommendation  on  the  roll-out 
of  zero-emission  transport,  modernisation  of  the 
rail network, resource waste management and the 
reuse of municipal  and packaging waste. Slovakia 
is  accelerating  industrial  decarbonization  to  meet 
2050  climate  neutrality  goals,  focusing  on 
upgrading heavy industries like steel, cement, and 
chemicals.  Backed  by  the  EU  Modernization  Fund 
and  Recovery  Plan,  Slovakia  launched  a  second 
€150  million  funding  round  in  Oct  2025  for 
energy-efficient  technologies,  following  earlier, 
larger  calls  for  projects.  Although  Slovakia  has 
adopted  a  national  waste  management  plan,  its 
regional  plans  are  still  in  development  and  the 
country  is  at  risk  of  missing  its  municipal  waste 
and packaging waste targets. Air pollution is also a 
concern  for  Slovakia,  resulting  in  EU  infringement 
procedures. 

 Industry decarbonisation 

Greenhouse gas emissions from industry 

The  greenhouse  gas  emission  intensity  of 
Slovakia’s  manufacturing  industry  is  among 
the highest in the EU (175). The same applies to 
the  share  of  all  greenhouse  gas  (GHG)  emissions 
generated  by  manufacturing,  33%.  In  Slovakia, 
manufacturing  emits  688 g  of  CO2eq  of  GHG  per 
euro of gross value added (176). Between 2018 and 

(175) This Annex discusses the transition of Slovakia'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 Slovakia'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 - 
Slovakia, Commission staff working document, SWD (2025) 
205 final, Brussels, 4.6.2025, Annex A7. Clean industry and 
climate mitigation. 

(176) 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 

the 

emission 

intensity 
of 
GHG 
2023, 
manufacturing 
improved  by 
in  Slovakia  has 
11% (177).  44%  of  manufacturing  emissions  in 
Slovakia are generated by energy use and 57% by 
industry  processes  and  product  use.  In  the  EU 
overall,  the  ratio  is  the  opposite.  Between  2018 
and  2023, 
the  energy-related  product  use 
emissions  intensity  of  manufacturing  declined  by 
18%.  In  recent  years,  the  share  of  electricity  and 
renewables 
final  energy 
in  manufacturing’s 
consumption  slightly  decreased  to  38%  –  well 
below the EU average of 45%. Over the same time 
period,  the  energy  intensity  of  manufacturing 
improved  by  9%,  with  final  energy  consumption 
falling from 2.3 GWh/EUR of gross value added to 
2.1  GWh/EUR.  In  the  EU  overall,  the  improvement 
in energy efficiency over that period was 17%, at 
1.1 GWh/EUR in 2023. 

Policies to promote industry decarbonisation 

According to  its  national energy  and  climate 
plan (178), Slovakia plans to move ahead with 
industry  decarbonisation  by  taking  energy 
efficiency  measures  and  by  increasing  the 
renewable  energy  sources (179). 
use  of 
Industrial  decarbonisation  in  Slovakia  focuses  on 
heavy  industry  (e.g.  the  steel,  cement,  chemicals 
and  wood  processing  sectors)  and  draws  heavily 
on EU funding to finance initiatives (180). Moreover, 
in September 2024, the steel mill U.S. Steel Košice 
announced it had prepared a decarbonisation plan 
(with  approximately  EUR 300 million 
in  RRF 
funding).  However,  due  to  difficulties  in  finalising 
the  project  within  the  necessary  timeframe  it  did 
not go ahead. This situation is reflected also in the 
performance  of  Slovakia’s  Environmental  Fund, 
which  has  functioned  as  a  high-revenue  but  low-

industry decarbonisation, as well as the annotation for 
further information, in table A8.1 at the end of this Annex. 

(177) In the following, 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 the 
annotation to table A8.1 at the end of this Annex.  

(178) Slovak NECP: MINISTERSTVO HOSPODÁRSTVA SLOVENSKEJ 

REPUBLIKY. 

(179) For a detailed analysis of energy prices, see Annex 9. 

(180) NECP: MINISTERSTVO HOSPODÁRSTVA SLOVENSKEJ 

REPUBLIKY p. 110. 

82 

 
 
 
 
 
 
 
 
subsidies  and  water 

impact  instrument.  While  funding  for  low-income 
infrastructure 
energy 
increased 
fund’s  performance 
the 
remains  hampered  by low  absorption  rates  and a 
governance  structure  that  restricts  budgets  to 
offset the national deficit. 

recently, 

Slovakia  launched  a  second  call  under  the 
in  October  2025  to 
Modernization  Fund 
support 
industry  with  the  key  selection 
criterion being the cost of reducing one tonne 
of emissions. Each project must also guarantee a 
reduction  in  emissions  of  at  least  10 000  tonnes 
of CO2 equivalent.  

Overall, according to the NECP the industrial 
sector  aims  to  achieve  an  81%  reduction  in 
GHG emissions by 2050 compared with 2021 
levels.  In  the  longer  run,  Slovakia  plans  to  use 
innovative  technologies  such  as  hydrogen.  The 
national  hydrogen  strategy,  prepared  as  part  of 
Slovakia’s  RRP,  aims  to 
low-carbon 
hydrogen  in  industrial  processes  to  help  reach 
carbon neutrality by 2050. The decarbonisation of 
industry  in  Slovakia  would  also  benefit  from  a 
more predictable legal framework, which would be 
aided  by  the  adoption  of  the  Slovak  climate  law. 
The government has identified adoption of the law 
as a priority, but it remains unclear as to whether 
it  will  be  adopted  before  the  2027  parliamentary 
elections.  

integrate 

Reduction of effort sharing emissions 

Compliance  with  effort  sharing  limits  with 
domestic measures 

Slovakia is projected to overachieve its 2030 
effort sharing target (181). In 2024, greenhouse 

(181) 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 
Slovakia’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, 

gas  emissions  from  Slovakia’s  effort  sharing 
sectors  are  expected  to  have  been  21.7%  below 
2005  levels.  By  2030,  with  current  and  planned 
policies  and  measures,  these  emissions  are 
expected  to  decrease  by  26.4%,  resulting  in  a 
surplus  of  3.7  percentage  points  relative  to  the 
2030 
is 
projected  not 
its  effort  sharing 
emissions  limits  in  any  year  in  the  2021-2030 
period. 

target,  a  26%  reduction.  Slovakia 

to  exceed 

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

Source: European Environment Agency. 

Sustainable transport  

Road  transport  emissions  in  Slovakia  have 
started  to  decrease  only  recently,  excluding 
the  years  marked  by  the  COVID-19  pandemic.  In 
2024, road transport generated 41% of Slovakia’s 
effort  sharing  emissions,  a  3%  reduction  from 
2005 levels, though there was a small increase in 
2023 relative to 2005 levels (182).  

Road  transport  accounts  for  a  high  share  of 
both  freight  and  passenger  transport.  The 
modal  split  of  freight  transport  on  land  in  2023 
expressed  as  the  share  of  tonne  kilometres 
transported was 56.9% road, 25.8% rail and 2.2% 
inland  waterways.  The  modal  split  of  passenger 
transport  on  land  in  2023  was  77.5%  passenger 
cars, 9.1% railways and 12.5% buses and coaches. 
Slovakia is taking some measures e.g. overhauling 
of its rail sector to support zero-emission mobility 
and  modernize 
largely  funded 
infrastructure, 
through the EU RRF and Cohesion Funds, aiming to 
complete  key  projects  by  the  end  of  2026.  The 
infrastructure 
strategy  focuses  on 

reforming 

Brussels, Chapter 9 (pp. 111ff.),  and in particular Tables 25 
and 26. 

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

83 

0510152025200520232024MtCO2eDomestic transport (excl. aviation)Buildings (under ESR)AgricultureSmall industryWaste 
 
 
   
 
governance,  digitizing  lines,  and  transitioning  to 
electric  and  battery-powered  rolling  stock  to 
address the 2025 recommendation to support the 
further  roll-out  of  zero-emission  mobility  and 
modernise  the  rail  network,  by  reforming  the 
national  railway  infrastructure  governance  and 
creating  a  dedicated  investment  framework,  as 
described below.  

Slovakia  has  further  scope  to  support  the 
uptake  of  zero-emission  trucks  by  exempting 
them from the infrastructure charge component of 
a toll, which is a demand-side economic incentive 
allowed under EU law until 30 June 2031.  

The  process  to  decarbonise  transport,  in 
particular  the  shift  to  rail,  will  require 
significant  further  action,  notably  clear  policy 
objectives,  long-term  planning  and  substantial 
investment 
upgrading 
renewing 
infrastructure. Despite the extensive investment in 
rail infrastructure noted in the RRP, only 43.7% of 
Slovakia’s railway lines were electrified in 2023.  

and 

in 

Sustainable industry  

Circular economy industry  

Slovakia  has  made  some  progress  in  the 
transition  to  a  circular  economy.  As  stated  in 
last  year’s  country  report,  despite  having  adopted 
the circular economy roadmap and aligning waste 
legislation  with  EU  directives,  there  is  still  scope 
for  Slovakia  to  strengthen  its  circularity  policy 
it.  Circular 
framework  and  swiftly  implement 
economy  policies  encourage 
in 
recycling  and  reuse  infrastructure,  which  could 
potentially  stimulate  domestic  demand  and 
productivity  growth  in  the  long  run.  In  a  low-
growth  environment  (GDP  growth  in  2025  was 
projected  to  be  below  1%),  circular  economy 
investments  could  diversify  the  economy  beyond 
manufacturing.  As  mentioned  below,  shifting  the 
tax  burden  toward  environmental  taxes 
(e.g. 
resource-use taxes) could improve fiscal efficiency 
and support the deficit reduction taxes. 

investment 

Resource  productivity  measures  the  total 
volume  of  materials  directly  used  by  an 
economy 
in  relation  to  gross  domestic 
product  (GDP).  With  EUR 2.03  generated  per  kg 
resource 
of  material 

in  2023, 

consumed 

productivity in Slovakia is below the EU average of 
(183). 
Improving resource 
EUR 2.84 
productivity can help  minimise negative 
impacts 
on  the  environment  and  reduce  dependency  on 
volatile 
raw  material  markets. In  addition, 
improved  resource  productivity  may  help  boost 
long-term economic growth.  

In 2021, Slovakia adopted the national waste 
management  plan  for  2021–2025.  The  main 
objective of the plan is to divert waste away from 
landfill,  especially  municipal  waste,  by  promoting 
more waste prevention, reuse, preparing for reuse, 
recycling  and  supplementing  this  with  energy 
recovery.  Specific  measures  include  increasing 
landfill  taxes  and  a  deposit  return  system  for 
single-use beverage packaging, which entered into 
force  in  January  2022.  This  national  plan  will  be 
complemented  by  regional  waste  management 
plans,  which  are  under  development.  Since  2023, 
all  municipalities  provide  separate  collection  of 
biowaste, i.e. biowaste  is collected separately and 
not  mixed  with  other types  of  waste,  or it  can be 
sorted and recycled at source. 

pre-processing 

Slovakia  is  at  risk  of  missing  the  municipal 
waste  and  packaging  waste  targets  and 
missing  the  2035  target  of  a  maximum  of 
10%  of  municipal  waste  landfilled.  Mixed 
municipal  waste  is  still  allowed  to  be  landfilled 
without 
has 
repeatedly postponed the obligation to pre-process 
waste.  Slovakia  has  put  in  place  a  pay-as-you-
throw system but each municipality can design its 
own  scheme  and  it  currently  covers  a  small 
fraction of the population. It has also put in place 
mandatory  deposit  return  schemes  for  aluminium 
beverage  cans,  plastic  drink  bottles  and  for  some 
glass drink bottles. 

Slovakia 

and 

sorted  biodegradable  waste 

In  2023  Slovakia  put  in  place  a  landfill  ban 
on 
from 
households  and 
restaurants,  municipal 
garden waste and biodegradable waste from 
retail  wholesale  and  distribution.  However, 
according  to  a  2023  analysis  designed  to  assess 
the available capacity to process mixed municipal 
waste,  mixed  unprocessed  municipal  waste  was 
still allowed to be landfilled. Since 2016, Slovakia 
has  applied  a  landfill  tax  (or  fee)  of  between 
EUR 11 and EUR 30 per tonne of landfilled waste, 

(183) Eurostat, Resource Productivity, Link. 

84 

 
 
improvements 

depending on the sorting level in the municipality. 
It  does  not  levy  a  tax  on  waste  incineration. 
Reaching  the  2025  target  of  preparing  for  reuse 
and  recycling  55%  of  municipal  waste  and  the 
2035 target to reduce landfill to 10% of municipal 
to 
require 
waste  generated 
Slovakia's  its  waste  management  performance. 
Slovakia  has  made  some  progress  on  waste 
prevention,  on 
improving  and  extending  the 
separate  collection  of  waste,  including  biowaste, 
on improving the functioning of extended producer 
the  general 
responsibility  schemes 
landfill 
minimum  requirements,  on 
taxes  to  divert  recyclable  waste  from  landfill  and 
on  closing  and 
rehabilitating  non-compliant 
landfills.  By  contrast,  Slovakia  has  made  no 
progress on ensuring that all landfilled waste has 
been  subject  to  (pre-)  processing.  There  is  not 
enough  information  available  to  assess  progress 
on  avoiding  investment  in  potentially  stranded 
assets  like  mechanical  biological  treatment  or 
installations  for  the  (co-)incineration  of  mixed 
municipal waste. 

increasing 

to  meet 

The  total  volume  of  waste  generated  in 
Slovakia has increased by more than a third 
over the last 12 years. This is mainly driven by 
the  mineral  and  solidified  waste  categories.  The 
upward trend in waste generation (excluding major 
mineral  waste)  is primarily  driven by  a significant 
increase in recyclable waste, which has more than 
doubled  over  the  last  12  years.  Slovakia’s  GDP 
growth  stalled  briefly  in  2020,  most  likely  due  to 
the COVID-19 pandemic. In general, it appears that 
economic  growth  has  not  decoupled  from  waste 
generation. 

Slovakia has moved in the right direction on 
preparing  waste  for  reuse,  on  recycling 
municipal  waste  and  packaging  waste,  and 
on  reducing  the  landfill  rate  of  municipal 
waste. Nonetheless, improvements are warranted. 
Slovakia's  recycling  rate  of  total  packaging  waste 
is  already  close to the  2025  target,  and  recycling 
rates of packaging waste materials are above the 
2025  targets,  except  for  aluminium  packaging. 
However, the recycling rates are not yet based on 
the  new  calculation  rules  and  are  likely  to  be 
overestimated. 

Total  environmental  taxes  amounted  to  EUR 
2.7  billion  in  Slovakia  in  2022,  representing  2.5% 

of  its  GDP  (EU  average:  2.0%)  (184).  Energy  taxes 
formed  the  largest  component  of  environmental 
taxes,  accounting  for  2.3%  of  GDP,  above  the  EU 
average  of  1.6%.  Transport  taxes,  at  0.19%  of 
GDP,  were  below  the  EU  average  (0.4%),  as  were 
taxes  on  pollution  and  resources,  at  0.02% 
(0.08%). In 2022, environmental taxes in Slovakia 
accounted  for  7.1%  of  total  revenue  from  taxes 
and social contributions (above the EU average of 
toward 
burden 
5.0%). 
environmental  taxes 
(e.g.  resource-use  taxes) 
could  improve  fiscal  efficiency  and  support  the 
deficit reduction taxes. 

Shifting 

the 

tax 

Slovakia has amended its Public Procurement 
Law (PPL)  to  include minimum environmental 
requirements  in  the  tender  documentation 
for  all  public  contracting  authorities  under 
the  PPL.  Following the  amendments,  when public 
contracts of a value referred to in the PPL (Article 
20(1)  and  (2))  are  awarded,  the  procurement 
documents 
must contain environmental 
requirements for the products supplied or used for 
the 
the 
services  provided.  The  products, 
for 
mandatory minimum requirements 
environmental  protection  and  the  instructions  for 
proving  compliance  with  these  requirements  are 
set  out  in  an  ordinance  issued  by  the  Minister 
of Environment and  Water 
the 
Minister  of  Finance  and  the  Minister  of  Economy 
and 
overall environmental 
investment  gap is  1.02%  of  GDP  (well  above  the 
EU  average of  0.8% of  GDP).  Almost  60%  of  the 
identified 
investment needs unmet 
(the investment  gap). As  mentioned  above,  the 
strategy  and  action  plan  for  the  transition  to  a 
circular  economy appears 
(i) 
address  the  country’s  below-EU-average  circular 
material  use  rate;  and  (ii)  close  the  significant 
circular 
investment 
economy objectives. 

together  with 

Industry. The 

insufficient 

to  meet 

gap 

the 

to: 

The circular  material  use  rate  (CMUR) is  a 
measure  of  one  aspect  of  circularity:  the 
share of the total volume of material used in 
the  economy  made  up  of  recycled  waste. 
Slovakia’s CMUR increased  sharply between  2018 
and  2020  but  has  since  plateaued  at  10.6%  in 
2023, below the EU average of 11.8%. 

(184) European Commission, Environmental Implementation 

Review (2025), Slovakia country report, Link.  

85 

 
 
 
Bioeconomy industry 

In Slovakia, the bioeconomy is growing in the 
subsectors  of  food  and  beverages  and  wood 
products  and  furniture.  Between  2018  and 
2023,  the  value  added  by  the  bioeconomy  has 
grown  by  6.1%  on  average,  below  the  EU-27 
average  of  5.1%.  Among  the  bioeconomy  sub-
sectors,  food  and  beverages  saw  the  highest 
growth in value added (7.9% on average between 
(185)(186).  While  overall 
2018  and  2023) 
bioeconomy  employment  has  shown 
limited 
growth,  food  and  beverages  and  wood  products 
and  furniture  both  recorded  employment  growth 
higher  than  the  average  of  the  bioeconomy.  In 
particular,  wood  products  and  furniture  registered 
the  highest  growth  in  total  employment  between 
2018  and  2023  (2.7%  on  average)  (187).  Labour 
productivity  in  the  bioeconomy  –  measured  as 
value  added  per  person  employed  –  stood  at 
68.5%  of  the  national  average  and  it  has  been 
growing  from  67.6%  in  2018  (188).  However, 
(R&D)  business 
research  and  Development 
expenditure 
sub-
sectors  has  grown  less  than  the  overall  R&D 
business  expenditure  in  Slovakia  (7.3%  compared 
to 9.9% on average between 2018 and 2023) (189). 
Nonetheless,  Slovakia 
innovating  with  the 
is 
development of bio-based pharmaceuticals (190). 

from  bioeconomy-relevant 

Zero-pollution industry  

Slovakia  submitted  its  first  national  air 
pollution  control  programme  (NAPCP)  to  the 
Commission  on  9 March 2020.  An  update  was 
due  in  2024  but  as  of  late  2025  it  was  still 
pending.  According  to  the  official  national  air 
quality  assessment 
for  2023,  exceedances 
persisted in parts of Slovakia for PM10, ozone and 
benzo(a)pyrene. In 2023, air pollution exceedances 
over  the  limits  set  by  the  Ambient  Air  Quality 

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

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

(187)Ibid. 

(188)Ibid. 

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

(190) Institute of Economic Policy and Finance - PowerPoint 

Presentation. 

Directive  (AAQD)  were  registered  for  particulate 
matter (PM10) in one air quality  zone in Slovakia. 
The  limits  set  for  ozone  concentrations  were 
exceeded  in  two  air  quality  zones,  and  the  limits 
set 
for  benzo(a)pyrene  concentrations  were 
exceeded in six air quality zones. The Commission 
is  following  up  persistent  breaches  of  air  quality 
requirements,  which  have  severe  negative  effects 
on  health  and  the  environment,  by  opening 
infringement  procedures  covering  all  Member 
States concerned, including Slovakia. The Court of 
Justice  of  the  European  Union  issued  a  judgment 
on exceedances of PM10 limit values in 2023 (C-
342/21)  confirming  Slovakia’s  non-compliance 
with  Directive  2008/50/EC.  The  aim  is  to  ensure 
that  appropriate  measures  are  put  in  place  to 
bring  all  air  quality  zones  into  compliance.  While 
exceedances  still  persist,  Slovakia  has  applied  a 
national  legal  framework for  air  protection  and  is 
currently  preparing  legislative  amendments  to 
transpose  Directive  (EU)  2024/2881  on  ambient 
air  quality  and  cleaner  air  for  Europe.  On  the 
economic  and  welfare  costs  imposed  by  air 
pollution,  the  latest  available  annual  estimates 
(for  2022)  for  Slovakia  attribute  3 700  deaths 
each  year  (or  41 400  years  of  life  lost  (YLL))  to 
fine  particulate  matter  (PM2.5);  260  deaths  each 
year (or 2 900 YLL) to nitrogen dioxide (NO2) (84); 
and 700 deaths each year (or 7 800 YLL) to ozone 
(191). 

industry is 

pollution from 

Water 
an 
additional  challenge. Slovakia  has  the  13th 
highest  level  of  emissions  of  heavy  metals  to 
water  and  ranks  fourth  on  emission  intensity 
(below  the  EU  average  of  0.864 kg/EUR  1  billion 
GVA). The main industrial contributors to emissions 
to  water  in  Slovakia  are  the  chemical  sector  for 
heavy  metals,  nitrogen  and  total  organic  carbon, 
the  pulp  and  paper  industry  for  phosphorus,  and 
the  metal  production  and  processing  sector  for 
polycyclic  aromatic  hydrocarbons.  29%  of  surface 
water  bodies  still  fail  to  achieve  good  chemical 
the  presence  of  ubiquitous, 
status  due 
persistent,  bio-accumulative  and  toxic  substances 
(uPBTs) (192). 

to 

(191) EEA, 2024, Harm to human health from air pollution in 

Europe: burden of disease status, 2024, Link. 

(192) )European Commission. Third River Basin Management Plans 
Second Flood Hazard and Risk Maps and Second Flood Risk 
Management Plans Member State: Slovakia, 2025, Link. 

86 

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

Source: 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). 

87 

Climate mitigationSlovakiaTrendEUIndustry decarbonisation201820192020202120222023202420182023GHG emissions intensity of manufacturing production, g/€ (1)863709757938750765688-68.3330-Share of energy-related emissions in industrial GHG emissions (2)45.343.143.243.344.043.7-0.655.557.9Energy-related GHG emissions intensity of manufacturing and construction, g/€ (3)431.6339.7364.9452.3371.6366.5-26.8203.9163.0Share of electricity and renewables in final energy consumption in manufacturing, % (4)41.242.738.839.737.837.638.2-0.642.843.9Energy intensity of manufacturing, GWh/€ (4)2.342.102.152.452.222.082.04-0.11.271.05Share of energy-intensive industries in manufacturing production, % in GVA (5)14.7812.7912.8416.5518.4014.3713.680.8--GHG emissions intensity of production in sector [...], g/€ (6)- paper and paper products (NACE C17) 441          374          396          571          467                402          339          -57.0722          619          - chemicals and chemical products (NACE C20) 3,827       2,580       2,632       3,588       2,682             2,675       2,829       197.1--- other non-metallic mineral products (NACE C23) 2,810       2,109       2,363       2,744       2,613             2,384       2,162       -201.42,495       2,352       - basic metals (NACE C24) 5,924       6,985       7,464       7,716       6,450             8,684       9,160       1695.62,842       3,099       Reduction of effort sharing emissions201820192020202120222023202420182023GHG emission reductions relative to base year, % -11.9-14.8-16.6-21.7- domestic road transport1.75.8-8.0-2.01.40.8-2.65.4-1.4-5.6- buildings-27.3-29.0-30.6-21.9-28.8-34.2-34.7-4.1-20.3-33.520052021202220232024TargetWEMWAMEffort sharing: GHG emissions, Mt; target, gap, %23.120.419.719.318.1-22.7%-14.4%-26.4%Sustainable road transport2018201920202021202220232024202520182021New zero-emission vehicles, electricity motor, % (7)0.310.161.191.501.922.902.431.21.038.96Number of publicly accessible AC/DC charging points (8)--425124122322380324841792938.0446956n/aShare of electrified railways, % of total (9)43.7643.7343.7043.7143.7143.6543.59-0.155.4756.49Sustainable industrySlovakiaTrendEU-27Circular economy transition20182019202020212022202320242018latest dataMaterial footprint, tonnes per person14.713.812.912.915.315.413.7-1.614.813.7Circular material use rate, %4.7           8.3           10.3         10.4         11.5               10.6         12.20.711.612.2Resource productivity, €/kg1.2           1.4           1.5           1.6           1.8                 2.0           2.40.58432.13.0Employees in circular economy2.8           2.82.8           2.8           2.6                 2.7           -2.12.0Patents in circular economy21.0           2.0           -           12.312.0Recycling rate           36.3           38.5           45.3           48.9                 49.5           50.3 50.7         46.4048.1Plastic recyling 51%53%56%60%60%54%-41%42%Construction and demolition waste (CDW) recovery 51-818889Bioeconomy industry 2018201920202021202220232024CAGR 2018-202320182023Value added, million EUR3,6563,4233,6364,1934,8195,214-6.1%642,438863,436Employment, total number of people employed161,791162,056163,798161,499165,103163,662-0.2%17,649,04017,085,642ProductivityValued added per worker, thousand EUR22.621.122.226.029.231.9-5.9%36.450.5Valued added per worker, % of national average67.661.162.967.972.268.5--62.270.7R&D business expenditureTotal bioeconomy (biomass producing and converting sectors)78101211117.3%15,67223,335Total R&D business expenditure406426454515615714-9.9%196,587259,525Zero pollution industry201820192020202120222023202420182021Damage cost for industrial pollution-------414.9352.7Water industrial pollutants releases Cd, Hg, Ni, PbnitrogenTOCPhosporus2021change (2010)2021change (2010)2021change (2010)2021change (2010)-           no data-           no data14,402,100        no data-           no data Water chemical statusGood962          Good (%)0.7                 Poor389.0Poor (%)29% 
 
 
  
 
 
ANNEX 9: AFFORDABLE ENERGY TRANSITION 

It 

reflects 

to  net  zero. 

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.  Slovakia  has  been 
facing  high  energy  prices,  partly  due  to  the 
increase  in  prices  in  the  region,  the  reliance  on 
fossil  fuels  and  lack  of  non-fossil  flexibility. 
Slovakia will need to continue its efforts to phase 
out imports of Russian energy supplies in line with 
EU legislation. Nuclear energy is still the country’s 
the 
source  of  electricity.  However, 
main 
deployment  of 
the 
renewable  energies  and 
decarbonisation  of  heating  and  cooling  systems 
remain  a  challenge.  Furthermore,  permitting 
procedures and grid bottlenecks still hinder further 
penetration  of  renewable  energies,  in  particular 
wind generation. Measures should be well targeted 
as  energy  prices  for  the  vast  majority  of 
households  remain  subject  to  price  intervention, 
while industry pays some of the highest electricity 
prices  in  the  EU.  More  consumer  empowerment 
could  play  an  important  role.  Electrification  is 
the 
progressing  slowly, 
unfavourable 
ratio, 
electricity-to-gas 
exacerbated  by higher  taxation  on  electricity  than 
on gas. 

in  part  because  of 

price 

Energy prices and costs 

for 

except 

The  retail  energy  prices  for  industrial  and 
household  consumers 
in  Slovakia  have 
non-household 
stabilised 
consumer  electricity  prices,  which  have 
increased  since  2024.  The  disproportionately 
skewed  tax  burden  on  electricity  undermines 
affordability and distorts accurate price signals for 
electrification. In the first half of 2025, household 
electricity and gas prices in Slovakia stabilised and 
the  EU  average,  at 
remained  well  below 
EUR 0.1887/kWh 
EUR 0.0587/kWh 
and 
respectively.  Similarly,  non-household  gas  prices 
have  stabilised  since  2024  and  reached  the  EU 
electricity  prices 
industrial 
level.  However, 
(EUR 178/MWh)  have  increased  and  remained 
above the EU average (EUR 164/MWh). While 58% 
of the electricity price for industry is accounted for 
by  the  wholesale  cost,  the  network  cost,  carbon 
cost  and  taxes  represent  18%,  9%  and  16% 
respectively  of  the  electricity  bill.  For 
large 
times  more 
businesses,  electricity  was  3.1 

expensive than gas in the first half of 2025, with 
levies 
disproportionately  skewed 
(excluding  VAT)  accounting  for  16%  of  electricity 
bills  and  2%  of  gas  bills.  Excluding  taxes  and 
levies, the electricity-to-gas price ratio would have 
decrease (193). 

taxes  and 

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

Due  to  limited  non-fossil  flexibility  and  high 
uptake  of  natural  gas-fired  generation  for 
price-setting, Slovakia’s wholesale electricity 
prices  averaged  EUR 105/MWh  in  2025  (EU 
average:  EUR 85/MWh),  remaining  the  10th 
highest  in  the  EU.  Nuclear  energy  is  still  the 
main  source  of  electricity  in  the  energy  mix, 
accounting  for  65.9%  of  electricity  generation. 
Although  fossil  fuels  accounted  for  16.3%  of 
Slovakia’s  electricity  generation  in  2025,  they 
maintained  their  structural  role  as  the  dominant, 
and costly, marginal price-setting technology (58% 
of  price-setting  hours  for  16.3%  electricity 
generation).  Average  day-ahead  electricity  prices 
increased by 11% in 2025 (194) amid rising natural 

(193) Analysis based on Eurostat data from the first half of 2025. 

(194) Short-run marginal costs (SRMCs) are the sum of the variable 
costs associated with producing electricity using hard coal 

88 

 
 
 
 
 
 
gas  procurement  costs.  The  short-run  marginal 
costs  of  natural  gas  in  the  EU  increased  from 
EUR 96/MWh  in  2024  to  nearly  EUR 103/MWh  in 
2025.  Although  daytime  prices  have  fallen  in 
recent  years  owing  to  the  growing  penetration  of 
in  Slovakia 
solar  power,  the  average  price 
remained EUR 136/MWh  in  2025,  down  3%  from 
2024 but above the EU average of EUR 121/MWh. 

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

Data not available for Cyprus or Malta. The wholesale price is 
given as the average of day-ahead electricity prices over 
2025. The EU-27 average is calculated as consumption-
weighted. The EU low-carbon share is calculated from total 
EU electricity generation. The low-carbon share by country is 
calculated from total public electricity generation. ‘Low-
carbon’ includes renewables and nuclear. 
Source: European Commission calculation based on ENTSO-E, 
S&P Global Platts 

Flexibility and electricity grids 

Slovakia  remains  an  integral  part  of  the 
Core (195)  capacity  calculation  region  (CCR), 
where  Member  States  are  to  ensure  that  at 
least 70% of technical cross-border capacity 
is available for trading. Member States have a 
derogation  in  place  to  address  specific  network 
elements,  introducing  interim  targets  to  be  met 
only  on  specific  critical  network  elements  and 
contingencies (CNECs), while the 70% rule applies 
to  the  remaining  network  elements.  A  derogation 

and fossil gas. These are fuel costs, carbon costs and 
variable operating and maintenance costs. Estimates are 
provided by Ember. 

(195) 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. A CCR is a group of countries 
which calculate cross-border electricity trade flows together. 

enables  a  lower  level  of  trades  to  be  made  for  a 
for  operational  security 
time-limited  period 
reasons.  The  2024  ACER  Market  Monitoring 
Report (196)  shows  that  the  network  elements 
limiting  cross-border  trade  for  Slovakia  mostly 
pertain to the internal network. 

In 

in 

2026 

thanks 

relatively 

is 
The  central  geolocation  of  Slovakia 
high 
its 
reflected 
interconnectivity 
the 
level. 
interconnectivity  level  further  increased  to  almost 
53% 
to  higher  alternating  current 
capacities  at  the  Czech,  Hungarian  and  Polish 
borders.  Slovakia  is  a  net  electricity  exporter  (9% 
of  its  own  consumption),  exporting  significant 
volumes to Hungary, while importing from Czechia 
and  Poland.  Additional  investments  on  the  Czech 
and  Hungarian  borders  are  under  consideration, 
which  would  help  further  integrate  the  regional 
electricity  market.  However,  up  to  now  Slovakia 
has  had  no  interconnector  with  Austria  despite 
significant  differences 
in  average  day-ahead 
electricity  prices,  in  particular  during  the  summer 
months.  Slovakia’s  ten-year  network  development 
in 
plan 
transmission  grids.  Slovakia  also  pursues  an 
ambitious strategy for modernising the distribution 
grid, 
in 
investments  in  recent  years,  supported  by  EU 
funding  and  recently  also  by  a  substantial  loan 
from the European Investment Bank. This ambition 
is  also  reflected  in  four  smart  grid  projects  of 
common 
involving  Slovakia. 
(PCIs) 
Furthermore, in order to support the integration of 
renewables,  Slovakia  has  also  been  increasing 
The 
electricity 
investments 
modernisation  of  the  pumped-hydro  storage  at 
Čierny  Váh,  a  PCI  which  received  a  Connecting 
Europe  Facility  (CEF)  grant  in  2026,  is  a  notable 
example of such investments. 

investments 

significant 

increases 

recording 

increase 

(TYNDP) 

storage. 

interest 

the 

in 

a 

in 

Despite the challenges that remain, Slovakia 
is  continuing  its  efforts  to  support  further 
non-fossil 
grids 
investments 
flexibility,  in  particular  electricity  networks. 
Slovakia’s  final  national  energy  and  climate  plan 
(NECP)  does  not  report  on  specific  installed  non-
fossil flexibility capacity. The plan does not contain 
any  quantified  targets  or  data  on  energy  storage 

and 

(196)https://www.acer.europa.eu/sites/default/files/documents/Pub
lications/ACER_2024_MMR_Crosszonal_electricity_trade_cap
acities.pdf.  

89 

 
 
 
 
 
installed 

capacity  and  demand  response.  While  it mentions 
flexibility  measures,  such  as  the  energy  data 
centre for aggregators and grid interconnections, it 
provides  no 
figures  or 
capacity 
projections 
for  non-fossil  sources,  such  as 
batteries  or  interruptible  loads.  It  has  committed 
to  further  promoting  the  development  of  energy 
storage  and  energy  conversion 
technologies 
(Power-to-X).  Amendments 
to  national  acts 
(EU)  2019/944  aim  to 
transposing  Directive 
facilitate  energy  communities,  aggregators,  self-
consumers 
including 
energy 
provisions  to  increase  consumer  empowerment, 
support  energy  communities  and  enable  energy 
sharing  by  consumers  with  different  electricity 
technical  and 
suppliers.  However, 
further 
economic  hurdles  persist, 
simplification. 

legislative, 

requiring 

storage, 

and 

Consumer  empowerment 
is  progressing 
steadily.  By  the  end  of  2025,  Slovakia  had 
approximately  64 900  prosumers,  including  seven 
energy  communities.  Slovakia  has  set  up  a  legal 
framework  that  allows  aggregation, 
including 
independent  aggregation  and  an  energy  data 
centre,  to  participate  in  wholesale  markets.  The 
Energy  Data  Centre  established  by  the  market 
operator 
from 
distributed  resources  such  as  demand  response, 
independent 
including 
consumer 
aggregators, 
registration  and 
commercial 
contracts. The numbers have constantly increased, 
reaching  up  to  1 226  sharing  groups  and  2 254 
prosumers registered in the energy data centre in 
early 2026.  

sharing, 
conclusion  of 

electricity 

flexibility 

storage, 

services 

enables 

energy 

in  national 

With  a  definition  of  ‘energy  poverty’  still 
missing 
legislation,  Slovakia 
continue  to  apply  regulated  prices  to 
vulnerable  customers,  which  represent  90% 
of all households. Consumer engagement in the 
energy market remains limited. Moreover, the roll-
out of smart meters to households is low. Slovakia 
has  decided  to  proceed  with  a  selective  roll-out 
(15%) 
targeting  prosumers  and  consumers 
connected  to  the  distribution  system  at  a  low 
voltage  level  with  an  annual  consumption  of  at 
least  4 MWh.  The  accelerated  roll-out  of  smart 
meters  could  further  accelerate  off-peak  demand 
management.  Deployment  of  smart  grids  and 
electricity  storage  systems  is  to  be  supported, 
along  with  implementation  of  the  EU’s  2024 
to  ensure  non-
electricity  market  design 
investments 
discriminatory  participation.  RRP 

90 

(Component  1,  Investment  3)  fund  clean  and 
efficient  production  and  the  use  of  energy, 
including hydrogen projects throughout  2026. The 
national  hydrogen  strategy  and  scenarios  until 
2050  aim  to  develop  the  low-carbon  hydrogen 
ecosystem in SK (197). 

of 

non-fossil 

A  lack of  quantified  targets and a flexibility 
needs  assessment  hinders  the  coordinated 
deployment 
resources. 
Amendments to national acts transposing Directive 
(EU)  2019/944  aim 
energy 
communities,  aggregators,  self-consumers  and 
storage,  with  milestones  for  increased  flexibility 
capacity. 

facilitate 

to 

In  2024,  electricity  accounted  for  20.3%  of 
Slovakia’s  final  energy  consumption,  below 
the  EU  average  of  23.4%.  That  share  has 
decreased  slightly  in  the  past  decade  (198),  partly 
due  to  an  unfavourable  electricity-to-gas  price 
ratio  that  disincentivises  electrification  and  cost-
effective  decarbonisation.  When 
it  comes  to 
households, electricity accounts for 21.5% of final 
energy consumption, while in industry it represents 
27.4% (see also Annex 8). For the transport sector, 
this  share  remains  negligible,  at  2.4%.  Further 
progress 
is 
required  in  order  to  cost-effectively  decarbonise 
the economy and bring the benefits of affordable 
renewable generation to consumers. 

in  electrification  across  sectors 

Renewables and long-term contracts 

In  2025,  17.8%  of  Slovakia’s  electricity  mix 
was  supplied  by  renewable  energy  sources 
(RESs), 6.5% less than in 2024 due to, among 
other things, low hydropower, and far behind 
the  EU’s  overall  RES  47%.  Hydro  represented 
12.6%,  biomass  4.3%  and  solar  3%  of  the 
electricity mix. Installed RES capacity grew by 11% 
in  2025.  The  total  renewable  energy  capacity  in 
Slovakia  in  2025  stood  at  2993 MW.  As  regards 
the  acceleration  of  solar  deployment,  the  total 
installed  capacity  in  2025  was  1028  MW.  The 
updated  NECP  establishes  a  target  of  20  MW  of 

(197) https://www.mhsr.sk/uploads/files/hJ5p4b2D.pdf. 

(198) CAGR (compound annual growth rate) of −0.87% between 
2015 and 2024 and minimum/maximum share of 19.8% and 
22.0% respectively (source: Eurostat). 

 
 
wind  energy  installed  by  2025,  with  the  goal  to 
reach 750 MW by 2030.  

Wind  capacity  in  Slovakia  has  not  increased 
since  2019,  remaining  4  MW  (199).  By  May 
2025,  it  was  estimated  that  around  25  wind 
projects,  with  a  combined  capacity  of  1 032 MW, 
were  undergoing  an  environmental 
impact 
assessment  (EIA).  But  the  EIAs  of  the  projects 
appear not yet to have been issued. 

Slovakia  has  taken  steps  on  the  roll-out  of 
for 
renewables,  with  new  procedures 
connecting renewables to the grid. However, it 
is  uncertain  what  impact  the  new  rules  will  have 
on  the  acceleration  of  the  roll-out  of  renewables. 
In 2023, the solar industry estimated that the grid 
connection  of  solar  plants  takes  between  three 
and  six  months  for  utility-scale  projects  and  one 
month for small photovoltaic projects, both below 
the  EU  average.  As  part  of  its  national  RRP, 
Slovakia  has 
introduced  measures  aimed  at 
harmonising  grid  connection  procedures  and 
making  them  more  transparent  and  efficient, 
including  by  setting  rules  for  the  re-release  of 
capacities.  The  Slovak  government 
unused 
amended 
impact 
assessment  and  issued  legislation  setting  out  the 
criteria  for  designating  renewables  acceleration 
areas  for  wind  energy  in  the  framework  of  the 
RRP.  Only  two  acceleration  areas  have  been 
selected  as  pilot  areas,  so  there  is  room  for 
increased  ambition.  Moreover,  there  is  still  room 
for  further  improvement  to  shorten  and  simplify 
the permit-granting procedure for RESs, especially 
taking into consideration the guidance on speeding 
up such procedures. Local public opinion remains a 
barrier  to  the  development  of  renewable  projects, 
in particular for wind generation. The Commission 
has  launched  infringement  proceedings  against 
Slovakia  for  failing  to  transpose  Directive  (EU) 
2023/2413  on  the  promotion  of  energy  from 
renewable sources. 

the  Act  on  environmental 

Slovakia’s proposed contribution to the 2030 
EU  renewable  energy  target  in  its  final 
updated  national  energy  plan 
increased 
slightly,  to  25%  (from  23%),  but  still 
remains  significantly  below  the  required 
35%.  On  the  Union  Renewable  Energy  Platform, 
Slovakia announced auctions for other renewables 

(199) Renewable Capacity Statistics 2025. 

(60 MW),  2026 

in  2025 
(100 MW),  2027 
(100 MW)  and  2028  (100 MW).  As  part  of  the 
European  wind  power  action  plan,  Slovakia  has 
committed to having 150 MW of installed onshore 
wind capacity by 2026. However, no auctions were 
organised  in  2025.  In  February  2026,  Slovakia 
signed  a  memorandum  of  understanding  with 
Czechia on cooperation in the field of energy, with 
a focus on renewable energy sources. 

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

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 

two-way  contracts 

Power  purchase  agreements  (PPAs)  are  not 
very  common 
in  Slovakia.  Slovakia  has 
introduced  a  new  legislative  framework  for  PPAs 
and 
for 
renewables and nuclear. After the first virtual PPAs 
were concluded and the first cross-border PPA was 
announced  in  2024,  no  new  PPAs  have  been 
signed. 

for  difference 

Slovakia’s  self-consumption  framework  saw 
incremental  progress 
in  2025,  primarily 
through  EU-aligned  amendments  to  the 
Energy  Act  and  support  for  household 
renewables, though growth remained modest 
compared  to  regional  peers.  A  May  2025 
amendment  to  the  Energy  Act  (approved  in  July 
2025) introduced flexible connection contracts for 
renewables  in  capacity-constrained  areas,  easing 
grid access for self-consumption PV systems of up 
to 10 kW without generation licences if paired with 
storage. Regulated electricity prices were extended 
for  most  households, 
limiting  price 
signals and active consumers. 

indirectly 

91 

 
 
 
implementation 
(adopted 
the  Energy  Act 

Slovakia  made  notable  legislative  progress 
on  renewable  energy  communities  (RECs)  in 
2025,  building  on  2022  definitions  but  still 
facing 
Act 
hurdles. 
in  September  2025) 
No 259/2025 
amended 
to 
(No 251/2012) 
strengthen RECs as tools for local renewables and 
energy  sharing,  limiting  private  company  misuse 
by  tying  membership  to  municipalities  /  self-
governing regions and public entities. A May 2025 
government  amendment 
introduced  simplified 
notifications  for  PV  installations  of  (200)  50 kW  in 
RECs,  real-time  data  publication  by  OKTE  and 
phased  dynamic  tariffs  from  2027)  Development 
of  energy  communities  remains  slow  due  to 
nuclear  dominance,  regulatory  complexity  and 
network  tariffs  not  yet  optimised  for  sharing  or 
aligning with the NECP’s large-scale RES focus on 
communities. 

Energy efficiency 

in  2030.  While 

Slovakia  has  continued  to  make  significant 
progress  in  energy  efficiency.  In  2024  final 
energy  consumption  (FEC)  decreased  by  1.6%, 
compared  to  2023,  to  8.96 Mtoe,  continuing  the 
declining trend since 2019. Slovakia’s FEC in 2024 
is  in  line  with  the  trajectory  to  its  expected 
contribution 
industry  FEC 
increased  slightly  year-on-year,  in  the  medium 
term  it  has  decreased  substantially  (by  17.0% 
since  2019),  mainly  due  to  a  decrease  in  activity 
and  large  technical  energy  savings.  In  services  a 
year-on-year  increase  of  FEC  has  reduced  the 
decreasing  trend  (− 6.4%  since  2019),  whereas  it 
has  continued  in  both  transport  (− 7.2%  since 
2019)  and  the  residential  sector  (− 15.8%  since 
2019). 

in 

recovery 

instruments. 

Slovakia promotes investments that enhance 
industrial  competitiveness  and  economic 
diversification  through  EU-funded  schemes 
and 
Dedicated 
programmes  such  as  Green  for  Enterprises, 
supported by the European Regional Development 
Fund, the RRP and support from the Just Transition 
Fund for the decarbonisation of the heating sector, 
including  district  heating  decarbonisation,  help 
firms  –  especially  SMEs  –  reduce  energy  costs, 

adopt  clean  technologies  and  increase  resilience, 
contributing  to  lower  emission  intensity  and  a 
more diversified, future-proof industrial base. 

As  from  2026,  regulated  prices  have  been 
increased  to  EUR 72/MWh;  the  majority  of 
the  population  continue  to  benefit  from  this 
price intervention (201). This is  likely to diminish 
the incentives for energy efficiency in the majority 
of  households.  Between  2019  and  2024,  FEC  in 
residential  buildings  decreased  by  15.8% (202), 
while  the  long-term  renovation  strategy  planned 
for a 16% reduction by  2030 (compared to 2016 
levels).  This 
in 
particular,  by  the  energy  savings  achieved  by 
various  means  and  measures  and  by  changes  in 
heating behaviour (203). 

reduction  has  been  driven, 

Given  that  37%  of  FEC  in  Slovakia  is  in 
buildings  – and  hence  the  importance of  the 
sector  to  enhancing  energy  security  – 
Slovakia  is  encouraged  to  submit  its  draft 
national building renovation plan pursuant to 
the  recast  EPBD  in  order  to  ensure  a  clear 
and predictable pathway towards an energy-
efficient  and  decarbonised  building  stock. 
Heating and cooling accounted for 77% (204) of the 
country’s residential FEC in 2023, with renewables 
supplying  20% (205)  of  the  total  energy  used  for 
heating  and  cooling  in  all  sectors.  Around  8 200 
heat pumps were sold in 2024, a decrease of 31% 
compared  to  the  previous  year,  taking  the  total 
stock  of 
to  around 
installed  heat  pumps 
63 800(206).  Electricity  in  Slovakia  was  3.3  times 
more expensive than gas in the first half of 2025, 

(201) https://ekonomika.pravda.sk/ludia/clanok/780558-energie-
na-slovensku-zdrazeju-pre-vsetkych-vyssie-ucty-cakaju-aj-
ludi-ktori-dostanu-energopomoc/.  

(202) Based on Eurostat energy balances, adjusted for compliance 
with the methodology used for monitoring the progress 
made towards the Energy Efficiency Directive (Directive (EU) 
2023/1791) targets. 

(203) Based on the breakdown tool of the ODYSSEE-MURE EU 
project available at https://www.indicators.odyssee-
mure.eu/decomposition.html. 

(204)Eurostat, 2025, 

https://data.europa.eu/data/datasets/uvygjkxev6pywqwbgmg
wyg?locale=en. 

(205)Eurostat, 2025, 

https://ec.europa.eu/eurostat/databrowser/product/view/SDG_
07_40?lang=en&category=sdg.sdg_07. 

(206) European Heat Pump Association (EHPA), 2025, 

(200) Slovakia | European Energy Communities Facility. 

https://ehpa.org/market-data/. 

92 

 
 
 
meaning that end users save energy but pay more 
if  they  choose  a  heat  pump  for  heating.  Most  of 
the  last  coal-based  heat  sources  for  district 
heating  were  replaced  in  2023  by  renewable 
energy  sources  and  heat  pumps.  Geothermal 
energy is to play a relevant role in addressing the 
challenges  of  decarbonising  heating  and  cooling 
systems in Slovakia. 

Security of supply and diversification 

transport 

but  mostly 

Slovakia’s  dependence  on  Russian  fossil 
fuels remains high, with efforts to accelerate 
the  diversification  of  fossil  fuel  supply  and 
to phase out dependence on Russian sources 
progressing  slowly.  Regulation  (EU)  261/2026 
lays  down  a  gradual  phaseout  of  Russian  natural 
gas imports to the EU. In 2025, more than 50% of 
natural  gas  and  over  80%  of  oil  was  of  Russian 
origin.  The  country’s  energy  security  priorities 
include  increasing  energy  security,  diversifying 
routes  and 
energy  sources  and 
promoting  energy  storage.  Slovakia  reduced  gas 
demand  by  18-20%  between  August  2022  and 
January  2026,  roughly  matching  the  EU  average 
of  around  20%.  Given  that  the  transit  of  Russian 
gas  via  Ukraine  was  stopped  at  the  end  of  2024, 
Slovakia  no  longer  receives  Russian  gas  directly 
via  Ukraine 
from  Hungary 
(TurkStream).  Slovenský  plynárenský  priemysel 
(SPP)(207)  renewed  and  expanded  portfolio  deals 
covering  around  70%  of  customer  needs  from 
non-Russian sources, focusing on LNG and western 
European hubs. Diversification contracts exist with 
BP,  ExxonMobil,  Shell,  Eni  and  RWE.  A  short-term 
pilot deal was signed in November 2024 between 
SPP  and  SOCAR,  the  State  Oil  Company  of  the 
Republic of Azerbaijan, for December deliveries via 
the  Austria/Trans-Balkan  pipeline  and  a  potential 
extension  may  happen  post-evaluation.  Despite 
Russia’s  war  of  aggression  against  Ukraine, 
Slovakia  is  still  dependent  on  oil  deliveries  from 
(under  EU 
Russia  via  the  Druzhba  pipeline 
exemption  until  mid  2025  and  disrupted 
in 
January  2026  due  to  Russian  air  attacks  in 
Ukraine) and has an oil contract with Russia that is 
valid  until  31 December  2029.  In  late  2025, 
Russian  crude  oil  imports  accounted  for  around 
90%  of  all  crude  oil  consumed.  The  sole  refinery 

(207) The state-owned gas supplier. 

93 

operator (MOL) announced that it would be able to 
fully refine non-Russian crude oil in 2026. Croatia 
offered alternatives via the Adria pipeline. 

Slovakia  will  need  to  increase  its  efforts  to 
complete  phasing  out  Russian  natural  gas 
imports  and  preparing  the  phaseout  of 
Russian  oil 
imports.  Slovakia’s  Ministry  of 
Economy  presented  plans  on  national  gas  and  oil 
supply diversification, as required by the REPower 
Gas  Regulation.  The  Slovak  gas  industry  has 
signed  memoranda  of  understanding  with  a 
number  of  companies  from  Czechia,  Germany, 
Greece and Poland for access to US LNG supplies 
via  regional  terminals,  prioritising  competitive 
pricing  and  transmission  fees  for  households  and 
industry. 

In 2025, Slovakia’s gross inland consumption 
was  estimated  to  feature  nuclear  power  as 
the  dominant  source,  at  around  29%, 
followed  by  natural  gas  (around  23%),  oil 
(around  21%),  renewables,  incl.  biofuels, 
hydro  and  solar  (around  12%)  and  solid 
fossil  fuels  (around  12%) (208)(209).  In  2024, 
electricity  accounted for 20.3% of Slovakia’s final 
energy  consumption,  below  the  EU  average  of 
23.4%, and this share has decreased slightly in the 
past  decade (210),  partly  due  to  an  unfavourable 
electricity-to-gas  price  ratio  that  disincentivises 
electrification  and  cost-effective  decarbonisation. 
When it comes to households, electricity  accounts 
for  21.5%  of  final  energy  consumption,  while  in 
industry  it  represents  27.4%  (see  also  Annex 7). 
For  the  transport  sector,  this  share  remains 
in 
negligible, 
electrification across sectors is required in order to 
cost-effectively  decarbonise  the  economy  and 
bring 
renewable 
generation to consumers. 

the  benefits  of  affordable 

at  2.4%. 

progress 

Further 

Slovakia’s electricity mix has seen a growing 
share  of  nuclear  energy,  rising  to  65.9%  in 
2025. Slovakia is continuing to expand its nuclear 
fleet, with Mochovce 3, the newest nuclear reactor, 
having  been  connected  to  the  grid  and  reaching 

(208) Gross inland consumption (Eurostat). 

(209) Electricity and heat are excluded in order to avoid double 

counting.  

(210) CAGR (compound annual growth rate) of −0.87% between 
2015 and 2024 and minimum/maximum share of 19.8% 
and 22.0% respectively. 

 
 
 
before  2030  represented  0.04% (212)  of 
Slovakia’s  GDP (]).  However,  Slovakia’s  2023 
effective carbon rate (213) averaged EUR 64.05 per 
tonne  of  CO₂,  below  the  EU  weighted  mean  of 
EUR 84.80(214).  

reactors 

(AMRs).  Newcleo  aims 

the  government  announced  plans 

full  production  at 
the  end  of  2023.  The 
construction  of  Mochovce  4,  the  fourth  reactor  at 
the  site,  is  expected  to  be  completed  in  2026.  In 
2024, 
to 
construct an additional reactor at the existing site 
in  Jaslovské  Bohunice,  with  construction  to  be 
launched  in  2032.  In  January  2025,  framework 
contracts  were  announced  between  Newcleo  and 
JAVYS and VUJE for the construction of advanced 
to 
modular 
construct  up  to  four  lead-cooled  fast  reactors 
(LFRs)  that  will  make  it  possible  for  Slovak  spent 
nuclear fuel to be used as fuel. Diversification has 
progressed  with  Slovenské  elektrárne  signing  an 
alternative fuel supply contract with Westinghouse 
Sweden and Framatome for its VVER-440 reactor 
fleet.  These  steps  will  reduce  dependence  on 
nuclear  fuel  originating  in  Russia.  It  is  important 
for  Slovakia  to  continue  efforts  to  diversify 
imports  of  nuclear  fuel.  Slovakia  is  pivoting  from 
coal  to  nuclear  by  integrating  Small  Modular 
Reactors (SMRs) into its long-term energy strategy. 
Success  hinges  on  adapting 
regulatory  and 
licensing 
securing  multi-site 
financing,  and  upgrading  grid  infrastructure.  Key 
enablers  include  international  partnerships  and 
repurposing former industrial sites to support local 
supply chains. 

frameworks, 

In  response to  rising  energy prices  following 
the  regional  crisis 
in  the  Middle  East, 
Slovakia has restricted diesel sales to a full 
tank  and  one  10-litre  container,  and 
regulated diesel prices for foreign-registered 
vehicles  based  on 
regional  averages. 
Slovakia  extended  the  declared  state  of  oil 
emergency by additional 30 days, with effect 
from  17  April  2026.  Slovakia  has  also  reduced 
VAT  on  electricity  to  19%,  introduced  50%  excise 
refunds  for  farmers,  and  lifted  the  ban  on  diesel 
exports.  

Fossil fuel subsidies 

In  2024,  environmentally  harmful  (211)  fossil 
fuel  subsidies  without  a  planned  phaseout 

(211) 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. 

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

(213) 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. 

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

94 

 
 
 
 
 
 
ANNEX 10: CLIMATE ADAPTATION, PREPAREDNESS AND ENVIRONMENT 

organic 

farming 

increasing 

Slovakia  remains  vulnerable  to  extreme 
weather  events,  which,  coupled  with  nature 
degradation,  have  a  significant  impact  on 
Slovakia  and  its  economy.  Some  progress  was 
made  last  year  in  developing  resilience  and 
adaptation policies, but challenges remain. Despite 
having  a  large  proportion  of  protected  areas, 
effective  conservation  measures  are  not  well 
implemented.  The  current  Slovak  government  has 
diverted  funding  away  from  nature  and  diversity 
protection  and  has 
relaxed  environmental 
protection  laws.  Slovakia  is  making  strides  in 
transitioning  to  sustainable  agricultural  practices, 
including 
and 
implementing  stricter  environmental  standards. 
these  efforts  are  undermined  by 
However, 
biodiversity 
insufficient 
conservation,  putting  Slovakia’s  compliance  with 
global biodiversity commitments and its long-term 
socio-economic  development  at  risk.  The  water 
quality  of  Slovakia’s  surface  water  bodies did  not 
significantly  improve  in  2025.  Its  wastewater 
treatment also remains a cause for concern. While 
some  progress  has  been  achieved  last  year, 
is  still  facing  challenges  especially 
Slovakia 
concerning  water  management  and  treatment, 
with  many  municipalities  still  not  covered,  and 
nature restoration, where 20% of its lands are still 
to  be  restored.  For  Slovakia,  the  2025  country 
specific  recommendations  (CSRs)  highlighted  the 
by 
increase  water 
need 
and 
nature-based 
mainstreaming 
finalising the zonation of nature-protected areas. 

resilience 
solutions 

investment 

to 

in 

Climate adaptation and preparedness 

events, 

including 

Slovakia  is  vulnerable  to  the  impacts  of 
climate  change  resulting  from  extreme 
weather 
increased 
precipitation  and  rising  temperatures,  which 
increase  the  risk  of  flooding.  Based  on  recent 
measurements, Slovakia - together with four other 
EU  Member  States  -  belonged  to  a  group  of  EU 
countries, in which the highest burnt area ever was 
recorded  by  November  2025(215),  highlighting  the 
growing vulnerability to wildfires (216). Climate risks 
directly  affect  Slovakia’s  economy  and  society. 

(215) countryprofile 

(216) Ongoing climatic change increases the risk of wildfires. Case 

study: Carpathian spruce forests - ScienceDirect 

95 

in  economic 

Between  1980  and  2024,  Slovakia  recorded  EUR 
losses  caused  by 
2.549  billion 
extreme weather- and climate-related events (GDP 
at  current  prices).  However,  only  4%  of  the 
economic  damages  over  that  period  were  insured 
(217).  Slovakia  has  one  of  the  lowest  rates  of 
insurance coverage against weather- and climate-
related  extreme  events  in  the  EU  (4%  vs  EU27: 
19%).  Projections  for  climate-related  economic 
losses  in  Slovakia  toward  2050  indicate  that 
Slovakia  will  have  to  invest  EUR  788  million  per 
year up to 2050 (218). Based on the estimates in a 
recent  study  commissioned  by  DG  CLIMA  this 
would  have 
in 
infrastructure retrofitting and reinforcement (more 
than  55%  of  the  total),  followed  by  ecosystems 
restorations  (around  27%  of  the  total),  while 
investments  in  the  health  and  the  resilience  of 
agriculture  play  a  smaller  role  than  in  other  EU 
Member States (219). 

first  and 

foremost 

to  be 

(in 

The  national  adaptation  framework  is  being 
further  developed.  An  important  step  was  the 
approval  of  the  national  adaptation  plan  (NAP)  in 
2021,  which  sets  out  the priorities  for  adaptation 
in  the  sectors  identified  as  vulnerable  to  climate 
change 
particular  water  management, 
agriculture,  forestry,  nature,  health  and  urban 
planning).  A  comprehensive  assessment  climate 
risk  and  vulnerability  assessment  was  completed 
is  available  at  www.klima-
in  2024  and 
adapt.sk/narodna-adaptacna-strategia. 
Progress 
on the climate Plan, referred to in the Government 
Manifesto of October 2023, has stalled at least for 
the  year  2026.  It  is  unclear  if  the  law  will  be 
the  current 
adopted  during 
government. 

tenure  of 

the 

The  national  adaptation  strategy 
(NAS)  was 
drafted  in  2025,  but  has  not  yet  been  officially 
adopted  by  the  government.  A  LIFE  project 

(217) Economic losses from weather- and climate-related 

extremes in Europe | Indicators | European Environment 
Agency (EEA). 

(218) Climate-related economic losses | Slovakia | Europe's 

environment 2025 (EEA). 

(219) European  Commission  (2026),  Assessment  of  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. 

 
 
 
 
 
 
supporting  the  implementation  of  the  strategy 
entitled  NatAdaptSK  (total  amount  approximately 
EUR  17  million  over  10  years)  (220)  was  launched 
on  1st  of  January  2026.  It  focuses  on  creating  a 
framework for implementation of the NAS as well 
as  is  accompanying  action  plan  through  nature-
based  solutions  in  sustainable  and  resilient  water 
management  agriculture,  forests,  biodiversity, 
human settlements and health. This should lead to 
the 
decreasing  vulnerabilities  and  enhancing 
overall adaptive capacity to cope with the negative 
consequences  of  climate  change  well  beyond  the 
validity of the current adaptation strategy. Actions 
included in the strategy are also supported via the 
RRP,  which  includes  EUR  159  million  in  funding 
dedicated  to  adaptation.  Key  actions  focus  on 
resistance, 
transforming 
updating  urban 
infrastructure,  and  promoting 
sustainable agriculture to mitigate climate impact. 
Looking  at  the  subnational  level,  the  share  of 
Slovakia’s  population  covered  by  EU  Covenant  of 
Mayors  (221)  signatories  stood  at  18  %  (vs  EU27: 
34  %)  in  2024.  Four  of  the  signatories  have 
submitted a sustainable energy and action plan as 
well  as  one  monitoring  report,  which  means  that 
implementation can be further improved. 

for  drought 

forests 

Climate proofing has not been systematically 
applied across sectors and key infrastructure 
so  far.  Despite  advances  in  climate  monitoring 
and  modelling,  Slovakia  faces  challenges  in  the 
effective  implementation  of  adaptation  solutions. 
to 
As  mentioned 
the 
the  conclusions 
in 
assessment  of  Slovakia's  progress 
towards 
adaptation  under  European  climate  legislation, 
Slovakia  has  continued  to  develop  its  climate 
monitoring 
but 
and  modelling 
tools, 
methodological  gaps 
the  monitoring  of 
in 
adaptation  and  climate  risks  remain.  Although 
inform 
enhanced 
decision-making in specific sectors, there is limited 
capacity for systemic risk assessments. Challenges 
in 
into 
practicable solutions therefore remain. 

translating  climate 

climate-observation 

information 

tools 

risk 

The  climate  vulnerability  and  risk  analysis 
has not identified any further risks that were 
not reported in 2021, and the reported risks 
and sectors appear to be consistent with the 
results  of  independent  analysis  by  the  Joint 

it 

Research  Centre  and  the  country’s  own 
national  risk  assessment.  Guidelines  are 
available  on  how  to  monitor  and  evaluate 
adaptation  policy,  but 
is  still  difficult  to 
determine how much public money is spent overall 
on  climate  adaptation  and  to  measure  results. 
Furthermore, personnel changes at the Ministry of 
the  Environment  during  the  tenure  of  the  current 
the  Ministry's 
government  have  weakened 
expertise  capacity  and,  as  a  result,  finding 
sufficient  financing  from  appropriate  sources  in 
Slovakia  and  via  EU  funding  remains  a  challenge 
in  sectors  that  need  to  adapt.  Other  barriers  to 
successful 
to 
insufficient funding, are low awareness at regional 
and  local  level  and  an  inadequate  degree  of 
for 
cooperation 
interministerial 
mainstreaming  climate  adaptation  into  sectoral 
policies  and  plans).  Further  efforts  are  needed  to 
enhance  the  climate  resilience  of  infrastructure 
and  to  make  more  progress  on  adaptation 
solutions. 

implementation, 

(especially 

addition 

in 

Slovakia  needs  to 
improve  the  climate 
resilience  of  TEN-T  networks  to  prevent 
damages and socio-economic losses resulting 
from  climate  extremes.  According  to  a  Support 
study  on  the  climate  adaptation  and  cross-border 
investment  needs  to  realise  the  TEN-T  network 
(222)  published  by  the  Commission  in  December 
2024,  the  vulnerability  of  the  TEN-T  network  in 
Slovakia to climate change is assessed to be high. 
This is mainly driven by a lack of preparedness in 
terms  of 
in 
maintaining  and  modernising  ageing  transport 
infrastructure that make it less resilient to climate 
shocks,  and  logistical  capacity.  The  study  shows 
that 
the 
infrastructure  from  weather-related  events  in  the 
past  have  come  from  floods  and  storms,  as  well 
as extreme heat. 

institutional  capacity,  challenges 

the  most  significant 

impacts  on 

Intense  rainfall  events  have  frequently 
landslides  that  sever  critical 
triggered 
transport  links.  A  notable  example  occurred  in 
July  2024,  when  extreme  storms  caused  a 
massive  landslide  on  the  main  rail  corridor  near 
international  traffic. 
Rimavská  Sobota,  halting 
During  the  record-breaking  heatwaves  of  2022 
and 2023, Slovak Railways (ŽSR) reported multiple 

(220) LIFE 3.0 - LIFE24-IPC-SK-NatAdaptSK/101202890. 

(221) Slovakia | EU Covenant of Mayors. 

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

investment needs to realise the TEN-T network - Publications 
Office of the EU. 

96 

 
 
 
instances of rail expansion and deformation, which 
necessitated emergency speed restrictions and line 
closures  to  prevent  derailments.  The  Danube  has 
also  seen  extreme  volatility;  during  the  2022 
European  drought,  water  levels  at  the  Bratislava 
gauge  dropped  so  low  that  cargo  ships  were 
forced to reduce loads by 50–70% or stop entirely. 
Conversely, heavy rains in early 2024 led to rapid 
flooding that suspended all river traffic for safety 
reasons. 

The  medium-term  risks  identified  in  the  study 
point  to  increasing  impacts  of  extreme  heat  and 
flooding. There is a growing risk of droughts on the 
inland waterways TEN-T network. 

While  the  government  also  focuses  on 
nature-based  solutions,  there  is  significant 
scope  for  more  transparency  and  funding 
allocation,  as  well  as  for  better  targeted 
measures  that  respect  the  protection  of 
established  nature  reserves  in  Slovakia.  The 
current  measures  include  transforming  coniferous 
plantations  into  more  diverse,  climate-resilient 
stands,  adjusting  tree  species  in  lowlands  for 
better  drought  resilience,  and  enhancing  forest 
biodiversity  to  cope  with  changing  conditions.  In 
terms of water resource management, these cover 
strategies  that  aim  to  manage  increased  flood 
risks  and  water  scarcity  by  improving  water 
retention in the landscape and updating river basin 
changing 
to 
management 
hydrological  data.  There  is  scope  to  tap  into  the 
and 
nature-based 
systematically.  Nature-based 
and 
prevention play a key role for increasing resilience. 

solutions  more  widely 
solutions 

address 

plans 

Nature-based solutions offer broad-spectrum 
risk  management.  Tapping  better  into  their 
potential of nature-based solutions could help not 
only  contribute 
to  disaster  management  by 
buffering  hazards  such  as  floods  and  droughts, 
but  also  protect  the  ecosystem  services  provided 
by biodiversity. 

Water resilience 

Slovakia  received  a  CSR  in  2025  on  water 
management  that  achieved  limited  progress 
due  to  existing  inefficiencies,  especially  in 
water  treatment  compliance  with  the  Waste 
Water Treatment Directive (WWTD). 

97 

Water  productivity  in  Slovakia  (223)  stood  at 
EUR 155 per m³ of abstracted water in 2023, 
slightly above the EU-27 average of EUR 153 
per  m³.  Slovakia  water  productivity  shows  a 
positive  trend  in  water  efficiency  since  2020.  The 
Water  Exploitation  Index  Plus  (WEI+)  was  0.23  in 
2023  (224),  signalling  the  absence  of  systemic 
water scarcity. 

Slovakia  faces  challenges  concerning  water 
quality  and  management.  Slovakia’s  surface 
water  bodies 
trend 
concerning  their  ecological  and  chemical  status. 
Slovakia  needs  to  urgently  reduce  the  harmful 
impacts  of  hydropower  plants  installed  along  the 
river Hron and other rivers. 

show  a  deteriorating 

Slovakia has 1 351 surface waterbodies and 
106  groundwater  bodies,  divided  over  two 
river  basin  districts  (Vistula  and  Danube). 
Approximately  20%  of  surface  waters  are 
designated as ‘heavily modified’ and about 4 % as 
‘artificial’  (225).  Heavily  modified  and  artificial 
waterbodies  must  reach  good  ecological  potential 
rather  than  good  ecological  status,  which  means 
that  all  measures  must  be  taken  to  mitigate  the 
adverse 
the  sustainable  human 
development  activities  causing  the  waterbody  to 
be  heavily  modified  artificial,  while 
not 
significantly affecting these activities. 

impact  of 

It follows from the assessment of Slovakia’s 
third  river  basin management  plans  (RBMPs) 
that  there  has  been  a  deterioration  in  the 
ecological status of surface water bodies. In 
the third RBMP 48.7% were reported to be in 
good  ecological  status  compared  to  56.2% 
reported in the second RBMP (covering 2015-
2021).  By  2027,  67.7%  of  surface  waterbodies 
are expected to have good ecological status. 

Although data suggest that nutrient pollution 
is decreasing, agricultural eutrophication still 
exerts high pressure on surface waterbodies. 
Hydromorphological alterations, such as disruption 

(223) 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.  

(224) [sdg_06_60] Water exploitation index, plus (WEI+). 

(225) WISE, 2025, Heavily modified water bodies and artificial 

water bodies, Link. 

 
 
of  longitudinal  continuity,  are  another  source  of 
pressure.  Emerging  issues  are  invasive  species, 
sediment management and fish management. 

Similarly,  since  the  second  RBMPs  (covering 
2015-2021),  there  has  been  a  significant 
decrease  in  surface  waterbodies  with  good 
chemical  status  that  passed  from  98%  to 
71%.  This  is  reported  to  be  mostly  due  to 
improved  monitoring  and  increased  confidence  in 
classification. 

In  general,  failure  to  achieve  good  chemical 
status in Slovakia water bodies is mostly due 
to ubiquitous persistent bioaccumulative and 
toxic  substances,  which  are  difficult  to 
address  and  often  have  transboundary 
sources.  In  Slovakia,  these  are  mainly  mercury, 
polybrominated  diphenyl  ethers  and  polycyclic 
aromatic  hydrocarbons.  Pollution  from  industrial 
point  sources 
is  highlighted  as  a  significant 
pressure,  as  well  as  organic  pollution  from 
municipal  point  sources  and 
industry  and 
agriculture. 

bodies, 

groundwater 

Regarding 
the 
monitoring  network  has  been  improved  in 
extent  and  quality,  and  the  status  of  all 
groundwater  bodies  is  now  known.  There  has 
been a significant improvement in the quantitative 
status and chemical status of groundwater bodies. 
In fact, 90.6% of groundwater bodies are reported 
to  have  good  quantitative  status,  showing  a 
significant  improvement  since  the  second  RBMPs. 
The  monitoring  network  has  been  improved  in 
extent  and  quality,  and  there  are  now  no 
groundwater bodies with an unknown status. 

The  analysis  of  Slovakia’s  RBMPs  has 
identified  nutrients  from  agriculture  as  one 
of the main factors limiting the achievement 
of  good  status  of  water  bodies  as  well  as 
meeting  the  Water  Framework  Directive 
objectives. 

(WWTD), 

in 
complied 

Slovakia, 
with 

Regarding  the  Waste  Water  Treatment 
319 
Directive 
agglomerations 
the 
requirements  of  the  directive  in  2020  (see 
Annex  19  for  more  information).  Thirty-seven 
agglomerations,  generating  246  150  population 
equivalent  of  urban  wastewater,  did  not  comply 
with the requirements of the directive. 

Slovakia  can  experience  seasonal  water 
droughts, 
scarcity, 
particularly  in  summer  and  early  autumn  in 
certain rural or infrastructure-limited areas. 

seasonal 

due 

to 

In  2022,  the  Commission  continued  the 
infringement  procedure  against  Slovakia  as 
regards  authorisation  of  small  hydropower 
plants. The focus is on insufficient assessment of 
the Slovak strategic planning document as well as 
the  lack  of  assessment  of  several  constructed 
hydroelectric  power  plants  causing  pressure  on 
water  supply  and  deterioration  of  waterbodies. 
Slovakia  needs  to  take  all  necessary  mitigation 
measures to reduce the harmful impacts of (small) 
hydropower  plants  installed  along  the  river  Hron 
and other rivers. 

the 

to  meet 

Looking  ahead 
the  various 
environmental  targets  under  the  Water 
Framework  Directive  and 
Floods 
Directive,  Slovakia’s  water  investment  gap 
reaches  EUR  223  million  per  year  (0.2  %  of 
GDP)  out of  an investment  need  of  EUR  506 
million,  with  EUR  105  million  linked  to 
wastewater measures. Drinking water measures 
require an additional  EUR 43 million per year and 
the  other  aspects  of  the  Water  Framework 
Directive around EUR 75 million per year over the 
existing levels of financing. 

Nature restoration 

Slovakia  received  a  CSR  in  2025  addressing 
the zonation of nature-protected areas. While 
Slovakia’s  NATURA  2000  is  one  of  the  largest 
networks  in  the  EU,  Slovak  forests  sites  are  still 
facing  high  levels  of  logging  that  is  not  properly 
assessed.  Crucially,  Slovakia  has  not  yet  finalised 
the zonation of national parks. 

Slovakia’s  economy  is  structurally  exposed 
to nature loss and is economically vulnerable 
because  of  its  dependency  on  ecosystem 
services. 

98 

 
Around  60  %  of  Slovakia’s  ecosystems  are 
degraded (226), leading to significant losses in 
services  such  as  climate  regulation,  flood 
control  and  timber  provision.  This  degradation 
is estimated to cost about EUR 20 billion per year 
in  lost  ecosystem  services  –  a  major  economic 
impact  given  the  value  these  services  provide  to 
society and the economy. 

In  fact,  39%  of  Slovakia’s  economic  gross 
value  has  high  direct  dependence  on 
ecosystem services (compared to EU average 
of  44%)  (227).  In  particular  agriculture,  forestry 
and  water-related  industries  are  the  sectors  the 
most dependent on ecosystem services. 

land 
legally  protects  37.4%  of 
Slovakia 
compared  to  the  EU  average  of  26.4%  and  it 
needs  to  restore  up  to  9 649  km2  of  the  land 
habitats listed in Annex I to the Habitats Directive, 
corresponding to up to 19.7% of its land (228). 

its 

Approximately  75%  of  species  and  60%  of 
habitats  in  the  country  are  in  a  poor  or  bad 
conservation  state  due  to  pressures  such  as 
unsustainable agriculture, forestry practices, 
infrastructure  development  and 
invasive 
(229)(230).  These 
issues  undermine 
species 
ecosystem  functioning  and  the  services  they 
support 
(e.g.  pollination,  soil  fertility,  water 
regulation). 

Nature  degradation  is  further  amplified  by 
invasive alien species. The total number of such 
species  of  Union  concern  in  Slovakia  is  28  (231). 
This includes 20 species recorded in the 2022 EIR 
and  8  new  additions.  Of  these  new  additions,  4 
were  already  on  the  Union  concern  list  in  2021, 

(226) OECD (2024), OECD Environmental Performance Reviews: 
Slovak Republic 2024, OECD Environmental Performance 
Reviews, OECD Publishing, Paris, link. 

(227) JRC 2025, The EU economy’s dependency on nature, Link. 

(228) European Commission, 2022, Impact assessment 

accompanying the proposal for a Regulation on nature 
restoration, Link. 

(229) EEA, 2021, Conservation status of species under the EU 

Habitats Directive, Link. 

and  4  were  added 
Implementing Regulation (EU) 2022/1203. 

later  under  Commission 

the 

concerning 

There is a persistent biodiversity investment 
gap  in  Slovakia.  To  meet  the  environmental 
and 
objectives 
restoration  of  biodiversity  and  ecosystems  and 
other  relevant  cross-cutting  measures,  Slovakia’s 
investment  gap  is  estimated  to  be  around  EUR 
416 million per year accounting for more than half 
of 
(EUR  781  million  per  year), 
corresponding to 0.38 % of its GDP.  

the  need 

protection 

Sustainable agriculture and land use 

its 

2030 

To  meet 

Slovakia’s  carbon  removals  exceed  the  level 
of  ambition  needed  to  meet  its  2030  target 
for  land  use,  land-use  change  and  forestry 
(LULUCF). 
LULUCF 
target, additional carbon  removals  of  -0.5  million 
tonnes  of  CO2 equivalent  (CO2eq)  (232). The  latest 
available  projections  show  a  surplus  over  the 
(233). Further 
2030 
investments in healthy forests and soils are key to 
building  resilient bio-based product  value  chains 
and 
competitive 
bioeconomy. In particular, continued improvements 
in the monitoring system of net removal data and 
projections will be crucial in supporting timely and 
effective action in the sector. 

target  of  1  Mt  CO2eq 

enabling 

growing, 

a 

Slovakia’s  functional  urban  area  (FUA)  has 
considerably expanded in the last years with 
a  yearly  net  land  taken  between  2018  and 
2021  that  accounted  for  826 ppm/year  of 
the total urban surface of the country, where 
most  land  has  been  taken  from  arable  land. 
This  ongoing  “land  take”  and  the  associated  soil 
sealing causes less resilient ecosystem, decreased 
carbon 
flood 
protection (234). 

sequestration,  and 

impaired 

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

(230) EEA, 2021, Conservation status of habitats under the EU 

Regulation (EU) 2023/839 Link. 

Habitats Directive, Link. 

(231) European Commission, 2025, Environmental Implementation 

Review, Slovakia Country Report, Link. 

(233) Climate action progress report 2025. Link. 

(234)  EEA,  Land  take  and  land  degradation  in  functional  urban 

areas (2022), link. 

99 

 
 
 
 
Water  quality  pressures  are  intensifying. 
Under the EU Nitrates Directive, 25% of Slovakia’s 
groundwater monitoring stations recorded average 
nitrate  concentrations  exceeding  25 mg/l  (and 
12%  above  50 mg/l,  the  EU  threshold  for  safe 
drinking water) between 2016 and 2019 (235). This 
trend underscores systemic agricultural  pressures, 
despite  Slovakia’s  relatively  low  livestock  density 
of  0.3  livestock  units  per  hectare  in  2023(236), 
compared  to  the  EU  average  of  0.75.  Between 
2018  and  2023,  Slovakia  registered  a  9% 
reduction 
in  agricultural  ammonia  emissions, 
making it one of the countries with the fewest kgs 
of  ammonia  per  hectare  in  Europe  (11.1 kg/ha 
compared  to  EU  average  of  19.1 kg/ha)  (237).  The 
greatest contributor to Slovakia’s unhealthy soils is 
the  loss  of  the  soil‘s  organic  carbon  in  mineral 
soils (60), which affects 23 % of the land and 68 
% of cropland and grassland areas. Unsustainable 
soil erosion by water, wind, tillage and harvest also 
impacts  22  %  of  the  national  territory  and  62  % 
of cropland areas. 

Pesticide  contamination  remains  a  critical 
in  groundwaters,  with  34%  of 
issue 
groundwater  bodies  exceeding  regulatory 
thresholds  for  pesticide  residues  between 
2017 and 2022 (238), a figure well above the 
EU total contaminated area representing the 
19%  of  the  groundwaters.  Pesticides  not  only 
threaten  aquatic  ecosystems  but  also  pose  long-
term risks to human health through contaminated 
drinking  water  and  food  chains.  Accordingly, 
Slovakia  presents  high 
levels  of  pesticide 
contamination  in  soil,  with  51%  of  samples 
analysed  exceeding  0.05 mg  kg  and  11% 
evaluated as extremely polluted (239). 

(235)  EEA, Nitrate in groundwater in Europe (2025), link. 
(236)  Eurostat, Livestock density index, link. 
(237)  Eurostat, Ammonia emissions from agriculture, link.  
(238)  EEA,  Pesticides  in  rivers,  lakes,  and  groundwater  in  Europe 

(2024), link. 

(239)  Vieira et al. (JRC), Pesticides residues in European 

agricultural soils - Results from LUCAS 2018 soil module, 
Publications Office of the European Union, 2023. Link. 

100 

 
 
 
 
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 

101 

Climate adaptation and preparedness:EU-27201920202021202220232024latest dataDrought impact on ecosystems0.380.020.620.260.67-2.76[area impacted by drought as % of total]Forest fires burned area (1)-          85            115          317          -          -           354,510     [burned area in ha. per year]Economic losses from extreme events34            22            41            88            4              114          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 action9              9              9              9              9              18            34               [% of population covered by the EU Covenant of Mayors for Climate & Energy]Water resilience:EU-27201920202021202220232024latest dataWater Exploitation Index Plus, WEI+ (3)0.28          0.26          0.27          0.34          0.23          -4.53            [total water consumption as % of renewable freshwater resources]Water productivity150          147          153          152          155          -151[EUR per m3]Water abstractionWater abstraction by source (% from surface water)41.72%41.87%41.55%40.44%41.37%-Water abstraction by sectorAgricultureElectricity coolingManufactu-ringPublic water supplyMining and QuarryingConstru- ction 4.15%10.07%27.71%56.27%0.09%1.71%Status of water bodies (4)[% of water bodies in a good status]Surface water bodies (ecological)-----41%38%Groundwater bodies (quantitative)-----91%93%Nature restoration:EU-27201920202021202220232024latest dataEcosystem dependency---39%--44%[% of direct dependency]Protected area37.437.437.537.537.426.4[% of terrestrial protected areas]Invasive alien species (IAS)-----2829.2[number of IAS of Union concern]Damage cost of IAS----0.131.69[EUR billion]Eutrophication 303303295[AAE of area at risk of euthrophication]Sustainable agriculture and land use:EU-272012-20182018-2021latest dataYearly net land taken by Member State750          826          670            [ppm of total urban surface per Member State]Land conversion in functional urban area [% of total land taken from 2018-2021]Arable land63%Complex and mixed cultivation1%Forests6%Herbaceous vegetation associations4%Open spaces with little or no vegetation0%Pastures22%Permanent crops3%Water0%Wetlands0%201920202021202220232024latest dataNitrates in groundwater (5)15.815.915.915.916.1[mgNO₃/l]Livestock density0.330.30.75(number of livestock units per hectare of utilised agricultural area)Ammonia emissions 88%86%86%86%87%-94%[% of total utilised agricultural area]Pesticide contamination on rivers and lakes water bodiesrivers7%27%[% of monitoring sites with pesticides exceeding thresholds, 2018-2023]lakesn.d.18%Pesticide contamination in soil 51%57%[% of samples with a concentration over 0.5 mg/Kg⁻¹]Net greenhouse gas removals from LULUCF (6)-4995.2-7179.8-7212.8-7227.2-7775.6--198,421 [ktCO₂-eq] 
 
       
 
points  to  deep  skills  mismatches  across  both 
traditional  sectors (243),(244),(245). 
advanced  and 
Despite  large  pools  of  jobseekers,  many  of  them 
lack  the  required  skills  due  to  limited  upskilling 
and reskilling, while others are unable or unwilling 
to  relocate  because  of  the  low  attractiveness  of 
certain  regions,  including  limited  housing  rental 
options (246).  

for 

ICT 

ICT  sector 

only  4.4% 

The lack of adequate digital skills among the 
the  broader  population 
workforce  and 
remains  a  challenge.  The 
is 
specialists 
underdeveloped,  with 
accounting 
total 
of 
employment  in  2025  (compared  with  an  EU 
(247),  and  companies 
average  of  5.0%) 
struggling to hire or train their employees. At 
the  same  time,  53.6%  of  the  population  had  at 
least  basic  digital  skills  in  2025  (below  the  EU 
average  of  60.4%).  Older  population  groups, 
individuals with lower education levels and women 
were  groups  with  relatively 
lower  shares  of 
individuals with at least basic digital skills (248). 

FAIRNESS 
ANNEX 11: LABOUR MARKET 

While  Slovakia’s  overall 
labour  market 
performance  is  strong,  remaining  structural 
weaknesses  limit  its  capacity  to  support 
balanced  and  sustainable  economic  growth. 
Persistent regional disparities, low labour mobility, 
underused human capital and shrinking workforce 
hinder growth prospects and competitiveness. The 
2025 
for 
Slovakia  highlighted  the  need  to  strengthen  the 
labour  market  participation  of  underrepresented 
flexible  work 
introduce  more 
groups  and 
arrangements for parents. 

recommendations 

country-specific 

rate 

remain. 

regional 

reached  78.1% 

Employment  is  comparatively  high  overall, 
The 
challenges 
but 
employment 
in  2025, 
exceeding  both  the  2030  national  target  (76.5%) 
and  the  EU  average 
(76.2%).  However,  the 
aggregate  figures  mask  pronounced  territorial 
imbalances.  Employers  in  western  Slovakia  face 
persistent labour  shortages,  while  eastern  regions 
continue  to  record  high  unemployment  despite  a 
large  pool  of  job  seekers.  Parts  of  western 
Slovakia  (the  Trnava,  Trenčín  and  Žilina  regions) 
and  Bratislava  have  a  high  employment  rate 
(84.3% in the Bratislava Region), high incomes and 
robust  labour  demand,  whereas  eastern  regions 
(Prešov,  Košice)  have  a  low  employment  level 
(72.5%)  and  a  limited  supply  of  quality  jobs.  Low 
mobility and a small number of jobs being created 
locally  leave  the  labour  potential  untapped  in 
eastern  regions.  While  Bratislava  has  186% more 
vacancies  per  one  unemployed  person  than  the 
national average, eastern Slovakia has 54% fewer 
of them (240).  

In  several  regions,  high  unemployment 
coexists  with  unfilled  vacancies  for  skilled 
professionals.  Regions  with  high  unemployment 
(Košice,  Prešov,  Banská  Bystrica)  face  labour 
surpluses  and  shortages  simultaneously,  with 
unmet  demand  for  skilled  workers  in  engineering, 
healthcare 
Annex 15),  manufacturing, 
transport  and  IT (241),  alongside  an  oversupply  of 
low-skilled 
labour.  Additionally,  over  half  of 
enterprises  in  Slovakia  (54%)  state  that  their 
workforce has some degree of skills gap (242). This 

(see 

(240) OECD, 2024, Job creation and local economic development. 

(241) AmCham Slovakia, 2025, Skilled workforce needed. 

(242) OECD, 2024, PIAAC Employer Module (also cited in OECD 

Survey of Adult Skills 2023). 

(243) EURES, 2024, Labour market information: Slovakia. 

(244) Inštitút zamestnanosti, 2024, Banská Bystrica Region. 

(245) The  Košice  Region  lacks  engineering/technical  specialists, 
healthcare  professionals 
(doctors,  specialists,  nurses), 
machine  operators,  drivers,  sales  representatives,  and  IT 
staff  (programmers  and  software  engineers);  Prešov  lacks 
drivers,  metal  welders,  machine  assemblers,  healthcare 
professionals  and  hospitality  workers;  Banská  Bystrica  lacks 
workers 
transport,  healthcare,  and 
construction and has a surplus of low-skilled labour. 

in  manufacturing, 

(246) AmCham Slovakia, 2025, Bridging regional labor gaps. 

(247) DESI, 2025, Data on ICT specialists. 

(248) DESI, 2026, Data on at least basic digital skills. 

102 

 
 
 
 
 
 
 
Graph A11.1: Employment rate by region and sex in 
2025 

Source: Eurostat, LFS [lfst_r_lfe2emprt]. 

Persistent  long-term  unemployment  reflects 
labour  market  mismatches  and  underuse  of 
human  potential.  The  unemployment  rate  stood 
at  5.4%  in  2025,  among  the  lowest  levels  in 
recent  years.  However,  long-term  unemployed 
people aged 20-64 (who have been jobless for 12 
months  or  more)  accounted  for  64.7%  of  total 
unemployment  in  2025.  Although  the  long-term 
rate  has  gradually  declined, 
unemployment 
reaching 3.5% in 2024 and 3.4% in 2025, it is still 
substantially higher than the EU average (1.9% in 
2025).  Mobilising  underused  labour  resources  is 
crucial  to  countering  the  effects  of  an  ageing 
workforce  and  the  negative  fiscal  implications  of 
this  trend (249).  Long-term  unemployed  people  are 
likely  to  be  members  of  disadvantaged  groups, 
low-skilled  workers,  people  of  Roma  background 
and  older  workers,  or  residents  of  structurally 
weaker areas.  

Shrinking  workforce  and  constantly  higher 
skill  requirements  are  likely  to  outpace  the 
supply  of  qualified  workers.  Slovakia  is  facing 
the 
adverse  demographic  developments,  as 
number  of  workers  reaching  retirement  age  is 
significantly  higher  than  the  current  supply  of 
young and qualified workers. The total labour force 
in  Slovakia  is  projected  to  increase  by  only  1% 
over  2020–35,  a  rate  significantly  lower than  the 
increase  for  the  EU (250).  The 
expected  10% 
population  aged  25-44  is  forecast  to  shrink 
sharply, while the population aged 50-59 and 65+ 
is  forecast  to  grow  quite  strongly.  Slovakia  is 
expected to have over one million job openings by 

(249) OECD, 2022, Economic surveys: Slovak Republic. 

(250) European Centre for the Development of Vocational Training 

to 

increase 

2035, driven primarily by demand for replacement 
(replacing  retirees,  emigrants,  etc.)  rather  than 
new  job  creation.  The  number  of  new  jobs  is 
forecast 
by  118 000,  while 
replacement  demand  is  forecast  to  be  around 
934 000, which cannot be matched by the supply 
of qualified graduates (251). Over half (52%) of the 
total  number  of  job  openings  will  require  high-
level  qualifications,  slightly  less  than  half  (47%) 
will  require  medium-level  qualifications  and  just 
1%  will  require 
low-level  qualifications.  The 
ongoing  coordination  efforts  are  focused  on 
‘digital  divide’  and 
bridging  a 
addressing  a  high  skills  mismatch:  over  half  of 
future 
high-level 
qualifications that the current workforce is not yet 
equipped to meet. 

openings  will 

significant 

require 

Distressed  regions  are  trapped  in  persistent 
socio-economic  stagnation,  characterised  by 
long-term  unemployment  rates  and 
high 
limited  structural  transformation.  While  the 
traditional  mining  towns  in  the  Banská  Bystrica 
Region (252)  have 
largely  transitioned  towards 
tourism  and  services,  the  ‘mining  belt’  in  the 
south-east  continues  to  be  held  back  by  mono-
industrial  structures  (with  ‘single-employer’  towns 
such  as  Jelšava  and  Lubeník),  weak  connectivity 
and  a  widening  skills  mismatch (253).  The  most 
acute  labour  market  distress  with  the  highest 
unemployment  is  observed  in  Rimavská  Sobota 
and  Revúca  (Banská  Bystrica  Region),  Kežmarok 
and  Vranov  nad  Topľou  (Prešov  Region),  and 
Rožňava  (Košice  Region) (254).  The  Just  Transition 
Fund  for  the  2021-2027  funding  period  supports 
areas  most  negatively  affected  by  the  transition 
towards  a  climate-neutral  economy  (Rimavská 
Sobota,  Revúca,  Rožňava,  Upper  Nitra),  but  its 
effects 
It  has  effectively 
accelerated  the  coal  phase-out  in  Upper  Nitra 
(Trenčín  region),  but  its  impact  in  the  structurally 
distressed zones of Rimavská Sobota, Revúca and 
Rožňava  has  been 
limited  by  administrative 
capacity  and  the  lack  of  large  anchor  projects  to 
replace the declining industries. 

remain  uneven. 

(251) European Centre for the Development of Vocational Training 

(Cedefop), 2025, Skills forecast. 

(252) Banská Štiavnica, Kremnica, Banská Bystrica, Nová Baňa, 

Pukanec, Ľubietová, Banská Belá. 

(253) Inštitút zamestnanosti, 2025, NUTS3 regions of Slovakia. 

(Cedefop), 2025, Skills forecast. 

(254) Inštitút zamestnanosti, Labor statistics 2025/2026. 

103 

0102030405060708090100Bratislava RegionWestern SlovakiaCentral SlovakiaEastern SlovakiaTotalMalesFemales 
      
 
 
to  ALMPs, 

Total  spending  on  active  labour  market 
policies  (ALMPs)  remains  low  and  heavily 
reliant  on  EU  funding.  Under  the  European 
Social  Fund  Plus  (ESF+),  around  EUR 700 million 
including 
has  been  allocated 
employment  support,  skills  development,  labour 
market  inclusion  and  measures  for  young  people 
neither  in  employment  nor  in  education  and 
training  (NEETs)  (under  the  Youth  Guarantee 
EU 
scheme).  Despite 
support, 
evaluations 
effectiveness, 
particularly  for  disadvantaged  groups,  and  a 
persistent  lack  of  sustainable  funding  from  the 
national  budget  (255).  Moreover,  ALMPs  are  often 
insufficiently targeted and inconsistently delivered, 
which  limits  their  impact  and  prevents  lasting 
integration  of  disadvantaged  groups  into  the 
labour market. 

substantial 
limited 

reveal 

Implementation  of  the  Youth  Guarantee 
scheme  is  progressing  well,  but  differences 
across regions and population groups persist. 
The  proportion  of  young  people  (aged  15-29) 
neither  in  employment  nor  in  education  and 
training  (NEETs)  declined  overall  between  2020 
and  2024,  but  increased again  in  2025  to  11.1% 
(equal to the EU average of 11.1%). The NEET rate 
in rural areas reached 13.2% (EU: 12.2%) against 
8.4%  (EU:  10.3%)  in  cities (256).  The  rural–urban 
gap  reflects  persistent  regional  disparities  and 
higher  exclusion 
rural  youth. 
risks  for 
Structural  challenges  also  remain  acute  among 
specific  groups.  These  include  a  high  NEET  share 
among women (12.7% vs 9.5% among men) (257), 
low-skilled  people  and  vulnerable  unemployed 
young  people,  typically  from  marginalised  Roma 
communities,  with  63%  of  young  Roma  people 
aged 16–24 neither in employment nor education 
and  training (258).  Critically  high  NEET  rates  are 
also  observed  among  young  Roma  women 
(69%) (259). More than 40% of young persons with 
disabilities  are  neither  in  employment  nor  in 
education and training (43% in 2023), resulting in 
a  low  rate  of  transition  to  employment  and  a 
persistent  disability  employment  gap.  Slovakia 

the 

(255) OECD, 2024, Economic surveys: Slovak Republic. 

(256) Eurostat, 2026. 

(257) Eurostat, 2026. 

(258) EU SILC, 2024/2025. 

(259) Policy Department for Economic, Scientific and Quality of 

Life Policies, 2021, The social and employment situation of 
Roma communities in Slovakia. 

uses a range of outreach tools (social work, online 
platforms,  targeted  campaigns),  but  marginalised 
groups,  especially  young  Roma,  remain  under-
reached.  While  the  coverage  of  young  people 
neither  in  employment  nor  in  education  and 
training by the Youth Guarantee scheme increased 
from  38.5%  to  40.9%  in  2024,  it  remains  below 
the  EU  average  of  41.3% (260).  Uneven  coverage, 
insufficient  coordination 
limited  staffing  and 
public 
key 
among 
employment 
institutions, 
employers)  weaken 
the  scheme’s  outreach. 
Developing  regional  social  economy  ecosystems 
could  help  strengthen  effective  work  integration 
and upskilling capacity. 

services,  education 

institutions 

(ministries, 

Roma employment outcomes are significantly 
below  the  outcomes  for  general  population. 
Despite  substantial  EU  support (261),  economic 
activity  and  employment  in  marginalised  Roma 
communities  remain  critically  low,  although  there 
are  signs  of  progress.  The  employment  rate 
among Roma aged 16–24 stands at only 30% (up 
from  23%  in  2020),  while  the  employment  of 
Roma women is significantly lower (21%, up from 
14%  in  2020) (262).  The  gender  employment  gap 
between  marginalised  Roma  men  and  women  is 
17% (263),  which  is  substantially  higher  than  the 
overall gender employment gap in Slovakia (8.9%) 
and higher than the average gap in the EU (10%). 
The  Roma  people  are  still  largely  excluded  from 
the  mainstream  labour  market.  Some  29%  of 
Roma aged 16 and above who were looking for a 
job  reported  experiencing  discrimination  due  to 
their  ethnicity  (down  from  33%  in  2020) (264). 
Many ‘Roma‑targeted’ jobs remain segregated and 
limited  to  low-skilled,  informal,  seasonal  roles  or 
positions  within  the  Roma  communities,  such  as 
community  or  social‑work  assistants (265).  These 
limited  opportunities  to  build  up 
jobs  offer 
meaningful skills, leaving most marginalised Roma 
households  at  risk  of  poverty.  Flagship  initiatives 
such  as  Development  Teams  I  (EUR 60.5 million 

(260) Joint Employment Report, 2025. 

(261) The Office of the Plenipotentiary for Roma Communities 

coordinates Roma inclusion and manages EUR 400 million in 
EU funding (ESF+, ERDF), Programme Slovakia 2021–2027. 

(262) EU SILC, 2024/2025. 

(263) EU SILC, 2024/2025. 

(264) EU SILC, 2024/2025. 

(265) Roma Civil Monitor, 2025. 

104 

 
 
 
under  the  ESF+) (266)  supported  employment  for 
about  400  Roma,  while  broader  programmes  in 
2024  employed  around  2 500  Roma  and  funded 
scholarships (267),(268)  for  them.  However,  audits 
and  civil  society  reports  point  to  weak  impact 
involvement  and 
assessments, 
uneven implementation (269),(270). 

limited  Roma 

Insufficient  labour  market  integration  of 
non-EU  nationals  reflects  untapped  human 
potential  and  constrains  competitiveness. 
Non-EU  nationals  represent  5.1%  of  Slovakia’s 
population  (278 595  people),  the  majority  of 
whom are Ukrainians (271),(272). Despite the growing 
numbers of foreign nationals, Slovakia struggles to 
convert  migration  into  relief  for  labour  and  skills 
shortages.  At  the  same  time,  rapid  population 
ageing  and  youth  emigration  deepen  the  existing 
skills gaps and regional disparities. Slovakia scores 
only  39/100  on  the  Migrant  Integration  Policy 
Index (273)  –  well  below  the  EU  average  –  with 
particularly weak results in labour market mobility. 
In  addition,  Slovakia’s  ability  to  attract  global 
talent  is  weak:  it  ranks  58  out  of  69  countries  in 
the  World  Talent  Ranking,  significantly  behind  its 
neighbours,  Czechia  and  Poland.  An  audit  of  the 
causes  of  this  uncovered  prolonged  government 
inaction  on  social  integration  and  listed  weak 
low-quality  data  and 
strategy,  coordination, 
inability to attract highly skilled migrants (low Blue 
Card  uptake)  as  possible  explanations (274). 
from 
Slovakia 
integrating  legally  residing  non-EU  nationals  into 
its  active 
labour  market  policy  programmes, 
including registration, training and wage subsidies. 
A  centralised  coordination  mechanism  would  be 
beneficial,  linking  key  institutions,  supported  by  a 
single  platform  on  employment,  training  and 
rights. 

could  draw  more  benefits 

(266) ESF+, 2025, Development teams bring change for the Roma 

communities in Slovakia. 

(267) Úrad splnomocnenca vlády SR pre rómske komunity, 2025.  

(268) TASR, 2025, V úvode roka plánujú tri národné projekty na 

pomoc rómskym komunitám. 

(269) Supreme Audit Office of the Slovak Republic, 2025. 

(270) Rómske advokačné a výskumné stredisko, 2025. 

(271) Official population statistics available in Eurostat do not 

include people fleeing the war in Ukraine who benefit from 
temporary protection. 

(272) Ministerstvo vnútra SR, 2025. 

to 

risk 

in  OECD 

A  high  share  of  workers  in  energy-intensive 
long-term 
industries  poses  a 
development  and  competitiveness.  Around 
20.1%  of  workers  are  still  employed  in  ‘polluting 
jobs’ that face a greater risk of displacement due 
to  the  green  transition,  compared  with  11.7%  on 
countries (275).  Slovakia’s 
average 
competitiveness  relies  heavily  on  its  automotive 
sector,  which  is  undergoing  a  disruptive  shift 
towards  electric  and  autonomous  vehicles. 
Demand  for  green  jobs  has  been  growing,  with 
large-scale  investments  requiring  thousands  of 
workers  with  advanced  automation  and  electrical 
skills.  However,  ongoing  public  retraining  efforts 
struggle  to  bridge  the  widening  gap  between 
traditional  work  skills  and  the  rapidly  evolving 
industry needs. In places such as Rimavská Sobota 
and  Revúca,  the  available  workforce  often  has 
skills  tied  to  20th-century  manual  mining  or 
agriculture,  which  are  no  longer  relevant  to  the 
growing  green  sectors (276).  Slovakia  risks  losing 
foreign investment in advanced manufacturing by 
becoming a high-cost production hub. Slow labour 
relocation could lower productivity, raise the long-
term unemployment risk and discourage investors 
seeking a skilled and adaptable workforce. 

Not  enough  persons  with  disabilities  are 
active  participants  in  the  labour  market  in 
Slovakia. The disability employment gap remains 
at 23.8 pps (against 24 pps at EU level).  

A large gender pay gap and limited access to 
flexible  work  options  make  it  difficult  to 
combine paid work with care responsibilities. 
Despite efforts towards equality, Slovakia still has 
one  of  the  highest  gender  pay  gaps  in  the  EU 
(15.7% vs EU: 12% in 2023). Women aged 30-49, 
particularly  those  with  children  under  three  years 
of age, experience the highest gender pay gap (277) 
reaching  approximately  18.3% (278).  Employment 
rates  among  mothers  with  small  children  show  a 
similar 
female 
employment  rate  in  Slovakia  is  high  (73.7%  in 
2025),  with  a  moderate  gender  gap  of  8.7%  in 
2025 (EU: 9.6%) (279), only about 40% of mothers 

trend:  although 

the  overall 

(275) OECD, 2023, Job creation and local economic development. 

(276) OECD, 2024/2025, Economic survey of the Slovak Republic. 

(277) National Bank of Slovakia, 2024, Gender wage gaps. 

(278) Economic review, 2025, Analysis of wage differences 

(273) Migrant Integration Policy Index, Slovakia, 2023. 

between women and men in Slovakia. 

(274) Supreme Audit Office of the Slovak Republic (NKÚ SR), 2025. 

(279) OECD, 2024, Economic surveys: Slovak Republic. 

105 

 
 
 
with  two  young  children  are  employed  (EU: 
70%) (280).  Part-time  work,  which  is  an  important 
factor  facilitating  mothers’  participation  in  the 
labour market across the EU, with nearly one third 
(31.7%) of employed women with children working 
part-time, is uncommon in Slovakia (only  4.2% of 
all  employed  people  work  part-time),  reflecting 
much  lower  work  flexibility,  which  probably  drives 
down the employment rate among mothers (281). A 
project  funded  by  the  TSI  will  help  Slovakia  carry 
out  a  comprehensive  analysis  of  the  current 
situation of the early childhood education and care 
system and its impact on women’s employment. It 
will  also  involve  the  development  of  a  national 
framework 
for  affordable  high-quality  early 
childhood  education  and  care  and  a  roadmap  for 
the (re)integration  of mothers  with  children  under 
three  years  of  age 
labour  market. 
Increasing  the  employment  of  mothers  through 
better  childcare,  flexible  work  options  and  a 
smaller  gender  pay  gap  would  help  counter 
workforce  decline  and  support  competitiveness 
(282). 

into  the 

Women are significantly underrepresented in 
green and STEM jobs. Slovak women account for 
24.9% of workers in green-task jobs. Bratislava is 
closest  to  gender  parity  in  green  jobs  (38% 
women),  compared  with  just  18.3%  in  eastern 
Slovakia (283).  Women  represented  only  15.5%  of 
ICT  specialists  in  employment in  2025, marking  a 
decline from the 2024 value of 17.2%. In view of 
the  growing  demand  for  STEM  professionals, 
low  rate  of  female 
failure  to 
participation 
is  a  missed 
opportunity to fill skills gaps and support economic 
growth. 

(see  Annex 13) 

increase  the 

Many  self-employed  people,  including  those 
working  in  agriculture,  have  low  levels  of 
social  protection  and  depend  on  continued 
(post-retirement age) work. Compared with the 
EU  average,  Slovakia  has  a  higher  solo  self-
employment  rate  (12.2%  vs  EU:  9.7%)  but  also  a 
greater  share  of  dependent  self-employment 
(15.5%  vs  EU:  5%) (284)  with  weaker  social 

protection coverage for self-employed people (285). 
Various  professions  are  affected,  for  example 
farmers,  most  of  whom  are  self-employed  and 
who  have  limited  social  protection,  low  pension 
contributions 
to 
and  minimal 
unemployment  benefits (286).  This  contributes  to 
the  decision  to  delay  retirement  and  slows 
generational  renewal.  Coupled  with  structural 
labour  shortages,  this  has  resulted  in  an  ageing 
agricultural  workforce,  with  only  about  20%  of 
farm  holders  being  younger  than  40 (287),  which 
may  undermine  the  sector’s  sustainability  in  the 
long term. 

access 

Two-tier 

conditions. 

Low collective bargaining coverage reflects a 
limited  capacity  for  social  partners  to 
influence  national  wage  standards  and 
working 
collective 
bargaining  takes  place  at  sector  and  company 
levels,  where  multi-employer  and  single-employer 
collective agreements can be concluded. Collective 
bargaining coverage is low, with only about 27.6% 
of  employees  covered  by  collective  agreements. 
Trade union density was among the lowest in the 
EU  (11.8%  in  2022),  while  employer  organisation 
density  was  62.6%  in  2022 (288).  Social  partners 
have  limited  capacity,  reach  and  influence  in 
shaping  wages  and  working  conditions  compared 
with  many  other  Member  States,  even  though 
formal 
(tripartite 
dialogue)  exist.  Slovakia  did  prepare  and  adopt  a 
formal  national  action  plan  to  promote  collective 
bargaining  to  comply  with  the  Directive  on 
Adequate  Minimum  Wages,  also  addressing  the 
requirement  to  increase  coverage  to  meet  the 
80% target.  

consultation  mechanisms 

Implementation  of  Slovakia’s 
country-
specific  recommendations  is  in  line  with  EU 
priorities  but  remains  at  an  early,  project-
driven  stage.  Despite  multiple  ESF+-funded 
inclusion,  childcare  and  skills, 
initiatives  on 
implementing 
requires 
the 
better coordination, employer engagement, results 
monitoring,  nationwide  coverage  and  sustainable 
domestic 
to  expand 
affordable  childcare  (for  children  under  three 
years  of  age)  began  in  early  2026,  but  major 

recommendations 

Initial  steps 

funding. 

(280) OECD, 2022, Economic surveys: Slovak Republic. 

(281) Eurostat, 2026. 

(285) European Research Council, 2022, SHARE Slovakia. 

(282) OECD, 2022, Economic surveys: Slovak Republic. 

(286) European Research Council, 2022, SHARE Slovakia. 

(283) OECD, 2023, Job creation and local economic development. 

(287) Eurostat, 2023. 

(284) European Research Council, 2022, SHARE Slovakia. 

(288) OECD/AIAS ICTWSS v2.0. 

106 

 
 
 
efforts  still  need  to  be  made  to  reach  EU 
participation levels. Some projects targeting digital 
skills,  vocational  excellence,  Science,  Technology, 
Engineering,  Arts,  Mathematics  (STEAM)  pathways 
and  teacher  training  face  long-term  sustainability 
risks in the absence of EU funding.  

107 

 
 
 
ANNEX 12: SOCIAL POLICIES 

Moderate  overall  poverty 
rates  mask 
significant  regional  and  other  disparities. 
Slovakia’s social situation is characterised by deep 
regional 
in  care 
inequalities,  underinvestment 
systems and uneven access to public services. The 
2025 country-specific recommendations called for 
affordable,  quality  long-term  care,  but  challenges 
in  this  area  remain.  National  averages  often 
obscure  severe  deprivation  in  central  and  eastern 
regions,  where  weaker  labour  markets,  lower 
incomes  and 
limited  public-service  capacity 
exacerbate  disadvantages.  Five  out  of  Slovakia's 
eight  regions  have  seen  an  increase  in  the 
proportion  of  the  population  at  risk  of  poverty. 
Marginalised  Roma  communities 
in  Slovakia 
continue  to  face  extreme  poverty  and  social 
exclusion,  with  risks  far  above  national  averages. 
Addressing  these  challenges  will  contribute  to 
fostering  Slovakia’s  competitiveness  and  inclusive 
growth. 

years  of  worsening.  After  worsening  between 
2021  and  2024,  severe  material  and  social 
deprivation  improved  in  2025,  declining  to  7.0% 
from  7.6%  in  2024,  although  it  remained  above 
the EU average of 6.3%. Eastern Slovakia recorded 
the  highest  levels  of  severe  material  and  social 
deprivation  in  2025  at  17.7%,  with  rates  peaking 
in  the  Prešov  region  and  the  Banská  Bystrica 
region.  Other  eastern  and  central  regions  also 
exceeded  the  national  average.  The  Bratislava 
region was the least affected, with fewer than 2% 
of  residents  experiencing  severe  deprivation.  In 
most  western  and  some  central  regions,  the  rate 
remained  below  10%,  highlighting  persistent 
regional  inequalities  in  living  standards  across 
Slovakia.  

Graph A12.1: At-risk-of-poverty or social exclusion 
rate and its components (% of total population) 

Although  Slovakia’s  poverty  and  social 
exclusion  rate  improved,  it  remains  above 
pre-pandemic  levels,  highlighting  persistent 
In  2025, 
social  and  economic  pressures. 
Slovakia  recorded  an  improvement  in  the  risk  of 
poverty  or  social  exclusion  compared  with  2024, 
staying  below  the  EU  average  (20.9%).  Yet,  the 
rate remained higher than before the pandemic. In 
2025, 16.7% (EU: 20.9%) of Slovakia’s population 
and 22.7% (EU: 24.3%) of children under 18 were 
at risk of poverty or social exclusion. After a period 
of  progress  between  2015  and  2020,  Slovakia 
experienced a significant reversal, with the AROPE 
(at-risk-of-poverty  or  social  exclusion) 
rate 
increasing from 13.8% in 2020 to 18.3% in 2024. 
During this period, the poverty indicators worsened 
due  to  rising  living  costs, inflation,  and  increasing 
economic insecurity. In 2025, approximately one in 
six people in Slovakia remained  at risk of poverty 
or 
the 
deterioration observed since the pandemic has not 
yet  been  reversed.  Slovakia  has  committed  to 
reducing  its  AROPE  rate  by  2030,  but  with  more 
adults at risk of poverty or social exclusion than in 
2019,  achieving  this  target  remains  challenging. 
Self-employed people are particularly affected. To 
address  the  multiple  dimensions  of  poverty,  the 
implementation  of  a  comprehensive  approach,  as 
set  out  in  the  EU  anti-poverty  strategy,  can 
support  progress  towards  achieving  the  national 
anti-poverty target.  

confirming 

exclusion, 

social 

that 

Material  and  social  deprivation  showed  a 
modest  improvement  in  2025  after  several 

Source: Eurostat, EU-SILC [ilc_peps01n, ilc_li02, ilc_mdsd11, 
ilc_lvhl11n] 

Minimum income support remains inadequate 
and 
ineffective  at  protecting  vulnerable 
households.  The  minimum  income/subsistence 
support  system  provides  a  basic  safety  net  for 
households  with  income  below  the  subsistence 
minimum 
includes  minimum 
income or cash support, child allowances, housing 
support  and  additional  family  benefits.  However, 
Slovak social benefits provide only a small fraction 
of  what  households  need  to  escape  poverty, 

(289).  This  often 

(289) In Slovakia, the subsistence minimum is calculated as the 
amount of money required to pay for essential goods and 
services such as food, clothing, housing and energy, personal 
hygiene, transport and communication essentials. 

108 

0246810121416182020152016201720182019202020212022202320242025% of populationSKAt-risk-of-poverty-or-social-exclusion rateAt-risk-of-poverty rateSevere material and social deprivationPeople living in low work intensity households 
 
     
 
 
 
covering  only  26.4%  of  the  national  poverty 
threshold  in  2023,  which  is  far  below  the  EU 
average  of  56.3%  (290).  Even  when  a  household 
receives  all  available  social  benefits,  the  total 
amount  reaches  only  about  26%  of  the  amount 
they  need  to  stay  above  the  poverty  line,  which 
particularly  affects  single-parent  families  and 
families  with  children.  For  example,  for  2025–
2026, the monthly subsistence minimum is set at 
EUR  284.13  for  an  adult,  EUR  198.12  for  an 
additional  adult,  and  EUR  129.74  per  child. 
Additionally,  as  social  benefits  are  uniform 
nationwide,  they  often  fall  short  of  meeting  the 
higher  living  costs in  cities  like  Bratislava.  Raising 
inclusion 
benefit 
measures, 
Council 
Recommendation on minimum income, would help 
support the most vulnerable. 

improving  active 
the 

levels  and 
in 

with 

line 

by  sickness  and  unemployment  insurance  on  a 
voluntary  basis.  Both  civil-law  and  seasonal 
workers remain voluntarily insured in most sectors, 
with very low take-up. Unemployed people face by 
far  the  highest  risk  of  poverty  or  social  exclusion 
compared with retirees and other inactive persons, 
particularly unemployed women. In 2025, the rate 
of unemployed adults at risk of poverty positively 
decreased  from  64.1%  in  2024  to  58.5%,  but  it 
remains far above the EU average of 49.3% (292). 
Unemployed  women  (69.8%)  were  significantly 
more  affected  than  men  (57.6%)  (293).  In  2025, 
lowest  net 
Slovakia  had  one  of 
replacement 
of 
after 
unemployment, covering only a small proportion of 
(294). 
previous 
after 
Additionally,  access  to  unemployment  benefits  is 
conditional 
insurance 
previous 
contributions.  

six  months 

the  EU’s 

income 

period 

social 

rates 

that 

on 

Child  poverty  remained  below  the  EU 
average,  despite  a  slight  increase  in  2025. 
The  risk  of  poverty  or  social  exclusion  among 
children  in  Slovakia  positively  declined  between 
2023-2024,  but  increased  slightly  to  22.7%  in 
2025  (EU:  24.3%).  Slovakia  aims  to  reduce  the 
number  of  children  at  risk  of  poverty  or  social 
exclusion  by  21 000  by  2030  compared  with  the 
2019  level  of  207 000.  However,  due  to  a 
significant increase between 2020 and 2022, this 
remains  a  challenge.  To  mitigate  the  impact  of 
poverty  on  children,  Slovakia  is  implementing  the 
European  Child  Guarantee.  Despite  progress  in 
areas  such  as  school  meals,  gaps  remain  in 
guaranteeing  access  for  children  in  need  to  key 
services  such  as  early  childhood  education  and 
(see  Annex  13)  and 
care,  quality  education 
housing.  The  risk  of  poverty  among  the  Roma 
children,  at  around  87%  (291),  remains  critical  due 
to  long-standing  disadvantages  in  education,  jobs 
and living conditions. 

Unemployed  adults  and  older  women  are 
more exposed to poverty and social exclusion 
risks due to gaps in effective access to social 
protection.  For  instance,  people  working  under 
agreements  outside  an  employment  relationship 
and  earning  an  irregular  income  are  only  covered 

report 

in  Slovakia 

Many workers in precarious or informal roles 
fail  to  meet  requirements  to  access  the 
unemployment  benefits,  which  leaves  them 
without  a  safety  net.  About  27.5%  of 
unemployed  people  at  risk  of  poverty  without 
social  benefits 
receive  social  cash  benefits, 
compared with 52.8% for EU-27. According to the 
2024  EU  labour  force  survey,  only  22.8%  of 
people  who  have  been  unemployed  for  less  than 
12  months 
receiving 
unemployment benefits compared with  36.8%  for 
EU-27. Unemployment support typically  lasts only 
six months. Once this expires, individuals transition 
to ‘Assistance in material need,’ a flat-rate benefit 
that is significantly lower and often falls below the 
survival  threshold  for  a  household.  Additional 
poverty  risk  factors 
levels  of 
education, household type, regional disparities and 
gender differences, with women being particularly 
vulnerable.  Specific  groups,  such  as  the  Roma 
community, face systemic barriers, including lower 
educational  attainment 
(see  Annex  13)  and 
discrimination,  which  leads  to  deeper  cycles  of 
poverty during unemployment. Overall, the poverty 
risk  among  people  aged  65  and  over  is  much 
lower  (9.6%)  than  the  EU  average  (19.4%  in 
2024).  However,  women  aged  65+  living  alone 
without children in the same age group are among 

include 

lower 

(290) European Commission, Directorate-General for Employment, 
Social Affairs and Inclusion: The 2025 minimum income 
report – An overview of the implementation of the 2023 
Council recommendation on adequate minimum income 
ensuring active inclusion across EU Member States. 

(291) EU SILC MRC, 2020. 

(292) Eurostat, 2026. 

(293) EU SILC 2024, Chudoba a sociálne vylúčenie na Slovensku. 

(294) The simulation was performed by the European Commission, 
Joint Research Centre, based on the EUROMOD model, J2.0+. 

109 

 
 
 
the  groups  most  at-risk  of  poverty  (30.3%  in 
2024)  (295).  Lifelong  gender  pay  gaps  and  lower 
lifetime  earnings 
to  smaller  pension 
entitlements, and women are more likely than men 
to  take  time  out  of  paid  work  for  caregiving 
reduces  both  pension 
responsibilities,  which 
contributions and savings.  

lead 

Self-employed  people  face  gaps  in  social 
protection  as  they  have  no  access  to 
insurance 
for  accidents  at  work  or 
occupational  diseases.  They  must  opt  in  for 
unemployment  insurance,  but  only  2%  do  so. 
Those below the income threshold must also opt in 
for most types of insurance, and only around 60% 
do  so.  Solo  self-employed  workers  accounted  for 
11.8%  of  total  employment  in  Slovakia  in  2024 
(EU: 9.3%). Almost 30% of them are economically 
dependent,  which  represents  3.2%  of  the  total 
employed population, compared with 1.5% for EU-
27  (296).  Overall,  very  few  self-employed  people 
receive  social  cash  benefits  (when  at  risk  of 
poverty  before  social  benefits):  4.5% vs  11.5%  in 
the EU (297). Around 20% of this group are at risk 
of poverty,  which is just below the EU average  of 
20.9%. 

Graph A12.2: Severe Material and Social 
Deprivation by NUTS3 region, EU_SILC 2023 

Source: Statistical Office of the Slovak Republic, EU SILC 
2023 report. 

relatively 

the 
Persistent 

Regional  disparities  in  poverty  levels  are 
pronounced  despite 
low 
national 
structural 
averages. 
inequalities,  such  as  regional  differences,  the 
urban-rural  divide,  gender  inequalities  and  ethnic 
disparities,  hinder  social  cohesion  and  regional 
convergence.  While  poverty  affects  only  8.6%  of 
the  population  in  the  Bratislava  region,  the  rate 
rises  to  around  28%  in  Prešov  (298).  Bratislava  is 
the  least  affected  region,  followed  by  Trnava 
(12.1%)  and  Žilina  (13.7%).  The  most  severely 
(28%),  Banská 
affected 
Bystrica  (23.1%)  and  Košice  (20.5%),  with  over 
20%  of  the  population  in  each  living  at  risk  of 
poverty  or  social  exclusion.  Meanwhile,  regions 
such as Nitra and Trenčín have seen rising poverty 
rates  in  recent  years,  which  highlights  growing 
regional 
in 
particular,  experienced  Slovakia’s  most  significant 
social setback. 

inequalities.  The  Nitra  Region, 

regions  are  Prešov 

(295) Slovakia’s  30.3%  was  reported  by  the  Slovak  Statistical 
Office  using  EU-SILC  data  (2024  release,  relating  to  2023 
incomes). Eurostat does not publish EU averages specifically 
for women aged 65 and over living alone. However, research 
indicates that, on average, single older women across the EU 
face a much lower (21.4%) poverty risk than the 30.3% seen 
in Slovakia (https://link.springer.com/article/10.1007/s12232-
024-00455-w).  

(296) EWCS, 2024. 

(297) EU SILC, 2024. 

In-work  poverty  declined  in  2025,  though 
challenges remain. The in-work poverty (299) has 
decreased.  After  peaking  in  previous  years,  the 
rate  fell  from  10.2%  in  2024  to  6.5%  in  2025, 
bringing  it  below  the  EU  average  of  8.2%  and 
reversing the upward trend from the historical low 
of  4.4%  in  2019.  The  increases  in  the  minimum 

(298) Statistical Office of the Slovak Republic, 2025 (2024 EU-

SILC results). 

(299) People aged 18+ who are working but live in a household 
with an equivalised disposable income below 60% of the 
national median. 

110 

7.01.74.07.04.72.611.613.19.902468101214Slovak RepublicBratislava RegionTrnava RegionTrenčín RegionNitra RegionŽilina RegionBanská Bystrica RegionPrešov RegionKošice Region% 
 
   
 
wage  (EUR 816  in  2025  and  EUR  915  (300)  in 
2026)  did  not  stop  the  real  wage  erosion  (see 
Annex  11), 
leaving  many  minimum  wage 
households  struggling.  Among  the  22  Member 
States  with  statutory  minimum  wages,  Slovakia 
belongs  to  the  group  with  the  lowest  levels  – 
below EUR 1 000 per month (301). 

remain 

Policies  and  measures  to  address  energy 
limited  and  do  not 
poverty 
sufficiently  tackle  its  structural  drivers.  The 
share  of  people  unable  to  keep  their  homes 
adequately  warm  in  Slovakia  was  8.1%  in  2025. 
Although  this  remains  below  the  EU  average  of 
8.8%,  the  trend  diverges  from  the  general  EU 
trajectory.  Energy  poverty  affects  about  49%  of 
marginalised  Roma  community  households,  which 
means  they  are  about  six  times  more  likely  to 
experience  this  hardship  (302).  At  the  EU  level,  the 
percentage  of  people  facing  energy  poverty 
declined  from  10.6%  in  2023  to  9.2%  in  2024, 
indicating a gradual improvement across the EU. In 
Slovakia,  challenges  remain  in terms  of  structural 
vulnerabilities,  particularly  among 
low-income 
households  and  those  living  in  energy-inefficient 
housing,  where  rising  energy  prices  can  quickly 
make adequate heating unaffordable. While some 
schemes  support  household  energy-efficiency 
specifically 
improvements, 
targeting  consumers  experiencing  energy  poverty 
are  needed.  Slovakia  has  adopted  a  law  on 
targeted  energy  assistance  (‘energopomoc’)  to 
schemes,  but 
compensation 
replace  broad 
implementation 
challenges, 
showed  many 
particularly  given  the  difficulty  of  identifying 
vulnerable households. 

further  measures 

Transport  poverty  is  a  problem  in  Slovakia, 
namely  for  households 
in  rural  areas. 
According to the Slovak Institute for Environmental 
Policy  (303),  around  7%  of  Slovakia’s  population 
resides  in  areas  at  high  risk  of  transport  poverty. 

(300) Slovakia has transposed the EU Minimum Wage Directive 

(2022/2041). In January 2026, the minimum wage rose to 
EUR 915, which is equal to 60% of the national average 
wage and in line with the Directive’s recommendations. A 
four-year adequacy assessment mechanism is in place, but 
its implementation is only now starting under the new law. 

(301) Eurostat, 2025. 

(302) EU SILC, 2024/2025. 

Prešov and Banská Bystrica regions are among the 
the 
most  affected,  with  nearly  half  of 
municipalities  at  risk.  The  most  vulnerable  areas 
include Gemer, Horný Zemplín, and Northern Šariš. 
Transport affordability is a moderate issue overall 
but  remains  a  significant  concern  for  low-income 
households.  The  percentage  of  people  unable  to 
afford  a  car  is  higher  in  Slovakia  (11%  in  2024) 
than  the  EU  average  (5.6%).  The  problem  is 
particularly severe in rural areas, where 12.2% of 
the  population  cannot  afford  a  car  (EU:  4%),  and 
among people at risk of poverty, where the rate of 
transport  poverty  stands  at  36%  (EU  average: 
15.9%).  Possible  measures  to  ease  transport 
poverty 
improving 
connectivity  and  providing  social  taxi  and  on-
demand transport services (see also Annex 19). 

example, 

include, 

for 

shortages, 

long-term 

fragmented 

care 
Slovakia’s 
system  faces  significant  challenges 
in 
meeting  the  needs  of  its  ageing  population. 
Slovakia  has  higher  levels  of  self-reported  unmet 
needs  for  long-term  care  (37%)  than  the  EU 
average  (26.6%).  With  expenditure  at  around  1% 
of  GDP  (EU:  1.7%),  the  system  is  insufficiently 
financed  and  poorly  coordinated,  which  leads  to 
heavy dependence on informal family care.  Public 
social  protection  reduces  poverty  risks  for  long-
term  care  recipients  in  Slovakia  to  levels  well-
below  the  EU  average,  but  they  remain  at  least 
twice as high as the national  poverty  rate among 
(304).  The  system  suffers  from 
older  people 
workforce 
regional 
low  wages, 
disparities,  and  limited  access  to  formal  care, 
particularly  home  care.  Slovakia’s  long-term  care 
is  not  equipped  to  cope  with  rapid 
system 
population  ageing  despite  substantial  EU-funded 
initiatives.  EU  support  for 
long-term  care  in 
Slovakia  combines  multiple  funding  streams. 
the  programme  Slovakia  2021–2027, 
Under 
around  EUR 286 million from the European Social 
Fund  Plus  (ESF+)  is  dedicated  to  social  and 
inclusive  objectives, including  long-term  care.  This 
is complemented by approximately EUR 97 million 
from  the  European  Regional  Development  Fund 
(ERDF)  for 
In  addition, 
Slovakia’s RRP allocates about  EUR 289 million to 
infrastructure, 
long-term 
accelerating  the  transition  from  traditional  large-
scale 
to  community-based, 
person-centred  services,  such  as  home  nursing, 

institutional  care 

reforms  and 

investments. 

related 

care 

(303) Institute  for  Environmental  Policy,  2025,  Analysis  of 
Transport Poverty in Slovakia in Support of the Social Climate 
Plan. 

(304) OECD, 2026, Adequacy of social protection for long-term 

care. 

111 

 
 
 
ambulatory  care,  and  smaller  group  homes.  The 
ratio of 3.7 long-term care workers per 100 people 
aged  65 and over (305)  illustrates the scale  of the 
workforce  shortages  in  the  sector,  although  it  is 
still  slightly  above  the  EU  average  of  3.3.  Only 
12.1%  of  older  people  (65  and  over)  with  severe 
difficulties in personal care or household activities 
used home care services for personal needs in the 
past  12  months,  which  is  well-below  the  EU 
average  of  28.6%.  As  services  are  scarce  in  rural 
areas,  families,  particularly  women,  bear  the 
burden  of  care,  which 
labour-market 
participation  and  exacerbates  gender  inequalities. 
The  percentage  of  women  aged  45-64  providing 
high-intensity  informal  care  (more  than  20  hours 
per week) is much higher in Slovakia (31.8%) than 
the EU average (19.9%). Lower healthcare supply, 
coupled with poor transport connectivity, amplifies 
the  vulnerability  of 
low-income 
households. Shortages of general practitioners and 
specialists disproportionately affect the regions of 
Prešov and Košice (see Annex 15).  

rural  and 

limits 

taken  steps 

Slovakia  has 
to  ensure 
affordable, quality long-term care. The reform 
of the financing of social services, which came into 
effect  in  January  2026  with  certain  provisions 
beginning to apply gradually, aims to expand care 
options.  However,  its  success  will  depend  on 
addressing workforce shortages, increasing service 
quality  and 
improving  rural  accessibility.  The 
reform will provide direct allowances to dependent 
people,  allowing  them  to  choose  between  formal 
services  and  home  care  provided  by  family 
members or other caregivers. The aim is to make 
the  system  more  person-centred,  flexible  and 
community-oriented.  Key 
include 
ensuring  sufficient  workforce  capacity,  improving 
the  quality  and  availability  of  services,  especially 
in rural areas, supporting informal caregivers, and 
managing  the  transition  from  institution-focused 
funding  to  a  new,  person-centred  model.  Social 
economy organisations have shown their ability to 
deliver  care  that  focuses  on  people’s  needs  and 
could  therefore  be  a  promising  option  for  further 
development and support. 

challenges 

(305) EU Monitoring Framework on the Council Recommendation 
on access to affordable high-quality long-term care, 2025. 

112 

 
 
 
 
 
ANNEX 13: EDUCATION AND SKILLS 

Slovakia’s  current  skills  base  supports  high 
increasingly  constrains 
employment  but 
productivity,  competitiveness  and  social 
inclusion.  Progress  in  green  and  digital  skills  is 
slow,  and  the  share  of  people  with  tertiary 
education  and  enrolled  in  science,  technology, 
engineering,  and  mathematics  (STEM)  studies 
remains  relatively 
limits  Slovakia’s 
low.  This 
capacity  to  innovate  and  adapt  to  technological 
change.  The  education  and  training  system  does 
not  sufficiently  equip  all  young  people  with  basic 
skills essential for further upskilling and reskilling. 
The  low  level  of  basic  skills,  in  particular  among 
disadvantaged  learners,  is  exacerbated  by  rising 
absenteeism in schools and early school leaving in 
rural  areas.  Persistent  educational  and  skills  gaps 
among  disadvantaged  groups,  in  particular  Roma, 
reduce their labour market participation, leading to 
untapped human capital potential. Legal measures 
have  been  adopted  to  increase  participation  in 
early  childhood  education  and  care  (ECEC),  but 
additional  policy  attention  to  the  youngest  and 
most disadvantaged children remains important to 
lay  the  foundations  for  skills  development.  Many 
significant  systemic  reforms  were  adopted  in 
2024-2025  with  potential  to  improve  the  quality 
of  education  and  skills  in  Slovakia,  but  their 
implementation  is  still  at  an  early  stage.  Their 
success  will  also  be  largely  dependent  on  stable 
funding. 
country-specific 
2025 
recommendations  for  Slovakia  called  for  greater 
participation in ECEC among the youngest children 
(age  0-3),  improvements  in  the  teaching  of  basic 
skills (in particular for children from disadvantaged 
backgrounds), 
in  STEM, 
investment  in  teacher  training,  and  reskilling  and 
upskilling opportunities for adults. 

increased  enrolment 

The 

Enrolment 

strengthen 

foundational 
among 

Increasing participation in high-quality ECEC, 
in  particular  among  the  youngest  children, 
Roma  and  children  with  disabilities,  would 
skills 
help 
development. 
children 
between three and the starting age of compulsory 
primary  education  has  increased  by  2.2 pps  since 
2022, 
in  2023,  but  still 
significantly  below  the  EU  average  of  94%  (306). 
There  are  substantial  regional  differences:  88.2% 
of  children  in  western  Slovakia  participated  in 
ECEC, compared to just 70.4% in eastern Slovakia. 

reaching  80.8% 

(306) According to national estimates, the participation rate for 3-
5-year-olds reached 85.7% in 2024 (Education Policy 
Institute, ME, 2025). 

In particular, Prešov and Košice regions have fewer 
available  places  than  children  (with  ratios  0.94 
and  0.98  places  per  child)  (307).  Although  the 
participation rate of children under three in formal 
childcare  increased  in  2024,  it  dropped  back  in 
2025  and  remains  the  lowest  in  the  EU  (1.8%  vs 
EU  average:  40.5%).  Even  taking  into  account 
(308),  further  focus  on 
demographic  decline 
improving access to high-quality,  affordable ECEC 
and  foundational  skills  development  among  the 
youngest  disadvantaged  children  is  key.  In  2024, 
less than 1% of Roma children aged 0–3 attended 
early childcare programmes, while around 55% (up 
from  33%  in  2020)  of  Roma  children  aged  3–6 
participate  in  pre-primary  education  and  75%  (up 
from  46%  in  2020)  of  Roma  children  aged  5–6 
participate  in  compulsory  pre-primary  education 
(309).  These  values  are  still  far  below  the  national 
averages but there are significant improvements. 

In  December  2025, 

Slovakia  is  implementing  ambitious  reforms, 
but  further  investments  in  capacity  for  the 
youngest  children  and  closer  cooperation 
among services is needed to ensure access to 
high-quality  and  affordable  ECEC  services 
for  all  children. 
the 
government  adopted  an  action  plan  for  2026-
2030  (310)  with  19  measures  focusing  on  early 
care development. Kindergarten capacity expanded 
in  2025  with  support  from  the  RRF,  and  the 
responsibility  for  funding  kindergartens  has  been 
transferred  from  municipalities  to  the  state, 
improving  the  stability  of  the  funding.  From 
September  2027,  pre-primary  education  will  be 
mandatory  from  the  age  of  four,  and  from 
September  2028  from  the  age  of  three  (311).  The 
number  of  teaching  assistants  increased  by  18% 
year-on-year  in  the  school  year  2025/2026  (312). 
From  2026,  the  European  Regional  Development 
Fund will support renovation and new construction 
of nurseries, aiming to increase overall capacity by 
1 000  places.  The  European  Social  Fund  Plus 
(ESF+) will also co-finance measures to strengthen 

(307) Dashboard on ECEC availability, EPI 2024. 

(308) Pre-school population is estimated to decrease by 18% by 

2028 (from 177 000 to 145 000), ME 2025. 

(309) EU SILC MRC, 2024/2025.  

(310) National Strategy for the Development of Coordinated Early 

Intervention and Early Care Services 2022-2030. 

(311) The School Act (245/2008) includes some exceptions linked 

to health, special needs and home education. 

(312) Slovak Centre of Scientific and Technical Information, 2026. 

113 

 
 
 
 
 
from 

disadvantaged 

staff capacity and enhance parenting skills among 
backgrounds. 
parents 
Furthermore,  the  TSI  also  supports  Slovakia  in 
strengthening  access  to  universal,  inclusive  and 
high-quality  ECEC  and  promoting  flexible  work 
arrangements.  However,  further  expansion  of 
flexible  childcare 
small-scale  solutions  and 
arrangements  would  help 
increase  uptake. 
Revisiting  the  content  of  pre-primary  education 
and  improving  support  for  language  development 
would  increase  school  readiness  among  children 
from disadvantaged backgrounds, including Roma. 
Expanding the work of counselling and prevention 
centres  and  closer  coordination  with  ECEC  would 
enhance  quality  and  availability  of  early 
intervention  for  children  with  disabilities  and 
(age  0-7).  These 
special  educational  needs 
measures  could  contribute  to  supporting  parental 
employment  and  strengthening  gender  equality 
(313). 

reading 

(33.2%), 

Deteriorating  basic  skills  among  students 
and  rising  absenteeism  and  early  school 
leaving  in  rural  areas  limit  future  skills  and 
human capital development. About one third of 
15-year-olds do not reach minimum proficiency in 
mathematics 
(35.4%)  and 
science  (30.6%),  all  above  EU  averages  (29.5%, 
26.2%  and  24.2%  respectively  in  2022)  and 
among the highest underachievement rates in the 
EU  (314).  Top  performance  among  15-year-olds  in 
reading  is  among  the  lowest  in  the  EU  (3.4%  vs 
EU: 6.5%). This reduces the pool of candidates for 
STEM studies and limits the supply of skills needed 
for competitive participation in a digital and green 
economy.  While  the  proportion  of  early  leavers 
from  education  and  training  (ELET)  in  the  18-24 
age  group  is  comparatively  low  (6.8%  vs  EU 
average:  9.1%  in  2025)  in  rural  areas  it  is  8.1%. 
Long-term  absenteeism  is  high  with  11.2%  of 
students reporting having missed  school for more 
than three consecutive months, among the highest 
in  the  EU  (315).  More  than  6  out  of  10  students 
socioeconomic 
disadvantaged 
from 
background  have  not  achieved  the  minimum 
competence  level  in  mathematics  (62.6%  vs  EU 
48%), according to PISA 2022. The share of Roma 
aged  18–24  who  had  left  education  prematurely 

the 

fell slightly from 72% in 2020 to 67% in 2024 but 
remains significant (316). 

Slovakia  will  introduce  a  new  curriculum  in 
all  primary  schools  from  September  2026. 
The provision of high-quality learning and teaching 
materials,  and  systemic  in-service  training  and 
mentoring 
to 
successfully  implement  the  new  curriculum  (317). 
Furthermore, preparations for secondary education 
curriculum  reform  are  under  way,  focusing  on 
future  skills  needs  and  updates 
final 
examination standards (maturita).  

teachers  will  be  crucial 

for 

to 

schooling, 

into  mainstream 

Unequal  access  to  quality  education  and 
limited  support  for  disadvantaged  learners 
result in significant untapped human capital. 
While pilot projects and new legal measures such 
as  adaptation  classes  aim  to  integrate  Roma 
children 
close 
monitoring  of  the  impact  and  further  policy 
measures  are  required  to  address  this  challenge. 
Between  2020  and  2024,  the  share  of  Roma 
children aged 6–15 attending schools where most 
of  their  classmates  are  also  Roma  slightly 
increased  from  65%  to  66%  (318).  In  2025,  the 
Slovak State School Inspectorate reported cases of 
segregation  and  breaching  the  principle  of  equal 
access to education (319). An update of the current 
methodology  and  monitoring  system  for  Roma 
desegregation  is  being  developed  with  support 
from  the  TSI.  The  number  of  children  with 
disabilities 
in  mainstream  primary  education 
increased  by  1.6  times  between  2014  and  2024, 
and  the  number  of  teaching  assistants  rose 
sharply  (by  4.7  at  primary  level  and  by  10.96  at 
lower-secondary  level).  Despite  this  growth  in 
staff,  the  availability  of  support  to  children  with 
special  education  needs  is  still  insufficient  and 
substantial  gaps in inclusion remain. For example, 
even though children with special education needs 
make up one-third of all pupils, support measures 
were  provided  to  only  14%  of  them  during  the 
2024/2025 school year (320). More action is needed 

(313) Slovakia is 6.2 points below the EU average (with 57.2 

points out of 100). European Institute for Gender Equality, 
2025. 

(314) PISA, 2022. 

(315) PISA, 2022. 

(316) EU SILC MRC, 2024/2025.  

(317) www.vzdelavanie21.sk.  

(318) EU SILC MRC, 2024/2025.  

(319) School State Inspectorate Report, 2025. 

(320) School State Inspectorate Report, 2025. 

114 

 
 
 
for 

teachers 

professional 

to  become 

development 

(326).  Although 
leavers 
is 
continuous 
mandatory 
teachers’  career  and  salary 
progression,  TALIS  2024  shows  that  only  around 
half  of  teachers  (53.3%)  took  part  in  effective 
professional development in Slovakia, close to the 
EU-22 average of 56% (327). Measures to increase 
the  attractiveness  of  the  teaching  profession, 
including teachers’ status and pay, in particular in 
shortage regions, together with expanding training 
and  mentoring,  offering  student 
loans  and 
implementing  faster  access  to  the  profession  for 
non-teachers  would  help  improve  quality  and 
address shortages.  

While  participation 
in  workplace-based 
learning  among  VET  students  remains  below 
the  EU  average,  this  does  not  appear  to 
significantly hinder graduates’ transition into 
the labour market. In 2025, the share of recent 
VET  participants  with  at  least  one  month  of 
workplace-based learning (50.7%) dropped further 
below  both  the  EU  average  (66%)  and  the  EU’s 
2025 target of at least 60%. VET quality has been 
improved  by  strengthening  links  between  schools 
and  employers  and  establishing  centres  of 
vocational excellence across the country. However, 
the  persistent  gap  with  the  EU  average  indicates 
that  such  initiatives  and  employer  partnerships 
need  to  be  further  reinforced  to  align  Slovakia 
fully  with  broader  EU  work‑based 
learning 
practices.  Participation  in  STEM  in  medium-level 
VET  was  above  the  EU  average,  while  female 
representation 
in  VET 
remains  low,  with  only  11.6%  of  VET  pupils  in 
STEM being female in 2024, below the EU average 
of 15.4% (328). 

in  STEM-related  fields 

to  address  this  challenge, 
systematic teacher training and support (321). 

including  ensuring 

Teacher  shortages  persist,  in  particular  in 
STEM  subjects.  Teacher  shortages  are  most 
acute in three regions (322), and the highest unmet 
demand  for  teachers  in  STEM  subjects  is  in  the 
Bratislava  region  (323).  Regional  differences  are 
also  significant  in  terms  of  availability  of  fully 
qualified  teachers  in  lower-secondary  education, 
with  Nitra,  Bratislava  and  Trnava  regions  lagging 
behind (324). Furthermore, according to TALIS 2024, 
17.5%  of  young  teachers  intend  to  leave  the 
profession within the next five years, above the EU 
average  (at  15.2%  in  2024).  The  salary  ratio  to 
earnings  of  tertiary-educated  stagnated  (at  0.74) 
for both primary and secondary teachers between 
2018  and  2024  and  remains  below  the  EU 
average  (0.82  and  0.85  respectively).  This  may 
limit 
teaching 
profession,  in  particular  in  the  capital  region,  and 
may  contribute  to  a  strong  gender  imbalance,  as 
women make up 80% of teachers (vs 70% in the 
EU-22)  (325).  Teacher  salaries  in  education  were 
increased by 7% in September 2025, and a further 
increase of 7% was envisaged from January 2026. 

the  competitiveness  of 

the 

The  2025  amendment  of  the 
law  on 
pedagogical  and  professional  staff  aims  to 
address  teacher  shortages.  The  amendment 
introduced  measures  to  facilitate  entry  into  the 
to  acquire 
profession  and  shorter  courses 
pedagogical competence for non-teachers entering 
the  profession.  A 
law  on  higher  education 
(300/2025),  effective  from  September  2026, 
strengthens  practical  training  for  future  teachers 
by  introducing  the  concept  of  faculty  schools  and 
mandating  the  minimum 
length  of  practical 
training.  The  Ministry  of  Education  has  also 
launched  a  communication  campaign  targeting 
Generation  Z  to  encourage  secondary  school 

(321)Recommendation for school level from the School State 
Inspectorate Report, 2025. 

(322) Education Policy Institute, 2025. 

(323) Education and Training Monitor: Slovakia 2023, 2025; 

Edujobs/Profesia portal June 2025-May 2025. 

(324) Janotíková, Balberčáková, 2024 

https://www.minedu.sk/data/att/09f/29110.d33696.pdf.  

(325) EU-22 refers to the 22 Member States that participated in 

TALIS 2024, being Austria, Belgium, Bulgaria, Croatia, Cyprus, 
Malta, Czechia, Denmark, Estonia, Finland, France, Hungary, 
Italy, Latvia, Lithuania, Malta, The Netherlands, Portugal, 
Slovakia, Slovenia, Spain and Sweden. 

(326) Glow-up of Education Starts with You! – poducit.sk. 

(327) TALIS, 2024. 

(328) Education and Training Monitor, 2025. 

115 

 
 
 
Graph A13.1: Tertiary education attainment (levels 
5-8, age 25-34) 

in  the  economy  (332).  Some  measures  are  on  the 
way  to  increase  enrolment  in  STEM.  Slovakia  has 
adopted  a  compulsory  school-leaving  maturita 
examination  in  mathematics  from  2027,  starting 
from  the  school  year  2030/2031  (333).  The  aim  is 
to  increase  the  pool  of  candidates  for  STEM 
studies. 
is 
available  for  students, 
including  those  from 
disadvantaged  backgrounds  (334).  A  new  Higher 
Education  Act  with  effect  from  2026  introduced 
new 
short-cycle 
programmes,  which  can  boost  participation  in 
higher education.  

In  addition,  a  talent  scholarship 

pathways 

flexible 

and 

Source: Eurostat, LFS [edat_lfse_03] 

Tertiary  education  is  below  the  EU  average. 
Only 36.3% of Slovaks aged 25-34 had a tertiary 
education degree (level 5-8) in 2025 (EU average: 
44.8%),  following  a  slight  decrease  (of  0.9pps) 
from 2024 (see Graph A12.1), and well below the 
EU  target.  The  highest  share  of  people  with 
tertiary education (age 25-64) is in the Bratislava 
region (54.8%), far more than in the other regions 
in  five 
(see  Annex  19).  Approximately  one 
secondary  school  leavers  continues  in  tertiary 
education  abroad,  mostly in  Czechia.  The  analysis 
showed that the majority of them did not return to 
Slovak  labour  market  (329).  The  gender  gap  in 
favour  of  women  (18.9 pps)  remained  among  the 
highest  in  the  EU  (EU  average:  11.2)  (330).  The 
proportion  of  graduates  at  doctoral  level  slightly 
decreased  during  the  last  decade  (from  1.8%  in 
2013 to 1.3% in 2023) and now is in line with the 
EU  average  (331).  In  2023,  the  share  of  tertiary 
students enrolled in STEM programmes (23%) was 
lower  than  the  EU  average  (26.9%),  and  well 
below the proposed EU target of 32%. Raising the 
quality  of  tertiary  education,  increasing  women 
in  STEM  and  deeper  collaboration 
enrolment 
between  businesses  and  universities  would 
enhance talent retention and knowledge spillovers 

(329)Odliv mozgov | Ministerstvo školstva, výskumu, vývoja a mlád
eže Slovenskej republiky, https://www.minedu.sk/brain-drain-
odliv-mozgov/ 2024. 

(330) Gender gap is the percentage point difference between 
female and male tertiary educational attainment rate. 

Low  levels  of  basic  digital  skills  constrain 
upskilling  and  reskilling  and  the  uptake  of 
green  jobs.  Nearly  one  in  four  adults  has  only 
basic  literacy  (24%)  and  numeracy  (22%),  and 
over  a  quarter  (27%)  struggle  with  adaptive 
problem  solving.  This  is  particularly  relevant  for 
the adoption of AI and automation, where workers 
must frequently adapt to new software (335). Both 
numeracy  and  literacy  scores  declined  over  the 
past  decade,  with  average  literacy  scores  falling 
by  about  19.4  points  (336).  Despite  progress  and 
ongoing  investments  in  the  digital  area,  only 
53.6%  of  adults  aged  16-74  have  at  least  basic 
digital  skills  (EU:  60.4%  in  2025)  (337).  This 
indicates  that  the  workforce  is  relatively  less 
prepared  for  the  digital  transformation  of  work. 
Slovakia’s  digital  and  green  skills  development  is 
transformation 
guided  by 
strategy and the 2023-2026 national digital skills 
strategy, linking digital literacy improvements with 
competences  needed  for  the  green  transition. 
However, growth in green-driven employment may 
be  hindered  by  labour  shortages  in  occupations 
and  sectors  relevant  for  the  green  transition.  The 
vacancy rate in energy is among the highest in the 
EU (3.6% in 2024), and persistent shortages have 
been reported, for instance for insulation workers, 
building  and  related  electricians,  welders  and 

the  2030  digital 

(332) International Monetary Fund, 2026. 

(333) It will apply to students of grammar schools, secondary 

industrial schools and selected secondary vocational schools. 

(334) Study at Home, Slovakia Rewards Me: 

https://stipendia.portalvs.sk/. 

(335) OECD, 2024, Survey of Adult Skills (PIAAC): Slovak Republic. 

(336) The comparison is between OECD PIAAC cycle 2011–2012 

and 2022–2023. 

(337) Eurostat, 2025, Individuals' level of digital skills, 

(331) Eurostat: educ_uoe_grad06__custom_16362943. 

isoc_sk_dskl_i21 [I_DSK2_BAB]. 

116 

0510152025303540455020212022202320242025%SKEU 
      
 
 
flame  cutters.  The  Ministry  of  Education  has 
approved  a  new  ‘Educated  Slovakia’  strategy  and 
aims  to  create  a  national  framework  for  literacy 
and  skills  for  the  21st  century,  with  a  strong 
emphasis  on  reducing  the  underperformance  in 
reading. 

of  relevant  digital  skills.  However,  despite  an 
increase  in  the  number  of  ICT  graduates  to  5.3% 
of  total  graduates 
in  2024,  companies  still 
struggle  to  support  adequate  training  due  to 
limited  funding,  time  and  specialised  training 
available. (340) 

lower 

is  consistently 

individuals  among 

Digital  skills  development  is  uneven.  While  a 
promising  trend  emerges  among  young  adults 
(16-24),  80.5%  of  whom  have  at  least  basic 
digital  skills, above the EU average of 74.5%,  the 
in  older 
share  of  people  with  digital  skills 
(338). 
population  groups 
Significant regional challenges also exist, including 
an urban–rural connectivity gap, and a lower share 
of  digitally  skilled 
lower-
educated  and  vulnerable  groups.  Within  the 
education  system,  the  ongoing  curriculum  reform 
aims to promote digital  skills across all  education 
levels.  Measures  such  as  digital  coordinators  in 
schools  and  specialised  training  modules  aim  to 
strengthen teachers’ digital  proficiency, which has 
been  identified  as  one  of  the  main  structural 
weaknesses behind low digital skills levels. Work is 
also being carried out to promote digital inclusion 
among disadvantaged groups, particularly through 
the  distribution  of  vouchers  for  the  purchase  of 
digital  equipment  and  targeted  programmes  for 
elderly  people  and  disadvantaged  groups.  The 
annual  Digital  Slovakia  IT  Fitness  Test  assesses 
teachers. 
digital  skills  among  students  and 
However,  skills  development 
long-term 
is  a 
process,  and  the  impact  of  these  measures  will 
only become apparent gradually.  

The  proportion  of  ICT  specialists  in  the 
workforce  is  insufficient  to  meet  the  labour 
demand.  It  has  decreased  from  4.6% in  2024 to 
4.4%  in  2025  (339),  remaining  below  the  EU 
average of 5%. Lack of ICT specialists, particularly 
among  women,  and  insufficient  knowledge  of 
digital  processes  are  a  pressing  issue  within  the 
business population. Projects such as ‘Digital Skills 
for  the  Green  Future  of  Slovakia’,  ‘Activation  of 
Young NEETs for the Digital Age’ and ‘Support for 
Workforce 
Digital 
Transformation  of  the  Labour  Market’,  along  with 
ongoing  cross-ministerial  cooperation  to  reform 
university curricula aim to promote the acquisition 

Adaptation 

the 

to 

(338) Eurostat, 2025, Individuals' level of digital skills, 

isoc_sk_dskl_i21 [I_DSK2_BAB]. 

(339) Eurostat, 2025, Digitalisation Report; European Commission, 

is  a 

concern 

significant 

Upskilling  and  reskilling  of  adults  needs  to 
better  respond  to  labour  market  demands, 
with  active  involvement  of  employers.  The 
availability  of  skilled  staff,  including  on  aspects 
such  as  AI  literacy,  cybersecurity,  cloud-based 
for 
technologies, 
businesses,  with  93%  of  Slovak  companies 
reporting that difficulties in hiring skilled staff are 
an  obstacle  to  investment,  compared  with  77% 
across  the  EU.  This  indicates  a  pressing  need  for 
strategic  action  to  address  skills  shortages  and 
enhance the talent pool (341). Slovakia continues to 
face  ICT  workforce  shortages  and  limited  female 
participation  in  tech  (342).  Recent  projections  point 
to up to 1 million job openings by 2035, primarily 
in  manufacturing  and  highly  skilled  services, 
outpacing  the  expected  supply  of  graduates  (343) 
(see Annex 11).  

high, 

learning 

intensity 

in  adult 
the 

is 
While  participation 
comparatively 
of 
engagement  is  low.  Despite  a  participation  rate 
of 49.5% in 2022 according to the adult education 
survey  –  already  nearing  the  national  target  of 
50%  and  exceeding  the  EU  average  of  39.5%  – 
Slovak  adults  spend  significantly  less  time  on 
learning,  averaging  just  48  hours  per  person 
compared to the EU’s 144 hours (344). More recent 
data  from  the  labour  force  survey  suggest  a 
possible  decrease  in  participation  rates  between 
2022  and  2024.  The 
intensity  of 
engagement suggests that while a majority of the 
workforce  undergoes  occasional,  likely  mandatory 
employer-led  training,  continuous,  self-directed 
learning remains insufficient to sustain a high-tech 
economy.  The  new  Adult  Learning  Law,  effective 

lower 

(340) Eurostat, Distribution of graduates at education level and 
programme orientation by sex and field of education, 
educ_uoe_grad03. 

(341) EIB Investment Survey, 2024. 

(342) The National Coalition for Digital Skills and Jobs of the 

Slovak Republic, 2025. 

(343) European Centre for the Development of Vocational Training 

(Cedefop), 2025. 

2025, Digital Decade Country Report – Slovakia. 

(344) Adult Education Survey, 2022; State education institute VET. 

117 

 
 
 
from  2025,  and  the  launch  of  individual  learning 
accounts  from  1  April  2026  will  help  reach  the 
2030  national  target  and  the  EU  target  of  60%. 
Other  programmes  such  as  CEOVP,  DiTEdu,  the 
‘Catching-Up Regions’ initiative and pilot centres of 
excellence  aim  to  strengthen  vocational  and 
lifelong 
labour 
learning,  align  education  with 
market demands and support talent development. 
Attention  to  regional  disparities  and  effective 
implementation and monitoring remain critical  for 
achieving  nationwide 
impact  and  quality  of 
learning. 

is  key 

Strengthening  the  quality  of  spending  on 
education 
in  Slovakia.  Education 
spending  increased  slightly  from  4.7%  of  GDP  in 
2020  to  5.0%  in  2023  and  stands  above  the  EU 
average (at 4.7%). Despite this uptick, the share of 
total government spending that goes to education 
decreased  slightly  during  the  same  period  (from 
10.6% to 10.3%) (345) and the system continues to 
yield  relatively  poor  results.  The  country  faces 
persistent  challenges  that  have  led  to  a  country-
specific  recommendation  focused  on  ensuring 
equal and inclusive access to quality education at 
all  levels.  The  need  to  address  the  quality  of 
spending is key, as increasing resource levels have 
not  yet  successfully  narrowed  the  achievement 
gaps.  A  recent  spending  review  (2025)  analysed 
the  poor  results  in  Slovak  primary  and  secondary 
education  and 
identified  several  underlying 
factors,  including  low  expenditure  on  primary  and 
secondary education. Several measures have been 
identified that could reinforce focus on key priority 
areas (346).  

(345) [gov_10a_exp__custom_16025691]. 

(346) Ministry of Finance, Education Policy Institute of the Ministry 
of Education, Slovakia. Spending Review on Education, 2025. 

118 

 
 
 
 
 
ANNEX 14: SOCIAL SCOREBOARD 

Table A14.1:Social Scoreboard for Slovakia 

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 

119 

49.56.853.611.18.73.2778.15.43.4133.616.722.740.820.73.51.81.1Critical situationTo watchWeak but improvingGood but to monitorOn averageAdult participation in learning (during the last 12 months, excl. guided on the job training, % of the population aged 25-64, 2022)Equal opportunities and access to the labour marketBest performersBetter than averageEarly leavers from education and training(% of  the population aged 18-24, 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)Dynamic labour markets and fair working conditionsSocial protection and inclusionShare of individuals who have basic or above basic overall digital skills(% of the population aged 16-74, 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) 
 
 
 
   
 
 
ANNEX 15: HEALTH AND HEALTH SYSTEMS 

Slovakia’s  health  system  faces  significant 
challenges  that  need  to  be  addressed  to 
improve  the  health  of  its  population,  social 
fairness  and  productivity.  Key  challenges 
include:  (i)  low  life  expectancy,  linked  to  high 
treatable and preventable mortality; (ii) suboptimal 
funding  and  cost-effectiveness  of  the  health 
system;  (iii)  an  insufficient  focus  on  outpatient 
care and disease prevention; and (iv) shortages of 
health  workers.  The  2025 
country-specific 
recommendations  (CSRs)  emphasised  the  need  to 
strengthen  primary  care  –  particularly 
for 
vulnerable  groups  –  expand  preventive  services 
and  improve  health  system  resilience  in  medical 
supplies,  infrastructure  and  the  workforce,  while 
maintaining fiscal sustainability. 

Graph A15.1: Treatable mortality 

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

Life expectancy at birth in Slovakia was still 
among  the  lowest  in  the  EU  in  2024,  with  a 
high 
rate  of  avoidable  mortality  – 
preventable or treatable. There is a gender gap, 
with women expecting to live 6.5 years longer than 
men. In 2023, treatable mortality was among the 
highest in the  EU,  suggesting  shortcomings in the 
effectiveness  of  the  health  system.  Moreover, 
Slovakia  recorded  one  of  the  EU’s  lowest  falls  in 
mortality  from  treatable  causes  over  the  last 
10 years, reaching almost twice the EU average in 
2023 
the 
(see  Graph A15.1).  Diseases  of 
circulatory  system  –  cardiovascular  diseases 
(CVDs)  –  were  the  leading  cause  of  mortality  in 
Slovakia  in  2023,  followed  by  cancer;  together, 
they  accounted  for  more  than  two  thirds  of  all 
deaths  and  were  also  major  causes  of  morbidity 
and  disability,  in  line  with  EU  patterns.  Cancer 
mortality  remains  among  the  highest  in  the  EU, 
particularly  for  breast,  cervical  and  colorectal 
cancers. To address this burden, Slovakia updated 

its National Oncology Plan for 2021–25 (347) and is 
finalising  its  further  update.  Slovakia  also  invests 
in  public  education,  screening  promotion  – 
especially  for  marginalised  groups  –  and  data 
systems.  These  could  expand  preventive  services, 
as highlighted in the 2025 CSR.  

Despite  some 
improvements  since  2022, 
preventable  mortality  remained  very  high  in 
2023  The  share  allocated  to  prevention  was  just 
2.7%  of  total  health  expenditure  in  2023  (EU 
contributors 
average  3.7%).  The  main 
to 
ischaemic  heart 
preventable  mortality  were 
disease,  alcohol-related  deaths  and  lung  cancer, 
together accounting for nearly half of such deaths. 
Slovakia  has  accelerated  the  shift  to  population-
based screening, building national programmes for 
breast, cervical and colorectal cancers and piloting 
lung  and  prostate  screening.  Under  the  Swiss 
Slovak  Programme, 
in  April  2025, 
Slovakia  aims  to  strengthen  the  prevention  of 
(NCDs).  Under 
non-communicable 
in  the 
involved 
EU4Health,  Slovakia 
EUCanScreen 
the 
supporting 
joint 
implementation of cancer screening in the EU and 
in  the  joint  action  CARE4DIABETES,  aimed  at 
reducing the burden of type 2 diabetes (T2D) (348). 
Influenza  vaccination  coverage  among  people 
aged  59 years  and  over  in  Slovakia  is the  second 
lowest in the EU, with only around 12% vaccinated 
in  2022/23.  In  2024,  HPV  vaccination  coverage 
among  eligible  girls  remained  well  below  the  EU 
average (349).  

diseases 
is  also 
action 

launched 

Preventable  mortality  in  Slovakia  is  closely 
linked  to  exposure  to  lifestyle  risk  factors. 
Environmental  factors  such  as  air  pollution  also 
contribute  to  a  considerable  number  of  deaths 
(350).  In  2022,  17%  of  Slovak  adults  were  obese, 
up from 14% in 2017 and above the EU average 
(15%),  with  the  rise  mainly  due  to  men  (male 
obesity  rose  by  almost  30%  between  2017  and 
2022).  Among  adolescents 
share  of 
overweight or obese 15-year-olds doubled to 22% 
between  2010  and  2022,  slightly  above  the  EU 

the 

(347) NOI (2022), National Oncology Programme - updated NOP 
action plans for 2021-2025. National Oncology Institute. 

(348) EUCanScreen 

Joint 

Action 

and 

Home 

- 

Care4Diabetes4JointAction. 

(349) OECD/European Observatory on Health Systems and Policies, 
2025, Country Health Profile 2025: Slovakia. State of Health 
in the EU. 

(350) Country Health Profile 2025: Slovakia – see earlier footnote. 

120 

170.9163.6168.8206.0176.1161.194.889.291.793.389.786.8201420192020202120222023per 100 000 populationSlovakiaEU 
 
       
 
 
 
average  (21%).  Unhealthy  nutrition  and  physical 
inactivity  are  key  drivers.  Only  about  half  of  the 
population consumed fruit or vegetables daily, well 
below  the  EU  average,  and  just  17%  of  adults 
engaged in physical activity more than three times 
per  week  in  2022,  one  of  the  lowest  rates  in  the 
EU.  In  response,  the  government  approved  the 
2024-30 National Action Plan for the promotion of 
Physical  Activity,  aiming  to  cut  physical  inactivity 
by  5%  in  both  adults  and  adolescents  by  2030. 
Smoking  among  adults  and  adolescents  also 
remains a major public health challenge. The share 
of  daily  smokers  in  Slovakia  is  slightly  above  the 
EU  average,  in  particular  for  men.  While  regular 
cigarette  smoking  has  declined  over  the  past 
decade,  e-cigarette  use  has  grown.  However,  new 
laws and regulations have been adopted to reduce 
smoking since 2023.  

These  poor  health  outcomes  negatively 
affect  Slovakia’s  workforce  and  hence  its 
productivity  and  competitiveness.  In  Slovakia, 
mortality  at  working  age  as  a  proportion  of  total 
mortality  was  among  the  highest  in  the  EU  in 
2024  despite  a  slight  improvement  from  2023 
(20.7%vs  21.3%),  exacerbating  the  effects  of 
population  ageing  on  a  shrinking  labour  force. 
Expanding  preventive  action  could  deliver  health 
gains  that  would  help  mitigate  this  impact.  For 
example,  preventing  all  deaths  from  NCDs  in 
Slovakia  –  in  particular  CVDs  –  would  result  in  a 
1.3%  gain  in  working-life  years  from  2022  to 
2040 (vs 0.9% for the EU). This would correspond 
to  saving  about  700 000 life  years  over  2022-
2040.  This  increase  would  mitigate  an  otherwise 
expected  7%  reduction  of  the  workforce  due  to 
population  ageing,  which  is  equal  to  the  EU 
average (351). 

on 

an 

underfunded 

Rising  healthcare  demands  are  placing 
pressure 
Slovak 
healthcare  system.  Health 
spending  per 
inhabitant  is  one  of  the  lowest  in  the  EU.  The 
persistently  low  level  of  investment  in  the  health 
sector  is  also  accompanied  by  limited  per  capita 
investment 
low 
availability  of  some  equipment,  such  as  for 
medical  imaging.  In  2023  spending  on  outpatient 
and inpatient care each accounted for around 30% 
of  total  health  expenditure.  Pharmaceutical  and 
medical devices dispensed in the outpatient sector 
represented  a  further  30%,  among  the  highest 

infrastructure  and 

in  health 

(351) EC/OECD, State of Health in the EU: 2025 Synthesis Report. 

to 

sector.  Even 

shares in the EU. This high share partly reflects a 
methodological  difference:  Slovakia  records  some 
hospital  medicines  and  devices  under 
the 
outpatient 
so,  pharmaceutical 
spending  has  risen  further  since  2022  following 
innovative 
improve  access 
reforms 
medicines.  This  led  to  uncontrolled  spending, 
prompting the government to limit the application 
of  extraordinary  reimbursement  regimes.  The 
sharp  rise  in  public  spending  in  2023  signals 
growing  fiscal  pressure  that  may  intensify  in  the 
coming decades. Current persistent hospital debt is 
one  aspect  of  this  financial  strain,  fuelled  largely 
by  rising  input  costs,  particularly  for  hospitals’ 
workforce and pharmaceuticals.  

to 

Graph A15.2: Healthcare infrastructure investment 
by year 

Source: Country Health Profiles - Dashboard. 

In 

is 

optimising 

centralised 

implementing  measures 

Slovakia 
to 
improve  cost-effectiveness  within  its  health 
system,  which  currently  faces  efficiency 
constraints. 
the  country 
In  October  2024, 
established  a  Central  Management  Section  for 
large  public  hospitals,  aiming  to  achieve  savings 
and 
management 
through 
procurement. 
its  pilot  phase,  the  central 
procurement  covers  energy  and  some  medical 
devices.  There  are  plans  to  expand  it  to  selected 
budgeting, 
high-use  medicines, 
purchasing  and  services  in  19 hospitals.  In  2025, 
Slovakia published a spending review on hospitals 
addressing  efficiency  and  financial  sustainability 
challenges  and  established  a  Healthcare  Budget 
Council  to  coordinate  and  monitor  healthcare 
funding.  Promoting  a  more  efficient  use  of 
resources  is  a  long-term  strategic  priority  for 
strengthening  resilience,  as  underscored  by  the 
2025  CSR,  and  in  light  of  future  potential  health 
crises, demographic ageing and persistent funding 
pressures  (see  Annex  2).  The  2022  update  of 
Slovakia’s 
Framework 
Strategic  Healthcare 
focus  on  health  system 
strengthened 
resilience, 
the 
pandemic  and  setting  priorities  for  emergency 

incorporating 

lessons 

from 

the 

121 

4.75.14.54.67.17.56.35.919.619.519.720.421.521.421.921.920152016201720182019202020212022EUR million per 100 000 populationSlovakiaEU 
 
       
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 

to  be 

preparedness,  public  health 
capacities  and 
readiness  for  biological,  chemical  and  radiological 
threats.  However,  a  2023  evaluation  found 
implementation  progress 
insufficient, 
prompting  calls  for  faster  action  and  stronger 
governance  (352).  The  health  system  performance 
assessment  framework  under  the  TSI  project 
should  be  launched  and  the  new  methodology 
implemented  in  2026.  This  should  strengthen 
evidence-based  policymaking  and  data  use  and 
support  better  planning  and  mechanisms  for 
priority setting. 

Slovakia still has a relatively high number of 
hospital  beds  and  one  of  the  EU’s  highest 
hospital  admission  rates,  indicating  limited 
access  to  primary  care.  Bed  occupancy  rates 
are  among  the  lowest  in  the  EU,  signalling  scope 
to  optimise  the  use  of  hospital  resources.  On  the 
other  hand,  rates  of  hospital  admissions  were 
particularly  high  for  congestive  heart  failure  and 
diabetes, reflecting the need to strengthen primary 
care  services  as  highlighted  by  the  2025  CSR. 
Slovakia  allocates  21%  of  its  RRP  to  healthcare, 
with a particular focus on the hospital optimisation 
reform  and  investments  in  the  construction  and 
modernisation  of  hospital 
In 
addition,  the  plan  includes  measures  to  improve 
access  to  primary  care  in  underserved  areas  and 

infrastructure. 

in 

of 

the 

modernise  mental  health  legislation  and  services. 
Its  full  implementation  as  well  as  2021-2027 
cohesion  policy  investments  could  support  the 
shift 
towards  more 
system 
community-based  and  integrated  models  of  care, 
as  highlighted 
the  2025  CSR.  Antibiotic 
consumption is around the EU average, but heavy 
use  of  broad-spectrum  antibiotics  is  concerning, 
with  over  one  third  of  bacterial  isolates  resistant 
to  key  antibiotics  in  2022-2023,  one  of  the 
highest  rates  in  the  EU  (353).  Slovakia  has  not  yet 
updated  its  National  Action  Plan  on  Antimicrobial 
resistance (AMR). However, the country is involved 
in the Joint Action on Antimicrobial Resistance and 
Healthcare-Associated Infections, JAMRAI 2 (354). 

Household out-of-pocket (OOP) payments are 
above the EU average (20% vs 16%), with a 
high percentage accounted for by outpatient 
pharmaceuticals.  Health  services  are  widely 
covered  by  public  funding  and,  as  elsewhere, 
dental  care  coverage  is  limited  compared  with 
other  services.  Despite  near-universal  statutory 
health  insurance,  marginalised  groups  such  as 
Roma  communities  face  persistent  obstacles.  To 
address  these  gaps,  the  Ministry  of  Health  has 

(353) ECDC 

Point 

(2024) 

of 
healthcare-associated  infections  and  antimicrobial  use  in 
European  acute  care  hospitals.  Stockholm:  European  Centre 
for Disease Prevention and Control.  

prevalence 

survey 

(352) Ministry of Health (2024), Summary report on developments 
in the Strategic Framework for Health Care for 2014-2030 
for 2023. 

(354) EU-JAMRAI 2 - Joint Action Antimicrobial Resistance and 

Healthcare-Associated Infections 2. 

122 

 
 
 
 
   
 
supported  the  National  Healthy  Communities 
Project  since  2017  (co-funded  by  EU  grants), 
strengthening  primary  prevention  and  delivering 
basic  services  via  health  mediators.  Beyond  its 
direct 
impact  on  health  status,  healthcare 
coverage  is  a  powerful  tool  against  poverty  and 
inequality.  For  instance,  analyses  suggest  that  in 
the  case  of  Slovakia, 
inequality  as 
measured  via  the  Gini  coefficient  would  increase 
by  42%  in  the  absence  of  public  coverage  for 
healthcare (355). 

income 

is  of 
Slovakia’s  pharmaceutical  sector 
comparatively modest economic significance. 
Employment  in  pharmaceutical  manufacturing  is 
among the lowest in the EU. Slovakia is among the 
EU countries that report the lowest levels of public 
spending  on  health  research  and  development, 
with  a  very  low  number  of  European  patents 
granted  and  clinical  trials  per  million  population 
decreasing  in  2024  compared  with  2023(356).  The 
industry  also  maintains  a  very  low  share  of 
extra-EU  exports  (0.41%  in  2024  vs  13.85%  for 
the EU average). Furthermore, the country is facing 
a  growing  shortage  of  medicines.  For  instance, 
despite  legislative  reforms  aimed  at  accelerating 
market  entry,  the  introduction  of  new  oncology 
medicines has stalled, with almost no new entries 
in the first quarter of 2025. 

Access to care in Slovakia is constrained by a 
persistent  shortage  of  general  practitioners 
(GPs), nurses and certain medical specialists. 
In the primary care setting, in 2024, the estimated 
shortfall reached 533 GPs and 236 paediatricians, 
equivalent to around 21% of the respective public 
primary-care  workforces.  Compared  with  2022, 
this  reflects  a  33%  increase  in  the  GP  shortfall 
and  a  5%  increase  for  paediatricians  (357).  These 
gaps  are  expected  to  worsen  due  to  an  ageing 
workforce.  At  the  same  time,  limited  interest  in 
primary-care careers has weakened inflows, while 
emigration  continues  to  undermine  workforce 

(355) European  Commission:  Directorate-General  for  Health  and 
Food  Safety,  Cruces  et  al.  (2025), The  role  of  healthcare  in 
reducing inequalities and poverty in the EU. As regards health 
coverage, poverty and income refer in the present analysis to 
a different measure than the  one usually reported, which is 
defined, for instance, in Annex 12. Here, it also estimates the 
impact of benefits in kind, while the standard measure only 
accounts for cash transfers. 

(356) European Patent Office: Statistics & Trends Centre | epo.org. 
US National Library of Medicine, https://clinicaltrials.gov. 

GP 

the 

the 

RRP, 

Under 

training, 

retention  (358).  To  improve  access  to  primary  care 
and  address  the  2025  CSR,  in  2023  the  Slovak 
government  approved  a  general  outpatient  care 
strategy running until 2030, partially supported by 
RRP  funds.  It  is  focusing  on  enhancing  education 
payments, 
reforming 
and 
strengthening  competencies,  and  new  forms  of 
collaboration. 
nearly 
150 outpatient practices were supported to further 
address  the  increasing  shortages.  However,  the 
density of doctors and nurses in Slovakia has been 
below  the  EU  average  for  several  years,  with 
(see 
uneven  distribution  across 
Annex 18).  Challenges  in  retention  are  linked  to 
poor  working  conditions,  high  job  strain  and 
increasing depression rates. In addition, in 2023, a 
high share of the country’s nursing personnel was 
between  55  and  64 years  of  age  (23.7%),  and  a 
low  share  was  between  25  and  34 years  of  age 
(9.8%).  This  poses  a  significant  challenge  to  the 
health system and, more broadly, the care system 
(see  Annex 12).  Since  2025,  the  base  salaries  for 
selected  healthcare  professionals  have  increased 
in  an  effort 
to  address  health  workforce 
challenges  highlighted  in  the  2025  CSR.  Slovakia 
also participates in the EU4Health-funded HEROES 
joint action (359), through which EU countries share 
best  practices  and  expertise  on  health  workforce 
planning. 

regions 

of 

phone) 

instead 

The opportunities offered by e-health are not 
yet  fully  embraced  in  Slovakia,  with  uptake 
varying  across  education  levels.  In  2024,  the 
shares  of  people  using  online  health  services 
(excluding 
in-person 
consultations  (16%)  and  accessing  their  personal 
health  records  online  (16.2%)  were  below  the  EU 
average.  Digital  engagement  varies  by  education 
level:  people  with  a  higher  education  qualification 
are two to over three times more likely to use the 
internet for these activities than those with a low 
level of education. Planned investments under the 
RRP  aim  to  boost  the  digital  transformation  of 
Slovak  hospitals.  In  addition,  Slovakia  participates 
in  grants  under  the  EU4Health  programme  to 

(358) ÚDZS (2025). Status report on implementation of public 

health insurance for 2024. Bratislava: Healthcare 
Surveillance Authority (ÚDZS). 

(359) JA HEROES | Health Workforce Planning Project – A 

(357) Country Health Profile 2025: Slovakia – see earlier footnote. 

WordPress Full-Site Editor Theme. 

123 

 
 
 
facilitate  the  implementation  of  the  European 
Health Data Space (360). 

(360) Second Joint Action Towards the European Health Data 

Space – TEHDAS2. 

124 

 
 
ANNEX 16: HOUSING 

by 

regional 

disparities. 

accelerating 

Slovakia  continues  to  experience  structural 
insufficiency in housing supply, with demand 
persistently  outstripping  supply,  particularly 
in  urban  regions.  The  2025  country-specific 
recommendations  (CSR)  on  housing  focused  on 
supporting  housing  supply  and  expanding  the 
rental  market 
residential 
construction  and  promoting  social  housing,  while 
Although 
considering 
residential  construction  has  increased  over  recent 
years,  it  remains  far  below  the  estimated  needs. 
Slovakia  ranks  among  the  countries  with  the 
lowest housing stock per capita in the EU. Despite 
increased  residential  construction  in  2012-2023, 
the  housing  supply  gap  has  not  been  closed.  The 
cumulative  housing  deficit  in  Slovakia  can  be 
attributed  partly  to  higher  interest  rates  and  is 
estimated  at  between  200 000  and  400 000 
dwellings  (361)  or  even  500 000  dwellings.  The 
2025  CSR  recommended  accelerating  residential 
construction.  A  new  Building  Act  that  aims  to 
streamline  permitting  procedures  has  been 
adopted, yet its implementation is still in the early 
stages. The organisational capacity of construction 
offices,  especially  in  the  largest  cities,  remains 
unaddressed. 

rental 

sector 

housing 

remains 
The 
underdeveloped,  with  a  very  low  proportion 
of  subsidised  rental  housing.  The  2025  CSR 
recommended  expanding  housing  supply 
in 
Slovakia,  where  about  93–94%  of  the  population 
live  in  owner-occupied  dwellings,  standing  out  as 
one of the highest homeownership rates in the EU. 
At the same time, Slovakia lags far behind the EU 
average  in  social  and  affordable  housing,  with 
public  rental  options  being  very  limited,  which 
contributes  to  long  waiting  lists  and  affordability 
pressures  for  low-income  households  (362).  The 
lack  of  affordable  rental  housing  in  urbanised 
areas  also  hinders  labour  mobility  and  thus 
productivity. 

Public  support  for  affordable  and  social 
rental  housing  is  insufficient,  both  on  the 

(361)Výbošťok, Ján and Dušan, Paur. 2025. ‘Housing in Slovakia: 
COVID-19 Pandemic Impacts on Regions, Affordability and 
Residential Development.’ Regional Studies, Regional Science 12 
(1): 881–895, 
https://doi.org/10.1080/21681376.2025.2572482. 

(362) OECD. Economic Surveys: Slovak Republic. Paris: OECD 

Publishing, 2024. 

regional 

disparities. 

supply  and  demand  sides.  The  2025  CSR 
recommended  promoting  social  housing,  while 
considering 
Slovakia 
traditionally  supports  the  construction  of  social 
housing  by  municipalities  and  cities,  with  about 
50 000  flats  having  been  built  under  the  support 
scheme  over  the  last  25  years.  However,  the 
scheme  fails  to  support  housing  where  it  is  most 
needed:  in  urban  areas  with  rising  populations. 
Demand-side 
housing 
allowance,  are  either  missing  altogether,  or  cover 
only  a  fraction  of  the  real  cost,  and  thus  do  not 
ensure affordability. 

subsidies, 

such 

as 

Housing market developments 

After the financial crisis, house prices surged 
vigorously.  The  2008  financial  crisis  triggered  a 
downturn in house prices, lasting until 2012. After 
that,  prices  began  to  accelerate,  driven  by 
affordable mortgages, limited housing supply and 
rising  real  wages  (Graph  A7.1).  The  nominal 
growth  rate  of  house  prices  peaked  at  13.7%  in 
2022,  then  experienced  a  correction  in  2023  due 
to the rise in mortgage rates. Since 2024, nominal 
their  growth 
recovered,  and 
house  prices 
accelerated  to  12.4%  year-on-year  in  2025  when 
they showed signs of overvaluation of about 16% 
(based  on  the  standard  European  Commission 
methodology). The house prices are nominally the 
highest in the capital of Bratislava followed by the 
second most-populated region of Košice.   

Housing  affordability  worsened  in  the  last 
years. The price-to-income ratio reached its peak 
in 2008, before declining during the financial crisis 
and  rising  again  from  2015.  In  2022,  rising 
interest  rates,  high  housing  prices  and  weakened 
real  wages  due  to  high  inflation  significantly 
undermined  housing  affordability  for  first-time 
in 
buyers.  Although  declining 
subsequent  years  have  stimulated  mortgage 
demand, the improvement in housing affordability 
has  been  only  marginal 
in  2024  and  with 
worsening  again  in  2025  as  house  price  growth 
outpaced the income growth.  

interest 

rates 

125 

 
 
 
 
 
 
Graph A16.1: House prices, rents and price-to-
income evolution in SK and EU27 since 2005 

construction,  while  density  levels  in  large  cities 
remain very low. 

Graph A16.3: House supply indicators in SK since 
2005 

Source: Eurostat 

Graph A16.2: Borrowing costs and housing loans, in 
SK and EA since 2018 

Source: ECB and Eurostat 

Slovakia’s housing supply is insufficient, with 
limited  housing  stock  and 
fluctuating 
construction  investments.  While  the  mortgage 
market, and hence demand, has started to recover, 
housing supply has not kept pace. In the first half 
of  2025,  construction  began  on  only  7  241  new 
dwellings,  representing  a  year-on-year  decline  of 
almost  14.5%.  After  peaking  in  2021,  residential 
building  permits  gradually  declined  until  2024, 
with  Slovakia’s  existing  housing  stock  remaining 
residential 
below 
investment  has  also  declined  in  recent  years,  the 
cost  of  residential  construction  has  remained 
relative  stable,  at  around  63%  of  the  2020  EU 
average,  signalling  structural  supply-side  issues 
environment. 
linked 
the 
Suburban  districts,  such  as 
the  Bratislava 
hinterland,  have  absorbed  the  bulk  of  new 

the  EU  average.  While 

administrative 

to 

(1) 4-quarters moving sums (average for prices) 
Source: Eurostat 

The  rental  housing  sector 
in  Slovakia 
remains  significantly  underdeveloped.  The 
proportion of rental housing is very low compared 
with  the  EU  average  and  has  not  increased  over 
time.  Between  2011  and  2021,  census  data 
indicate  a  decline  in  the  proportion  of  private 
rental  dwellings  in  the  total  housing  stock  from 
3% to 0.86% (363). 

The  tight  rental  supply  does  not  meet  the 
growing  demand  from  Ukrainian  refugees, 
putting pressure on rents. As the supply of both 
market-based  and  regulated  rental  housing  has 
not expanded accordingly, heightened demand has 
translated into rising rents. The shortage of rental 
housing  also  negatively  affects  regional  labour 
mobility, which is identified as a key factor behind 
the underutilisation of the labour force (364).  

(363) However, the government itself considers these figures to be 
highly unreliable, as a substantially larger proportion of 
rental housing is likely to operate in the grey economy, 
outside tax compliance. 

(364) Institute for Financial Policy (IFP) (2023), V nájme ďalej 

zájdeš, Ministry of Finance of the Slovak Republic, Bratislava. 

126 

751251752252753250507091113151719212325Index (2005 = 100)Nominal prices SKNominal prices EU27Rental prices SKRental prices EU27Price-to-income ratio SKPrice-to-income ratio EU27024681012141819202122232425in % (interest rates) or in % of GDP (loans)Interest rates SKInterest rates EAPure new loans SKPure new loans EA01234565070901101301501701902102300507091113151719212325% of GDPIndex (2005 = 100)Residential building permits in m2, indexResidential buildings producer prices, indexInvestment in dwellings (right-hand side axis) 
   
 
   
   
 
Structural policies 

Housing  policy  in  Slovakia  is  institutionally 
fragmented and characterised by a dispersed 
allocation  of  competencies  across  several 
ministries  and  public  bodies.  The  overall 
responsibility  for  housing  policy  lies  with  the 
Ministry  of  Transport,  which  lacks  the  means  to 
ensure  coherent  and  coordinated  housing  policies 
(365). Several other ministries and agencies are also 
crucial for housing policy, including the Ministry of 
Finance, the Ministry of Economy and the Ministry 
of  Labour,  Social  Affairs  and  Family  (366).  More 
recently,  a  distinct  segment  of  housing  policy  –
rental  housing  –  had  been 
state-supported 
designed  and 
the 
implemented  directly  by 
Government Office, through the Agency for State-
Supported Rental Housing. 

Urban  density  in  Slovakia  is  very  low,  and 
current  spatial  planning  does  not  promote 
higher  density.  Around  40%  of  the  population 
lives  in  areas  with  population  density  comparable 
to  rural  areas,  while  only  21%  of  the  population 
lives  in  densely  populated  areas,  which  is  the 
second  lowest  proportion  in  EU  after  Slovenia. 
Settlement  patterns  are  highly  dispersed  and 
contribute to urban sprawl. Bratislava’s population 
density is roughly four times higher than Vienna’s 
(367).  Existing  planning  practices  and  residential 
development  patterns  do  not  promote  higher-
density  housing,  particularly  in  urban  and  peri-
urban areas where demand is strongest. 

planning 

Spatial 
represents  a  major 
structural constraint on housing supply. More 
than one third of municipalities lack a valid spatial 
(land-use)  plan,  which  limits  effective  regulation 
residential 
and 
construction. 
legislation, 
municipalities  are  required  to  adopt  spatial  plans 
by 2032. Not having a spatial plan by this deadline 

to  enable  new 

the  ability 

recent 

Under 

(365) Ministerstvo dopravy Slovenskej republiky. 2025. Správa o 
plnení úloh Bytovej politiky Slovenskej republiky do roku 
2030 a návrh na jej aktualizáciu. Bratislava: Ministersto 
dopravy SR. 

(366) ESPON (2024), House for All: Access to Affordable and 

Quality Housing for All People – Country Fiche: Slovakia, 
ESPON 2030 Cooperation Programme, Luxembourg. 

poses  a  risk  for  the  quality  of  urbanism,  because 
the  land  would  not  be  regulated  by  default. 
However,  amending  spatial  plans  to  allow  new 
housing  development  is  financially  burdensome 
for  municipalities  where  this  is  not  mitigated,  for 
example, by a developers’ contribution. In addition, 
cases  have  been  identified  where  existing  Roma 
settlements  are  omitted  from  newly  adopted 
spatial  plans,  creating  potential  long-term  legal 
and  social  risks.  This  issue  is  currently  being 
addressed  by  the  Office  of  the  Government 
Plenipotentiary 
Communities. 
Municipalities  also  face  limited  technical  capacity 
and  insufficient  know-how  for  land  preparation, 
further constraining housing development. 

Roma 

for 

rental  housing  sector.  For 

State policy does not sufficiently support the 
development  of  both  the  public  and  the 
private 
the 
regulation of rental housing, the 2014 Short-Term 
Lease  Act,  which  increased  flexibility  in  rental 
relations, largely at the expense of tenants, failed 
to generate additional incentives for expanding the 
rental  sector.  Support  for  public  rental  housing 
construction  remains  low  and  is  predominantly 
directed  towards  renovation  rather  than  new 
supply. 
Instead  of  expanding  supply,  capital 
subsidies  are  used  to  fill  structural  gaps  in  an 
underfunded  public  rental  housing  stock,  where 
rental  revenues  are  insufficient  to  finance  proper 
(368).  The  city  of 
maintenance  and  renewal 
Bratislava  significantly  underperforms  in  making 
use  of  these  support  schemes,  partly  due  to 
limited  land  availability  and  high  land  prices.  On 
the demand side, housing allowances cover only a 
very  small  fraction  of  rental  costs  and  therefore 
do  not  constitute  an  effective  instrument  to 
support rental affordability. A public-private rental 
housing  scheme  under  the  Agency  for  state-
is  now  operational. 
supported  rental  housing 
Investment  contracts  with  private  partners  have 
been  concluded,  the  first  70  rental  flats  were 
marketed 
in  early  2025,  and  one  partner 
committed to delivering at least 3 000 units. 

Slovakia’s tax system is significantly skewed 
towards  supporting  homeownership  and 
demand-side incentives. The main instrument is 
mortgage  interest  rate  subsidisation,  which  is 
available  to  young  households  aged  18–35  that 

(367) Gromóczki, Anton. 2024. Ako vyriešiť bytovú krízu na 

(368) Institute for Financial Policy (IFP) (2023), V nájme ďalej 

Slovensku. Bratislava: Friedrich Naumann Stiftung für die 
Freiheit. 

zájdeš, Ministry of Finance of the Slovak Republic, Bratislava, 
pp. 15. 

127 

 
 
 
meet  income  eligibility  criteria  and  occupy  the 
supported  dwelling  as  their  primary  residence. 
Such  demand-side  support  contributes  to  higher 
housing  demand  and  upward  pressure  on  prices. 
Landlords  are  allowed  to  deduct  from  their  tax 
base only direct operational costs incurred through 
rental activity, but not mortgage interest expenses 
or  maintenance  costs,  unlike  in  many  OECD 
countries  (369).  Recurrent  property  taxes  are  very 
low by international comparison and are assessed 
based  on  area  rather  than  on  land  and  property 
value, limiting their effectiveness as a neutral and 
efficiency-enhancing  housing  tax  instrument  (see 
Annex 3 on taxation).  

For the first time, housing has been elevated 
to  a  strategic  priority  in  the  2021–2027 
Operational  Programme  for  Slovakia,  with 
over  EU 150  million  in  EU  funding  deployed 
to  strengthen  affordable  and  social  housing. 
The  revised  2021-2027  Operational  Programme 
for  Slovakia  allocates  EUR 153  million  in  funding 
from  the  European  Regional  Development  Fund 
and  the  Just  Transition  Fund  to  affordable  and 
including  social  housing. 
sustainable  housing, 
Housing  has  been  introduced  as  a  new  priority  in 
the  programme,  with  planned  investments  in 
student 
energy-efficient 
dormitories,  as  well  as  construction  of  social 
housing  for  Roma  and  other  vulnerable  groups. 
Some of these investments will be  undertaken by 
regions and cities under their integrated territorial 
strategies. 

reconstruction 

of 

Vulnerable groups 

Slovakia’s  housing  cost  overburden  rate 
remains  below  the  EU  average,  although 
housing  affordability  pressures  remain  for 
some  households.  Slovakia’s  housing  cost 
overburden  rate  dropped  from  6.4%  in  2024  (EU: 
8.2%)  to  3.5%  in  2025  (7.7%)  (370).  This  means 
that  a  smaller  share  of  Slovak  households  spent 
more  than  40%  of  their  disposable  income  on 
housing  than  the  European  average.  While  the 

(369) OECD, OECD Economic Surveys: Slovak Republic 2024 (Paris: 

OECD Publishing, 2024), pp. 92. 

(370)The overburden rate should be read together with the tenure 
structure (homeowner, tenants), that may differ across 
country and regions. 

energy  poverty  remains  slightly  below  the  EU 
average, is has increased markedly in recent years. 
The  proportion  of  people  unable  to  keep  their 
home  adequately  warm  rose  sharply  between 
2021  (5.8%)  and  2024  (8.3%),  but  declined 
slightly  in  2025  (8.1%),  while  the  EU  average 
peaked at 10.6% in 2023 and declined to 8.8% in 
2025. This indicates a slower recovery in Slovakia 
despite 
energy 
the 
pressures(371). 

EU-wide 

easing 

of 

The proportion of social housing remains low 
and,  while  demand  continues  to  increase, 
public  support  has  declined.  The  proportion  of 
social housing in the total housing stock is among 
the lowest in the EU (2.5%). An insufficient supply 
of housing at below-market rents that is allocated 
based  on  social  criteria  increases  the  risk  of 
homelessness and housing exclusion, while  at the 
same  time  limiting  the  capacity  to  address  these 
challenges effectively (372). 

live 

The Roma community continues to face large-
scale  housing  exclusion.  In  Slovakia,  many 
families  live  in  segregated  settlements  without 
reliable  access  to  water,  basic  infrastructure  or 
secure  legal  ownership  or  rent  the  land  they 
inhabit.  86%  of  Roma 
in  overcrowded 
conditions,  often  in  segregated  settlements  that 
lack  basic  facilities  such  as  access  to  tap  water 
(373).  Families  encounter  problems  with 
land 
tenure,  either 
ownership 
ownership  or  tenancy,  restricting  infrastructure 
(374). 
investment  and 
Overcrowded,  unsanitary  and  inadequate  housing 
in  marginalised  Roma  communities  undermines 
physical and psychological health and exacerbates 
exclusion.  Children  are  often  exposed  to  serious 
health risks from playing near illegal dumps, while 

increasing  eviction  risk 

rights  and 

legal 

(371) Eurostat, 2024, EU-SILC – Slovakia. 

(372) OECD. 2024. OECD Economic Surveys: Slovak Republic 2024 

 https://www.oecd.org/en/publications/oecd-economic-
surveys-slovak-republic-2024_397ca086-en.html  

(373) Atlas of Roma communities, 2013 (note: the Office of the 

Government Plenipotentiary of the Slovak Republic for Roma 
Communities is preparing an update on the basis of the data 
collected in April 2025). 

The Fundamental Rights Agency (FRA) conducted its 2024 Roma 
Survey across 13 EU countries to monitor progress on the 
EU’s Roma strategic framework up to 2030. Slovakia 
finished collecting data in spring 2025 but its results were 
not included in the published survey database at the time of 
release. Slovakia was included in the FRA’s 2016 survey. 

(374) European Roma Rights Centre, 2016. 

128 

 
 
 
Graph A16.4: 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. 

basic  sanitation  is  largely  absent  (375),  with  only 
5 359  out  of  13 100  residents  connected  to  a 
sewage system. 

insecurity. 

Homelessness  in  Slovakia  rose  markedly  in 
2011-2021.  The  2021  population  and  housing 
census  recorded  71  076  people  experiencing 
homelessness  (1.31%  of  the  population)  using  a 
broad  European  typology  of  homelessness  ‘Light’ 
definition,  compared  with  about  23  483  people 
(0.4%)  in  2011.  This  reflects  not  only  changes  in 
data  collection  methods  but  also  a  real  rise  in 
housing 
2023 
In 
homelessness  census,  2  199  (376)  people  were 
recorded as experiencing homelessness or housing 
In  Košice,  around  2 300  people 
exclusion. 
experience  homelessness  (377). 
In  April  2023, 
Slovakia  adopted  its  first  2023–2030  national 
concept  for  preventing  and  ending  homelessness, 
with  the  aim  of  providing  a  coordinated  strategic 
basis  for  reducing  homelessness.  An  action  plan, 
involving  government,  NGOs  and  local  authorities 
was also drawn up to operationalise the strategy. 

Bratislava’s 

Around half of Ukrainian refugee households 
still  identify  accommodation  as  a  priority 
need,  pointing  to  ongoing  housing  insecurity 
alongside  broader 
integration  challenges. 
Slovakia  has  granted  temporary  protection  to 
approximately  136 000  people  displaced  from 

difficult 

housing 

remains 

Ukraine  since  the  start  of  the  war  in  2022  (378). 
Many  refugees initially lived in state-supported or 
collective  accommodation,  but  securing  stable, 
(379). 
long-term 
Accommodation is  the  top  priority  need  for  about 
half  of  refugee  households,  highlighting  ongoing 
housing  insecurity,  even  though  two  thirds  of 
refugees are employed. Structural barriers include 
the  reduction  in  state-supported  accommodation 
allowances  from  120 to  60  days  for  new  arrivals 
as of March 2025. This was intended to encourage 
integration  but  also 
intensifies  pressure  on 
refugees to find their own housing quickly. 

New  projects  are  adopting  Housing  First 
principles.  Projects  supported  by  the  European 
Social  Fund  Plus  and  national  partnerships  use 
Housing  First  approaches  to  provide  affordable 
housing with comprehensive support. The aim is to 
scale  up  this  model,  starting  in  Košice  and 
continuing  in  Prešov  and  Bratislava.  The  target 
families.  While 
homeless 
groups 
cooperation  with  NGOs  and  the  launching  of  pilot 
projects  show  promise,  in  the  future,  Slovakia 
urgently  needs  to:  (i)  scale  up  housing-led  and 
Housing  First  solutions;  (ii)  expand  social  housing; 
and  (iii)  align  housing  allowances  and  support 
services with the long-term needs of people at risk 
of homelessness.  

include 

(375) Eurochild. 2025. Alarming Report on the Situation of Roma 

Children in Slovakia. Brussels: Eurochild. 

(376) Bratislava. Ľudia bez domova sa rátajú: Záverečná správa zo 
sčítania ľudí bez domova v Bratislave 2023. Bratislava. 

(378) Directorate-General for Migration and Home Affairs. 2025. 
Slovakia: Progress and Challenges in the Integration of 
Displaced People from Ukraine. European Commission. 

(377) https://enrsi.stvr.sk/articles/topical-issue/418769/more-than-
2300-homeless-people-live-in-kosice-with-about-150-on-
streets. 

(379) UNHCR (United Nations High Commissioner for Refugees), 
2024, Slovakia: Socio-Economic Insights Survey 2024. 
UNHCR. 

129 

 
 
 
 
 
 
HORIZONTAL 
ANNEX 17: SUSTAINABLE DEVELOPMENT GOALS 

social 

fairness 

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

Slovakia  is  progressing  towards  the  SDG 
indicators 
competitiveness 
(SDGs 4, 8 and 9), but remains below the EU 

related 

to 

as 

such 

artificial 

from  boosting 

in  2024,  R&D 
average.  At  0.98%  of  GDP 
expenditure  was  significantly  below 
the  EU 
average  of  2.24%  (SDG 9).  This  stifles  innovation 
its 
and  prevents  Slovakia 
productivity  by  employing  more  technological 
solutions 
intelligence, 
digitalisation, automation, cloud systems and other 
scientific  and  hi-tech  breakthroughs.  Only 
22 patent  applications  (per  million  inhabitants) 
were  submitted  in  2025  compared  to  the  EU 
average of 156. The percentage of the population 
aged  25-34  completing  tertiary  education,  a 
crucial 
ingredient  for  raising  the  proficiency, 
competitiveness, and technological aptitude of the 
Slovak population, dropped  to  36.3%  in  2025,  far 
below the EU average of 44.8% for this indicator. 

the 

proportion 

However, 
adults 
participating in learning is increasing, almost 
catching  up  with  the  EU  average.  In  2025, 
11.9%  of  the  Slovak  adult  population  had 
attended  an  education  course  in  the  previous 

of 

Graph A17.1: Progress towards the SDGs in Slovakia 

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. 

130 

 
 
 
 
 
 
 
4 weeks,  compared  to  the  EU  average  of  13.7% 
(SDG 4). 

At  the  same  time,  the  percentage  of 
households  with  a  high-speed 
internet 
connection increased from 45.5% in 2019 to 
73%  in  2024,  slightly  below  the  EU  average 
of  82.5% (SDG 9). 
in  digital 
infrastructure and educational reforms, outlined in 
the  RRP,  should  further 
long-term 
productivity. 

Investment 

improve 

Slovakia is  progressing towards several SDG 
indicators  related  to  sustainability  (SDGs 2, 
6, 7, 9, 11, 12, 13 and 15) and performs well 
on  SDGs  2,  6,  11  and  15.  Slovakia’s  severe 
housing  deprivation  rate was  at  4.0% in  2023,  at 
par with the EU average (SDG 1). It performs well 
on  sustainable  mobility.  Buses  and 
trains 
accounted for 21.7% of total  passenger transport 
in  2023,  well  above  the  EU  average  of  16.9% 
(SDG 11).  It  also  performs  well  on  the  share  of 
municipal  waste  that  is  recycled  (SDG 11).  The 
country  increased  the  percentage  recycled  from 
36.3% in 2018 to 50.3% in 2023, which is above 
the  EU  average  of  47.9%.  Slovakia  is  making 
progress  on  its  net  greenhouse  gas  emissions, 
which  decreased  from  6.6  tonnes  per  capita  in 
2019  to  5.3 tonnes  in  2024,  performing  better 
than  the  EU  average  of  6.5  tonnes  per  capita 
(SDG 13). 

However,  it  needs  to  catch  up  with  the  EU 
average  on  SDGs 7,  9,  12  and  13.  Slovakia  is 
slightly  underperforming  on  indices  pertaining  to 
(SDG 7).  While 
affordable  and  clean  energy 
Slovakia’s  capacity  for  generating  energy  from 
renewable sources increased from 16.9% of gross 
final  energy  consumption  in  2019  to  18.1%  in 
2024, this percentage is still below the EU average 
of  25.2%.  Over 
the  same  period,  energy 
productivity  improved  only  marginally  -  from 
EUR 5.1  per  kilogram  of  oil  equivalent  (kgoe)  to 
the  average  EU 
EUR 6.0  per  kgoe  against 
improvement  from  EUR 8.4  per  kgoe  to  EUR 10.0 
per  kgoe).  Slovakia’s  dependency  on  imported 
energy  as  a  percentage  of  its  overall  energy  mix 
fell  from  69.8%  in  2019  to  53.5%  in  2024, 
standing  just  below  the  EU  average  of  57.3%. 
Investments  and  reforms  that  are  set  out  in  the 
industry 
RRP 
decarbonisation,  energy  efficiency,  waste  disposal 
and  R&D)  as  well  as  cohesion  policy  investments 
under  ‘Programme  Slovakia’  will  boost  Slovakia’s 
performance on environmental SDGs. 

renewables, 

(sections 

on 

On  SDG  indicators  related  to  social fairness, 
Slovakia  performs  above  the  EU  average  on 
SDG 1  but  needs  to  catch  up  on  SDG 4. 
Slovakia  performs  better  than  the  EU  average  on 
poverty-related  indicators  (SDG 1),  partly  because 
of the relatively little variation in earnings among 
workers  within  the  same  industry.  Although  still 
lagging behind the EU average, it is progressing on 
some  quality  education  indicators  (SDG 4).  For 
example, participation in early childhood education 
rose  from  77.8%  in  2019  to  81.8%  in  2024, 
although this rate was still  below the EU  average 
of  95%.  The  high  percentage  of  low-achieving 
fifteen-year-olds  in  mathematics  (33.2%  in  2022 
compared  to  the  EU  average  29.5%)  is  another 
cause for concern. 

It is also lagging behind on SDGs 5 and 7. On 
SDG 5  (Gender  equality), Slovakia  is improving  on 
the ratio of senior management positions held by 
women.  The  percentage  of  women  in  senior 
management  increased  from  22.0%  in  2019  to 
25.8% 
is  still 
in  2025,  though  that  figure 
significantly  below  the  EU  average  of  33.6%.  On 
SDG 7,  Slovakia’s  ability  to  provide  affordable 
energy  has  declined.  The  percentage  of  people 
unable  to  adequately  heat  their  homes  rose  from 
7.8%  in  2019  to  8.3%  in  2024.  However,  this  is 
still  below  the  EU  average  of  9.2%.  The  RRP  and 
‘Programme  Slovakia’ 
to 
improve  pupils’  skills  and  to  make  the  various 
levels  of  the  education  system  fairer  and  more 
inclusive. For example, by creating more places in 
preschool 
school 
curricula,  tackling  the  segregation  of  the  Roma 
training  for 
population,  providing  specialised 
teachers and raising the professional qualifications 
required of teaching staff (Components 6, 7, 8). 

include  measures 

establishments, 

updating 

is  progressing 

towards 
While  Slovakia 
several  indicators  related  to  macroeconomic 
stability  (SDGs 8  and  16),  it  is  moving  away 
from SDG 17 and needs to catch up with the 
EU  average  on  SDGs 8,  16  and  17.  Real  GDP 
per capita in Slovakia rose to EUR 19 270 in 2025, 
but was still below the EU average of EUR 34 110. 
Furthermore, the investment share of GDP slightly 
decreased from 21.7% in 2019 to 20.4% in 2024 
(EU  average:  21.7%).  The  employment 
rate 
increased to 78.1% of the population aged 20-64 
in 2025, outpacing the EU average of 76.1%. The 
long-term unemployment rate also fell to 3.5% in 
2025, though this was still  above the EU average 
of 1.9% (SDG 8). 

131 

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

132 

 
ANNEX 18: COMPETITIVE REGIONS 

Regional development trends 

economic 

foreign  direct 

The  fast  convergence  of  Slovakia’s  economy 
with its EU peers since accession to the EU in 
2004 halted in the last 10 years because of 
the  slowdown  in  the  capital  region  in  and 
around  Bratislava.  Up  to  the  2008  financial 
crisis,  Slovakia’s  integration  into  global  value 
chains, 
investments  and  EU 
accession all acted to drive rapid real convergence 
of  the  country’s  GDP  per  head  with  the  EU 
average.  However,  these  same  processes  that 
drove rapid convergence also led to a widening of 
regional  disparities.  Since  2015,  economic  growth 
has  merely  kept  up  with  the  EU  average,  and 
internal  disparities  between  different  parts  of  the 
country  diminished  due  to  the  relative  decline  of 
the capital region. The capital region of Bratislava, 
concentrated, 
activity 
where 
experienced much faster growth than the country’s 
other three regions until 2008. However, in 2014-
2024,  Bratislava’s  real  GDP  per  head  grew  by  a 
mere 0.9% per year on average, while the growth 
rate  in  the  other  regions  was  between  2.5%  and 
2.8%.  Despite  this  growth  in  the  regions  outside 
the capital, GDP per head there remains far below 
the  EU  average  –  at  70%  of  the  EU  average  in 
Western  Slovakia,  62%  in  Central  Slovakia,  and 
54%  in  Eastern  Slovakia  in  2024.  In  turn,  and 
despite their recent outperformance of the capital 
in  terms  of  growth,  the  gap  between  these  three 
Slovak  regions  and  Bratislava  remains  significant 
(Bratislava has GDP per head that is 153% of the 
EU  average)  (Graph  A18.1  and  Map  A18.1).  At 
NUTS 3  level,  Trnava  in  Western  Slovakia  has  the 
highest  GDP  per  capita  after  Bratislava,  while 
Prešov in Eastern Slovakia has the lowest.  

is 

category)  on  the  regional  innovation  scoreboard 
(380).  Bratislava  outperforms  the  other 
2025 
regions  across  nearly  all  social  and  economic 
dimensions,  especially  in  human  capital,  research 
capacity, and digitalisation. Nevertheless, there are 
significant  differences  between  GDP  per  capita 
and disposable income in the capital region due to 
non-resident  workers.  As  much  as  16%  of  the 
workforce  lives  in  neighbouring  regions  while 
working in Bratislava. 

Graph A18.1: GDP per head (PPS) in % of the EU-27 
average 

Source: Eurostat and ARDECO. 

Map A18.1:  GDP per head compared with the EU 
average 

Disparities 
in  GDP  per  capita  between 
Slovakia’s  regions  reflect  productivity  gaps 
and  weak  innovation  outside  the  capital 
region.  Labour  productivity,  measured  as  real 
gross  value  added  per  worker,  was  111%  of  EU 
average  in  Bratislava  in  2023,  but  only  between 
67%  and  73%  in  the  other  three  regions.  On  the 
positive  side, in  the  region  with the lowest  labour 
productivity,  Eastern  Slovakia,  hourly  productivity 
grew  more  quickly  than  in  the  capital  region  in 
2013-2023.  The  Bratislava  region  is  a  moderate 
innovator,  while  the  other  three  regions  are 
classified  as  emerging  innovators  (the  lowest 

2021-2023 average GDP per head in purchasing power 
standard compared with the EU average. 
Source: Commission calculations based on 16 July 2025 
Eurostat data. 

(380) Regional innovation scoreboard - Research and innovation. 

133 

02040608010012014016018020022020042006200820102012201420162018202020222024SK0 -SlovenskoSK01 -Bratislavský krajSK02 -ZápadnéSlovenskoSK03 -StrednéSlovenskoSK04 -VýchodnéSlovensko 
 
   
 
 
 
 
 
 
 
and 

23% 

remains 

economy 

employment. 

Slovakia’s 
strongly 
oriented  towards  industry,  with  the  notable 
exception  of  Bratislava,  where  high-value 
services  dominate.  Nationally,  in  2024  industry 
accounts  for  around  23%  of  gross  value  added 
(GVA) 
The 
of 
manufacturing  of  motor  vehicles  is  the  country’s 
strongest  industry,  followed  by  metals  and  metal 
products.  Industry  is  particularly  important  in 
Western  Slovakia,  where  it  accounts  for  34%  of 
GVA  and  29%  of  employment.  By  contrast,  more 
than  a  third  of  GVA  in  the  Bratislava  region 
originates  from  information  and  communications 
technologies  and  financial  activities.  These  two 
sectors, 
together  with  professional  services, 
account  for  around  30%  of  employment  in  the 
Bratislava region (Graph A18.2). 

Graph A18.2: Share of employment in different 
sectors (2023), Slovakia, NUTS 2 regions 

Source: Commission calculations based on Eurostat and JRC 
(ARDECO) data. 

Key challenges for regional 
competitiveness 

R&D  expenditure  in  Slovakia  is  low,  even  in 
the capital region. R&D spending reached 1.77% 
in  2023, 
of  GDP 
considerably below the EU average of 2.26%. The 
other  three  regions  lag  behind  with  a  significant 
gap: 0.9% was spent on R&D in Western Slovakia, 

the  Bratislava 

region 

in 

investment 

only,  Western 

0.74%  in  Central  Slovakia  and  0.57%  in  Eastern 
in  the 
Slovakia.  Looking  at  R&D 
business 
Slovakia’s 
sector 
investment  equivalent  to  0.70%  of  GDP  is  quite 
close  to  the  Bratislava  region  (0.89%  of  GDP), 
while  enterprises  in  Central  and  Eastern  Slovakia 
spend less than half of that (0.32% and 0.26% of 
GDP respectively). This distribution reflects both: (i) 
the  concentration  of  high-value, 
innovation-
intensive  activities  in  and  around  the  capital, 
mainly by large foreign-owned companies; and (ii) 
the  existing  financial 
infrastructure  that  can 
support  these  activities.  In  particular,  the  take  up 
of  equity,  concentrated  in  the  Bratislava  region, 
could  be  expanded  in  other  regions,  to  stimulate 
regional  financial ecosystems and innovation (381). 
Slovakia’s  2021-2027  research  and  innovation 
strategy  for  smart  specialisation,  as  well  as  the 
related  regional  innovation  strategies,  set  out 
planned  measures  to  stimulate  innovation.  These 
measures  include  the  creation  of  financing  tools, 
the  building  of 
the 
research 
promotion of collaboration between academia and 
business, and talent development. 

infrastructure, 

Eastern  Slovakia  suffers  from  significant 
weaknesses in its labour market. By 2025, the 
employment rate in the Bratislava region reached 
84.3%,  exceeding  the  EU  average  (76.1%)  by  a 
wide margin.  Employment  was  also  above  the  EU 
average  in  Western  and  Central  Slovakia  (79.5% 
and  79.4% 
respectively).  However,  Eastern 
Slovakia, with  an employment rate of just 72.5%, 
performed  much  worse.  Moreover, 
the 
unemployment  rate  of  9.5%  in  2025  in  Eastern 
Slovakia (well above the national average of 5.4%) 
makes  Eastern  Slovakia  one  of  the  20%  of  EU 
regions that perform the worst on unemployment. 
Eastern  Slovakia’s  share  of  young  people  not  in 
employment,  education  or  training  (NEET),  at 
16.4% in 2025, is almost double that of the other 
three regions, where NEET rates range from 6.6% 
to  8.7%.  Long-term  unemployment  (6.9% 
in 
Eastern Slovakia vs the national average of 3.4%) 
shows  the  same pattern.  The  gender  employment 
gap (the difference between the employment rates 
of men and women) is small in the capital region 
(3.5  percentage  points),  but  sizeable  in  the  other 
three  regions  (ranging  from  8  to  11  pps,  against 
the  EU  average  of  10  pps).  The  degree  of 

(381) OECD (2022), Strengthening FDI and SME Linkages in the 
Slovak Republic, EIB (2025), EIB Investment Survey 2025. 

134 

0255075100EUSlovakiaZápadné SlovenskoStredné SlovenskoVýchodné SlovenskoBratislavský krajAgricultureIndustryConstructionTrade, Transport, AccomICT, Financial, ProfPublicArts 
     
 
 
Table A18.1:Key regional indicators (at NUTS2 level) for Slovakia 

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. 

urbanisation  of  an  area  also  plays  a  role  in  its 
employment  profile.  The  employment  rate  in 
Slovakia’s rural areas (75%) is 7 percentage points 
lower  than  in  its  cities,  while  the  unemployment 
rate and NEET rate are almost more than twice as 
high in rural areas (see also Annex 11). 

Many  young  people  are  leaving  the  less 
developed regions of the country because of 
better  job  opportunities  in  Bratislava.  The 
Bratislava region saw its population grow by 16.4 
people per 1 000 residents per year between 2015 
and  2024,  mainly  thanks  to  net  inward  migration 
(14.4),  but  also  due  to  an  excess  of  births  over 
deaths  (Map  A18.2).  Among  the  other  three 
regions,  only  Eastern  Slovakia  recorded  positive 
growth in natural population (i.e. more births than 
deaths)  between  2015  and  2024.  However,  this 
was  outweighed  by  net  outward  migration.  The 
migration  flows  to  the  capital  are  particularly 
strong  among  young  people.  Over  2014-2023, 
Bratislava  gained  24.1  new  inhabitants  aged  15-
39  per  1 000  residents  annually  while  1.4  young 
people  per  1 000  left  Western  Slovakia  per  year. 
Over  the  same  period,  Central  and  Eastern 
Slovakia  lost  5.1  and  6.2  young  inhabitants  per 
1 000 per year respectively.  

Map A18.2:  Population growth (average ‰ change 
per year), Slovakia, NUTS3 regions, 2015-2024 

Source: Eurostat. 

135 

GDP per head (PPS, index)Real GDP per head growthProductivity: GDP (PPS) per hour worked (index)Real productivity growth (per hour worked)Population aged 25-34 with high educational attainmentUnemployment rateAt-risk-of-poverty or social exclusion rate (AROPE)Access to primary schools  - Rural areasAccess to alternative fuel infrastructureEU27=100Average annual % changeEU27=100Average annual % change% of population aged 25-34% of labour force% of populationChildren under 15 within 15-minute walk to primary school (%)Electric vehicles charging points within 10 km20242014-202420232013-202320252025202520232022EU1001.41000.744.86.021.034288Slovakia752.4792.336.35.416.75147Bratislavský kraj1530.91111.655.52.52.955221Západné Slovensko702.5732.435.33.314.05217Stredné Slovensko622.8672.431.15.416.54615Východné Slovensko542.7732.834.09.526.35428  
 
 
 
 
 
     
 
Table A18.2:Main development trends, challenges and the concentration of resources 

Source: European Commission based on Eurostat data; categories of regions based on Map A18.1. 

Highly 
skilled  workers  and  university 
students  are  concentrated  in  the  capital.  In 
2025,  the  share  of  people  with  a  tertiary 
education in the working age population (aged 25-
64)  is  54.8%  in  the  Bratislava  region,  far  more 
than  in  Western,  Central  and  Eastern  Slovakia 

(25%,  25.8%  and  26.7%,  respectively)  and  has 
been  rising  over  time.  In  2024,  the  Bratislava 
region  accounted  for  40.7%  of  all  full-time 
university  students  in  Slovakia.  This  imbalance  in 
the  location  of  tertiary  education  institutions 
contributes  to  a  sustained  brain  drain  from  the 

136 

 Main development TrendsLess developed regions (population 4.7 million)  With the exception of the capital region, all NUTS 2 regions of Slovakia have GDP per head that is less than 75% of the EU average. Eastern Slovakia has the lowest GDP per capita of all the country’s regions, but it has recorded fast growth in both real GDP and productivity, exceeding other two regions in real GDP growth over the past decade. The poor quality of roads and rail connections, in particular in Eastern Slovakia, contributes to regional disparities. The bulk of foreign direct investment is located in Western Slovakia and the north-west of Central Slovakia, which are well connected to the rest of Europe by dual carriageway roads. Social indicators tend to deteriorate going from west to east. This is the case for long-term unemployment, early leaving from education and training, the percentage of young people neither working nor studying, and energy poverty. This phenomenon is partly related to the presence of sizeable Roma communities in Central and mainly Eastern Slovakia and the specific challenges they face. These two regions also suffer from outward migration. On the other hand, thanks to its universities and related business activity, the NUTS 3 Košice region in Eastern Slovakia is among the most productive ones in Slovakia and has seen fast growth in employment in high-technology sectors.  More developed regions (population 0.7 million) The Bratislava region stands out as the most competitive in Slovakia, attracting businesses and skilled workers with its infrastructure, market size and proximity to the other major economic centres of central and eastern Europe. Most public institutions, universities, and business headquarters are located in the capital. However, the Bratislava region is also facing challenges in housing affordability and public transport. Extremely high property prices and rents in Bratislava restrict labour mobility to the capital and reduce the disposable incomes of its residents. There are significant bottlenecks in the capacity and frequency of public transport connections between Bratislava and its satellite towns. Specific TerritoriesThere are still economic, environmental and social challenges to be tackled in the regions that are undergoing the transition to a low-carbon economy. Slovakia’s territorial Just Transition Plan identifies specific territories that are the most affected by these transition processes, namely within the Trenčín and Banská Bystrica regions in Central Slovakia and within the Košice region in Eastern Slovakia. Although carbon combustion is no longer used for electricity production, Slovakia’s vast potential for renewable energy sources (mainly geothermal) remains unused, and the energy efficiency of public buildings continues to be an issue.The Eastern Border Region [bordering Ukraine] is facing specific challenges from Russia’s war of aggression against Ukraine, related to security concerns and a potential renewed influx of refugees.Rural areas are affected by depopulation linked to limited job opportunities. Specific issues in rural areas include access to healthcare and the low energy efficiency of dwellings. In major cities, and the capital in particular, housing affordability is an acute problem, putting financial pressure on young families and public sector workers. At the same time, the problem of housing affordability is leading to urban sprawl and the overloading of suburban transport infrastructure.National cohesion aspects Slovakia has no high-speed railway and no firm plan to build any, although the country would greatly benefit from it given its elongated shape and its position at the crossroads of central Europe’s major transport corridors. Slovakia also stands out in Europe for not having an uninterrupted dual-carriageway connection between its two largest cities, Bratislava and Košice. A significant portion of the railway network consists of single-track lines without electrification, which restricts both speed and capacity. Trains travel at relatively slow speeds and are prone to delays and accidents.  These are major bottlenecks for the economic development of Eastern Slovakia. The transport infrastructure in the capital region itself has also not kept up with the needs of the growing population.Slovakia still allows mixed municipal waste to be landfilled without pre-treatment. Slovakia has still not remediated its many contaminated waste sites. Significant investment gaps exist in water and wastewater management, with many agglomerations in less developed regions not meeting EU standards on urban wastewater treatment. Nature and biodiversity protection is severely underfinanced. The deployment of renewables and energy efficiency improvements could accelerate. 
 
   
 
digitalisation (see also Annex 4) (383). While overall 
broadband coverage in rural areas is above the EU 
average, access to high-speed broadband services 
by  rural  households  is  significantly  lower  than  on 
average  in  the  EU,  especially  in  Central  Slovakia 
(384). In 2024, only 39.6% of rural households had 
access  to  high-speed  internet,  compared  with  the 
EU average of 61.9%.  

Map A18.3:  Rent capacity relative to income, 2024 

country’s  other  regions.  The  brain  drain  is  even 
more  severe  at  national  level.  Around  20%  of 
secondary  school  leavers  who  choose  to  pursue 
tertiary education enrol in foreign universities (382).  

Slovakia’s less developed regions have much 
worse transport connectivity, in particular by 
train.  Rail  connectivity,  defined  as  the  share  of 
the population within a 120 km radius who can be 
reached  within  1h30  by  train,  is  below  the  EU 
average in all regions except Bratislava (18%), the 
country’s main rail hub. This share drops to around 
4% in Western and Eastern Slovakia and to 3% in 
mountainous Central Slovakia, reflecting the lower 
network  density  and  slower  connections.  The 
country’s  road  network  compensates  to  a  certain 
extent for its weak rail accessibility. By car, 88.5% 
of  the  population  within  a  120 km  radius  can  be 
reached within 1h30 in the Bratislava region, 57% 
in Western Slovakia, 38% in Central Slovakia, and 
44% in Eastern Slovakia.  

regions,  although  access 

Access  to  schools  is  good  even  in  the  less 
developed 
to 
healthcare services could be improved. In the 
Bratislava  region,  75%  of  children  under  the  age 
of 15 live within a 15-minute walk to a school. In 
the  other  three  regions,  this  share  is  lower 
(between  60%  and  66%),  but  still  above  the  EU 
average  of  59%.  Even  in  rural  areas,  where  over 
40% of the country’s population reside, about half 
of children can walk to school in 15 minutes, while 
in the EU as a whole only 34% of children living in 
rural  areas  can  do  so.  Access  to  healthcare  is 
equally  important  in  preventing  the  depopulation 
of rural areas and attracting highly skilled workers 
to 
regions.  The  number  of 
physicians 
(generalist  and  specialist  medical 
practitioners)  per  100 000  inhabitants  in  the  less 
developed regions of Slovakia is less than half the 
number  in  the  Bratislava  region.  With  the  help  of 
EU funding, Slovakia has been taking measures to 
develop  out-patient  healthcare  services  and 
increase  the  number  of  general  practitioners  in 
underserved areas (see also Annex 15). 

less  developed 

Digital connectivity can be further improved, 
particularly in rural areas. Despite some recent 
improvement,  Slovakia  still  lags  behind  in  the 
rollout  of  digital  infrastructure  and  in  business 

Square metres that can be rented using 1/3 of disposable 
income in 2024 by NUTS3 region. 
Source: ESPON-H4ALL. 

Housing affordability is problematic not only 
in  Bratislava,  but  also  in  Slovakia’s  less 
developed  regions.  The  preference  for  owner-
occupied housing is strong in Slovakia. Only 7% of 
the population (the second lowest share in the EU) 
live  in  rented  dwellings.  However,  people’s  home 
purchase capacity is lower in Slovakia than in most 
other  European  regions.  Using  the  rule  that  no 
more  than  one  third  of  disposable  income  should 
be  spent  on  shelter,  the  Slovak  incomes  are  only 
enough  to  purchase  (via  mortgage)  a  home  of 
between 30 and 40 square metres across most of 
the  country,  and  even  less  than  that  in  Eastern 
Slovakia.  Renting  offers  even  less  space  than 
buying.  Rental  affordability  for  new  contracts  is 
among  the  worst  in  Europe  in  all  three  of  the 
country’s  less  developed  regions  and  only  slightly 
better  in  the  Bratislava  region,  reflecting  much 
higher  incomes  there  than  in  the  rest  of  the 
country  (Map  A18.3).  Younger  households  and 
public  sector  workers  are  particularly  affected  by 

(382) Brain drain - Odliv mozgov | Ministerstvo školstva, výskumu, 

(383) Slovakia 2025 Digital Decade Country Report. 

vývoja a mládeže Slovenskej republiky. 

(384) Digital Decade 2025: Broadband Coverage in Europe 2024. 

137 

 
 
 
 
 
 
developed  regions,  in  particular  to  supply  district 
heating  networks.  The  largest  geothermal  project 
in  Slovakia  will  soon  supply  the  central  energy 
supply  system  in  Košice.  It  would  be  possible  to 
double  the  capacity  currently  being  built  for  this 
system  in  Košice.  There  is  also  great  potential  in 
other  transforming  regions,  e.g.  in  the  Žiarska 
kotlina  basin  (in  the  Banská  Bystrica  region  in 
Central  Slovakia)  or  Hornonitranska  kotlina 
(Trenčín  region  in  Western  Slovakia)  with  already 
existing, often unused geothermal wells (385). 

Table A18.3:Wind and solar photovoltaic energy 
production and potential in Slovakia, by degree of 
urbanisation, 2023 

the  high  cost  of  housing  in  big  cities  (see  also 
Annex 16). 

Eastern  Slovakia  performs  distinctly  worse 
on  social  inclusion  than  the other  regions.  In 
2025,  the  share  of  the  population  at  risk  of 
poverty and social exclusion (AROPE rate) was very 
low  (2.9%)  in  the  Bratislava  region  and moderate 
in  Western  and  Central  Slovakia  (14.0%  and 
16.5%), but it stood at 26.3% in Eastern Slovakia, 
making  this  one  of  the  weakest-performing 
regions  in  the  EU.  The  same  picture  emerges  for 
energy  poverty,  which  is  more  than  twice  as  high 
in  Eastern  Slovakia  as  in  the  second  worst 
performing  region  of  Central  Slovakia.  These 
outcomes, strongly correlated with poor education 
and  labour market performance,  are  linked  to the 
remote  character  of  the  region  and  to  the  strong 
presence 
Roma 
communities. 
living  conditions  by 
investing  in  infrastructure;  improving  education 
outcomes;  and  better  socio-economic  inclusion  of 
Roma  remains  a  high  priority  (see  also  Annexes 
11, 12 and 13). 

of  marginalised 

Improving 

there 

Regional  disparities 
in  greenhouse-gas 
emissions  persist  and  the  penetration  of 
electromobility is low. In 2024, greenhouse gas 
emissions  per  head  were  below  the  EU  average 
(7.0  tCO2  equivalent)  in  Central  Slovakia  (the 
region  with  the  lowest  emissions  per  head  at  5.0 
tCO2  equivalent),  close  to  the  EU  average  in  the 
Bratislava region and above it in Western Slovakia 
and  Eastern  Slovakia  (Eastern  Slovakia  was  the 
region with the highest emissions per head at 8.1 
tCO2  equivalent).  While  the  Bratislava  region  had 
twice as many charging points for electric vehicles 
per  million  inhabitants  as  the  other  regions  in 
2021 (65 vs 30-35), it was still barely half of the 
EU average (120). 

There  is  untapped  potential  for  renewable 
energy  production  in  Slovakia,  especially  in 
rural  areas.  In  2023,  wind  energy  production  in 
Slovakia was virtually zero, while the production of 
solar photovoltaic energy was less than half of the 
EU average (see also Annex 9). There is significant 
untapped potential  for solar energy in rural  areas 
and  some  untapped  potential  in  semiurban  areas 
(Table  A18.3).  While  preserving  natural  and 
agricultural resources, citizen-led energy initiatives 
important  drivers  to  empower  rural 
can  be 
communities  to  tap  into  their  local  renewable 
energy  sources.  There  is  also  room  for  greater 
exploitation  of  geothermal  energy  in  all  the  less 

Units are MWh/year/capita. 
Source: Rural observatory, Perpiña Castillo et al., “Renewable 
Energy production and potential in EU Rural Areas,” JRC, 
European Commission, 2024. 

The  2025  country-specific  recommendation 
for  Slovakia  highlighted  the  importance  of 
providing  quality  public  services  at  the  local 
level,  stating  the  need  to  ensure  quality 
public  services  through  better  coordination 
and  policymaking.  To  address  fragmented  local 
administrative capacity, Slovakia created, with the 
support  of  EU  funds,  a  network  of  21  Shared 
Service  Centres  by  combining  expertise  and  back-
office  functions  across  groups  of  municipalities, 
especially  in  lagging  regions  (see  also  Annex  7). 
The strategies developed by regions and cities for 
integrated  territorial  investments  supported  by 
cohesion  policy  funding  also  help  to: (i)  overcome 
fragmentation; (ii) build capacity at local level; and 
(iii)  coordinate 
investment  activities  beyond 
municipal borders.  

Limited  fiscal  decentralisation  and  the  high 
degree  of  fragmentation  of  municipalities 
lead to inefficiencies in local governance and 

(385) Geothermal Energy Use – Country Update for Slovakia (2019 
– 2022), Proceedings World Geothermal Congress 2023. 

138 

Onshore windProductionSK0.000.000.000.00EU-270.770.050.382.38Technical potentialSK0.410.040.220.69EU-273.290.121.4110.59Solar PVProductionSK0.230.050.230.30EU-270.560.140.581.17Technical potentialSK9.531.885.1315.50EU-2724.842.4413.1874.20IndicatorTotalCitiesTowns/ suburbsRuralareas 
 
     
 
 
rely  on 

restrain  investment  capacity  at  subnational 
level.  There  are  almost  3 000  municipalities  in 
Slovakia,  65%  of  which  have  fewer  than  1 000 
residents  (386).  Own-source  tax  revenues,  mainly 
from  property  tax,  form  only  5.7%  of  subnational 
revenues (compared to the EU average of 39.9%) 
(387)  and regions have no tax  autonomy  at all (i.e. 
they  cannot  raise  their  own  taxes).  Municipalities 
the  central 
largely 
(revenue  sharing  from  personal 
government 
income 
local 
to 
expenditure). These transfers are calculated based 
on the number of registered residents, which often 
does not correspond to the actual population living 
in the municipality. As a result, some municipalities 
to  which  people  move  for  work  are  underfunded. 
Similarly,  small  municipalities  with  large  tourist 
inflows  do  not  get  enough  resources  to  cover 
demand for basic services (388).  

tax  and  grants 

transfers  from 

finance 

(386) Statistical Office of the Slovak Republic, Size Groups of 

Municipalities, 2024. 

(387) OECD (2025), Subnational governments' structure and 

finances in OECD countries: Key data. Indicator: subnational 
tax revenue as % of subnational revenue in 2023.  

(388) OECD (2025), Preparing for Demographic Change in the 
Banská Bystrica Region, Slovak Republic, OECD Regional 
Development Studies, OECD Publishing, Paris. 

139 

 
 
 
ANNEX 19: TRANSPORT 

This  Transport  Annex  presents  the  state  of  play 
and  the  challenges  Slovakia  faces  with  the 
implementation  of  the  trans-European  transport 
network  (TEN-T),  the  European  railway  traffic 
management system (ERTMS) and road safety 

Three  European  transport  corridors  cross 
Slovakia  (Baltic  Sea-Adriatic  Sea,  Baltic  Sea 
–  Black  Sea  –  Aegean  Sea,  Rhine  –  Danube). 
The Slovakian TEN-T rail network is 1 576 km long 
(727 of  which  are  on  the core  network).  The  road 
network  is  1 559 km  long  (846  of  which  on  the 
core  network).  Slovakia  has  413 km  of  inland 
waterways,  three  airports  (including  one  core 
airport), 2 ports (including two core port) and four 
urban nodes on TEN-T (389). 

compliance  with 

Rail  infrastructure  in  Slovakia  has  improved 
considerably  over  last  two  decades  but 
significant  investments  are  still  needed  on 
the  core  and  extended  core  network  to 
ensure 
TEN-T 
full 
in  the  country.  The  most 
requirements 
important transport projects in Slovakia will be  to 
finalise  the  modernisation  of  the  Žilina-Košice 
railway  line,  which  is  part  of  the  main  east-west 
axis  between  the  second  biggest  city  of  Slovakia 
and  its  capital.  Furthermore,  the  Bratislava  rail 
node  is  currently  a  major  bottleneck  and  its 
modernisation  will  greatly  improve  traffic  flows 
not  only  in  Slovakia  but  also  in  neighbouring 
countries.  

The  ERTMS  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 

By  the  end  of  2024 (390),  the  ERTMS  was  in 
operation  on  9%  of  the  TEN-T  network  in 

(389) TENtec Information System, according to Reg. 2024/1679 

(390) Based on ERTMS – Third work plan of the European 

Coordinator Matthias Ruete. 

Slovakia. To meet its national  plan’s ERTMS roll-
out  target  by  2035,  Slovakia  aims  to  deploy 
ERTMS over an additional length of 497 km. 

faces 

challenges 

Slovakia 
in 
several 
implementing  major  infrastructure  projects. 
Delays  in  delivery  are  predominantly  generated 
during  the  project  preparation  and  permitting 
phases.  This  often  results  in  prolonged  pre-
investment  phases  and  delays 
reaching 
sufficient  project  maturity  for  procurement  and 
construction.  

in 

Public procurement procedures also remain a 
source  of  delay.  These  are  often  linked  to 
requests for clarifications as well as appeals from 
bidders,  which  extend 
timelines  and 
postpone  contract  signature.  Delays  are  also 
observed  during  zoning  and  building  permit 
consultations  are 
procedures,  where  public 
frequently  prolonged  due 
to  administrative 
appeals. 

tender 

of 

implementation 

The 
infrastructure 
projects  has  been  further  affected  by  the 
entry into force of the new Construction Act 
in  2025.  While  the  reform  was  intended  to 
streamline  and  accelerate  approvals,  its  initial 
implementation  has  revealed  significant  capacity 
constraints, which still need to be addressed.  

It  would  benefit  Slovakia  to  continue  to 
improve  the  National  Safety  Authority’s 
operating  conditions.  It  still  faces  challenges 
related to its budgetary and staffing autonomyand 
the need to strengthen both the effectiveness and 
the risk‑based nature of supervision. 

the  EU  directives  on 

Harmonising  technical  and  operational  rules 
with  the  minimisation  of  national  rules  in 
line  with 
rail 
interoperability and safety remains critical to 
ensuring seamless cross-border rail transport. The 
proper  notification  and  clean-up  of  its  national 
rules by committing to the envisaged processes at 
EU level is not yet completed. 

140 

 
 
 
 
Map A19.1:  TEN-T 

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 
innovation, 
resources 
education,  healthcare  and  other  crucial  public 
investments (391). 

could  otherwise 

fuel 

In  2024,  Slovakia  was  slightly  above  the  EU 
average  (45),  with  48  road  fatalities  per 
million  inhabitants.  A  decrease  of  5%  in  road 

Table A19.1:ERTMS deployment in Slovakia. 

fatalities  was  achieved  compared  with  2019.  In 
2023, 894 serious injuries were recorded, which is 
15%  lower  than  the  figure  for  2019.  Compared 
with  the  EU  average,  the  distribution  of  fatalities 
in  Slovakia  included  a  high  proportion  of  car 
occupants  and  pedestrians,  as  well  as  of  people 
aged  between  25-49  years  old.  Additionally,  a 
significant  increase  was  recorded  in  fatalities  in 
single vehicle crashes and on motorways between 
2019 and 2023.   

Based on  the latest  available data,  Slovakia 
is  not  yet  on  track  to  meeting  the  2030 
target  of  50%  fewer  fatalities.  The  lack  of 

(391) Report on the implementation of the EU Road Safety Policy 

framework at the Mid-Point, COM(2026) 77 final. 

Source: Based on ERTMS – Third work plan of the European Coordinator Matthias Ruete. 

141 

 
 
 
 
 
 
 
 
 
the 

traffic 

inadequate 

regulations), 

progress  is  mainly  attributed  to  the  high  rate  of 
risky  driver  behaviour  (in  particular  speeding  and 
disregarding 
the 
underestimation  of  road  safety  risks  by  the 
general  public, 
systematic 
regional 
cooperation  between  national  and 
authorities in implementing road safety measures, 
and  the  increase  in  the  number  of  registered 
motor  vehicles  in  Slovakia  over  the  period.  A 
possible  way  to  address  this  could  be  by  re-
defining  the  road  safety  management  model, 
ensuring better coordination between national and 
increased 
for 
regional  authorities, 
preventive  activities 
implement  effective 
to 
measures,  and  exploring  any  other  relevant 
actions, that could better address the road safety 
challenges set out above(392).  

funding 

Graph A19.1: Slovakia's road fatalities per million, 
2024 

Source: Report at the Mid-Point - Slovakia, SWD(2026) 56 
final. 

The  map  below  presents  the  roads  where  the 
safety of the infrastructure is poor and thus where 
urgent action is required. 

Map A19.2:  Slovakia's road safety map 

Source: TENtec Information System and TEN-T map library – 
European Commission 

(392) More details in Report on the implementation of the EU Road 

Safety Policy framework at the Mid-Point – Slovakia, 
SWD(2026) 56 final. 

142 

 
 
 
 
 
 
143