14. August 2025 at 23:59

News digest: Tariffs and taxes put Slovakia in a slowdown

Ambulance tender in turmoil; PM Fico’s deficit plan falters; Malé Leváre’s journey from ‘village of death’ to refuge.

Font size: |

Greetings! This is Today in Slovakia – Thursday, 14 August edition. 


SkryťTurn off ads
SkryťTurn off ads
Article continues after video advertisement
SkryťTurn off ads
Article continues after video advertisement

The Foreigners’ Police quietly dropped some positive news on Thursday: foreigners now have more options to activate their residence permits for electronic communication with the state.

The bad news? They only announced it in Slovak  – on their official website and Facebook page. Hardly a shock. Slovak authorities never miss a chance to remind foreigners that the official language is Slovak, not English. Progressive thinking this is not. To complete the irony, even the so-called “guide” to help foreigners is available only in Slovak. Very helpful indeed.

Late last year, the police promised a campaign to encourage foreigners to use the state’s e-services. Did anyone actually notice it?

SkryťTurn off ads

We’d love to hear your most recent encounters with the Foreigners’ Police  – good or bad. Drop us a line. For now, here’s your Thursday rundown.


Economy hits the brakes

A female employee at work in the Nestlé Slovakia factory on Monday, 11 November 2024, in Prievidza, western Slovakia. A female employee at work in the Nestlé Slovakia factory on Monday, 11 November 2024, in Prievidza, western Slovakia. (source: TASR - Daniel Stehlík)

Government belt-tightening and a trade war have taken a clear toll on Slovakia’s export-oriented economy in the first half of the year, with growth well below the EU average.

The economy barely moved in Q2, with GDP rising just 0.1 percent quarter-on-quarter, according to preliminary seasonally adjusted figures from the Statistics Office. Year-on-year growth slowed to 0.6 percent – the weakest in two years.

“This is an unpleasant surprise,” said Matej Horňák, an economist at Slovenská sporiteľňa, who now expects to revise his full-year growth forecast of 1.8 percent downward.

SkryťTurn off ads

What’s dragging us down? Analysts cite three main culprits: US tariffs on Slovak cars, the government’s fiscal consolidation measures – which are squeezing household spending – and weaker private investment due to uncertainty and higher taxes. Consumption is still the main growth driver, helped along by EU funds and the recovery plan. Some private firms are starting to invest again thanks to lower interest rates, but the rebound remains fragile.

Tariffs bite harder here: Slovakia’s economy is feeling the sting of US tariffs more than most EU countries, analysts say. But they still point to domestic austerity as the bigger drag. “The fiscal consolidation package has significantly increased the tax burden and weighed on both businesses and households,” Horňák said.

SkryťTurn off ads

No quick fix: Analysts do not expect a significant rebound anytime soon, given ongoing uncertainty in global trade and only a partial easing of US tariffs. Next year could bring further slowdown with a new round of consolidation measures, whose details remain unclear but whose impact is expected to be dampening.

The silver lining: Over the longer term, growth could get a boost from the final drawdown of EU funds, large-scale German public investments, and further interest rate cuts by the European Central Bank – all of which could encourage more investment activity.


MORE STORIES FROM THE SLOVAK SPECTATOR

  • Ambulance armageddon: Slovakia’s €2 billion ambulance tender – the biggest in its healthcare history – has collapsed amid allegations of secrecy, cronyism and breaches of EU rules, leaving both politics and emergency services in turmoil.

  • Madness, season five: Two decades of ambulance “tenders” in Slovakia have delivered scandals, oligarch deals, and zero real reform – and the latest round looks set to end the same way, writes former MP Miroslav Beblavý.

  • Mind the gap: Slovakia’s regions face the same core labour market needs – less bureaucracy, better education links, and future-proof skills – but progress hinges on tighter public–private cooperation, writes Tomáš Novák of Deutsche Telekom IT Solutions Slovakia.

  • Three’s a crowd: Slovakia’s three public health insurers are boxed in by strict state rules, heavy redistribution, and a ban on supplementary cover, leaving competition limited to perks and service.

  • Boženík’s big call: The Slovak striker spurned a huge offer from Russia over the war in Ukraine, choosing instead to join Stoke City in England’s Championship.

SkryťTurn off ads

If you like what we’re doing and want to support good journalism, buy our online subscription with no ads and a print copy of The Slovak Spectator sent to your home in Slovakia. Thank you.


HISTORY TALKS

From death to refuge

The village of Malé Leváre during the Austro-Hungarian Empire. The village of Malé Leváre during the Austro-Hungarian Empire. (source: Branislav Chovan)

Once dubbed the “village of death”, Malé Leváre in western Slovakia became a safe haven for persecuted Anabaptists – and still boasts distinctive rural architecture worth the trip.


FISCAL ‘DISCIPLINE’

Deficit? What deficit reduction? 

Finance Ministry building Finance Ministry building (source: TASR - Martin Baumann)

Almost two years into its term, Robert Fico’s government has failed to shrink the budget deficit it inherited. In autumn 2023, it took over public finances with a 4.8 percent-of-GDP gap. This year, despite two hefty consolidation packages worth €3.8 billion, Slovakia is still on course for a 5 percent deficit.

SkryťTurn off ads

The Council for Fiscal Responsibility warns that without further large-scale cuts, the deficit could hit 6 percent of GDP – or €9.2 billion – by 2028. While tax hikes (higher VAT, a new levy on big businesses, a transaction tax) have helped, Fico has more than offset savings with new permanent spending: 13th pensions, public-sector pay rises, higher health spending, and even a brand-new Ministry for Tourism and Sport.

The council says the government’s yet-to-be-detailed €2 billion consolidation plan for 2026 will mostly be needed to pay for its own spending decisions. Rising interest costs and the sluggish economy are adding to the pressure. In other words: less “fiscal discipline”, more “running to stand still.”


IN OTHER NEWS

  • The Slovak National Party (SNS) has proposed slashing the number of self-governing regions from eight to four, reviving a historical model it claims would save more than €500 million and streamline administration. SNS says the reform would cut red tape, centralise powers in regional capitals, and bring services closer to citizens.

  • Oil flows through the Druzhba pipeline from Russia to Slovakia and Hungary have stopped after Ukrainian drones struck a key pumping station in Russia overnight on Wednesday, according to former economy minister Karel Hirman. Hirman, of the Demokrati party, said the outage could disrupt regional supplies.

  • Slovakia’s public defender of rights, Róbert Dobrovodský, has joined the European Network of Ombudspersons for Children in condemning the “unprecedented” and “unbearable” violations of children’s rights in Gaza. The statement calls for an immediate ceasefire, unimpeded humanitarian access, and strict adherence to international law to protect children facing destruction, displacement, hunger and trauma.

  • Slovak journalists have joined international press freedom groups in condemning the killing of reporters in Gaza, including six media workers targeted in an Israeli strike on 10 August. The statement demands an immediate halt to attacks on journalists, access for foreign media, and independent investigations into the violence.

  • Slovakia’s General Prosecutor’s Office will review the Interior Ministry’s decision not to launch proceedings over an alleged breach of the legal spending limit in President Peter Pellegrini’s election campaign. General Prosecutor Maroš Žilinka said the case is being examined ex officio, on the office’s own initiative.

Black chokeberry (aronia) fruits in a bowl during a self-pick event in the orchards in Moravské Lieskové, Nové Mesto nad Váhom district, on Friday, 8 August 2025. Black chokeberry (aronia) fruits in a bowl during a self-pick event in the orchards in Moravské Lieskové, Nové Mesto nad Váhom district, on Friday, 8 August 2025. (source: TASR)

FRIDAY WEATHER BRIEFING: Clear to partly cloudy, exceptionally hot. Daytime highs of 31°C – 37°C, with heat warnings in effect across Slovakia. (SHMÚ)


WHAT’S ON IN BRATISLAVA: From lake vibes at Draždiak to a music festival worth the buzz, here are 10 events foreigners won’t want to miss.


MARK YOUR CALENDARS:  With the Beach Boys’ Marcella in mind, Marcelas celebrate their name day on Friday, so let’s wish them all a happy birthday, všetko najlepšie!

One of Slovakia’s best-known Marcelas is singer Marcela Laiferová, a 1970s–80s star remembered for hits like Pod bielou alejou (Under the White Alley).

Marcela Laiferová - Topic:

Thanks for reading and subscribing – it truly means a lot. Just one more sleep until the weekend!

P.S. If you have suggestions on how our news overview can be improved, you can reach us at editorial@spectator.sk.

Follow The Slovak Spectator on Facebook, LinkedIn and Instagram(@slovakspectator). For news from Slovakia in Ukrainian, click here or follow Novyny on Telegram, Facebook, and Instagram.

Join our newsletter family and never miss a Slovak moment: Today in Slovakia | Last Week in Slovakia | Slovak Science | Spectacular Slovakia | Slovak Roots

SkryťClose ad