Slovak President Zuzana Čaputová has appointed the country’s first technocratic government, to be led by former central bank deputy governor L’udovít Ódor as Prime Minister. The new government enters office following the resignation of now ex-Caretaker PM Eduard Heger, with a constitutionally limited mandate until the country’s new government is formed following snap elections this coming September.

Although a technocratic/expert government in nature, the new cabinet has outlined several policy priorities for the next few months. These include adopting the country’s budget for 2024, cutting the budget deficit, organizing the snap elections, continuing to support Ukraine as Russia’s war continues, tackling disinformation and hybrid threats, successfully implementing Slovakia’s national recovery plan to access post-pandemic EU recovery funds, and improving the utilization of EU funds spent in the country.

With only four months and two plenary sessions to go until the snap elections, expectations for significant policy and regulatory changes may be low, however parliamentary parties will likely aim to prove themselves active to attract more votes. At the same time – despite no firm alliances in parliament – occasional alliances could result in unexpected legislative initiatives, which is why businesses are advised to monitor parliamentary business in the next four months.

Below, Aretera provides further updates on the recent change of government in Slovakia and its implications for investors.