Economic Sustainability
#11Key Findings
Slovenia falls into the upper-middle ranks internationally (rank 11) in the category of economic sustainability.
A national circular economy policy was passed in 2018. The country has performed well compared to other EU countries. Critical infrastructure monitoring was improved with a 2017 law, though utilities and other entities continue to be subject to cyberattacks. Energy transition and climate policy measures are comprehensive, but additional action is needed to reach targets.
Active employment policy measures are specifically targeted toward youth. Income taxes are progressive, but relatively high. The corporate tax rate is among the OECD’s lowest. Environmental taxes have declined as a share of total tax revenue since 2010.
The constitution includes a fiscal rule requiring that the budget be balanced in the medium term without borrowing. Exceptions are allowed in extraordinary circumstances, which have come frequently in recent years. Public debt is moderate by EU standards. Deficits, while declining, remain relatively substantial.
A national circular economy policy was passed in 2018. The country has performed well compared to other EU countries. Critical infrastructure monitoring was improved with a 2017 law, though utilities and other entities continue to be subject to cyberattacks. Energy transition and climate policy measures are comprehensive, but additional action is needed to reach targets.
Active employment policy measures are specifically targeted toward youth. Income taxes are progressive, but relatively high. The corporate tax rate is among the OECD’s lowest. Environmental taxes have declined as a share of total tax revenue since 2010.
The constitution includes a fiscal rule requiring that the budget be balanced in the medium term without borrowing. Exceptions are allowed in extraordinary circumstances, which have come frequently in recent years. Public debt is moderate by EU standards. Deficits, while declining, remain relatively substantial.
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How committed is the government to driving the transition toward a circular economy?
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The government is clearly committed to transitioning to a circular economy.
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The government is largely committed to transitioning to a circular economy.
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The government is somewhat committed to transitioning to a circular economy.
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The government is not at all committed to transitioning to a circular economy.
In 2018, various stakeholders thoroughly examined the roadmap toward a circular economy in Slovenia before its adoption. Like other nations such as Denmark and Luxembourg, Slovenia introduced a national circular economy policy in 2018, identifying the food system, forest-based value chains, manufacturing, and mobility as key sectors and priority policy areas. In recent years, Slovenian governments have collaborated with EIT Climate-KIC on Deep Demonstrations, a model designed to facilitate a systemic transition to a circular economy. According to the Deep Demonstrations methodology, the first two phases of this transition were completed after 2018.
Further phases of the Deep Action Plan Demonstration are scheduled for implementation up to 2025, involving active participation from various stakeholders, including local communities, businesses, and policymakers. At the end of 2021, the Slovenian government adopted an implementation plan for a comprehensive strategic project aimed at decarbonizing Slovenia through the transition to a circular economy, encompassing the activities of 14 distinct programs. Different ministries oversee the implementation activities corresponding to their respective programs. Additionally, a single ministry or government agency has been designated as the coordinator to ensure the comprehensive and coordinated execution of the plan. By the end of 2022, the government had completed the Comprehensive Strategic Project’s first phase and commenced the action plan’s second phase.
The initiation of the second phase of the action plan coincides with Slovenia being selected to host the Circular Economy Hotspot 2025. This selection underscores the country’s dedication to the principles of a circular economy and its commitment to sustainable development. Furthermore, the activities of the Strategic Research and Innovation Partnership – Networks for the Transition to a Circular Economy (SRIP – Circular Economy), which unites Slovenian economic entities, educational and research institutions, non-governmental organizations, and other interested parties, highlight the significance of the circular economy for both the state and society.
Nevertheless, a 2023 report by the European Court of Auditors presents a critical assessment of the sector, indicating that the transition within EU member states remains sluggish despite EU measures. These findings suggest that Slovenia made notable progress between 2015 and 2021, as reflected by its circular economy rates relative to other EU member states. Like many EU member states, Slovenia also acknowledged that it would develop a national strategic document on the circular economy by 2022.
Citations:
EIT Climate-Kic Deep Demonstrations. Decarbonising Slovenia. https://www.climate-kic.org/wp-content/uploads/2023/09/ClimateKIC_brochure_Decarbonising-Slovenia_FINAL-1.pdf
EIT Climate-Kic Deep Demonstrations. “Krožno, regenerativno gospodarstvo.” https://www.gov.si/assets/ministrstva/MOP/Sporocilo-za-javnost/2022/01_Januar_2022/06_KIC/22_01_06_SJ_Krozno_brezogljicno_KIC_Deep-Demonstration-Slovenija-brosura.pdf
Evropsko računsko sodišče. 2023. “Posebno poročilo. Krožno gospodarstvo: Počasen prehod držav članic kljub ukrepom EU.” https://www.eca.europa.eu/sl/publications?ref=SR-2023-17
European Environment Agency. 2022. “Circular Economy Policy Innovation and Good Practice in Member States.” https://www.eionet.europa.eu/etcs/etc-ce/products/draft-report-for-dg-env_final.pdf
SRIP – Krožno gospodarstvo. 2024. “The European Circular Economy Hotspot 2025 Bo v Sloveniji.” https://srip-krozno-gospodarstvo.si/the-european-circular-economy-hotspot-2025-bo-v-sloveniji
Further phases of the Deep Action Plan Demonstration are scheduled for implementation up to 2025, involving active participation from various stakeholders, including local communities, businesses, and policymakers. At the end of 2021, the Slovenian government adopted an implementation plan for a comprehensive strategic project aimed at decarbonizing Slovenia through the transition to a circular economy, encompassing the activities of 14 distinct programs. Different ministries oversee the implementation activities corresponding to their respective programs. Additionally, a single ministry or government agency has been designated as the coordinator to ensure the comprehensive and coordinated execution of the plan. By the end of 2022, the government had completed the Comprehensive Strategic Project’s first phase and commenced the action plan’s second phase.
The initiation of the second phase of the action plan coincides with Slovenia being selected to host the Circular Economy Hotspot 2025. This selection underscores the country’s dedication to the principles of a circular economy and its commitment to sustainable development. Furthermore, the activities of the Strategic Research and Innovation Partnership – Networks for the Transition to a Circular Economy (SRIP – Circular Economy), which unites Slovenian economic entities, educational and research institutions, non-governmental organizations, and other interested parties, highlight the significance of the circular economy for both the state and society.
Nevertheless, a 2023 report by the European Court of Auditors presents a critical assessment of the sector, indicating that the transition within EU member states remains sluggish despite EU measures. These findings suggest that Slovenia made notable progress between 2015 and 2021, as reflected by its circular economy rates relative to other EU member states. Like many EU member states, Slovenia also acknowledged that it would develop a national strategic document on the circular economy by 2022.
Citations:
EIT Climate-Kic Deep Demonstrations. Decarbonising Slovenia. https://www.climate-kic.org/wp-content/uploads/2023/09/ClimateKIC_brochure_Decarbonising-Slovenia_FINAL-1.pdf
EIT Climate-Kic Deep Demonstrations. “Krožno, regenerativno gospodarstvo.” https://www.gov.si/assets/ministrstva/MOP/Sporocilo-za-javnost/2022/01_Januar_2022/06_KIC/22_01_06_SJ_Krozno_brezogljicno_KIC_Deep-Demonstration-Slovenija-brosura.pdf
Evropsko računsko sodišče. 2023. “Posebno poročilo. Krožno gospodarstvo: Počasen prehod držav članic kljub ukrepom EU.” https://www.eca.europa.eu/sl/publications?ref=SR-2023-17
European Environment Agency. 2022. “Circular Economy Policy Innovation and Good Practice in Member States.” https://www.eionet.europa.eu/etcs/etc-ce/products/draft-report-for-dg-env_final.pdf
SRIP – Krožno gospodarstvo. 2024. “The European Circular Economy Hotspot 2025 Bo v Sloveniji.” https://srip-krozno-gospodarstvo.si/the-european-circular-economy-hotspot-2025-bo-v-sloveniji
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How committed is the government to updating and protecting critical infrastructure?
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The government is clearly committed to updating basic technical infrastructure.
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The government is largely committed to updating basic technical infrastructure.
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The government is somewhat committed to updating basic technical infrastructure.
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The government is not at all committed to updating basic technical infrastructure.
Although Slovenia began addressing critical infrastructure protection as early as 2006, comprehensive and systematic regulation was not established until 2017 with the adoption of the Law on Critical Infrastructure. Prior to this, issues related to critical infrastructure were managed through government decisions. The law defines the following sectors as critical infrastructure: energy, transport, food, drinking water supply, health, finance, environmental protection, and information and communication networks and systems. Responsibility for these critical infrastructure sectors falls to specific ministries related to each sector and the Bank of Slovenia, while management of these infrastructures is more varied. Each sector has a designated contact person, and the Ministry of Defence oversees coordination and provides expert guidance in critical infrastructure.
The National Centre for Crisis Management has been established as an internal unit within the Ministry of Defence. Besides the Law on Critical Infrastructure, other relevant documents include the Resolution on National Security and the Slovenian Defence Strategy. Critical infrastructure protection measures are categorized as ongoing activities; additional activities planned and executed by infrastructure operators or owners; and, if necessary, actions taken by the government to ensure security. According to the risk assessment guidelines 2017 – updated in 2019 – critical infrastructure operators must update their risk assessments if new circumstances arise that could significantly impact infrastructure operations, but at least once annually.
As of 2020, Slovenia ranks 67th globally in the Global Cybersecurity Index. While it has demonstrated strengths in legislative measures, it is comparatively weak in technical measures. The Cybersecurity Strategy was adopted in 2016, and in 2021, the Government Office for Information Security was established as the national authority responsible for information security. Its main task is to enhance resilience against cyber threats that could jeopardize individuals, businesses, the government, and society.
Practice has shown that various state actors and critical infrastructure entities, such as electricity utilities and distribution companies, have been successfully hacked and compromised. These attacks have resulted in the paralysis of government services, theft of personal data, and temporary loss of control over various systems.
Citations:
International Telecommunication Union. 2021. “Global Cybersecurity Index 2020.” https://www.itu.int/dms_pub/itu-d/opb/str/D-STR-GCI.01-2021-PDF-E.pdf
Dnevnik. 2021. “Hekerji onemogočili portal z zakoni.” Available at https://www.dnevnik.si/1042956169
Monitor. 2023. “Hekerji napadli Holding slovenske elektrarne.” Available at https://www.monitor.si/novica/hekerji-napadli-holding-slovenske-elektrarne/228948/
Ministrstvo za obrambo. 2018. “Predlog programa usposabljanja upravljavcev kritične infrastrukture.” https://dk.mors.si/Dokument.php?id=1307
The National Centre for Crisis Management has been established as an internal unit within the Ministry of Defence. Besides the Law on Critical Infrastructure, other relevant documents include the Resolution on National Security and the Slovenian Defence Strategy. Critical infrastructure protection measures are categorized as ongoing activities; additional activities planned and executed by infrastructure operators or owners; and, if necessary, actions taken by the government to ensure security. According to the risk assessment guidelines 2017 – updated in 2019 – critical infrastructure operators must update their risk assessments if new circumstances arise that could significantly impact infrastructure operations, but at least once annually.
As of 2020, Slovenia ranks 67th globally in the Global Cybersecurity Index. While it has demonstrated strengths in legislative measures, it is comparatively weak in technical measures. The Cybersecurity Strategy was adopted in 2016, and in 2021, the Government Office for Information Security was established as the national authority responsible for information security. Its main task is to enhance resilience against cyber threats that could jeopardize individuals, businesses, the government, and society.
Practice has shown that various state actors and critical infrastructure entities, such as electricity utilities and distribution companies, have been successfully hacked and compromised. These attacks have resulted in the paralysis of government services, theft of personal data, and temporary loss of control over various systems.
Citations:
International Telecommunication Union. 2021. “Global Cybersecurity Index 2020.” https://www.itu.int/dms_pub/itu-d/opb/str/D-STR-GCI.01-2021-PDF-E.pdf
Dnevnik. 2021. “Hekerji onemogočili portal z zakoni.” Available at https://www.dnevnik.si/1042956169
Monitor. 2023. “Hekerji napadli Holding slovenske elektrarne.” Available at https://www.monitor.si/novica/hekerji-napadli-holding-slovenske-elektrarne/228948/
Ministrstvo za obrambo. 2018. “Predlog programa usposabljanja upravljavcev kritične infrastrukture.” https://dk.mors.si/Dokument.php?id=1307
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How committed is the government to fully decarbonizing the energy system by 2050?
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The government is clearly committed to transitioning to a decarbonized energy system.
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The government is largely committed to transitioning to a decarbonized energy system.
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The government is somewhat committed to transitioning to a decarbonized energy system.
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The government is not at all committed to transitioning to a decarbonized energy system.
The Slovenian government has adopted several documents addressing energy from renewable sources. The National Action Plan for Renewable Energy initially aimed for renewable sources to constitute at least 25% of total energy consumption by 2020. This target was later increased to 27% by 2030 under a new document adopted by a subsequent government.
In 2023, Slovenia submitted its strategic draft of the Integrated National Energy and Climate Plan to the EU, making it one of six countries to submit on time. This plan outlines targets, strategies, and measures for the five dimensions of the Energy Union up to 2030, with a perspective extending to 2040. These dimensions are: 1. Decarbonization, 2. Energy efficiency, 3. Energy security, 4. The internal energy market, and 5. Research, innovation, and competitiveness.
Created in collaboration with various stakeholders, the document includes sectoral target shares of total energy consumption: 41.4% for heating and cooling, 43.3% for electricity, and 20.8% for transport. Additional targets were set for other sectors as well.
Despite Slovenia’s comprehensive energy and climate policy measures, policymakers acknowledge the need for improvements and additional actions to achieve the established targets. To address these issues, the Law on the Promotion of the Use of Renewable Energy Sources was adopted in 2021, followed by the Law on the Siting of Plants for the Production of Electricity from Renewable Energy Sources in 2023. According to the International Energy Agency, the carbon intensity of industrial energy consumption in Slovenia decreased from 40.9 to 33.8 gCO2 per MJ between 1990 and 2020. For instance, final coal consumption for households dropped from 6,022 TJ in 1991 to 1 TJ in 2021, and industry consumption decreased from 5,183 TJ in 1990 to 881 TJ in 2021.
Regarding low-carbon electricity generation, nuclear energy accounts for the largest share, followed by hydropower, with biofuels, solar energy, and wind energy comprising smaller shares. Notably, solar energy surpassed biofuels in 2019 and generated 645 GWh in 2022. Total CO2 emissions decreased by almost 10% between 1990 and 2021, despite significant increases from 1995 to 2013.
Slovenian policymakers, like those in some other European countries, believe nuclear energy can play a crucial role in achieving decarbonization targets. There have been numerous debates about constructing a second unit at the Krško nuclear power plant, with calls for a referendum on the issue. At the beginning of 2024, all parliamentary parties advocated for a referendum on this matter.
Citations:
European Commission. 2024. “Slovenia – Draft Updated NECP 2021 – 2030.” https://commission.europa.eu/publications/slovenia-draft-updated-necp-2021-2030_en
International Energy Agency. 2024. “Energy System of Slovenia.” https://www.iea.org/countries/slovenia
Ministrstvo za okolje, podnebje in energijo. 2024. “Nacionalni energetski in podnebni načrt 2024.” https://www.energetika-portal.si/dokumenti/strateski-razvojni-dokumenti/nacionalni-energetski-in-podnebni-nacrt-2024/
Partnerstvo za trajno gospodarstvo. 2024. “https://cer-slo.si/6-drzav-je-pravocasno-oddalo-osnutke-nacionalnih-energetsko-podnebnih-nacrtov-03-07-2023.html”
In 2023, Slovenia submitted its strategic draft of the Integrated National Energy and Climate Plan to the EU, making it one of six countries to submit on time. This plan outlines targets, strategies, and measures for the five dimensions of the Energy Union up to 2030, with a perspective extending to 2040. These dimensions are: 1. Decarbonization, 2. Energy efficiency, 3. Energy security, 4. The internal energy market, and 5. Research, innovation, and competitiveness.
Created in collaboration with various stakeholders, the document includes sectoral target shares of total energy consumption: 41.4% for heating and cooling, 43.3% for electricity, and 20.8% for transport. Additional targets were set for other sectors as well.
Despite Slovenia’s comprehensive energy and climate policy measures, policymakers acknowledge the need for improvements and additional actions to achieve the established targets. To address these issues, the Law on the Promotion of the Use of Renewable Energy Sources was adopted in 2021, followed by the Law on the Siting of Plants for the Production of Electricity from Renewable Energy Sources in 2023. According to the International Energy Agency, the carbon intensity of industrial energy consumption in Slovenia decreased from 40.9 to 33.8 gCO2 per MJ between 1990 and 2020. For instance, final coal consumption for households dropped from 6,022 TJ in 1991 to 1 TJ in 2021, and industry consumption decreased from 5,183 TJ in 1990 to 881 TJ in 2021.
Regarding low-carbon electricity generation, nuclear energy accounts for the largest share, followed by hydropower, with biofuels, solar energy, and wind energy comprising smaller shares. Notably, solar energy surpassed biofuels in 2019 and generated 645 GWh in 2022. Total CO2 emissions decreased by almost 10% between 1990 and 2021, despite significant increases from 1995 to 2013.
Slovenian policymakers, like those in some other European countries, believe nuclear energy can play a crucial role in achieving decarbonization targets. There have been numerous debates about constructing a second unit at the Krško nuclear power plant, with calls for a referendum on the issue. At the beginning of 2024, all parliamentary parties advocated for a referendum on this matter.
Citations:
European Commission. 2024. “Slovenia – Draft Updated NECP 2021 – 2030.” https://commission.europa.eu/publications/slovenia-draft-updated-necp-2021-2030_en
International Energy Agency. 2024. “Energy System of Slovenia.” https://www.iea.org/countries/slovenia
Ministrstvo za okolje, podnebje in energijo. 2024. “Nacionalni energetski in podnebni načrt 2024.” https://www.energetika-portal.si/dokumenti/strateski-razvojni-dokumenti/nacionalni-energetski-in-podnebni-nacrt-2024/
Partnerstvo za trajno gospodarstvo. 2024. “https://cer-slo.si/6-drzav-je-pravocasno-oddalo-osnutke-nacionalnih-energetsko-podnebnih-nacrtov-03-07-2023.html”
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To what extent do existing labor market institutions support or hinder the transition to an adaptive labor market?
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Labor market institutions are fully aligned with the goal of an adaptable labor market.
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Labor market institutions are largely aligned with the goal of an adaptable labor market.
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Labor market institutions are only somewhat aligned with the goal of an adaptable labor market.
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Labor market institutions are not at all aligned with the goal of an adaptable labor market.
The unemployment rate remained low in 2022 and 2023. Data from the Slovenian Statistical Office for the third quarter of 2023 show the rate was 3.9% and is expected to remain at this level or even lower in 2024 and 2025. Among young people, it was 8.4%. Among those aged 50 – 64 years, 2.9% were unemployed. By gender, slightly more women than men were unemployed, at 4.0% and 3.7%, respectively.
The Employment Service of Slovenia reported on registered unemployment in December 2023: 20% of all registered unemployed were young people, 37.5% were over 50, 43% were long-term unemployed, and 48.6% were women.
Active employment policy in Slovenia is diverse. This policy includes a range of measures in the labor market aimed at increasing employment, reducing unemployment, improving the employability of individuals in the labor market, and enhancing the competitiveness and flexibility of employers. Measures under this policy encompass education and training programs.
Under the Labour Market Regulation Act, the ministry can implement additional measures for unemployment benefits in response to significant labor market discrepancies or during times of crisis. These measures aim to maintain a higher number of jobs and prevent transitions to open unemployment, or to facilitate education and training for employment with a new employer.
During the COVID-19 pandemic, the government under Prime Minister Janša supported the labor market and various economic sectors. Similarly, the government under Prime Minister Golob introduced measures in early 2023 to address the energy crisis, such as short-time work, which helped employers manage the crisis and retain employees. Full-time employees worked 5 – 20 hours less per week under this measure and were considered to be temporarily waiting for work. Compensation for the reduced working hours was set at 80% of the base salary.
The legislation defines various forms of work adapted to actual life circumstances, such as part-time work and remote work, though full-time positions still prevail. Despite underdeveloped regulations and experience, remote work has become widespread in the post-pandemic period, particularly in government administration, public service, and public organizations.
Citations:
Statistični urad Republike Slovenije. 2024. https://pxweb.stat.si/SiStatData/pxweb/sl/Data/-/0762003S.px
Statistični urad Republike Slovenije. 2024. https://www.stat.si/StatWeb/News/Index/10717
Zavod Republike Slovenije za zaposlovanje. 2024. “Trg dela v številkah.” https://www.ess.gov.si/partnerji/trg-dela/trg-dela-v-stevilkah/
The Employment Service of Slovenia reported on registered unemployment in December 2023: 20% of all registered unemployed were young people, 37.5% were over 50, 43% were long-term unemployed, and 48.6% were women.
Active employment policy in Slovenia is diverse. This policy includes a range of measures in the labor market aimed at increasing employment, reducing unemployment, improving the employability of individuals in the labor market, and enhancing the competitiveness and flexibility of employers. Measures under this policy encompass education and training programs.
Under the Labour Market Regulation Act, the ministry can implement additional measures for unemployment benefits in response to significant labor market discrepancies or during times of crisis. These measures aim to maintain a higher number of jobs and prevent transitions to open unemployment, or to facilitate education and training for employment with a new employer.
During the COVID-19 pandemic, the government under Prime Minister Janša supported the labor market and various economic sectors. Similarly, the government under Prime Minister Golob introduced measures in early 2023 to address the energy crisis, such as short-time work, which helped employers manage the crisis and retain employees. Full-time employees worked 5 – 20 hours less per week under this measure and were considered to be temporarily waiting for work. Compensation for the reduced working hours was set at 80% of the base salary.
The legislation defines various forms of work adapted to actual life circumstances, such as part-time work and remote work, though full-time positions still prevail. Despite underdeveloped regulations and experience, remote work has become widespread in the post-pandemic period, particularly in government administration, public service, and public organizations.
Citations:
Statistični urad Republike Slovenije. 2024. https://pxweb.stat.si/SiStatData/pxweb/sl/Data/-/0762003S.px
Statistični urad Republike Slovenije. 2024. https://www.stat.si/StatWeb/News/Index/10717
Zavod Republike Slovenije za zaposlovanje. 2024. “Trg dela v številkah.” https://www.ess.gov.si/partnerji/trg-dela/trg-dela-v-stevilkah/
To what extent do existing labor market institutions support or hinder the transition to an inclusive labor market?
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Labor market institutions are fully aligned with the goal of an inclusive labor market.
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Labor market institutions are largely aligned with the goal of an inclusive labor market.
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Labor market institutions are only somewhat aligned with the goal of an inclusive labor market.
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Labor market institutions are not at all aligned with the goal of an inclusive labor market.
In addition to active employment policy measures available to young people, several specific measures target unemployed youth. These measures range from the EU Youth Guarantee to various subsidies for employers who hire young or first-time jobseekers. Examples include employment subsidies, tax relief for employing these individuals, reimbursement of contributions for the first job (including for mothers with a child up to 3 years old), and subsidies for “green jobs” (this measure should be broader, as it is aimed at all people and not a single segment of the population).
Young people can also demonstrate their informally acquired knowledge, experience, or competences through formal assessment procedures to validate their qualifications for specific occupations. Upon completing the assessment, they receive a publicly valid certificate (National Vocational Qualification) or a certificate (Basic Qualification). The Employment Service offers to cover the assessment and certification costs as part of obtaining the National Vocational Qualification.
Citations:
Mlad.si. 2023. “Intervju z Blanko Rihter o zaposlovanju mladih.” https://www.mlad.si/intervju-z-blanko-rihter-o-zaposlovanju-mladih/
Statistični urad Republike Slovenije. 2024. https://www.stat.si/StatWeb/News/Index/10717
Young people can also demonstrate their informally acquired knowledge, experience, or competences through formal assessment procedures to validate their qualifications for specific occupations. Upon completing the assessment, they receive a publicly valid certificate (National Vocational Qualification) or a certificate (Basic Qualification). The Employment Service offers to cover the assessment and certification costs as part of obtaining the National Vocational Qualification.
Citations:
Mlad.si. 2023. “Intervju z Blanko Rihter o zaposlovanju mladih.” https://www.mlad.si/intervju-z-blanko-rihter-o-zaposlovanju-mladih/
Statistični urad Republike Slovenije. 2024. https://www.stat.si/StatWeb/News/Index/10717
To what extent do existing labor market institutions support or hinder the mitigation of labor market risks?
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Labor market institutions are fully aligned with the goal of protecting individuals against labor market risks.
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Labor market institutions are largely aligned with the goal of protecting individuals against labor market risks.
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3
Labor market institutions are only somewhat aligned with the goal of protecting individuals against labor market risks.
2
1
1
Labor market institutions are not at all aligned with the goal of protecting individuals against labor market risks.
The OECD’s comparative data on financial barriers to returning to work for Slovenia in 2023 shows the result for minimum wage is 87% of earnings, the sixth highest percentage among OECD countries. For the average salary, the result is 67.1%, very close to the OECD average of 69.9%. For 67% of the average wage in Slovenia, the result is 80.1%.
Trade unions in Slovenia continue to be a strong and important player in the institutionalized tripartite social dialogue – the Economic and Social Council. There are some differences between the various governments. Under the Janša government in 2021, the trade unions decided to withdraw from the social dialogue in the council after the government systematically violated the rules for the council’s functioning. Conversely, during the Golob government, this step was taken by the employers’ organizations, which accused the government of violating the social dialogue and pointed out their unequal position. Although the unionization rate in Slovenia is still around 20%, all employees, not only union members, can benefit from the agreements that unions have reached with employers or the government.
Regarding social security during unemployment, the basis for calculating financial compensation is the average monthly salary received in the eight months before the month of unemployment. For young people under 30 years of age, this period is five months. The duration of financial compensation depends on the employee’s age and insurance period, ranging from 2 to 25 months. Compensation decreases from 80% of the base for three months to 60% for the next nine months and 50% after one year. If, at the end of the financial compensation period, an employee has no more than one year to fulfill the minimum requirements for the old-age pension and is still unemployed, they may be entitled to have their pension and disability insurance contributions paid by the state.
To some extent, the portability of social rights is guaranteed, particularly with pensions. In Slovenia, there is a widow’s pension and a family pension, which can be drawn under various conditions. It is also possible to receive a disability pension.
Citations:
Al, Ma., and M.Z. 2021. “Sindikalne centrale se umikajo iz Ekonomsko-socialnega sveta.” RTVSLO. https://www.rtvslo.si/slovenija/sindikalne-centrale-se-umikajo-iz-ekonomsko-socialnega-sveta/580017
OECD. 2024. “Financial Disincentive to Return to Work.” https://data.oecd.org/benwage/financial-disincentive-to-return-to-work.htm
M.Z. and K.G. 2023. “Delodajalci začasno izstopajo iz ESS-ja.” RTVSLO. https://www.rtvslo.si/slovenija/delodajalci-zacasno-izstopajo-iz-ess-ja-mesec-gre-za-takticno-blokado-sprememb/675724
Trade unions in Slovenia continue to be a strong and important player in the institutionalized tripartite social dialogue – the Economic and Social Council. There are some differences between the various governments. Under the Janša government in 2021, the trade unions decided to withdraw from the social dialogue in the council after the government systematically violated the rules for the council’s functioning. Conversely, during the Golob government, this step was taken by the employers’ organizations, which accused the government of violating the social dialogue and pointed out their unequal position. Although the unionization rate in Slovenia is still around 20%, all employees, not only union members, can benefit from the agreements that unions have reached with employers or the government.
Regarding social security during unemployment, the basis for calculating financial compensation is the average monthly salary received in the eight months before the month of unemployment. For young people under 30 years of age, this period is five months. The duration of financial compensation depends on the employee’s age and insurance period, ranging from 2 to 25 months. Compensation decreases from 80% of the base for three months to 60% for the next nine months and 50% after one year. If, at the end of the financial compensation period, an employee has no more than one year to fulfill the minimum requirements for the old-age pension and is still unemployed, they may be entitled to have their pension and disability insurance contributions paid by the state.
To some extent, the portability of social rights is guaranteed, particularly with pensions. In Slovenia, there is a widow’s pension and a family pension, which can be drawn under various conditions. It is also possible to receive a disability pension.
Citations:
Al, Ma., and M.Z. 2021. “Sindikalne centrale se umikajo iz Ekonomsko-socialnega sveta.” RTVSLO. https://www.rtvslo.si/slovenija/sindikalne-centrale-se-umikajo-iz-ekonomsko-socialnega-sveta/580017
OECD. 2024. “Financial Disincentive to Return to Work.” https://data.oecd.org/benwage/financial-disincentive-to-return-to-work.htm
M.Z. and K.G. 2023. “Delodajalci začasno izstopajo iz ESS-ja.” RTVSLO. https://www.rtvslo.si/slovenija/delodajalci-zacasno-izstopajo-iz-ess-ja-mesec-gre-za-takticno-blokado-sprememb/675724
Graph View
To what extent do existing tax institutions and procedures support or hinder adequate tax revenue flows?
10
9
9
The tax system is fully aligned with the goals of ensuring adequate tax revenues.
8
7
6
7
6
The tax system is largely aligned with the goals of ensuring adequate tax revenues.
5
4
3
4
3
The tax system is only somewhat aligned with the goals of ensuring adequate tax revenues.
2
1
1
The tax system is not at all aligned with the goals of ensuring adequate tax revenues.
Tax revenue comes from a wide range of taxes. Income tax accounts for approximately 40%, with social security contributions at more than 30% and corporate tax at 10%. According to the OECD, this is among the highest in its category. While the average tax wedge for a single employee has increased since 2009 by less than 1%, it remains lower than the pre-2009 levels. Slovenia ranked 14th out of 38 OECD countries in terms of the tax rate in 2022, with a rate of 37.4% compared to the OECD average of 34.0%.
Many employers and economists call for lower income taxes to address investment problems in Slovenia. Others, however, emphasize the need for higher productivity instead of lower taxes. Prime Minister Janša’s government responded to the former group by preparing a “mini-tax reform.” In contrast, Prime Minister Golob’s government announced several higher taxes for 2023. The OECD advocates for changes to the tax system to foster growth by further reducing taxes on labor and increasing taxes on consumption and property.
The tax authorities reported a decline in tax liabilities for 2023, which totaled €841.4 million, 6.1% less than the previous year. This trend of decreasing tax liabilities has persisted for years. In 2022, the Financial Administration filed 61 criminal charges with the public prosecutor’s offices (31 cases, 33.69% less than in 2021) and reported 46 criminal offenses to the police (30 cases, 39.47% less than in 2021). A total of 254 offenders were charged.
In 2022, authorities conducted 471 income tax checks – covering tax on income from employment, other income, capital assets, and undeclared income from employment – identifying an additional €18,815,871 in tax debts. This number of checks is significantly lower than in 2020 (580), when almost twice as much additional tax debt was identified.
The Tax Justice Network reports that the tax shortfall had a significant social impact, equivalent to 6.67% of the healthcare budget and 8.12% of education spending.
Citations:
Ministrstvo za finance. 2023. “Letno poročilo Finančne uprave Republike Slovenia.” https://www.gov.si/assets/organi-v-sestavi/FURS/Strateski-dokumenti/2023/Letno-porocilo-Financne-uprave-za-leto-2022.pdf
OECD. 2023. “Taxing Wages – Slovenia.” https://www.oecd.org/tax/tax-policy/taxing-wages-slovenia.pdf
OECD. 2023. “Revenue Statistics – Slovenia.” https://www.oecd.org/tax/revenue-statistics-slovenia.pdf
Tax Justice Network. 2024. “Slovenia.” https://taxjustice.net/country-profiles/slovenia/
Many employers and economists call for lower income taxes to address investment problems in Slovenia. Others, however, emphasize the need for higher productivity instead of lower taxes. Prime Minister Janša’s government responded to the former group by preparing a “mini-tax reform.” In contrast, Prime Minister Golob’s government announced several higher taxes for 2023. The OECD advocates for changes to the tax system to foster growth by further reducing taxes on labor and increasing taxes on consumption and property.
The tax authorities reported a decline in tax liabilities for 2023, which totaled €841.4 million, 6.1% less than the previous year. This trend of decreasing tax liabilities has persisted for years. In 2022, the Financial Administration filed 61 criminal charges with the public prosecutor’s offices (31 cases, 33.69% less than in 2021) and reported 46 criminal offenses to the police (30 cases, 39.47% less than in 2021). A total of 254 offenders were charged.
In 2022, authorities conducted 471 income tax checks – covering tax on income from employment, other income, capital assets, and undeclared income from employment – identifying an additional €18,815,871 in tax debts. This number of checks is significantly lower than in 2020 (580), when almost twice as much additional tax debt was identified.
The Tax Justice Network reports that the tax shortfall had a significant social impact, equivalent to 6.67% of the healthcare budget and 8.12% of education spending.
Citations:
Ministrstvo za finance. 2023. “Letno poročilo Finančne uprave Republike Slovenia.” https://www.gov.si/assets/organi-v-sestavi/FURS/Strateski-dokumenti/2023/Letno-porocilo-Financne-uprave-za-leto-2022.pdf
OECD. 2023. “Taxing Wages – Slovenia.” https://www.oecd.org/tax/tax-policy/taxing-wages-slovenia.pdf
OECD. 2023. “Revenue Statistics – Slovenia.” https://www.oecd.org/tax/revenue-statistics-slovenia.pdf
Tax Justice Network. 2024. “Slovenia.” https://taxjustice.net/country-profiles/slovenia/
To what extent do existing tax institutions and procedures consider equity aspects?
10
9
9
The tax system is fully aligned with the goal of ensuring equity.
8
7
6
7
6
The tax system is largely aligned with the goal of ensuring equity.
5
4
3
4
3
The tax system is only somewhat aligned with the goal of ensuring equity.
2
1
1
The tax system is not at all aligned with the goal of ensuring equity.
The corporate tax rate is 19% and, according to an OECD report, is one of the lowest in comparison. Prime Minister Golob’s government has increased it to 22% for 2024 – 2028. The progressive income tax for individuals with a handful of different rates ensures a certain vertical equity. Since 2023 (Golob government), the highest income tax rate is back to 50% (previously 45%) for those in the highest tax bracket. The general tax-free allowance was increased to €5,000 in 2023, as already provided for in the mini-tax reform of Prime Minister Janša’s government. However, this reform had promised that the amount would be €7,500 in 2024, while the current government of Prime Minister Golob has decided that the general tax allowance will remain at €5,000 in 2024.
Citations:
OECD. 2024. “Tax Database.” https://www.oecd.org/tax/tax-policy/tax-database/
Citations:
OECD. 2024. “Tax Database.” https://www.oecd.org/tax/tax-policy/tax-database/
To what extent do existing tax institutions and procedures minimize compliance and collection costs?
10
9
9
The tax system is fully aligned with the goal of minimizing compliance and collection costs.
8
7
6
7
6
The tax system is largely aligned with the goal of minimizing compliance and collection costs.
5
4
3
4
3
The tax system is only somewhat aligned with the goal of minimizing compliance and collection costs.
2
1
1
The tax system is not at all aligned with the goal of minimizing compliance and collection costs.
Tax regulations and procedures are complex for both individuals and companies. Prime Minister Janša’s government has already prepared measures to reduce bureaucracy and simplify procedures. In 2023, the Ministry of Finance analyzed the tax system and admitted that the tax rules had become opaque following the introduction of numerous partial changes in recent years – they have made the system less transparent.
Prime Minister Golob’s government announced a reform of the tax system in 2022 to address these shortcomings and introduce changes so that those with significantly more pay their taxes fairly. However, in 2023, the reform was still not prepared; at one point, it was even canceled. By the end of 2023, the reform was back on the agenda but not publicly presented. These developments have confused and not contributed to the predictability of the system.
For years, at least the income tax form, the “informative calculation,” has been prepared by the Financial Administration and sent to taxpayers, who can complain if the data is incorrect.
Citations:
Vlada. 2024. “Cilj je pregleden, enostaven in uravnotežen davčni sistem.” https://www.gov.si/novice/2023-03-14-cilj-je-pregleden-enostaven-in-uravnotezen-davcni-sistem
Prime Minister Golob’s government announced a reform of the tax system in 2022 to address these shortcomings and introduce changes so that those with significantly more pay their taxes fairly. However, in 2023, the reform was still not prepared; at one point, it was even canceled. By the end of 2023, the reform was back on the agenda but not publicly presented. These developments have confused and not contributed to the predictability of the system.
For years, at least the income tax form, the “informative calculation,” has been prepared by the Financial Administration and sent to taxpayers, who can complain if the data is incorrect.
Citations:
Vlada. 2024. “Cilj je pregleden, enostaven in uravnotežen davčni sistem.” https://www.gov.si/novice/2023-03-14-cilj-je-pregleden-enostaven-in-uravnotezen-davcni-sistem
To what extent do existing tax institutions and procedures internalize negative and positive externalities?
10
9
9
The tax system is fully aligned with the goal of internalizing externalities.
8
7
6
7
6
The tax system is largely aligned with the goal of internalizing externalities.
5
4
3
4
3
The tax system is only somewhat aligned with the goal of internalizing externalities.
2
1
1
The tax system is not at all aligned with the goal of internalizing externalities.
As the European Environment Agency (2023) reported, the share of environmental taxes in total tax revenue varies among EU member states. Slovenia is among the countries that have seen the largest decrease (by more than 2%) between 2010 and 2021 – from 9.4% to 7.2%. According to the Slovenian Statistical Office (2023), environmental taxes accounted for 2.86% of GDP in 2022, compared to 3.12% in 2021. In 2022, €1,633 million in environmental taxes were paid in Slovenia, only 0.02% more than in the previous year. Energy taxes accounted for the largest share of environmental taxes (84.1%), followed by transport taxes (12.5%) and taxes on pollution and resources (3.4%). Private households paid 53.4%, and the corporate sector paid 43.1% of environmental taxes (3.5% were paid by non-residents – foreign transit across Slovenian territory).
Taxpayers in Slovenia can apply for a reduction in the tax base of up to 100% of the sum of investments in research and development during a certain period, up to a maximum of the amount of the tax base.
Citations:
European Environment Agency. 2024. “Slovenia.” https://www.eea.europa.eu/en/analysisindicators
Taxpayers in Slovenia can apply for a reduction in the tax base of up to 100% of the sum of investments in research and development during a certain period, up to a maximum of the amount of the tax base.
Citations:
European Environment Agency. 2024. “Slovenia.” https://www.eea.europa.eu/en/analysisindicators
Graph View
To what extent do existing budgetary institutions and procedures support or hinder sustainable budgeting?
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9
9
Budgetary institutions and policies are fully aligned with the goals of sustainable budgeting.
8
7
6
7
6
Budgetary institutions and policies are largely aligned with the goals of sustainable budgeting.
5
4
3
4
3
Budgetary institutions and policies are only somewhat aligned with the goals of sustainable budgeting.
2
1
1
Budgetary institutions and policies are not at all aligned with the goals of sustainable budgeting.
Under external pressure during the financial and fiscal crises, the “fiscal rule” was incorporated into the constitution by the National Assembly. The rule states that the revenue and expenditure of the state budget must be balanced in the medium term without borrowing, or that revenue must exceed expenditure. Based on these obligations, the Fiscal Council was also established as an autonomous state authority to oversee fiscal policy management. A temporary deviation from this principle is permitted when exceptional circumstances affect the state.
In recent years, there have been several such circumstances – the global COVID-19 crisis was followed by the energy crisis, and in August 2023, catastrophic floods in Slovenia represented an exceptional macroeconomic and fiscal shock that will require various recovery measures in the future. The decline in the debt ratio from 79.6% in 2020 is expected to be somewhat more gradual than in the previous two years, with an expected decline in GDP of just under four percentage points in 2023 and 2024, while the debt ratio is expected to reach 66.6% of GDP by the end of 2024.
As the Fiscal Council critically assessed in October 2023, the draft budget documents indicated a deterioration in the budget situation and a continuation of the pro-cyclical expansionary fiscal policy. The council warned that, as has been the case for many years, the budget documents once again ignore important and growing long-term challenges, which pose an even greater risk to fiscal sustainability.
In response, the government asserted that Slovenia is below average in terms of public debt-to-GDP in the EU and the eurozone. Furthermore, according to the government, Slovenia is reducing public debt-to-GDP faster than the EU and eurozone average.
Public finances include the state budget, municipal budgets, the pension insurance fund, and the health insurance fund. The state budget is the largest, accounting for 48.4% of the total expenditure of all four public financial budgets, followed by the Pension and Disability Insurance Institute of Slovenia (ZPIZ) with 27.1% and the Health Insurance Institute of Slovenia (ZZZS) with 14.2%.
The municipal budgets account for 10.3% in comparison. The OECD has called for several structural reforms, with one of the most necessary being the pension system reform, as Slovenia has the highest projected increase in pension expenditure due to an aging population. The constitution stipulates that all revenue and expenditure to finance public spending must be included in the state budget. The general government deficit has fallen from 4.6% of GDP in 2021 to 3.0% in 2022; it is expected to be 3.7% in 2023.
Citations:
Evropska komisija. 2023. “Slovenia 2023 Country Report.” https://economy-finance.ec.europa.eu/document/download/630e1d06-6230-438a-b61f-529a361960ae_en?filename=SI_SWD_2023_624_en.pdf
Fiskalni svet Republike Slovenije. 2023. “Ocena Fiskalnega sveta: Ocena proračunskih dokumentov za leti 2024 in 2025.” https://www.fs-rs.si/ocena-fiskalnega-sveta-ocena-proracunskih-dokumentov-za-leti-2024-in-2025/
Ministrstvo za finance. 2024. “Javnofinančna gibanja 2024.” https://www.gov.si/assets/ministrstva/MF/ekonomska-in-fiskalna-poltika/Blagajne-JF/Cetrtletni-pregled-javnofinancnih-gibanj-januar-2024.pdf
OECD. 2022. “Slovenia Economic Snapshot.” https://www.oecd.org/economy/slovenia-economic-snapshot
In recent years, there have been several such circumstances – the global COVID-19 crisis was followed by the energy crisis, and in August 2023, catastrophic floods in Slovenia represented an exceptional macroeconomic and fiscal shock that will require various recovery measures in the future. The decline in the debt ratio from 79.6% in 2020 is expected to be somewhat more gradual than in the previous two years, with an expected decline in GDP of just under four percentage points in 2023 and 2024, while the debt ratio is expected to reach 66.6% of GDP by the end of 2024.
As the Fiscal Council critically assessed in October 2023, the draft budget documents indicated a deterioration in the budget situation and a continuation of the pro-cyclical expansionary fiscal policy. The council warned that, as has been the case for many years, the budget documents once again ignore important and growing long-term challenges, which pose an even greater risk to fiscal sustainability.
In response, the government asserted that Slovenia is below average in terms of public debt-to-GDP in the EU and the eurozone. Furthermore, according to the government, Slovenia is reducing public debt-to-GDP faster than the EU and eurozone average.
Public finances include the state budget, municipal budgets, the pension insurance fund, and the health insurance fund. The state budget is the largest, accounting for 48.4% of the total expenditure of all four public financial budgets, followed by the Pension and Disability Insurance Institute of Slovenia (ZPIZ) with 27.1% and the Health Insurance Institute of Slovenia (ZZZS) with 14.2%.
The municipal budgets account for 10.3% in comparison. The OECD has called for several structural reforms, with one of the most necessary being the pension system reform, as Slovenia has the highest projected increase in pension expenditure due to an aging population. The constitution stipulates that all revenue and expenditure to finance public spending must be included in the state budget. The general government deficit has fallen from 4.6% of GDP in 2021 to 3.0% in 2022; it is expected to be 3.7% in 2023.
Citations:
Evropska komisija. 2023. “Slovenia 2023 Country Report.” https://economy-finance.ec.europa.eu/document/download/630e1d06-6230-438a-b61f-529a361960ae_en?filename=SI_SWD_2023_624_en.pdf
Fiskalni svet Republike Slovenije. 2023. “Ocena Fiskalnega sveta: Ocena proračunskih dokumentov za leti 2024 in 2025.” https://www.fs-rs.si/ocena-fiskalnega-sveta-ocena-proracunskih-dokumentov-za-leti-2024-in-2025/
Ministrstvo za finance. 2024. “Javnofinančna gibanja 2024.” https://www.gov.si/assets/ministrstva/MF/ekonomska-in-fiskalna-poltika/Blagajne-JF/Cetrtletni-pregled-javnofinancnih-gibanj-januar-2024.pdf
OECD. 2022. “Slovenia Economic Snapshot.” https://www.oecd.org/economy/slovenia-economic-snapshot
Graph View
How committed is the government to utilizing research and innovation as drivers for the transition to a sustainable economy and society?
10
9
9
The government is clearly committed to utilizing research and innovation as drivers for the transition to a sustainable economy and society.
8
7
6
7
6
The government is largely committed to utilizing research and innovation as drivers for the transition toward a sustainable economy and society.
5
4
3
4
3
The government is somewhat committed to utilizing research and innovation as drivers for the transition toward a sustainable economy and society.
2
1
1
The government is not at all committed to utilizing research and innovation as drivers for the transition toward a sustainable economy and society.
According to Eurostat, gross domestic expenditure on research and development (R&D) as a percentage of GDP in Slovenia was 2.11% in 2022. Considering that R&D expenditure in eight EU member states was less than 1% of GDP in 2022, Slovenia’s performance appears favorable. However, several countries, including Slovenia, saw significant declines in R&D intensity compared to 2012, with Slovenia experiencing a decrease of 0.30 percentage points.
The data on gross domestic expenditure on R&D by sector in 2022 (as a percentage of GDP) indicates that the Slovenian business enterprise sector invested the most at 1.4%. This was followed by the government sector at 0.33% and the higher education sector at 0.27%, while the private nonprofit sector made almost no investments. This pattern is similar to other EU countries and closely aligns with the EU average across all sectors.
In terms of gross domestic expenditure on R&D in Slovenia by source in 2021, the business enterprise sector accounted for 48.7%, compared to the EU average of 57.7%. The government contributed 24.3% (EU average: 30.3%), the higher education sector accounted for 0.5% (EU average: 1.2%), and the rest of the world contributed 26.4% (EU average: 9.7%).
Slovenia is also above the EU average in the number of researchers per 1,000 employed persons in 2021, with 10.51 researchers compared to the EU average of 9.34. Although Slovenia lagged in 2000 with 4.74 researchers compared to the EU average of 5.09, there has been an almost continuous increase in this respect over the last two decades.
Overall, the data presents a relatively good or improving picture for Slovenia in 2022.
Nevertheless, some more critical views persist. For example, the Joint Innovation Index shows that Slovenia is still one of the moderate innovators. The EU’s innovation performance improved from 2014 – 2021, while it deteriorated in Slovenia until 2020 and only showed improvement in 2021. During 2018 – 2022, the share of companies engaged in innovation activities in manufacturing and selected services was 55.2% (the ratio between the number of companies with innovation activities and all companies).
Recently, more ambitious targets have been set. Several important legal acts have been adopted to achieve these goals, such as the Law on Scientific Research and Innovation Activities (2021) and the Resolution on the Slovenian Scientific Research and Innovation Strategy 2030 (2022). The latter is the most important strategic document in this area and is closely linked to several other strategic documents. It forms the basis for formulating policy measures for social, economic, sustainable development, and societal challenges.
The Resolution defines the ministries and sectors responsible for implementation and their reporting obligations to the government and the National Assembly. Concurrently, the Development Council of Slovenia also monitors activities in this area. Regular evaluations must include experts from abroad, and some action plans have already been adopted.
For many research organizations, EU funds for research and innovation remain the most important source of funding, as they cannot obtain funding from national sources for their research. Additionally, there is a general lack of resources in certain areas (e.g., social sciences and humanities).
Citations:
EUROSTAT. 2023. “R&D Expenditure.” https://ec.europa.eu/eurostat/statistics-explained/index.php?title=R%26D_expenditure#Gross_domestic_expenditure_on_R.26D
OECD. 2024. “OECD Data.” https://data.oecd.org/rd/researchers.htm
OECD. 2022. “OECD Economic Survey – Slovenia.” https://www.oecd-ilibrary.org/economics/oecd-economic-surveys-slovenia-2022_d63f5a2f-en
Slovenian Research and Innovation Agency. 2023. “Annual Report of the Slovenian Research Agency for 2022.” https://www.aris-rs.si/en/gradivo/dokum/inc/23/LP-ARRS-2022-eng.pdf
https://www.oecd-ilibrary.org/economics/oecd-economic-surveys-slovenia-2022_d63f5a2f-en
The data on gross domestic expenditure on R&D by sector in 2022 (as a percentage of GDP) indicates that the Slovenian business enterprise sector invested the most at 1.4%. This was followed by the government sector at 0.33% and the higher education sector at 0.27%, while the private nonprofit sector made almost no investments. This pattern is similar to other EU countries and closely aligns with the EU average across all sectors.
In terms of gross domestic expenditure on R&D in Slovenia by source in 2021, the business enterprise sector accounted for 48.7%, compared to the EU average of 57.7%. The government contributed 24.3% (EU average: 30.3%), the higher education sector accounted for 0.5% (EU average: 1.2%), and the rest of the world contributed 26.4% (EU average: 9.7%).
Slovenia is also above the EU average in the number of researchers per 1,000 employed persons in 2021, with 10.51 researchers compared to the EU average of 9.34. Although Slovenia lagged in 2000 with 4.74 researchers compared to the EU average of 5.09, there has been an almost continuous increase in this respect over the last two decades.
Overall, the data presents a relatively good or improving picture for Slovenia in 2022.
Nevertheless, some more critical views persist. For example, the Joint Innovation Index shows that Slovenia is still one of the moderate innovators. The EU’s innovation performance improved from 2014 – 2021, while it deteriorated in Slovenia until 2020 and only showed improvement in 2021. During 2018 – 2022, the share of companies engaged in innovation activities in manufacturing and selected services was 55.2% (the ratio between the number of companies with innovation activities and all companies).
Recently, more ambitious targets have been set. Several important legal acts have been adopted to achieve these goals, such as the Law on Scientific Research and Innovation Activities (2021) and the Resolution on the Slovenian Scientific Research and Innovation Strategy 2030 (2022). The latter is the most important strategic document in this area and is closely linked to several other strategic documents. It forms the basis for formulating policy measures for social, economic, sustainable development, and societal challenges.
The Resolution defines the ministries and sectors responsible for implementation and their reporting obligations to the government and the National Assembly. Concurrently, the Development Council of Slovenia also monitors activities in this area. Regular evaluations must include experts from abroad, and some action plans have already been adopted.
For many research organizations, EU funds for research and innovation remain the most important source of funding, as they cannot obtain funding from national sources for their research. Additionally, there is a general lack of resources in certain areas (e.g., social sciences and humanities).
Citations:
EUROSTAT. 2023. “R&D Expenditure.” https://ec.europa.eu/eurostat/statistics-explained/index.php?title=R%26D_expenditure#Gross_domestic_expenditure_on_R.26D
OECD. 2024. “OECD Data.” https://data.oecd.org/rd/researchers.htm
OECD. 2022. “OECD Economic Survey – Slovenia.” https://www.oecd-ilibrary.org/economics/oecd-economic-surveys-slovenia-2022_d63f5a2f-en
Slovenian Research and Innovation Agency. 2023. “Annual Report of the Slovenian Research Agency for 2022.” https://www.aris-rs.si/en/gradivo/dokum/inc/23/LP-ARRS-2022-eng.pdf
https://www.oecd-ilibrary.org/economics/oecd-economic-surveys-slovenia-2022_d63f5a2f-en
Graph View
How committed and credible is the government in its activities to guide the effective regulation and supervision of the international financial architecture?
10
9
9
The government is clearly committed to ensuring the stability of the global financial system.
8
7
6
7
6
The government is largely committed to ensuring the stability of the global financial system.
5
4
3
4
3
The government is somewhat committed to ensuring the stability of the global financial system.
2
1
1
The government is not at all committed to ensuring the stability of the global financial system.
Bank of Slovenia data shows that non-performing loans (as a percentage of the gross book value of loans and advances) stood at 0.97% in Slovenia in November 2023. This marks a significant and continuous decline since June 2015. CEIC data indicates that the ratio of non-performing loans in Slovenia was 0.7% in October 2023 – the same as in the previous month – and thus at a record low. The all-time high of 18.1% was recorded in November 2013.
Slovenia’s foreign exchange reserves were measured at USD 909.7 million in November 2023. The country’s domestic credit reached $37.7 billion in July 2023, and household debt in Slovenia reached $18.5 billion in June 2023, equivalent to 28.1% of the country’s nominal GDP.
In 2007, Slovenia joined the eurozone, demonstrating its commitment to adhering to broader fiscal policy rules and agreements. The country has effectively implemented the eurozone’s agreements and regulations.
The Development Strategy of Slovenia 2030, adopted in 2017, clearly articulates the nation’s awareness of its dependence on its ability to respond and adapt to global trends and challenges. It underscores the increasing importance of cooperation and connections at global, European, and national levels, as well as cross-border cooperation.
Slovenia is a member of several significant institutions, such as the IMF, and actively participates in various interrelated mechanisms to coordinate common EU positions on IMF issues. These activities occur within the framework of multiple (sub)committees and working groups at the EU and ECB levels. By contributing its share of the regular (quota) and extraordinary or temporary resources (BBA), Slovenia helps ensure the stability of the global financial system that the IMF aims to achieve. Slovenia has been involved in the FTP mechanism since 1998.
Citations:
Bank of Slovenia. 2024. “Information on Non-Performing Exposures.” https://www.bsi.si/en/financial-stability/banking-system-supervision/supervisory-disclosure/information-on-non-performing-exposures
CEIC. 2023. “Slovenia Non-Performing Loans Ratio.” https://www.ceicdata.com/en/indicator/slovenia/non-performing-loans-ratio
Kobe, Vanja. 2023. Sodelovanje Slovenije z Mednarodnim denarnim skladom. Ljubljana: Banka Slovenije. https://bankaslovenije.blob.core.windows.net/publication-files/sodelovanje-slovenije-z-mds_september-2023.pdf
Slovenia’s foreign exchange reserves were measured at USD 909.7 million in November 2023. The country’s domestic credit reached $37.7 billion in July 2023, and household debt in Slovenia reached $18.5 billion in June 2023, equivalent to 28.1% of the country’s nominal GDP.
In 2007, Slovenia joined the eurozone, demonstrating its commitment to adhering to broader fiscal policy rules and agreements. The country has effectively implemented the eurozone’s agreements and regulations.
The Development Strategy of Slovenia 2030, adopted in 2017, clearly articulates the nation’s awareness of its dependence on its ability to respond and adapt to global trends and challenges. It underscores the increasing importance of cooperation and connections at global, European, and national levels, as well as cross-border cooperation.
Slovenia is a member of several significant institutions, such as the IMF, and actively participates in various interrelated mechanisms to coordinate common EU positions on IMF issues. These activities occur within the framework of multiple (sub)committees and working groups at the EU and ECB levels. By contributing its share of the regular (quota) and extraordinary or temporary resources (BBA), Slovenia helps ensure the stability of the global financial system that the IMF aims to achieve. Slovenia has been involved in the FTP mechanism since 1998.
Citations:
Bank of Slovenia. 2024. “Information on Non-Performing Exposures.” https://www.bsi.si/en/financial-stability/banking-system-supervision/supervisory-disclosure/information-on-non-performing-exposures
CEIC. 2023. “Slovenia Non-Performing Loans Ratio.” https://www.ceicdata.com/en/indicator/slovenia/non-performing-loans-ratio
Kobe, Vanja. 2023. Sodelovanje Slovenije z Mednarodnim denarnim skladom. Ljubljana: Banka Slovenije. https://bankaslovenije.blob.core.windows.net/publication-files/sodelovanje-slovenije-z-mds_september-2023.pdf