Slovak municipalities face EU funds freeze due to slow draw

In Bratislava, Slovakia, local governments are currently facing significant challenges following the government’s decision to freeze €200 million in EU funds. The Minister of Investments, Samuel Migač, highlighted that municipalities are not adequately prepared to draw these funds, with only 56% of approved project intentions, 32% of applications for non-repayable financial assistance, and a mere 12% in contracting. This situation prompted frustration from municipalities, which argue that the reason for the slow absorption is related to delays in programming periods and lengthy checks, rather than any inefficiency on their part. On June 23, local government representatives expressed their discontent at a press conference, claiming the freeze is an unfair decision that negatively impacts their relationship with the national government. Jozef Božík, chairman of the Association of Towns and Municipalities of Slovakia (ZMOS), emphasized that this funding is essential for the citizens in the regions, not just for local officials. Despite the adverse effects anticipated from the freeze, the ministries are under pressure to speed up processes, which have created roadblocks for drawing the needed funds. He also noted that the funding fundamentally impacts ongoing projects and community development. The government, however, defends its decision as a necessary measure to avoid the risk of losing unutilized funds. Migač acknowledged the need for municipalities to be more proactive and effective in drawing down available financial assistance. This freeze entails a temporary measure affecting €1.26 billion from EU funds until the municipalities improve their performance. The local governments are now actively seeking a meeting with top constitutional officials to discuss revoking the freeze and highlight the urgent need for these funds for local development. Local representatives argue that they need to work as partners with the national government rather than as subordinates, underscoring their commitment to community needs over bureaucratic inefficiencies. They intend to appeal to the European Parliament should negotiations with the government fail, showing the increasing tension between local and national authorities regarding resource allocation and management of EU funds.