Deputy Prime Minister Peter Kmec is responsible for the recovery plan. (source: TASR)
By next summer, Slovakia must complete its recovery plan, which is part of the European Union’s Recovery and Resilience Facility established in response to the Covid-19 pandemic. The plan is intended to support economic recovery through investments and reforms in areas such as green energy, digital transformation, healthcare, and education. However, it is already clear that Slovakia will not be able to complete some of the planned investments on time, which could threaten the country’s ability to draw down the full amount of allocated funding.
For now, this means U.S. Steel will continue to pollute the air, psychologists will rely on outdated tests, and firefighters will go without new stations. It does not mean these projects will never be completed. But Slovakia has missed the chance to use European funding for their implementation, and at best, their completion will be delayed by several years.
Of the total €6.3 billion, Slovakia has so far received a little more than half. The European Commission is disbursing the funds in instalments, having recently approved the fifth out of nine.
The positive news is that, at least for now, Slovakia will not lose funding for targets it will not be able to meet. The Office of Deputy Prime Minister Peter Kmec, who is responsible for the recovery plan, submitted a proposal to the European Commission in January for a revision worth €414 million.
Under the proposal, the sums allocated for unused investments would be redirected to other projects. The funding would mainly support the construction and reconstruction of schools, dormitories, hospitals and social service homes. The only new investments proposed are the purchase of a high-capacity train and the planting of trees. The European Commission is expected to respond to the proposal by the summer of 2025 at the latest.
At the same time, Slovakia will still complete dozens of reforms and investments, although some may amount to little more than formal exercises. The daily newspaper Sme has compiled a list of projects that Slovakia will definitely not complete.
No electric furnace
It should have been the largest investment in the recovery plan. U. S. Steel was to receive a subsidy of almost €300 million as part of the process to decarbonise the industry.
The money was intended to purchase electric arc furnaces, which were to replace the current coke-based blast furnaces.
Although the company joined a call, it did not sign a contract with the Environment Ministry. The reason is that U. S. Steel is currently changing ownership. The potential buyer is the Japanese steel giant Nippon Steel.
However, the sale is being delayed due to resistance on the part of the US government and the company unable to commit to such a large investment in such a short time, as it would have to pay at least €1 billion from its own resources.
