AGP Executive Report

Textiles & Manufacturing: MIC (Manifattura Italiana Cucirini) is expanding with its first elastic coiled silk yarn, reporting revenue up 10% in Q1 and renewing collaborations at Pitti Filati. Robotics for Hospitality: Slovenia’s Vandri Robotics unveiled “Jože,” a humanoid hotel receptionist, at MWC Shanghai 2026 under UNIDO auspices, aiming for full reception autonomy with Hotel Bled Rose. Slovenia Macro: Slovenia’s inflation held steady at 3.6% year-on-year in June, with food inflation easing and housing/utilities still high. Energy Infrastructure: WALDEVAR Energy signed a new full EPC deal with GEN-I Sonce for a 110 kV, 63 MVA substation, underlining grid build-out needs for storage integration. Agriculture Support: The EU approved over €56m from the agricultural reserve for climate-hit farmers, including €2.8m for Slovenia. Finance Markets: OTP Bank became the first EU financial institution to open a €7bn EMTN programme on the Hong Kong Stock Exchange. EU Media Policy: The EU-wide MPM2026 brief warns journalists’ working conditions are deteriorating, despite the European Media Freedom Act. Industry & Trade: Slovenia’s central bank reports inbound FDI at €24bn (+4%) with manufacturing still the biggest share, while outbound investment abroad accelerated.

Energy & Grid Buildout: WALDEVAR Energy signed a full EPC deal with GEN-I Sonce for a new 110 kV, 63 MVA substation and grid connection works, underlining how fast Europe’s storage and grid upgrades are moving. Tech Supply Chain: A Slovenian router-kit maker says DRAM costs jumped from ~$35 to ~$300 per unit as AI-driven HBM demand tightens chip supply, pushing up prices across consumer electronics. Media & Labor: The EU’s Media Pluralism Monitor 2026 warns journalists’ working conditions are deteriorating, with one-third of countries facing high risks despite the European Media Freedom Act. EU Policy & Compliance: EU sanctions law guidance highlights how businesses need proactive due diligence as the EU expands Russia-related sanctions packages. Slovenia–Israel Diplomacy: New PM Janez Janša says Slovenia will reverse recognition of a Palestinian state and move its embassy to Jerusalem, signaling a sharper pro-Israel stance. Textiles & Sustainability: Germany, France and the Netherlands urge tougher EU rules against ultra-fast fashion, with Slovenia among supporters. Steel Snapshot: World crude steel output fell 0.3% in May 2026 to 157.9 Mt, with the EU down 0.4%.

Energy & Grids: EU energy ministers agreed the Council’s negotiating position for the European grids package, aiming to modernise cross-border infrastructure and speed up permitting to support electrification and decarbonisation. Hydrogen Infrastructure: A Croatian engineering firm teamed up with CRC Evans to build over 200 km of hydrogen pipeline links across Croatia, Slovenia and Italy’s Friuli Venezia Giulia, backed by EU grants under the Northern Adriatic Hydrogen Valley. Energy Transition (Geothermal): Central Europe is weighing geothermal for steadier, weather-independent heating and power, with the Pannonian Basin and existing district-heating networks seen as key advantages. Logistics Expansion: Rohlig SUUS Logistics signed an investment deal worth about €30m to expand across CEECA, with Slovenia among its operating countries. Manufacturing Reshuffle: Kansai Helios Group plans to gradually relocate production from its Zagreb site to facilities in Slovenia and Serbia, reshaping the Adriatic production network. Industry Pulse (Steel): World Steel Association data shows May 2026 crude steel output at 157.9m tonnes worldwide, down 0.3% year-on-year, with the EU slightly lower. Textiles Regulation: Germany, France and the Netherlands pushed tougher EU rules against ultra-fast fashion, with Slovenia among supporters. Local Business/Travel: Slovenia’s KEKEC children’s film festival debuts in Kranjska Gora (3–5 July 2026), pairing screenings with workshops and film education. Mobility for People with Disabilities: Guidance highlights that UK Blue Badge holders may use reciprocal parking arrangements in some EU countries.

Slovenia–Israel Diplomacy: Prime Minister Janez Janša says Slovenia will move its embassy from Tel Aviv to Jerusalem and “freeze” the prior government’s Palestinian state recognition, framing it as a legal and strategic alignment with Israel. Energy & Infrastructure: EU energy ministers agreed the Council’s negotiating position on the “European grids package,” aiming to modernise cross-border networks and speed up permitting to support electrification and decarbonisation. Hydrogen Pipeline Build: A Croatian-led partnership (Monter Strojarske Montaže with CRC Evans) plans over 200 km of hydrogen pipeline infrastructure linking Croatia, Slovenia and Italy under the Northern Adriatic Hydrogen Valley. Power Market Watch: Eurostat data shows inland natural gas demand rose in 2025, with Slovenia among the biggest increases (+10.3%), highlighting ongoing pressure on energy planning. Textiles & Sustainability: Germany, France and the Netherlands push for tougher EU rules against ultra-fast fashion, with Slovenia among supporters calling for higher sustainability standards for short-lived clothing. Logistics Expansion: Rohlig SUUS Logistics backs CEECA growth with a €30m investment programme that includes operations in Slovenia. Energy Storage: GEN-I expands battery storage investments into Bulgaria, reflecting continued regional shift toward grid flexibility. Archaeology (Slovenian-led): A Slovenian team helped uncover the intact Maya city of Minanbé in Mexico, adding another high-profile research win for Slovenian science.

Slovenia–Israel Diplomacy: Prime Minister Janez Janša says Ljubljana will relocate its embassy from Tel Aviv to Jerusalem and “freeze” the prior government’s Palestinian state recognition, framing it as a legal and strategic alignment with Israel. EU Labour & Wages: A new EU minimum-wage directive is moving from court confirmation to national implementation, with trade unions’ bargaining power at the center of the debate. Textiles & Sustainability: Germany, France and the Netherlands push tougher EU rules on ultra-fast fashion, with Slovenia among supporters calling for higher sustainability standards for short-lived, low-quality clothing. Logistics Expansion: Rohlig SUUS Logistics backs CEECA growth with a ~€30m investment programme, including funding tied to operations across Poland, the Czech Republic, Slovakia, Hungary, Romania, Slovenia and beyond. Hydrogen Infrastructure: A Northern Adriatic Hydrogen Valley plan links Croatia, Slovenia and Italy with a 200km+ pipeline network, supported by EU grants and a specialized engineering partnership. Energy Policy: EU energy ministers agree positions on faster permitting and grid upgrades under the European grids package, while geothermal is highlighted as a promising Central Europe heating and power option. Slovenian Industry Note: Kansai Helios Group plans gradual production relocation to Slovenia and Serbia, with Zagreb output winding down.

EU Presidency Focus: Ireland takes the EU rotating chair amid war, energy shocks, and a tougher security agenda, with a heavy push to get major legislation agreed by December and a new 2028–2034 budget shaped more by competitiveness and defence than farm and cohesion. Textile Rules Push: Germany, France and the Netherlands back stricter EU action against ultra-fast fashion, urging higher sustainability standards for short-lived, low-quality clothing—support also noted from Slovenia. Logistics Expansion: Rohlig SUUS Logistics signs a ~€30m investment deal to accelerate Central and Eastern Europe and Central Asia growth, with Slovenia among its operating countries. Energy Infrastructure: EU energy ministers agree a negotiating position for faster permitting and updated rules for cross-border grids under the “European grids package,” aiming to speed electrification and decarbonisation. Hydrogen Pipeline Deal: Croatia’s Monter Strojarske Montaže partners with CRC Evans on a Northern Adriatic Hydrogen Valley pipeline plan linking Croatia, Slovenia and Italy, backed by EU grants. Packaging Pressure: Eight EU states including Slovenia ask the Commission for clearer, more predictable packaging rules ahead of the 12 August 2026 rollout, warning SMEs face costly uncertainty. Heat & Power Demand: Europe’s early, intense heatwave strains grids and raises electricity use, with some countries reporting outages and rising pressure on infrastructure.

Heat & Water Quality: Europe’s latest EEA bathing-water report (over 22,000 sites) finds 96% meet minimum EU standards and 85% are rated “excellent,” with just 1.5% classed as poor—timely as heat drives more people to swim. Logistics Expansion: Rohlig SUUS Logistics is pushing deeper into CEECA with a ~€30m investment programme backed by Poland’s development institutions, including Slovenia operations. Digital Policy Clash: The EU faces fresh trade pressure as Donald Trump threatens 100% tariffs on countries implementing digital services taxes, while the European Commission signals swift retaliation. Youth Social Media Rules: Australia moves to double penalties for under-16 social media ban breaches to $99m and strengthens the eSafety regulator’s powers. Energy Transition in the Region: EU energy ministers agree positions on the “grids package” to speed permitting and expand cross-border infrastructure; meanwhile, geothermal is gaining attention for Central Europe’s heating needs. Hydrogen Infrastructure: Croatia’s Monter Strojarske Montaže and CRC Evans plan a 200km+ hydrogen pipeline network linking Croatia, Slovenia and Italy under the Northern Adriatic Hydrogen Valley. Industry & IP: OXT Technologies secures a European Unitary Patent covering sustainable aviation fuel production via mixed alcohols, with coverage including Slovenia. Textiles: ITM 2026 in Istanbul reports strong global turnout—48,257 professional visitors from 105 countries—showing continued demand for textile machinery. Manufacturing Reshuffle: Kansai Helios Group will gradually relocate production from Zagreb to sites in Slovenia and Serbia, reshaping its Adriatic network. Archaeology Spotlight: A Slovenian-led team reports an intact, seemingly unlooted Maya city in Mexico’s Calakmul reserve, named Minanbé. Tourism & Travel Demand: Gen Z travel planning leans toward experiences—Croatia island-hopping and Slovenia cave/castle/lake trips feature prominently.

Industrial Relocation: Kansai Helios Group says it will gradually move production from its Zagreb site to existing facilities in Slovenia and Serbia, with phased shutdowns in Croatia while keeping the Croatian market supplied via trading. Energy Policy: EU energy ministers agreed the Council’s negotiating position for the European grids package, aiming to modernise cross-border infrastructure and speed up permitting to support electrification and decarbonisation. Hydrogen Infrastructure: Croatia’s Monter Strojarske Montaže and CRC Evans will build 200+ km of hydrogen pipelines linking Croatia, Slovenia and Italy, backed by EU Horizon Europe funding. Geothermal Transition: A new look at Central Europe geothermal highlights its role in steady heating supply, especially where district heating networks already exist. Textiles & Manufacturing: ITM 2026 wrapped in Istanbul with strong international turnout—48,257 professional visitors from 105 countries—showing continued demand for textile machinery. EU Packaging Rules: Eight EU member states, including Slovenia, ask the Commission for clearer implementation of the packaging regulation due in August, warning firms face costly uncertainty. Labour Market: Slovenia’s skilled-worker shortage is pushing some companies to recruit abroad, sparking local debate over wages, working conditions and community impact. Archaeology & Heritage: A Slovenian-led team helped uncover the intact Maya city Minanbé in Mexico’s Calakmul reserve, using LiDAR and fieldwork—an unexpected win for research and cultural discovery.

Hydrogen & Pipelines: A Croatian engineering firm Monter Strojarske Montaže is partnering with CRC Evans to build 200+ km of hydrogen pipeline infrastructure linking Croatia, Slovenia and Italy’s Friuli Venezia Giulia, part of the Northern Adriatic Hydrogen Valley backed by EU grants and aiming to scale renewable hydrogen production, transport and use. Energy Transition: A new look at geothermal power argues Central Europe could lean on geothermal for steady, weather-proof heating—especially where the Pannonian Basin geology and existing district heating networks can speed up deployment. Energy & Trade Diplomacy: Slovenia and Türkiye discussed a new action plan to deepen cooperation across energy, logistics, construction, telecoms, security and more during talks around the Dubrovnik Forum. Regional Cooperation: Serbia’s European integration minister Nemanja Starovic spoke with Slovenia’s infrastructure and energy minister Jernej Vrtovec, focusing on easing Schengen-related issues for Serbian professional transport operators. EU Rules for Industry: Eight EU member states, including Slovenia, asked the Commission for clearer packaging-rule implementation ahead of August 12, warning that unclear obligations could force costly, unrealistic investments for businesses—especially SMEs. Local Economy & Skills: Slovenia’s skilled-worker shortage is pushing some firms to recruit abroad, but the move is sparking debate over wages, working conditions and the impact on local labor markets. Energy Demand Snapshot: Eurostat data shows inland gas demand rose in 2025, with Slovenia among the biggest increases, underlining how gas still matters for heating and industrial processes even as the EU shifts energy sources.

Energy Watch: Eurostat data shows EU inland natural gas demand rose 2.5% in 2025 vs 2024, with the biggest jumps in Croatia (+11.3%), Portugal (+11.2%) and Slovenia (+10.3%), while Germany, Italy and France remained the top consumers; the EU still relies heavily on imports (89% of supply from outside the bloc), and Romania’s production fell 0.8% even as the Tuzla–Podișor pipeline under the Neptun Deep project is set to start deliveries in 2027. Hydrogen & Infrastructure: Croatia and Slovenia are moving hydrogen forward via the Northern Adriatic Hydrogen Valley, a cross-border pipeline plan linking the two countries and Italy’s Friuli Venezia Giulia, aiming for over 200 km of infrastructure and long-term renewable hydrogen output above 5,000 tonnes/year. Energy Storage Investments: Gen-I has expanded beyond Slovenia, completing the purchase of three utility-scale battery storage systems in Bulgaria (30 MW / 76 MWh total), with a target to reach 100 MW by year-end. Manufacturing Sentiment: Slovenia’s manufacturing confidence improved slightly in June, with the overall index rising to -4 from -5, order book balance improving, and production expectations staying positive. EU Rules for Industry: Eight EU member states, including Slovenia, are asking the Commission for “greater clarity” on the Packaging and Packaging Waste Regulation implementation from 12 August 2026, warning that unclear obligations could force costly delays for businesses—especially SMEs. Agriculture Policy: Ireland’s agriculture minister says CAP talks need a “balance” between member-state flexibility and common EU rules, with “very delicate negotiations” ahead.

Energy & Storage: Slovenia’s GEN-I Group has bought three utility-scale battery storage systems in Bulgaria (Belovo, Momchilgrad, Parvomay 1), adding 30 MW/76 MWh; the move is its first international storage investment and lifts GEN-I Invest’s portfolio to 42 MW/100 MWh. Solar Power: Slovenia’s PV market is shifting with a nationwide energy-sharing mechanism and rising battery adoption; the platform has already logged over 1,000 registrations, aiming to let solar output be allocated across different metering points. Hydrogen Infrastructure: Croatia’s Monter Strojarske Montaže and CRC Evans are partnering to develop the Northern Adriatic Hydrogen Valley—over 200 km of hydrogen pipelines linking Croatia, Slovenia and Italy, backed by EU grants. Manufacturing Sentiment: Slovenia’s manufacturing confidence improved slightly in June, with order book balance and expected employment edging up. Packaging Rules: Eight EU member states, including Slovenia, are asking the Commission for clearer implementation of the Packaging and Packaging Waste Regulation from August, warning firms face costly uncertainty. Antibiotic Alternatives: A €15m EU-funded trial will test phage therapy plus gut microbiome restoration to prevent recurrent urinary tract infections. Heatwave Impact: Extreme heat across Europe is straining power grids and disrupting daily life, with France reporting its hottest day on record. Aviation Fuel Tech: OXT Technologies secured a European Unitary Patent covering its mixed-alcohol pathway for sustainable aviation fuel from syngas, including protection in Slovenia.

Hydrogen Infrastructure: Monter Strojarske Montaže is partnering with CRC Evans to develop the Northern Adriatic Hydrogen Valley, a cross-border hydrogen pipeline plan linking Croatia, Slovenia and Italy’s Friuli Venezia Giulia. The project targets 200+ km of pipeline, 37 partners, and about €25m in EU Horizon Europe/clean hydrogen funding, aiming for 5,000+ tonnes of renewable hydrogen annually. Energy Storage Expansion: Gen-I has completed its first international battery storage investment, buying three utility-scale systems in Bulgaria (Belovo, Momchilgrad, Parvomay 1) totaling 30 MW/76 MWh, with a goal to reach 100 MW of storage by year-end. Slovenia Solar Market Shift: Slovenia’s PV sector is moving into a new phase with a nationwide energy-sharing mechanism (1,000+ registrations so far) and growing battery adoption, helping households without suitable rooftops access solar generation. EU Migration Tech Rollout: Slovenia’s parliament adopted the act enabling the new Eurodac system, but the wider EU rollout shows uneven readiness, with some countries still scrambling after the June 12 launch. Manufacturing Pulse: Slovenia’s manufacturing confidence edged up in June (to -4 from -5), with order book and employment expectations improving slightly. Construction Outlook: A regional forecast expects most Eastern European construction markets to hold output levels through 2028, with Russia the main drag. CAP Emergency Support: The EU approved over €56m in emergency CAP aid for farmers hit by extreme weather, including €2.8m for Slovenian apples. Industrial Heat Decarbonisation: The EU launched an auction-backed push to cut industrial heat emissions, backing 65 projects across sectors including Slovenia, with grants totaling €400m. Heatwave Disruption: A severe European heatwave is forcing school closures and travel disruptions, with France reporting its hottest day on record.

Energy & Storage: Gen-I has bought three utility-scale battery storage systems in Bulgaria (Belovo, Momchilgrad, Parvomay 1), adding 30 MW/76 MWh and pushing its portfolio to 42 MW/100 MWh, with plans to scale further across Southeast Europe. Slovenia Solar Market: Slovenia’s PV sector is shifting with a nationwide energy-sharing mechanism and faster battery adoption; early registrations top 1,000, but the 15-minute settlement setup and allocation keys are already tripping up some consumers. EU Migration Tech: Slovenia moved ahead on the Eurodac rollout by adopting the implementation act, while other EU states still scramble to meet the new system’s launch requirements. Manufacturing Pulse: Slovenia’s manufacturing confidence ticked up in June, reaching a five-month high as order books and expected employment improved slightly. Construction Outlook: A regional forecast expects most Eastern European construction markets to hold output levels into 2028, with Russia pressured by high rates and Ukraine showing resilience but still below pre-war levels. Agriculture Support: The EU approved emergency CAP funding for farmers hit by extreme weather, including €2.8m for Slovenian apple growers. Heat & Industry Risk: A Europe-wide heatwave is disrupting daily life and raising electricity demand, with France reporting its hottest day on record—an immediate stress test for energy systems and operations. Industrial Decarbonisation: The European Commission backed 65 projects under its industrial heat decarbonisation auction, with Slovenian proposals among the winners.

Sovereign Infrastructure: Ilkari is integrating the DC North data centre in Varaždin, Croatia, into its EU sovereign infrastructure operations, adding a 4 MW carrier-neutral facility with direct connectivity to exchange points in Austria, Hungary and Slovenia. Heatwave Disruptions: A record-breaking heatwave has pushed schools to close early and rail services to cancel or reduce trips across parts of Europe, with France reporting its hottest day on record and energy demand rising as cooling needs spike. EU Farm Relief: The EU approved over €56m in emergency CAP support for farmers hit by extreme weather, including €2.8m for Slovenia (apples) plus aid for Portugal, Romania, Cyprus and Croatia. Industrial Decarbonization: The European Commission launched an auction for industrial heat decarbonization, backing 65 projects across EU countries, with proposals spanning solar, geothermal, plasma and heat pumps for sectors from chemicals to textiles. Slovenia RRP Funding: Slovenia has received about 87% of its Recovery and Resilience Facility funds (around €1.81bn) after the green light for the sixth payment request, with the next submission due by 30 September. Pharma Tech: Verista is promoting its COUNTQ Tray Inspection System for faster, more accurate pharmaceutical tray counting using AI-enabled vision and electronic verification.

EU Solidarity Funds: Cyprus took a step toward accessing €9.21m from the EU solidarity fund after the European Parliament budgets committee backed wildfire-recovery disbursement, with a plenary vote next; CAP Emergency Aid: the EU also approved over €56m from the CAP agricultural reserve for farmers hit by extreme weather, including Slovenia’s €2.8m for apples alongside Portugal, Romania, Cyprus and Croatia; Industrial Decarbonization: the European Commission launched an auction for industrial heat decarbonization, backing 65 projects across EU countries (including Slovenia) with grants aimed at replacing fossil-fuel heat in sectors like pharma, glass, ceramics, food and textiles; Pharma Automation: Verista is pushing its COUNTQ Tray Inspection System, an AI-based tray counting and reconciliation tool designed to cut errors and speed checks in regulated pharmaceutical production; Energy & Heat Pressure: Europe’s heatwave is driving higher electricity demand and raising blackout risk as cooling needs surge; Slovenia RRF Payments: Slovenia reported it has received almost 87% of available Recovery and Resilience Facility funds (about €1.81bn) and is preparing the next payment request, with remaining milestones tied to investment completion.

Energy & Grid Stress: Europe’s third heatwave of the year is pushing power demand higher, with forecasts up to 43°C and knock-on effects like school closures and reduced rail services. Renewables Snapshot: Renewable energy now makes up 23% of energy consumption, with biomass and solar doing most of the work. EU Farm Support: Member states approved over €56m from the CAP agricultural reserve for farmers hit by storms, droughts, heatwaves and frosts—Portugal (€30m), Romania (€14.8m), Cyprus (€4.6m), Croatia (€4.4m) and Slovenia (€2.8m). Slovenian Energy Market Integration: ELES will join the EU balancing platforms PICASSO (aFRR) on 1 July and MARI (mFRR) on 15 July, expanding cross-border grid flexibility. Hydrogen Infrastructure: CRC Evans and Monter are advancing a North Adriatic Hydrogen Valley pipeline project across 200+ km, aiming for hydrogen-ready transport by end-2026. Construction Activity: Eurostat reports modest April growth in construction output across the euro area and EU, with Slovenia among the stronger performers. Slovenian Innovation & Consumer Tech: Ljubljana start-up Ininum is launching AI-driven perfume personalization in Europe, using a capsule-based device and app. Local Culture & Tourism: A new Snežnik Regional Park (nearly 22,000 ha) is set to boost protected nature and sustainable tourism, including grazing practices.