Foreword 3

Acknowledgements 4

Reader’s Guide 9

Abbreviations and acronyms 12

Executive summary 14

1 Introduction 19

  Context and rationale 19

  EU integration 20

  Report scope 22

  References 23

  Notes 23

2 Macro-financial stability cluster 25

  MS.01. Inflation rate 28

  MS.02. Exchange rate stability 29

  MS.03. General government balance 30

  MS.04. Long-term government interest rates 31

  MS.05. Current account balance 32

  References 33

  Notes 35

3 Infrastructure and connectivity cluster 39

  IC.01. Road infrastructure density 42

  IC.02. Rail infrastructure density 43

  IC.03. Rail freight intensity 44

  IC.04. Power losses 45

  IC.05. Electricity cost for non-household consumers 46

  IC.06. 4G coverage 47

  IC.07. Broadband speed 48

  References 49

  Notes 50

4 Skills cluster 53

  SK.01. Labour productivity 56

  SK.02. Employment rate 57

  SK.03. Gender gap in labour participation 58

  SK.04. PISA performance: Mathematics 59

  SK.05. Youth NEET rate 60

  SK.06. Labour force with advanced education 61

  SK.07. Lifelong learning participation 62

  SK.08. Patent applications 63

  References 64

  Notes 66

5 Business environment cluster 69

  BE.01. Domestic credit to the private sector 72

  BE.02. Bank non-performing loans 73

  BE.03. Private Investment 74

  BE.04. Foreign direct investment in tradable sectors 75

  BE.05. Control of corruption 76

  BE.06. Estimated informal employment 77

  BE.07. Trade flows 78

  BE.08. New business creation density 79

  References 80

  Notes 82

6 Digital transformation cluster 87

  DG.01. Population with digital skills 90

  DG.02. Internet use by individuals 91

  DG.03. Internet use for interacting with public authorities 92

  DG.04. Internet use for purchases 93

  DG.05. Businesses with a website 94

  DG.06. Businesses using AI technologies 95

  DG.07. ICT services export 96

  DG.08. Secure internet servers 97

  References 98

  Notes 99

7 Greening cluster 103

  GR.01. CO2 emissions intensity 106

  GR.02. Renewable energy installed capacities 107

  GR.03. Energy productivity 108

  GR.04. Water productivity 109

  GR.05. Municipal waste intensity 110

  GR.06. Municipal waste disposed in landfills 111

  GR.07. Air pollution premature deaths 112

  References 113

  Notes 114

Annex A. Economy profiles 117

Annex B. Methodology 130