Lithuania's 2017 draft budget plan may fall short of the provisions of the Stability and Growth Pact, however, this could be avoided by way of an exception, if the social model is listed as a structural reform, the European Commission has said.
The European Commission Building
© Shutterstock nuotr.

On Tuesday, EC gave its opinion on Lithuania's improved 2017 budget, saying that the country may this year may strongly stray off the medium-term objective (deficit of 1 pct of GDP), however, Lithuania has requested additional flexibility under the Stability and Growht Pact (up to 0.5 pct of GDP) to be able to implement the planned major structural reforms of the labor market and the pension system.

According to the EC statement, Lithuania has enough room for fiscal maneuvers to be able to take advantage of the temporary deviation in 2017.

"Lithuania's budget deficit and debt are well below the required targets of 3 percent and 60 percent of GDP respectively. Its draft budgetary plan is currently seen as at risk of non-compliance with the rules of the Stability and Growth Pact, but this would no longer be the case if the flexibility requested by Lithuania is granted this spring," Valdis Dombrovskis, EC Vice-President for the Euro and Social Dialogue, said in a press release.

The commission will assess the compliance of the social model, as a social and labor market structural reform to the reservations of the Stability and Growth Pact this spring during the evaluation of Lithuania's 2017 stability program.

Įvertink šį straipnį
Norėdami tobulėti, suteikiame jums galimybę įvertinti skaitomą DELFI turinį.
  • 1
  • 2
  • 3
  • 4
  • 5
(0 žmonių įvertino)
Leave a comment
or for anonymous commenting click here
By posting, you agree to terms
Read comments Read comments

Lithuania ready to lead Rail Baltica project: transport minister

Lithuania is ready to assume leadership of the Rail Baltica project to ensure its timely and...

The countries will have to prepare properly to the termination of time changing

With regard to public opinion polls and recommendations by doctors, as well as referring to the needs...

Finance Minister calls for EU-wide anti-money laundering system

Lithuania's Finance Minister Vilius Šapoka called on the eurozone and the European Union to...

L. Linkevičius: disinformation is a serious challenge to Western unity

On Monday, Minister of Foreign Affairs Linas Linkevičius participated in an EU Foreign Affairs...

D. Grybauskaitė: the EU will owe us

Lithuanian farmers will not receive the sort of direct grants from the EU as were promised already...