First of all, the EC has recommended to "avoid deviating from the medium-term objective in 2015 and ensure that the deviation in 2016 is limited to the allowance linked to the systemic pension reform. Broaden the tax base and improve tax compliance."
The EC also noted that with the demographic situation worsening, Lithuania's education system should be better adapted to the needs of the labour market and that Lithuania should "reduce the high tax wedge for low income earners by shifting the tax burden to other sources less detrimental to growth".
It was recommended to "adopt a comprehensive reform of the pension system that also addresses the challenge of pension adequacy. Improve the coverage and adequacy of unemployment benefits and cash social assistance and improve the employability of those looking for work."
For the first time this year, Lithuania was recommended to improve the performance of its healthcare system. European Commissioner Vytenis Povilas Andriukaitis has stressed that managing healthcare systems is a challenge, but attention towards health must increase as the European public is ageing rapidly.
"This means that financial burden on healthcare systems will only increase. If we wish people to be healthy for a longer time, we must properly invest money allocated for healthcare and devote particular attention towards enhancing healthcare. This is of paramount importance to Lithuania as it is a very rapidly ageing country in the European Union," said MEP Andriukaitis.
EU ministers will discuss country-specific recommendations in June, whereas heads of states and governments will approve them by the end of June.
