"The European Commission approved the modification of the plan "New Generation Lithuania" to almost its full extent, which opens the possibility for Lithuania to receive up to EUR 1.7 billion of funds under sufficiently favourable conditions. We will channel these funds to green, innovative, digital technologies, production and export of high value-added products, and further development of renewable energy resources. We project that the funds will reach the economy already at the end of this year," noted Minister of Finance Gintarė Skaistė.
At the same time, the Minister noted that Lithuania proposed to delay the deadline for the implementation of 4 milestones related to taxation due to prolonged discussions on the review of the tax system and the remaining uncertainty of the economy, but after the EC decided not to extend the deadlines, the Government maintains the position that tax reforms are necessary for Lithuania, and discussions on tax changes should continue.
"Responding to the recommendations of the European Commission and international institutions regarding the reform of the tax system being repeated to Lithuania for a decade and not implemented by the previous Governments, we see the strategic interest of the state in solving long-standing problems. Therefore, we have proposed difficult but necessary solutions for improving the tax system in order to make it more fair and transparent. The international community and the European Commission see the imperfections of our tax system as a fundamental obstacle to further move towards Western prosperity, so changes are necessary," said Minister G. Skaistė.
On 23 October, the EC adopted a positive assessment of the draft supplementation of the plan "New Generation Lithuania" with new investments; therefore, it is considered that Lithuania has negotiated on the supplementation of almost the entire Plan so far.
After a positive assessment of the supplementation of the plan "New Generation Lithuania" by the European Commission and the approval of the modification of the Plan by the Government to the extent approved by the EC, the final approval at the meeting of the Economic and Financial Affairs (ECOFIN) Council is expected before the end of the year.
Please note that on 14 May 2021, at the meeting of the Government ministers, a protocol resolution was adopted unanimously approving the submission of the plan "New Generation Lithuania" to the EC, and on 30 June 2023, the Government approved the draft modification of the plan "New Generation Lithuania", which was submitted to the European Commission, and on 23 October 2023, the EC adopted a positive assessment regarding the supplementation of the Plan with the new investments.
