Slovak Republic struggles as EU fund usage remains at just 2.61%

At the end of November 2024, the Slovak Republic had drawn 334.24 million euros from EU funds allocated for the programming period 2021 to 2027, amounting to a low utilization rate of 2.61%. The Ministry of Finance reported on the progress of EU fund drawing, indicating that the country could draw from a total commitment of 12.79 billion euros during this period. Only a small portion has been accessed so far, raising concerns regarding the ability to meet future financial milestones outlined. These milestones include accounting for 1.55 billion euros by December 31, 2025, and reaching 2.14 billion euros by December 31, 2026, both essential for adherence to EU guidelines and regulations. The EU has been closely monitoring compliance with its rules regarding fund utilization, which are fundamental for securing investments and financial support for the development programs in the member states. The commitment and effort needed to increase the drawing of these funds are crucial, as the approved expenditures need to be raised significantly to meet the expected benchmarks in the coming years. The low draw rate is alarming, particularly with the first milestone approaching in just over a year. The Ministry stressed the importance of approving expenditures at the level of the payment authority to ensure that Slovakia does not fall behind in accessing these essential funds, which are designed to boost the country's infrastructure and social development. In the previous funding period, 2014 to 2020, Slovakia had an impressive draw rate of 107.42% of the total allocated funds, suggesting a strong history of utilizing EU resources effectively. However, the current programming period is presenting challenges. The Slovak Ministry of Finance's updates reveal that while funds were allocated, the uptake in the current cycle is significantly lagging behind initial expectations. This situation could jeopardize future investments and the successful completion of developmental projects already planned by the Slovak authorities. The overall allocated funds of 12.79 billion euros for the Slovak Republic during the 2021 to 2027 programming period include the main Slovakia program and smaller initiatives like Interreg SK-CZ, Interreg SK-AT, INTERACT IV, and the Fisheries Program. The details shared by the Ministry bring to light the urgency required from local authorities and policymakers to ensure that the funds will be utilized effectively moving forward. Without appropriate action taken swiftly, Slovakia may face significant financial repercussions as it aims to navigate its growth and development agenda while maintaining compliance with EU expectations.