"As to structural reforms, preparatory work is currently being finalized. The government will this month make final decisions and will then present them to the ruling political groups in the Seimas and will then put them up for a broad public discussion," he said on Žinių Radijas on Thursday morning.

According to the prime minister, these changes will be aimed at further improving the financial situation of the lowest income earners, while at the same time paying attention to the middle class.

"We must promote further economic growth. Therefore, tax changes will be focused on encouraging and developing businesses, rather than on increasing the tax burden," Skvernelis said.

"One of the problems is the labor and payroll tax burden. Our aim is to reduce it and consolidate the employer and employee taxes," he said.

The prime minister said that the government did not plant to discard "a certain level of progressiveness".

"As to pensions, decisions need to be taken, because (...) we see the number of employed people decreasing and our society aging. The birth situation is not encouraging either," he said.

Skvernelis added that the government had no plans to nationalize second-pillar pension funds.