Promoting National Cohesion by Addressing Regional Disparity

The Ministry of Cohesion and Regional Development in Slovenia is responsible for implementing the Cohesion Policy of the European Union (EU), which provides investment funds to support sustainable development, economic growth, and reduce disparities across the EU—enabling all member countries to fully participate in and benefit from opportunities provided by the EU single market.¹

Slovenia’s national cohesion policy is informed by that of the EU. Established in 2023, the Ministry of Cohesion and Regional Development is responsible for the efficient management of the different EU Cohesion Policy funds, as well as other sources of grants, to reduce disparities between Slovenian regions by fostering regional development.²

Slovenia prides itself on having a well-developed polycentric urban network with numerous small and medium-sized towns.³ However, as with many member states of the EU, jobs are increasingly being concentrated in the major cities due to economic development, prompting people to move to them from more remote areas, which then become depopulated. As a result, Slovenia has grappled with low productivity in some regions, and an uneven pace of technological development and digital transformation, which impact its overall national economic competitiveness.

In particular, rural areas in Slovenia face challenges in raising the competitiveness of their agriculture, food, and forestry sectors. There is also a shortage of workers in the private and public sectors at both the national and regional levels.

The Ministry’s goal is to support all regions in Slovenia in raising their development level, by harnessing the unique development potential of different regions in Slovenia and connecting them to global economic opportunities. This will ensure a better quality of life for everyone in the country and thus foster national cohesion.

‍

Slovenia uses special development mechanisms to target less developed areas, to help them catch up with more economically advanced parts of the country.

EU Cohesion Policy funding is used to support a number of different regional development instruments.

In addition, Slovenia uses two further approaches to promote balanced regional development:

• Developmental incentives: The Slovenian Regional Development Fund (SRDF) was established in 1995 to stimulate social entrepreneurship and development. The SRDF grants loans to businesses with favourable interest rates and long periods of maturity to promote investments. In addition, the SRDF provides incentives in terms of guarantees and subsidies. By the end of 2021, it supported around 150 small and medium-sized enterprises (SMEs). The SRDF also transfers unneeded state-owned assets to municipalities and public funds to be used in new development projects, allowing for more targeted support for less developed regions.
• New economic opportunities: Slovenia also focuses on providing economic opportunities for specific targeted regions to boost competitiveness, create jobs, and promote sustainable development. For instance, Slovenia’s oldest town, Ptuj, located in the northeast of the country, was redeveloped in 2024. Using EUR 21m granted by the European Regional Development Fund (ERDF) and donations totalling EUR 4.9m, the old glassworks factory and its nearby streets were transformed into an award-winning events forum. Thanks to these redevelopment efforts, Ptuj is now a cultural and professional hub, inspiring a renewed sense of purpose and pride in its residents.

Planning for the Future

It is widely acknowledged within the EU that future economic growth will be driven by the twin pillars of green and digital transitions. Our new core development framework, the Slovenian Development Strategy 2030,⁴ will align our national development with smart and sustainable development principles consistent with EU Cohesion Policy goals for the 2021-2027 cycle.

While these transitions will bring new opportunities, they also risk creating new disparities, both across the EU and within member states. By promoting inclusive regional development in tandem with sustainability and digitalisation, Slovenia intends to ensure that every region can make use of these opportunities to reach their fullest potential in a way that ensures a high quality of life for all.

Supporting the Green Transition

EU legislation stipulates that at least 30% of ERDF resources and 37% of Cohesion Fund resources must be allocated to climate-related initiatives and the green transition. Slovenia will make full use of this funding to tackle our key challenges and to accelerate the transition to a low-carbon, circular, and climate-neutral economy.

While these transitions will bring new opportunities, they risk creating new disparities.

EU Cohesion Policy resources will go towards helping Slovenia shift to a zero-carbon economy by promoting initiatives supporting a clean and just energy transition, green investments, the circular economy, climate change mitigation and adaptation, risk prevention and management, and sustainable mobility.

Enhancing Energy Efficiency

Improving Slovenia’s energy efficiency will contribute to the modernisation of the economy and create jobs. Slovenia’s Integrated National Energy and Climate Plan identifies long-term energy targets for 2030.⁵ We will also introduce targeted measures for specific regions to ensure a smooth transition to green energy.

‍

‍

Using the EU Cohesion Policy’s Just Transition Fund (JTF), Slovenia will make EUR 249m available to support the green transition of two coal regions: Zasavska region and Savinjsko-Šaleška (SAŠA) region. Currently, we are inviting the regional authorities to draw up plans based on the needs of their respective regions. For example, the Energy Agency of Savinjska, Šaleška and Koroška region (KSSENA) submitted proposals in 2020 for transitioning away from coal in a manner that supports the local population. One of the recommendations is a programme to develop a skilled energy workforce, training workers to take on new ventures following the restructuring of the energy sector.

Greening Transport

Transforming Slovenia’s transport sector is a key priority, as it is currently the highest contributor to greenhouse gas emissions, accounting for 39% of total emissions in 2022.⁶ Upgrading our national transport infrastructure will also boost connectivity between regions and facilitate the flow of goods and services, supporting economic development. Hence, decarbonising and improving the national transport system are intertwined goals in Slovenia’s overall pursuit of sustainable development.

In 2020, the EU approved a Cohesion Fund investment of EUR 80m towards the construction of a second railway track between the port of Koper and the village of Divača in Western Slovenia. This second track will reduce bottlenecks along the transportation route and redirect traffic from road to rail, lowering emissions from congestion. It will also generate new economic opportunities once the different regions are linked up.

‍

Slovenia’s Cohesion Policy Programme for 2021-2027 Includes Measures That Support the Following Objectives:

Energy

• Promoting energy efficiency and reducing greenhouse gas emissions;
• Promoting renewable energy;
• Developing smart energy systems, grids, and storage outside the Trans-European Networks for Energy (TEN-E).

Transport

• Promoting the transition to a circular and resource efficient economy;
• Enhancing protection and preservation of nature, biodiversity, and green infrastructure, including in urban areas.

Other Goals:

Economy, Resources, and Biodiversity

• Promoting the transition to a circular and resource efficient economy;
• Enhancing protection and preservation of nature, biodiversity, and green infrastructure, including in urban areas.

‍

Cross-Border Cooperation

A more sustainable future is a vision shared by fellow EU member states, and environmental challenges and opportunities often span multiple national jurisdictions. Building on these shared interests, Slovenia’s green transition in the 2021-2027 cycle will also be supported by the European Territorial Cooperation programmes, also known as Interreg programmes, through collaborations with Slovenia’s neighbours, including Austria, Croatia, Hungary, and Italy. In the previous 2014 to 2020 cycle of the EU Cohesion Policy, a total of 24 projects between Slovenia and Hungary were approved via Interreg, promoting shared sustainable development in border regions. For example, the GO IN NATURE project saw the establishment of a network of nature-friendly tourism infrastructure in protected areas.⁷ By preserving the pristine environment while building up tourism infrastructure, the project aims to encourage an appreciation of natural ecosystems and attract visitors.

Beyond bilateral partnerships, Slovenia also participates in multilateral programmes that support climate resilience and the green transition as part of their priorities, including the Interreg Alpine Space Programme, Interreg IPA ADRION, Interreg Central Europe Programme, Interreg Danube Region Programme, and the  Interreg Euro-MED Programme.⁸

Realising Digital Transformation

For the 2021-2027 cycle, the EU Cohesion Policy has set aside EUR 40 billion for investments in the digital transition, including the development of digitals skills, digital technologies, and access to faster broadband connections in all EU regions. Of this, EUR 147m has been allocated to Slovenia to support its digital transformation.

These funds will go towards the digitalisation of government services to improve access to public services for all citizens, the promotion of digital literacy to empower citizens to use digital services to their advantage, and the digitalisation of business processes in the economy or private sector. We aim to foster integrated public services for businesses, citizens, and public institutions, help our SMEs digitalise, and enable digital transformation in business and finance, as well as in innovation and research environments.

One condition for a successful digital transition is to have infrastructure that can support broadband connections for high-speed and very high-capacity data transmission. On a national level, Slovenia’s Ministry of Digital Transformation oversees the Gigabit Infrastructure Development Plan 2030, which adopts the intermediate objective to provide by 2025 all Slovenian households with internet connectivity offering at least 100 Mbps, upgradeable to gigabit speed. The 2030 Plan will guide public funding allocation to support the construction of network infrastructure, especially in areas where there has been little commercial interest. Broadband coverage in rural areas is significantly lower than in the cities, due to poor broadband infrastructure. This is often compounded by dispersed settlement patterns in rural areas, which may deter businesses (such as telecommunications providers) from investing significantly there. By providing better infrastructure, we can support more equal opportunities for inclusion in the digital economy and digital society.

A cornerstone of Slovenia’s digital transition is the digitisation of public services, centring on the needs of the people and businesses. Under the Digital Public Services Strategy 2030, the government will actively engage groups of vulnerable individuals in co-creating digital services. This is to help bridge the digital divide and ensure that such services are inclusive for all users. The EU will also support digital public services that enhance the accessibility, effectiveness, and resilience of key services: including housing, healthcare, and social protection (especially for children and disadvantaged groups). Some approaches Slovenia is exploring include an e-authorisation system for older people to authorise others to carry out a specific e-service on their behalf, and public access points—such as libraries, post offices, and schools—which can be used by individuals without access to digital devices.

By providing better infrastructure, we can support more equal opportunities for inclusion in the digital economy and digital society.

Another of our focal areas is flexible upskilling programmes for graduates, especially in priority areas identified in Slovenia’s Sustainable Smart Specialisation Strategy. More generally, Slovenia seeks to reap the benefits of digitalisation for citizens, companies, research organisations, and public authorities. Towards this end, EU funding is available to support digitalisation for SMEs to achieve sustainable growth, competitiveness, job creation, and capability building in entrepreneurial and digital skills.

Looking Ahead

Slovenia’s policies to usher in a national green and digital transition under the Cohesion Policy’s 2021 to 2027 cycle are in their early stages of implementation. While there is more work ahead of us to see them through, we hope our current efforts will set a precedent for future initiatives, and lay the foundations for sustainable, smart, and inclusive regional development.

Ultimately, we want to achieve a peaceful, prosperous, healthy, and secure life for current and future generations of Slovenians, while respecting the limits of our planet and leaving no one behind.

‍