EU advises Slovenia to limit 2025 spending growth

The country should ensure fiscal sustainability in social protection, shift tax revenues to more growth-friendly sources, and improve public spending efficiency through spending reviews and better public investment management, the Commission said in a recommendation on the economic, social, employment, structural and budgetary policies of Slovenia.

Slovenia also needs to improve its administrative capacity to manage EU funds, speed up investments, sustain reform implementation, and address delays to effectively execute the recovery and resilience plan by August 2026, the Commission added.

In May, the Commission improved its economic growth forecast for Slovenia in 2024 to 2.3%, up from 1.9% projected in February. Slovenia's economy is expected to expand by 2.6% in 2025, the Commission said in its Spring 2024 Economic Forecast report.

The general government deficit is forecast to increase to 2.8% of GDP in 2024 before declining to 2.2% in 2025, after reaching 2.5% in 2023, the Commission noted back then.