"We have received the official assessment of the first payment request from the European Commission, which states that indicator 31 has been reached. This is a significant result in a relatively short period of one and a half years. Great progress has been made in the implementation of the plan "New Generation Lithuania" and in dealing with the long-term outstanding challenges of Lithuania. The EC assessment will determine that, after the end of the official coordination procedures, more than half a billion euros will be transferred to Lithuania, which will be important for the further implementation of the plan," emphasized Minister of Finance Gintarė Skaistė.
Indicators of the plan "New Generation Lithuania" approved by the EC:
Green transition
Amendments to the Renewable Energy Law have been adopted, reducing bureaucratic obstacles and unnecessary burdens for both residents and businesses willing to obtain financing and produce clean and renewable energy; the system of accounting units for fuels from RES was launched, which will promote the production and use of advanced fuels in the transport sector; the information system on recharging points for public and semi-public electric vehicles www.eismoinfo.lt started functioning.
Digitalisation
The Competence Centre for Open Data and Digital Transformation has started operating in Lithuania, which will ensure that open data and high-quality electronic services are provided to businesses and residents; the Communications Regulatory Authority has issued permits for the use of radio frequencies for the deployment of 5G networks, which is why communication providers are starting to provide faster communication services to their users this year.
Quality of education in the regions, promotion of science and innovation economy
Rapid progress was made in the implementation of the project "Millennium Schools" – 57 municipalities were actively involved in the creation of the network "Millennium Schools"; the Innovation Agency and the Agency for Science Implementation Policy started their activities; concept of smart specialization was revised; career guidance system was strengthened.
Reducing social exclusion
The single person's benefit law came into force; changes in the pension indexation mechanism were implemented; uniform requirements for providing accredited social care were approved.
Public sector
A study on the effectiveness of personal income taxation and social insurance contributions in order to reduce poverty and income inequality was presented; completing the automation of two operational processes of the State Tax Inspectorate (STI) will speed up the work with data up to a dozen times and increase the efficiency of the State Tax Inspectorate's activities.
From the submitted first payment request, Lithuania continues discussions with the European Commission regarding the remaining two indicators related to the revision of the tax system. Partial progress has been achieved with respect to these indicators, and their full achievement, in the EC's assessment, requires more time. Based on the provisions of the Regulation of the Economic Recovery and Resilience Facility, a 6-month deadline is set, during which the implementation of the aforementioned two indicators is expected to be completed.
The payment request approved by the European Commission will be considered by the EU Council in the coming weeks. After completing all the formal coordination stages, more than half a billion euros will reach Lithuania. In total, together with the advance payment received last year, Lithuania will have received more than EUR 700 million – almost a third of the total amount of the plan "New Generation Lithuania".
"Dialogue with the European Commission regarding the two remaining indicators does not stop the implementation of the plan "New Generation Lithuania". Without waiting for the approval of the first payment request, last year we announced calls to the public and private sectors for EUR 1 billion, this year we intend to double this amount. In total, from the subsidies of the plan "New Generation Lithuania" until 2026 over EUR 2.1 billion will reach the Lithuanian economy," noted Minister of Finance G. Skaistė.
Since the beginning of the implementation of the plan, half of the reform actions of the plan "New Generation Lithuania" have already been completed, and the planned calls will include various areas: from business innovations, increasing energy efficiency to the application of advanced measures in the fields of education, health and social care, so every resident will feel the benefits of the investments.
The uniqueness of the plan "New Generation Lithuania" is that the funds are not paid out for incurred project costs, but only when the indicators are met, so the number of announced calls perfectly illustrates that both reforms and investments continue to proceed rapidly.
The plan consists of a total of 191 indicators, the progress of which is monitored periodically together with EC experts.
Additional information:
The plan "New Generation Lithuania" has been prepared, taking into account the programme of the eighteenth Government and the National Progress Plan for 2021-2030 as well as other national strategic planning documents. The reforms and investments of this plan will implement the Council's recommendations established to Lithuania during the Semester of the European Union in 2019 and 2020. The investments and reforms include 7 components: 1. Green transition; 2. Digitization; 3. Education; 4. Health; 5. Social security; 6. Innovation and science; 7. Transformation of the public sector.
The plan was approved by the Council of the European Union on 28 July 2021. The plan is funded by NextGenerationEU, the European Union's Economic Recovery and Resilience Facility.
