The government of Slovakia has unveiled a package of measures aimed at revitalising the economy.
The package presented by Economy Minister Denisa Saková includes 49 legislative initiatives covering entrepreneurship, the labour market, and energy. Eleven of these measures are part of a draft law already submitted to parliament, while the remaining 38 have not yet been translated into concrete legislative proposals. These will be assigned to individual ministries as tasks with deadlines until the end of 2026.
The measures package (prorastový balík) is an attempt to simultaneously reduce business costs and simplify regulation. The government has described it as a first step towards improving the country’s competitiveness. However, experts predict it will not have a significant impact on the economy, while leading to lower state budget revenues.
Business and Labour Market
A significant part of the package concerns small businesses and the creation of new companies. The government is considering lowering the minimum share capital for limited liability companies (s.r.o.), abolishing the mandatory reserve fund, and simplifying the system of advance tax payments for self-employed individuals. In a more radical version, it is even proposed to allow the formation of limited liability companies from the age of 16. The overall aim is to make starting a business faster and cheaper, especially for young entrepreneurs.
Another section focuses on the labour market and foreign workers. Authorities want to speed up the recognition of foreign diplomas, simplify work permit procedures, and ease certain language and administrative requirements. The reason is a structural labour shortage: it is estimated that more than 100,000 job vacancies remain unfilled in the economy. The state is therefore attempting to attract foreign specialists more quickly in areas where the domestic labour market can no longer meet demand.
Energy and Deregulation
One of the key measures is the reduction of the tax burden on electricity for certain industrial producers. The current excise duty stands at €1.32 per megawatt-hour, but for energy-intensive companies it is planned to be reduced to €0.50. This applies to companies whose main revenues come from industry, energy, mining, and water management.
At the same time, the government plans to revise regulated components of electricity pricing (TPS and TSS), which significantly affect final utility costs for businesses.
Another major reform line is the reduction of administrative burdens. The government plans to eliminate duplicate reporting requirements that companies already submit to other state systems. Rules for entrepreneurs who have previously undergone personal bankruptcy are also being relaxed: this will no longer automatically restrict their access to business activity. In addition, disputed rules related to the registration of restrictions on business activity are being reviewed.
Reaction to the Initiative
The package has already faced criticism from employers’ associations and trade unions. Employers argue that it lacks key measures, particularly tax and social contribution reductions. There is also criticism over the fact that the transaction tax issue has not been addressed, which businesses consider one of the most burdensome factors.
Trade unions, on the other hand, warn that some measures may weaken labour protection standards, particularly in occupational health and safety regulation.
The fiscal impact is also mixed. The government claims that budget expenditures will not increase; however, revenues are expected to decline. Only due to the reduction in the electricity excise duty, the state is set to lose €745,000 by the end of 2026, and by 2029 the cumulative revenue loss is projected to reach €3.08 million.
Experts warn that even if the proposed measures are adopted, public finances will remain under pressure and the budget deficit is likely to continue growing.
List of measures to revitalise the economy proposed by the Slovak government
- Possible reduction of regulated surcharges on electricity prices for industry — TPS (Tarifa za prevádzkovanie systému) and TSS (Tarifa za systémové služby).
- Increased funding for the Modernisation Fund to reduce energy companies’ costs and limit growth in grid tariffs.
- Consideration of long-term electricity supply contracts for businesses at stable prices.
- Expansion of power purchase agreements (PPAs) between producers and consumers.
- Part of electricity costs for energy-intensive industrial companies may be shifted to the state.
- Increased compensation payments for companies to partially offset rising electricity prices due to carbon regulation.
- Expansion of public–private partnerships (PPP model), involving private capital in major infrastructure projects at an early planning stage to accelerate implementation.
- Modernisation of industrial buildings and facilities to reduce energy intensity.
- Simplification and unification of transparency rules in public procurement oversight.
- Creation of a Regional Development Fund with initial capital of around €30 million to support regional projects.
- Establishment of an Innovation Fund for regions with an annual budget of around €120 million.
- Support for highly innovative R&D projects involving businesses, universities, and startups, with a focus on transformative technologies.
- Introduction of state guarantee and credit support schemes (First Loss Portfolio Guarantee) to improve access to financing for innovation projects.
- Revision of tax depreciation rules — simplification or acceleration of cost write-offs for equipment and other investments to encourage business investment.
- Expansion of tax incentives allowing companies to reduce taxable income through R&D expenditure.
- Simplification of recognition procedures for foreign education and qualifications, especially for shortage occupations.
- Relaxation of language requirements to attract foreign specialists.
- Simplification of occupational safety rules (BOZP) without reducing worker protection standards.
- Updating outdated industrial technical standards (STN) from the 1980s and 1990s that create barriers to business and innovation.
- Transition to electronic documentation and monitoring of cross-border waste transport instead of paper-based processes.
- Abolition of environmental tax on office paper to reduce business costs.
- Simplification of small-scale waste reporting — introducing a 500 kg threshold below which reporting requirements are reduced.
- Reduction of compensation requirements for the removal of small trees.
- Alignment of national rules with EU standards for the full lifecycle and recycling of batteries and accumulators.
- Simplified environmental assessment procedures for small and low-risk waste management projects to reduce bureaucracy without weakening environmental oversight.
- Reduction of share capital for limited liability companies (s.r.o.), currently set at €5,000.
- Companies involved in major international scientific projects (e.g. CERN) will automatically be recognised as research and development entities.
- Reduction of fines for statistical reporting violations to levels comparable with neighbouring countries.
- Simplification of advance tax payments for self-employed persons, allowing annual rather than frequent submissions.
- Introduction of a “second chance” principle in business regulation, where sanctions apply only after repeated violations.
- Abolition of the mandatory reserve fund for limited liability companies (s.r.o.) to reduce administrative burden.
- Simplification of tax guarantee exemption procedures in excise warehouses for alcohol to reduce bureaucracy.
- Reduction of infrastructure gas tariffs for industry to lower costs for large consumers.
- Self-employed contributions will become more closely linked to income levels, with a minimum income threshold below which contributions are waived.
- Expansion of tax benefits for low-income individuals, especially in temporary and flexible employment.
- Companies fully using electronic document management will be allowed to stop receiving paper energy bills.
- Electricity suppliers will be allowed to inform customers about smart meters via websites instead of individual notifications.
- Proposal to allow the formation of limited liability companies (s.r.o.) from the age of 16 to facilitate early entrepreneurship.
