The second session of the Seimas: mitigation of the impact of the pandemic, budgetary update, and the Green Deal

Press release, 1 July 2021

 

The 13th Seimas has closed its second regular (spring) session. From 10 March to 30 June 2021, the Parliament held 52 sittings and adopted 318 legal acts, including 230 laws. Compared to the second session of the previous parliamentary term, the number of legal acts adopted in this session was smaller by a quarter.

 

In the circumstances of the lockdown and the emergency, the session focussed on both urgent matters of containing the pandemic, mitigating its impact, providing support for business and the population and addressing the challenges in other areas.

  

In her overview of the work of the session, Viktorija Čmilytė-Nielsen, Speaker of the Seimas, observed that Lithuania had managed to contain the coronavirus pandemic. ‘I understand that people exhausted by the pandemic and the lockdown restrictions would like to have swifter and greater relaxation. However, one cannot expect a rapid recovery after such a serious illness. Nevertheless, objective criteria show that we are on the right track,’ said the Speaker of the Seimas at the closing of the spring session.

 

Finances and economy: an updated state budget for this year

 

Taking into consideration the updated economic development scenario in Lithuania and the need to mitigate the impact of the pandemic, the Seimas updated the state budget, the budget of the State Social Insurance Fund and the budget of the Compulsory Health Insurance Fund.

 

In the revised state budget for 2021, the major part of the additional funding is earmarked for managing the negative impact of the coronavirus pandemic, as well as for national defence and state border protection, public needs and investments, and other important commitments.

 

During its spring session, the Seimas decided on a new schedule for increasing excise duties on all types of smoking products and alcohol; facilitated the transfer of all or a part of corporate employees to Lithuania when transferring corporate activities or a part thereof from third countries; increased the minimum salaries for the lowest-ranking officers of the internal service system, and improved legal regulation of bank merger transactions.

 

The adopted amendments to the Law on Tax Administration will enable digital administration of the data on payments for goods and services and waiver of paper registers of cash operations.

 

Fighting the COVID-19 pandemic: support for business and the population

 

To fight the spread of the pandemic, the Seimas approved compulsory testing of a certain segment of employees for the COVID-19 infection as early as at the beginning of the session. The respective law also regulates management of communicable diseases in workplaces.

 

The amendments to the Law on Employment provide for further subsidising, until autumn, of salaries for employees on furlough in companies affected by COVID-19 and payment of subsidies to employers for their employees returning to work following a furlough. It was also agreed to establish a more targeted support for the self-employed as the pandemic continues and access to a job search benefit for those who have unregistered their business activities. It was decided that benefits for the self-employed and job search benefits would be paid until 31 August this year.

 

New amendments to the Law on Sickness and Maternity Social Insurance will enable more favourable calculation of maternity, paternity, and childcare benefits for parents whose insured income has decreased due to the pandemic-related furlough. In accordance with the new provisions, the above mentioned benefits will be calculated on the basis of the period preceding the first lockdown.

 

From 1 July 2021, sickness benefits amounting to 100% of salaries (after tax) will be paid to employees who contract COVID-19 working in the areas of health, public safety, maintenance of public order, or education, where contact with sick people is inevitable or necessary, regardless of whether the source of infection is clients/patients or co-workers.

 

According to the new legal acts that have taken effect, the payment of unemployment benefit is renewed twice for unemployed people who register with the Employment Service within six months after the termination of the unemployment insurance benefit due to employment or self-employment.

 

From 1 July 2021 until 31 December 2022, the reduced VAT rate of 9 % for services in the catering, sport, and culture sectors is temporarily introduced. 

 

Greater protection and friendlier services for the population

 

During the session, the Seimas adopted amendments to the Labour Code, restricting payment of salaries and daily allowances in cash as of 2022. The aim is to strengthen employee’s right to fair remuneration for work, make the system of payment of daily allowances more transparent, and avoid possible failure to pay or non-compliance with the requirements for payment of daily allowances.

 

The Parliament decided to provide patients, from 2022 onwards, with the option of not only the cheapest medicinal product, but also another medicinal product included in the Price List of Reimbursable Medicinal Products, which will be subject to cost-reimbursement.

 

Adopted amendments to the Identity Card and Passport Law are intended to improve the processes of issuing personal documents and make the services of issuing personal documents more applicant-friendly. One important innovation is the decision to set a longer period of validity of the identity card issued to older persons. As of 2 August 2021, citizens aged 70 years and above will be issued the identity card valid for 30 years.

With a view to protecting customers, the Seimas imposed an obligation on sellers to provide information about the reduction of prices on goods. Any notice of the reduction of the price of an item must include information on the old price.

 

The Seimas authorised remote performance of notarial acts. According to the amendments to the Law on the Notary Office, all notarial acts may be performed remotely (e.g. attestation of wills or acceptance of personal wills for safekeeping), except for those that are difficult to perform due to their nature.

 

Other important decisions of the Seimas include providing all the insured persons with free access to medical rehabilitation services; restricting the use of mandatory mediation in civil disputes where parties to the dispute are subjects of domestic violence; and banning any form of encouragement of gambling and any means of dissemination of information or actions of persuasion.

 

Social security and greater assistance to people with disabilities

 

The spring session also focused on social issues. With a view to reducing poverty in Lithuania, the Seimas introduced a single person’s benefit and single people may apply for it to the State Social Insurance Fund Board (SODRA) as of 1 July 2021. This year, the benefit will amount to EUR 28.63 and it will increase to EUR 32 in 2022.

 

The Seimas formalised the services of a personal assistant for people with disabilities. In accordance with the adopted amendments to the Law on Social Integration of the Disabled, the need for personal assistance will be determined individually for every person with disabilities, following a comprehensive evaluation of the state of health or functional disorders of the body and the capability to carry out chores or actions necessary to live and to act independently in all spheres of life.

 

Changes in determining the level of special needs, which are relevant to senior citizens, will come into force as of 1 July 2021. Only medium and high levels of special needs will be determined; therefore, from the beginning of July more senior citizens will be eligible to a 50% discount on public transport fares.

 

Having improved the procedure for calculating work incapacity and old-age pensions, the Seimas has enhanced the situation of the disabled who had received work incapacity pensions by the end of 2017. At the same time, the Parliament also introduced a more favourable procedure for paying unemployment social insurance benefits to people with disabilities who become unemployed. Recipients of social insurance pensions, work incapacity compensations for accidents at work, or social assistance benefits will be entitled to the full unemployment benefit instead of the part of this benefit exceeding the amount of pensions and benefits received, as is currently the case.

 

Greater liability for animal cruelty

 

In the spring session, the Seimas focused on animal welfare, too. With the adopted amendments, since 1 May 2021, the Parliament introduced mandatory microchipping and registration of cats, dogs and ferrets in the Register of Pet Animals and banned trading in pet animals in outdoor and market places. The list of actions considered as cruel treatment and torture of animals was extended and new obligations for veterinarians to report to the services was introduced in the respective law.

The Seimas also tightened liability for animal cruelty and neglect. The minimum limit of penalties for relevant offences was increased three-fold and mandatory confiscation of animals was introduced.

 

Climate change and environment protection on the agenda of the Seimas

 

The Lithuanian green deal was among the priorities of the work programme of the spring session; therefore, the Seimas addressed climate change and environment.

 

At the end of the session, the Seimas approved the National Agenda for Climate Change Management. It sets out short-term, medium-term, and long-term objectives and tasks for mitigation of and adapting to climate change for individual sectors currently using fossil fuels, which pollute the atmosphere with greenhouse gasses and have the greatest impact on climate change.

 

A new law on alternative fuels is intended to enable a substantial increase of up to 15 % in the share of renewables in the transport sector by 2030, thus reducing the negative impact of air pollution on climate. This objective will be pursued by gradually increasing the diversity of energy sources in the transport sector, imposing obligations on fuel suppliers with regard to the supply of fuels from renewables, increasing the use of advanced biofuels, promoting the use of electricity in transport, developing the infrastructure of alternative fuels, and boosting the number of clean vehicles.

 

The Seimas adopted important amendments to the Law on Waste Management and the Law on Packaging and Packaging Waste Management, which will facilitate the transition to a circular economy by ensuring that waste becomes a resource and is fully reduced in volume.

 

The spring session agreed to advance the entry into force of stricter environmental pollution requirements for economic activities and tightened the procedure for future insurance against civil liability by waste management or storage companies.

 

A new Law on Green Areas will establish a clearer legal regulation of the protection, maintenance and management of green areas and greenery, expand the possibilities for the public to participate in the decision-making process regarding the creation of green areas and to be informed about the planned maintenance and management operations of green areas and greenery.

 

By the adopted amendments to the Law on State Support for the Renovation (Modernisation) of Multi-Apartment Residential Buildings, the Housing Energy Saving Agency is abolished and its functions are delegated to the Environmental Projects Management Agency.  Thus, the reduction of administrative regulation is expected to speed up renovation.

 

Other relevant decisions adopted by the Seimas

 

At its spring session, the Seimas approved the development of the system for electricity storage equipment, which will help to ensure uninterrupted operation of the electricity system until the completion of the synchronisation project, and agreed that unreliable producers and suppliers would not be able to participate in the electronic communications market in Lithuania, especially in developing 5G connection.

 

In accordance with the new amendments to the Law on the Provision of Information to the Public, journalists are allowed, as of 1 July 2021, free access to data from registers or state information systems/data processors. The updated Law on the Right to Obtain Information from State and Municipal Institutions and Agencies will oblige state institutions to open free access to all the data they have at their disposal, make the public sector more open to innovations, and create more opportunities for businesses, researchers and the public to contribute to the economic growth and jobs.

 

The Seimas decided to introduce, as of 1 November 2021, stricter requirements for not only tobacco products, but also related products and equipment intended for the consumption of these products. Moreover, the Seimas permitted the establishment of political parties by non-Lithuanian nationals; enabled increasing school pupils’ competence in the area of civic education; introduced a zero drink-drive limit for ride-hailing drivers; adopted a new law on fibre hemp; introduced regulation for keeping of vehicles that are no longer usable and also vehicles that are not roadworthy in areas of common use; and extended the right, under additional terms, for drivers with category B driving licence to drive light motorcycles as of 1 August 2021.

 

The Seimas adopted a number of significant resolutions on topical international issues, for instance, in response to the threat posed by the Belarussian regime, provocative actions by Russia, the Uyghur situation in China and the Cuban regime. The Parliament ratified the EU-Japan Strategic Partnership Agreement and the agreement on Lithuania’s associated membership of the European Space Agency, among others.

 

During the session, the Seimas appointed and dismissed state officials and judges. It completed the formation of the Constitutional Court by appointing Vytautas Mizaras as a judge and Danutė Jočienė as President. The Seimas also decided on the appointment of new heads of the Office of the Equal Opportunities Ombudsperson, the Genocide and Resistance Research Centre of Lithuania, and the Office of the Seimas. A new composition of the Central Electoral Commission was set up. 

 

The Seimas, together with the Polish Parliament, commemorated the anniversary of the Constitution of 3 May 1791, approved 13 initiatives to declare 2022 as a commemorative year intended to pay tribute to renowned personalities, mark the anniversaries of outstanding historical events and cultural phenomena, and draw attention to important spheres of life in Lithuania. By a new law on the legal status of the defender of freedom, the legal status of the defender of freedom and the main criteria for determining the status were established.

 

In commemoration of the 80th anniversary of the great losses and resistance to the occupation by two totalitarian regimes, the Seimas called for freeing Lithuania’s public spaces from the symbols celebrating the totalitarian regimes that brought about the occupation and proposed to continue historical investigations into totalitarian crimes against humanity and war crimes.

 

The Seimas will convene for the third regular (autumn) session on 10 September 2021.

 

Rimas Rudaitis, Chief Specialist, Press Office, Information and Communication Department, tel. +370 5 239 6132, e-mail: [email protected]