"When strategically-thinking states go hand in hand, they tarry no time in goal achievement. Therefore, the OECD membership represents the first priority of our Government and the people to that matter. Being among the most economically advanced countries of the world, Lithuania will enhance its competitiveness, gain a new momentum for growth and thus contribute to overall good of the OECD members", said the Head of Government.
The Prime Minister noted Lithuania's responsible approach to the implementation of the joint Lithuania-OECD action plan, which involves foreign expertise in reviewing state-owned enterprises, innovation policy, economic evaluation, youth employment and market openness.
"Our experts are working hard reforming the management model of individual areas of the national economy, in consideration of the OECD standards. We have a clear goal of taking over the experience of the most advanced countries of the world, also sharing our own experience with them, with a view to ensuring sustainable economic growth. Based on the recommendations of the OECD experts, we are ready to implement the necessary reforms leading us to a smooth accession to the organization", said the Prime Minister.
The Economic Assessment states that Lithuania's economy has managed to recover from the crisis relatively quickly. As noted by OECD Secretary-General Gurría, in recent years our countries' economy has been growing faster as compared to the other EU countries, and the accession to the euro zone is a result of Lithuania's work.
The Assessment recognises the fact that Lithuania has managed to re-orientate its exports to other markets quite successfully (the exports of the Lithuanian goods to the Middle East and Central Asian countries have increased significantly). It is also estimated that the unemployment rate will continue to decrease. The Assessment notes that Lithuania has undertaken effective measures against tax avoidance, and progress has been made in implementing infrastructure projects in the energy sector.
The Head of the OECD said that Lithuania should focus on increasing effectiveness of state-owned enterprises and continue to fight corruption by acceding to the OECD Convention, as well as draw attention to the issue of skills mismatches.
"Vocational skills have become an international currency", said Gurría in the meeting with the Prime Minister. According to the Secretary-General, Lithuania must find a way to address the shortage of skilled labour.
During the introduction of the OECD Economic Assessment of Lithuania, the Prime Minister commented on the main aspects of the Assessment and highlighted the OECD insights into the fiscal policy of Lithuania. "In the area of fiscal policy, we keep focusing on improving the growth-oriented tax structure accompanied by gradual reduction of tax burden on labour, with special focus on low-income earners", said the Head of Government.
The Prime Minister has emphasised that the Government pays attention to encouraging investment in R&D, continues reforming the state-owned enterprises and addressing the skills mismatches, as well as improving vocational training and the quality of the education sector.
"We pay close attention to encouraging inclusive growth. Low employment possibilities for low-skilled workers and low wages will be addressed by implementing the New Social Model. It presents a modernized regulation of labour relations, employment, social security, and pensions, seeking to promote economic development, ensure better conditions to create new jobs, and guarantee flexible and secure labour conditions", has noted Prime Minister Butkevičius.
The OECD recommends that Lithuania review the presence of temporary contracts in the labour market. The proposal has been included into the package of amendments to the Labour Code.
The Head of Government has also said that proposals will help ensure higher social security in case of unemployment, by way of higher unemployment benefits and longer-term allowances, and facilitate conditions to the eligibility thereto.
The aim of the Economic Assessment that has been presented today is to establish the effect of current economic policy measures on the long-term economic growth and macroeconomic situation in Lithuania. The Assessment has aimed to study the fiscal and financial policy, higher productivity, promotion of inclusive growth, and other areas, and recommendations have been provided.
On 4 June 2015, the OECD Ministerial Council officially invited Lithuania to open up the accession negotiation process. In January 2016, Lithuania submitted its Initial Memorandum of accession to the Organisation, which establishes Lithuania's initial positions on the OECD's legislation.
The OECD is an international economic organisation of 34 countries, and is often described as the club of successful countries. Membership of the Organisation offers a country higher visibility in the world, strengthens investment confidence, and opens up ways to broader export markets.
Membership of the OECD is a major priority of the Government. Lithuania expects smooth and fast negotiation process, and is ready to implement the OECD expert recommendations to speed up the country's economic modernisation.
