AGP Executive Report

Drone Industry Security: Slovak police say they foiled a planned arson attack on a Skyeton drone manufacturing facility in eastern Slovakia, seizing incendiary materials and tools and detaining three foreign nationals (two in Slovakia, one in Germany), with the target valued at tens of millions of euros and about 70 workers potentially inside. EU Budget & Industry Policy: European Council President António Costa kicked off a “tour des capitales” in Bratislava with PM Robert Fico, pushing agreement on the 2028–2034 EU budget and stressing competitiveness, defence, enlargement and support for Ukraine, while Fico urged preserving cohesion and agricultural funding. EU–China Stance: Fico told EU leaders to pursue “friendly competition” with China rather than treat it as an enemy or add barriers, arguing competitiveness shouldn’t rely on tariffs. Energy Procurement: Orange Slovakia signed a 10-year physical power purchase agreement with Austrian Enery for 125,030 MWh from a 12.5MW solar plant near Banská Bystrica, aiming to lock in renewable supply and cost visibility. Agriculture Under Heat: The EU warns drought and extreme heat are hitting summer crops and fodder across western and central Europe, with impacts including Slovakia, and points to CAP support for irrigation and climate-resilient farming. Labour Costs: Slovakia’s minimum wage will rise from January to 972 euros, after tripartite talks failed, while employers argue the system links wage thresholds and bonuses too tightly to the minimum. Sugar Restructuring: Nordzucker plans to stop sugar production at its Nakskov plant after the 2026/27 campaign, keeping it as a packaging centre and potentially affecting up to 150 jobs.

EU Budget Talks: European Council President António Costa kicked off a capital tour starting in Bratislava to line up national positions on the 2028–2034 EU budget, with Slovakia pushing to protect cohesion and agricultural funding while defence, competitiveness and enlargement stay central. Energy & Industry: Orange Slovakia signed a 10-year physical solar power PPA with Austrian Enery for 125,030 MWh from a 12.5 MW plant near Banská Bystrica, aiming for 2027 commissioning and long-term cost visibility. Security for Manufacturing: Slovak police thwarted an alleged arson plot targeting a Ukrainian-owned drone factory (Skyeton), detaining three foreign nationals and seizing incendiary materials and site plans; authorities say the facility is worth tens of millions of euros. Agriculture Under Pressure: The EU’s JRC MARS bulletin reports heat and drought hitting summer crops and fodder across western and central Europe, with Slovakia among the hardest affected, raising stress on irrigation and livestock feed. Labour Costs: Slovakia’s minimum wage rises from January to 972 euros, after tripartite talks failed, with employers warning the automatic link to wage thresholds and bonuses could raise costs beyond productivity. Automotive Logistics: Croatia’s Port of Rijeka handled the first major shipment of Chinese cars, positioning the port for more automotive logistics growth as capacity limits expansion plans. Renewables & Procurement: Orange’s deal adds to a broader push for corporate renewable supply agreements across Europe, reinforcing long-term contracting as a hedge against volatile energy prices.

EU Budget Talks: European Council President António Costa has started a capital-by-capital tour, beginning in Bratislava, to shape the EU’s 2028–34 long-term budget before positions harden—focusing on defence, competitiveness, enlargement and support for Ukraine, with Slovakia pushing to protect cohesion and agricultural funding. Heat & Farming Pressure: The EU Commission’s JRC warns prolonged heat and low rainfall are hitting summer crops and fodder across western and central Europe, with the strongest impacts flagged for Austria, Czechia, Slovakia, Hungary and parts of Italy and Germany. Slovakia’s Security Tech: Slovakia’s National Security Authority warns some connected road speed cameras could expose vehicle data and enable remote access, after vulnerabilities were found in specific camera lines linked to Cyprus and Russia. Ukraine Defence Supply: The EU approved another €6.1bn for Ukraine air defence procurement under the €90bn Ukraine Support Loan, as leaders meet in Kyiv amid a growing Patriot missile and interceptor shortage. Industrial Supply Chains: A packaging rules backlash is growing among micro-businesses, with new PPWR/EPR registration and paperwork burdens pushing small sellers to stop shipping into the EU. Energy Deal in Slovakia: Enery signed a 10-year green power PPA with Orange Slovensko, backed by a new solar plant planned for 2027.

Slovak Nuclear Power Overhaul: Prime Minister Robert Fico says a new independent review will be carried out of EY’s valuation of CEZ’s stake in JESS, while the government pushes to move JESS under full state control to enable a new nuclear plant and target 100% ownership. EU Defence Procurement: The European Commission approved another €6.1bn for Ukraine air defence—missiles, ammunition and radars—under the €90bn Ukraine Support Loan, with delivery plans tied to increased production and destocking. Cyber Safety for Infrastructure: Slovakia’s NBÚ warns that connected road speed cameras could leak vehicle data and enable remote access, urging operators to identify affected camera systems. Energy & Renewables Deal: Enery signed a 10-year green power PPA with Orange Slovensko, supplying 125,030 MWh from a new 12.5 MW solar plant due in 2027. EU Rules Hit Small Industry: New EU packaging waste rules (PPWR) are triggering heavy compliance costs for micro-firms, with some small sellers reportedly stopping shipments into Europe. Food Security Pressure: Black Sea disruptions plus weaker harvests and higher energy/fertiliser costs are squeezing wheat flows and pushing prices, raising near-term risk for exporters. Construction Slowdown: Eurostat reports June construction production fell 1.3% in the euro area and 1.0% in the EU, with Slovakia down 4.6% month-on-month.

Climate & Resilience: Prime Minister Robert Fico said the Slovak government will help towns and villages hit by severe weather, with compensation available if local authorities apply, and he flagged climate change as an increasingly visible reality. Cybersecurity for Industry: Slovakia’s National Security Authority (NBÚ) warned that connected road speed cameras could leak vehicle data, allow remote access and open a path into public networks, after reviewing camera systems used by the Interior Ministry. Heavy Industry Deal: VTC has acquired the Silbitz foundry group from Deutsche Beteiligungs AG (DBAG) and DBAG Fund VI; Silbitz makes complex iron and steel castings across rail, power, marine engines, offshore wind and defence. EU Defence Procurement: The European Commission approved €6.1bn for Ukraine’s air defence (missiles, ammunition and radars) under the €90bn Ukraine Support Loan, with delivery scaling tied to production ramp-ups. Construction Slowdown: Eurostat reported June construction output fell 1.3% in the euro area and 1.0% in the EU, with Slovakia down 4.6% month-on-month. Food & Water Pressure: Heatwaves and drought are squeezing European agriculture and water supplies, with Slovakia cited among countries facing major grain production declines.

Construction Slowdown: Eurostat says June 2026 construction output fell 1.3% in the euro area and 1.0% across the EU versus May, with Slovakia down 4.6% month-on-month. Nuclear Resilience Under Drought: Hungary plans to restore full output at Paks by midweek after Danube low-water levels forced emergency steps; the plant supplies about 40% of Hungary’s power. Heat Hits Farming: Heatwaves, drought and wildfires are squeezing European agriculture—earlier grape harvests and major crop losses are already showing up, while costs rise for farmers. Slovakia’s EU Farm Push: Agriculture Minister Richard Takáč calls for stronger EU support for farmers, citing drought, low milk prices and high fertilizer costs. Security Red Flag in Transport Tech: Slovakia’s NBU says newly installed NERO R-ONE speed cameras have Russian backdoors and exposed live feeds, after a €30m EU-funded modernization spend. Automation in Pharma Logistics: Brightpick will add 44 AI picking robots for Dr. Max Group, bringing deployments to 74 across Czechia and Slovakia. Nuclear Governance Move: Slovakia seeks a seat on the IAEA Board of Governors, aiming to boost influence on nuclear safety and energy security.

Extreme Weather Hits Food Supply: Heatwaves and drought across Europe are withering crops, cutting harvests and raising costs for farmers, while wildfires also risk detonating buried World War bombs. Ukraine-EU Trade Pressure: Kyiv is pushing to renegotiate EU tariff-free agricultural export quotas from September, citing disrupted Black Sea routes and pressure to expand market access. Slovakia Agriculture Push: Slovakia is calling for stronger EU farming support as drought, low milk prices and high fertilizer costs squeeze producers. Nuclear Energy Role: Slovakia plans to seek a seat on the IAEA Board of Governors, aiming to boost influence on nuclear safety and energy security, including support for small modular reactors. Logistics Automation in Pharma: Brightpick will deploy 44 more Autopicker robots with Dr. Max Group, bringing the total to 74 robots across Czech and Slovak distribution sites. Security & Infrastructure Risks: Slovakia’s new NERO R-ONE traffic cameras reportedly faced security issues, including Russian backdoors and exposed live feeds, after an EU-funded modernization spend. Robotics Education Win: Bangladesh’s Team Atlas won a global robotics title in Japan with an AI-powered smart aquaculture platform for fish farming efficiency. EU Budget Talks: EU Council President António Costa kicks off a “tour des capitales” starting in Slovakia to build consensus on the 2028–2034 budget.

EU Budget Talks: EU Council President António Costa kicks off a “tour des capitales” starting in Slovakia to gather priorities for the 2028–2034 Multiannual Financial Framework, aiming for agreement by end-2026 amid deep divides over size and spending priorities. Agriculture Under Pressure: Slovakia backs stronger EU farming support as drought bites and costs rise, while Ukraine pushes to renegotiate EU tariff-free agricultural export quotas after Black Sea disruptions. Security & Compliance: Slovakia’s NERO R-ONE speed camera rollout is under scrutiny after the national security service flagged Russian backdoors and passwordless access risks in EU-funded purchases. Industrial Automation: Brightpick plans to deploy 44 more warehouse robots with Dr. Max Group, bringing the total to 74 autonomous mobile robots across Czech and Slovak distribution centers. Energy & Grid Flexibility: Czechia’s largest battery storage plant, Lipnice (57MW/120MWh), enters commercial operation—developed with Slovak partner EIF—supporting ancillary services and electricity trading. Cyber Threats: New Android malware “Manic” targets banks, e-identity apps and payments, with Slovakia among affected countries.

EU Budget Talks: EU Council President António Costa kicks off a “tour des capitales” starting in Slovakia to line up priorities for the 2028–2034 Multiannual Financial Framework, aiming for agreement by end-2026 amid election-driven political risk. Agriculture Under Pressure: Slovakia is pushing for stronger EU farming support as drought hits yields, while low milk prices and high fertiliser costs squeeze producers. Nuclear Governance: Slovakia seeks a seat on the IAEA Board of Governors, stressing nuclear safety and energy security and promoting innovative tech such as small modular reactors. Security & Industry Tech: Slovakia’s traffic-camera upgrade is under scrutiny after claims of Russian backdoors and passwordless live feeds in EU-funded NERO R-ONE deployments. Logistics Automation: Brightpick plans to add 44 robots with Dr. Max Group across Czech and Slovak distribution sites, expanding pharmaceutical warehouse automation. Cyber Threats: New Android malware “Manic” targets banking and identity apps, with Slovakia among affected countries. Construction Watch: Eurostat data show Slovakia’s construction production fell sharply in June, adding to a broader EU slowdown. Energy & Climate: NASA and ESA imagery underline record heat and drought across Europe, with knock-on risks for rivers, power supply and agriculture.

Automation in Pharma Logistics: Brightpick will add 44 Autopicker robots with Dr. Max Group, bringing the chain’s total to 74 deployed AMRs across Czech and Slovakia distribution sites. EU Farming Pressure: Slovakia is pushing for stronger EU support for farmers, citing drought, low milk prices and high fertilizer costs, and wants less bureaucracy after 2027. Nuclear Governance: Slovakia seeks a seat on the IAEA Board of Governors in September, stressing nuclear safety and energy security, including support for small modular reactors. Security & Infrastructure Risk: Slovakia’s NERO R-ONE speed camera rollout is under scrutiny after claims of SMS-activated Russian backdoors and passwordless access to live feeds, with the system reportedly deactivated. Construction Watch: Eurostat data show construction production fell in Slovakia (-4.6% month-on-month in June), dragging the EU and euro area trend. Industrial Cyber Threat: New Android malware “Manic” targets 169 apps and combines banking fraud with spyware, with Slovakia among affected countries. Energy & Flexibility: Czechia’s Lipnice battery storage plant (57MW/120MWh) enters commercial operation, supporting ancillary services and electricity trading. Agriculture & Food Trade: Slovakia calls for stronger EU farming funding as drought and commodity price pressure mount.

Cybersecurity & Finance: ThreatFabric reports a new Android malware family, Manic, targeting 169 apps and stealing banking PINs while also spying and taking remote control—its focus includes Ukraine and also banks/eID apps across Central Europe including Slovakia. Energy & Grid Resilience: Europe’s electricity system is under strain as persistent heat and record-low rivers cut generation and stress demand; the EU energy commissioner warns the situation could stay tense for weeks. Construction Watch: Eurostat data show eurozone construction output fell sharply in June, with Slovakia down 4.6% month-on-month while Romania rose 4.9%—a mixed signal for regional building activity. Circular Economy Deal: French recycler Paprec is buying a majority stake in Austria’s Brantner Green Solutions, expanding into Slovakia and other CEE markets. Power Storage: Czechia’s largest battery energy storage plant entered commercial operation at Lipnice (57MW/120MWh), developed with Slovak partner EIF. Agriculture & Food Processing: Slovakia’s sugar sector is adjusting after one refinery closure; growers shifted to Sereď, but drought and low sugar prices keep yields and profitability under pressure. Industrial Compliance: Planar filed suit against Neoti over claims about product origin and TAA status, citing its Slovakia manufacturing investment.

M&A & Circular Economy: French recycling giant Paprec is buying a majority stake in Austria’s Brantner Green Solutions, with the Brantner family keeping 20% and the deal expected to close in Q4 2026; Paprec says it’s a major step in expanding across Central and Eastern Europe, including Slovakia. Slovak Industry & Trade Compliance: Planar has filed suit against Neoti over claims about product origin and Trade Agreements Act status, arguing it has significant manufacturing in Prešov and supplies TAA-compliant solutions. Construction Watch (EU data): Eurostat shows eurozone construction output fell sharply in June, with Slovakia down 4.6% month-on-month—one of the steepest drops in the bloc—while Bulgaria posted a 0.9% rise. Energy & Water Stress: Europe’s electricity system is under pressure as heat and record-low rivers strain generation; Germany’s gas storage is also only about half full, raising winter supply anxiety. Agribusiness & Processing: Slovakia is operating with one sugar refinery after the Považie closure; Sereď is expanding, but drought and low sugar prices are squeezing growers. Security & Policy: Slovakia is among countries targeted by a US bill allowing up to 100% tariffs on oil imports from Russia. Nuclear Sector: ČEZ rejects corruption speculation around its JESS stake as Slovakia moves toward full state control of the nuclear project.

Construction Watch: Eurostat data shows EU construction output slipped in June, with Slovakia hit hardest (-4.6% m/m), while Bulgaria bucked the trend (+0.9% m/m, +4.4% y/y), underlining uneven building momentum across the region. Energy & Water Stress: Record-low rivers and scorching heat are squeezing EU electricity supply, with the energy commissioner warning the situation could stay tense for weeks as low water levels pressure generation and demand. Electricity Mix Shift: Solar overtook hydropower in the EU electricity mix for the first time in 2025, with both at 13.0% share, highlighting how renewables are reshaping power planning. Nuclear & Drought Risk: The Danube’s extreme low levels are raising concerns for nuclear and hydropower operations, as countries scramble to cover lost capacity via imports and mix changes. Slovakia Fiscal Pressure: Slovakia’s fiscal space is “exhausted” as debt rises, with the Budget Responsibility Council warning that another shock could force rapid, far-reaching consolidation. Nuclear Deal Politics: ČEZ rejected corruption speculation around the planned buyout of its JESS stake, keeping the spotlight on Slovakia’s nuclear ownership and investment path. Agriculture Under Strain: Slovakia’s agriculture minister briefed the government on drought damage and fodder crop problems, with possible export limits on animal feed flagged as a legal and funding challenge. Industrial Investment Signals: Asian industrial rentals in Central and Eastern Europe have doubled over three years, pointing to continued factory and warehouse demand tied to EU procurement and supply-chain shifts.

Nuclear Power Politics in Slovakia: Prime Minister Robert Fico says the state must settle ownership of JESS in September so Slovakia can move ahead with a new unit at Jaslovské Bohunice, while ČEZ rejects corruption speculation over the €189m valuation of its 49% stake and says the process was transparent and confirmed by Slovakia’s Finance Ministry. Fiscal Pressure: Slovakia’s Council for Budget Responsibility warns fiscal space is exhausted as debt climbs above 60% of GDP, with a risk of reaching around 75% by the end of the decade if no course correction is made. Energy & Renewables Shift: Eurostat data shows solar overtook hydropower in the EU electricity mix for the first time in 2025, highlighting how fast solar growth is reshaping generation. Water Stress Hits Industry: Drought is pushing European rivers and lakes to critical lows; Lake Zurich hit a record low, and the wider impact is already disrupting industrial transport, irrigation and electricity generation. Agriculture Under Strain: Slovakia’s agriculture minister will brief the government on drought damage and low milk prices, with fodder crops like maize for silage flagged as the biggest problem for livestock producers. EU Digital Enforcement: The EU’s e-Evidence rules now let investigators in member states demand digital data directly from tech firms with fast deadlines, changing how cross-border cases are handled. Czech Grid Storage: A 57 MW/120 MWh BESS in Czechia has gone online, aiming to support grid stability and ancillary services—another sign of storage moving from pilot to infrastructure.

Energy Storage & Grid Stability: Czech holding Suas Group and Slovak EIF have commissioned a 57 MW / 120 MWh BESS near Lipnice nad Sázavou, now Czechia’s largest operational battery system, aimed at balancing the grid, providing ancillary services to ČEPS and supporting day-ahead/intraday trading. Nuclear Power Governance: ČEZ has rejected corruption speculation tied to the planned buyout of its 49% stake in Slovakia’s JESS, as Prime Minister Robert Fico pushes for ownership arrangements to be settled in September and says the Economy Ministry should not derail the strategic nuclear project. Public Finance Pressure: Slovakia’s Budget Responsibility Council warns fiscal space is exhausted as debt climbs above 60% of GDP, with debt potentially reaching 75% by decade-end without action. Labour Market Strain: A study highlights workforce contraction across Central Europe, with Slovakia among the countries seeing employment decline, reflecting ageing and migration pressures. Rare Earths R&D: European Resources Ltd reports improved ANSTO Minerals test results for its Korsnas REE project in Finland, lifting combined magnet rare earth extraction to 92% after calcite removal. Digital Justice in the EU: The EU’s e-Evidence rules now let investigators request certain digital data directly from tech firms across member states with much faster deadlines. Tourism Demand in Eastern EU: Seven countries including Slovakia ask the European Commission for targeted support to boost connectivity and resilience in eastern border tourism regions.

Slovak Fiscal Watch: Slovakia’s fiscal space is effectively exhausted as public debt climbs above 60% of GDP, with the Budget Responsibility Council warning it could reach ~75% by the end of the decade—raising the risk of harsher consolidation and higher borrowing costs in the next shock. Nuclear Power Governance: Prime Minister Robert Fico says ownership of JESS must be settled in September, with the Government Office taking over the process from the Economy Ministry to secure full state control for a planned new unit at Jaslovské Bohunice. Sanctions & Industry Compliance: BELPOL reports sanctions-evasion links at Belarus’s Planar plant, including Slovak machine-vision cameras and French gearboxes. Energy & Transport Pressure: Europe’s drought is worsening, with record-low Danube levels disrupting freight and stressing power and agriculture supply chains. EU Digital Justice: The e-Evidence regulation is now fully applicable, letting investigators in EU states demand digital data directly from major tech firms on faster deadlines. Automotive Tech: Volkswagen EV drivers in Europe gain Digital Key access via Samsung Wallet for hands-free entry and phone-based locking/unlocking. Maritime Risk for Food Exports: With no ships entering Greater Odesa ports in late July and only limited recovery since, Ukraine’s grain export logistics remain under pressure. Workforce Reality: Slovakia is increasingly reliant on foreign workers—about 150,000—mostly via agencies and temporary roles, with many in automotive.