Slovakia faces rising public debt and pension savings gaps

Slovakia is confronting significant fiscal challenges as its public debt is projected to reach nearly 100 billion euros by the end of 2027, representing approximately 66.3 percent of GDP. While the accounting value of state-owned enterprises grew by 21 percent between 2012 and 2024, reaching roughly 20.4 billion euros, experts suggest the current model of state capitalism is unsustainable due to low dividends and rising debt servicing costs.

To manage these finances, some economists propose a new wave of privatization, suggesting the state sell enterprises it does not strictly need to own to reduce the national debt. Debt servicing costs are expected to reach 2.44 billion euros in 2027.

In addition to fiscal concerns, data from the OECD Pensions Outlook 2026 indicates a gap in retirement security. To reach a target pension income of 70 percent of previous gross wages, an average male worker in Slovakia would need to save an additional 3.9 percent of his gross salary, amounting to approximately 64 euros per month. This compares to a much higher requirement of 17.3 percent, or 360 euros per month, in Poland.