AGP Executive Report

Holocaust Site Redevelopment: Austria’s Hirtenberg women’s concentration camp area near Leobersdorf is set for a refrigerated storage and logistics facility plus a Lidl, after a reported €15m+ sale and rezoning profits sparked controversy. Slovak Heat & Farming: Prime Minister Robert Fico warns extreme heat and drought will cut Slovakia’s harvest, with some regions seeing up to 50% losses, and pledges to protect EU farm funding while backing irrigation investments. Energy Transition Watch: Eurostat data shows EU gas and renewables supply rising in 2025 while coal and petroleum fall; renewables still lead electricity generation (about 47% in Q1 2026), but Slovakia lags at ~17% renewables share. Battery Industry Push: Gotion and Spain confirm a €950m Valladolid cathode and recycling project, with construction starting in 2027 and major PERTE grants. NATO & Defense Industry: Türkiye hosts the NATO summit in Ankara for the first time in 22 years, with burden-sharing and a defense industry forum on the agenda. Regional Security Hardware: Portugal signs to acquire UH-60 Black Hawk helicopters via NSPA, boosting NATO interoperability. Water Stress: Italy’s Po River basin faces drought “critical state,” with irrigation limits looming. Tourism Pressure in Slovakia: Vlkolinec UNESCO village residents complain about overcrowding and privacy as tourist numbers hit ~100,000 a year. EV Savings Angle: Analysis says meeting EU EV targets could avoid ~190m barrels of oil imports annually by decade’s end.

EU Energy Watch: Eurostat data show EU natural gas supply up 2.3% in 2025 and renewables up 1.4%, while coal and petroleum products keep sliding; renewables still lead electricity generation at 47.2% (Q1 2026 figures also point to ~45.5–46%). Energy Security: ACER says Russian gas imports to the EU rose in early 2026 despite RepowerEU restrictions, with pipeline volumes up 7% and LNG up 11% as contracts are reshuffled ahead of later bans. Slovakia Agriculture & Heat: Prime Minister Fico warns extreme heat and drought will cut Slovakia’s harvest, with some regions already seeing wheat, barley and rapeseed losses up to 50%, and promises support for irrigation investment. Industrial Power: Slovakia’s Mochovce nuclear programme moves on as the plant’s fourth block receives an operating licence and fuel loading begins at Mochovce 4. Battery Industry: Gotion’s €950m Spain battery cathode and recycling project in Valladolid gets the go-ahead, with construction planned to start in 2027. Water Stress & Drought: Italy’s Po River basin is in a “critical state” as drought tightens, threatening irrigation and agricultural output. Local Tourism Pressure (Slovakia): Vlkolinec’s UNESCO boom is sparking privacy complaints from residents, with tourists ignoring “no entry/no photography” signs.

Slovak Agriculture Under Heat Pressure: Prime Minister Robert Fico says this year’s extreme heat and drought are expected to cut Slovakia’s harvest, with wheat, barley and rapeseed yields likely lower and some regions already seeing losses up to 50%, while the government pledges to protect EU farm funding and back irrigation investments via a public-private partnership. Energy Transition Watch: Eurostat data show renewables supplied 45.5% of EU electricity in Q1 2026, but Slovakia trails at 17.2%, highlighting the gap Slovakia still faces in power decarbonisation. Nuclear & Power Infrastructure: Fuel loading has begun at Slovakia’s Mochovce 4, and the plant’s fourth block received an operating licence—another step for domestic generation capacity. Hydrogen Tech Spotlight: A Swiss team won gold at the Hydrogen Grand Prix in Bulle, with qualified young engineers from Slovakia among the international field, underlining growing regional hydrogen know-how. Water Stress Across Europe: Italy’s Po River Authority warns northern Italy waterways are in a “critical state” from drought, with irrigation and crop choices already affected—an indirect stress signal for regional supply chains. Battery Industry Investment: Gotion’s €950m Spain battery cathode and recycling project was approved, with construction starting in 2027, reinforcing the EU’s push for circular battery materials.

Heat & Water Stress: Slovakia’s heatwave and drought are already hitting operations and planning, with Prime Minister Robert Fico warning 2026 harvest results will be worse than last year and farmers worried about feed quantity and quality, while reports also flag strain on the Slovak weather service after outages during extreme conditions. Energy Transition & Industry Finance: The European Commission and EIB disbursed €2.5bn from the Modernisation Fund for 51 energy projects across 11 EU states, including grid upgrades, renewables, storage, and geothermal district heating—supporting industrial competitiveness and cutting fossil fuel imports. Battery Supply Chain: Gotion’s €950m Spain battery cathode and recycling project in Valladolid got the go-ahead, with construction planned to start in 2027 and grants boosting the investment. Nuclear Build-Out: SGE unveiled plans for 14 BWRX-300 SMRs across three UK sites under the Advanced Nuclear Framework, targeting long-term power and industrial growth. Refining & Fuels: ORLEN Unipetrol’s Kralupy refinery marked 50 years of production, highlighting upgrades for reliability and SAF blending. Agriculture Risk Across Europe: A late-June heatwave is raising uncertainty for Europe’s potato sector during key growth stages, with potential yield declines if hot, dry conditions persist. Tourism Pressure in Slovakia: Vlkolinec, a UNESCO-listed Slovak village, is facing backlash from residents over tourism crowds and privacy concerns.

Ukraine Support Push: NATO chief Mark Rutte says Ukraine will stay on the agenda for the Ankara summit, urging more European allies to step up help via the Prioritized Ukraine Requirements List (PURL) model. Heatwave Fallout: Europe’s June heat has already driven at least 3,700 excess deaths in France, Belgium and the Netherlands, with figures expected to rise; in Slovakia, extreme heat is also stressing workplaces and drought-hit farms. Slovakia Agriculture: PM Robert Fico warns 2026 harvests will likely be lower due to heat and drought, with regional yield losses already reaching up to 50% in some areas, and pledges to protect EU farm funding while backing irrigation investment. Energy Transition Funding: The EU and EIB released €2.5bn from ETS Modernisation Fund for 51 projects across 11 states, including grid upgrades, renewables, storage and geothermal district heating. Renewables Snapshot: Eurostat data show renewables supplied 45.5% of EU electricity in Q1 2026, while Slovakia lags at 17.2%. Industrial Power & Industry: ORLEN Unipetrol’s Kralupy refinery marks 50 years of production, highlighting upgrades and sustainable aviation fuel blending. EV & Batteries: Gotion’s €950m Spain battery cathode and recycling project in Valladolid got the go-ahead, with construction planned to start in 2027. Nuclear Pipeline: SGE unveiled plans for a 14-unit BWRX-300 SMR fleet in the UK under the Advanced Nuclear Framework. Workplace Safety: Slovakia’s heat is forcing employers to adjust conditions—water, shade, and safer schedules—especially in agriculture, construction and logistics.

Slovak Heat & Work Safety: Slovakia’s heatwave hit 41.3°C on June 30, with drought and drinking-water limits, while workplaces across agriculture, construction, logistics and warehouses face legal duties to protect staff (water, shade, possible cooling, adjusted hours). Weather Service Reliability: The Slovak Hydrometeorological Institute reportedly suffered a major outage in its public warning and data system, raising fears for aviation and public safety. Agriculture Under Pressure: Prime Minister Robert Fico warned extreme heat and drought will likely cut 2026 harvest yields, with fodder quality also a concern. Energy & Industry Funding: The EU Commission and EIB disbursed €2.5bn from the Modernisation Fund to 51 energy projects across 11 countries, aiming to modernise grids, industry and renewables. Slovalco Aluminium Restart: Slovakia signed agreements to restart aluminium production at Slovalco in Žiar nad Hronom, with state support for carbon costs and electricity supply for up to ten years. Inflation Watch: Slovakia’s inflation eased to 3.5% in June as food and fuel costs cooled. EU Renewables Snapshot: Renewables generated 45.5% of EU electricity in Q1 2026; Slovakia sits at the low end at 17.2%. Defence Procurement Politics: Opposition challenged a €958,000 Defence Ministry renovation contract after a “faux brick wall” controversy and procurement questions.

Heat & Safety at Work: Slovakia’s extreme temperatures near 40°C are pushing employers to adjust hours, provide water and shade, and reduce risk in agriculture, construction, logistics, warehouses and kitchens, with workers able to refuse only when conditions pose an immediate serious threat. Aluminium Industrial Restart: The Slovak government signed terms to restart Slovalco’s curtailed primary aluminium output—75,000 tonnes first, with €100m investment and 200 jobs—supported by compensation for indirect carbon costs and long-term electricity supply, aiming for partial restart in 2026 and full operations in 2027. Inflation Watch: Slovakia’s inflation cooled to 3.5% in June as food and energy prices eased; the central bank expects a further slip to 3.3% in July, while core inflation stays sticky at 3.6%. Energy Transition Signals: Eurostat data shows renewables hit 45.5% of EU electricity in Q1 2026 (wind 44.9%, solar 17.3%); Slovakia remains among the lowest EU performers at 17.2%. Gas Security Pressure: Europe has only about four months to refill storage before winter, and market filling alone may not be enough as Russian gas flows rise despite phase-out rules. Procurement Controversy: Opposition Progressive Slovakia is challenging a €958,000 Defence Ministry “faux brick wall” renovation, alleging procurement and execution issues tied to political connections.

Aluminium Restart in Slovakia: Slovalco (Hydro majority-owned) agreed with the Slovak government to restart 75,000 tonnes of curtailed primary aluminium capacity, with production expected before year-end; the deal includes €100m investment, 200 jobs, a long-term power purchase agreement, and a compensation framework for indirect carbon costs under the EU ETS, pending European Commission approval. Energy Policy & Ownership: Slovakia is weighing a possible 17% stake buyback in Slovenské elektrárne, with the price potentially reaching up to €3bn depending on valuation and timing, tied to Mochovce unit 4 reaching full output. EU Renewables Snapshot: Eurostat data shows renewables generated 45.5% of EU electricity in Q1 2026 (up from 42.7% a year earlier), led by wind (44.9% of renewable output); Slovakia sits among the lowest EU countries at 17.2%. Regional Economy Outlook: wiiw raised its growth forecast for Bulgaria and expects Central, Eastern and Southeast Europe to stay resilient in 2026 despite energy-price pressure and geopolitical risks. Finance Watch: ESMA appointed Peter Tkáč (NBS) to its Management Board for the remainder of the outgoing term until 31 March 2027. Defense Industry Link: Poland’s PGZ is considering building depot-level maintenance and repair support in Poland for Ukrainian F-16 and MiG-29 fleets, using its existing aircraft industrial base.

Energy Security & State Stakes: Slovakia is weighing a deal to buy a 17% stake in Slovenské elektrárne, with the price potentially ranging from hundreds of millions up to €3 billion, tied to the Mochovce nuclear plant’s fourth unit ramp-up. Power & Industry: Norsk Hydro’s Slovak aluminium smelter (Slovalco) will partially restart—75,000 t/y—from Q4 2026 after a government-linked power supply framework, with €100m investment and 200+ jobs. EU Renewables Snapshot: Eurostat says renewables supplied 45.5% of EU electricity in Q1 2026 (up from 42.7%); wind led, while Slovakia sat at 17.2%—one of the lowest shares. Regional Economic Outlook: wiiw forecasts Central, Eastern and Southeast Europe staying resilient, but warns structural weaknesses and geopolitics could still bite. Water Supply Pressure in Nitra Region: ZSVS has imposed water restrictions on nearly 30 towns and villages due to reduced source capacity, with possible pressure drops or interruptions. Heatwave Fallout: Europe’s extreme heat continues to disrupt infrastructure and health systems, with Spain reporting 1,028+ heat-related deaths since the surge began. EU Logistics Rule Change: From July 1, the EU introduces a €3 duty on small parcels under €150; Switzerland may be affected when shipping into EU states. Automotive Orders: Škoda Group reported 2025 orders of ~€1.8bn and a major EBITDA jump, driven by rail demand for battery and hybrid trains. Defense-Industrial Timing: Ukraine’s “Fast Track” for certain military exports cuts review from 90 to 30 days, aiming to speed up contracts.

Nuclear Power Milestone (Slovakia): Slovenské elektrárne has started fuel loading for Mochovce unit 4, with the regulator’s operating licence granted and active commissioning steps now under way—aiming for staged power tests and a full-power demonstration run later this summer. Energy & Industry (Fuel): Orlen launched HVO100 low-emission diesel sales in Slovakia via a Bratislava pilot, testing demand before expanding across its network. Water Security (Nitra/Trnava): ZSVS introduced water-supply restrictions for nearly 30 towns and villages after reduced source capacity, warning of pressure drops or temporary interruptions unless reservoir levels are protected. Heatwave Impact (Central Europe): Hungary hit a new 42°C record, with water-use limits and work-from-home measures; the broader heatwave has also disrupted infrastructure and raised health risks across the region. Auto Manufacturing (Porsche): Reports say Porsche is weighing shifting Cayenne production from Bratislava to Leipzig, tied to German wage concessions as sales pressure mounts. Defense Industry (EU/Ukraine): The EU released the first €3.9bn defence instalment under the Ukraine Support Loan, targeting drone production and defence-industry capacity.

Nuclear Power Milestone (Slovakia): Mochovce’s fourth reactor block has started fuel loading after receiving an operating license, with commercial startup expected by end of summer—boosting Slovakia’s nuclear share to 77.5% and positioning the country as a net electricity exporter. Auto Manufacturing Reshuffle (Porsche/Volkswagen Slovakia): Porsche is weighing moving Cayenne production from Bratislava to Leipzig, with the reported plan tied to German wage concessions as the automaker cuts roles and faces weaker sales. Heatwave Disruption (Central Europe): Europe’s record late-June heatwave is now hitting the east, with Slovakia reporting a new 41°C record and Ukraine ordering emergency power cuts as temperatures strain grids and infrastructure. Energy Storage Push (EU): The EU has backed a tripartite energy storage deal targeting at least 20% more deployment than 2025, aiming for 45 GW by 2026–2028 to reduce gas exposure and better use renewables. Trade Pressure (EU–China): EU trade talks in Brussels underline growing concern over China’s rising exports and deindustrialisation fears, as the Commission signals tougher action to protect domestic industry. Restructuring Watch (himolla): Furniture maker himolla has filed for a court-supervised protective shield in Germany, citing demand softness and price pressure, while noting its Slovakia sites are not directly affected.

EU–China Trade Tensions: EU trade chief Maroš Šefčovič warned in Brussels that China’s exports keep rising while Europe’s market share in China shrinks, pushing deindustrialisation fears and setting up tougher EU action. Nuclear Power Milestone in Slovakia: Mochovce’s fourth block has received an operating licence, with fuel loading and startup under way; officials say Slovakia’s nuclear share could reach 77.5% and the country may become a net electricity exporter. Auto Manufacturing Watch: Porsche is reportedly weighing moving Cayenne production from Slovakia to Leipzig, tied to German wage concessions, as the group faces weaker sales and seeks better capacity use. Heatwave Disruption: Europe’s record-breaking heatwave hit Slovakia again, with Turna nad Bodvou reaching 41°C, while Ukraine ordered power cuts as the grid buckled under extreme temperatures. Energy Storage Push: The EU backed a tripartite deal to scale energy storage deployment to about 45 GW by 2026–2028, aiming to cut gas exposure and boost renewables. Defense & Industry: Romania signed a major Rafael SPYDER air-defence deal worth about €2bn, with deliveries starting within 36 months and local industrial cooperation planned.

Nuclear Power Milestone: Mochovce’s fourth block has received an operating license, with fuel loading and startup under way—Slovakia expects nuclear to cover 77.5% of electricity and move it into net exporting. Industrial Safety & Supply Chains: Jaguar Land Rover launched a U.S. recall/stop-sale for 250,857 vehicles over a driver airbag connector corrosion issue; affected models include Defender and Discovery built in Nitra. Energy Transition: The EU signed off on a tripartite energy storage deal targeting at least 45 GW deployed by 2026-2028, aiming to cut gas exposure and boost renewables use. Manufacturing Watch: Reports say Porsche is considering shifting Cayenne production from Slovakia to Leipzig, tied to cost and wage negotiations. Weather & Operations Risk: A record-breaking heatwave pushed Slovakia to 41C in Turna nad Bodvou and forced Ukraine to order power cuts; red heat warnings spread across the region. Cybersecurity: ESET says Gamaredon expanded spear-phishing against Ukrainian targets, using malware delivery tactics and persistence methods. Defense & Policy: NATO parliamentary leaders urged stronger defense cooperation and unity, while Slovak PM Fico rejected NATO plans for arms-funding loans for Ukraine.

Heatwave Impact: Europe’s record-breaking heatwave is still spreading east, with WHO reporting over 1,300 excess deaths since 21 June and Spain alone reaching 327 deaths; extreme temperatures are also disrupting transport, tourism and power systems. Slovak Energy & Industry Outlook: Slovakia’s Vision 2040, drafted under the Slovak Academy of Sciences, flags demographic and public-finance pressure but points to strengths in electricity generation, mainly nuclear, while stressing the need to modernize heating and transport and upgrade parts of the industrial base. Auto Manufacturing Pressure: Volkswagen may protect jobs in Germany by shifting production of China-developed models to German plants to stabilize capacity and employment, as the group faces demand weakness and tariff pressure; Porsche is also reported considering moving Cayenne production from Slovakia to Leipzig. Defense & Ukraine Funding: Slovak PM Robert Fico rejects NATO plans for large-scale weapons funding for Ukraine, saying Bratislava will avoid any mandate for further military loans or payments at the Ankara summit. Agriculture Tech Support: Moldova’s BERRIES project backs berry growers with weather stations and sustainable practices to improve irrigation efficiency and resilience under harsher climate conditions. Regional Security Command: Latvia and Estonia will move under NATO’s 1st German/Netherlands Corps from July 1 as the alliance reshapes command on its eastern flank.

Energy & Industry Strategy: Slovakia’s Vision 2040, overseen by the Slovak Academy of Sciences, flags demographic decline and public finances as major risks, while pointing to the country’s relatively low-carbon electricity mix and nuclear-led power generation—plus the need to modernize heating and transport and keep upgrading industrial investment. Auto Manufacturing Pressure: Volkswagen’s Lower Saxony premier says jobs in Germany could be protected if the group builds in Germany models it currently develops for China, aiming to stabilize plant capacity and employment as demand shifts and competition bites. Slovakia in the NATO Budget Fight: PM Robert Fico says Bratislava will avoid any mandate at the NATO summit in Ankara that would commit Slovakia to military loans or payments for Ukraine, warning escalation risks. Logistics Expansion: Rohlig SUUS Logistics is pushing further across CEECA, backing a roughly €30m investment programme with support from Polish development funds, including activity in Slovakia. Heatwave Disruption: Europe’s record-breaking heat is already hitting infrastructure and health, with WHO reporting over 1,300 excess deaths since 21 June; Slovakia also saw its warmest night on record, raising pressure on power and water systems. Water & Agriculture Resilience: A Moldova project supported by SlovakAid backs berry growers with weather stations and sustainable practices to cope with climate stress—an approach that resonates with regional farming needs.

Heatwave and infrastructure strain: Europe’s record-breaking heatwave is spreading east, with Slovakia among countries issuing top-level alerts as temperatures stay dangerously high overnight; Spain’s death toll linked to the heat has risen to 327, while Germany has logged its highest readings in years and power demand is stressing grids and transport. Energy and water pressure: Drought fears are growing as major rivers drop fast, including Italy’s Po River, raising risks for farming and water supply. CEE industrial expansion: Rohlig SUUS Logistics is pushing further into Central and Eastern Europe and Central Asia, backing a ~€30m investment programme with support from Poland’s development institutions. Auto manufacturing reshuffle: Porsche is reported to plan shifting Cayenne production from Bratislava to Leipzig, with the move tied to worker pay concessions to close cost gaps. Food and drink investment: Maspex is buying 80% of Ukraine’s Karpatski Mineralni Vody, aiming to start local production in Lviv province in August. Slovakia and NATO stance: Prime Minister Robert Fico says Slovakia will not pledge aid to Ukraine at the NATO summit, seeking to avoid any mandate for further loans or contributions.