AGP Executive Report

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.

Slovak Fiscal Watch: Slovakia’s Budgetary Responsibility Council warns fiscal space is exhausted as public debt tops 60% of GDP, with debt potentially rising toward 75% this decade—leaving less room for shocks and raising the risk of painful consolidation. Nuclear Power Governance: Prime Minister Robert Fico says ownership arrangements in Slovak Nuclear Energy Company (JESS) must be settled in September, with the state planning to buy CEZ’s shares to gain full control over the Jaslovské Bohunice new nuclear project. Energy & Industry Risk: Rystad Energy reports Russia’s crude production is entering “a new era of constraint,” cutting its 2026 forecast to 8.95m bpd as sanctions and Ukrainian strikes disrupt refineries and export terminals. EU Climate Policy: The European Commission’s ETS revision is set to intensify the fight between climate ambition and industrial competitiveness, with heavy industry facing new allowance rules. Drought Hits Supply Chains: Europe’s worsening drought is shrinking rivers and straining transport, agriculture and energy—Slovakia is among the central-western areas flagged as “stable and critical” then deteriorating. Rail & Manufacturing: Škoda Group’s fast-delivered electric multiple units enter service in Bulgaria, while Slovakia-linked engineering continues with STV Machinery preparing serial production of new BMP-1 armored hulls. Workforce & Migration: Slovakia relies on foreign labour as the local market tightens, with many workers in automotive and auxiliary roles—while separate visa pauses abroad could ripple into agriculture and regional staffing. Security & Critical Infrastructure: A Europe-wide drone threat is escalating, with airports and infrastructure increasingly targeted by both small and larger military drones.

Fiscal Pressure: Slovakia’s Budgetary Responsibility Council warns rising public debt has drained fiscal space, with debt above 60% of GDP and a risk of 75% by decade-end, meaning future crises could force painful consolidation and threaten financing flexibility. Energy & Industry: Drought and record-low river levels are increasingly disrupting transport, agriculture and power generation across central Europe, with Slovakia named among the hardest-hit countries. Nuclear Watch: Record-low Danube conditions are already forcing output cuts and shutdowns elsewhere in the region, underlining the cooling-water risk for nuclear operators. Nuclear Project Governance: Premier Robert Fico says ownership arrangements in the Slovak Nuclear Energy Company (JESS) must be settled in September as the state prepares to buy CEZ’s stake to secure control for a new Jaslovské Bohunice facility. Rail & Manufacturing: Škoda Group’s electric multiple units enter service in Bulgaria after a fast delivery, while Slovakia’s STV Machinery prepares serial production of new BMP-1 hulls after building prototypes. Automation & Supply Chains: Arrow Electronics expands IBM distribution coverage to include Slovakia, boosting access to infrastructure, automation and data solutions for local channel partners. Workforce: Slovakia is increasingly reliant on foreign labour, with around half of residence-permit holders working in automotive and companies citing a locally exhausted labour market. Security & Tech: A new report highlights WindRelay Android malware that can turn phones into tools for NFC payment fraud, raising fresh cybersecurity concerns for consumers and businesses.

Drought & Industry Shock: Europe’s worsening drought is hitting Slovakia and the wider region hard, with record-low river levels restricting freight traffic and threatening agriculture and energy output; satellite and research findings point to shrinking waterways and drying soils across central-western Europe, including Slovakia. Energy Security: The Danube’s low levels are now a direct risk to nuclear power in Central Europe, with Hungary forced to slash output at Paks and Romania shutting down its last working reactor as cooling water becomes scarce. Slovak Defence Manufacturing: STV Machinery in Dubnica nad Váhom is moving toward serial production of new BMP-1 armored hulls, after building and testing prototypes, with the first batches planned for 2026–2027. Slovak Economy Watch: Slovakia’s GDP growth slowed to 0.7% in Q2 2026, with analysts citing a stagnant industrial sector under weak external conditions. Cybercrime & Payments: New Android malware campaigns (WindRelay) are turning phones into fake payment terminals, enabling real-time card fraud. Trade Tensions: Poland is refusing to lift its ban on Ukrainian grain, keeping pressure on regional agri-food supply chains. Automation Deal: Bratislava-based SIPRON is partnering with Zimbabwe’s HIT to expand industrial automation, machine design and engineering services.

Drought Pressure on Industry: New satellite and river-level reporting shows Europe’s major waterways are shrinking fast, with the Danube, Rhine and other routes hitting record-low conditions that are already disrupting freight, irrigation and power generation—an issue that directly affects Slovakia’s supply chains and energy planning. Slovak Defence Manufacturing: STV Machinery in Dubnica nad Váhom is moving toward serial production of new BMP-1 armored hulls, after building two prototypes and digitizing designs for modern materials and configurable powerplant options. Slovakia Economy Watch: Slovakia’s GDP growth slowed to 0.7% in Q2, with analysts pointing to a stagnant industrial sector under weak external conditions and competitiveness pressure. Wind Energy Policy Shift: Slovakia’s environment ministry plans to cut wind development zones from eight to one (split into two areas in the east), with municipal consent now central to approvals. Cybercrime Alert: A new Android banking scam, WindRelay, uses remote control and NFC relaying to drain cards in real time, highlighting ongoing risks for payments and logistics-linked fraud. Industrial Automation Deal: Bratislava-based SIPRON signed a cooperation pact with Zimbabwe’s HIT to expand industrial automation, machine design and production-line engineering training.

Drought & Energy Risk: Record-low Danube and other European rivers are exposing climate pressure on power generation, with Hungary forced to cut output at Paks and Romania shutting its last reactor as cooling water becomes harder to secure. Slovak Economy Watch: Slovakia’s GDP growth slowed to 0.7% in Q2, with analysts pointing to a stagnant industrial sector under weak external conditions and falling competitiveness. Wind Power Policy: Slovakia is tightening its wind rollout by removing most proposed development zones, leaving only one eastern area split into two zones, with local consent now central to approvals. Cybercrime in Payments: A new Android malware campaign, WindRelay, tricks victims into using their own phones to relay NFC card data to fraudsters in real time. Industrial Automation Link: Bratislava-based SIPRON signed a cooperation deal with Zimbabwe’s Harare Institute of Technology to support industrial automation, machine design and production-line training. Mining & Trade: Ukraine’s iron ore exports fell 27% year-on-year in the first seven months, with shipments to Slovakia and Poland also down sharply. Agri-Trade Tensions: Poland says it will not lift its ban on Ukrainian grain, arguing imports should go to third-country markets, not stay in the EU.

Energy & Climate Risk: Record-low Danube river levels are forcing Hungary to slash output at Paks and pushing Romania to shut down its last working reactor, reigniting the question of how Central Europe will cool nuclear plants as drought intensifies. Slovak Wind Policy: Slovakia is cutting back wind energy development zones, removing seven of eight proposed areas and leaving only one eastern region split into two zones, with local consent now central to approvals. Industrial Performance: Slovakia’s GDP growth slowed to 0.7% in Q2 2026, with analysts pointing to a stagnant industrial sector under external uncertainty and weaker competitiveness. Cybercrime & Payments: A new Android malware campaign, WindRelay, can turn phones into fake NFC payment terminals and relay card data in real time, enabling remote fraud after victims install a malicious app. Security & Supply Chains: Poland says it foiled a Russian plot targeting Ukrainian blogger Kyivstoner, with alleged drone logistics routed via Slovakia, Poland and Belarus. Trade & Food: Black Sea blockade risks are again threatening global food security as Ukraine and Russia trade blame over grain flows.