The new Lithuanian president's economic change direction will be clear in the fall when the 2020 budget bill will be drafted and adopted, and now the biggest question remains over the continuity of the reforms started by the incumbent government, says Zygimantas Mauricas, chief economist at Luminor.
Žygimantas Mauricas
© DELFI / Karolina Pansevič

On Sunday, MP Ingrida Simonyte, Lithuania's, former finance minister, and economist Gitanas Nauseda got into the presidential runoff which will be held on May 26.

According to Mauricas, it's now difficult so speak specifically about Simonyte or Nauseda's possible economic policy but both of them are in favor of a welfare state, greater redistribution, greater focus to the public sector and reducing the level of poverty and social exclusion.

"These are priority areas voiced by both candidates, and the question is how they will pursue that. (…) We don’t have clear programs yet, only their certain guidelines. Besides, the Seimas has more power when dealing with economic issues. And the biggest question marks are related to the continuity of the reforms started by the incumbent government, with some of them being in the final stage already and some of them only starting," Mauricas told BNS Lithuania on Monday.

He believes the resolution of these issues also depends on possible changes in the government and the ruling majority in the Seimas.

"I think we'll have a rather calm summer in terms of the adoption of economic decisions, but not very calm in the political sense. And the upcoming fall will be already not that calm from the economic point of view, and the Seimas' fall session and the drafting and deliberation of the 2020 budget bill will create a basis for the new president, and possibly new government's, further direction," the Luminor economist said.

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