AGP Executive Report

Trade Links: Slovakia is seeking closer trade and investment ties with Thailand, presenting itself as a gateway to the EU market. Foreign Minister Juraj Blanár urged progress on an EU-Thailand trade deal and investment and tax agreements. Russia Ties: A Slovak-Russian economic cooperation commission is due to meet in Moscow on October 26 for the first time since its work was suspended in 2022, reopening dialogue on practical cooperation. Grain Logistics: Ukraine is negotiating with Slovakia and Poland to move grain-truck customs checks away from vulnerable border crossings, as Russian attacks and long queues disrupt exports. Automotive: Volkswagen plans a $4 billion Audi SUV factory in Georgia, with some production currently in Bratislava expected to shift to the US. The plant is designed to make 200,000 vehicles a year, even as Volkswagen restructures.

Customs Probe: EU prosecutors are investigating a major customs fraud case in Slovakia, raising fresh questions about oversight of cross-border trade. Energy Supply: Mochovce’s fourth nuclear unit is now supplying electricity to the grid, strengthening domestic power capacity as Slovakia resumes talks on energy supplies from Russia. Business and Finance: Slovakia raised more than €500 million through bond sales; its 2025 growth estimate was revised up to 0.9%, and unemployment fell in September. Industry Investment: Chinese companies’ European manufacturing and logistics expansion is bringing investment activity to Slovakia, particularly in battery and clean-technology supply chains. Energy Costs: Slovakia and its Visegrad partners are pressing the EU for more flexible funding to help industry cope with high energy prices.

Local Elections: Slovaks voted in municipal and regional races, a test of support for Robert Fico’s government amid concerns over economic policy and coalition stability. Business Climate: Slovakia recorded the EU’s lowest income inequality in 2025, while unemployment fell in September. Customs Probe: EU prosecutors are investigating a major customs fraud case in Slovakia. Public Finances: The country raised more than €500 million through bond sales, and its 2025 GDP growth estimate was revised up to 0.9%. Energy: Mochovce’s fourth unit began supplying electricity to the grid as the government prepares to resume talks with Russia on energy supplies.

Customs Probe: EU prosecutors searched Slovakia over suspected fraud involving Chinese textile and footwear imports. At least 50 people are suspects, and estimated unpaid VAT and customs duties exceed €234 million. Trade Links: Ukraine is discussing moving grain-truck customs checks inside Slovakia and Poland to protect export routes from Russian drone attacks. Investment: Chinese manufacturers and logistics firms have committed to more than 2.5 million square metres of European industrial and logistics space since 2024, with investment also supporting activity in Slovakia. Energy: Slovakia plans to resume talks with Russia on energy supplies as the Visegrad countries seek EU help with high industrial power costs. Mochovce’s fourth reactor has begun supplying electricity to the grid. Economy: September unemployment fell, 2025 GDP growth was revised up to 0.9%, and Slovakia recorded the EU’s lowest income inequality. The country also raised more than €500 million through bond sales.

Customs Fraud: EU prosecutors searched sites in Slovakia over suspected large-scale fraud involving Chinese textiles and footwear. The probe names at least 50 suspects and estimates losses of more than €234 million in unpaid VAT and customs duties. Income Distribution: Slovakia had the EU’s lowest income inequality in 2025, with a Gini score of 23.0, against the bloc’s 29.2 average. Trade Logistics: Ukraine is discussing moving grain-truck customs checks inside Slovakia and Poland to protect cargo from Russian drone attacks. Business Rules: Slovakia was one of four EU countries that did not back a common negotiating position on EU Inc, a plan to make it easier to set up companies across the bloc. Energy: Mochovce’s fourth unit has begun supplying electricity to the grid, while Slovakia prepares to resume talks on energy supplies from Russia. Growth and Funding: Slovakia’s 2025 GDP growth was revised to 0.9%; the country also raised more than €500 million through bond sales.

Customs Fraud: EU prosecutors are investigating suspected Chinese textile and footwear imports involving at least 50 people, including officials. The alleged scheme cost Slovakia more than €190 million in unpaid VAT and €44 million in customs duties. Trade Links: Ukraine is discussing moving grain-truck customs checks inside Slovakia and Poland to protect shipments from Russian drone attacks, while maintaining transit routes through the region. Research and Industry: Slovak officials want to deepen cooperation with CERN and turn research into practical gains for local businesses; Slovakia also backed the proposed Future Circular Collider. Company Rules: Slovakia was one of four EU countries that did not support a common negotiating position on EU Inc, a plan to make it easier to start and grow companies across the bloc. Energy and Growth: Mochovce’s fourth unit is supplying electricity to the grid, while Slovakia plans to resume talks with Russia on energy supplies. The country’s 2025 GDP growth was revised up to 0.9%, and unemployment fell in September.

Business Risks: More than half of surveyed Central and Eastern European companies reported a significant water-related impact in the past five years, but only 23% had assessed risks across their supply chains. Energy: Slovakia is reopening talks with Russia on energy supplies, while Mochovce’s fourth nuclear unit has started supplying the grid. Visegrad countries are also pressing the EU for funds to help industry manage high energy costs. Investment: Chinese battery maker Gotion plans to invest more than €1 billion in production across Spain, Slovakia and Morocco as manufacturers expand beyond China. Economy: Slovakia’s 2025 GDP growth was revised up to 0.9%. September unemployment edged down to 4.02%, with nearly 138,000 vacancies reported. Finance: Slovakia raised more than €500 million through bond sales.

Energy Policy: Slovakia plans to resume talks with Russia in Moscow on Oct. 26 on energy supplies, including gas, oil and nuclear power, challenging the EU’s push to phase out Russian imports. Labour Market: September unemployment edged down to 4.02%, while employers reported nearly 138,000 vacancies—more than 20,000 above a year earlier. Business Risks: A survey of companies across Central and Eastern Europe, including Slovakia, found more than half had faced significant water-related disruptions or costs; only 7% felt very well prepared. Power Supply: Mochovce’s fourth reactor has begun supplying electricity to the grid, boosting domestic generation. Economic Outlook: Slovakia’s 2025 growth estimate was revised up to 0.9%, and the government raised more than €500 million through bond sales. Legal Reform: The president signed a new Civil Code, replacing the 1964 law and updating rules governing private relationships.

Energy and Russia: Slovakia will resume talks with Moscow on oil, gas and nuclear cooperation on October 26, the first such commission meeting since Russia’s 2022 invasion of Ukraine. The move puts Bratislava at odds with the EU’s effort to phase out Russian energy. Investment: Volvo’s new plant near Košice is expected to create thousands of jobs and produce up to 250,000 cars a year, adding a major electric-vehicle hub to eastern Slovakia. Public finances: Slovakia raised more than €500 million through bond sales, while revised figures put 2025 GDP growth at 0.9%. Power supply: Mochovce’s fourth unit has started supplying electricity to the grid, strengthening domestic energy capacity. Industry and AI: Visegrad countries are urging the EU to make funds more flexible to help industry cope with high energy costs; Slovakia is also among nine Central and Eastern European countries included in a Czech-led bid to develop an AI gigafactory.

Automotive Investment: Volvo’s new factory near Košice is set to create thousands of jobs and produce up to 250,000 vehicles a year, strengthening eastern Slovakia’s role in the electric-car supply chain. Energy: Mochovce’s fourth unit has begun supplying the grid. At full capacity, it is expected to cover about 13% of Slovakia’s electricity use, though analysts say it may not directly lower prices. Public Finance: Slovakia raised €530 million in bond sales, with investor demand topping €1.2 billion; yields ranged from 3.62% to 4.69%. Growth: Revised figures put 2025 GDP growth at 0.9%, up from an earlier estimate of 0.8%; growth for 2024 was also revised higher, to 2.6%. Industry Costs: Visegrad countries want more flexible EU funds to help firms manage high energy prices, including support for operating costs and equal treatment of nuclear power.

Government Borrowing: Slovakia raised €530 million through bond sales, with investor demand topping €1.2 billion. Yields ranged from 3.62% to 4.69%. Energy Supply: Mochovce’s fourth nuclear unit has begun feeding electricity to the grid. At full capacity, it could cover about 13% of national consumption, though analysts say it is unlikely to directly lower consumer prices. Industrial Competitiveness: Slovakia and its Visegrad partners are urging the EU to let them use cohesion and modernisation funds to help firms cope with high energy costs, including support for operating expenses and equal treatment of nuclear power. Economic Growth: Slovakia’s 2025 GDP growth was revised up to 0.9% from 0.8%; figures for 2023 and 2024 were also raised.

Oil Supply Risk: A fire broke out at a key Druzhba pipeline station in Russia’s Tambov region. Ukrainian monitoring channels and independent Russian outlet Astra reported a drone strike; the facility handles oil bound for Hungary and Slovakia. No supply disruption was confirmed. Energy Costs: Visegrad energy ministers urged the EU to provide relief for industry, allow more flexible use of EU funds and recognize nuclear power as clean energy. They warn high costs are undermining competitiveness as Russian energy imports are phased out by 2027. Power Generation: Mochovce’s fourth unit has begun supplying electricity after connecting to the grid on October 15, making Slovakia self-sufficient in power generation, according to the utility. Prime Minister Robert Fico said the country could export 400–500 megawatts from 2027. Central Banking: Slovakia’s central bank signed a cooperation agreement with Azerbaijan’s central bank covering monetary policy, payment systems, fintech and financial supervision.

Power Supply: Mochovce’s fourth unit has begun sending electricity to the grid during staged commissioning. Slovak officials say it will make the country self-sufficient in electricity and could enable large exports from 2027. Industry and Energy Costs: Slovakia and its Visegrad partners want more flexibility to use EU funds to help businesses cope with high energy bills, including support for operating costs. They also seek leeway on the Russian gas phase-out and funding for regional infrastructure; the EU says it is working to secure alternative supplies without pushing up prices. Public Finances: Parliament has passed the 2027 state budget, with a deficit forecast at 4.94% of GDP. Central Banking: The National Bank of Slovakia and Azerbaijan’s central bank signed an agreement to cooperate on monetary policy, payments, financial technology and supervision.

Energy Security: The European Commission says Slovakia can replace Russian gas without driving up prices, citing improved Polish-Slovak connections and upgraded LNG access through Croatia. The EU aims to phase out Russian gas by the end of 2027, despite Prime Minister Robert Fico’s opposition. Industry Support: Economy Minister Denisa Sakova says V4 countries want EU funds to help cover industrial operating costs amid high energy prices, and want nuclear power treated equally with renewables. Power Supply: Mochovce nuclear plant’s fourth unit has been connected to the grid, adding a new domestic electricity source. Public Finances: Parliament approved Slovakia’s 2027 budget with a planned deficit of 4.94% of GDP.

Ukraine Financing: Slovakia will not join the proposed €70 billion EU loan for Ukraine in 2027, Robert Fico said, though Bratislava will not block other countries from contributing. Energy Costs: Slovakia joined calls to ease EU carbon-pricing rules as leaders debated energy bills and industrial competitiveness, but secured no further delay to the new emissions market. Public Finances: Parliament approved the 2027 budget, which sets the deficit at 4.94% of GDP. Nuclear Power: Mochovce’s fourth unit has been connected to the grid, adding new domestic generating capacity. Inflation: Slovakia’s inflation rate remained steady at 3.1%.

Energy Costs: Slovakia joined Italy, Poland, Hungary and the Czech Republic in pressing the EU to ease carbon-pricing rules as leaders grapple with high power costs; the summit ended without a decision to delay ETS2. Power Supply: Slovenské Elektrárne connected Mochovce’s fourth reactor to the grid for the first time. Its 471-megawatt capacity could eventually provide about 13% of Slovakia’s electricity. Investment: A Chinese industrial group has moved a planned $117 million project from Slovakia to Morocco, while Košice tech firm MATSUKO won a major EU award for its hologram technology. Public Finances: Parliament approved the 2027 budget with a deficit of 4.94% of GDP; inflation remained at 3.1%. Trade Links: Slovakia plans to revive its economic commission with Russia, while an Australian business delegation is expected to visit Slovakia to explore trade and industrial cooperation.