Slovenia Urgently Needs Measures to Boost Competitiveness

The business community is united in calling for development-oriented measures that encourage labour force participation and improve the quality of life for all residents

 

Ljubljana, 4 August 2026 – Gospodarski krog, which comprises 17 organisations, respects the decision of the Constitutional Court. At the same time, we regret that, amid considerable global uncertainty, this decision will delay important measures that are essential to the competitiveness of the Slovenian economy and the well-being of society.

At a time when countries around the world are competing intensively for investment, innovation, and highly skilled people, a new period of uncertainty poses a serious risk for Slovenia. The measures included in the emergency intervention act are not intended solely to improve conditions for businesses. They would also provide several direct benefits to citizens.

The act includes a range of measures that would directly benefit residents, from reducing VAT on essential food products and certain energy sources to encouraging older people to remain in employment for longer and introducing other measures to support a more dynamic and development-oriented economy.

It would exempt pensioners from paying the mandatory long-term care contribution and allow working pensioners to receive their full pension while continuing to work. Self-employed people and those operating a part-time business alongside regular employment would benefit from more favourable taxation and lower social security contributions, encouraging entrepreneurship and helping existing businesses remain active.

Short-term accommodation providers would benefit from a more predictable business environment through the suspension of restrictions on short-term tourist rentals. Tenants and landlords would benefit from lower taxation on residential rentals, together with additional incentives for renting properties to young people. Patients facing unacceptably long waiting times would gain faster access to treatment through the removal of restrictions affecting the work of healthcare institutions and medical professionals.

For highly skilled and demanding positions, the act proposes a social contribution cap, which would help Slovenia retain and attract highly qualified professionals. The business community believes that the threshold should be set lower, for example at twice the average salary, so that the measure would cover a broader pool of talent. Nevertheless, we regard the proposed measure as an important first step following more than 30 years of discussions about introducing such a cap, particularly as a ceiling has already been introduced on the benefits side of the system.

Should a referendum take place, citizens will have an opportunity to decide which development path Slovenia should pursue. Successful, development-oriented countries that strive for social well-being continuously seek a healthy balance between a growth-oriented tax policy that rewards work, entrepreneurship, and economic development, and measures that strengthen the welfare state.

We believe that achieving this balance is essential to Slovenia’s long-term prosperity. Regardless of how the current procedure develops, we therefore expect the Government of the Republic of Slovenia to adopt development-oriented measures as soon as possible, whether through the emergency intervention act or other legislation. These measures should strengthen Slovenia’s competitiveness, encourage labour force participation, and contribute to a higher quality of life for all residents.

Barbara Uranjek Kozina, CEO of the British-Slovenian Chamber of Commerce, stressed:

“At a time when countries are competing intensively for investment and highly skilled professionals, a new period of uncertainty directly weakens Slovenia’s competitiveness and hinders its future development. Foreign investors need a stable and predictable business environment when considering the expansion of their operations.

Introducing a social contribution cap, together with reducing the tax burden on labour costs, is essential if Slovenia is to retain and attract leading professionals. The British-Slovenian Chamber of Commerce joins the call by Gospodarski krog and urges the Government of the Republic of Slovenia to adopt development-oriented measures as soon as possible. These measures are needed to maintain Slovenia’s attractiveness to foreign investors and support the creation of high added value.”

About Gospodarski krog

Gospodarski krog bringst together 17 of Slovenia’s leading business and agricultural organisations, collectively representing a broad range of companies, industries, and business communities. It provides a platform for cooperation through which the business community develops shared positions, exchanges arguments, and creates space for responsible, informed, and long-term dialogue.

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