In 2025, the productivity of the Slovenian economy reached 86% of the EU average (in purchasing power standards). Despite the challenges of the business environment and relatively less developed capital markets, the gap with the EU is gradually narrowing – by one percentage point compared to the previous year and by two percentage points compared to 2022.
Limited access by firms to diversified sources of finance is hampering investment growth in higher value-added activities. Business investment, which has hovered between 11 and 12 percent of GDP in recent years, still relies heavily on internal and bank sources of financing.
Slovenia is also addressing productivity and a more investment-friendly business environment through measures under the Recovery and Resilience Plan (RRP), which is being implemented with the help of the European Recovery and Resilience Facility (the Facility).
The ministries responsible for finance, economy and regional development are involved in the implementation of the measures.
Strengthening capital markets – reform
With the aim of strengthening capital markets, the Alternative Investment Fund Forms Act was adopted in Slovenia, which defines three forms and two types of funds. The law specifies in more detail the characteristics and conditions for the establishment and operation of these forms and types of trusts.
A strategy for the development of the capital market in Slovenia until 2030 has also been adopted, and on the basis of this, a number of measures have already been implemented to strengthen the investment culture and increase investor interest.
In 2025, the Ministry of Finance has seen significant progress in the development of the Slovenian capital market. The progress has also been reflected in the market’s advancement to the advanced frontier market category. The SBITOP index grew by 50.3 percent in 2025, while the turnover on the stock exchange increased by 65.1 percent. The Slovenian capital market continues to show strong growth and interest from retail investors in 2026.
The milestone related to the validity of the law was claimed by Slovenia as part of the first request for payment of European funds of the Mechanism, which was fully disbursed by the EC in April 2023. However, the milestone related to the adoption of the strategy was enforced by Slovenia as part of the second claim, which was paid in full in December 2023.
A more productive economy for the digital and green transitions – reforms
With the aim of increasing the productivity of the Slovenian economy, an amendment to the Investment Promotion Act and the implementation of amendments to the implementing regulation were also adopted. The amended legislation interfered with the criteria for public support for corporate investments. Since the change in legislation, they have focused on highly productive, sustainable and digitally oriented business models. The criteria foresee that the supported investments include conditions to promote the green transition, including requirements on energy efficiency, environmentally responsible behaviour and material efficiency of production.
The milestone related to the validity of the Act was claimed by Slovenia in the context of the first request for payment of the European funds of the Mechanism. The milestone related to the implementing regulation was invoked in the context of the second application.
Support for decarbonisation, productivity and competitiveness of enterprises – investment
The objective of the investment is to support companies in increasing productivity. EUR 121 million from the Facility is foreseen for the implementation of the investment. To date, the state has already paid EUR 103 million to project promoters for the project activities carried out.
Out of a total of 280 projects foreseen for funding, 244 projects have been fully completed, while the majority of the remaining projects need to be completed by the end of June 2026.
The milestones related to the issuance of decisions on the co-financing of enterprises were invoked by Slovenia in the context of the second application and the third payment application. The two objectives of the investment will be included in the final payment request.
Provision of innovative ecosystems of economic and business infrastructure – investment
The objective of the investment is to strengthen the competitiveness of value chains in different economic sectors by supporting innovative ecosystems.
As part of the investment, the municipalities carried out 14 projects for the development or upgrade of economic and business zones. EUR 14.4 million from the Facility is envisaged for the implementation of the investment. To date, the state has already paid out more than EUR 13.9 million to project promoters for the project activities carried out.
The milestone related to the issuance of decisions on the co-financing of municipal projects was claimed by Slovenia in the context of the second payment application, and the objective of the investment will be included in the last payment application.
Source: Office of the Republic of Slovenia for Recovery and Resilience