AGP Executive Report

EU Sanctions Gridlock: The EU is set to approve new Russia sanctions next week, but a Slovak veto is delaying wider measures tied to the Leipzig airport incidents and a fresh blacklist push. Education & Skills: Slovakia hosts the regional release of PISA 2025 results in Bratislava, as the OECD reports sharp declines across OECD reading and maths, while Kyrgyzstan ranks 80th out of 91. EU Budget Stakes: Cohesion policy and the CAP face uncertainty as 2028–2034 funding levels become a fight between capitals, risking delays and political bargaining. Pay Transparency Push: The EU’s Pay Transparency Directive is under-implemented, with Italy the standout on salary info in job ads—an issue tied to pay gaps. Auto Industry Reshuffle: Volkswagen is reviewing holdings and may sell Ducati as it restructures, while JLR plans 4,000 job cuts amid tariffs and EV pressure. Slovakia Emergency Care: Slovakia’s emergency medical services overhaul moves to a new 22-member commission, with the Health Ministry aiming for weekly consensus on system options. Energy Connectivity: The Vertical Corridor expands as North Macedonia and Serbia join the gas initiative, boosting cross-border supply routes.

Politics & Security: Slovak PM Robert Fico warned that Germany “does not make small mistakes” after AfD’s strong win in Saxony-Anhalt, fearing calls for a tougher line on Russia could be used to mask failures of traditional parties. Regional Economy & AI: V4 parliamentarians in Košice urged closer integration of industry, energy and AI, stressing safe and human-centred use while boosting skills and support for SMEs. Emergency Healthcare Reform: Health Minister Kamil Sasko said Slovakia’s emergency medical services will be handled by a new 22-member emergency healthcare commission, meeting Wednesday, with debate over whether financial groups could dominate. Energy Infrastructure: The Vertical Corridor gas initiative is expanding into the Western Balkans as North Macedonia and Serbia join, aiming to strengthen supply diversification and cross-border connectivity. Business & Jobs: Jaguar Land Rover plans to cut about 4,000 jobs over two years as it targets roughly £1.7bn savings amid tariffs, China competition and EV transition pressures. Education & Data: Bratislava will host the regional release of PISA 2025 results on Sept. 8, bringing together 31 countries. EV Market Confidence: AVILOO expanded its battery warranty to more European markets, including Slovakia, to improve used EV buyer confidence.

Auto Restructuring: Jaguar Land Rover plans to cut about 4,000 jobs in the UK over the next two years, aiming for £1.7bn in savings as it battles Chinese competition, US tariffs and the shift to electric vehicles. EU Pay Rules: The EU Pay Transparency Directive is exposing weak spots in multinational payroll systems, with many firms still struggling to prove compliance as national laws roll out unevenly. Hydrogen Project: The H2EU+Store consortium behind “green” hydrogen production in western Ukraine is targeting first major funding steps by 2028, with an initial hydrogen flow mixed into natural gas expected in 2029. Defense Industry: L3Harris has completed the first 35 F-16 Viper Shield electronic warfare systems for allied orders, with 233 units total now in the pipeline. Tourism Trade: CLIA will put its 2027 RiverView conference on sale Sept. 16, adding a Budapest–Vienna sailing with a Bratislava stop and a new shorter “Lite” registration option. Energy Security: EU gas storage is uneven ahead of winter, with Slovakia at about 50.75% full while Germany and the Netherlands sit far lower than several southern and eastern members.

Auto Industry Restructuring: Volkswagen’s supervisory board has unanimously approved its “Future Plan 2030,” clearing another 50,000 job cuts worldwide by decade-end and bringing total planned reductions to 100,000, while four German plants remain in limbo pending a production strategy due by June 2027. Corporate Workforce Shock: Jaguar Land Rover, a Tata Motors subsidiary, is reportedly preparing a UK layoff round targeting about 4,000 employees over the next two years as it pushes to cut operating costs and streamline management. Energy & Infrastructure: The Vertical Gas Corridor expands as North Macedonia’s NOMAGAS and Serbia’s Transportgas Serbia join the MoU, boosting cross-border gas capacity and bidirectional flow options with Slovakia’s Eustream among participants. Climate Tech Funding: Shine 2027 is offering up to €50,000 grants to early-stage climate ventures, including Bratislava-based applicants, with applications due Sept. 15. Education Pay Pressure: A new Eurydice report highlights a major teacher pay divide, with Luxembourg far ahead and Eastern/Central Europe lagging—fueling renewed debate on how to attract staff.

Teacher Pay Gap: A new Eurydice report puts Luxembourg at the top for teacher salaries, with big divides versus Eastern and Southern Europe. Gas Security: EU gas storage sits unevenly ahead of winter—Slovakia at about 50.75% while Germany and the Netherlands are far lower, keeping price pressure in focus. Auto Restructuring: Volkswagen’s board approved “Future Plan 2030,” adding 50,000 job cuts globally, while key German plants’ futures still hinge on a strategy due by June 2027. Energy Diplomacy: Slovakia and Bulgaria pushed closer cooperation on energy and defence, including plans for a joint nuclear-energy commission and talks with Westinghouse. Regional Gas Links: North Macedonia and Serbia joined the Vertical Gas Corridor, extending supply routes into the Western Balkans with more cross-border capacity. Climate Funding: Shine 2027 is offering up to €50,000 grants for early climate tech ventures, including Bratislava-based applicants. Tourism Rules: Thailand’s visa-free stay shrinks from Sept. 15, with nationalities moved into specific entry categories. Teacher Pay in Slovakia: Slovakia plans automatic pay rises for teachers as the school-year starts. Business & Compliance: A Chon Buri raid in Thailand targeted an unlicensed Argentinian steakhouse, arresting a Slovak manager and migrant workers over permit and licensing breaches.

Slovak Politics & Economy: Prime Minister Robert Fico said the West’s strategy to “bring Russia to its knees” has failed and warned of rising risks of global conflict, pointing to Bulgaria’s view that the Ukraine war has no military solution. Energy Security: Europe heads into autumn with uneven gas storage: EU reserves are 65.85% full, but Germany (53.67%) and the Netherlands (48.21%) lag, while Slovakia sits at 50.75%, keeping price pressure in focus. Gas Infrastructure: The Vertical Gas Corridor added North Macedonia’s NOMAGAS and Serbia’s Transportgas Serbia, extending the network into the Western Balkans and boosting bidirectional capacity and cross-border options. Nuclear & Industrial Cooperation: Bulgaria and Slovakia agreed to set up a joint nuclear commission to share expertise and coordinate with Westinghouse, with both leaders framing nuclear as key to climate neutrality and future industry growth. EU Budget Fight: Senior EU officials pushed for new “own resources” and taxes to fund the 2028–2034 budget, clashing with frugal states over size and financing. Slovakia Business & Climate Tech: Swiss Re Foundation’s Shine 2027 offers up to €50,000 grants for early climate ventures, including Bratislava-based applicants. Cyber & Security: A Slovakia-based ESET expert warned that digitalization makes European countries prime targets for cyberattacks, with France highlighted as especially exposed. Auto Sector: Volkswagen’s board approved its Future Plan 2030, adding 50,000 job cuts globally, while German plant futures remain undecided pending a strategy by June 2027.

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.