An international analysis reveals how SAŠA, through a coordinated transition, strong institutions, and thoughtful development, can become one of Slovenia’s key regions of the future.
Between 2024 and 2025, the OECD, in cooperation with the Ministry of Cohesion and Regional Development, the European Commission, regional development agencies, and both Just Transition Centres, conducted a comprehensive analysis of challenges and opportunities in the SAŠA and Zasavje regions. The project included field visits, workshops with representatives of municipalities, businesses, research institutions, trade unions, and civil society, as well as in-depth data analyses. The result is a comprehensive overview of the situation and a clear set of recommendations designed to help the regions achieve a successful and just transition away from coal.
For the SAŠA region, the OECD notes that the region is in an extremely sensitive phase. Coalmine Velenje and Thermal Power Plant Šoštanj still employ more than 2,000 people, meaning the region is both dependent on coal and already under pressure to build new economic foundations in a short period. Despite this, SAŠA has significant development advantages: strong research and educational institutions, technological projects, planned incubators like the Centre of the Future and Velenje Technology Park, and a high proportion of green areas that enable the development of new activities.
The OECD warns that progress in project implementation is uneven.
Procedures are often lengthy, project proposals are insufficiently prepared, and municipalities face limited human resources. Furthermore, the future of the Just Transition Centres after 2029 is uncertain, creating a risk of interrupting key support functions. The region also lacks its own statistical status, which complicates monitoring the effects of the transition and planning measures.
The OECD therefore recommends that SAŠA formulates a unified, long-term development vision that connects existing strategic documents and sets clear goals for the period up to 2030, 2040, and 2050. Such a vision would enable more coordinated decision-making, easier investment planning, and greater recognition of the region at the national level. An important step is also strengthening project preparation: the SAŠA Just Transition Centre should become the central point for preliminary verification of project ideas, ensuring that only mature, well-prepared projects are submitted for tenders.
The OECD also emphasizes the need for better inter-ministerial coordination at the state level, as projects involving multiple ministries often get stuck in approval processes. Regular meetings at the level of state secretaries could significantly shorten the time from idea to implementation. For the long-term stability of the transition, it is also crucial to ensure permanent funding for the SAŠA Just Transition Centre, which must remain the central institution supporting municipalities, businesses, and residents even after European funds expire.
The full report can be read at the link:
The region has strong development projects, but the OECD warns that these must also create opportunities for local businesses. Therefore, it recommends systematically connecting anchor projects, small and medium-sized enterprises, and educational institutions to retain knowledge and value within the region. It is also essential to strengthen training and education that will prepare workers for new professions in energy, advanced manufacturing, and services.
The OECD analysis confirms that the SAŠA region has all the conditions to become one of Europe’s most successful regions in the process of phasing out coal. The key to success, however, will lie in rapid project implementation, a strong regional vision, and a stable support structure that will enable residents and businesses to confidently navigate a new economic era.
How Slovenia can strengthen its regions: insights into development potential
In its report Building More Competitive Regions in Slovenia, the OECD warns that while the Slovenian economy has strengthened significantly over the last decade, the benefits of growth are not evenly distributed among regions. Ljubljana and its wider area attract the most foreign investment, research activities, and high-productivity jobs, while many other regions – including SAŠA – lag behind due to structural limitations, demographic trends, and a lack of development capacity.
The OECD highlights that regional disparities in Slovenia are deepening primarily due to the concentration of capital, knowledge, and talent in the Central Slovenia region. This reduces the attractiveness of other areas for new investments and makes it difficult to create quality jobs. Contributing factors also include spatial constraints, a lack of suitable land for development, lengthy permit acquisition procedures, and demographic challenges, which are more pronounced in some regions than others.
For the SAŠA region, these findings are particularly important, as the region simultaneously faces restructuring and the need for rapid development of new economic activities. The OECD emphasizes that the success of the transition will also depend on the broader national framework – on how effectively Slovenia strengthens regional development, improves governance between the state and municipalities, and ensures stable funding sources for development institutions, such as regional agencies.
The report warns that Slovenia’s multi-level governance system is fragmented. With 212 municipalities, more than half of which have fewer than 5,000 inhabitants, the implementation of development projects is often slow and inefficient. The OECD therefore recommends encouraging municipal cooperation, strengthening joint services, and improving coordination among ministries, regional actors, and local communities. For regions like SAŠA, this would mean faster procedures, greater clarity in development planning, and better support for project implementation.
A significant emphasis of the report is also the need for stable funding for regional development. Currently, Slovenian regions are heavily dependent on European funds, which limits long-term planning. The OECD proposes establishing a national development fund that would enable the financing of projects with a clear regional impact, even when they do not meet the criteria of European cohesion policy. For the SAŠA region, this would mean greater predictability and the possibility of financing projects crucial for the transition but not falling within existing European frameworks.
The report also emphasizes the importance of strengthening the capacities of regional institutions. Development agencies and their Just Transition Centres play a key role in project preparation, supporting municipalities, and connecting stakeholders, but they are often limited by project-based funding and a lack of staff. The OECD therefore recommends more stable funding, greater professionalization, and a clearer role for these institutions within the national system of regional development.
Finally, the OECD highlights that Slovenia will only be able to reduce regional disparities with a stronger system for monitoring and evaluating the effects of development policies. Better data, greater transparency, and regular reporting on progress are crucial for effective transition management – both at the national and regional levels.
The full report can be read at the link:
Building More Competitive Regions in Slovenia
Why Slovenia needs a stronger regional policy: key messages of the Regional Development Strategy 2026–2050
The Slovenian Regional Development Strategy 2026–2050 provides the most comprehensive overview of the state of Slovenian regions to date and clearly states: Slovenia will only be successful in the long term if its regions are also successful. The document notes that in recent decades, Slovenia has developed rapidly but unevenly. The Central Slovenia region has become the country’s prominent employment and economic hub, while many other regions – especially border, rural, and transition regions like SAŠA – lag due to demographic trends, a lack of higher value-added jobs, and poorer access to services.
The Strategy warns that previous regional policy relied too heavily on infrastructure projects and too little on strengthening the economic and employment foundations of the regions. The consequence is centralization driven by labor migration to Ljubljana, concentration of investments and services, and the emigration of young people from less developed areas. If Slovenia were to continue on this path, the disparities between regions would deepen further, which would weaken the entire country in the long term.
The document therefore proposes a different development model – polycentric development, which strengthens regional centers, improves access to services, and creates conditions for people to live and work in their own region. This approach reduces pressure on Ljubljana, while allowing regions to leverage their potential: from industry and tourism to research, innovation, and green technologies. The Strategy emphasizes that polycentric development is crucial for social justice, quality of life, and the country’s long-term economic resilience.
Special emphasis is placed on regions in transition, including SAŠA. The Strategy clearly states that these areas must receive enhanced support, as they face economic restructuring, demographic pressures, and the consequences of closing traditional industries. Strong regional institutions – development agencies and Just Transition Centres – are key to the success of the transition, and they must have stable funding, a clear mandate, and sufficient human resources.
The Strategy also highlights demographic challenges that will significantly impact regions in the coming decades. An aging population, the emigration of young people, and a shortage of skilled labor will require coordinated measures in education, immigration, housing, and access to services. Regions with the lowest educational attainment and weakest digital skills will need additional support to maintain competitiveness and quality of life.
An important part of the strategy is also the spatial aspect. A polycentric urban system, well-connected regional centers, accessibility of public services, and quality transport infrastructure are fundamental for balanced development. The document warns that many services in rural and border areas are shrinking, creating a vicious cycle of decline. Therefore, the strategy proposes innovative models for service provision, digitalization, and better connectivity, which can reduce disparities between areas.
Environmental challenges – from climate change to air quality and nature conservation – are treated in the strategy as a key part of regional development. Regions face varying degrees of exposure and adaptive capacity, so targeted measures that consider local conditions will be necessary. The document emphasizes that sustainable land use, landscape preservation, and reducing environmental pressures are essential for the long-term well-being of residents.
The Strategy can be read at the link: