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Last refreshed: 27/07/2026 17:42 · 75 articles added
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Economy

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Economy

Slovak Pharma Firm Imuna Pharm Returns to Profit Through Asset Sales, But Financial Troubles Persist

Imuna Pharm, eastern Slovakia's best-known pharmaceutical manufacturer, has recorded a profit for the first time in years — but the turnaround rests on shaky foundations. The company returned to the black last year largely by selling off property assets rather than through improved core business performance, while its revenues also increased. Despite the improved headline figures, Imuna Pharm's financial position remains precarious. The company still owes approximately half a million euros in unpaid social and health insurance contributions — known in Slovakia as odvody — which employers are legally required to pay on behalf of their workers. Falling behind on such payments is a significant indicator of ongoing financial strain. Imuna Pharm, based in the eastern Slovak town of Šarišské Michaľany, is one of the region's most prominent industrial employers and has a long history in pharmaceutical production. The company had been experiencing prolonged losses and declining revenues in recent years, making even a property-sale-driven recovery a notable development. However, analysts and observers are likely to view the profit with caution, as gains built on one-time asset disposals do not reflect a sustainable improvement in the underlying business.

Dennik N
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Economy

Slovakia's Pension Fund Second Pillar Should Not Become Cheap State Borrowing Tool, Official Warns

A senior Slovak official has cautioned against using the country's second-pillar pension system as a low-cost source of state financing, warning that doing so would undermine the purpose of private retirement savings. The second pillar refers to Slovakia's private pension savings scheme, in which workers voluntarily direct a portion of their contributions into individually managed accounts run by private pension asset management companies, known as DSS funds. The official, identified as Ovčarik, stressed that DSS companies must independently decide whether to redirect their clients' investments into state-backed projects, rather than being pressured or compelled to do so. The remark reflects growing debate in Slovakia over whether private pension funds should be channeled toward financing government infrastructure or other public investment priorities. The concern is significant because the second pillar holds substantial savings accumulated by hundreds of thousands of Slovak workers. Critics of any such redirection argue it would expose retirees' savings to political risk and lower returns, effectively subsidizing state borrowing at the expense of future pensioners. Defenders of the idea argue that domestic infrastructure investment could yield stable long-term returns. The issue touches on the balance between state financing needs and the fiduciary duty of pension managers to act in the best interests of their clients.

SME
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Economy

Union Insurance Company Confirms It Will Stay in Slovakia

Union, one of Slovakia's insurance companies, has confirmed it will remain operating in Slovakia, ending a period of uncertainty that prompted an unusually high volume of spontaneous reactions from customers. The company's leadership noted that in over 25 years in the insurance industry — including 13 years in Slovakia — they had not previously seen such a strong response from clients as in recent days, suggesting significant public concern had built up over the company's future in the country.

Aktuality
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Economy

Slovakia's Coalition Business Reform Set to Increase Red Tape and Legal Costs

Slovakia's ruling coalition parties have repeatedly pledged to support entrepreneurship, boost economic growth, and reduce bureaucratic burdens on businesses — but an upcoming regulatory change is set to do the opposite. Within less than four weeks, tens of thousands of Slovak entrepreneurs will face new administrative hurdles when establishing a company. Under the current system, founding a business requires only a memorandum of association with notarized signatures costing as little as €2, or fully electronic signing. The new rules will make the process more cumbersome and expensive, effectively directing hundreds of euros in additional fees toward legal professionals. Critics argue the change exposes a stark contradiction between the coalition's pro-business rhetoric and the practical legislative reality it is creating for small business owners and entrepreneurs across the country.

Dennik N
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Economy

Slovakia Moves Beyond Manufacturing Roots With AI and Life-Saving Software Development

Slovakia, long associated with automotive assembly plants and low-cost manufacturing, is increasingly positioning itself as a hub for advanced technology development, including artificial intelligence and software used in critical applications. Slovak-based teams are now developing AI systems and programming code deployed in life-critical contexts — a shift that signals a broader transformation of the country's economy away from its traditional image as a 'assembly workshop' for Western European industry. Slovakia built much of its post-communist economic success on attracting foreign manufacturers, particularly in the automotive sector, which still accounts for a significant share of national output. The emergence of a domestic technology sector capable of producing high-value software and AI solutions represents a meaningful diversification, with implications for long-term economic resilience and the country's ability to generate higher-wage, knowledge-based employment.

SME
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Economy

Experts Gather in Komárno to Discuss the Future of Social Economy

Experts and policymakers met in Komárno, a city in southern Slovakia, to discuss the future direction of social economy — an economic model that prioritizes social welfare and community benefit over pure profit. Slovak MEP Branislav Ondruš, a member of the European Parliament, told participants that there is broad consensus across Europe that the economy must serve people more effectively. The discussion reflected a growing debate within the European Union about reorienting economic policy toward greater social inclusion and sustainability, with social economy models — including cooperatives, social enterprises, and non-profit organizations — increasingly seen as tools for addressing inequality and unemployment.

TASR/Teraz
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Economy

Starting a Business in Slovakia to Become More Expensive from August

Entrepreneurs looking to register a new company in Slovakia should act quickly, as the cost of incorporation is set to rise from August. Registration fees will increase, and the process will come with a greater administrative burden. The changes mean that setting up a limited liability company or other business entities will require more paperwork and higher upfront costs than are currently required. Business owners and prospective entrepreneurs are being advised to complete company registrations before the new rules take effect to avoid the additional expense.

SME
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Economy

VÚB Bank HR Director: Work Should Be More Than Just a Source of Income

The world of work is undergoing significant change, according to the human resources director of VÚB Bank, one of Slovakia's largest commercial banks. In a recent interview, the HR director discussed evolving workplace expectations, emphasizing that employees increasingly seek meaning and fulfillment from their jobs beyond a monthly paycheck. The conversation reflects a broader shift in corporate culture across Central Europe, where companies are under growing pressure to offer flexible working arrangements, personal development opportunities, and a stronger sense of purpose to attract and retain talent in a competitive labor market.

SME
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Economy

Slovak Tax Authority Seizes Hundreds of Levi's Jeans Suspected to Be Counterfeit

Slovak customs and tax officials have seized hundreds of pairs of jeans bearing the Levi Strauss & Co. brand label after suspecting the goods may be counterfeit. Officers from the Financial Administration, Slovakia's tax and customs authority responsible for enforcing trade regulations and combating fraud, carried out inspections of both a retail store and associated warehouse premises during the operation. The seized jeans will undergo further examination to determine whether they are genuine products or fakes. Trafficking in counterfeit branded goods is a criminal offense in Slovakia and can result in significant fines and prosecution.

Korzár
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Economy

Slovak Influencers Promote High-Risk Trading Products While Hiding Losses Reality

Trading advertisements circulating on Slovak social media promise luxury lifestyles and easy profits, but fail to disclose that the majority of retail investors lose money on such platforms. Slovak influencers are actively promoting high-risk financial trading products — such as contracts for difference (CFDs) and forex trading — to their followers without adequately warning them of the significant financial risks involved. In the European Union, financial regulators require that risk warnings be included in advertisements for such products, as studies consistently show that between 70 and 80 percent of retail clients lose money when trading these instruments. Critics argue that influencer-driven promotion blurs the line between personal endorsement and paid financial advertising, leaving ordinary consumers poorly informed about the dangers of speculative investing.

SME
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Economy

Prešov Region Ordered to Repay €1.5 Million in EU Funds Misused for Tatra Mountain Road Restoration

The Prešov self-governing region in northeastern Slovakia must repay €1.5 million in European Union structural funds following irregularities connected to the restoration of the Cesta slobody (Freedom Road), a scenic route running through the High Tatras mountain range. The repayment obligation was revealed through a published installment agreement, indicating that authorities have arranged a structured schedule for returning the funds rather than paying the full amount at once. Cesta slobody is a historically and touristically significant road stretching across the Tatra mountains, and its restoration was financed in part through EU cohesion funds intended to support regional infrastructure development. EU funding rules require strict compliance with procurement and implementation procedures, and failure to meet these standards can trigger mandatory repayment demands from managing authorities. The Prešov region, one of Slovakia's eight self-governing administrative units, now faces the financial burden of returning the funds, which could strain its regional budget and affect other planned projects.

Korzár
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Economy

Slovakia's Minimum Wage Set to Jump to €972 Next Year After Talks Collapse

Slovakia's minimum wage is on course to rise sharply to €972 per month in 2026 after employers and trade unions failed to reach an agreement on the new rate by the legally required July 15 deadline. Under Slovak law, if employer representatives and unions cannot agree on a minimum wage figure, an automatic mechanism kicks in that sets the rate at 60 percent of the average national wage recorded two years prior. With no deal struck by the mid-July deadline, that formula will apply unless the two sides reach a compromise at a tripartite negotiating session — a formal three-way forum involving government, employers, and unions — scheduled for August. If August talks also end without agreement, the automatic increase will take effect from January 1. The automatic mechanism was introduced to prevent political deadlock from leaving the lowest-paid workers without a wage increase. However, employers have repeatedly expressed concern that such steep automatic rises increase labor costs and reduce competitiveness, particularly for smaller businesses and labor-intensive industries. Trade unions, by contrast, argue the increases are necessary to ensure a living wage for Slovakia's lowest earners. The upcoming August tripartite session will be the last opportunity for both sides to negotiate a different outcome before the government formally sets the new rate.

Dennik N
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Economy

Slovakia's Sugar Production Decline Less Severe Than Feared After Rival Factory Expands

Slovakia's domestic sugar production will fall far less than initially feared following the closure of one of the country's two sugar refineries, as the remaining producer moves to fill the gap through investment and expansion. When German conglomerate Nordzucker announced earlier this year that it would close its Považský Cukor refinery in western Slovakia, fears arose that the country's sugar output could be cut in half. Instead, production is expected to drop to only two-thirds of its previous level this year, and recover to three-quarters by next year. The second remaining Slovak refinery, operated by German sugar giant Südzucker in the town of Sereď, is investing in expanded production capacity and has also taken on farmers who previously supplied the now-closed competitor. The Slovak government had initially considered purchasing the shuttered Považský Cukor plant to prevent a deeper collapse in domestic production — a move that would have represented an unusual state intervention in the food processing sector. That step proved unnecessary after the government instead increased support for the sugar industry through European Union agricultural subsidies, providing sufficient incentive for Südzucker to expand its operations organically. The outcome avoids a scenario that had alarmed policymakers concerned about food security and rural employment. Slovakia's sugar sector is heavily tied to beet farming across agricultural regions, and a sharp production decline could have had knock-on effects for farming communities dependent on supplying the refineries.

Dennik N
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Economy

Slovak Water Parks Squeezed by VAT Hike and Labor Shortages as Summer Season Opens

Slovakia's water parks and public swimming facilities are facing mounting financial pressure this season, with a recent VAT increase and broader public finance consolidation measures wiping out profit margins across the sector. The head of the Slovak Association of Aquaparks, Swimming Pools and Indoor Pools, Gábor Somogyi, who also directs the Thermalpark facility in Dunajská Streda in southwestern Slovakia, says the VAT rate rising to 23 percent has significantly hurt the industry's bottom line. To cope with persistent labor shortages, operators are increasingly relying on foreign workers to staff their facilities. Somogyi also noted that the sector has invested considerable effort in attracting Polish visitors across the border, reflecting a broader push to compensate for domestic demand challenges. He pointed to shifting visitor habits and changing attitudes toward swimming culture among Slovak residents, alongside an uptick in unusual theft incidents at facilities. The developments highlight how Slovakia's fiscal tightening measures, introduced as part of a government effort to stabilize public finances, are rippling beyond household budgets and into leisure and tourism businesses that depend on discretionary spending.

Dennik N
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Economy

Slovak Manufacturer MSK SVK to Build New Production Hall in Sabinov, Creating 35 Jobs

A manufacturing company is set to expand its operations in Sabinov, a town in eastern Slovakia. MSK SVK plans to construct a new production hall that will increase its manufacturing capacity and create 35 new jobs in the region. The expansion represents a positive development for local employment in an area where industrial investment plays an important role in the regional economy.

Korzár
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Economy

Civilian Flights to Return to Central Slovakia's Sliač Airport — But Not Before 2026

Civilian air travel is set to return to Sliač Airport in central Slovakia, though passengers will have to wait considerably longer than many had hoped. Sliač, a military airbase located near the city of Banská Bystrica, previously handled civilian charter flights before they were suspended, leaving central Slovakia without a functioning passenger airport. The preliminary timeline for resuming civilian operations has now been established, though authorities do not expect regular scheduled airline routes to restart. Instead, the revival is expected to focus on seasonal holiday charter flights — the type typically used for package vacation travel to Mediterranean and other tourist destinations. The development offers some relief to residents of central Slovakia, a region that has long been underserved in terms of air connectivity compared to Bratislava in the west and Košice in the east, both of which have active international airports. However, the limited scope of the planned revival — charters only, with no confirmed regular routes — means the region will continue to lack the kind of year-round air service that would support broader economic development and business travel.

Aktuality
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Economy

Pre-Sale Property Deals in Slovakia Draw Buyers Seeking Lower Prices Before Construction Begins

Prime residential plots and new-build properties in Slovakia are increasingly being snapped up before construction even begins, as buyers and investors seek to lock in lower prices ahead of project completion. Plots starting from 150,000 euros are among the offerings disappearing during pre-sale phases, with developers reporting strong demand for early-stage purchases. Buyers who wait until a development is finished typically pay significantly more, making pre-sales one of the most sought-after opportunities in the Slovak residential property market for both owner-occupiers and investors. The trend reflects broader pressure on Slovakia's housing market, where rising construction costs and limited supply have pushed property prices higher, incentivizing buyers to commit early despite the risks of purchasing a home that has not yet been built.

Aktuality
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Economy

Slovak Economic Roundup: Oil Prices High, Danube Low, Tourism Down, Unemployment Up

Slovakia's weekly economic digest highlights a mix of domestic and international financial developments, drawing a sharp contrast with Spain's economic trajectory as a reference point. Spain, once labeled part of the so-called PIGS group — a shorthand used during the eurozone debt crisis to describe Portugal, Italy, Greece, and Spain — suffered unemployment rates of 25 percent and a devastating housing collapse that left borrowers paying mortgages on homes they had already lost. The country required emergency bailout loans through the European Stability Mechanism. Today, Spain's economy is among the fastest-growing in the European Union, with unemployment falling to around 10 percent — a remarkable turnaround that coincided with the country's football World Cup victory after a 16-year wait. The digest also notes current pressures in the Slovak economic environment, including elevated oil prices, low water levels on the Danube river — which can affect freight transport and industry — a downturn in the tourism sector, and rising unemployment. The Spanish example is used to illustrate that economic recoveries, while possible, do not guarantee broader social or sporting success, and that current difficulties in Slovakia do not necessarily signal long-term decline.

Dennik N
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Economy

Slovak Travel Agency Solvex Shuts Down After 26 Years, Second Collapse This Year

Slovak travel agency Solvex has declared insolvency and ceased operations after 26 years in business, becoming the second travel company to collapse in Slovakia this year. The agency cited rising operating costs and geopolitical tensions as the primary reasons for the closure. The failure follows the recent collapse of Happy Travel, another Slovak travel agency that went under earlier in 2025. The back-to-back failures signal growing financial pressure on the Slovak travel industry, which has been struggling with increased costs and uncertain demand linked to broader geopolitical instability in the region.

SMEAktuality
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