According to the head of the Government, the past year was full of pressures, not least because of the international policy-related challenges, as power-based politics gained even more momentum in the East of Europe. "Russia's aggressive actions in Ukraine have endangered economic and social stability sand reinvigorated concerns over the security of national borders and territory that have long been forgotten in the civilised world," Mr Butkevičius said. In his view, national decisions to increase the spending on national defence were of particular importance in this regard.
"In 2014, the Government worked in a permanent standby mode, simultaneously making strategic decisions on both long-term growth and rapid response to the emerging risks. The external environment was worsened by the escalation of the geopolitical situation that disrupted the euro area recovery and restricted faster economic growth in Lithuania," the Prime Minister said. He also emphasised Russia's bans on exports of foods of Lithuanian origin, restrictions on the truck transport and the unpredictable actions in political and business relations. However, the Prime Minister was glad that economic flexibility and appropriate economic policies have helped to prevent any significant fall in the growth rate. "Last year, Lithuania was among the leaders in the European Union again in terms of economic growth. (...) For the first time in history, the International Monetary Fund listed Lithuania as a developed economy, in other words, we have entered the supreme league," Mr Butkevičius said. He added that almost at the same time one of the most influential international bodies, the Organisation for Economic Cooperation and Development (OECD), decided to invite Lithuania to negotiate for membership.
The Prime Minister also pointed out that the Baseline Profitability Index 2014 published by the Foreign Policy magazine demonstrated that Lithuania was the most favourable country for investment in the Baltic region ant stood second in Europe in terms of forecast return on investment. In the same vein, the World Economic Forum report published last year placed Lithuania on the 41st place out of 144 most competitive countries worldwide. As for foreign direct investment and technology transfer rate, Lithuania ranks seventh, which is commendable. According to Invest Lithuania data, our country attracted 44 foreign direct investment projects last year, thus becoming a clear leader among the Baltic States. The total value of fixed asset investment stands at over 0.5 billion euro, boding well for the creation of almost 3,200 new jobs," the Head of the Government said.
According to the Prime Minister, last year was a major breakthrough in reducing youth unemployment. "Last year, 40.8 thousand young unemployed people got jobs. Targeted policy streamlined to increasing employment allowed Lithuania to move closer to the European Union's unemployment average," the Prime Minister said. He specifically talked about the vocational training reform launched in cooperation with the business community and the modular vocational training programme underway, enabling flexible response to business needs; he also highlighted the importance of the state-funded places in higher education.
"Determined decisions of the Government produced tangible financial results in the fight against shadow economy," the Prime Minister said. According to him, last year diesel fuel sales rose by almost one-fifth and the budget revenue was higher due to more budget revenue coming from efficient collection of excise duty. Even so, we need to be faster, more discerning and more inventive when it comes to the fight against shadow economy.
In his speech, the Prime Minister highlighted the decision to transform the entire system of business supervision in order to shed more light on the functions of the stakeholders and reduce the high number of inspectors. Among the important tasks ahead, the Prime Minister listed the reform of the childcare system, export diversification, reform of the heat and power systems, renovation of the residential stock, energy projects, meaningful celebration of the 100th anniversary of Lithuania, as well as creation and implementation of a new social model.
After the presentation of the Government Performance Report by Prime Minister Butkevičius to the Seimas, the Report will be further discussed in the Seimas Committees. At the plenary sitting on 2 June 2015, a special parliamentary debate will be held, which may end with the adoption of the Seimas resolution, as enshrined in the Statute of the Seimas.
