Brussels has cautioned Slovenia that its 2026 budget plan risks breaching the EU’s fiscal rules, with projected net expenditure growth outpacing the maximum allowed under the bloc’s framework. The European Commission noted that Slovenia’s spending is set to rise by 19% compared to 2023—above the recommended ceiling of 17%—driven in part by the newly introduced mandatory Christmas bonus for all employees. Officials estimate the tax-free payment will cost around 0.3% of GDP.
Ljubljana acknowledges the warning, with the Finance Ministry stressing that the budget was prepared before parliament adopted the bonus.
State Secretary Saša Jazbec said the government will review public expenditure and address inefficiencies, especially as labour-related costs climb, including bonuses for workers and pensioners plus public sector wage reform.
Despite fiscal pressures, Slovenia received a boost with the European Commission disbursing an additional €440 million in Recovery and Resilience Facility funds, bringing total receipts to €1.54 billion. The country ranks among the EU’s most successful in drawing on post-pandemic support, though further payments hinge on fully meeting reform milestones by August 2026.
