Economy Ministry to provide EUR 640 million in development incentives

Ljubljana – The Economy Ministry announced that it will provide a total of EUR 640.7 million in development incentives this year, intended to raise productivity through the green and digital transition and to ensure a balanced development of Slovenia’s regions.

The Economy Ministry added that EUR 479.2 million are to be provided in the form of grants and EUR 161.5 million in reimbursements or subsidies for businesses, municipalities and other target groups.

Most of the funds will be directed towards tourism development – EUR 130.8 million, while EUR 117.3 million will be available for projects in entrepreneurship and internationalisation.

In addition, EUR 107.5 million will be made available for incentives for research, development and innovation, and EUR 88.5 million for investments to boost productivity and competitiveness.

Moreover, EUR 76 million will be available for regional development, EUR 56.5 million for digitalisation and EUR 29 million for the wood processing industry.

The ministry also announced a total of EUR 16.8 million for energy efficiency, EUR 12.8 million for the circular economy, EUR 3.1 million for social entrepreneurship and EUR 2.4 million for urban development.

With all these incentives, the ministry wishes to encourage investment into the green and digital transition, raise productivity and the competitiveness on international markets, provide for new jobs and ensure a balanced regional development.

Economy Minister Zdravko Počivalšek commented on the announced incentives by saying that the Slovenian economy has successfully withstood the pressures of the epidemic, became stronger than it was before the Covid crisis, and is now ready for further growth.

“The incentives will aim to strengthen the position and influence of Slovenian companies in global and domestic value chains, to stimulate the interconnection of companies, and to accelerate the much-needed investments into development,” he said.

The ministry expects to provide almost double the amount of grants in 2022 compared to last year with significantly more grants or subsidies to be channelled into productivity enhancement, research, development, innovation, and tourism.

The funds are to be provided from three sources – the EU’s Recovery and Resilience Facility is expected to provide EUR 397.3 million, with another EUR 217.2 million provided by completing the implementation of the EU budget 2014-2020 and the React EU programme, and EUR 26.2 million coming from the state budget.