Lithuanian Prime Minister-designate Saulius Skvernelis expects that the so-called new social model, a package of legislation on labour market and social insurance reforms, will be improved and passed by next July to give six months to businesses and private individuals to prepare for the planned changes.
Saulius Skvernelis
© DELFI / Domantas Pipas

"All the necessary legislation should be passed by July 1 (2017) so that we have six months for preparations, especially when it comes to taxation changes, before (the package) comes into force on January 1 (2018)," Skvernelis told opposition lawmakers on Tuesday.

The Seimas is already discussing a proposal to delay the implementation of certain laws of the social model package, a move that would allow saving an estimated 80 million euros in budget funds next year.

Skvernelis has told the parliament that the incoming government's dialogue with its social partners leads him to expect that the improved social model will be "completely different"

Lithuania has asked the European Commission to allow it to use the structural reform clause in the EU's Stability and Growth Pact due to the new social model, whose costs are currently estimated at 243 million euros, accounting for 0.6 percent of next year's projected GDP.

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