Klub 500: Slovakia Failed to Tap Its Potential Fully in 2025

Bratislava, 4 January (TASR) - Slovakia failed to adopt systemic measures in 2025 to prepare the country for future challenges, large businesses association Klub 500 stated earlier this week, adding that despite some positive aspects, the overall picture raises concerns. In 2025, Slovakia wasted time when it came to healing public finances and strengthening competitiveness. "Without the courage to take decisions at a systemic level, reduce inefficient spending and create a stable and predictable environment for doing business, Slovakia will continue to fall behind more successful EU countries," said Klub 500 executive director Tibor Gregor. One of the main problems is how the consolidation of public finances is being approached. The focus remains primarily on the revenue side of the budget, which increases the burden of payroll taxes. Conversely, the government has failed to thoroughly optimise its own spending, with the general government deficit and debt hitting dangerous levels, thus hampering economic growth and development policies. In terms of competitiveness, innovation and the business environment, Slovakia continues to under-perform in most international rankings. Declared support for competitiveness, innovation and higher added-value investment often remains only on paper. While public spending in EU countries on research and development averages at around €285 per capita, the figure is only €86 in Slovakia. Klub 500 considers it to be positive that, despite initial problems, calls supporting science, research and innovation in robotics, automation and biotechnology have been adjusted in a way that allows them to continue. High energy prices for industry reduce the competitiveness of Slovak businesses when compared to neighbouring countries, which Klub 500 sees as a very serious problem that may lead to a further decline in industrial output and drive investment away from Slovakia. "It's unsustainable for Slovak companies to pay electricity prices exceeding €120 per megawatt-hour at a time when countries like Germany, France, or Italy have managed to arrange, through systemic measures, prices for their industries ranging from €42 to €60 per MWh," explained Gregor. According to Klub 500, political conflicts have reached alarming levels, as any initiative - regardless of where it comes from - is politically torpedoed without an expert debate. Unless political leaders are able to unite at least on basic economic priorities, the problems will continue to deepen, thus harming the entire country and its people, stated Klub 500. jrg/df