EUROPEAN COMMISSION

Brussels, 26.6.2023

COM(2023) 375 final

2023/0218(NLE)

Proposal for a

COUNCIL IMPLEMENTING DECISION

amending Implementing Decision (EU) (ST 10156/21 INIT; ST 10156/21 ADD 1) on the approval of the assessment of the recovery and resilience plan for Slovakia

{SWD(2023) 238 final}

2023/0218 (NLE)

Proposal for a

COUNCIL IMPLEMENTING DECISION

amending Implementing Decision (EU) (ST 10156/21 INIT; ST 10156/21 ADD 1) on the approval of the assessment of the recovery and resilience plan for Slovakia

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union,

Having regard to Regulation (EU) 2021/241 of the European Parliament and of the Council of 12 February 2021 establishing the Recovery and Resilience Facility 1 , and in particular Article 20(1) thereof,

Having regard to the proposal from the European Commission,

Whereas:

(1)Following the submission of the national recovery and resilience plan (‘RRP’) by Slovakia on 29 April 2021, the Commission has proposed its positive assessment to the Council. The Council approved the positive assessment by means of the Council Implementing Decision of 13 July 2021 2 .

(2)Pursuant to Article 11(2) of Regulation (EU) 2021/241, the maximum financial contribution for non-repayable financial support of each Member State should be updated by 30 June 2022 in accordance with the methodology provided therein. On 30 June 2022, the Commission presented the results of that update to the European Parliament and the Council.

(3)On 26 April 2023, Slovakia submitted a modified national RRP, including a REPowerEU chapter in accordance with Article 21c of Regulation (EU) 2021/241, to the Commission.

(4)The modified RRP also takes into account the updated maximum financial contribution in accordance with Article 18(2) of Regulation (EU) 2021/241 and includes a reasoned request to the Commission to propose to amend the Council Implementing Decision in accordance with Article 21(1) of Regulation (EU) 2021/241 considering the RRP to be partially no longer achievable due to objective circumstances. The modifications to the RRP submitted by Slovakia concern 52 measures.

(5)On 12 July 2022, the Council addressed recommendations to Slovakia in the context of the European Semester. In particular, the Council recommended that Slovakia expands its public investment for the green and digital transition and for energy security, including by making use of the Recovery and Resilience Facility, REPowerEU and other EU funds. Additionally, the Council called on Slovakia to make the tax mix more efficient and more supportive to inclusive and sustainable growth, including by leveraging the potential of environmental and property taxation, and continue to strengthen tax compliance, including by further digitalising tax administration, The Council also recommended that Slovakia reduces the overall reliance on fossil fuels and diversify imports of fossil fuels, accelerate the deployment of renewables by further facilitating grid access, introducing measures to streamline permitting and administrative procedures and modernising the electricity network. Finally, the Council called on Slovakia to reduce reliance on natural gas in heating and industry and adjust renovation policies to accelerate and incentivise deep renovations of buildings. 

(6)Having assessed progress in the implementation of the relevant country-specific recommendations at the time of submission of the modified national RRP, the Commission finds that, with respect to the recommendations on expanding public investment for the green and digital transition (2022 CSR 1), substantial progress has been achieved.

(7)The submission of the modified RRP followed a consultation process, conducted in accordance with the national legal framework, involving local and regional authorities, social partners, civil society organisations, youth organisations and other relevant stakeholders. The summary of the consultations was submitted together with the modified national RRP. Pursuant to Article 19 of Regulation (EU) 2021/241, the Commission assessed the relevance, effectiveness, efficiency and coherence of the modified RRP, in accordance with the assessment guidelines set out in Annex V to that Regulation.

Updates based on Article 18(2) of Regulation 2021/241

(8)The modified RRP submitted by Slovakia updates 32 measures to take into account the updated maximum financial contribution. Slovakia has explained that because the maximum financial contribution decreased from EUR 6 328 586 359 3  to EUR 6 005 747 824 4 , it was no longer possible to finance all the measures of the original Slovak RRP. Slovakia has explained that certain measures should decrease targets or remove elements due to the decrease in the allocation and taking into account the cost increases and supply chain disruptions affecting the implementation of those measures.

(9)The modified RRP no longer contains certain measures under component 9 (More efficient management and strengthening of R&D&I funding) and 11 (Modern and accessible healthcare). These measures concern investment 7 (RD grant IT system) under component 9 consisting of the creation of a unified IT system to speed up the evaluation of grant calls, and investment 5 (renewal of the ambulance fleet) under component 11 consisting of the purchase and equipment of ambulance vehicles. The description of these measures and their associated milestones and targets should therefore be removed from the Council Implementing Decision of 13 July 2021.

(10)Furthermore, the modified RRP submitted by Slovakia changes measures under components 1 (Renewable Energy Sources and Energy Infrastructure), 2 (Renovation of Buildings), 3 (Sustainable Transport), 5 (Adaptation to Climate Change), 7 (Education for the 21st Century), 8 (Improving the Performance of Slovak Universities), 9 (More Efficient Management and Strengthening of R&D&I Funding), 10 (Attracting and Retaining Talents), 11 (Modern and Accessible Healthcare), 12 (Human, Modern and Accessible Mental Health Care), 13 (Accessible and High-Quality Long-Term Socio-Health Care), 15 (Judicial Reform), 16 (Fight Against Corruption and Money Laundering, Security and Protection of the Population) and 17 (Digital Slovakia (State in the Mobile, Cybersecurity, Fast Internet for Everyone, Digital Economy)) to reflect the updated maximum financial contribution.

(11)Notably, target 5 of investment 2 (modernising the existing renewable electricity sources (repowering)) and target 6 of investment 3 (increasing the flexibility of electricity systems for greater integration of renewables) under component 1 (Renewable Energy Sources and Energy Infrastructure); targets 3 and 4 of investment 1 (improving energy efficiency of family houses) and targets 6 and 7 of investment 2 (renovation of historical and listed public buildings) under component 2 (Renovation of Buildings); targets 7 and 9 of investment 1 (on the development of low-carbon transport infrastructure) under component 3 (Sustainable Transport); targets 5 and 6 of investment 1 (the adaptation of regions to climate change with an emphasis on nature conservation and biodiversity development) under component 5 (Adaptation to Climate Change); target 6 of reform 2 (preparing and developing teachers for new content and forms of teaching (change in higher education training) and strengthening the professional development of teachers) and target 9 of investment 2 (completion of the school infrastructure) under component 7 (Education for the 21st Century); target 10 of investment 1 (investment support for the strategic development of universities) under component 8 (Improving the Performance of Slovak Universities); target 5 of investment 1 (promoting international cooperation and participation in Horizon Europe and EIT projects), milestones 6 and targets 7 and 8 of investment 2 (supporting cooperation between companies, academia and R&D organisations) and milestone 18 and target 19 of investment 6 (financial instruments to support innovation) under component 9 (More Efficient Management and Strengthening of R&D&I Funding); target 4 of investment 1 (support tools and assistance for returnees, highly qualified third-country workers and their family members and foreign higher education students studying in Slovakia) and target 7 of investment 3 (scholarships for domestic and foreign talented students) milestone 10 of investment 4 (Promoting internationalisation in the academic environment) under component 10 (Attracting and Retaining Talents); milestone 9 and target 10 of investment 2 (new hospital network – construction, reconstruction and equipment) under component 11 (Modern and Accessible Healthcare); target 3 of investment 3 (building psycho-social centres), target 4 of investment 6 (establishment of a repository of psychodiagnostic methods) and target 6 of investment 8 (training in mental health for staff) under component 12 (Human, Modern and Accessible Mental Health Care); milestone 4 of reform 2 (assessment of care needs) and targets 7, 8, 9 and 10 of investment 1 (enhancing community-based social care capacities) under component 13 (Accessible and High-Quality Long-Term Socio-Health Care); targets 3 and 4 of investment 1 (buildings for the reorganised court system) under component 15 (Judicial Reform); milestone 2 of investment 1 (tools and capacity for the fight against corruption and money laundering) and target 17 of investment 4 (Streamlining, optimising and strengthening administrative capacity at different levels of government) under component 16 (Fight Against Corruption and Money Laundering, Security and Protection of the Population); targets 7 and 8 of investment 2 (digital transformation of public service delivery), targets 14 and 15 of investment 4 (support for projects aiming at the development and application of top digital technologies), target 16 of investment 5 (fast grants – hackathons), investment 6 (strengthening preventive measures, increasing the speed of incident detection and resolution (ITVS – Information technologies for public administration)) and target 22 of investment 7 (improving the digital skills of seniors and the distribution of Senior Tablets) under component 17 (Digital Slovakia (State in the Mobile, Cybersecurity, Fast Internet for Everyone, Digital Economy)) are changed to decrease the level of required implementation compared to the original plan to reflect the decreased allocation. 

Amendments based on Article 21 of Regulation 2021/241

(12)The amendments to the RRP submitted by Slovakia because of objective circumstances concern 36 measures.

(13)Slovakia has explained that these 36 measures are no longer fully achievable in particular because of a substantial increase in construction costs. Other reasons for amending these measures include obstacles faced in the implementation of the investments, delays or a lack of demand in the procurement phase, solutions for diversifying the production of electricity to reduce dependency on imports from Russia or achieving similar objectives of the affected measures in a more effective way. 

(14)Slovakia has explained that 23 measures are no longer fully achievable because supply chain disruptions, unexpected obstacles, delays related to procurement and other procedures have led to a delay in the implementation of the measures. This concerns, respectively, targets 3 and 4 of investment 1 (improving the energy efficiency of single-family houses) in component 2 (Renovation of Buildings); milestone 1 of reform 1 (land planning reform), milestone 2 of reform 2 (measures for application of nature protection measures landscape, revitalisation of water courses, protected areas) in component 5 (Adaptation to Climate Change); target 7 of investment 1 (digital infrastructure in schools) and target 8 of investment 2 (completion of the school infrastructure) under component 7 (Education for the 21st century); milestone 9 of investment 1 (support for the strategic development of universities) under component 8 (Improving the Performance of Slovak Universities); target 5 of investment 1 (promoting international cooperation and participation in Horizon Europe and EIT projects), target 6 of investment 2 (supporting cooperation between companies, Academia and R&D organisations), milestone 15 and targets 16 and 17 of investment 5 (research and innovation for the digitalisation of the economy), and target 18 of investment 6 (financial instruments to support innovation) under component 9 (More Efficient Management and Strengthening of RDI Funding); target 4 of investment 1 (support tools and assistance for returnees, highly qualified third-country workers and their family members and foreign higher education students studying in Slovakia) and target 7 of investment 3 (scholarships for talented domestic and foreign students) under component 10 (Attracting and Retaining Talents); target 8 of investment 1 (supporting the opening of new primary care practices in underserved areas), milestone 9 and target 10 of investment 2 (new hospital network – construction, reconstruction and equipment), and target 12 of investment 3 (digitalisation in health) under component 11 (Modern and Accessible Healthcare); target 6 of reform 3 (consolidation of the supervision of social care and provision of necessary infrastructure), and investment 3 (enhancing and restoring palliative care capacities) under component 13 (Accessible and High-quality Long-term Socio-health Care), milestone 7 of reform 3 (public procurement procedures) and target 5 of investment 2 (digitalisation of insolvency processes) under component 14 (Improving the Business Environment); target 6 of investment 2 (digitalisation and analytical capacities) under component 15 (Judicial Reform), target 3 of investment 1 (tools and capacity for the fight against corruption and money laundering) and target 5 of investment 2 (equipping and digitalising the police force) under component 16 (Fight against Corruption and Money Laundering, Security and Protection of the Population). On this basis, Slovakia has requested to extend the implementation timeline of the aforementioned milestones and targets, and the Council Implementing Decision should be amended accordingly. On the same basis, Slovakia has requested to extend the implementation timeline of and amend target 7 of investment 2 (digitalisation and analytical capacities) under component 15 (Judicial Reform), and the Council Implementing Decision should be amended accordingly.

(15)Slovakia has explained that four measures are no longer achievable within the timeline nor at the costs estimated in the original RRP because high inflation (especially of construction costs) and supply chain disruptions have caused delays in construction works and increased the costs of the measure considerably. This concerns target 3 of reform 1 (conditions for the implementation of compulsory pre-primary education for children from the age of 5 and introducing a legal entitlement to a place in Kindergartens or other pre-primary education providers from the age of 3) under component 6 (Accessibility, Development, and Quality of Inclusive Education); target 8 of investment 2 (completion of the school infrastructure), under component 7 (Education for the 21st Century); milestone 9 of investment 2 (new hospital network – construction, reconstruction and equipment) under component 11 (Modern and Accessible Healthcare); and targets 7, 8, 9 and 10 of investment 1 (enhancing community-based social care capacities) under component 13 (Accessible and High-quality Long-term Socio-health Care). On this basis, Slovakia has requested to extend the implementation timeline of the aforementioned milestones and targets and to make the aforementioned changes, and the Council Implementing Decision should be amended accordingly.

(16)Slovakia has explained that two measures are amended because Russia’s war of aggression in Ukraine has induced a need to accelerate the reduction of Slovakia’s dependence on imports of natural gas from Russia and diversify the production of electricity. It has also caused delays in the implementation of the measures. Due to abovementioned reasons, investment support is enabled for the transformation of biogas electricity generation facilities to biomethane plants. This concerns target 3 of reform 2 (the legal framework for the promotion of renewable energy sources) and target 5 of investment 2 (modernising the existing renewable electricity sources (repowering)) under component 1 (Renewable energy sources and energy infrastructure). On this basis, Slovakia has requested to amend the aforementioned milestones and targets and to make the aforementioned changes, and the Council Implementing Decision should be amended accordingly.

(17)Slovakia has explained that eleven measures are amended because unforeseen measure-specific challenges have caused delays in the implementation, increased the costs, called for an alternative approach to achieving the measure’s objective, or induced a need to adapt a milestone or target in order to achieve similar objectives in a more effective way. Target 8 of investment 1 (development of low-carbon transport) under component 3 (Sustainable Transport) is amended to take into account inflationary pressure on rail projects; target 15 of investment 1 (removing barriers in school buildings) and target 13 of reform 6 (measures to mitigate the impact of the pandemic in education for primary and secondary school pupils) under component 6 (Accessibility, Development, and Quality of Inclusive Education) are revised to account for the effect of inflation and to reflect the improved administrative approach regarding the tuition programme; milestone 1 of reform 1 (change in funding for universities, including the introduction of performance contracts), milestone 8 of reform 5 (concentration of excellent educational and research capacities) and target 10 of investment 1 (support for the strategic development of universities) under component 8 (Improving the Performance of Slovak Universities) are revised to reflect the postponement of the time at which the share of professionally orientated bachelor programmes shall reach 10% of all higher education programmes, as well as to enable the establishment of consortia in response to a lack of interest among universities to merge (the conditions under which universities can form consortia are close to the conditions under which mergers would have happened); investment 1 (project management and project preparation of investments) and reform 3 (modernisation of diagnostic methods and treatments) under component 12 (Human, Modern and Accessible Mental Health Care) are revised because the preparation of projects will not be done by the Coordination Unit for all investments under component 12. On this basis, Slovakia has requested to amend the aforementioned milestones and targets make the aforementioned changes, and the Council Implementing Decision should be amended accordingly. The approach to upgrading teacher qualifications and introducing the prescriptive funding system for pre-primary education are revised in milestone 1 of reform 1 (providing conditions for the implementation of compulsory pre-primary education for children from the age of 5 and introducing a legal entitlement to a place in kindergarten or other pre-primary education providers from the age of 3) under component 6 (Accessibility, Development and Quality of Inclusive Education) in response to the changed macroeconomic environment and its impact on staff shortages as well as the limited mandate of the incumbent government in preparing the State budget. Pupils for whom pre-primary education is compulsory shall be taught by teachers with an appropriate degree, every kindergarten shall have at least one member of staff with an appropriate degree who is responsible for overseeing pedagogical quality and the entry into force of the new funding system is proposed. On this basis, Slovakia has requested to extend the implementation timeline of the aforementioned milestone, introduce a milestone with sequential number C6-16 of reform 1 (providing conditions for the implementation of compulsory pre-primary education for children from the age of 5 and introducing a legal entitlement to a place in kindergarten or other pre-primary education providers from the age of 3) under component 6 (Accessibility, Development and Quality of Inclusive Education) and to make the aforementioned changes, and the Council Implementing Decision should be amended accordingly. Target 3 and 4 under investment 1 (buildings for the reorganised judicial system) under component 15 (Reform of the Judiciary) are amended to take into account the reduced financial allocation and inflation pressure on the various infrastructure projects, as well as decisions taken following the final legislation under reform 1 (reorganisation of the judicial map), which led to different choices regarding the construction, purchase and/or renovation of court buildings under the revised judicial map. This also includes a partial shift from the construction of new buildings to the renovation of existing ones. Furthermore, target 11 of investment 3 (engaging in multi-country European projects related to the digital economy) under component 17 (Digital Slovakia (State in the Mobile, Cybersecurity, Fast Internet for Everyone, Digital Economy)) is amended to reflect developments on the microchip market. This concerns postponing the timeline for completion of the supercomputer and removing the initially envisaged architecture using integrated microchips, as the technology has not yet become widely available on the market. On this basis, Slovakia has requested to extend the implementation timeline of the aforementioned targets, to amend the aforementioned milestones and targets and to make the aforementioned changes, and the Council Implementing Decision should be amended accordingly.  

(18)The Commission considers that the reasons put forward by Slovakia justify the update pursuant to Article 18(2) of Regulation (EU) 2021/241 and the amendment pursuant to Article 21(2) of that Regulation.

Corrections of clerical errors

(19)43 clerical errors have been identified in the text of the Council Implementing Decision, affecting 20 milestones, 22 targets and 42 measures. The Council Implementing Decision should be amended to correct those clerical errors that do not reflect the content of the RRP submitted to the Commission on 29 April 2021, as agreed between the Commission and Slovakia. Such clerical errors relate to target 6 of investment 3 (increasing the flexibility of electricity systems for greater integration of renewables) under component 1 (Renewable Energy Sources and Energy Infrastructure); milestone 1 of reform 1 (the harmonisation of support mechanisms for the renovation of family houses) and milestone 2, targets 3 and 4 of investment 1 (improving the energy efficiency of family houses), milestone 5 of reform 2 (increasing transparency and streamlining decisions of the Monuments Board of the Slovak Republic) under component 2 (Renovation of Buildings); milestone 6 of reform 2 (public passenger transport reform), reform 4 (the introduction of new policies for the long-term promotion of alternative fuels in the transport sector), targets 7, 8 and 9 of investment 1 (the development of low-carbon transport infrastructure), and target 10 of investment 2 (promoting clean passenger transport) under component 3 (Sustainable Transport); reform 1 (the termination of coal-based electricity production at Nováky power plant and transformation of the Upper Nitra region) and milestone 2 of reform 2 (the competitive scheme for greenhouse gas emissions reduction in industry) under component 4 (Decarbonisation of Industry); milestone 1 of reform 1 (landscape planning) under component 5 (Adaptation to Climate Change); target 3 of reform 1 (providing conditions for the implementation of compulsory pre-primary education for children from the age of 5 and introducing a legal entitlement to a place in kindergarten or other pre-primary education providers from the age of 3), reform 2 (the definition of the concept of special educational needs of children and pupils and the development of a model for eligible support measures in education, including their funding system) and target 13 of reform 6 (compensatory measures to mitigate the impact of the pandemic in education for primary and secondary school pupils) under component 6 (Accessibility, Development and Quality Of Inclusive Education); milestone 1 of reform 1 (reform of the content and form of education (curricular and textbook reform)), milestone 5 and target 6 of reform 2 (preparing and developing teachers for new content and forms of teaching (change in higher education training) and strengthening the professional development of teachers) and target 8 of investment 2 (completion of the school infrastructure) under component 7 (Education for the 21st Century); milestone 1 of reform 1 (change in the funding of universities by introduction of performance contracts), reform 3 (a new approach to accreditation of higher education) and target 10 of investment 1 (investment support for the strategic development of universities) under component 8 (Improving the Performance of Slovak Universities); investment 2 (supporting cooperation between companies, academia and R&D organisations), milestone 9 of investment 3 (excellent science) and milestone 18 of investment 6 (financial instruments to support innovation) and reform 1 (reform of governance, evaluation and support in science, research and innovation) under component 9 (More Efficient Management and Strengthening of R&D&I Funding); investment 1 (support tools and assistance for returnees, highly qualified third-country workers and their family members and foreign higher education students studying in Slovakia) under component 10 (Attracting and Retaining Talents); milestone 6 of reform 4 (optimising the emergency care network and the new definition of emergency care), milestone 9 of investment 2 (new hospital network – construction, reconstruction and equipment) and target 13 of investment 4 (construction and rehabilitation of ambulance stations) under component 11 (Modern and Accessible Healthcare); investment 7 (humanisation of institutional psychiatric care) and investment 8 (training in mental health for staff) under component 12 (Human, Modern and Accessible Mental Health Care); milestones 2 and 3 of reform 1 (integration and financing of long-term social and health care), milestone 4 of reform 2 (assessment of care needs), targets 7, 9 and 10 of investment 1 (enhancing community-based social care capacities), targets 11 and 12 of investment 2 (extension and renewal of after-care and nursing capacities) and target 14 of investment 3 (enhancing and restoring palliative care capacities) under component 13 (Accessible and High-Quality Long-Term Socio-Health Care); milestone 2 of investment 1 (capacities for reforms to reduce regulatory burden) under component 14 (Improving the Business Environment); target 8 of investment 2 (digitalisation and analytical capacities) under component 15 (Judicial Reform); milestones 7 and 8 of investment 2 (equipping and digitalising the police force), target 11 of investment 3 (modernisation of the fire and rescue system) and reform 3 (optimising crisis management) under component 16 (Fight Against Corruption and Money Laundering, Security and Protection of the Population); target 10 of investment 3 (engaging in multi-country European projects related to the digital economy) under component 17 (Digital Slovakia (State in the Mobile, Cybersecurity, Fast Internet for Everyone, Digital Economy)); milestone 1 of reform 1 (improving the sustainability of the pension system) under component 18 (Sound, Sustainable and Competitive Public Finances). Those corrections do not affect the implementation of the measures concerned.

The REPowerEU chapter based on Article 21c of Regulation 2021/241

(20)The REPowerEU chapter includes six new reforms and eight new investments across five Thematic Areas. As part of Thematic Area 1 on energy and permitting processes, Reform 1 promotes sustainable energy through 6 sub-measures, focusing on: 1) optimising procedures for issuing environmental permitting, 2) improving the use of geothermal energy, 3) support for heat pumps, 4) establishment of centres for dissemination of ‘Best Available Technique’, 5) assessment of the trajectories for sustainable use and supply of biomass, and 6) developing and promoting the production of bio-methane, organic fertilizers and the circular bio-economy . Reform 2 supports the green transition and the inclusion of renewable energy sources into the Slovak energy mix, focusing specifically on 1) establishing “go-to” areas for wind energy, 2) an action plan for the national hydrogen strategy and 3) measures aimed at fostering the integration of renewables in the electricity grid. Investment 1 is directed towards the modernization and digitalisation of the transmission and the regional electricity distribution systems, including modernisation of transmission lines and supporting the rollout of the Energy Data Centre.

(21)Thematic Area 2 focuses on improving energy efficiency in buildings and encompasses the following reforms: 1) the creation of a single digital data platform to collect information on the energy performance of all public and private buildings and 2) a reform to improve energy management of state government buildings. The investments in this area aim to result in energy savings of public buildings and households at risk of energy poverty and is combined with a technical support to assist vulnerable groups in defining the right set of measures and processing a grant application. 

(22)Thematic Area 3 includes measures on sustainable transport by scaling up existing measures. Investment 5 is aimed at developing zero emission transport infrastructure and Investment 6 will promote environmentally friendly passenger transport.

(23)Thematic Area 4 focuses on the development of education and skills for the green transition. Reform 6 and investment 7 support the development of an update of curriculum for vocational education schools and a new training programme for teaching staff, an accredited education programme for adult education with a focus on green skills and the provision of physical and technical equipment.

(24)Thematic Areas 5 on Communication and Coordination is composed of investment 8 aimed at providing targeted communication support for the implementation of measures in thematic area 1, 2 and 4. It also includes the strengthening of staff in the National Implementation and Coordination Authority in relation to the implementation of measures introduced under the chapter.

(25)The contribution of the REPowerEU measures to deploying renewable energy sources is expected to help overcome energy supply shortages and reduce the risk of high energy prices. The aim is to benefit all consumers including the most vulnerable ones. The REPowerEU chapter introduces new measures that are expected to contribute to the REPowerEU objective of addressing energy poverty (Article 21c(3)c) and incentivising reduction of energy demand (Article 21c(3)d). The measures will address energy poverty by providing investments and technical assistance to support the renovation of single-family houses specifically for vulnerable groups. The technical support to the targeted households will help in assessing the potential of energy savings, possible energy efficiency measures and assisting owners with grant applications. 

(26)The REPowerEU chapter also includes scaled-up measures affecting four measures under Component 2 (Renovation of buildings), Component 3 (Sustainable transport) and Component 16 (Fight against corruption). The scaled-up measures included in the REPowerEU chapter introduce a substantive improvement in the level of ambition of the measures already included in the national RRP.

(27)The Commission has assessed the modified RRP including the REPowerEU chapter against the assessment criteria laid down in Article 19(3) of Regulation 2021/241.

Balanced response contributing to the six pillars

(28)In accordance with Article 19(3), point (a), of and Annex V, criterion 2.1, to Regulation (EU) 2021/241, the modified RRP including the REPowerEU chapter represents to a large extent (Rating A) a comprehensive and adequately balanced response to the economic and social situation, thereby contributing appropriately to all of the six pillars referred to in Article 3 of that Regulation, taking into account the specific challenges faced by and the financial allocation for the Member State concerned.

(29)The original RRP put forward a balanced set of reforms and investments addressing both the consequences of the COVID-19 pandemic and the main structural socio-economic and environmental challenges affecting Slovakia, pursuing cohesion objectives and contributing towards all of the six pillars referred to in Article 3 of Regulation (EU) 2021/241. For all five key areas included in the Slovak RRP – green economy, education, science and innovation, health, and public administration and digitalisation – the RRP made an explicit and coherent explanation of how they contribute to the six pillars. The focus of the RRP remains unchanged, as the green transition and the digital transformation are at the core of the RRP. The green reforms and investments included in the RRP are boosted by the new REPowerEU measures. Digital reforms and investments remain to help modernise Slovakia, supporting areas with the largest investment gaps such as through the digitalisation of public services and support for schools.

(30)The modification of the plan, along with the REPowerEU chapter, only impacts the assessment of the contribution of the RRP to the first pillar on the green transition. For the other pillars, the nature and extent of the proposed modifications to the RRP do not have an impact on the previous assessment of the plan representing to a large extent a comprehensive and adequately balanced response to the economic and social situation, and on its appropriate contribution to all six pillars referred to in Article 3 of Regulation (EU) 2021/241. The modification will continue strengthening the country's health and economic, social and institutional resilience, as described in the fifth pillar. In particular, the upgraded approach to the minimum qualification requirement on teachers in pre-primary education reduces the impact on staff shortages and thus contributes to improving the resilience and accessibility of the education system in Slovakia. In the area of energy, revisions such as the support to transforming biogas stations to biomethane installations will contribute to reducing Slovakia’s dependence on natural gas, and the addition of the option to replace obsolete boilers by biomass-pellet boilers during the renovation of single-family homes encourages the shift to sustainable forms of heating under the green pillar.

(31)Regarding the first pillar, Slovakia’s modified RRP along with the REPowerEU chapter includes additional measures to address green challenges, in particular by scaling up component 2 (Energy efficiency), component 3 (Sustainable transport), and the introduction of component 19 (the REPowerEU chapter).

(32)The scaled-up measure on renovation of public historic buildings under component 2 is targeting additional buildings and aims at achieving at least 30% primary energy savings, supporting RES installations and climate adaptation measures thus contributing to climate and energy objectives.

(33)The scaled up sustainable transport measures under component 3 contribute to greening public transport in Slovakia. The construction of additional trolley bus infrastructure will benefit the city of Bratislava by reducing congestion and reducing fossil fuel use. Similarly, deployment of additional trams for Bratislava and additional electric multiple units will foster a shift to more climate-friendly transport modes and decrease long-term emissions in the sector. 

(34)The measures in the REPowerEU chapter contribute to achieving the Union’s 2030 climate targets and the objective of EU climate neutrality by 2050 as they aim to accelerate the deployment of renewables by introducing measures to streamline permitting and administrative procedures, reforming the reservation mechanism for connecting new renewable energy sources as well as measures supporting the rollout of geothermal investments, hydrogen technologies and heat pumps. In addition, the new REPowerEU measures foresee support for energy efficiency in public and private buildings, development of low carbon transport infrastructure and sustainable passenger transport and lastly, education and skills development for the green transition. All measures included in the REPowerEU chapter are expected to significantly contribute to the green transition, or to addressing the challenges resulting therefrom.

Addressing all or a significant subset of challenges identified in country-specific recommendations

(35)In accordance with Article 19(3), point (b), of and Annex V, criterion 2.2, to Regulation (EU) 2021/241, the modified RRP including the REPowerEU chapter is expected to contribute to effectively addressing all or a significant subset of challenges (Rating A) identified in the relevant country-specific recommendations addressed to Slovakia, including fiscal aspects thereof, or challenges identified in other relevant documents officially adopted by the Commission in the context of the European Semester. In particular, the modified RRP takes into account the energy-related country-specific recommendations of 2022.

(36)The modified RRP includes an extensive set of mutually reinforcing reforms and investments, contributing especially to addressing Slovakia's economic and social challenges. In particular on energy, new investments and reforms aim at addressing the key challenges identified in the 2022 CSRs related to reducing Slovakia’s high reliance on fossil fuels. 

(37)The key measures in the modified RRP, including in the REPowerEU chapter, include accelerating the deployment of renewables by introducing measures to streamline permitting and administrative procedures and secure the technical grid capacities. Regarding the support for renovations, the REPowerEU chapter aims at creating a single data platform on the energy performance of buildings and invest in the ongoing schemes for renovation of public historic buildings as well as the renovation of single-family houses, while focusing primarily on vulnerable groups. Concerning the recommendation to reduce the high reliance on natural gas, the REPowerEU chapter includes reforms supporting geothermal energy, with positive spill-over effects expected particularly for the heating sector. The reduction of reliance on natural gas in industry is also set to be achieved through the decarbonisation scheme with unchanged grant support contributing to natural gas savings in this sector.    

(38)The investments in the modified RRP continue to address the relevant country-specific recommendations of 2022 in the area of energy, in particular through reforms and investments in the REPowerEU chapter. For renewables, the investment support is extended to include the installation producing bio-methane as well as hydrogen through electrolysis. For the renovation of family houses, an option of replacing obsolete boilers by more efficient biomass-pellet boilers is included, under the condition of compliance with the “do-no-significant harm” principle. These measures are expected to make Slovakia less dependent on the import of fossil fuels, including from Russia. 

Do no significant harm

(39)In accordance with Article 19(3), point (d), of and Annex V, criterion 2.4, to Regulation (EU) 2021/241, the modified RRP including the REPowerEU chapter is expected to ensure that no measure (Rating A) for the implementation of reforms and investments projects included in this RRP does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852 of the European Parliament and of the Council 5 (the principle of ‘do no significant harm’).

(40)The modified plan, including the new Component 19 (REPowerEU chapter) assesses compliance with the “do no significant harm” principle following the methodology set out in the Commission´s technical guidance on the application of “do no significant harm” under the Recovery and Resilience Facility Regulation (2021/C58/01). The assessment is done systematically for each modified reform and investment following the two-step approach. The assessment concludes that for all modified measures, there is either no risk of significant harm or, where a risk is identified, a detailed assessment is conducted demonstrating the absence of significant harm. Slovakia provided a detailed assessment for the new measure of inclusion of biomass boilers in the renovation schemes for buildings. Where needed, the requirements of the “do no significant harm” assessment are enshrined in the design of a measure and specified in a milestone or target of this measure. Based on information provided, it can be concluded that the plan is expected to ensure that no measure does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852.   

Contribution to the REPowerEU objectives

(41)In accordance with Article 19(3), point (da), of and Annex V, criterion 2.12, to Regulation (EU) 2021/241, the REPowerEU chapter is expected to effectively contribute to a large extent (Rating A) to energy security, the diversification of the Union’s energy supply, an increase in the uptake of renewables and in energy efficiency, an increase of energy storage capacities or the necessary reduction of dependence on fossil fuels before 2030.

(42)Reform 1 on the promotion of sustainable energy and Reform 2 on “supporting the green transition and renewables” include several measures that directly contribute to the objective Article 21(c), paragraph (3), point (b) of Regulation (EU) 2021/241, that is, diversification of the Union’s energy supply by increasing the share and accelerating the deployment of renewable energy and increasing the production and uptake of sustainable energy. These measures include the legislative and procedural changes accelerating the environmental permitting processes, removal of barriers to the deployment of heat pumps, geothermal energy and biomethane, a hydrogen action plan, and a comprehensive reform of the grid connection framework for renewables.   Investment 1 aims at increasing the capacity of the electricity distribution and transmission network, which has been identified as a barrier to the connection of intermittent energy sources to the grid. The removal of distribution grid bottlenecks and more transparent rules for connecting intermittent energy sources to the grid are expected to unlock investments increasing the uptake of sustainable energy.

(43)The objectives of Article 21(c), paragraph (3), point (b) of boosting energy efficiency in buildings and (d) of Regulation (EU) 2021/241 of incentivizing the reduction of energy demand are addressed by Reforms 3 and 4, and investments 2 and 3. Reform 3 will create a single data platform for the centralisation of energy performance certificates and passports of all buildings. Reform 4 will establish a centralised management system for public buildings with the objective of improving their energy management and facilitating a prioritised investment in the worst energy performing buildings. Investments 2 and 3 will support the renovation of state building, and a scale-up of component 2 (investment 2) targeting the renovation of historical and listed buildings.  

(44)REPowerEU measures address energy poverty by supporting the renovation of single family houses of vulnerable groups under Investment 4. Vulnerable households will also benefit from targeted, technical support on the ground in assessing energy savings potential of their households, advise on possible energy efficiency measures and assistance in grant application under Reform 5. The measures addressing sustainable transport are expected to contribute to the REPowerEU objective of supporting zero-emission transport and its infrastructure, in accordance with Article 21c, paragraph (3), point (e), by providing support for the reduction of the consumption of fossil fuels in the transport sector, making it more efficient, as well as accelerating the transition to zero-emission vehicles in public transport through electrification. In particular, the investments envisaged are top-ups of existing measures in Slovakia’s RRP Component 3, specifically for the deployment of trolleybus traction lines, deployment of trams, and train electric multiple units.

(45)Reform 6, together with investment 7, addresses the REPowerEU objective on the acceleration of workforce requalification towards green skills, in accordance with Article 21c, paragraph (3), point (f). Reform 6 will update the current education and training programmes to reflect the needs for green skills in the labour market. Investment 7 will enable thirteen schools to adapt the schooling spaces and furnish schools with adequate equipment for the theoretical and practical teaching focusing on renewable energy sources or electromobility.

(46)The REPowerEU measures are coherent with Slovakia’s policy framework aimed at reducing greenhouse gas emissions and increasing the share of renewable energy sources. The measures also reinforce those included in the original RRP on energy efficiency, renovation of building and strengthening the electricity network as they will eventually result in increasing shares of renewable energy and decreased energy demand.

(47)The REPowerEU measures have a strong focus on accelerating the deployment of renewable energy sources and their integration into the electricity network, which will allow Slovakia to increase the share of domestic energy sources in its energy mix, while measures in Component 1 of the current Council Implementing Decision lifted the moratorium for connecting new renewables to the grid, measures in the REPowerEU chapter address the outstanding technical and administrative bottlenecks in permitting and grid connection are being. Moreover, the demarcation of pilot go-to areas for wind energy will facilitate investments in a technology that was not directly supported by the current Council Implementing Decision.  

(48)In terms of energy efficiency, the central focus of the new measures is the support of renovations in vulnerable households, together with the technical assistance on the ground. Moreover, reform 3 will improve data collection on the energy performance of all buildings, and reform 4 will improve the prioritisation of renovations in public and state buildings. This focus on boosting energy efficiency measures in building renovations will contribute to reduce the need for importing fuel sources and therefore increase the country’s energy security. The REPowerEU measures also have a focus on the deployment of zero-emission transport, namely through an increase of ambition of existing measures for the deployment of rail, tramways, and trolleybus, which aims at reducing the use of fossil fuels and encouraging a modal switch to cleaner alternatives.

Measures having a cross-border or multi-country dimension or effect

(49)In accordance with Article 19(3), point (db), of and Annex V, criterion 2.13, to Regulation (EU) 2021/241, the measures included in the REPowerEU chapter are expected to a high extent (Rating A) to have a cross-border or multi-country dimension or effect.

(50)Of the 14 measures in the Slovak REPowerEU chapter, eight have a cross-border dimension. The largest investment with a cross-border or multi-country dimension concerns the modernisation and digitalisation of transmission and distribution networks. With the aim of upgrading 250 km of transmission lines, this will help maintain the transmission of electricity generated in renewables from abroad (in particular electricity flows from of renewables from Northern Europe towards the south of Europe). It will also directly contribute to the integration of electricity coming from RES into the network and contribute to decreasing the demand for fossil fuels. 

(51)Measures on increasing energy efficiency in renovations of buildings, including the restoration of historical buildings or the refurbishment of single family households, also have a relevant cross-border dimension as they will contribute to reducing the demand of imported fossil fuels.  

(52)As a result, these measures are expected to reduce the dependency on fossil fuels and to reducing energy demand and are therefore considered as having a positive cross-border effect involving the energy grid of neighbouring Member States and the EU as whole, as established in the Commission’s guidance on Recovery and Resilience Plans in the context of REPowerEU (2023/C 80/01). 

(53)The total allocation for cross-border investments amount to is EUR 257 990 151, corresponding to approximately 64,06% of the estimated cost of the REPowerEU chapter.

Contribution to the green transition including biodiversity

(54)In accordance with Article 19(3), point (e), of and Annex V, criterion 2.5, to Regulation (EU) 2021/241, the modified RRP including the REPowerEU chapter, contains measures that contribute to a large extent Rating A to the green transition, including biodiversity, or to addressing the challenges resulting therefrom. The measures supporting climate objectives account for an amount which represents 45.7% of the RRP’s total allocation and 85.29% of the total estimated costs of measures in the REPowerEU chapter calculated in accordance with the methodology set out in Annex VI to that Regulation. In accordance with Article 17 of Regulation (EU) 2021/241, the modified RRP including the REPowerEU chapter is consistent with the information included in the National Energy and Climate Plan 2021-2030.

(55)The modified plan maintains measures supporting the green transition that contribute to achieving the 2030-2050 targets and the objective of EU’s climate neutrality by 2050, as well as fostering biodiversity. For instance, environmental and climate adaptation measures in the plan will finance the consolidation of protected lands, restore watercourses, and require Slovakia to revise its waste management legislation to increase the potential of the circular economy. The plan also features a considerable industry decarbonisation scheme, a reform committing the Slovak government to transit away from coal in the Upper Nitra region, the deployment of sustainable transportation by modernising the country’s rail infrastructure and incentivising a modal shift from carbon-intensive means of transportation, as well as major investments into green renovations of family homes and public buildings.

(56)In addition to the measures in the original RRP, measures in Slovakia’s REPowerEU chapter considerably reduce the greenhouse gas intensity of energy used in Slovakia and contribute to achieving the 2030-2050 targets and the Union’s objective of climate neutrality by 2050, and hence positively contribute to the green transition. Reforms and investments in the chapter aim to incentivise energy saving measures, diversify energy supplies and accelerate the deployment of renewable energy sources in both industry and households, including electricity generation and upgrading of the electricity transmission system. Furthermore, REPowerEU measures focus on low-carbon transportation, the renovation of public buildings and those of private households at risk of energy poverty and developing green and sustainability management skills in the broader population and workforce to support the country’s overall transition towards renewable energy. These measures are expected to have a lasting impact on the green transition by accelerating the phase out of fossil fuels towards a sustainable renewable energy system in Slovakia.

Contribution to the digital transition

(57)In accordance with Article 19(3), point (f), of and Annex V, criterion 2.6, to Regulation (EU) 2021/241, the modified RRP contains measures that contribute to a large extent to the digital transition or to addressing the challenges resulting from it. The measures supporting digital objectives account for an amount which represents 20.5% of the modified RRP’s total allocation calculated in accordance with the methodology set out in Annex VII of that Regulation.

(58)The positive assessment of the contribution to the digital transition provided in the Council Implementing Decision of 13 July 2021 remains valid. The modified RRP entails a reduced financial allocation and reduced targets in the context of the Article 18(2) update for several measures contributing to the digital transition. This also includes deletion of the investment I9.T20 (Support for a single grant IT system) under Component 9 (More efficient governance and strengthening RDI funding), which contributed to digital transition.

(59)The REPowerEU chapter is expected to contribute to the digital transition and to addressing the resulting challenges by modernising the transmission and distribution grids, establishing an energy data centre for the electricity grid and creating a unified digital platform to store relevant energy data of buildings. In accordance with Article 21c(5) of Regulation (EU) 2021/241, reforms and investments in the REPowerEU chapter are not to be taken into account when calculating the plan’s total allocation for the purpose of applying the digital target requirement set by that regulation.

Costing

(60)In accordance with Article 19(3), point (i), of and Annex V, criterion 2.9, to Regulation (EU) 2021/241, the justification provided in the modified RRP including the REPowerEU chapter on the amount of the estimated total costs of the RRP is to a medium extent (Rating B) reasonable and plausible, is in line with the principle of cost efficiency and is commensurate to the expected national economic and social impact. 

(61)The outcome of the costing assessment in the original Council Implementing Decision (EU) 2021/0163 therefore remains unchanged. Slovakia’s justification on the amount of the estimates of total costs of the RRP were reasonable and plausible to a medium extent, in line with the principle of cost efficiency, and was commensurate to the expected national and economic impact. For a limited number of measures, cost benchmarks were less clear, based on little comparable information. Demarcation with other financing sources for projects was also not always clearly indicated, but safeguards were put in place to prevent double funding.

(62)The assessment of the cost estimates for the new investments and the REPowerEU measures show that most of the costs are reasonable and plausible, according to the information provided. For some amended original measures as well as new measures and measures in the REPowerEU chapter, information on the reasonability and plausibility of cost estimates is limited or missing. This prevents an A rating under the given assessment criterion. Changes in the cost estimates for amended measures were justified and proportional and as such the reasonability and plausibility of these cost estimates were not altered compared to the original RRP. Details on the methodology and the assumptions used to make the cost estimates were justified and proportional throughout most of the modified RRP. Overall, the estimated total costs of the modified RRP are in line with the principle of cost-efficiency and commensurate to the expected national economic and social impact.

Any other assessment criteria

(63)The Commission considers that the modifications put forward by Slovakia do not affect the positive assessment of the RRP set out in the Council Implementing Decision of 13 July 2021 on the approval of the assessment of the RRP for Slovakia regarding the relevance, effectiveness, efficiency and coherence of the RRP against the assessment criteria laid down in Article 19(3), points (c), (g), (h), (j), and (k).

Consultation process

(64)During the preparation of the modified RRP including the REPowerEU chapter, Slovakia benefited from support through Regulation (EU) 2021/240 of the European Parliament and of the Council of 10 February 2021 establishing a Technical Support Instrument (“Support to REPowerEU”). Stakeholders were involved in the preparation of the report, which provided input for the design on measures under REPowerEU. The Slovak authorities have consulted stakeholders through several consultation platforms, including a formal two-week consultation process, where both government bodies and relevant stakeholders (e.g. industry associations and NGOs such as the Climate Coalition) commented the proposals. A tripartite consultation of social and economic partners took place in parallel. The Slovak authorities took comments regarding REPowerEU into account for instance by including support for heat pumps and clarifying demarcation lines with other EU funds. 

(65)In the implementation of the modified plan including the REPowerEU chapter, stakeholders are consulted in the framework of the Council of the Slovak Government for the Recovery and Resilience Plan (established in December 2021) composed of key stakeholders. To ensure ownership by the relevant actors, it is crucial to involve all local authorities and stakeholders concerned, including social partners, throughout the implementation of the investments and reforms included in the modified RRP including the REPowerEU chapter.

Positive assessment

(66)Following the positive assessment of the Commission concerning the modified RRP including the REPowerEU chapter, with the finding that the plan satisfactorily complies with the criteria for assessment set out in Regulation (EU) 2021/241, in accordance with Article 20(2) of and Annex V to that Regulation, the reforms and investment projects necessary for the implementation of the modified RRP including the REPowerEU chapter, the relevant milestones, targets and indicators, and the amount made available from the Union for the implementation of the modified RRP including the REPowerEU chapter in the form of non-repayable financial support should be set out.

Financial contribution

(67)The estimated total cost of the modified RRP including the REPowerEU chapter of Slovakia is EUR 6 408 465 019. As the amount of the estimated total costs of the modified RRP is lower than the updated maximum financial contribution available for Slovakia, the financial contribution calculated in accordance with Article 11 allocated for Slovakia's modified RRP including the REPowerEU chapter should be equal to the amount of the estimated total costs of the modified RRP This amount is equal to 6 005 747 815. 

(68)Pursuant to Article 21a(5) of Regulation (EU) 2021/241, on 1 March 2023 Slovakia submitted a request for the allocation of the revenue referred to in Article 21a (1) of that Regulation, shared between Member States on the basis of the indicators set out in the methodology in Annex IVa to Regulation (EU) 2021/241. The estimated total costs of the measures referred to in Article 21c(3), points (b) to (f) included in the REPowerEU chapter is EUR 402 717 204. As this amount is higher than the allocation share available for Slovakia, the additional non-repayable financial support available for Slovakia should be equal to the allocation share. This amount is equal to EUR 366 409 448.

(69)Additionally, in accordance with Article 4a of Regulation (EU) 2021/1755 6 , on 1 March 2023 Slovakia submitted a reasoned request to transfer all its remaining provisional allocation from the resources of the Brexit Adjustment Reserve to the Facility, amounting to EUR 36 307 747. That amount should be made available to support the reforms and investments in the REPowerEU chapter as additional non-repayable financial support.

(70)The total financial contribution available to Slovakia should be EUR 6 408 465 010.

REPowerEU Pre-financing

(71)Slovakia has requested the following funding for the implementation of its REPowerEU chapter: transfer of EUR 36 307 747 from the provisional allocation from the resources of the Brexit Adjustment Reserve, and EUR 366 409 448 from the revenue from the Emissions Trading System under Directive 2003/87/EC of the European Parliament and of the Council.

(72)For those amounts, pursuant to Article 21d of Regulation (EU) 2021/241, on 26 April 2023 Slovakia has requested pre-financing of 20% of the funding requested Subject to available resources, that pre-financing should be made available to Slovakia subject to the entry into force of, and in accordance with, an agreement to be concluded between the Commission and Slovakia pursuant to Article 23(1) of Regulation (EU) 2021/241 (the 'financing agreement').

(73)Council Implementing Decision of 13 July 2021 on the approval of the assessment of the RRP for Slovakia should therefore be amended accordingly. For the sake of clarity, the Annex to that Implementing Decision should be replaced entirely,

HAS ADOPTED THIS DECISION:

Article 1

Implementing Decision (EU) of 13 July 2021 on the approval of the assessment of the recovery and resilience plan for Slovakia is amended as follows:

(1) Article 1 is replaced by the following:

“Article 1

The assessment of the modified RRP of Slovakia on the basis of the criteria provided for in Article 19(3) of Regulation (EU) 2021/241 is approved. The reforms and investment projects under the RRP, the arrangements and timetable for the monitoring and implementation of the RRP, including the relevant milestones and targets, the relevant indicators relating to the fulfilment of the envisaged milestones and targets, and the arrangements for providing full access by the Commission to the underlying relevant data are set out in the Annex to this Decision.”;

(2) In Article 2, paragraphs 1 and 2 are replaced by the following:

1. “The Union shall make available to Slovakia a financial contribution in the form of non-repayable support amounting to EUR 6 408 465 010. 7 That contribution includes:

(a)an amount of EUR 4 642 807 501 that shall be available to be legally committed by 31 December 2022;

(b)an amount of EUR 1 362 940 314 that shall be available to be legally committed from 1 January 2023 until 31 December 2023;

(c)an amount of EUR 366 409 448 8 , in accordance with Article 21a(6) of Regulation (EU) 2021/241, exclusively for measures referred to in Article 21c of that Regulation, with the exception of measures referred to in Article 21c (3), point (a);

(d)an amount of EUR 36 307 747, transferred from the Brexit Adjustment Reserve to the Facility.

2.The Union financial contribution shall be made available by the Commission to Slovakia in instalments in accordance with the Annex to this Decision.

An amount of EUR 80 543 439 shall be made available as pre-financing in accordance with Article 21d of Regulation (EU) 2021/241. That pre-financing may be disbursed by the Commission in up to two payments.

The pre-financing and instalments may be disbursed by the Commission in one or several tranches. The size of the tranches shall be subject to the availability of funding.”;

(3) The Annex is replaced by the text in the Annex to this Decision:

Article 2
Addressee

This Decision is addressed to the Slovak Republic.

Done at Brussels,

(1)    OJ L 57, 18.2.2021, p. 17.

(2)    ST 10156/21 INIT; ST 10156/21 COR 1; ST 10156/21 ADD 1.

(3)    This amount corresponds to the financial allocation after deduction of Slovakia’s proportional share of the expenses of Article 6(2) of Regulation (EU) 2021/241, calculated in accordance with the methodology of Article 11 of that Regulation.

(4)    This amount corresponds to the financial allocation after deduction of Slovakia’s proportional share of the expenses of Article 6(2) of Regulation (EU) 2021/241, calculated in accordance with the methodology of Article 11 of that Regulation.

(5)    Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 on the establishment of a framework to facilitate sustainable investment, and amending Regulation (EU) 2019/2088 (OJ L 198, 22.6.2020, p. 13).

(6)    Regulation (EU) 2021/1755 of the European Parliament and of the Council of 6 October 2021 establishing the Brexit Adjustment Reserve (OJ L 357 8.10.2021, p. 1).

(7)    This amount corresponds to the financial allocation after deduction of the Slovakia’s proportional share of the expenses of Article 6(2) of Regulation (EU) 2021/241, calculated in accordance with the methodology of Article 11 of that Regulation.

(8)    This amount corresponds to the financial allocation after deduction of the Slovakia’s proportional share of the expenses of Article 6(2) of Regulation (EU) 2021/241, calculated in accordance with the methodology of Article 11 of that Regulation.

EUROPEAN COMMISSION

Brussels, 26.6.2023

COM(2023) 375 final

ANNEX

to the

Proposal for a COUNCIL IMPLEMENTING DECISION

amending Implementing Decision (EU) (ST 10156/21 INT; ST 10156/21 ADD 1) on the approval of the assessment of the recovery and resilience plan for Slovakia

{SWD(2023) 238 final}

ANNEX

SECTION 1: REFORMS AND INVESTMENTS UNDER THE RECOVERY AND RESILIENCE PLAN

1. Description of Reforms and Investments

COMPONENT 1: Renewable energy sources and energy infrastructure

The purpose of the ‘renewable energy sources and energy infrastructure’ component of the Slovak recovery and resilience plan is to contribute directly to attaining the 2030 climate change targets. According to the Slovak National Energy and Climate Plan, achieving the climate objectives shall require a significant shift towards renewable energy sources in the Slovak energy mix.

In this context, this component of the Slovak recovery and resilience plan aims at supporting faster roll-out of renewable investments. In view of this goal, the reforms shall modernise the Slovak electricity market and create an appropriate legislative environment. The law amendments shall particularly improve the access for new market participants, increase certainty and confidence in the state support measures and improve integration of renewables to the Slovak electricity grid. The investment support shall be channelled to increasing the capacities of new renewable sources as well as to the repowering of existing renewable installations, including modernisation of biogas, transformation of biogas electricity generation facilities to biomethane plants, and hydropower-stations. The investments into increasing flexibility of the electricity grid shall include support to new battery storages, including hydrogen-based solutions, as well as to increasing the electricity balancing capacity of hydropower installations.

The component includes two reforms and three investments.

These measures contribute to the green transition and climate neutrality objective, as well as to meeting Slovakia’s National Energy and Climate Plan commitments. The component strengthens the strategic autonomy and security of Slovakia through increasing the share of domestic energy sources, as imports from third countries account for a significant part of its consumption. The investments shall add to the job creation at local level, including for SME sector.

It is expected that no measure in this component does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measures and the mitigating steps set out in the recovery and resilience plan in accordance with the DNSH Technical Guidance (2021/C58/01).

The investments and reforms shall contribute to addressing the Country Specific Recommendation conveyed to Slovakia in 2020, on the need to “focus investment on the green digital transitions, in particular on clean and efficient production and use of energy and resources” (Country Specific Recommendation 3/2020).

A.1.    Description of the reforms and investments for non-repayable financial support

Reform 1: Adapting of the electricity legal framework 

The purpose of the reform is to improve the legal framework of the Slovak electricity market by amending Act 251/2012 Coll. on energy and Act 250/2012 Coll. on regulation in network industries in accordance with the requirements of Directive 2019/944. Furthermore, the adapted legal structure shall facilitate the new activities and access of participants to the electricity market (energy communities, aggregator, self-consumer, electricity storage), while increasing overall flexibility of electricity system and improving the possibilities for connecting of new renewables to the Slovak grid.

This reform also foresees (under Milestone 2) a measure aiming at releasing the technical capacities for electricity transmission within the domestic electricity system, facilitated through the increase in capacity of the electricity interconnection profile between Slovakia and Hungary.

The implementation of the reform shall be completed by 31 December 2022.

Reform 2: The legal framework for the promotion of renewable energy sources 

The purpose of the reform is to promote the roll-out of new renewable energy sources. The new law amendments shall create efficient support mechanisms for increasing the share of renewables in transport, electricity and heating sector. The legal framework shall be modified by amending the Acts 309/2009 Coll. on promotion of renewable energy sources and high-efficiency cogeneration and the Act 657/2004 Coll. on thermal energy.

The reform shall also include the adoption of a long-term auctioning plan for new renewable sources. This measure shall contribute to better predictability of the overall installed renewable capacity, creating more favourable investment environment for private investors.

Furthermore, the reform shall incorporate the adoption of investment schemes for support of the renewable electricity sources. The Ministry of Economy shall adopt an auction scheme for new renewable energy sources (link to Investment 1, Component 1) and support schemes for investments on repowering (link to Investment 2, Component 1) and increasing flexibility of the electricity system (link to Investment 3, Component 1). The investment policies of the schemes shall strictly adhere to both EU and national environmental legislation as well as to the Do-Not-Significant-Harm Technical Guidance (2021/C58/01) of supported activities and companies. Only investments into hydropower that are in line with the EU acquis shall be supported by the Slovak recovery and resilience plan.

The implementation of reform shall be completed by 31 December 2022.

Investment 1: Construction of the new renewable electricity sources

The purpose of the measure is to support the roll out of investments into the new renewable sources of electricity. Of the overall objective to increase the new renewable electricity capacity by 122.4 MW, the support scheme shall deliver at least 120 MW of new capacity induced by the new renewable sources under the measure connected to the grid. The competitive auction mechanism shall be open to a wide range of renewable technologies, with clear project delivery deadlines and rules. No investments to hydropower shall be eligible under Investment 1 (Component 1). The Ministry of Economy shall be responsible for the implementation of the scheme and collecting the information on realised capacity from project promoters.

The auction support scheme shall respect the investment policies as set out under the milestone 3 of the Component 1 (Reform 2: Legal framework for the promotion of renewable energy sources’).

The implementation of the investment is expected to start by 30 June 2021 and shall be completed by 30 June 2026.

Investment 2: Modernising the existing renewable energy sources (repowering)

The objective of the measure is to extend the technological lifetime, upgrade and increase the efficiency of existing renewable energy source capacities, as well as expand sustainable biomethane production in line with RED II. The modernization shall concern the refurbishment of biogas stations, the transformation of biogas-based electricity generation facilities into biomethane plants, and hydropower generation facilities. The scheme shall deliver at least 83 MW of modernised (repowering) installed capacity connected to the grids that are expected to be reconstructed for electricity generation or biomethane production, supported under the measure. The Ministry of Economy shall be responsible for the implementation of the investment and collecting the information on realised capacity from project promoters.

The support for the different types of modernized renewable equipment shall be assessed separately, taking into account the principle of cost-effectivenessThe support schemes shall respect the investment policies as set out under the milestone 3 of the Component 1 (Reform 2: Legal framework for the promotion of renewable energy sources’).

The implementation of the investment is expected to start by 1 January 2022 and shall be completed by 30 June 2026.

Investment 3: Increasing the flexibility of electricity systems for greater integration of renewables

The purpose of the investment is to increase the flexibility of Slovak electricity network. The phasing out of the flexible fossil electricity sources causes a loss of balancing performance, with a negative impact on the system’s ability to integrate variable renewable energy sources.

The investment shall target the support to electricity storages facilities, including hydrogen-based solutions, and to increasing the electricity balancing capacity in hydro-power plants. The support scheme shall deliver at least 52 MW cumulative increase of balancing capacity, induced by the new storage capacities and increase of balancing capacity of existing hydropower plants, connected to the grid. The exact breakdown of 52 MW target shall depend on demand of relevant subjects. The investments into the balancing capacity of the hydropower plants shall not exceed EUR 12 000 000 under the measure. The investments shall be highly complementary to other actions in the component, as it contributes to increasing the free grid capacity for integrating the renewable energy sources.

The support shall be granted under the technologically specific schemes, taking into account the principle of cost-effectiveness. The schemes shall respect the conditions on investment policies as specified under the milestone 3 of the Component 1 (Reform 2: Legal framework for the promotion of renewable energy sources’).

The implementation of the investment is expected to start by 1 January 2022 and shall be completed by 30 June 2026.

A.2.    Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support.

COMPONENT 2: Renovation of buildings

According to the Slovak National Energy and Climate Plan and the Long-term renovation Strategy for Buildings, reaching the 2030 and 2050 EU emission reduction objectives requires a significant shift from the implementation of partial to medium (30-60% primary energy savings) and deep (over 60%) renovation of buildings.

This component of the Slovak recovery and resilience plan aims at reduction of energy consumption by pursuing a comprehensive renovation of family houses, public historic and listed buildings. It combines measures to improve energy performance of buildings by achieving at least 30% of primary energy savings with measures to foster climate adaptation (such as installing green roofs, water retention system). The component contributes to the climate and environmental objectives, while boosting the recovery and competitiveness of the construction sector by creating more jobs, in particular for SMEs at local level.

It is expected that no measure in this component does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measures and the mitigating steps set out in the recovery and resilience plan in accordance with the DNSH Technical Guidance (2021/C58/01).

The component includes 3 reforms and 2 investments.  

These investments and reforms shall contribute to addressing the Country Specific Recommendations addressed to Slovakia in the past two years, on the need to “focus investment-related policy on energy efficiency” (Country Specific Recommendation 3/2019) and to “focus investment on the green transition” (Country Specific Recommendation 3/2020).  

A.1.  Description of the reforms and investments for non-repayable financial support 

.Reform 1: The harmonisation of support mechanisms for the renovation of family houses.  

The objective of the reform is to map, align and bring together different support schemes, to uniform and streamline the renovation process, and to provide incentives to owners for implementing a wider range of renovation measures. Design of the support schemes, criteria and conditions as well as implementation steps shall be outlined in the implementation plan to be published by Slovak Environmental Agency by 30 September 2022. To ensure effective and timely implementation, capacities of the Slovak Environmental Agency shall be strengthened. In the implementation phase, house owners shall be reached out to through a communication campaign and to-be-established regional offices as well as by providing a technical assistance and consultation.  

The implementation of the reform shall be completed by 30 September 2022. 

Investment 1: Improving energy efficiency of family houses.  

The objective of the investment is to complete the renovation of at least 25 164 single family houses, while achieving on average at least 30% primary energy savings. The investment is targeted to the owners of older family houses. In addition to traditional energy savings measures such as thermal insulation, window replacement, the mechanism shall enable replacing inefficient heat and hot water sources with high efficiency installations or installing new renewable energy devices. Where possible, measures to increase climate resilience of buildings (such as vegetation roofs, rainwater capture) shall apply. To mobilise the comprehensive and green renovation, support schemes shall include a combination of mandatory and optional part. A financial contribution of owners is expected. Energy savings shall be verified primarily through energy performance certificates or other corresponding documents.  

Investment measures linked to renovation of buildings shall comply with DNSH requirements, including, the reuse and recycling of construction and demolition waste and the gas boiler replacement scheme, which shall be a small part of the overall renovation programme.

In case biomass boilers are included in the renovation scheme, the replacement of obsolete coal/oil/biomass boilers by biomass boilers shall be allowed, if replaced by high-efficiency biomass boilers in one of the two highest energy efficiency classes under the energy labelling regulation fuelled by pellets. In addition, the replacement of obsolete gas boilers by biomass boilers is possible if replaced by pellet based biomass boilers in one of the two highest energy efficiency classes under the energy labelling regulation. No replacement of gas boilers by biomass boilers is allowed in Air Quality zones with exceedance of PM10 limit values.

The implementation of the investment is expected to start at the latest by 30 September 2022 and shall be completed by 30 June 2026. 

Reform 2: Increasing transparency and streamlining decisions of the Monuments Board of the Slovak Republic. 

The reform aims at improving quality and efficiency of the decision-making process of the Monuments Board of the Slovak Republic by developing three methodologies to:

·classify the monuments endowment,

·set objective criteria by which Monuments Board makes decisions and

·quantify the costs associated with the interventions of the Monuments Board

In addition, the objective is to reform the mapping of state-owned monuments by assessing their basic technical aspects, construction, economic, energy-related and other aspects. The mapping shall result in adopting a diagnostics of at least 1000 relevant state-owned monuments. The reform shall facilitate investment decisions on renovation with a view to preserving the monumental value as well as improving energy efficiency, where applicable.  

The implementation of the reform shall be completed by 31 December 2023. 

Investment 2: Renovation of historical and listed public buildings.  

Historical and listed public buildings are among the worst energy performing buildings and require a tailored-made approach to preserve and protect their cultural value and heritage. The objective of the investment is to improve the energy performance and structural conditions of the historical and listed public buildings while protecting its historical and cultural values and improving accessibility of the buildings. Of the overall objective to renovate 104 024 m2, at least 93 622 m2 floor areas of historical and listed public buildings are renovated, while achieving on average at least 30% of primary energy savings. The investment is expected to result in renovation of around 100 buildings and shall be accompanied by an information campaign. Energy savings shall be monitored and verified through energy performance certificates.  

Investment measures linked to renovation of buildings shall comply with DNSH requirements, including the reuse and recycling of construction and demolition waste and the boiler replacement scheme, which shall be a small part of the overall renovation programme.

The implementation of the investment shall be completed by 30 June 2026. 

Reform 3: The management of construction and demolition waste.  

The reform addresses the very low recycling rate of Slovakia and is centred on the revision of waste management legislation to increase the potential of the circular economy in the construction and demolition waste. The Ministry of Environment of the Slovak Republic shall table the waste legislation amendment, which shall require that at least 70% of non-hazardous construction and demolition waste generated on construction is prepared for re-use or sent for recycling. In addition, the reform shall introduce a mandatory selective demolition, quality standards for recycling from construction and demolition waste, mandatory green public procurement for the contracting of construction works, simplify the rules and improve data collection systems for construction waste. Once in force, the legislation shall ensure “do-no-significant harm” compliance with the requirement of the 70% recycling and reusing of non- hazardous demolition and construction waste to apply to renovation and construction of buildings financed under the Recovery and Resilience Facility. .  

The implementation of the reform shall be completed by 30 June 2022.   

A.2.    Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support.

   COMPONENT 3: Sustainable transport

The component of the Slovak recovery and resilience plan aims at increasing the share of environmentally friendly forms of transport, through measures and smart solutions based on data analysis, to increase the number of passengers travelling by rail and public passenger transport, the volume of goods transported in environmentally friendly intermodal transport, as well as to support the development of alternative propulsion infrastructure, thereby reducing CO2 emissions in transport and improving air quality. Smart and digital investments shall support faster, more reliable and more efficient rail and clean public passenger transport, motivating passengers to switch from cars and other carbon-based means of transport. The component shall allow a wider use of alternative propulsions for sustainable, environmentally friendly, affordable and smart transport, while also promoting the use of smart grids. It shall contribute to the competitiveness of the economy by creating need market conditions for the suppliers of transport machinery.

The component includes four reforms and four investments.

It is expected that no measure in this component does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measures and the mitigating steps set out in the recovery and resilience plan in accordance with the DNSH Technical Guidance (2021/C58/01).

Reforms and investment under the component address directly the Council Recommendation on the 2020 National Reform Programme of Slovakia and the Council opinion on the 2020 Stability Programme of Slovakia, according to which Slovakia "shall implement ready public investment projects as soon as possible and support private sector investment to support economic recovery. Focus investment on the green and digital transitions, in particular on clean and efficient production and use of energy and resources, sustainable public transport and waste management.” 

The component includes four reforms and four investments.

A.1.    Description of the reforms and investments for non-repayable financial support

Reform 1 on the preparation of transport investment projects.

The reform aims at improving the management of investments and increasing their economic benefits. This shall be achieved through the following measures:

·the establishment by 30 June 2021 of an investment plan for railway infrastructure projects prioritising projects according to their value for money;

·amendments, by 31 March 2023 to the Railways Act and related legislation simplifying and streamlining the legislative and technical requirements for transport infrastructure parameters;

·the publication by 31 December 2021 of a methodology determining how to identify projects with the highest value for money possible and contribute to the objective of passenger modal shift from individual road transport to cycling.

The implementation of the reform shall be completed by 31 March 2023.   

Reform 2 on public passenger transport.

The reform aims at improving the provision of passenger transport. A new transport service plan, followed by the optimisation of rail passenger transport, shall form a major part of the comprehensive reform of public transport. The reform shall be supported by new legislation defining rules, responsibilities and obligations in the coordination, ordering and financing of regional bus and train services. The legislation shall define a national authority to coordinate, in cooperation with regional integrators, the creation of a national integrated transport system with a unified fare, as well as to coordinate the preparation and implementation of public procurement procedures for both public passenger rail services and vehicles purchased with the support of EU funds for the operation of these routes in previous periods. The frequency of rail transport on the lines with the highest potential for transferring traffic from cars to trains shall be increased, allowing for better coordination of regional public bus and train services. The following specific measures shall underpin this reform: 

·By 31 March 2023 a new law shall create public passenger transport standards and streamline the public service order, which is currently fragmented and insufficiently coordinated between the State, counties, cities and municipalities.

·By 31 December 2023 optimised rail transport graphics shall be published;

·By 31 December 2026 an integrated transport system is created, allowing multi-modal public passenger transport to travel on a single ticket. It shall be operational in at least 6 counties.

The last milestone related to the implementation of the reform shall be completed by 30 June 2026.

Reform 3 on intermodal freight transport.

The reform shall support increased inter-modality through procurement, the coordination of logistics and promoting the launch of new intermodal routes. The objective of this reform is to shift 30 % of road transport over 300 km to rail or waterborne by 2030 and over 50 % to 2050 (compared to 2005). It shall do so notably by promoting the interest of carriers in shifting road freight to rail/intermodal transport, as well as preventing further modal shift of rail transport. The preparation and approval of a Concept of intermodal transport development, including the proposal for necessary legislative changes, shall make it possible to adopt measures for the systemic development of environmentally friendly freight transport modes. Support shall be aimed at removing technical problems in the transition to intermodal transport and making it more attractive.

The implementation of the reform is expected to start by 31 December 2021 and shall be completed by 31 December 2022.

Reform 4 on the introduction of new policies for the long-term promotion of alternative fuels in the transport sector.

The reform shall be supported through the entry into force, by 31 December 2022 of new legislative measures shall reform distribution tariffs, simplify and accelerate the process of constructing alternative propulsion infrastructure. They shall also introduce a ‘Recharging Point Rights’ and a stable, predictable multi-annual framework to support the construction of relevant alternative propulsion infrastructure.

Investment 1 on the development of low-carbon transport infrastructure.

The investment shall support decarbonisation by electrification of railway lines, upgrading railway lines, by constructing or modernising tram and trolleybus lines, and constructing cycling infrastructure. A "redesign of the European Timetabling Process – TTR" shall take place and a new security system based on digital technologies shall be introduced to enable the automation of rail traffic management. The investment shall be based on Reform 1.

The implementation of the investment shall be completed by 30 June 2026.

Investment 2 promoting clean passenger transport.

The investment shall do so by increasing the attractiveness of rail passenger transport and downstream suburban and urban transport. In densely populated peri-urban areas and on major transport corridors between major cities and metropolitan areas, the supply of connections shall be increased. New or upgraded rolling stock shall be put into operation. Investments shall be carried out in the form of dedicated subsidies on a non-discriminatory basis using tools for analysing traffic data and data. The investment is supported by Reform 2.

The implementation of the investment shall be completed by 30 June 2025.

Investment 3 on the development of intermodal freight transport.

The investment shall support the purchase of intermodal transport units and loading facilities involving private capital and the launch of new intermodal routes on selected routes. In order to increase the volume of transport in more environmentally friendly intermodal transport, the State shall encourage the purchase of intermodal transport units and loading facilities involving private capital. At the same time, the State shall provide support for the launch of new intermodal routes on selected routes. The envisaged State aid schemes foresee (subject to their approval by the European Commission) only partial funding from the mechanism and the selection of companies that shall receive support following public calls with clearly defined non-discriminatory rules.

The implementation of the investment shall be completed by 30 June 2026.

Investment 4 on the support for the construction of alternative propulsion infrastructure.

The investment shall focus on recharging points for electric cars and hydrogen refuelling points. A financial mechanism of aid schemes for the construction of recharging points for electric cars and hydrogen refuelling points shall be established. The system shall ensure the construction of the skeletal infrastructure of ultra-fast-absorbing points, the available charging infrastructure at the level of all districts of the Slovak Republic, thereby encouraging the faster development of alternative-fuel passenger and freight transport, leading to the modernisation of the vehicle fleet in order to reduce overall emissions in road transport. This investment is supported by Reform 4.

The implementation of the investment shall be completed by 30 June 2026.

A.2.    Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support

COMPONENT 4: Decarbonisation of industry

Reducing the greenhouse gas emissions in Slovakia and the fulfilment of national targets, as set out in the 2021-2030 Integrated National Energy and Climate Plan, require also an accelerated action by the industry. Slovakia is a heavily industrialized economy, with energy and industrial processes contribution to overall greenhouse gas emissions of just above 70%. Slovakia ranks among the Member States with the highest average air concentrations of dust particles in the EU, largely due to aging industrial technologies and burning of fuels in households.

In this context, the component 4 of the Slovak reform and resilience plan proposes the development and operation of a decarbonisation scheme for the industrial sector. The measures shall lead to lower greenhouse gas emissions in enterprises, reduced energy losses a higher uptake of innovative environmental technologies in industrial production. The component embeds the reform commitment by the Slovak government to transit away from coal in the Upper Nitra region. It also includes commitment to end support for the production of electricity from indigenous coal and the closure of Nováky lignite power plant. The investment in the equipment of the Slovak Environmental Inspectorate shall strengthen the monitoring capacity of decarbonisation efforts by this institution.

The component includes two reforms and one principal and one complementary investment.

These reforms and investments shall contribute to the green transition objective and to climate target. The decarbonisation shall have lasting impact on environment and air quality in Slovakia. The investments shall strengthen competitiveness of Slovak industry and securing jobs at the local level. The transformation of the Upper Nitra region boasts a strong cohesion element, particularly in supporting the region in its transition away from coal. 

It is expected that no measure in this component does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measures and the mitigating steps set out in the recovery and resilience plan in accordance with the DNSH Technical Guidance (2021/C58/01).

The measures shall contribute to addressing the Country Specific Recommendation conveyed to Slovakia in 2020, on the need to “focus investment on the green digital transitions, in particular on clean and efficient production and use of energy and resources” (Country Specific Recommendation 3/2020).

A.1.    Description of the reforms and investments for non-repayable financial support

Reform 1: The termination of coal-based electricity production at Nováky power plant and transformation of the Upper Nitra region

This reform embeds the commitment of the Slovak government to progress with transition away from coal in the Upper Nitra region. The regional Nováky power plant has the third highest CO2 emissions among the Slovak EU’s Emission Trading Scheme installations.

The purpose of this measure is, for the Nováky lignite power plant, to end the support for production of electricity and to terminate the electricity generation from lignite. This shall deliver positive effects on environment and a price reduction for final electricity consumers.

The implementation of the reform shall be completed by 31 December 2023.

Reform 2: Adoption of the competitive scheme for reduction of greenhouse gas emissions in industry

The Slovak authorities shall launch a competitive decarbonisation scheme open to all industrial sectors. The decarbonisation scheme shall support the uptake of the best currently available technologies in industrial processes. The support shall target low carbon processes and technologies in industry and the adoption of energy efficiency measures.

Slovakia shall ensure that the strict requirements on compliance with environmental legislation, both at national and EU level, shall be ensured. This shall include the compliance of supported activities and companies with the DNSH Technical Guidance (2021/C58/01).

The support to installations under the EU’s Emission Trading Scheme shall reduce their greenhouse gas emissions substantially below the benchmark relevant to the project bid. The ‘substantially below benchmark’ condition shall be part of selection criteria for the procurement.

The quantity of greenhouse gases emitted (in CO2 equivalent units, weighted average) of the enterprises supported by the scheme shall decrease by at least 30% as compared to the counterfactual scenario.

The Slovak authorities shall provide either data on decarbonisation for projects under the scheme (to be made available by 30 June 2026 at the latest) or demonstrate that the greenhouse gas emission savings is expected to be delivered based on assumed parameters of supported technologies under the measure (based on certificates by producers) or the combination of both approaches.

The implementation of the reform shall be completed by 31 December 2022.

Investment 1: The operation of the industry decarbonisation scheme

The purpose of the measure is to reduce the greenhouse gas emissions through project support to industrial enterprises. The auction scheme shall respect the conditions on investment policies as specified in the Reform 2 (‘Adoption of the competitive scheme for reduction of greenhouse gas emissions in industry’). 

Of the overall objective to reduce the greenhouse gas emissions by 1 369 917 tonnes of CO2 equivalent, the decarbonisation scheme shall deliver the reduction of at least 1 232 926 tonnes of CO2 equivalent, additional to the counterfactual scenario presented to the Commission. The emission reduction shall be observed either on the basis of data collection for projects under the decarbonisation scheme or demonstrated on the basis of parameters of supported technologies based on certificates by producers or the combination of both approaches. The Slovak authorities shall provide the data and the necessary technical documentation to the Commission on fulfilment of the decarbonisation target by 30 June 2026 at the latest.

The implementation of the investment shall be completed by 30 June 2026.

Investment 2: Supporting the functioning of the Slovak Environmental Inspectorate linked to decarbonisation

The purpose of the measure is to support investments into the equipment of Slovak Environmental Inspectorate, strengthening the monitoring capacity of this institution in the decarbonisation process. Currently, the lack of equipment does not allow to carry out the necessary activities in view of the expected increase of the Inspectorate’s workload.

The investments shall help to modernise the equipment as well as facilities of the institution. This shall allow for streamlining of the operational activities of the inspectorate, including for the on-the-ground missions. The inspectorate vehicles should be equipped with office and measuring technology, in particular for inspection on air protection, water protection and waste management. The investments shall also deliver improvements in the building premises of the inspectorate.

The implementation of the investments is expected to start by 1 January 2022 and shall be completed by 30 June 2025.

A.2.    Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support

COMPONENT 5: Adaptation to climate change

Component 5 ‘Adaptation to climate change’ of the Slovak recovery and resilience plan aims at increasing the resilience of both ecosystems and human settlements to the negative effects of climate change through reforms of the water management system, land management, nature protection and biodiversity, the implementation of green elements in the landscape and investments in waterproofing, and the development of green infrastructure, including planting.

The component includes two reforms and one investment.

It is expected that no measure in this component does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measures and the mitigating steps set out in the recovery and resilience plan in accordance with the DNSH Technical Guidance (2021/C58/01).

The objectives of this component are consistent with and forms part of the National Strategy for Environment Policy to 2030, the Strategy for the adaptation of the Slovak Republic to climate change, the Vision and Development Strategy of Slovakia to 2030 – the long-term sustainable development strategy of the Slovak Republic – Slovakia 2030, as well as the strategies and long-term objectives of the European Union, in particular the European Green Deal.

A.1.    Description of the reforms and investments for non-repayable financial support

Reform 1 on landscape planning.

The reform shall provide a basis for safeguarding landscape structures, ecological stability and biodiversity in land-use planning documentation and subsequent approval processes for the authorisation of buildings and activities. Together with the subsequent methodological documents and maps, the act shall provide the technical basis for land-use planning documentation and subsequent approval processes for the authorisation of buildings and activities. This shall have a significant impact on the maintenance of landscape structures, ecological stability and the protection of biodiversity. Their loss would undermine the capacity of adaptation to climate change.

The implementation of the reform shall be completed by 31 December 2023.

Reform 2 on nature protection and water management.

The reform shall aim at improving the status of habitats in protected areas that shall guarantee their long-term increasing contribution to landscape protection against climate change and their own resilience to the adverse effects of climate change. By 31 December 2022, an amended Nature and Landscape Protection Act and water legislation shall enter into force. This legislation shall strengthen the institutional protection of nature, it shall minimise conflicts of competence within protected areas, simplify the protection system, integrate the networks of protected areas (national, European and international) and create the conditions for the zoning of national parks. The result shall be a modern system with the primary objective of protecting nature and biodiversity in the territories concerned, ensuring a stable long-term contribution of ecosystems to climate change adaptation and mitigation. At the same time, the reform shall allow watercourses to be revitalised and shall create room for ecological management, restoration of river space and progressive flood protection taking into account nature protection and water retention in the countryside.

The implementation of the reform shall be completed by 31 December 2022.

Investment 1 on the adaptation of regions to climate change with an emphasis on nature conservation and biodiversity development.

The investment aims at ensuring the long-term sustainable contribution of ecosystems to climate change adaptation and mitigation (flood mitigation, drought prevention) by protecting ecosystems. The realignment of property shall make it possible to cover new areas by the highest degree of protection, which shall increase the resilience of ecosystems. Limiting logging and developing nature conservation shall make it possible to prevent floods and droughts, transform regions from intensive use of natural resources to soft tourism, with higher added value, while reinforcing ecosystem services. Revitalised watercourses, including wetlands, shall ensure water retention in the countryside and its gradual release. They shall become important elements of the landscape, supporting the conservation of biodiversity and the restoration of habitats.

The implementation of the investment shall be completed by 30 June 2026.

A.2.    Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support

COMPONENT 6: Accessibility, development and quality of inclusive education

The objective of the Component is to improve accessibility and inclusiveness of mainstream pre-school and school education in Slovakia. The Component will improve access to pre-primary education by ensuring that children aged 5 years old shall have place in the pre-school system and by introducing the legal entitlement to pre-primary education for 4- and 3-year olds. The Component is to reform the financing system for pre-school education and to introduce the system of inclusive educational support measures. The component may contribute to reduce the early-school leaving by fostering the school counselling and advisory system at lower secondary level, and to improve the inclusion also of Roma children by curbing segregation at schools. The component shall level off the deficiencies in the educational outcomes due to the pandemic and help children with special educational needs by more targeted support measures.

It is expected that no measure in this component does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measures and the mitigating steps set out in the recovery and resilience plan in accordance with the DNSH Technical Guidance (2021/C58/01).

The Component shall contribute to addressing the Country Specific Recommendations addressed to Slovakia in the past two years, on the need to improve the quality and inclusiveness of education at all levels and foster skills. Enhance access to affordable and quality childcare and long-term care. Promote integration of disadvantaged groups, in particular Roma. (Country Specific Recommendation 2/2019).

A.1.    Description of the reforms and investments for non-repayable financial support

Reform 1: Providing conditions for the implementation of compulsory pre-primary education for children from the age of 5 and introducing a legal entitlement to a place in kindergarten or other pre-primary education providers from the age of 3. The reform shall introduce the amendments to the relevant legislative provisions that introduce the legal entitlement for children age of three to be admitted to a kindergarten or other establishment providing pre-primary education. The reform is expected to introduce prescriptive funding for kindergartens based on standardised annual normatives for staff and operational costs which intend to cover the real staff and operational costs of kindergartens. The qualification requirement on teaching staff and specialist staff shall be upgraded to a higher education degree in the teaching programme for early and pre-primary education for teaching staff and specialist staff teaching children for whom pre-primary education is compulsory. The reform also includes measures to increase the capacity of kindergartens so that every child between the age of three years and entering compulsory education is allowed to participate in pre-primary education by 1 September 2025. The objective is to provide at least 9 114 places in the facilities while achieving on average at least 30% of primary energy savings in the renovated premises.

The implementation of the reform shall be completed by 30 June 2026.

Reform 2: The definition of the concept of special educational needs of children and pupils and the development of a model for eligible support measures in education, including their funding system. The reform shall change the definition of special educational needs of pupils by a new definition of a child or pupil experiencing obstacles to access to education, education and learning, who need the provision and application of support measures to fulfil their educational potential. A vertical model of support shall be created by introducing new of eligible support measures for all children. In order to implement the reform, teachers shall be provided with teaching and methodological materials through further training programmes. 10 000 teachers and specialist staff shall participate on trainings and other information activities under this reform.

The implementation of the reform shall be completed by 31 December 2025.

Reform 3: Reforming the system of counselling and prevention and ensuring systematic data collection in the field of mental health promotion for children, pupils and students. The objective of the reform is to shift the newly-created Advisory and Prevention Centres (CPP) to operate closer to schools. By amending respective legal acts, these centres shall provide professional activities without defining health disadvantage, as it is currently the case, which causes discrimination. A change in the advisory system shall be accompanied by further support measures such as: change in funding setting up on the basis of the professional activities.

The implementation of the reform shall be completed by 31 March 2023.

Reform 4: Implementation of tools to prevent early school leaving and adapt F-type study programme. The reform consists of changes to the relevant legislative provisions aimed at increasing the possibility for young people, without completing lower-secondary education, to achieve a higher level of education by providing for the possibility of completing lower secondary education in secondary vocational schools (NSOV) in a two- and three-year combined programme. Legislative amendments shall optimise F-type study programmes as well, by extending the obligation to determine secondary school performance plans to lower secondary vocational education disciplines. On the basis of the labour market offer, the content of the F-type study programmes shall then be adjusted. It is expected that at least 30% of lower secondary vocational schools (NSOV) shall align to the labour market offer by 30 June 2025.

The implementation of the reform is expected to start by 31 March 2023 and shall be completed by 30 June 2025.

Reform 5: Promoting school desegregation. The main objective of the reform is to introduce a legal definition of segregation that is expected to apply in every school in Slovakia. The desegregation of in schools shall be implemented by developing the methodological guidelines for the various educational actors (such as creators, schools and school facilities, directors and teachers) for the prevention and elimination of segregated education. The adopted methodology shall be applied in every school.

The implementation of the reform shall be completed by 31 December 2025.

Reform 6: Compensatory measures to mitigate the impact of the pandemic in education for primary and secondary school pupils. The reform establishes a tuition programme mainly for pupils who had limited opportunities to participate in education during the pandemic. The tuition programme is organised by the participating pupils’ schools and focuses in particular on subjects from so-called “main educational fields”. The selection of pupils as well as communication with pupils’ legal representatives are responsibilities assigned to the school.

In order to address the problem of the lack of comprehensive data on the course of distance learning, Ministry of Education shall launch a call for carrying out extensive pedagogical research to analyse the impact of the pandemic on education and their implications for education policies.

The implementation of the reform is expected to start by 30 September 2021 and shall be completed by 31 December 2024.

Investment 1: Removing barriers in school buildings. The objective is to remove physical, information and technological barriers in the school in 182 large secondary schools to enable disadvantaged children to carry out education in the pleasant environment. The investment shall be preceded by: 1) complex analysis in order to map the needs for debarierization and providing the manual. The manual shall define standards for removing barriers to meet the real needs of children, pupils and students with health disadvantages and to respect the principles of universal design.

The implementation of the investment is expected to start by 31 March 2022 and shall be completed by 30 June 2025.

A.2.    Milestones, targets, indicators, and timetable for monitoring implementation for non-repayable financial support

COMPONENT 7: EDUCATION FOR THE 21.CENTURY

This component of the Slovak recovery and resilience plan shall introduce curricular reform of primary schools (ISCED 1, ISCED 2) creating new learning content organised in multi-annual cycles. The aim is to develop pupils’ critical thinking and soft skills as problem-solving, handling information, working in a team, narrative and asking questions, taking initiative and responsibility, creating and implementing personal projects. This shall require the provision of textbooks necessary to renew the current stock and a change in teachers’ skills to apply these changes in everyday practice. At the same time, the component shall strengthen the quality of skills of teaching and professional staff and motivate them for lifelong professional development. The focus shall also be on inclusive education and the acquisition of digital skills. 

The component includes two reforms and two investments.

It is expected that no measure in this component does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measures and the mitigating steps set out in the recovery and resilience plan in accordance with the DNSH Technical Guidance (2021/C58/01).

The Component shall contribute to addressing the Country Specific Recommendation addressed to Slovakia on the need to strengthen digital skills and ensure equal access to quality education. (Country Specific Recommendation 2/2020). Improve the quality and inclusiveness of education at all levels and foster skills (Country Specific Recommendation 2/2019).

A.1.    Description of the reforms and investments for non-repayable financial support

Reform 1: Reform of the content and form of education (curricular and textbook reform). The objective of the reform is to create new learning curricula. Instead of delivering ready-made information, teachers shall create situations in which pupils may interpret the information in confrontation with real life. The reform commence by introduction of the curricula in primary and lower-secondary level of education (on voluntary basis) as of the school year 2023 and end by obligation to adopt the new curriculum in all primary schools in 2026.

The implementation of the reform shall be supported by creation of the 40 regional centers that bring support for schools in mentoring, counselling and consultation activities. The centers may comprise of teachers, school directors, professionals of adult education, third sector experts and experts from faculties preparing teachers in the region.

The reform requires the provision of new textbooks. The preparation of textbooks shall be supported through the work of the experts. The approval of textbooks, based on professional and educational quality, shall be ensured by a uniform clause granted by the Ministry of Education. Strict and transparent peer review criteria shall be put in place. Schools shall receive an allowance to buy textbooks according to their preferences and requirements from the list of textbooks approved by the Ministry.

The reform shall envisage the creation of an e-Test 2.0 e-testing platform that shall make the digitalization of the education process more efficient and thus enable the central testing of pupils. The measurable effect of this reform may be the final examination of the upper secondary school carried out on-line in every school by 31 December 2025.

Reform 2: Preparing and developing teachers for new content and forms of teaching (change in higher education training) and strengthening the professional development of teachers). The objective of this reform is to strengthen the quality of skills of teaching and professional staff and motivate them for lifelong professional development. A financial allowance shall be introduced to upgrade the teacher’s skills. The focus shall be made on the new curricula, inclusive education and the acquisition of digital skills. By the end of 2023 at least 55% of pedagogical and professional staff shall be trained. The respective legislative amendments shall regulate the competences and the range of teaching providers.

There shall be a grant programme for universities provided to support the emergence of new teaching curricula. This shall include funding for changes in programmes that support the introduction of inclusive education, the education of pupils with different mother tongues from Slovak and the development of digital competences among student teachers.

The implementation of the reform shall be completed by 31 December 2025.

Investment 1: Digital infrastructure in schools. The objective of this investment is to increase in the number percentage of schools with full digital entry from 30% to at least 90% (according to defined ICT standards built on the “highly equipped and connected classroom” (HECC)). To ensure transparency and value for money when purchasing digital equipment for schools, procurement shall be centrally coordinated. The investment envisages maximising the life cycle of digital equipment in order to reduce negative environmental impacts. Investment is divided into the main areas:

·inclusion: the investment shall cover the software or hardware of the compensatory aids for disadvantaged pupils.

·skills for the digital transformation: The investment shall cover one IT classroom in proportion to 300 students.

The implementation of the investment shall be completed by 31 December 2025.

Investment 2: Completion of the school infrastructure. The investment aims to eliminate 35 two-shift schools in Slovakia that may contribute to better integration for pupils from disadvantage backgrounds. The investments may take the form of expanding existing capacities, renovating and building new premise in 35 schools that currently pursue the two-shifts classes. Renovation of building shall be subject to achieving on average at least 30% of primary energy savings.

The implementation of the investment shall be completed by 30 June 2026.

A.2.    Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support

COMPONENT 8: Improving the performance of Slovak universities

The key objective of this component of the Slovak recovery and resilience plan is to improve the quality of performance of Slovak higher education institutions (HEIs).The new form of financing of professional bachelor programmes shall be introduced to better fit the study programmes to the labour market needs. In order to improve the quality of science, a systemic performance evaluation shall be established that support the new accreditation system. The component shall enhance the reform of the universities management by conferring more power to the rector and the board, as well as setting up a scheme that incentivise the mergers of the HEI to reduce administrative costs and create the effect of the positive spill-over in knowledge diffusion among the entities.

The component includes five reforms and one investment.

It is expected that no measure in this component does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measures and the mitigating steps set out in the recovery and resilience plan in accordance with the DNSH Technical Guidance (2021/C58/01).

The Component shall contribute to addressing the Country Specific Recommendations addressed to Slovakia in the past two years, on the need to Improve the quality and inclusiveness of education at all levels and foster skills. (Country Specific Recommendation 2/2019) as well as to ensure equal access to quality education. (Country Specific Recommendation 2/2020).

There is some strong connection to other components especially the ones related to research and innovation (Component 9 and 17), re-skilling and meeting the labour market needs (Component 10).

A.1.    Description of the reforms and investments for non-repayable financial support

Reform 1: Change in the funding of universities by introduction of performance contracts. A new instrument – performance contracts – shall be introduced to the legal system in order to support the profiling and diversification of universities based on their specific strengths and potential for development. Performance contracts are to be signed by the Ministry of Education, Science, Research and Sport of the Slovak Republic (MŠVVaŠ SR) with public universities. On the basis of the agreement of with universities, objectives shall be set which shall be monitored using the U-Multirank approach (unified methodology to carry out the performance evaluation) and shall be based on a long-term objective in the field of universities and country needs.

The implementation of the reform is expected to start by 31 December 2022 and shall be completed by 31 December 2023.

Reform 2: Introduction of a system of periodic scientific performance evaluation. The objective of the reform is to introduce a system of periodic evaluation of the scientific performance of universities. The Ministry prepares, in cooperation with stakeholders, a methodology for assessing scientific performance and introduces it into the legal system. The performance evaluation shall be organized by the ministry, either directly or through an autonomous institution, so that the assessment is based on the principles of independence and transparency. The assessment panel shall consist of domestic and foreign excellent researchers. The evaluation shall be based on high quality assessment systems from abroad, with the British Research Excellence Framework (REF) as the main inspiration and using specific parametric settings adapted to the situation of the Slovak institutions to assess the quality of output within the field.

The implementation of the reform shall be completed by 31 December 2022.

Reform 3: A new approach to accreditation of higher education. The objective of the reform is to set out the new standards and criteria for the accreditation of curricula that tighten the conditions for guaranteeing and delivering study programmes, improve their quality and introduce long-term quality monitoring processes. A new system shall require that universities involve students, external stakeholders (in particular employers) in the design, monitoring and adjustment of curricula, and that universities closely monitor student progress and needs, graduate uptake and overall student satisfaction. The Slovak Accreditation Agency for Higher Education (SAAVŠ) shall have external supervision of the implementation of these rules. The SAAVŠ shall also use the foreign assessors and practitioners in the assessment of university programmes. It is expected that at least 90% of universities apply to check the compliance of internal quality systems and study programmes with accreditation standards.

The implementation of the reform shall be completed by 31 December 2022.

Reform 4: Reform of the governance of universities. The reform via the amendment to the Higher Education Act shall increase the power of rector and the Board of Directors so that it better reflect responsibility and allow greater flexibility within the higher education institution. The reform shall also remove restrictions on the appointment of lecturers and professors (the current requirement for an additional habilitation or inaugural procedure and the degrees of lecturer and professor), thus promoting the openness of the academic environment to both professional and foreign candidates. The recruitment of university management posts (rector, dean of faculty) shall be professionalized and shall take the form of open competitions or public hearings. In addition, the experts shall be able to participate in open competitions for tenures. The Higher Education Act shall remove the condition that staff in positions of professor and lecturer must have a scientific/pedagogical degree.

The implementation of the reform shall be completed by 31 December 2021.

Reform 5: Concentration of excellent educational and research capacities. The objective of the reform is to promote the bringing together of universities into closer cooperation. There are over 30 universities in Slovak with a fragmented research capacities and insufficient cooperation with business. The Ministry of Education, Science, Research and Sport of the Slovak Republic (MŠVVaŠ SR) shall approve a road map for two large units of higher education institutions and subsequently for the next group of universities. A concrete roadmap leading to the establishment of a third consortium shall be provided.

The implementation of the reform is expected to start by 31 December 2021 and shall be completed by 30 June 2026.

Investment 1: Investment support for the strategic development of universities. 

Investments shall underpinned primarily reform 5 targeted at mergers of universities’ excellence potential. The investments may be channeled through two different schemes. The first one that support projects for the development of research, education and accommodation infrastructure with high added value for excellent research such as: upgrading existing or new spaces for the concentration of excellent research and doctoral studies, including foreign researchers, upgrading existing or new spaces for practical teaching in professional bachelor courses, removing the barriers and digitization. The second scheme shall support project management based on the approved roadmap. The scope of investments shall be determined in the plan linked to the process of bringing together university units.

The implementation of the investment shall be completed by 30 June 2026.

A.2.    Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support

COMPONENT 9: More efficient management and strengthening of R & D & I funding

This component of the Slovak recovery and resilient plan addresses important structural bottlenecks in the Slovak research, development and innovation (RDI) ecosystem, such as fragmentation of the RDI governance, insufficient private-academia cooperation, internationalisation and RDI funding. The longer term objective is to stimulate private participation in RDI through an increase in private R&D expenditure.

The component aims at strengthening RDI performance and innovation potential, which are a necessary prerequisite for competitive and sustainable economic growth. The proposed measures are focused on enhancing the RDI governance, overarching coordination, impact and effectiveness of RDI investment as well as fostering public-private cooperation and private investment. The measures support research excellence and internationalisation, as well as the attraction and retention of talent in science and innovation. The objective of investment schemes is to generate new RDI projects in key sector of the economy with transformative potential to support the creation of higher added value jobs and to stimulate the growth of the innovation ecosystem at the national and regional level.

It is expected that no measure in this component does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measures and the mitigating steps set out in the recovery and resilience plan in accordance with the DNSH Technical Guidance (2021/C58/01).

The component is composed of 2 reforms and 6 investments, which are closely interlinked. The RDI reforms are designed to be a prerequisite for efficient and effective absorption of investment.

All investment schemes shall comply with DNSH principles requiring technology neutral investment at the level of applications and excluding potentially damaging areas such as fossil fuels, including downstream use. Launch of all competitive calls for proposals shall include eligibility criteria that ensure that selected projects comply with the DNSH principles through the use of an exclusion list and the requirement of compliance with the relevant EU and national environmental legislation.

The investments and reforms shall contribute to the Country Specific Recommendations addressed to Slovakia in the past two years, on the need to “focus investment-related policy on research and innovation” (Country Specific Recommendations 2/2019), to “focus investment on the green and digital transition” (Country Specific Recommendation3/2020) and to “enhance coordination and policy making” (Country Specific Recommendations 4/2020).

 A.1.    Description of the reforms and investments for non-repayable financial support

Reform 1: Reform of governance, evaluation and support in science, research and innovation.

The reform focuses on the amendment of the RDI relevant legislation, which shall enhance the RDI governance structure, strengthen and professionalise inter-ministerial coordination of RDI policies. The new governance structure shall be made up of the Slovak Government, the Government Council for Science, Technology and Innovation and the Secretariat created under the Government Office. The reform shall be based on 5 pillars: i) strong over-government strategy and coordination, ii) effective cross-cutting standards for support instruments, iii) consolidation of grant agencies and building up their expertise, iv) application of principles of good governance and efficiency and v) unified system of institutional assessment and institutional RDI funding. The revision of the legislation (Act No 172/2005) shall be proposed by the Ministry of Education, Science, Research and Sport and shall enter into force by 31 March 2022. The reform includes the adoption of a new National Strategy for RDI to provide a strategic policy direction, objectives and tools to apply to all types of public support, including national and EU funds in a consistent and complementary way. The government shall adopt the Strategy by 30 September 2022. In order to minimise inefficiencies, the principles of good governance and efficient funding shall be translated into a methodology to apply ex-ante into RDI investments. The new RDI strategy and measures shall take into account the revised Smart Specialisation Strategy to foster thematic concentration as well as recommendations of recent studies such as OECD to improve RDI investment implementation and “lessons learnt” from the Cohesion policy programming periods. The evaluation process shall be reformed to increase the use of panel and foreign evaluators and administrative processes shall be gradually streamlined.

The implementation of the reform shall be completed by 30 September 2022.

 Reform 2: Reform of the organisation and funding of research institutions, in particular the Slovak Academy of Science.

The reform aims at completing the transformation of the Slovak Academy of Science (SAS) into a public organisation to enable stimulating multi-source funding and cooperation with the private sector. The reform shall be enabled by a revision of the two legislative acts (Act No 133/2002 on SAS and Act No 243/2017 on the public research institutions) proposed by the Ministry of Education, Science, Research and Sport. It shall allow the SAS entering into business and property relations related to RDI with full protection of intellectual property rights and financial gains.

The implementation of the reform shall be completed by 31 December 2021.

Investment 1: Promoting international cooperation and participation in Horizon Europe and EIT projects.

Participation in international cooperation, such as EU RI framework programmes is very low and Slovakia is currently on the 24th place in the EU regarding EU funding received from Horizon 2020. The objective of the investment is to enable greater participation of Slovak institutions, researchers and companies in cutting-edge projects of the European Research Area (ERA). At least three calls for projects shall be launched for the following schemes:

·Projects awarded by the “Seal of Excellence”/threshold projects (such as Marie Sklodowska-Curie Actions Postdoctoral Fellowships, Teaming, European Research Council scheme with evaluation A in the second round).

·Projects participating in the European Innovation Council scheme with the “Seal of Excellence” award .

·“Matching grants to research institutions or companies to leverage resources generated under Horizon 2020/Horizon Europe.

·Grant support for the preparation of Horizon Europe applications.

The overall approach is to support high quality projects, which receive a very high score in ERA programmes, but are left with no funding. The investment is expected to result in at least 48 applications and participating projects in Horizon Europe programmes.

The implementation of the investment shall be completed by 30 June 2026.

Investment 2: Supporting cooperation between companies, academia and R & D organisations.

The investment aims to mobilise private participation in RDI and increase the share of innovative businesses, especially in the area of digital innovation. It shall support a wider role of the private sector, capacity building as well as networking with research organisations. At least four calls shall be launched for the following schemes:

·“Matching grants” to research institutions to leverage resources raised from the private sector in the framework of research collaboration. This scheme shall encourage academic and research organisations to seek more private partnerships.

·”Voucher” support schemes – to facilitate the transfer of knowledge, technologies and innovation and to enhance the cooperation with business sector. Two types of the voucher schemes are proposed: i) innovation voucher (including patent activities) – to stimulate SMEs cooperation with research organisations, or with municipalities, ii) digital voucher – to stimulate the digitalisation of services and processes for SMEs and enterprises.

·The measure of creating at least two “transformative and innovative consortia” shall aim to generate new RDI activities in key sectors of the economy with the greatest innovation potential

Of the overall objective to support 3 931 projects, at least 3 538 cooperation projects between companies, academia and R&D organisations as well as vouchers are supported.

The implementation of the investment shall be completed by 30 June 2026.

Investment 3: Excellent science.

The rate of internationalisation of the research environment is very low, only 2% of university academic staff come from abroad. The investment aims to create an internationally competitive environment for the best scientists, both in terms of salaries and the availability of attractive research schemes. At least 6 calls shall be launched for the following schemes:

·Fellowships for excellent researchers at different career stages R1 – R4 (R1-First stage researchers, R2-Recognised researchers, R3-Established researchers, R4-Leading researchers).

·“Early stage” research grants. The scheme is designed to give the opportunity to young researchers to kick-start research in their own field.

·Capital “booster” shall complement the existing schemes to finance capital expenditure of research projects.

·Dedicated calls for large research projects shall support excellent teams in strategically defined RDI areas and enhance RDI human capital. It is expected that at least 15 high-quality research projects are selected and completed.

Of the overall objective to support 1060 excellent researchers, at least 1000 excellent researchers are supported under different schemes.

The implementation of the investment shall be completed by 31 March 2026.

Investment 4: Research and innovation to decarbonise the economy.

The investment scheme aims at improving synergies in RDI topics between national and EU level. Thematic calls shall be launched to support the green transition as well as resilience and adaptation to climate change in line with topics expected in the thematic priorities of Horizon Europe, such as carbon free energy, electrification, hydrogen, battery technologies and alternative fuels, low emission industrial processes and materials and bio-economy. The focus shall be on entire research and innovation cycle (Technology readiness level 1-9) with highest allocation directed to demonstration projects and more advanced technology readiness levels (TRL). Of the overall objective to complete 30 projects, at least 27 projects are completed under the calls by 30 June 2026.

The implementation of the investment shall be completed by 30 June 2026.

Investment 5: Research and innovation for the digitalisation of the economy.

The investment aims at supporting the transition to the digital economy. Thematic schemes (such as demand driven calls and/or financial instruments) to be launched in 2022 shall be channelled towards topics that are expected in the thematic priorities of Horizon Europe, such as key digital and industrial technologies, internet of things, artificial intelligence and robotics and cover the whole research and innovation cycle (Technology readiness levels 1-9). Of the overall objective to complete 155 projects, at least 140 projects are completed under the schemes by 30 June 2026.

The implementation of the investment shall be completed by 30 June 2026.

Investment 6: Financial instruments to support innovation.

The investment intends to considerably increase the share of innovative businesses and invest in companies with significant technological and innovative potential. The capital investment shall cover an early stage (seed phase) as well as the growth phase (such as venture capital funds) of the companies´ life cycle and shall be implemented through financial intermediaries.

To comply with the “Do no significant harm” Technical Guidance (2021/C58/01), investment strategies outlining the use of financial instruments shall require the application of the Commission technical guidance on the exclusion list and compliance with the relevant EU and national environmental legislation. The investment strategy, including “Do no significant harm” requirements shall be properly reflected in a contractual agreement between Slovak authorities and the implementing partners/financial intermediaries.

Of the overall objective to support 40 companies, at least 36 companies are supported by financial instruments in the form of capital inputs by 30 June 2026.

The implementation of the investment shall be completed by 30 June 2026.

A.2.    Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support