Lithuania asks for a 1.8-billion-euro loan from the EU’s economic recovery fund
Lithuania is asking for a loan of over 1.8 billion euros from the EU’s economic recovery fund for investment, the Finance Ministry informed the European Commission on Friday, the 30th of June. Finance Minister Gintarė Skaistė says the most significant new investment is planned to focus on two areas: a billion euros will go toward loans to businesses and industry, and an additional 700 million euros toward electricity generation from renewable energy sources. It was said earlier that Lithuania was eligible for around 3 billion euros in loans and 2.2 billion euros in grants under the EU’s Recovery and Resilience Facility (RRF). The country had previously submitted a plan only for the grant part.
Ministry cuts Lithuania’s 2023 GDP forecast to 1 percent contraction
The Finance Ministry has revised its Lithuanian GDP forecast for 2023 to a 1 percent contraction, from its previous projection of 0.5 percent growth in March. The economy is expected to grow 2.5 percent in 2024, the ministry said in its updated economic scenario. It forecast an increase of 3 percent in March. “In the face of challenges, we expect temporary slowdown, with the country’s economy expected to grow by around 2.5 percent next year,” Finance Minister Gintare Skaiste said in the statement on Friday, the 30th of June. The Finance Ministry expects annual growth to accelerate to an average of 3 percent in 2025 and 2026.
President discusses ties with China, and other issues with EU leaders
President Gitanas Nausėda and other EU leaders discussed the bloc’s relations with China and other issues on the second day of their summit in Brussels on Friday, the 30th of June. In their draft end-of-summit statement, the EU leaders call on Beijing to press Russia to stop its war of aggression, but at the same time say that the bloc and China have a shared interest in pursuing constructive and stable relations. Relations between Lithuania and China turned sour after Vilnius allowed Taipei to open its representative office with the word “Taiwanese”, rather than “Taipei’s”, in its name in 2021.
Patriot air defence system for NATO summit to be stationed
Germany is deploying the Patriot air defence system in Vilnius in preparation for the upcoming NATO summit, the Lithuanian army said on Thursday, the 29th of June. The army also says other combat capabilities will be deployed in Lithuania in the run-up to the summit in accordance with pre-defined plans, procedures, communications, and logistics ideas. The Lithuanian army is getting ready to assign more than 3,000 troops for the event. The NATO summit in Vilnius will take place from the 11th to the 12th of July.
Ignitis Grupė to invest 25 million in start-ups
Lithuania’s state-owned energy group Ignitis Grupė said on Thursday, the 29th of June, it is set to invest 25 million euros in energy and climate change solutions start-ups via German’s World Fund over ten years. The shareholders agreed to Ignitis Grupė becoming a participant of the legal entity WF World Fund I GmbH & Co. KG as a limited liability partner on the basis of the Investment Management Services Purchase Agreement with WF World Fund Management GmbH. Ignitis Grupė has said earlier that World Fund has won an international tender to manage its second venture capital fund, adding that at least half of the fund’s investments will have to go into start-ups in the European Union and the European Economic Area.
Vilnius warns Budapest of implications of Sweden’s NATO bid delay
Vilnius called on Thursday, the 29th of June, on Budapest to “clearly understand” the security implications of its decision to postpone ratifying Sweden’s NATO membership to the autumn. “Hungary must clearly understand the consequences of the decision for the security of the entire NATO alliance, but especially for the Baltic region,” Foreign Minister Gabrielius Landsbergis said. Hungary’s parliament on Wednesday, the 28th of June, put off a vote on Sweden’s NATO accession until its autumn session, which most probably means that the Nordic nation will not join NATO ahead of the Alliance’s summit in Vilnius in mid-July.
The first female beatification case in Lithuania’s history sent to Vatican
The Archdiocese of Kaunas, Lithuania’s second-largest city, has sent to the Vatican the case of Adele Dirsytė, seeking her to become the first beatified woman in Lithuanian history, the archdiocese announced on Wednesday, the 28th of June. Dirsytė was a Catholic laywoman, a teacher at a Catholic youth organisation, took care of orphans and the poor, wrote articles on the education of girls and women, and contributed to several magazines. In the spring of 1946, Dirsytė and others were accused of anti-Soviet activities and in November 1946 she was sentenced to prison in Siberia. Dirsytė always kept the spirit alive of other prisoners, and she would be brutally beaten and tortured for her spiritual influence, the archdiocese says. She died on the 26th of September, 1955, with just a couple of months until the end of her sentence.
Lithuania bans transit of some dual-use goods via its territory
The government on Wednesday, the 28th of June, imposed a temporary ban on road shipments through and from Lithuania of dual-use goods that can end up in Russia and Belarus and be used in the war against Ukraine. The Cabinet approved a national control list of 57 groups of goods subject to the restrictions, mostly products with microelectronics and semiconductor components. After the EU imposed sanctions and banned the export of high-tech, strategic goods to Russia and Belarus, the Russian military industry has started to use parts, such as microchips or semiconductors, of day-to-day electronic devices, according to the Economy Ministry. The goods will be banned from crossing Lithuania’s borders with Russia and Belarus.
Cabinet approves minimum wage increase in 2024
The Lithuanian Cabinet approved on Wednesday, the 28th of June, a proposal to increase the minimum monthly wage by 10 percent to 924 euros before tax in 2024. If the parliament gives the go-ahead, the minimum hourly wage will be raised to 5.65 euros before tax, from the current 5.14 euros. Social Security and Labor Minister Monika Navickienė say that the planned minimum wage rise, coupled with a 20 percent increase in the non-taxable income threshold, means that the lowest earners will see their net salaries go up by 76 euros next year. The Social Security and Labor Ministry says that the minimum wage increase will cost the state an estimated 31.4 million euros next year. The minimum monthly wage currently stands at 633 euros after tax and 840 euros before tax.
Seimas accepts the tax reform package for further consideration
Lithuanian MPs on Tuesday, the 27th of June, gave their initial backing to a tax reform package after 72 lawmakers voted in favour, 31 were against and 22 abstained. The package will now go to parliamentary committees for further consideration and will return to the main hall in the fall. A total of seven amendments were submitted to the Seimas, proposing, among other things, an increase in the taxation of individual activity and changes for those working with business certificates, the introduction of an investment account and broader real estate taxation. Finance Minister Gintarė Skaistė said in the middle of May that if the government-proposed tax reform got stuck, Brussels would suspend payouts Lithuania under the EU RRF plan, and the amount of unpaid funds would be much higher than the 26 million euros currently withheld.
Brewer ends 2022 in red due to Ukraine war
Lithuania’s beer producer Kalnapilio-Tauro Grupė (Kalnapilis-Tauras Group), owned by Denmark’s Royal Unibrew, ended 2022 in the red due to the war in Ukraine and other factors. However, the loss was partly offset by a recovery in the local market. The group made a loss of 726,000 euros last year, after making a net profit of 1.6 million euros a year ago, and generated revenues of 81 million euros, a 15 percent increase from 71 million euros in 2021. The group’s export volumes fell by 23 percent after war in Ukraine started, the company said on Monday, the 26th of June.
Week in Lithuania: Bans transit of some dual-use goods via its territory; warns Budapest of delay
