AGP Executive Report

Gas & Prices: EU gas storage sits at 65.85% (744.31 TWh) on 3 September, but the picture is uneven: Germany (53.67%) and the Netherlands (48.21%) are far less full than Italy (83%+) and Poland/Portugal (93%+), raising fresh price nerves ahead of winter. Cybersecurity: Slovakia-based ESET warns France is among the most targeted countries for cyberattacks as Europe keeps digitising; ANSSI data shows security events rising sharply and data theft growing even as ransomware slightly eases. Energy Corridors: North Macedonia and Serbia formally join the Vertical Gas Corridor, extending access into the Western Balkans and linking the region to Greece’s system and LNG routes. Nuclear Cooperation: Bulgaria and Slovakia plan a joint nuclear commission and both are negotiating with Westinghouse for new reactors, with leaders framing nuclear as key to EU climate neutrality and future industry. EU Budget Fight: Senior EU officials push for new “own resources” taxes for the 2028–2034 budget, clashing with frugal states over how much revenue new taxes can realistically raise. Auto Industry: Volkswagen’s board approved Future Plan 2030, clearing another 50,000 job cuts globally while Germany’s key plants remain undecided until June 2027. Slovak Economy: Slovakia’s GDP grew 0.8% year-on-year in Q2, with growth still below 1% for six quarters. Education Costs: Slovakia’s education ministry is preparing an automatic pay-rise system tied to the national average wage, aiming for presentation by year-end.

Volkswagen Restructuring: VW’s supervisory board has unanimously approved its Future Plan 2030, clearing another 50,000 job cuts globally, but four German plants still face an uncertain future as VW must deliver a viable European production strategy by June 2027. Slovakia-Bulgaria Energy Push: Prime Minister Robert Fico’s visit to Bulgaria focused on closer economic ties and a new joint nuclear-energy commission, with both sides negotiating with Westinghouse for AP1000 reactors. EU Sanctions Standoff: Slovakia blocked a proposed one-year extension of EU sanctions on Russian individuals and firms, pushing for a six-month renewal and changes to the list ahead of a Sept. 9 deadline. Gas Corridor Expansion: North Macedonia and Serbia joined the Vertical Gas Corridor, extending the route that already includes Slovakia and aiming to boost supply security and cross-border capacity. Slovak Economy Data: Slovakia’s GDP grew 0.8% year-on-year in Q2, with growth still below 1% for six quarters. Climate & Innovation Funding: Early-stage climate tech ventures in Bratislava can apply for up to €50,000 grants via the Shine 2027 programme. Education Pay Plan: Slovakia’s education ministry is preparing an automatic pay-rise system for teachers tied to the national average wage, targeting presentation by year-end. EV Manufacturing in Slovakia: Hyundai Mobis started mass production of integrated EV power-electric systems in Nováky, adding a major drivetrain component plant to its European network. Security Risks in Europe: Reports point to a Russia-linked sabotage wave across Europe, including a thwarted arson attempt in Slovakia against a drone manufacturer.

EV Manufacturing in Slovakia: Hyundai Mobis has started mass production at its new power-electric systems plant in Nováky, with capacity up to 280,000 integrated EV propulsion (PE) systems a year, adding stator and inverter lines after KRW250bn investment. Sanctions Politics: Slovakia blocked an EU one-year extension of sanctions against over 3,000 Russian individuals and companies, pushing talks to a Sept. 9 deadline and seeking a six-month renewal plus name deletions. AI Cooperation: Nine Central and Eastern European countries signed the Prague AI Declaration to deepen AI policy coordination, connect computing capacity for “AI factories/gigafactories,” and shape EU rules together. Slovak Public Finance: The state budget deficit hit €3.675bn at end of August, down year-on-year but up versus July, as revenues rose faster than spending. Healthcare Innovation: Siemens Healthineers opened its SHIFT Innovation Center in Bratislava, focusing on clinical AI, healthcare cybersecurity, and quantum tech. Transport & Connectivity: FlixBus launched a year-round Vienna Airport–Bratislava Airport link (911) running four times daily to cut travel friction between the capitals. Hybrid Threats in Europe: Germany blamed Russia for a failed drone attack on Leipzig Airport, amid a wider wave of suspected sabotage and fires across Europe.

State Finances: Slovakia’s state budget deficit hit €3.675bn at end of August, down 14.6% year-on-year, but up nearly a quarter versus July, as revenues rose to €17.294bn while spending climbed to €20.979bn. Labour & Pay: Average nominal monthly salary in Slovakia rose 3.2% year-on-year to €1,707 in 2Q26, while real pay fell 0.5% after inflation. Auto & Industry: Hyundai Mobis opened a new plant in Nováky to mass-produce EV “power electric” systems (stators, inverters and more), with capacity up to 280,000 units a year. Healthcare Innovation: Siemens Healthineers launched the SHIFT Innovation Center in Bratislava, focusing on AI for clinical use, healthcare cybersecurity and quantum tech. Energy & Costs: Romania’s day-ahead power prices jumped in August (up ~25% vs July and more than double vs a year earlier), driven by low river flows, reduced hydropower and higher reliance on imports. Transport & Mobility: FlixBus launched a year-round direct bus link between Vienna and Bratislava Airport, running four times daily. EU Sanctions Politics: Slovakia blocked an EU move to lock in Russia sanctions for 12 months, with talks still ongoing for the next review. Security & Disruption: German investigators blamed Russia for a failed drone attack on Leipzig Airport; in Slovakia, authorities also foiled an arson attempt targeting a Ukrainian drone firm. Local Economy: Bratislava’s Horský park car park is no longer free, with daily fees introduced after years of free parking.

EV Supply Chain in Slovakia: Hyundai Mobis opened and started mass production at its new Novaky plant, producing up to 280,000 electric powertrain “PE systems” a year, with the facility set to supply Hyundai/Kia and other automakers across Europe. Auto Restructuring Shock: Volkswagen management is pushing ahead with plans to close four German plants (Emden, Hanover, Zwickau, Neckarsulm) as part of a broader cost-cutting drive, with production reportedly shifting to sites including Slovakia. Energy Prices Watch: Romania’s day-ahead electricity price jumped about 25% month-on-month and more than doubled year-on-year in August, driven by nuclear outages, low river flows, weaker hydropower and higher reliance on imports. Local Business & Commuting: Bratislava’s Horský park parking is no longer free, with the Búdková Street car park now charging up to €10 per day. EU Russia Sanctions: EU ambassadors postponed a decision on extending individual sanctions on 3,000+ Russian entities until 9 September, with Slovakia backing shorter renewals and proposing removals from the list. Packaging Compliance Debate: PPWR implementation is pushing companies toward documentation-heavy compliance, with some industry voices arguing firms should go beyond minimum legal requirements. Transport & Trade Links: Rostock Port completed intermodal terminal track upgrades, extending capacity for longer trains and boosting weekly freight services to destinations including Slovakia.

Volkswagen Restructuring: Volkswagen management is reportedly pushing ahead with a plan to phase out production at four German plants (Emden and Zwickau by 2031, Hanover by 2032, Neckarsulm by 2034), citing competitiveness and profitability pressures, with some output potentially shifting to lower-cost sites including the Czech Republic, Slovakia and Poland. EU Sanctions Deadlock: EU ambassadors (Coreper) postponed a decision on extending individual Russia sanctions covering 3,000+ people and entities until 9 September, with Slovakia backing the usual six-month renewal and proposing removals from the list. Slovakia Policy Evaluation: The Slovak government is launching a new monitoring and evaluation phase for Roma-related public policies, funded with €5.68m+ from the EU and the state to improve data-driven decisions and integration outcomes. V4+Japan Business Links: Slovakia’s foreign minister says V4 countries and Japan want to restart regular dialogue and expand cooperation in science, research, AI and supply-chain resilience, with a focus on “Made in the EU” and trusted partners. Vision Slovakia 2040: The government presented the non-partisan “Vision Slovakia 2040” framework, stressing reforms in the state, economy, sustainability and a modern public administration, with EU funds seen as key for turning the vision into investments. US-Slovakia Energy Ties: President Trump sent Slovakia a Constitution Day message highlighting NATO cooperation and new opportunities for an energy partnership, including civil nuclear cooperation. Cybersecurity in Auto: Maruti Suzuki’s CEO warned that as carmakers digitise, cybersecurity and contingency planning must keep pace with evolving threats.

Ukraine Recovery & Diplomacy: Japan and Poland agreed in Bratislava to coordinate support for Ukraine’s reconstruction, framing it as part of wider security cooperation across Europe and the Indo-Pacific. V4–Japan Tech Push: The same Bratislava talks also set a plan to boost research and business cooperation in areas like AI, with ministers stressing resilient supply chains and less dependence on single countries. Logistics Expansion: Nova Post has entered Canada, processed 3,000+ shipments so far, and says it will expand its network via partners and a franchise model while pushing faster delivery links between Canada and Ukraine. Slovak Economy Watch: Bank analysts cut Slovakia’s 2026 growth forecast to 0.8%, citing pressure from policy and banking-sector impacts. AI Infrastructure in Košice: Caprelion is starting early discussions for a planned ~2.5 MW high-density AI data-centre deployment in Košice, targeting readiness in the second half of 2027. Energy & Security Risks: A fire at Russia’s Proton-PM plant near Perm reportedly hit rocket-engine production tied to Angara and Rassvet, underlining how industrial supply chains remain exposed. EU Tourism Snapshot: Slovakia recorded a 5.9% rise in overnight stays in the first half of 2026, even as Cyprus saw the steepest EU drop (-7.7%). Poland Sabotage Probe: Poland opened a terrorism investigation into a fire at a drone-components factory, with prosecutors suspecting deliberate sabotage linked to foreign intelligence.

Armenia–Slovakia Ties: PM Nikol Pashinyan congratulated Robert Fico on Constitution Day and flagged deeper cooperation in energy, high tech, trade, education and science. V4–Japan Tech Push: Slovakia hosted Visegrad Four foreign ministers with Japan’s Motegi near Bratislava, agreeing to strengthen AI and research links and to build more resilient supply chains; Motegi noted 900+ Japanese firms operate across the region. Slovakia–Japan Strategic Partnership: Fico and Motegi also discussed industrial modernisation, including Nippon Steel’s move for U.S. Steel Košice. EU Tourism Mix: Eurostat shows EU overnight stays up 1.7% in H1 2026, with Slovakia rising 5.9%—while Cyprus fell 7.7%, underlining how exposed some markets remain to foreign demand. Slovalco Restart: Slovalco began a gradual restart at its Žiar nad Hronom aluminium smelter, targeting 75,000 tonnes/year first phase, with at least €100m investment and 200+ jobs supported by emissions-cost measures. AI Infrastructure in Košice: Caprelion is in early talks for a planned ~2.5 MW high-density AI node in Košice, aiming for readiness in H2 2027. Cybersecurity: ESET reports a Russia-aligned actor used a “GuardBreaker” trick to disrupt AI-assisted analysis by steering models away from malicious code. Housing & Rentals: Cyprus may get clearer rules to restrict short-term rentals in “housing stress” areas under an EU proposal, but only after mapping where pressure exists.

Slovalco Restart: Slovakia’s Slovalco has begun a gradual restart of its Žiar nad Hronom aluminium smelter, aiming to bring back 75,000 tonnes of primary output in the first phase, backed by at least €100m investment and designed to protect competitiveness under the EU emissions allowance system. Network Upgrade: Mobile operator 4ka is upgrading its core network from September to November, with work mainly at night to limit customer disruption across 2G/4G/5G. EU Budget Pressure: Outcry is growing over the 2027 draft budget after it posts the second-highest deficit in history, raising fresh questions on fiscal sustainability. Cybersecurity & AI: Slovak firm ESET says a Russia-aligned actor (UAC-0099) used a new “GuardBreaker” trick to disrupt AI-assisted analysis by steering models away from malicious code. EU Housing Rules: A new EU proposal could let Cyprus restrict short-term rentals in “housing stress” areas, but only after proving where pressure exists and pairing any limits with supply-boosting measures. Central Europe in the EU: President Peter Pellegrini urged Central European countries to speak up more strongly in Brussels and push for pragmatism over ideology. Poland Defence Supply Chain: Poland is investigating a suspected sabotage fire at WB Electronics, while Reuters reports Warsaw is also pivoting defence procurement toward domestic and Central European production to reduce reliance on distant suppliers. Armenia-Slovakia Ties: Armenia’s PM sent a Constitution Day message to Robert Fico, highlighting plans to deepen cooperation in energy, high tech, trade, education and science. Regional Investment Snapshot: Romania’s real estate market saw about €300m in transactions in H1 2026, with investors staying selective for stable income and energy performance.

Public Finance Watch: Slovakia’s Budget Responsibility Council says long-term public finance sustainability wasn’t achieved in 2025, warning the government failed to act after debt brake indicators worsened. EU Budget Talks: EU Council President Antonio Costa is pushing for unanimity on the next EU budget after meeting Slovakia and other capitals, as “frugal” states argue for cuts while backing higher defence, competitiveness and migration spending. Slovak Economy Outlook: Bank analysts slightly trimmed Slovakia’s 2026 growth forecast to 0.8% while keeping inflation at 3.7%. Diplomacy & Trade: Japan’s foreign minister visited Slovakia for the first time in 19 years, with talks on upgrading ties to a strategic partnership. Security & Industry: A suspicious fire at Poland’s WB Electronics drone components plant is being investigated as possible sabotage, adding to a wider pattern of incidents at defence-linked sites. Business & Energy: Orange Slovakia signed a 10-year solar PPA with Enery, extending renewable energy supply. EU Employment Rules: New EU employment law shifts the burden of proof toward workers, changing how companies must defend pay and classification disputes.

Slovak Economy Watch: Bank analysts at the National Bank of Slovakia slightly cut the 2026 growth outlook to 0.8% while keeping inflation at 3.7%, and flagging a small dip in employment. Banking Pressure: Slovakia’s banks posted higher profits on paper in H1 but less in real terms as Fico’s bank levy bites, underlining how foreign-owned lenders weigh on returns and competition. EU Budget Fight: EU leaders including Germany’s Merz push for a smaller 2028–2034 EU budget, with Costa touring capitals including Slovakia to build unanimity on priorities and who pays. Ukraine Trade Shock: Ukraine’s grain exports are taking a hit as port blockades and logistics disruptions raise fears of a wider economic crisis. Digital Mobility: MÁV says international rail demand from Hungary keeps rising, with nearly two-thirds of tickets now bought digitally via MÁVPlusz and online. Manufacturing & Tech: Reinforce3D’s CFIP reinforcement tech is moving toward wider industrial adoption via a CEE sales partnership with 3Dees, including Slovakia. Local Business Spotlight: Bratislava’s artisanal ice lollies business shows how niche food brands survive tough admin and VAT changes without chasing supermarket scale. Security & Risk: Reports point to a rise in Russia-linked “gray zone” incidents across Europe, while Slovakia-linked sabotage plots and drone-related cases keep attention on business and infrastructure safety.

Slovak Banking Watch: Slovakia’s banks posted higher pre-tax profits in H1 but lower in real terms as Robert Fico’s bank levy bites, highlighting weak capital returns and pressure on lending capacity. Digital Identity & Regulation: Slovakia approved a bill to restrict large social platforms to users 16+ using age checks that can’t rely on self-declaration, pushing demand for privacy-preserving biometric age assurance. Cyber/Defense Tensions: Slovak prosecutors say suspects planned an arson attack on the Ukrainian drone maker Skyeton’s factory; authorities detained a Ukrainian and two Latvians, with Skyeton alleging Russian involvement. Energy & Industry: Prime Minister Fico marked the restart of Slovalco aluminium production, calling it strategic for Europe and tied to state-aid and long-term electricity supply changes. Aviation Connectivity: Wizz Air will add flights on the Sarajevo–Rome route, and the airline also plans winter services from Sarajevo to Berlin, Prague and Bratislava. Tech & Startups: TechBBQ 2026 in Copenhagen showcased investment and business prospects across AI, quantum, robotics and climate, with matchmaking drawing founders and investors worldwide. Geopolitics in the Region: Reports say Russia is intensifying “gray zone” operations across Europe, including sabotage and drone incidents, aimed at raising the cost of supporting Ukraine.

Slovak Defence Security: Police and ÚBOK foiled an arson plot targeting the Skyeton drone factory in eastern Slovakia, seizing an incendiary mix and detaining suspects; Slovak President Pellegrini urged tougher protection for defence firms. Industrial Output: Prime Minister Robert Fico marked the restart of Slovalco aluminium production in Žiar nad Hronom, saying full capacity would supply 17% of Europe’s primary aluminium and citing EU/state-aid and power-supply fixes. Digital Identity Law: Slovakia approved a bill to set age limits for large social platforms from age 16, requiring platforms to use privacy-preserving age checks rather than self-declaration. Biometrics & Finance: A wider market push for digital identity verification is accelerating fraud prevention and financial inclusion, with post-quantum security moving into identity infrastructure. EU Budget Diplomacy: EU Council President António Costa’s “Tour des Capitales” continues after Bratislava, with the next multiannual budget and support for Ukraine on the agenda. Energy & Water Stress: A data-centre boom is colliding with water scarcity, raising costs and investor scrutiny as drought hits river basins. Regional Geopolitics: Fico again argued Europe’s security can’t be achieved without Russia, warning against Russophobia. Global Risk: Western officials warn Russia is escalating “gray zone” attacks across Europe, including sabotage and cyber operations.

Water & Data Centres: OECD warns drought is worsening globally while a new wave of data centres strains water supplies, pushing investors to demand full facility water-use disclosure. Digital Identity & Biometrics: Digital ID is moving beyond onboarding as AI fraud and tighter rules drive deeper “continuous trust” across finance, social media and government; post-quantum protection is also spreading through identity infrastructure. Slovakia Defence Security: Slovak police and ÚBOK foiled an arson plot targeting the Skyeton drone plant near Prešov, detaining suspects in Slovakia and Germany; President Pellegrini urged stronger protection for defence firms. Local Tech Regulation: Slovakia approved a bill to restrict large social platforms for users 16+ with age checks that can’t rely on self-declaration, pointing toward privacy-preserving biometric or token-based approaches. Industry & Energy: Fico hailed the restart of production at Slovalco as “good news” for Slovakia and Europe, tied to state-aid reform and long-term electricity supply. EU Budget Politics: EU Council President António Costa’s “Tour des Capitales” continues after a first stop in Bratislava, with the next multiannual budget on the agenda. Climate Risk for Insurers: S&P flags that hotter European summers could raise insurance premiums as heat, wildfire and health claims climb.

Slovalco Restart: Prime Minister Robert Fico hailed the gradual restart of production at the Slovalco aluminium plant in Žiar nad Hronom, saying full capacity would make it responsible for 17% of Europe’s primary aluminium and calling it proof that Slovakia can fix mistakes in state aid and energy supply; owners plan €100m in investment. Defence Sabotage Foiled: Slovak police and ÚBOK stopped a planned arson attack on the Skyeton drone factory near Prešov, seizing an incendiary mix linked to napalm and detaining three foreign suspects (including a 26-year-old Latvian arrested in Germany), with President Pellegrini urging stronger protection for defence-industry firms. Social Media Age Checks: Slovakia approved a bill to restrict large social platforms to users 16+, requiring platforms to use privacy-preserving age-assessment measures (self-declaration won’t be enough), with biometric and token-based options debated. Digital Assets in Treasury: altFINS partnered with BitPath Holdings to launch a “Gen 2” digital asset treasury strategy using AI analytics and active portfolio management for corporate treasuries. Insurance Pressure From Heat: S&P warns Europe’s hotter summers could raise insurer costs and, over time, premiums as heat-related deaths, illness claims, wildfire and drought losses mount. EU Budget Tour: EU Council President António Costa’s “Tour des Capitales” continues after a week including Bratislava, with further stops across Europe focused on the next multiannual budget.

Slovakia’s Defence Security: Slovak police and ÚBOK have foiled a planned arson attack on the Skyeton drone factory in eastern Slovakia, seizing an incendiary mix described as “napalm” and charging three foreign suspects (two detained in Slovakia, one arrested in Germany). Presidential Push: President Peter Pellegrini urged the government to review risks and tighten protection for defence-industry firms after the foiled plot. Industrial Restart: Prime Minister Robert Fico hailed the restart of Slovalco’s aluminium production in Žiar nad Hronom, saying full capacity could supply 17% of Europe’s primary aluminium and pointing to state-aid and electricity-contract reforms plus €100m owner investment. Social Media Regulation: Slovakia approved a bill requiring platforms to set age limits for users 16+ using privacy-preserving age checks (self-declaration won’t be enough), aiming to curb addiction and extremist risks. EU Finance Boost: The EIB approved €9.2bn for EU competitiveness, with about €4.3bn earmarked for companies across Slovakia and other countries, including support for SMEs in security/defence, energy and agriculture. Digital Inclusion: New assessments highlight how digital identity systems are expanding financial access across Africa, with lessons relevant to broader inclusion efforts.