AGP Executive Report

EU Budget Fight for Farmers: Seventeen EU countries, including Slovakia, urged the Irish EU presidency to protect farm and regional funding in the 2028–2034 budget, warning that cuts to Cohesion Policy and the CAP would weaken the bloc. Agriculture Under Pressure: Slovakia’s autumn crop harvest is hit by drought, with corn forecast at just 53% of last year and sugar beet down 62%, while potatoes are the exception with record yields. Renewables Investment: Rezolv Energy energised the first phase of Romania’s VIFOR Wind Farm (192 MW of 461 MW), with Phase 2 due in 2027 and financing led by Erste Group, UniCredit and the EBRD. Logistics & Ports: Croatia’s Adriatic Gate Container Terminal at Rijeka reached 4 million TEUs since joining ICTSI in 2011, citing upgrades and rail/road links to Central Europe including Slovakia. Manufacturing & EV Supply Chains: Volkswagen and Gotion agreed to set up three battery joint ventures in Spain, Slovakia and Morocco to expand LFP battery production. Regional Diplomacy: Slovakia’s PM Robert Fico is set to address a Serbian Progressive Party rally in Belgrade, underscoring ongoing V4 ties with the region.

Renewables & Finance: Rezolv Energy has energised the 192 MW first phase of Romania’s 461 MW VIFOR Wind Farm in Buzău County, with Phase 2 due in 2027; the project uses 30 Vestas EnVentus V162 turbines and secured up to EUR 291m in financing led by Erste Group, UniCredit and the EBRD. Agriculture Pressure: Slovakia’s autumn crop outlook is worsening as drought cuts corn output to about 53% of last year and sugar beet to around 62%, while potatoes are forecast to reach a record yield. EU Budget Fight for Industry & Farms: Seventeen EU countries, including Slovakia, are pushing to protect cohesion and the Common Agricultural Policy from cuts in the 2028–2034 budget, setting up a direct clash with “frugal” states led by Germany. EV Supply Chain in Focus: Volkswagen’s PowerCo and Gotion plan three battery joint ventures in Spain, Slovakia and Morocco to expand LFP production, with the Spain site transferred into a JV where PowerCo holds 51%. Logistics Milestone: Adriatic Gate Container Terminal in Rijeka (ICTSI) has reached 4 million TEUs since 2011, highlighting stronger rail/road links to inland markets including Slovakia.

EU Budget Standoff: Seventeen EU countries, including Slovakia, signed a letter led by Italy and Romania urging the bloc to protect nearly €900 billion for agriculture and cohesion in the 2028–2034 budget, warning that cuts would weaken the EU’s public support and competitiveness. Auto & Batteries: Volkswagen’s battery unit PowerCo and China’s Gotion will set up three battery joint ventures in Spain, Slovakia and Morocco, with the Slovakia site aimed at scaling LFP production for EVs. Port & Logistics: Adriatic Gate Container Terminal at Rijeka hit 4 million TEUs since joining ICTSI in 2011, citing rail and road links that reach inland markets including Slovakia. Energy & Industry: Vertiv expanded power and cooling manufacturing capacity in Slovakia to meet rising AI infrastructure demand. EU Funding Watch: All member states submitted final Recovery and Resilience Facility payment requests, covering the full €360bn grants and €213bn loans under NextGenerationEU. Security & Sanctions: Ukraine said it will respond to the EU delisting of Russian oligarchs Usmanov and Fridman by preparing restrictions on 20-plus others.

Nuclear Power Move: Slovakia’s government approved the state purchase of ČEZ’s 49% stake in JESS for €189.4m, paving the way for preparations for a new Jaslovské Bohunice nuclear plant (up to 1,200 MW, targeted for 2040). Industrial Investment: Vertiv is expanding its Nové Mesto nad Váhom campus, adding about 22,000 m² of manufacturing space for power, switchgear and thermal management for AI and high-performance computing demand. Port & Logistics: Croatia’s Adriatic Gate Container Terminal in Rijeka hit 4 million TEU, boosted by a €35m upgrade adding super post-Panamax cranes and hybrid RTGs—strengthening rail/road links to Central Europe, including Slovakia. EU Policy Pressure: The European Commission issued reasoned opinions over incomplete energy-efficiency and building-renovation rule transposition, keeping infringement cases active for several countries. Competition Watch: Czech authorities fined cable makers a total of CZK 1.94bn for a cartel on “metal surcharge” pricing for copper and aluminium telecom/power cables. Defense Industry: Latvia signed a deal to buy Czech Morana 155mm wheeled howitzers and rocket artillery with production and assembly gradually shifting toward Latvia, using shared Tatra truck platforms.

Nuclear Power Deal: Slovakia’s government approved JAVYS buying ČEZ’s 49% stake in JESS for €189.4m, clearing the way for preparations for a new Jaslovské Bohunice nuclear plant (up to 1,200 MW, target completion in 2040). EU Recovery Funding: Member states submitted final NextGenerationEU Recovery and Resilience Facility payment requests, covering the full €360bn grants and €213bn loans, as the implementation period ended 31 August. Steel Industry: Global steel producers agreed a framework to tackle excess capacity, aiming to restore a level playing field and protect long-term viability. EU Enforcement: The European Commission published key infringement decisions and closed 87 cases after compliance steps, including environment-related actions. Competition Watchdog: Czech authorities imposed record fines totaling CZK 1.94bn on cable makers for a cartel on “metal surcharge” pricing. Automotive Supply Chain: Hyundai WIA started mass production at its new Slovak plant in Martin, expanding output of CV joints and thermal management modules for European customers. AI in Emergency Care: Powerful Medical and corpuls will integrate Queen of Hearts AI ECG analysis into corpuls prehospital workflows across the EU, Switzerland and the UK. Defense Procurement: Latvia signed a deal to buy Czech-made Morana 155mm wheeled howitzers and rocket artillery systems, with production gradually moving to Latvia. Macroeconomy: Slovakia’s central bank raised its 2026 GDP growth forecast to 0.8% and cut inflation to 3.6%.

Auto Supply Chain Push: Hyundai WIA has started full-scale operations at its new Martin, Žilina Region plant, ramping production of CV joints and thermal management modules for European automakers. Battery Investment in Slovakia: Volkswagen and Gotion plan a €3.22bn battery and materials push across Spain, Slovakia (Surany) and Morocco, with Slovakia set to produce 8.4 GWh of cells annually. Competition Law: Slovakia’s Office for the Protection of Competition imposed nearly CZK 2bn in fines on cable makers over a cartel on “metal surcharge” pricing for copper and aluminium telecom/power cables. Macroeconomic Outlook: Slovakia’s central bank (NBS) lifted its GDP growth forecast to 0.8% for 2026 and cut inflation to 3.6%, citing resilient labour markets and improving exports. Energy Efficiency Rules: The EU is pressing Italy (and others) over delays in fully transposing energy efficiency and building renovation requirements, with infringement proceedings moving forward. Local Politics & Stability: Robert Fico signals readiness to settle the environment minister appointment with coalition partner SNS, as snap elections talk grows.

Energy & Industry Policy: Volkswagen and Gotion plan €3.22bn in battery and materials projects across Europe and North Africa, including a new cell plant in Slovakia (Surany, 8.4GWh) and LFP cathode production in Morocco, aiming to build a regional EV supply chain. Local Politics & Stability: Prime Minister Robert Fico says he’s ready to work with SNS to finalise the environment minister appointment after parliament ousted Tomáš Taraba, keeping coalition stability and budget approval in focus. Macroeconomy: Slovakia’s Finance Ministry forecasts 0.8% GDP growth in 2026 and 1.8% in 2027, citing improving consumption and exports plus ramp-up at the Volvo plant, with inflation easing to 2.9% in 2027. Defense & Manufacturing: Slovakia and Azerbaijan are deepening defense cooperation after talks at ADEX 2026, including plans to present a joint automated mortar system, while Slovakia’s defense industry also supports broader UAV, electronic warfare and cybersecurity work. EU Sanctions Pressure: Germany’s foreign minister urged Slovakia to back stronger EU measures against Russia, including phasing out Russian energy supplies, as negotiations on peace and grain logistics remain contentious. Transport & Charging: Siemens eMobility and OMV started high-power charging for electric trucks and cars along Austria’s Brenner corridor, expanding heavy-duty charging capacity across Austria, Hungary, Slovakia and Romania. Fuel Costs: From Oct 1, Slovak fuel stations face a capped retail margin of 10 cents per litre to curb price pressure.

Slovak Economy Outlook: Slovakia’s Finance Ministry forecasts GDP growth of 0.8% in 2026 and 1.8% in 2027, with inflation easing to 2.9% next year and a production ramp-up at the Volvo plant boosting activity. Fuel & Transport Costs: From 1 October, Slovak fuel stations face a capped retail margin of 10 cents per litre, while second-class train fares are cut by half for 30 days to ease pressure on household budgets. EU–Russia Pressure: Germany and Slovakia back stronger EU sanctions to push Russia toward a ceasefire and “just peace,” with talks also touching energy and competitiveness. Foreign Policy Talks: German FM Wadephul urged Slovakia to support EU sanctions more fully and demanded Russia show real willingness to negotiate. Battery Industry Push: Volkswagen and Gotion plan major LFP battery ventures in Europe (Valencia, Surany) and Morocco, with cell output split between EV and BESS based on demand. Aviation & Logistics Demand: European airport passenger traffic rose 3.9% in July and 3.1% in August, with Slovakia posting the strongest national jump in the EU+ group. Security & Industry Link: EU moves to formalize responses to “below Article 5” hybrid threats, including sabotage and cyberattacks, as part of a new counter-hybrid protocol. Slovak Politics: Parliament voted to dismiss Environment Minister Tomáš Taraba, raising uncertainty over coalition stability.

EU Sanctions Pressure: Germany’s foreign minister Johann Wadephul urged Slovakia to back tougher EU measures on Russia, stressing “more pressure” and warning that member states can’t block sanctions despite Slovakia’s energy dependence on Russian supplies. Bilateral Diplomacy: Slovakia’s FM Juraj Blanár met Wadephul in Bratislava to discuss migration, energy, competitiveness and EU enlargement, while Germany and Slovakia issued a joint declaration calling for stronger economic sanctions to push Russia toward a ceasefire. Azerbaijan Defence Ties: Deputy PM/Defence Minister Robert Kaliňák visited Baku for Constitution Day and ADEX-2026, where Slovakia will present a joint automated mortar system with Azerbaijan—starting with Slovak-supplied parts and moving toward production in Azerbaijan. Battery Industrial Push: Volkswagen, PowerCo and Gotion agreed three LFP battery joint ventures across Europe and North Africa, including a Slovak cell plant in Šurany, aiming to build a supply chain outside China. Data-Centre Capacity in Slovakia: Vertiv expanded its Nove Mesto nad Váhom campus to meet rising AI and cloud infrastructure demand across EMEA. Fuel Retail Regulation: From Oct 1, Slovak fuel stations face a capped retail margin of 10 cents per litre to curb price pressure. Food Logistics Support: Interreg COOL-BORDER launched in Central Europe to cut packaging and cold-chain barriers for chilled and frozen food SMEs, with hubs planned across six countries including Slovakia.

Battery Supply Chain in Focus: Volkswagen, PowerCo and China’s Gotion have agreed a €3.22bn plan for three battery joint ventures in Spain (Valencia), Slovakia (Šurany) and Morocco (Kenitra), targeting lithium-iron-phosphate (LFP) cells and cathode materials to build a Europe-based EV supply chain outside China. Slovakia’s Industrial Push: Vertiv is expanding its Nové Mesto nad Váhom campus with about 22,000 m² of new manufacturing space for power, switchgear and thermal management, aimed at rising AI and data-centre demand across Europe, the Middle East and Africa. Water Infrastructure Pressure: Slovakia’s Supreme Audit Office warns of an €8–10bn renewal backlog for water infrastructure, saying current price regulation and investment levels are not keeping up. Food Logistics for SMEs: COOL-BORDER (Interreg CENTRAL EUROPE) starts its first phase to cut cross-border barriers for chilled and frozen food SMEs, including packaging, cold-chain logistics, documentation and waste reduction, with hubs across six Central European countries including Slovakia. Security and Industry: Slovak-linked GRU suspects were tied to thwarted arson plans near Prešov, while Estonia blames Russia for an arson attack on defence supplier Milrem Robotics in Tallinn.

Water Infrastructure: Slovakia’s Supreme Audit Office warns of an €8–10 bn backlog to renew water infrastructure, saying price regulation fails to secure enough funding while utilities don’t invest earmarked money. Security & Industry: Police charged four people over an alleged arson plot targeting a manufacturing plant in Haniska near Prešov, as investigations continue. Cross-border Threats: A Munich arson case linked to GRU is tied to alleged operations from Slovakia, with a thwarted attack on the Skyeton drone factory near Prešov also reported. EV Batteries in Slovakia: Volkswagen and Gotion plan major battery investment, including a joint venture in Šurany, Slovakia, as VW sells a 5.3% stake in Gotion and accelerates a European LFP supply chain. Data Centres & Manufacturing: Vertiv is expanding its Nové Mesto nad Váhom campus by 22,000 sqm over two years, boosting power and cooling equipment capacity and creating hundreds of jobs. EU Energy Rules: The European Commission opened infringement steps against 18 states over energy-sharing and consumer rules, with Slovakia not included in this round. Defence Industry: Belarus will take part in Azerbaijan’s ADEX-2026 with a national pavilion and around 150 defence and dual-use items.

Data-Center Manufacturing Boost: Vertiv is expanding its Nové Mesto nad Váhom campus in Slovakia, adding 22,000 sqm over two years to ramp output of power, switchgear and thermal management for AI and high-performance computing, with “hundreds” of new jobs planned for 2027–2029. EU Pay Rules Friction: A delayed, patchwork rollout of the EU pay transparency directive is creating compliance headaches for multinational employers, with Slovakia among the few that met the June 7, 2026 deadline. Energy Market Compliance: The European Commission has opened infringement letters to 18 EU states over energy-sharing and free-supplier rules, while Slovakia is not included in this first wave. Gas Supply Talks: Slovakia and Azerbaijan are discussing a potential long-term gas deal, but the key question remains how Azerbaijani gas would physically reach Slovakia. Fuel Costs Pressure in Slovakia: Slovak fuel prices hit historic highs again, with petrol and diesel rising for a fifth week, prompting calls to cap retailer margins and push for EU action. Bioplastics R&D: Slovak researchers at BioX Technologies developed an algae-based biodegradable bioplastic aimed at reducing reliance on fossil-fuel plastics. EU Defence Industrial Push: EU defence ministers formally identified five joint defence projects of common interest, including drones/counter-drones and eastern-flank surveillance, with major industrial coalitions and starter funding.

Fuel & Energy Pressure in Slovakia: Slovakia’s Statistical Office reports petrol at €1.853/l (+21.1% YoY) and diesel at €1.95/l (+33.7%), after five straight weeks of increases—prompting calls to cap retail margins and push for an EU emergency summit. EU Industrial Decarbonisation: The European Commission set terms for a €1bn Europe-wide auction to cut industrial process-heat emissions, with support for electrified, renewable and even nuclear-based solutions, opening to bidders in early December. Slovak Green Materials: Slovak researchers at BioX Technologies developed an algae-based biodegradable bioplastic aimed at replacing fossil-fuel plastics and designed to break down under the right conditions. Regional Supply Chains & Defence Links: Germany-linked investigations tie an arson attack near Rohde & Schwarz and Helsing in Munich to Russian military intelligence, with two Bulgarian suspects detained. V4+India Industrial & Tech Ties: Slovakia joined the first V4+India foreign ministers’ meeting, backing deeper cooperation across politics, trade, technology and defence. Food Manufacturing Push: Saudifood Show and Saudifood Manufacturing 2026 in Jeddah will bring 1,000+ exhibitors across sourcing, processing, packaging, automation and logistics. Aviation & Mobility: Embraer delivered the first C-390 Millennium to Uzbekistan, marking a new operator in Central Asia.

Defense & Security: German investigators link an arson attack near Munich offices of Rohde & Schwarz and Helsing to Russia’s GRU, after incendiaries were thrown on Sept. 3 and two Bulgarian suspects were later detained in a case tied to suspected sabotage across Europe. Industrial Decarbonisation: The European Commission set terms for a €1bn industrial heat auction (IF26) to fund process-heat decarbonisation, including electrified tech, renewables and even nuclear options, with bids opening in early December. Energy Costs in Slovakia: Slovakia’s fuel prices hit historic highs again, with petrol and diesel rising for a fifth straight week, prompting calls to cap retail margins and push for an EU emergency response. EU Regulation Pressure: Brussels opened infringement steps against multiple countries over industrial emissions rules and hydrogen/gas market transposition, adding more compliance pressure on industry. Materials Innovation: Slovak researchers developed a biodegradable algae-based bioplastic aimed at replacing fossil-based plastics and breaking down under proper conditions. Aerospace & Supply Chains: Embraer delivered the first C-390 Millennium transport aircraft to Uzbekistan, marking a new operator in Central Asia. Food Industry Trade: Saudifood Show and Saudifood Manufacturing 2026 open in Jeddah with 1,000+ exhibitors across sourcing, processing, packaging and logistics. Regional Cooperation: Slovakia-backed V4+India talks in New York focused on tech, defence and supply-chain ties, with V4 support for India’s UN Security Council bid.

Fuel Shock in Slovakia: Petrol and diesel prices hit historic highs again, rising for a fifth straight week to an average €1.853/l for petrol (+21.1% y/y) and €1.95/l for diesel (+33.7%), pushing Prime Minister Robert Fico to call for capped retail margins and an EU emergency summit. EU Industrial Decarbonisation Push: The European Commission set terms for a €1 billion industrial heat auction (IF26), using ETS revenues and offering fixed premiums for up to five years to cut process-heat emissions, with electrification, renewables and even nuclear tech in scope. EU Compliance Pressure: Brussels opened infringement procedures over industrial emissions and hydrogen/gas market rules, plus gaps in electricity market design and anti-money laundering transposition—Slovakia is among the countries facing letters of formal notice. Energy & Industry in the Region: MOL completed major repairs at its Danube refinery unit in Hungary, while Bulgargaz secured a 10-year licence to supply natural gas in Serbia, reinforcing cross-border trading. Lithium Battery Investment Watch: InoBat’s SEC filing confirms its 20% stake in GIB EnergyX Slovakia’s 20 GWh LFP cell plant in Šurany, targeting production in 2027. Logistics & Water Reality Check: Analysis warns Europe’s river transport is treated as secondary, even as drought cuts Rhine and Danube levels and strains trade and energy.

Fuel Shock in Slovakia: Slovakia’s Statistical Office says petrol and diesel hit historic highs, with petrol up to €1.853/l (+21.1% y/y) and diesel to €1.95/l (+33.7%), after five straight weeks of increases—prompting calls to cap fuel retailers’ margins and push for an EU emergency summit. EU Industrial Decarbonisation: The European Commission set terms for a €1bn industrial heat auction (IF26), using ETS revenues and a fixed premium for up to five years, targeting electrified, renewable and even nuclear-linked process heat options. EU Rules Pressure on Industry: Brussels opened infringement steps against 27 states over industrial emissions and hydrogen/gas market rules, plus gaps in electricity market design and anti-money laundering transposition. Slovakia Energy & Industry Watch: InoBat’s SEC filing highlights its role in a 20 GWh lithium battery JV in Šurany (production aimed for 2027), while MOL completed major repairs at its Danube refinery unit, setting up a gradual restart. Regional Geopolitics With Industrial Ripples: Hungary-Ukraine tensions flared again after the Carpathian Eight summit and an MOL–Naftogaz storage deal, underscoring how energy and logistics plans can quickly become political flashpoints.