According to the European Commission, Lithuania made virtually no progress in 2015, it is called limited. Some little progress was achieved only in easing tax burden, reforming pension and health care systems and seeking to ensure that education meets the needs of the labor market. However, there are still many economic and social problems which need to be addressed immediately.
"Such an assessment by the Commission shows that Lithuania has made virtually no progress over the last year. The observations on reforms which face difficulties and are not carried out have been recurrent over the past several years. This is a very strong call to make more progress," the President said.
The pension reform, fiscal discipline and stability, improvement in tax collection, and the liberalization of the labor market – these are the areas that need immediate action from the Government.
Lithuania must also reduce poverty and social exclusion, which are still among the highest in the EU. There is excessive taxation on people with the lowest income and an outdated and too strict regulation of the labor market in our country. Our economic growth can also be halted in the future by a worsening demographic situation – declining birth rates, ageing population and the emigration of people of working age.
Although innovation is a key priority for the state, the higher education system is not sufficiently innovation-oriented. The development and uptake of innovation in those areas of life that are important for the well-being of people are too slow and limited. Lithuania must also make more progress in the field of energy efficiency. Energy consumption in households, transport and industry sectors is still too high, which increases costs for consumers and damages the country's economic competitiveness.
The EU's Annual Growth Survey, presented at the European Council meeting, has described re-launching investment, responsible fiscal policies and pursuing structural reforms to modernize economy as the key economic priorities of the Community. Lithuania and other EU members will have to take these priorities into account when forming their stability programs for the upcoming three years.
