AGP Executive Report

Consumer Demand Signals: Slovenia’s consumer confidence jumped to its highest level in nearly five years in June, with the sentiment indicator rising to -20 from -27 in May, helped by improving expectations for the national economy, household finances, and a wage-growth backdrop. Rail Costs Rise: Slovenian Railways will raise one-way and return ticket prices by about 16% from July, and more than double the on-board “penalty fare” from €5 to €12, citing higher energy, fuel, labour and maintenance costs. Industrial Expansion in Robotics: Yaskawa completed a €32m upgrade in Kočevje, adding a European distribution centre and an expanded robotic production line, strengthening its EMEA hub role. EU Budget Fight: EU leaders are pushing toward a preliminary deal on the €2 trillion 2028–2034 long-term budget by October, with “Friends of Cohesion” warning that agriculture and cohesion funding could be squeezed by defence priorities. Energy-Intensive Decarbonisation: A new Horizon Europe project, INDTEGRATE, was launched to speed up solid oxide electrolyser cell (SOEC) integration for hard-to-electrify industrial sectors like glass and ceramics. Biopharma Boost: Sandoz strengthened its Slovenia biosimilars capability with a technical development centre in Ljubljana to support future growth in complex biologic medicines.

Consumer & Jobs: Slovenia’s consumer confidence jumped in June to its highest level in nearly five years (indicator -20, up from -27 in May), helped by stronger wage growth, a tight labour market (unemployment 4.1% in Q1) and easing price pressure. Rail & Mobility Costs: Slovenian Railways raises one-way and return fares by about 16% from July and more than doubles the on-board “penalty fare” from €5 to €12, while keeping annual/monthly/weekly passes unchanged. EU Budget Fight: EU leaders in Brussels are pushing for a preliminary deal on the €2 trillion 2028–2034 long-term budget by October, with “Friends of Cohesion” (including Slovenia) warning that agriculture and cohesion funding could be squeezed by defence priorities. Competitiveness Watch: Slovenia slipped three spots in the IMD global competitiveness ranking to 49th, with government efficiency and business uncertainty flagged as key drags. Industrial Expansion: Yaskawa completed a €32m robotics investment in Kočevje, adding a European distribution centre and an upgraded production line. Energy & Legal Risk: Ascent Resources’ Energy Charter Treaty arbitration against Slovenia is nearing a final ruling after proceedings closed, with the company seeking about €656.5m. Tech for Industry Decarbonisation: EU-backed INDTEGRATE launched to speed up solid oxide electrolyser and green hydrogen integration for hard-to-electrify, energy-intensive industries.

EU Budget Fight: Slovenia is pushing in Brussels to protect cohesion policy and common agricultural funding as EU leaders negotiate the 2028–2034 €2 trillion budget, with “Friends of Cohesion” warning agriculture could be squeezed by defence priorities. Rail Costs: Slovenian Railways raises one-way and return fares by 16% from July and more than doubles the on-board penalty fare (from €5 to €12), citing higher energy, fuel, labour and maintenance costs. Competitiveness Watch: Slovenia slipped 3 places to 49th in the IMD global competitiveness ranking, with the biggest drag tied to government efficiency and burdens on business. Consumer Signals: Slovenian consumer confidence improved in May to the highest level in over four and a half years, while producer prices rose to a 33-month high. Industrial Investment: Yaskawa completed a €32m expansion in Kočevje, adding a European distribution centre and upgraded robotics production. Biopharma Capacity: Sandoz strengthened its biosimilar development capability in Ljubljana with a new technical development centre. Energy/Legal Risk: Ascent Resources’ Energy Charter Treaty arbitration against Slovenia is nearing a final ruling after proceedings closed, with a potential €656.5m claim. Mobility & Tech: Ultraviolette expands into Central and Eastern Europe via Elektrorider, covering Slovenia among six markets.

EU Budget Fight: Ahead of the Brussels summit, “Friends of Cohesion” countries led by Italy and Romania are pushing to protect agriculture and regional funding in the 2028–2034 EU budget, warning that their share could fall from about 60% to 44% as net payers demand cuts and more defence spending. Slovenian Rail Costs: Slovenian Railways will raise one-way and return fares by an average 16% from July and more than double the on-board penalty fare from €5 to €12, citing higher energy, fuel, labour and maintenance costs. Energy Regulation: ACER opened a public consultation on updates to REMIT transaction reporting for energy derivatives, running 16 July–11 September 2026, aiming for clearer, consistent rules across the EU. Biopharma Expansion: Sandoz strengthened its biosimilars capability in Ljubljana with a new technical development centre to support growth in complex biologic medicines. Competitiveness Watch: Slovenia slipped three places to 49th in the latest IMD global competitiveness ranking, with government efficiency singled out as a key drag. Cement Industry Pressure: Cement Europe flags a sharp rise in cement imports since 2016 and calls for a “watertight” CBAM and predictable ETS to keep a level playing field. 5G Weather Sensing: A1, Nokia and Skyfora are turning 5G sites into precise weather sensors, with one Slovenian site included in the alpine-focused pilot. EU Settlement Imports: France and Sweden urge EU-wide restrictions on goods from Israeli settlements, while countries including Slovenia consider national measures. Tourism & Food: Michelin Guide Slovenia awards went to 74 restaurants, underlining tourism’s push toward higher added value.

EU Trade & Sanctions: Calls for EU-wide restrictions on goods from Israeli settlements are growing, with France and Sweden pushing the European Commission while countries including Belgium, Spain, Slovenia and Ireland weigh national steps; the debate turns on whether member states can legally act under EU rules that deny settlement goods preferential tariff treatment. Slovenian Biopharma Investment: Sandoz has opened a US$99m biosimilars development centre in Ljubljana, aiming for end-to-end in-house capability and about 200 jobs to support complex biologic medicines. Competitiveness Watch: Slovenia fell three places to 49th in the IMD global competitiveness ranking, with government efficiency and administrative burdens flagged as key drags, alongside housing affordability and productivity. Energy Market Regulation: ACER opened a consultation (16 July–11 September) on an Annex clarifying REMIT reporting for energy derivative transactions, including how REMIT exemptions interact with EMIR reporting. Industrial Policy & Decarbonisation: Cement Europe warns of a nearly 500% jump in cement imports since 2016 and urges a predictable ETS and a “watertight” CBAM to protect EU producers while accelerating low-carbon demand. Aviation Demand Signals: ACI Europe reports European airport passenger traffic down 0.7% in Apr-2026, the first monthly decline since the post-COVID rebound, with cargo gains fading and biometric entry rules blamed for delays. Food & Tourism: Michelin Guide Slovenia awards highlight 74 restaurants, with officials linking culinary excellence to higher-value tourism and productivity.

EU Summit Watch: EU leaders gather in Brussels for a two-day push on Ukraine, the China shock and the next €2 trillion budget, with sanctions and Middle East issues also on the agenda. NATO & Defence Industry: NATO chief Mark Rutte says NATO 3.0 needs a stronger Europe backed by a stronger industrial base, calling for steady defence investment increases and fairer sharing. Slovenia Pharma Investment: Sandoz opens a €99m biosimilars development centre in Ljubljana, aiming for end-to-end in-house development and manufacturing with 200+ researchers. AI & Computing in Slovenia: The University of Ljubljana unveils “Frida,” a new AI-focused supercomputing facility to boost research and industry collaboration. Energy & Industry Context: Slovenia opens a €10m battery storage grant scheme, while a separate report highlights how uneven defence spending across Europe is reshaping demand for equipment and suppliers. Agri-Food Tech & Manufacturing: Tehnos showcases agricultural machinery at Cereals, and COFALEC’s assembly in Brussels points to a resilient European yeast sector with €1.3bn turnover. Logistics & Mobility: Austrian Post completes Vienna’s shift to CO2-free last-mile delivery using e-bikes, e-mopeds, electric vans and on-foot routes.

Pharma Investment in Slovenia: Sandoz has opened a US$99m biosimilars development centre in Ljubljana, building an end-to-end in-house hub with 200+ researchers and fully digital processes. Inflation Watch (Eurozone): Eurozone inflation rose to 3.2% in May, driven mainly by services and non-energy industrial goods, with energy steady. Specialty Ingredients Deal: Univar Solutions expanded its EMEA distribution partnership with American Distilling, bringing natural specialty ingredients like alcohol-free witch hazel options to more markets. AI & Research Infrastructure: The University of Ljubljana launched “Frida,” a new AI-focused supercomputing facility to boost training and industry collaboration. Energy Security Angle: A new ranking highlights how heavily some countries rely on Middle East oil imports, underlining supply-shock vulnerability. Logistics Decarbonisation: Austrian Post completed Vienna’s shift to CO2-free last-mile delivery using e-bikes, electric vehicles and foot delivery. Health & Obesity Research: A Ljubljana-led study presented at ENDO 2026 suggests tirzepatide may activate brown fat, adding a new angle to obesity treatment. Tourism Demand Signal: Netrisk reports travel-insurance purchases up 13% this year, with Croatia leading summer destinations. Water Quality (EU): Europe’s 2025 bathing-water report finds 96% of monitored sites meet minimum EU standards.

AI & Research Infrastructure: Slovenia’s University of Ljubljana unveiled Frida, a new AI-focused supercomputing facility on the Faculty rooftop, built to complement the existing Vega system and boost AI training performance and energy efficiency for researchers, students and companies. Public Health & Pharma: A University Medical Centre Ljubljana-led study presented at ENDO 2026 reports tirzepatide may activate brown fat in women with obesity, adding a new angle beyond appetite reduction. Energy & Industry: Slovenia is set to open an EUR 10 million battery storage grant scheme, supporting grid flexibility as renewables scale up. Transport & Manufacturing: Romania’s RELOC (GRAMPET Group) completed modernization of 19 electric locomotives under the PNRR, reinforcing rolling-stock industrial capacity across the region including Slovenia. Agri-Food & Jobs: Radenska, Slovenia’s mineral water bottler, will lose its PepsiCo licence at year-end, raising concerns about jobs at the roughly 250-employee company. Tourism Demand: Travel-insurance purchases are up sharply this summer season, with Croatia leading destinations and Slovenia among the top picks. Regional Security: Slovenia joined a multinational cyber exercise (CACE 2026) with European partners and U.S. National Guard teams to strengthen regional cyber defense.

AI & HPC in Slovenia: Ljubljana’s University unveiled “Frida,” a new AI-focused supercomputing facility on the Faculty of Computer and Information Science rooftop, designed to boost AI training performance and energy efficiency while complementing the existing Vega system. Energy Storage Push: Borzen launched a EUR 10 million non-repayable grant scheme (Climate Fund) for legal entities installing battery energy storage systems, covering up to 45% of eligible costs (capped at EUR 225/kWh), with applications opening in August. Renewables Deal in the Region: Wolf Theiss advised Eurus Energy on Hungary’s first hybrid solar-plus-battery investment (Baracska PV + BESS), supporting grid stability and the energy transition. Obesity Drug Research: UMC Ljubljana researchers presented findings at ENDO 2026 suggesting tirzepatide may activate brown fat in women with obesity, pointing to potential benefits beyond appetite reduction. Orthopedic Manufacturing Quality: A Western University study examined 240+ retrieved hip and knee implants, linking higher body weight and longer implantation times to greater corrosion and wear damage. Slovenian Industry & Jobs Context: Eurostat data showed Slovenia’s job vacancy rate rose slightly year-on-year, while Bulgaria and Cyprus stayed among the lower EU rates. Beverage Industry Shock: Radenska (Slovenia) will lose its PepsiCo licence at year-end, raising worker concerns amid speculation about ownership moves. Film & Production (Regional): Slovenian actress Nika Rozman joins Macedonian debut feature “Spring Cleaning” in Skopje, highlighting cross-border production ties.

Energy & Mobility: Renault says EV demand jumped 50% in some European markets since the Iran war disrupted fuel flows, with the automaker warning interest may cool if prices fall but the shift to electric keeps accelerating. Nuclear Security: A large coalition of countries, including Slovenia, condemned a May 17 drone attack on the Barakah nuclear plant, calling it a serious breach of international law and a risk to civilian and transboundary safety. Health & Biotech: Slovenian researchers presented new findings on tirzepatide, suggesting it may boost brown fat activity and volume—not just reduce appetite—adding a fresh angle to obesity treatment. Slovenia Energy Policy: Borzen launched a EUR 10m battery storage grant scheme, covering up to 45% of eligible costs for legal entities installing BESS, with applications opening in August. Cyber & Defense: Croatia hosted Combined Adriatic Cyber Endeavor 2026, bringing together regional cyber teams including Slovenia and U.S. National Guard partners to strengthen cross-border incident response. EU Trade Rules: The EU foreign policy chief will ask the Commission to develop options for an EU-wide ban on goods from illegal Israeli settlements, with Slovenia among member states pushing for action. Aviation & Consumer Rights: EU negotiators agreed to keep free cabin luggage and delay compensation under air passenger rights rules, with the updated framework set to start in 2027. Local Industry Watch: Slovenia’s newest government lifted its previous arms embargo measures toward Israel, reversing a July 2025 ban on arms and military equipment sales.

Slovenia Energy: Borzen launched a EUR 10 million, non-repayable grant scheme for battery energy storage systems, covering up to 45% of eligible costs (capped at EUR 225/kWh), with applications planned via its online platform from Aug. 4 to Oct. 31, 2026. Regional Cybersecurity: Croatia hosted Combined Adriatic Cyber Endeavor (CACE) 2026, bringing together more than 100 cyber professionals from seven European nations plus U.S. National Guard partners, including Slovenia, to train on defensive and offensive cyber scenarios. EU Trade & Politics: EU foreign policy chief Kaja Kallas will ask the European Commission to develop options for an EU-wide ban on goods from illegal Israeli settlements, after pressure from several member states including Slovenia. Industry & Skills: HPCTRAIN opened a Europe-wide call for HPC traineeships (3–6 months), aiming to close skills gaps by placing trainees in hands-on high-performance computing roles linked to AI and quantum computing. Health & Materials: A study examined corrosion and wear in 240+ retrieved hip and knee implants, showing how degradation continues inside the body over time. Aviation & Tourism: Pula Airport is highlighted as a key regional hub serving parts of Slovenia, with route development data tied to European schedule analysis.

Energy & Industry Funding: Borzen opened a EUR 10 million non-repayable grant scheme for battery energy storage systems (BESS), covering up to 45% of eligible costs (capped at EUR 225/kWh). Applications run Aug. 4–Oct. 31, 2026, with grid connection required by July 31, 2026. EU Governance & Public Finance: The EU Council activated Spain’s national escape clause under the Stability and Growth Pact, allowing up to 1.5% of GDP flexibility for higher defence spending; Slovenia is among the states whose requests were also approved. Legal Ruling for Banking Access: The Court of Justice of the EU ruled that a US sanctions list entry alone can’t justify refusing a basic payment account in the EU; banks must do an individual risk assessment. Green Transition in Mining Region: A EUR 32 million carbon-free technologies centre opened in Kisovec (Zasavje), aiming to link research and industry and build new carbon-free materials and prototypes, supported via the EU Just Transition Fund. Fuel Market Policy: Slovenia extended fuel price controls for gasoline sold outside highway stations until Dec. 15, keeping weekly formula-based adjustments to stabilize supply and prices. Cybersecurity Cooperation: Slovenia joined a major regional cyber exercise (CACE 2026) with partners from across Europe and US National Guard state teams, focused on coordinated defence planning. Business & Tech Links: A Slovenia–India roadshow in Ljubljana discussed a future business council and new technology and trade cooperation.

World Cup Spotlight: Slovenia’s referee Slavko Vincic is set to oversee Brazil vs Morocco in the 2026 opener, with FIFA betting on his big-match track record. Slovenia Energy Policy: Slovenia extended fuel price controls for gasoline sold outside highway stations until Dec. 15, aiming to keep prices predictable for consumers. Green Transition in Mining Region: A €32m zero-carbon tech centre opened in Kisovec, marking a major R&D push for carbon-free technologies in the Zasavje coal district. EU Banking Rules: The EU Court ruled that a US sanctions list entry alone can’t justify refusing a basic payment account in the EU, requiring banks to do an individual risk check. Cybersecurity Cooperation: Slovenia joined a major regional cyber exercise in Croatia under Adriatic+ and U.S. National Guard partners, focusing on cross-border defense readiness. Tourism & Retail: A new boutique hotel opened in Prekmurje with a wood-and-thatch design for slower, nature-led stays, while HalfPrice launched its first Estonian store in Tallinn’s T1. Transport & Logistics: ENNA Logic ordered Siemens Vectron locomotives to expand freight capacity across multiple European corridors.

New Trail for Hikers: Slovenia’s Pohorje and Kozjak regions are now linked by a newly upgraded 187-kilometre long-distance trail with 20 stages, 150+ waypoints and 1,200 markers—built for slower exploration along the Drava. Retirement Wealth Snapshot: A new European comparison shows huge gaps in over-65s’ wealth, from Latvia’s €36,300 median to Luxembourg’s €1,219,500, underlining how housing and pensions shape later life. Slovenia–Israel Policy Shift: The new Janša government removed anti-Israeli measures from the previous administration, lifting entry and import restrictions and ending an arms trade ban. Fuel Prices in Focus: Slovenia extended fuel price controls for non-highway stations until Dec. 15, keeping weekly adjustments tied to global oil movements. EU Banking Ruling: The EU Court said a US sanctions listing alone can’t justify refusing a basic payment account in the EU without an individual risk check—an issue that arose in Slovenia. Zero-Carbon Tech Investment: A €32m carbon-free technologies centre opened in Kisovec, aiming to scale battery, hydrogen and other carbon-free solutions in a former coal region. Regional Cyber Drill: Slovenia joined a major Adriatic+ cyber exercise with multiple European partners and US National Guard teams. Tourism Development: A new boutique hotel, Sončno Polje, opened in Prekmurje near Moravske Toplice, emphasizing wood-based construction, local architecture and low-impact stays.

Zero-Carbon Industry in Slovenia: A €32m zero-carbon tech centre has opened in Kisovec (Zasavje), aiming to scale battery, hydrogen and other carbon-free technologies and support the region’s shift from coal mining. EU Banking Rules: The EU Court ruled that a US sanctions listing alone can’t justify refusing a basic payment account in the EU; banks must do an individual risk check. Fuel Costs & Consumer Impact: Slovenia extended fuel price controls for gasoline sold outside highway stations until Dec. 15, keeping weekly adjustments tied to global oil moves. Cybersecurity Training: Slovenia joined a major regional cyber exercise in Croatia under the Adriatic+ CACE 2026 effort, bringing together multiple European nations and US National Guard partners. HPC Skills Push: The HPCTRAIN call launched to fund 3–6 month traineeships across Europe focused on high performance computing, including AI and quantum intersections. Slovenia–India Business Links: A Ljubljana roadshow explored technology and business cooperation and set up momentum for a Slovenia–India Business Council.

Regional Cybersecurity: Croatia hosted CACE 2026, a major Adriatic cyber exercise with 100+ professionals from seven European countries plus U.S. National Guard partners, including Slovenia, focusing on blue/white team defense and red-team scenarios. Tourism & Hospitality: A new boutique hotel, Sončno Polje, opened near Moravske Toplice in Prekmurje, built mostly from wood and designed to shift visitors away from mass thermal tourism toward slower, nature-led stays. Energy & Industry Transition: Slovenia’s Zasavje coal region opened a €32m centre for carbon-free technologies in Kisovec, backed largely by the EU Just Transition Fund, aiming to scale battery, hydrogen and other decarbonisation projects from lab to industry. Finance & Compliance: The EU Court ruled that a U.S. sanctions listing alone can’t justify denying a basic payment account in the EU; banks must do an individual risk assessment. EU Economic Governance: The EU Council activated Spain’s national escape clause under the stability rules to allow higher defence spending, and Slovenia is among the states whose requests were approved. Slovenia Business Links: A Slovenia–India roadshow in Ljubljana pushed tech and business cooperation and set up momentum for a Slovenia–India Business Council. Fuel Prices: Slovenia extended fuel price controls for non-highway stations until Dec. 15, keeping weekly formula-based adjustments to smooth global oil swings. Global Context: Canada proposed tighter social media access rules for kids under 16, while the U.S. cleared Paramount’s $111bn Paramount–Warner Bros. merger.