Commission staff working document In-depth review for Slovakia Prepared under Regulation 1176/2011 on the prevention and correction of macroeconomic imbalances

EUROPEAN COMMISSION COMMISSION STAFF WORKING DOCUMENT In-depth review for Slovakia Brussels, 13.5.2025 SWD(2025) 125 final Prepared under Regulation 1176/2011 on the prevention and correction of macroeconomic imbalances EN EN s Slovakia In-Depth Review 2025 This in-depth review presents the main findings of the Commission’s staff assessment of macroeconomic vulnerabilities for Slovakia for the purposes of Regulation (EU) No 1176/2011 on the prevention and correction of macroeconomic imbalances. It provides technical input to the Commission for the Communication “European Semester – 2025 Spring Package” that will set out the Commission’s assessment as to the existence of imbalances or excessive imbalances in Slovakia. That Communication will be published in June 2025. CONTENTS 1. INTRODUCTION 1 2. ASSESSMENT OF MACROECONOMIC IMBALANCES 2 2.1. External sector 2 2.2. Competitiveness 4 2.3. Housing market 6 2.4. Household debt 8 Conclusions 11 1. INTRODUCTION This in-depth review (IDR) analyses the evolution of Slovakia’s vulnerabilities related to cost competitiveness, external accounts, house prices and household debt. This year’s IDR, which follows the 2025 Alert Mechanism Report (AMR) published in December 2024, assesses the persistence or unwinding of the vulnerabilities identified last year, potential emerging risks, and relevant policy progress and policy options that could be considered...