WORKING ABROAD / DEC. 27, 2012
version 20, draft 20

The New Government in Lithuania Starts with the Stability Plan

Press Release: Published December

The new centre-right coalition Government of Lithuania starts with the implementation of a specific measure plan to sustain financial stability. The Government also aims at introducing necessary structural and state governance reforms. Newly appointed Prime Minister Andrius Kubilius, a Conservative, is an experienced politician who had already headed the Government eight years ago and introduced reforms that led to economic growth.
“The Programme of the Government is not merely an action plan, it also provides for structural reforms in the fields of education, health care, state governance, and expenditure efficiency. I do believe that economic difficulties are the best time to brave the challenges as they make us act. We promise to be a vigorous and efficient Government, ready to assume a responsibility of a building-up social leadership for strengthening our national ambition and leading the country onto a more dynamic and innovative course”, Prime Minister Kubilius said.
The core of the Government Programme, the financial sustainability plan, is to be implemented by cutting the expenditure and retaining the revenue to the budget. The Programme focuses on the reduction in public sector spending, revision of social benefits and allowances, regulation of the tax system and a carefully weighted balance of public finances.
The new Government also aims at fostering business by improving legal and financial conditions for small and medium-sized enterprises as well as establishing special schemes to stimulate investment in high value-added industries. Improvement of national governance, administrative reform, strengthening of local authorities and provision for direct election of mayors are foreseen in the Programme of the new Government.
The key priorities of the Government Programme on EU are: solidarity-based energy policy, properly functioning internal market, beneficial science and innovation policy, further EU enlargement, proper evaluation of crimes by totalitarian regimes, and accession to the Euro zone.
The new Government is formed of four centre-right parties: the core of the coalition is one of the first and major Lithuanian parties Homeland Union-Lithuanian Christian Democrats (Conservatives), two liberal parties – Liberal Movement and Liberal Centre Party – and the recently established National Revival Party.
Prime Minister Kubilius was also the Head of the 10th Cabinet of Lithuania during 1999-2000 and worked under challenging economic conditions of that time. Following the economic crisis in Russia, he introduced and implemented rational measures to stabilize the situation that ensured further economic growth.

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