The plan consists not only of investments, but also of reforms, the implementation of which usually requires political will.
“We are confident that we have satisfactorily fulfilled all the milestones of the RRF plan referred to in this application. The European Commission will assess this. We are confidently moving forward with the necessary steps for Lithuania, this time in the areas of health system, building renovation, education, tax reform, budget system and spending review, as well as in other areas," Minister of Finance Rimantas Šadžius stated.
The RRF plan is being implemented intensively: more than four-fifths (87%) of the reform action milestones have now been achieved and investments are proceeding at a rapid pace. In total, calls for projects worth more than EUR 3.8 billion have been launched, representing almost 100% of the plan's allocated funds. As of 30 June, project contracts were signed for EUR 3.578 billion, which represents 93% of the plan's funds.
To date, three payment requests have been submitted to the EC in order to report on the results of the plan “Next Generation Lithuania”. Including the fourth payment request, 106 out of 216 milestones were reported on to the EC. Currently, 4 milestones are still being implemented and will be reported on with other payment requests. Thus, a total of 110 out of 216 milestones were implemented, 68 reform milestones were achieved, as well as 42 investment milestones.
Like Lithuania, four more countries have submitted four payment requests, 16 countries have submitted 3 or fewer payment requests, and 6 countries have submitted five or more payment requests.
Currently, under the plan “Next Generation Lithuania”, Lithuania has received a total of EUR 1.8 billion, including advances. The plan “Next Generation Lithuania” is unique in that the funds are not disbursed for the costs incurred by the projects, but only when the milestones are achieved. The progress of the plan is monitored periodically, together with EC experts. Once a payment request has been submitted, the EC normally assesses it within two months and funds are allocated on the basis of this assessment, in agreement with the Council of the EU. The RRF plan, worth EUR 3.8 billion, is to be fully implemented, reported on and the last funds received from the European Commission by 2026.
Some of the specific milestones achieved are as follows:
Entry into force of the legislation on improving the working conditions and professional qualifications of health professionals, which includes provisions on wage regulation, workload, measures to improve the psycho-emotional state of doctors and a mechanism for on-the-job training of health professionals.
A competence platform for healthcare professionals has been set up, with functionalities to identify, monitor, plan and manage the re-skilling and up-skilling of healthcare professionals. The platform keeps records related to health professional licences, and links to the Register of Health Professional Practice Licences have been created.
Entry into force of the Action Plan on improving cooperation between healthcare facilities and modernising infrastructure for emergencies, which sets out requirements for the preparedness of healthcare facilities for emergencies and ensures the efficient use of human resources.
The necessary changes to the regulatory framework have been made to accelerate the renovation of buildings and to contribute to the greening of regions. As part of the amendments to the regulatory framework, legal acts such as the Resolution of the Republic of Lithuania approving the Action Plan for the implementation of the Long-Term Building Renovation Strategy were adopted and entered into force, which provides: a legislative plan to accelerate the transformation of territories and existing buildings and to validate the use of Building Information Modelling (BIM) technologies, as well as a plan for the implementation of district renovation initiatives and investment projects. The Technical Construction Regulation “Design and Certification of the Energy Performance of Buildings” has been amended to legitimise the energy performance of a renovated building not lower than Class B. The Technical Construction Regulation “Design of Wooden Structures” has been amended and guidelines for sustainable urban development have entered into force.
Digital transformation of education (ED TECH - EdTech Centre)has been implemented, including four milestones from the RRF plan. The project carried out the development of digital innovations in education, created the national platform for testing innovations in educational institutions EDtech Education portal | E-school | Discover, learn, improve. The project also improved digital competences at all levels of the education system, from pre-primary educators to higher education teachers, promoting the use of digital content and technological tools in education to improve educational outcomes: at least 2, 200 teachers, at least 800 higher education teachers have completed training to improve digital competences and implement digital educational innovations in schools, and at least 500 teachers have obtained an additional IT teacher qualification or an IT master’s degree in order to implement digital educational innovations in schools and strengthen the digital competences of all teachers.
At least 380 career professionals in schools provide career guidance that ensures the provision of quality information on further education or career opportunities.
Entry into force of legislation establishing a system of contracts with higher education institutions: In order to achieve this milestone, the Law on Higher Education and Research entered into force, creating a model for concluding contracts with higher education institutions, which provides for additional funding for the merging higher education institutions, as well as for other strategic objectives (expanding the activities of institutions, improving the quality of studies, investment in infrastructure and other operational changes requiring public investment). The conclusion of contracts is legalized in the Law on Higher Education and Research, by-laws regulating the conclusion of contracts with higher education institutions have been drawn up.
Legislation has been adopted to abolish or reduce tax exemptions and special tax regimes. Amendments to the laws on excise duties, environmental taxes and property taxes have also been adopted, increasing the role of taxes that do not hamper economic growth in the tax structure, as well as amendments to the legislation on personal income taxation. The aim of the tax reform is to balance the tax system by ensuring a more socially fair tax structure conducive to economic growth, by encouraging consumers to change their behaviour through taxation and by adapting to the changing needs of society.
The implementation of the project on medium-term budgetary planning covering the three milestones of the RRF plan has been completed. The benefits of the project include increased efficiency in the planning and use of continuous operational funds (following the review of public expenditure and the identification of not efficiently enough planned or used continuous operational funds, the tasks assigned to the appropriation managers for more efficient planning or redistribution of funds were implemented during the preparation of the draft State budget for 2024-2026), reliable, objective and reasonable planning of the State budget’s continuous operational funds, reliable and sustainable planning of the State budget for 2025-2027 focused on the achievement of the State’s strategic objectives.
Strategic guidelines and training modules for public sector employees have been developed and adopted: the Government has adopted strategic guidelines for the long-term training and competence development of public sector employees and a plan for the implementation of the strategic guidelines. The Public Management Agency has developed training modules to strengthen the competences of public sector employees: digital, financial-analytical and leadership competences, the implementation of which will increase the availability, quality and timeliness of public and/or administrative electronic services provided to Lithuanian residents.
More information on all achievements of the RRF plan milestones is available at: website of the plan “Next Generation Lithuania”.
