Press release, 29 April 2015
Ladies and Gentlemen,
Fellow parliamentarians,
It is commendable that the Seimas has resumed discussions on the subject of finance.
Over the 25 years of independence, Lithuania has undergone many political and economic reforms. They have significantly changed the countrys profile and paved the way for the creation of a strong and competitive economy.
One of the important steps in this direction was Lithuanias recent accession to the euro zone in January 2015. The changeover to euro can be considered to have been smooth and successful.
I am pleased that Lithuania received favourable assessment from international bodies. The recent mission of the International Monetary Fund representatives concluded with a positive assessment of the Lithuanian economic outlook and the current fiscal and financial policy.
According to the experts, the introduction of the euro will have a positive impact on our states economy and will consolidate Lithuanias position in Europe. The recent IMF report also notes that the countrys financial sector has improved on account of effective supervision.
However, there are still many important tasks ahead in ensuring financial sustainability and stable economic development.
In the years to come, our public finance may suffer from various pressures due to the aging of the population. The signals concerning the deteriorating demographic situation need to be taken into consideration already today. The spending on pensions and healthcare will increase. In addition, Lithuania has committed itself to increasing its funding for national defence, which is highly important. With this in mind, I am convinced that the makeup of public government bodies needs a principled review. Only highly qualified professionals need to be employed in the public sector.
In future, consolidation of the budget is inevitable. Lithuania is in for an important task, namely, structural reform of the financial sector. This will help ensure strong and sustainable income convergence with Western Europe.
I believe that we will overcome all the challenges. The single European currency will help to create a stable macroeconomic environment, increase the pace of economic development, and attract more investment. Therefore, I would encourage us all to focus on the tasks and opportunities that lie ahead.
I am pleased to see that representatives of the relevant EU institutions and guests from the EU Member States whose changeover to euro preceded that of Lithuania have joined todays conference to share their best practices.
I wish you all a fruitful debate and valuable insights.
