Dear Fellow People of Lithuania,
Distinguished Members of the Seimas,
We gather here today, having recently celebrated twenty years of membership in the European Union and NATO.
We gather as proud and brave citizens of Lithuania, a free and independent nation with high aspirations for itself and others.
For the past 15 months, we have been living in an electoral mood. We voted in local and mayoral, presidential and European elections.
Voters listened to what the candidates had to say and, most importantly, judged their words against their actions. And they also had their say.
With the upcoming parliamentary elections, all key state institutions will have their mandates renewed. Elected politicians will have to work. But in which direction?
To answer this question, we must first take an honest and accurate look at where we stand today.
The recent anniversaries of our EU and NATO membership have highlighted achievements that we can and must be truly proud of.
What we have worked for in the past – our efforts to uphold the rule of law, to boost the economy, to contribute to building a united democratic Europe, and to strengthen regional and national security with our allies – has yielded results.
Never before has Lithuania produced so much material wealth. Never before has the voice of modern Lithuania resonated so powerfully in the international arena. Never before has our country had so many concrete security guarantees, affirmed not only in Brussels, Washington, and Madrid but also in Vilnius. And never have we been more united than in recent years, when Ukraine needed our help.
The past two decades have given us more self-confidence. Today, we are not afraid to dream bigger and strive for even more. To go beyond what is possible.
We really can if we want to. Or when there is no other way. We prove it time and again when a crisis strikes. Together, we have withstood the challenges of the coronavirus pandemic, energy prices and illegal migration. Together, I believe, we will also withstand future crises.
But that alone is not sufficient in the life of a nation. We cannot focus all our attention on extinguishing fires while neglecting their root causes.
We need to address challenges in national security, law and order, social policy, healthcare, education, transport, and many other areas before they escalate to a critical level. Before bridges start collapsing. Before tractors congest the streets of Vilnius. Before teachers go on protest strikes. Before judges, prosecutors or police officers leave their jobs en masse. Before those struggling to care for their loved ones resort to desperate measures.
We cannot continue to artificially divide, split and sort Lithuania. There can be no First, Second or Third Lithuania. We cannot dismiss entire regions or groups of people as mere deadweight. We cannot treat communication with the people of Lithuania as something reserved only for special occasions like Christmas.
Enough with divisions – they only serve our adversaries.
Lithuania has always been one and indivisible. When we stood together in the Baltic Way, when we sought to regain independence and when we defended our freedom, we were guided forward by shared goals and ideals.
To continue growing and prospering, Lithuania must resist centrifugal forces. We must resist the temptation to retreat into social bubbles and blame each other.
We need to talk, listen and seek common ground. Honest dialogue is the foundation of a stronger and safer state based on respect for human values.
We need a state that creates and shares wealth in solidarity, rather than selectively distributing it among a privileged few. A state that turns to its people – especially those who need help and support.
Only by achieving this goal can we harness the full potential of Lithuania – all of its people. Then, we will not have to wonder why poverty, disillusionment and distrust of state institutions are passed down from generation to generation. There will be no need to be surprised that voters vote the wrong way. That they support the wrong people. Or do not vote at all.
It is our duty to do more and better to ensure our future safety and security. This cannot happen without a fair distribution of the common good.
Today, Lithuania still struggles with income inequality. Large disparities between regions remain a serious problem. The quality of public services is unsatisfactory in many places, and accessibility is very uneven.
In such a situation, it is difficult to demand that all Lithuanian people equally take responsibility for their country. Some simply cannot. They cannot because they constantly have to fight for their dignity and that of their children and loved ones.
Therefore, building a welfare state is not some vague, abstract concept. A welfare state begins where efforts are made to reduce exclusion. Where the state makes a concerted effort to care for the most vulnerable members of society – strengthening itself in the process.
I am glad to say that aspirations for a welfare state are increasingly reflected in the country’s political agenda. There is a growing understanding that in many cases only a few extra steps are needed. And more political will. Less obstructive stubbornness and behind-the-scenes games.
I believe that reducing exclusion will eventually become a fundamental goal in many areas of public life.
We have already narrowed the income gap between the highest and the lowest earners from seven to six times. Moving forward, we need to approach the EU average of five times.
One of the most significant changes in the past five years was the agreement to increase pensions faster than average wage growth. The rate of adjustment for average pensions has reached nearly 50 percent. To ensure a dignified retirement for our people, we must continue moving forward.
Regrettably, I must say that this year, the ruling majority had to be defended multiple times against its own poorly considered actions. An illustrative example is the intention to freeze pension increases for those receiving the lowest pensions, which was only blocked by a veto.
We cannot ignore the Constitutional Court’s ruling on the right to withdraw savings from second-pillar pension funds. Personally, I will work to ensure that future decisions prioritize the interests of all Lithuanian people over those of fund managers.
In an aging society, long-term care has become increasingly relevant. The reform promised by this government, which was only slightly addressed and not implemented, will fall to the next ruling majority. This should not be seen as a burden but as an opportunity to support the people of Lithuania.
We also need to start preparing and, in my opinion, defining the rights of the elderly, along with the principles of policies dedicated to them, through separate legislation.
I am glad that at the beginning of my term, we managed to ensure more affordable prices for medication for the most vulnerable groups, including seniors. However, the problem of access to innovative medicines remains acute. The amendments to the Law on Pharmacy, which I initiated, will make treatments for rare diseases more accessible. Progress has finally been made in reimbursing medicines for cystic fibrosis patients, which was hindered for a long time by unjustifiable political inaction.
Ladies and Gentlemen,
Let us always follow a simple rule: every person is valuable to Lithuania. We need every citizen.
Therefore, we must continue the work started by adapting physical infrastructure and information space for people with disabilities, improving the services offered and expanding financial assistance.
The current demographic situation requires prompt action. Low birth rates are accelerating the aging of our society. While more Lithuanian emigrants are returning, their numbers are insufficient to reverse this long-term trend.
Therefore, Lithuania can and must strive to become the most family-friendly country. Learning from recent crises, we know that offering help is more beneficial than withholding it. If we truly aim to increase the number of young Lithuanian citizens, we must significantly increase our support for families raising children.
We have already started to reduce inequality by increasing the non-taxable income threshold. It must be brought closer to the minimum wage level.
To achieve effective family policies, we must go even further. Families raising children should receive additional financial incentives based on the number of dependents. Simply increasing child benefits is not enough. It is in the state’s interest that parents and foster families receive the necessary services and opportunities to earn more.
Equally important is addressing other pressing issues affecting families. One is the growing problem of housing accessibility. We can only solve these structural challenges by developing a strategic housing policy agenda that meets both metropolitan and regional needs.
The state of education is also a growing concern.
On the one hand, concrete steps have recently been taken to reduce educational exclusion. During my first term, we achieved an equal start in schooling. The social dimension principle is being integrated into higher education as well. Inclusive education will gain momentum this autumn, leaving less and less time for those who have been slow to prepare. Non-formal education will also have to be reformed.
On the other hand, we saw that changes in education must be very carefully planned. Both the updates to general education programs and the introduction of new interim school graduation exams have caused tremendous chaos and confusion. Many students and their parents felt hostage to the situation.
What is most disturbing is that it seemed appropriate for the ruling majority to leave the ship of education without a helmsman amidst the storm.
The current state of education is unsatisfactory in many aspects. There is a lack of responsible people in charge – not only formally, but also actually. Magic rhetoric about the prestige of the teaching profession no longer affects the disillusionment of teachers, which has been simmering and bubbling for a long time. Government manipulation of salary figures and statistical averages to cover the very slow increase in teachers’ pay only adds to the tension. Too little attention is paid to sports policy, particularly to children’s physical activity and culture of movement.
It is not only the future of our children that suffers. It is not only families that suffer. It is all of Lithuania that suffers.
We must act before it is too late. We must protect our children and ensure their education and a healthy life. Protect them from the threatening scourge of drug addiction. Strengthen their emotional health. Double efforts, and if necessary, triple them to stop the specter of suicide.
We are well aware that the role of education will continue to grow as the global economy and societies adapt to rapid technological changes. In Lithuania, we will increasingly need innovative, value-added solutions based on scientific progress. Major challenges such as climate change and biodiversity loss must also be incorporated into educational and study programs.
In the medium term, information technology, green technology and other high technologies will play a key role in transforming our economy.
Today, there is a clear need to strengthen energy independence and promote sustainable economic growth. By rapidly developing green energy, we can propel a new, innovative industry forward.
A large community of start-ups is making Lithuania visible to the world. Emerging factories for chip manufacturing chains, IT hubs, the construction of Europe’s largest biotech city, and new investments in the defense industry point the way for us.
The state’s task is to support our businesses along this path. We must use all levers of economic and science diplomacy, along with the advantages of EU membership, to foster even more success stories of innovation in Lithuania. Establishing an ombudsman institution would further improve the environment for small businesses.
The national development agency will provide a significant boost to economic growth. Since the beginning of my tenure, I have emphasized that Lithuanian businesses aiming to invest in higher productivity and progress need better access to capital. I am pleased to see that this is becoming a reality.
Increased investment is also necessary for the country’s circulatory system – road and rail infrastructure. The current level of funding for national and local road projects has led us to a dead end. The only way forward is to take a bold leap upward.
The other challenge we face is intangible – the globalization of our lives, which we can only resist if we have a strong foundation of national identity.
Knowing who we are guides us where we need to go. The humanities and rich forms of everyday cultural expression can provide this guidance.
Our culture must not only be preserved and developed but also empowered through concrete political measures. Measures that will allow it to flourish throughout Lithuania, including even the smallest towns and local communities.
This is closely linked to efforts to bring back our people who have left to live abroad. Although the issue of multiple citizenship remains unresolved after the last referendum, we must continue to promote Lithuanian heritage education among the Lithuanian diaspora. Strengthening Lithuanian studies in our country and beyond must also become a national priority.
Every person with ties to Lithuania, wherever they live, holds value for us. They should feel welcome in Lithuania. We must pay more attention to addressing the challenges faced by our people returning to their homeland.
Ladies and Gentlemen,
It would be a mistake to assume that all these issues must be addressed at the national level. One of Lithuania’s long-standing problems is regional disparity. By continuing to concentrate everything in the capital or a few larger cities, we would only further diminish the overall potential of our entire country.
Today, our regions need more investment, more jobs and public services. Establishing a factory further away from major cities that can provide employment opportunities for local residents or attract workers from other areas, is a welcome step forward. However, its impact will be limited if incoming specialists find that potholed roads, deteriorating public transport, distant or poor-quality health care, education, and cultural services diminish the quality of life.
Local municipalities are in the best position to assess the real situation. Therefore, they must be given more freedom to make independent decisions.
We can start with the restructuring of the school network. In this area, top-down formal quantitative criteria dictated by the ministry do not reflect the region’s actual needs or modern options for quality education.
Municipalities not only have the opportunity but also the obligation to assess the overall state of education in the region, and thus to make more precise and fair decisions. Attempts at the national level to regulate not only the size of individual schools but also class sizes lead in the opposite direction – towards disrespect and mistrust. Do we really need this? How does this align with discussions about increasing municipal responsibilities and duties, especially in education?
Indeed, we have many examples where municipalities can and want to contribute to the common good. Despite numerous recent crises, municipalities have repeatedly demonstrated their ability to act as responsible partners to the central government. Today, they need more competences, functions, and adequate financing to benefit our people further.
What truly does not satisfy the people of Lithuania is the implementation of the European Union’s regional development program. With a lot of effort, we have finally managed to move forward from the starting point, but the pace remains too slow, some of the defined indicators have not been achieved, and the allocated funds fall short of the legally set requirements. This raises a very serious question: is regional policy being properly managed in our country?
If we truly want to create wealthier and more prosperous regions that can contribute to nation-building, the current austerity policy must be replaced with an investment policy. We need to increase investments in infrastructure and public services. We must ensure that all municipalities can attract the specialists they need. This is not about wasteful spending, but about investing in our future.
During the last Forum of the Regions, I urged municipalities to engage more actively and effectively in healthcare reform by establishing health centers and reorganizing service delivery. I urged mayors to coordinate their efforts more closely with the Ministry of Health and each other.
Today, all municipalities have made progress and are waiting for investments to modernize health services. We need to speed up the pace so that people can experience positive changes in their everyday lives sooner. Preventive health promotion particularly requires the attention of health strategists.
From the perspective of local self-government, the amendment to the constitutional law on implementing the fiscal treaty sets a positive tone. After extensive discussions with municipalities and the executive branch, it has granted municipalities more freedom to invest and create well-being.
I believe the amended constitutional law will help reduce regional disparities in the long term. This must be the basic direction of Lithuania’s domestic policy.
Ladies and Gentlemen,
The more attention and effort we dedicate to implementing the principle of One Lithuania, the more we will contribute to the country’s national security.
A nation’s defense readiness depends largely on its societal values. Citizenship, patriotism and solidarity are the pillars that support concrete military, intelligence and political capabilities. These values stem from a strong, enduring identity and a sense of justice deeply embedded in society.
Meanwhile, division, confrontation and alienation will always be the antithesis of any effort to secure Lithuania’s freedom and independence.
Therefore, creating a socially empathetic state aimed at reducing exclusion, directly contributes to ensuring national security. The degree of unity and solidarity within the country gives us the strength to defend our national interests beyond Lithuania’s borders.
We see this clearly in matters of utmost importance in foreign policy. The absolute majority of people in Lithuania do not doubt the need to support Ukraine and seek Russia’s defeat. We remain staunch supporters of European Union membership. We uphold strong Euro-Atlantic ties – the cornerstone of European and Lithuanian security.
Common attitudes and values undoubtedly help us to act in the international arena. In the last twelve months, Vilnius has successfully hosted both NATO and the Three Seas Initiative summits. Next year, we will host the NATO Bucharest Nine Forum, and we are already beginning to prepare for Lithuania’s presidency of the Council of the European Union in 2027.
Addressing defense and security challenges will likely require our utmost efforts in the near future.
We have achieved a lot in response to the changing geopolitical situation. NATO’s forward presence battle group has been deployed to Lithuania, with ongoing rotations of U.S. forces and the NATO Air Policing Mission. We also welcomed the first troops of a German brigade to be stationed in Lithuania. New regional defense plans and a rotational air defense model were approved at the Vilnius NATO Summit.
Most importantly, after prolonged foot-dragging, we are finally investing in our own security. Today, we already spend more than 2.7% of GDP on defense.
On the other hand, the number of soldiers in professional military service has increased by only 6% over the past four years. Military recruitment is slow and falls short of targets. We must focus even more on training the active reserve, increasing the attractiveness of professional military service and improving social guarantees for soldiers and officers.
To expand, restructure, modernize, and equip the Lithuanian Armed Forces with more sophisticated weapons, as outlined by the State Defense Council, we will need to increase national defense funding to over 3% of GDP. It is encouraging to hear that the Lithuanian business community has rallied around the Four Percent for Defense initiative. Such initiatives motivate politicians.
Ladies and Gentlemen,
Our ambitious goals inevitably hinge on tax issues. Both increased defense financing and other essentials require funds that can either be borrowed or, far more sustainably, raised additionally in the national budget.
It is encouraging that redistribution through the budget has increased from 30% to 33% of GDP over five years. This is a significant historical achievement. At the same time, public debt has remained below 40%. Successful counter-cyclical policies have not only sustained continued economic growth but have also protected the tax base.
Recently, the contours of defense funding have finally emerged. The first step was the bank solidarity levy. Another effective solution agreed upon is to finance defense through an increase in the corporate tax rate coupled with higher excise taxes on tobacco and alcohol.
Most importantly, the ruling party has listened to common sense and abandoned plans to raise value-added tax. The decision not to increase the burden on self-employed individuals with business licenses and not to dip into municipal pockets was also wise. However, the parliamentary approval of excise taxes on fuel revealed a clear divide, indicating that the issue was not thoroughly debated, and the final decision was incomplete.
Today, we still lack genuine efforts to make income taxation more progressive. High income tax rates cannot continue to be conditional on the type of activity. This opens the door to gross tax injustice and harms the state budget.
Notably, the National Audit Office has recently emphasized the necessity of creating a fairer and simpler tax system that responds to growing financing needs.
Therefore, it is regrettable that this Government has buried the tax reform, which could have ensured greater fairness in the system and generated additional budget revenues.
We now hear that this task is being deferred to the next parliamentary term, in an attempt to evade responsibility after four wasted years.
Indeed, tax reform could emerge as one of the most critical issues in the upcoming parliamentary elections.
It is important to remember that on this issue, we are all on the same team – for one, indivisible Lithuania.
Whether it comes to taxes, education or national security, we must sincerely seek common denominators. We need understanding, listening and ongoing dialogue, with minimal grandstanding or backtracking.
Living next to a dangerous neighbor leaves us no room for retreat. All political forces in Lithuania must strive for the broadest possible consensus, and voters must judge based on principles. It is easy to see who is dividing society, who is making a lot of noise while undermining the foundations of key state institutions, and who is earnestly working to find the best solutions.
We have many important tasks ahead of us. To withstand any challenges, we must continue to strengthen our state. Pursue justice in all areas. Ensure constant and sustainable growth of well-being for all the people of Lithuania as an antidote to the forces that seek to split and divide us.
Enough with divisions. Enough with empty intrigues and quarrels. Let’s replace distrust with trust and cooperation. Let’s move forward with new ideas and solutions.
Inspired by the Centenary of the Song Festival, let us sing Lithuania as a joy risen from ashes. As Justinas Marcinkevičius sang it.
Let us rise high as one, united and strong Lithuania!
Ladies and Gentlemen, I had intended to conclude at this point. Unfortunately, recent events have prevented me from doing so. How is it possible that we have lowered the standard for links with business interests to such an extent that when the fact of flying together with a person with a criminal past comes to light, all we can say is the long-forgotten phrase “The minister is innocent – the environment is guilty”? Even worse, how is it possible that a company with a questionable reputation and connections has managed to dominate the market for settlements with the public sector for quite some time? These are questions that need answers. It is important that the upcoming elections do not distort these answers.
Thank you all for your attention.
