AGP Executive Report

India-Slovakia State Visit: Prime Minister Narendra Modi arrived in Bratislava for a landmark first-ever visit by an Indian PM since 1993, aiming to deepen cooperation with Slovak President Peter Pellegrini and PM Robert Fico, with talks expected to cover trade, investment, manufacturing, innovation, and rail and auto projects. Diplomatic-to-industrial push: The visit is framed as a boost to industrial partnerships and business links, building on the India-Slovakia Joint Economic Committee and record bilateral trade momentum. Cultural diplomacy with business backdrop: Modi received a traditional bread-and-salt welcome and performances including “Vande Mataram,” while the Indian diaspora greeted him—signaling people-to-people ties alongside economic talks. EU policy pressure on industry: Separately, the EU’s next Russia sanctions package could complicate an EU-India trade deal, with proposed listings tied to drone and export controls and a unanimous approval requirement across all 27 member states. Energy security angle: Modi also welcomed a US-Iran understanding to end conflict in West Asia and reopen the Strait of Hormuz, a move that could ease shipping and energy market disruptions.

India–France Tech Push: PM Modi and President Macron inaugurated “Bharat Innovates 2026” in Nice, positioning India as a global provider of deep-tech solutions and bringing together 120+ Indian deep-tech startups, 15+ higher-education institutions and 500+ investors across sectors from AI and semiconductors to defence, space and manufacturing. Deal-Making for Industry: The first leg of Modi’s France visit produced 13 outcomes, including an Innovation Roadmap 2030, a joint AI working group, and plans to expand UPI in France, alongside a five-year goal to double bilateral trade to USD 32bn. Slovakia Industrial Signal: Modi then departed for a historic first-ever Indian PM state visit to Slovakia (June 14–16), with trade and investment on the agenda; meanwhile Slovak PM Robert Fico said reopening aluminium production in Žiar nad Hronom is nearing completion. Manufacturing Investment Bid: Piyush Goyal urged French firms to invest, design and manufacture in India, citing scale and a large startup base. EU–India Trade Risk: An EU sanctions proposal tied to Russia-related entities based in India could complicate ratification of the EU–India trade deal, with unanimous approval required. Competitive Tech Pressure: A US ban on Anthropic’s Fable 5 and Mythos 5 may disadvantage Indian IT services firms by limiting access to advanced coding models. Regional Trade Link: Kenya is courting Slovakia as an investment and export destination, highlighting emerging technologies, renewables and labour mobility.

EU-India Trade Risk: The EU’s new Russia sanctions proposal could complicate ratification of the EU–India trade deal, with a package targeting 50 companies across sectors including drones and export controls, and requiring unanimous approval by all 27 member states. India–France Tech Push: PM Narendra Modi and President Emmanuel Macron will inaugurate Bharat Innovates 2026 in Nice, bringing together 120 deep-tech startups, 15+ higher education institutions and 500+ investors across sectors like advanced computing, semiconductors, energy and advanced manufacturing. Slovakia State Visit: Modi’s June 14–16 state visit to Slovakia—his first since 1993—aims to deepen cooperation in trade, investment, auto manufacturing and rail infrastructure, with the Indian diaspora in Slovakia already gearing up for the delegation. Defence & Energy Talks: The broader Europe agenda also includes defence and nuclear-energy cooperation signals alongside discussions tied to West Asia shipping and energy security. Logistics in Focus: L’Oréal’s Central Europe logistics is set to be managed by GXO, underlining continued industrial supply-chain investment across the region.

EU Sanctions vs Trade Deal: The EU’s next Russia-focused sanctions package would include entities based in India, raising fresh hurdles for ratifying an EU-India trade agreement finalized in January; the proposal targets 50 companies and needs unanimous approval across all 27 member states. India-France-Slovakia Diplomacy: Prime Minister Narendra Modi has landed in Nice for talks with President Emmanuel Macron and will jointly inaugurate “Bharat Innovates 2026,” a deep-tech and startup showcase tied to the India-France Year of Innovation, before moving on to Slovakia for a state visit and then the G7 in Evian. Energy Security at G7: With tensions in West Asia affecting shipping, Modi and G7 leaders are expected to discuss restoring freedom of navigation and demining plans for the Strait of Hormuz, a key route for energy imports. EU Climate Rules: The EU is making it harder to pause carbon import fees, a move aimed at protecting local steel, cement and fertilizer industries while pushing greener investment. Slovakia-India Industrial Links: Coverage ahead of Modi’s Slovakia stop highlights growing Indian work presence in IT, research, car manufacturing and logistics, alongside calls for longer-term investment-focused cooperation.

EU Carbon Rules: EU ministers backed tighter limits on when countries can suspend the carbon emissions fee on imports like steel, cement and fertilisers, aiming to protect low-carbon investment certainty—though Slovakia, Romania and Lithuania opposed. EU Fiscal Flexibility: The EU Council activated Spain’s national escape clause under the stability rules, allowing higher defence spending for four years up to 1.5% of GDP, with many states including Slovakia also getting approval for similar requests. Slovakia-India Business & Defence: Prime Minister Narendra Modi begins a France and Slovakia trip ahead of the G7, with talks expected to cover trade, investment and manufacturing links; Slovakia is also positioned to deepen defence and innovation cooperation. Slovakia Tech Funding: Košice-based Nordics rebranded as Definic and raised €2.5m to scale its vendor intelligence platform across DACH, the UK and the US. Logistics & Retail Expansion: Amazon opened a major fulfilment centre in Northamptonshire and plans another in Kettering, while Kaufland launched an online marketplace in Spain with fast delivery and third-party sellers. Local Industry & Jobs: Slovakia’s industrial production fell 3.2% and EU unemployment edged up to 6% in 2025, adding pressure to competitiveness and hiring.

EU Carbon Border Levy: EU economy ministers agreed to tighten when the bloc can suspend the carbon emissions fee on imports, aiming to give more certainty for low-carbon investment; Slovakia was among the countries that declined support. Retail & Logistics: Kaufland is launching its online marketplace in Spain this summer, offering millions of products from third-party sellers with fast delivery, while Amazon is pouring £1bn into new UK fulfillment capacity in Northamptonshire and plans a second major site in Kettering. IT & Procurement Tech: Košice-based Nordics rebranded as Definic and raised €2.5m to scale a vendor intelligence platform for enterprise IT purchasing. Slovakia–India Business & Defence: Slovak Ambassador Robert Maxian called PM Narendra Modi’s June 14–16 state visit a “historic opportunity,” with talks expected to cover defence cooperation and broader economic ties. Energy & Industry: EU-India trade talks face new risk as an EU sanctions proposal would include entities based in India, potentially complicating ratification of the deal. Shipping Security: India summoned the US charge d’affaires again over attacks near the Strait of Hormuz, raising concerns for Indian seafarers.

EU Labour Watch: Eurostat says the EU unemployment rate edged up to 6% in 2025 (from 5.9% in 2024), with Spain highest (10.5%) and Czechia lowest (2.8%); joblessness also tracks education, hitting low-educated workers hardest. Energy Cost Shield: EU lawmakers agreed to strengthen a financial safety net for the expanded carbon market covering buildings and road transport, using emergency permits to curb price spikes for heating and fuel from 2028. Slovakia-India Dealmaking: Slovak Ambassador Robert Maxian calls PM Narendra Modi’s June 14–16 state visit to Slovakia a “historic opportunity,” with talks expected to deepen defence cooperation and broader economic ties. Defence & Tech Transfer: Ahead of Modi’s France stop, French officials signal comfort with Rafale technology transfer and integrating Indian-developed weapons under “Make in India,” while talks also cover nuclear energy cooperation. Logistics in Focus: GXO signed a multi-year logistics deal with L’Oréal to expand outsourced supply-chain operations across Czechia, Slovakia and Hungary, including a new greenfield site near Brno. EU-Russia Energy Reality Check: New analysis argues the EU’s break from Russian fossil fuels is incomplete because LNG flows remain, with sanctions timelines still leaving a major channel open.

Diplomacy & Industry Links: India’s PM Narendra Modi will visit France and Slovakia from June 13, with talks in Nice with President Macron and a historic state visit to Bratislava on June 14-16—aimed at boosting trade, investment and cooperation in transportation, renewable energy, emerging tech and defence production. Defence & Tech Transfer: France signals comfort with technology transfer and integrating Indian-developed weapons on Rafale jets, as India moves ahead with a request for 114 additional aircraft—an industrial partnership angle that matters for Slovakia’s defence supply chain. Energy Security: EU policymakers agreed a financial “safety net” to stabilise new carbon costs for buildings and road transport from 2028, targeting household protection as energy prices stay under pressure. Slovak Economy Watch: Slovakia reported a €76m foreign trade surplus in April 2026, while analysts warn Middle East-driven oil and gas volatility could squeeze future industrial competitiveness. Agriculture Under Strain: Slovakia’s agriculture faces drought and a dairy crisis; the government is pushing EU reserve use and more support for irrigation and subsidies. Cyber Risk for Infrastructure: Slovak-linked reporting highlights OceanLotus cyber activity shifting toward domestic espionage, including an attack on a Vietnamese infrastructure and transport construction firm—relevant for industrial operators’ security planning. Local Governance Oversight: Opposition PS and KDH are convening parliamentary scrutiny over the still-unclear Presov military hospital build, citing procurement, cost overruns and construction supervision concerns.

Slovak Trade Watch: Slovakia posted a €76m foreign trade surplus in April 2026 as exports rose to €9.5bn (+4.5% y/y) and imports edged up to €9.4bn (+2.6% y/y), though analysts warn Middle East-driven energy volatility could squeeze future competitiveness. Industrial Pulse: Slovakia’s industrial production fell 3.2% y/y in April, with sharp drops in coke and petroleum (-11.34%) and basic metals (-8.1%). Agriculture Under Pressure: Prime Minister Robert Fico says drought and a dairy crisis are hitting farmers hard, pushing calls for faster subsidy and irrigation support. Business Climate Debate: Employers’ union RUZ urges the government to present growth measures immediately, warning uncertainty, consolidation and high energy prices are holding back investment and wages. Energy & Industry Links: Slovakia and Canada agreed to deepen cooperation in nuclear energy and defence, with a planned Canadian business mission and a new chamber of commerce. Logistics Deal: GXO signed a multi-year contract with L’Oréal to support logistics across Czechia, Slovakia and Hungary. Autonomous Mobility: WeRide outlined plans to commercialize Level 4 autonomous vehicles in Slovakia, with the first batch due to arrive this month. Foreign Investment Push: Slovakia’s investors are being courted in Kenya as a major infrastructure and development partner. EU Defence Procurement: EU lawmakers reached a provisional deal on the Defence Readiness Omnibus to speed permits and procurement and simplify cross-border defence projects.

Neolithic Research: Archaeologists report 7,000-year-old remains of nearly 78 people found in a ditch near Vráble, Slovakia, with most skeletons missing heads—suggesting deliberate burial practices tied to early farming communities. EU Sanctions & Energy: The EU is drafting its 21st sanctions package on Russia, with a focus on cutting Russian oil earnings via “shadow fleet” curbs, tighter port/refinery targeting, and limits on specialized gas tanker sales. Defence Procurement Reform: EU Parliament and Council negotiators reached a provisional deal on the Defence Readiness Omnibus (“Omnibus V”) to speed permits and procurement, simplify cross-border defence transfers, and ease access to EU Defence Fund support. Slovak Industry Watch: Slovakia’s industrial production fell 3.2% year-on-year in April, hit by weaker motor vehicles and basic metals output. Logistics Deal: GXO signed a multi-year logistics agreement with L’Oréal covering Czechia, Slovakia and Hungary, supporting retail and e-commerce supply chains. Autonomous Mobility: WeRide says it will commercialize Level 4 autonomous vehicles in Slovakia with government backing; first vehicles are expected to arrive in June for testing and multi-use deployments. Hydrogen Funding Gap: Only about €300m of the €1.2bn second European hydrogen auction is turning into real projects, prompting calls to reform how funding is allocated. India-Slovakia Business & Defence: Slovakia’s ambassador to India Robert Maxian says PM Modi’s June 14–16 visit is “landmark,” pushing deeper defence-industry cooperation and investment links. Trade Gateway to Africa: Slovakia is positioning Kenya as an East Africa gateway, with a new bilateral trade framework discussed in Nairobi.

Autonomous Mobility Push: Slovakia is set to host WeRide’s Level 4 robotaxi rollout, with the PM and transport ministry backing commercialization plans and a first vehicle batch due this month. India–Slovakia Industrial Ties: Prime Minister Narendra Modi’s June 14–16 visit to Slovakia is framed as historic and aimed at expanding trade, investment, and auto/rail manufacturing links, with defence cooperation also shifting as Slovakia starts buying Indian defence tech. Defence Cooperation in the Region: Slovakia and Croatia signed a new defence deal in Zagreb, with ammunition and armoured vehicles from Slovakia and combat helmets from Croatia, plus scope to extend ballistic protection work. Energy Transition Manufacturing: Vaillant’s Senica heat-pump mega-factory highlights Europe’s push for mass production, targeting up to 500,000 units a year as heating decarbonisation accelerates. Automotive Watch: Audi unveiled the third-generation Q7 with a mild-hybrid V6 diesel setup and new tech, reinforcing the premium SUV race that matters for Slovakia’s auto supply chain. Raw Materials Reality Check: A foundry conference spotlighted cost and process pressures in aluminium die-casting and the wider raw-material squeeze affecting European industry. Trade Gateway Strategy: Slovakia is positioning Kenya as an East Africa gateway, signing MoUs to boost investment and business collaboration across sectors including manufacturing and green energy.

India–Slovakia Diplomacy & Industry Links: Indian PM Narendra Modi will visit Slovakia June 14–16 and France June 13–14 and June 16–19, with talks with Robert Fico and President Peter Pellegrini, plus G7 participation in Evian and the VivaTech event in Paris—an agenda that explicitly targets trade, investment, and auto/rail manufacturing cooperation. Energy Transition Manufacturing: Vaillant’s Senica mega-factory is now fully operational, with potential output of up to 500,000 electric heat pumps per year—positioned as a key industrial lever for Europe’s faster decarbonisation of heating. EU Sanctions Pressure: The EU is set to propose a 21st Russia sanctions package aimed at firms and financial networks tied to Russia’s military-industrial sector, including measures affecting energy and supply chains. Slovak Construction & Mobility: Petržalka is moving ahead with permanent footbridges over Chorvátske rameno, taking over delivery after Bratislava City Council postponed four crossings due to funding gaps. Agriculture Funding: Slovakia’s Agriculture Ministry has launched eight calls worth €221.23m for farmers, food producers and foresters, including investments to cut greenhouse gas and ammonia emissions. Industrial Policy & Compliance: The EU Pay Transparency Directive transposition deadline has passed, raising compliance questions for employers across member states still lagging on implementation.

Agriculture Funding: Slovakia’s Agriculture and Rural Development Ministry has opened eight calls worth €221.23 million for farmers, food producers and foresters, including productive investments for companies and young farmers, plus support for cutting greenhouse gas and ammonia emissions. Construction Watch: Construction output in Slovakia grew 13.2% year-on-year in April, slowing from March’s 29.9% jump, with domestic new construction up 20% and repairs and maintenance rising 13%. Energy Security: Poland is pushing an “energy autonomy” strategy beyond EU dependence, leaning on infrastructure and supply links tied to Azerbaijan and the Southern Gas Corridor. Trade & Industry Links: The UAE and Slovakia used their second Joint Economic Committee meeting in Bratislava to expand cooperation in energy and green tech, digitalisation and cybersecurity, agriculture and food, infrastructure and smart urbanisation, and healthcare. EU Compliance: The EU Pay Transparency Directive transposition deadline has passed, leaving many employers and member states scrambling to meet new pay transparency duties. EU Consumer Safety: An EU-funded check of 88 remote-controlled toys found 60% failed interference rules, triggering bans and corrective actions across 13 countries, including Slovakia. Logistics & Mobility: Radar Tyres’ Radar RED dealer program has topped 1,000 dealers across Europe, with Slovakia among the initial rollout markets.

EU Enlargement Watch: EU enlargement chief Marta Kos says Poland’s objections to Ukraine’s next steps are “solved,” with EU leaders set to open the first of six accession negotiation clusters on June 15 and aim to unlock the remaining clusters by mid-July. Slovak Construction: Slovakia’s construction output grew 13.2% year-on-year in April, down from March’s 29.9% surge, but still the strongest April result in 18 years; domestic new build and repairs rose while output abroad fell. Bratislava Trade: The UAE and Slovakia held their second Joint Economic Committee in Bratislava, focusing on energy and green tech, digitalisation and cybersecurity, agriculture and food, infrastructure, smart cities, and healthcare, with non-oil trade at $812.7m in 2025. HVAC Industry Push: The Clear Idea ran a 15-country Redge (formerly Lennox EMEA) HVAC distributor roadshow using a mobile Pulse Trailer, covering 60 events across Europe to rebuild brand recognition after the rebrand. EU Consumer Safety: An EU check of 88 remote-controlled toys found 60% failed interference rules, triggering bans and corrective actions across 13 countries, including Slovakia. Fiscal Spotlight: Slovakia ranked best among EU states in the latest European Commission assessment of compliance with fiscal rules, according to the Finance Ministry.

EU Economic Outlook: The European Commission’s 2026 European Semester Spring Package sets a roadmap for resilience and competitiveness, pushing reforms on the Single Market, innovation, decarbonisation, housing and skills while keeping fiscal sustainability in focus. Slovakia in the spotlight: Slovakia is reported to have the best result among EU states in the latest assessment of compliance with fiscal rules, with the Finance Ministry pointing to controlled spending. Bratislava–UAE business ties: The UAE and Slovakia met in Bratislava for the 2nd Joint Economic Committee, flagging cooperation in energy and green tech, digitalisation and cybersecurity, agriculture and food, infrastructure and smart urbanisation, plus healthcare, with non-oil trade at $812.7m in 2025. Retail pressure in the region: Eurostat data shows Cyprus retail trade volume fell 1% in April, reversing earlier growth; across the euro area retail volume dropped 0.4% month-on-month, with food up but non-food and fuel down. Defence industry delivery: Patria has completed the final batch of AMV XP 8×8 ambulance vehicles to Slovakia under the 2022 government-to-government deal, including technology transfer to strengthen local industrial capacity. Shipping rules: The IMO confirmed the HNS liability convention enters into force in November 2027, closing a long-standing gap for hazardous cargo compensation.

Slovakia–UAE Economic Push: The UAE and Slovakia met in Bratislava for their 2nd Joint Economic Committee, targeting growth in energy and green tech, digitalisation and cybersecurity, agriculture and food industry, infrastructure and smart urbanisation, and healthcare; non-oil trade hit $812.7m in 2025. EU Economic Roadmap: The European Commission adopted the 2026 European Semester Spring Package, urging reforms and investment to boost competitiveness, cut innovation gaps, accelerate decarbonisation, tackle housing pressures, and keep fiscal sustainability on track. Defence Industry Delivery: Patria has completed the final batch of AMV XP 8×8 ambulance vehicles for Slovakia under a 2022 government-to-government deal, part of a wider BOV 8×8 programme with technology transfer to strengthen local industrial capacity. Rail Connectivity for Industry & Trade: Leo Express will launch one of Europe’s longest direct rail routes on June 25, linking Germany, the Czech Republic, Poland and the Ukrainian border, with tickets from €10. Fuel Cost Pressure: New data shows fuel prices remain high across Europe; in Slovakia, 95-octane gasoline is listed at €1.737 and diesel at €1.648, adding pressure to household commuting budgets. Cybersecurity Watch: ESET reports a new Android spyware campaign (“Asin”) targeting Arabic-speaking users via fake utility and war-update sites, including domains impersonating government news and PDF tools.