Danske Bank's chief economist for the Baltic countries believes that Lithuania's incoming government should give priority to reforming the country's education system in order to improve the situation in the labour market and help ensure sustainable economic growth, but he warns that possible differences in opinions between the ministry and the Seimas may prevent major changes from occurring.
Rokas Grajauskas
© Bendrovės archyvas

"The risk of the education reform not being carried out is very great. I think that the proposed minister (Jurgita Petrauskienė) is one of those who understand the problems very well, but if she does not have a political backing, it will be impossible for her to do so alone," Rokas Grajauskas said in a news conference on Tuesday.

"Based on what we heard during the election campaign, the measures proposed by the Peasants and Greens appear to differ significantly from the recipes proposed by the minister," he added.

A survey conducted for the bank has revealed that the key factors holding back business development include labor taxation, bureaucracy, labour shortages, uncertainty in the international environment, and slow economic growth.

"Investment in development would be encouraged by zero taxation of reinvested earnings, reduction of the tax burden on labor, a better quality of education, a more active fight against the shadow economy, and higher Immigration from neighbouring countries," Danske Bank's economist said.

Some 402 Lithuanian company executives were interviewed by the communications agency OMN in October for the survey commissioned by Danske Bank.

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