AGP Executive Report

Nuclear Power Politics in Slovakia: Prime Minister Robert Fico says the state must settle ownership of JESS in September so Slovakia can move ahead with a new unit at Jaslovské Bohunice, while ČEZ rejects corruption speculation over the €189m valuation of its 49% stake and says the process was transparent and confirmed by Slovakia’s Finance Ministry. Fiscal Pressure: Slovakia’s Council for Budget Responsibility warns fiscal space is exhausted as debt climbs above 60% of GDP, with a risk of reaching around 75% by the end of the decade if no course correction is made. Energy & Renewables Shift: Eurostat data shows solar overtook hydropower in the EU electricity mix for the first time in 2025, highlighting how fast solar growth is reshaping generation. Water Stress Hits Industry: Drought is pushing European rivers and lakes to critical lows; Lake Zurich hit a record low, and the wider impact is already disrupting industrial transport, irrigation and electricity generation. Agriculture Under Strain: Slovakia’s agriculture minister will brief the government on drought damage and low milk prices, with fodder crops like maize for silage flagged as the biggest problem for livestock producers. EU Digital Enforcement: The EU’s e-Evidence rules now let investigators in member states demand digital data directly from tech firms with fast deadlines, changing how cross-border cases are handled. Czech Grid Storage: A 57 MW/120 MWh BESS in Czechia has gone online, aiming to support grid stability and ancillary services—another sign of storage moving from pilot to infrastructure.

Energy Storage & Grid Stability: Czech holding Suas Group and Slovak EIF have commissioned a 57 MW / 120 MWh BESS near Lipnice nad Sázavou, now Czechia’s largest operational battery system, aimed at balancing the grid, providing ancillary services to ČEPS and supporting day-ahead/intraday trading. Nuclear Power Governance: ČEZ has rejected corruption speculation tied to the planned buyout of its 49% stake in Slovakia’s JESS, as Prime Minister Robert Fico pushes for ownership arrangements to be settled in September and says the Economy Ministry should not derail the strategic nuclear project. Public Finance Pressure: Slovakia’s Budget Responsibility Council warns fiscal space is exhausted as debt climbs above 60% of GDP, with debt potentially reaching 75% by decade-end without action. Labour Market Strain: A study highlights workforce contraction across Central Europe, with Slovakia among the countries seeing employment decline, reflecting ageing and migration pressures. Rare Earths R&D: European Resources Ltd reports improved ANSTO Minerals test results for its Korsnas REE project in Finland, lifting combined magnet rare earth extraction to 92% after calcite removal. Digital Justice in the EU: The EU’s e-Evidence rules now let investigators request certain digital data directly from tech firms across member states with much faster deadlines. Tourism Demand in Eastern EU: Seven countries including Slovakia ask the European Commission for targeted support to boost connectivity and resilience in eastern border tourism regions.

Slovak Fiscal Watch: Slovakia’s fiscal space is effectively exhausted as public debt climbs above 60% of GDP, with the Budget Responsibility Council warning it could reach ~75% by the end of the decade—raising the risk of harsher consolidation and higher borrowing costs in the next shock. Nuclear Power Governance: Prime Minister Robert Fico says ownership of JESS must be settled in September, with the Government Office taking over the process from the Economy Ministry to secure full state control for a planned new unit at Jaslovské Bohunice. Sanctions & Industry Compliance: BELPOL reports sanctions-evasion links at Belarus’s Planar plant, including Slovak machine-vision cameras and French gearboxes. Energy & Transport Pressure: Europe’s drought is worsening, with record-low Danube levels disrupting freight and stressing power and agriculture supply chains. EU Digital Justice: The e-Evidence regulation is now fully applicable, letting investigators in EU states demand digital data directly from major tech firms on faster deadlines. Automotive Tech: Volkswagen EV drivers in Europe gain Digital Key access via Samsung Wallet for hands-free entry and phone-based locking/unlocking. Maritime Risk for Food Exports: With no ships entering Greater Odesa ports in late July and only limited recovery since, Ukraine’s grain export logistics remain under pressure. Workforce Reality: Slovakia is increasingly reliant on foreign workers—about 150,000—mostly via agencies and temporary roles, with many in automotive.

Slovak Fiscal Watch: Slovakia’s Budgetary Responsibility Council warns fiscal space is exhausted as public debt tops 60% of GDP, with debt potentially rising toward 75% this decade—leaving less room for shocks and raising the risk of painful consolidation. Nuclear Power Governance: Prime Minister Robert Fico says ownership arrangements in Slovak Nuclear Energy Company (JESS) must be settled in September, with the state planning to buy CEZ’s shares to gain full control over the Jaslovské Bohunice new nuclear project. Energy & Industry Risk: Rystad Energy reports Russia’s crude production is entering “a new era of constraint,” cutting its 2026 forecast to 8.95m bpd as sanctions and Ukrainian strikes disrupt refineries and export terminals. EU Climate Policy: The European Commission’s ETS revision is set to intensify the fight between climate ambition and industrial competitiveness, with heavy industry facing new allowance rules. Drought Hits Supply Chains: Europe’s worsening drought is shrinking rivers and straining transport, agriculture and energy—Slovakia is among the central-western areas flagged as “stable and critical” then deteriorating. Rail & Manufacturing: Škoda Group’s fast-delivered electric multiple units enter service in Bulgaria, while Slovakia-linked engineering continues with STV Machinery preparing serial production of new BMP-1 armored hulls. Workforce & Migration: Slovakia relies on foreign labour as the local market tightens, with many workers in automotive and auxiliary roles—while separate visa pauses abroad could ripple into agriculture and regional staffing. Security & Critical Infrastructure: A Europe-wide drone threat is escalating, with airports and infrastructure increasingly targeted by both small and larger military drones.

Fiscal Pressure: Slovakia’s Budgetary Responsibility Council warns rising public debt has drained fiscal space, with debt above 60% of GDP and a risk of 75% by decade-end, meaning future crises could force painful consolidation and threaten financing flexibility. Energy & Industry: Drought and record-low river levels are increasingly disrupting transport, agriculture and power generation across central Europe, with Slovakia named among the hardest-hit countries. Nuclear Watch: Record-low Danube conditions are already forcing output cuts and shutdowns elsewhere in the region, underlining the cooling-water risk for nuclear operators. Nuclear Project Governance: Premier Robert Fico says ownership arrangements in the Slovak Nuclear Energy Company (JESS) must be settled in September as the state prepares to buy CEZ’s stake to secure control for a new Jaslovské Bohunice facility. Rail & Manufacturing: Škoda Group’s electric multiple units enter service in Bulgaria after a fast delivery, while Slovakia’s STV Machinery prepares serial production of new BMP-1 hulls after building prototypes. Automation & Supply Chains: Arrow Electronics expands IBM distribution coverage to include Slovakia, boosting access to infrastructure, automation and data solutions for local channel partners. Workforce: Slovakia is increasingly reliant on foreign labour, with around half of residence-permit holders working in automotive and companies citing a locally exhausted labour market. Security & Tech: A new report highlights WindRelay Android malware that can turn phones into tools for NFC payment fraud, raising fresh cybersecurity concerns for consumers and businesses.

Drought & Industry Shock: Europe’s worsening drought is hitting Slovakia and the wider region hard, with record-low river levels restricting freight traffic and threatening agriculture and energy output; satellite and research findings point to shrinking waterways and drying soils across central-western Europe, including Slovakia. Energy Security: The Danube’s low levels are now a direct risk to nuclear power in Central Europe, with Hungary forced to slash output at Paks and Romania shutting down its last working reactor as cooling water becomes scarce. Slovak Defence Manufacturing: STV Machinery in Dubnica nad Váhom is moving toward serial production of new BMP-1 armored hulls, after building and testing prototypes, with the first batches planned for 2026–2027. Slovak Economy Watch: Slovakia’s GDP growth slowed to 0.7% in Q2 2026, with analysts citing a stagnant industrial sector under weak external conditions. Cybercrime & Payments: New Android malware campaigns (WindRelay) are turning phones into fake payment terminals, enabling real-time card fraud. Trade Tensions: Poland is refusing to lift its ban on Ukrainian grain, keeping pressure on regional agri-food supply chains. Automation Deal: Bratislava-based SIPRON is partnering with Zimbabwe’s HIT to expand industrial automation, machine design and engineering services.

Drought Pressure on Industry: New satellite and river-level reporting shows Europe’s major waterways are shrinking fast, with the Danube, Rhine and other routes hitting record-low conditions that are already disrupting freight, irrigation and power generation—an issue that directly affects Slovakia’s supply chains and energy planning. Slovak Defence Manufacturing: STV Machinery in Dubnica nad Váhom is moving toward serial production of new BMP-1 armored hulls, after building two prototypes and digitizing designs for modern materials and configurable powerplant options. Slovakia Economy Watch: Slovakia’s GDP growth slowed to 0.7% in Q2, with analysts pointing to a stagnant industrial sector under weak external conditions and competitiveness pressure. Wind Energy Policy Shift: Slovakia’s environment ministry plans to cut wind development zones from eight to one (split into two areas in the east), with municipal consent now central to approvals. Cybercrime Alert: A new Android banking scam, WindRelay, uses remote control and NFC relaying to drain cards in real time, highlighting ongoing risks for payments and logistics-linked fraud. Industrial Automation Deal: Bratislava-based SIPRON signed a cooperation pact with Zimbabwe’s HIT to expand industrial automation, machine design and production-line engineering training.

Drought & Energy Risk: Record-low Danube and other European rivers are exposing climate pressure on power generation, with Hungary forced to cut output at Paks and Romania shutting its last reactor as cooling water becomes harder to secure. Slovak Economy Watch: Slovakia’s GDP growth slowed to 0.7% in Q2, with analysts pointing to a stagnant industrial sector under weak external conditions and falling competitiveness. Wind Power Policy: Slovakia is tightening its wind rollout by removing most proposed development zones, leaving only one eastern area split into two zones, with local consent now central to approvals. Cybercrime in Payments: A new Android malware campaign, WindRelay, tricks victims into using their own phones to relay NFC card data to fraudsters in real time. Industrial Automation Link: Bratislava-based SIPRON signed a cooperation deal with Zimbabwe’s Harare Institute of Technology to support industrial automation, machine design and production-line training. Mining & Trade: Ukraine’s iron ore exports fell 27% year-on-year in the first seven months, with shipments to Slovakia and Poland also down sharply. Agri-Trade Tensions: Poland says it will not lift its ban on Ukrainian grain, arguing imports should go to third-country markets, not stay in the EU.

Energy & Climate Risk: Record-low Danube river levels are forcing Hungary to slash output at Paks and pushing Romania to shut down its last working reactor, reigniting the question of how Central Europe will cool nuclear plants as drought intensifies. Slovak Wind Policy: Slovakia is cutting back wind energy development zones, removing seven of eight proposed areas and leaving only one eastern region split into two zones, with local consent now central to approvals. Industrial Performance: Slovakia’s GDP growth slowed to 0.7% in Q2 2026, with analysts pointing to a stagnant industrial sector under external uncertainty and weaker competitiveness. Cybercrime & Payments: A new Android malware campaign, WindRelay, can turn phones into fake NFC payment terminals and relay card data in real time, enabling remote fraud after victims install a malicious app. Security & Supply Chains: Poland says it foiled a Russian plot targeting Ukrainian blogger Kyivstoner, with alleged drone logistics routed via Slovakia, Poland and Belarus. Trade & Food: Black Sea blockade risks are again threatening global food security as Ukraine and Russia trade blame over grain flows.

Energy & Climate Risk: Record-low Danube levels are forcing nuclear operators to cut output and even shut reactors, with Hungary’s Paks reportedly down to about 10% earlier this month and Romania shutting its last working unit—raising urgent questions about cooling water resilience as drought worsens. Renewables Policy: Slovakia is tightening wind power rules, removing most proposed development zones and leaving only one eastern area split into two, with municipalities’ consent now central to approvals. Industrial Automation: Bratislava-based SIPRON is partnering with Zimbabwe’s Harare Institute of Technology to boost industrial automation, machine design, robotics and production-line engineering—aimed at modernising local manufacturing. Mining & Trade: Ukraine’s iron ore exports fell 27% year-on-year in the first seven months, with shipments to key buyers including Slovakia also down. Cybercrime & Payments: New Android malware (WindRelay) can turn phones into remote contactless card readers by relaying NFC data in real time, enabling fraudsters to drain accounts quickly. Security: Polish services arrested a suspected Russian hitman allegedly targeting Ukrainian rapper Kyivstoner, tied to alleged drone logistics routed via Slovakia. Tax & Compliance: Sales tax rates in the US hit a 10-year high, with more frequent local changes pushing businesses to treat tax updates as strategic, not routine.

Energy & Climate Risk: Record-low Danube levels are forcing nuclear operators to cut output or shut down: Hungary’s Paks has been pushed to around 10–25% capacity, while Romania’s Cernavodă shut its last working reactor as cooling water shortages bite. Slovakia Energy Policy: Slovakia plans to cut wind energy zones from eight to one (split into two areas in eastern Slovakia), with new rules requiring local authority consent. Industrial Automation & Training: Bratislava-based SIPRON is partnering with Zimbabwe’s Harare Institute of Technology to expand industrial automation, robotics, machine design and production-line engineering services. Cybercrime & Payments: New Android malware “WindRelay” can turn phones into remote card readers via NFC, relaying contactless payment data in real time alongside a remote access tool. Trade & Sanctions Pressure: Rystad Energy says Russia’s crude output outlook is worsening under sanctions and disruptions, revising 2026 averages to 8.95m bpd. Tax & Compliance: US sales tax rates hit a 10-year high as local governments accelerate rate changes and broaden what’s taxable—raising the stakes for businesses. Local Investigation: Trnava police opened a case into a former MP over alleged attempted child pornography and endangerment of minors. Health Tech: Slovak biomedical engineer Miroslav Gašpárek is involved in mRNA-based cancer treatments being tested for faster, personalized immune targeting.

Energy Security & Nuclear Cooling: Record-low Danube levels are forcing Romania to shut its last operating reactor and cutting Hungary’s Paks output, reigniting debate on how nuclear plants can cool as drought and heat intensify. Slovakia Energy Transition: Slovakia is making wind farm construction harder after the environment ministry rejected most proposed “acceleration zones,” leaving projects largely stalled and putting EU renewable funding at risk. Water & Industry Disruption: The wider Danube drought is disrupting shipping, tourism, agriculture irrigation and power supply across Central Europe, with emergency measures and knock-on effects for electricity generation. Cybercrime & Payments: New WindRelay malware turns Android phones into remote contactless card readers, letting fraudsters siphon live NFC data and drain accounts fast across Central and Eastern Europe. Trade & Food Flows: Poland is holding firm on its Ukrainian grain import ban despite EU pressure, while Ukraine’s grain exports face further strain as Odesa remains shut. Regional Energy Infrastructure: Transgaz is exploring an equity stake in the US LNG terminal developer Argent LNG to secure long-term LNG access via Romania toward Moldova/Ukraine and onward to Slovakia and the region. Slovakia Business & Funding: Slovakia will back 11 projects abroad with over €1.4m, targeting sustainable development and modern technologies through SlovakAid partnerships.

Energy Security Under Drought: Romania shut down its last operating nuclear reactor after the Danube’s water levels fell too low for cooling, following emergency measures like dredging and underwater explosions—another warning that extreme heat is now hitting baseload power across Central Europe. Slovakia Wind Policy Shock: Slovakia is making wind farm construction harder after the Environment Ministry rejected most proposed “acceleration zones,” leaving only one pilot area moving forward and putting renewable targets and EU funding at risk. Gas Corridor Stalls: A “Vertical Corridor” for LNG from Greece to Ukraine via pipelines remains largely “on paper,” with political and economic pushback—raising questions for Slovakia’s and the region’s supply diversification plans. Nuclear Fuel Investment Drag: Urenco CEO says EU uncertainty over banning Russian nuclear fuel is delaying uranium-enrichment investment in Europe, with capacity decisions complicated by the possibility Russia could return. Agriculture Relief Measures: Slovakia announced drought support for farmers, including earlier advance payments and temporary easing of some land and grazing rules. Logistics Deal: euShipments Group acquired Slovak fulfillment operator FHB Group, expanding CEE e-commerce logistics capacity. Cybercrime Alert: WindRelay malware turns Android phones into fake contactless payment terminals via NFC relay, enabling real-time card fraud after remote access is gained. EU Energy Mix: Eurostat reports EU coal generation hit a record low in 2025, underscoring the ongoing shift toward other power sources.

Nuclear Cooling Crisis: Record-low Danube levels are forcing Hungary’s Paks plant to cut output to about a quarter and pushing Romania to shut its last working reactor, spotlighting how drought is turning river-dependent nuclear power into a climate risk. US–Russia Energy Tariffs: A new US sanctions bill could let Washington impose up to 100% tariffs on countries buying large volumes of Russian oil and gas; Slovakia is named among the likely top buyers, while talks are said to be “reassuring.” Drought Relief for Slovak Farmers: Slovakia’s agriculture ministry announced eight measures, including earlier advance payments from Sept. 15 and temporary easing of grazing/grassland rules, to help farms hit by the dry spell. Gas Infrastructure Push: Transgaz plans to seek a shareholder role in US LNG developer Argent LNG via an MoU, aiming to secure long-term US LNG access and route supply through Romania toward Slovakia and neighbors. Logistics Deal: euShipments Group is acquiring Slovak fulfillment operator FHB Group, expanding CEE e-commerce logistics capacity. Cybercrime Watch: A new Android fraud setup pairs SpyNote with WindRelay to turn phones into fake contactless payment terminals, enabling fast card-present theft. Heatwave Impact on Industry: Europe’s extreme heat is straining transport, power generation and agriculture, with river levels and energy supplies under pressure.

Drought Relief for Farmers: Slovakia’s agriculture minister Richard Takáč announced eight measures to help farms hit by drought, including earlier advance payments (about €200m from Sept 15), €5m via the “green diesel” scheme for livestock, temporary easing of land and grazing rules, and no penalties for pasture livestock drops caused by drought. Japan–Slovakia Business Push: Parliament Speaker Richard Raši met Japan’s ambassador to discuss closer economic ties, highlighting 76 Japanese firms in Slovakia employing ~13,000 people, with focus on industrial modernisation, decarbonisation and innovation. Heatwave Hits Industry Logistics: Europe’s record heat and drought are disrupting river transport and agriculture; for Slovakia and the Danube region, low water levels are already affecting shipping, while drought pressure is also feeding into higher food and cereal prices. Cybercrime via Phones: A new Android fraud operation pairs SpyNote with WindRelay NFC relay malware, enabling card-present payment fraud in about 13 minutes after a bank-impersonation call. E-commerce Logistics Deal: euShipments Group acquired Slovak fulfillment operator FHB Group (100%), expanding its CEE network. Housing vs Vineyards in Bratislava: Bratislava rejected two new housing schemes on former vineyard land in Rača, reigniting the fight between development pressure and landscape protection.

Heat & Drought Disruptions: Europe’s historic heatwave is drying rivers and straining transport, power and agriculture, with the Danube hitting dangerously low levels and even exposing WWII wrecks and possible weapons. CEE Logistics Deal: euShipments Group (CEE eCommerce logistics) has acquired 100% of Slovak fulfillment operator FHB Group, integrating it into the group network while keeping the current management. Slovakia Housing Pressure: Bratislava rejected two housing projects on former vineyard land in Rača, highlighting the fight between new builds and landscape protection under the Little Carpathians. Defence Industry (Ammunition): CSG and Dezamet signed an agreement worth over EUR 100 million for 155 mm artillery ammunition components, including pyrotechnic parts and fuze subassemblies. Energy Trade Reality Check: EU LNG data shows Russian LNG imports falling, but Belgium still took 100% of its LNG from Russia in July; Hungary and Slovakia remain major buyers. Industrial Output Signal: Slovakia’s industrial output rose 2.1% year-on-year in June, pointing to a rebound in manufacturing momentum. Waste & Recycling Expansion: Paprec is expanding across Central Europe by acquiring Brantner Green Solutions (80%), adding operations in Austria, Slovakia and the wider region.