The European Commission welcomes the reform measures under ‘Next Generation Lithuania’ but calls for accelerated implementation of the plan

Press release, 9 July 2024 

On 9 July, Céline Gauer, Director-General of the Recovery and Resilience Task Force of the European Commission, along with her delegation, visited the Seimas. Her meeting with the chairs and members of the Seimas Committee on European Affairs and branch committees focused on exchanging views on the achievements of Lithuania’s recovery and resilience plan ‘Next Generation Lithuania’ (NGL) and discussing the implementation of the tax reform.

‘In the current electoral policy cycle, representatives of all political parties in the Seimas must understand the importance of implementing the recommendations of the European Commission. Equally important is ensuring that we do not lose funds from the RRF and that we implement crucial reforms by making the necessary decisions,’ Mindaugas Lingė, Chair of the Committee on Budget and Finance of the Seimas, said.

The NGL includes targeted and effective investments, contingent upon the implementation of critical structural reforms at the national level. Today, Lithuania is in an intensive phase of implementation, with more than two-thirds of the reform measures implemented in energy, energy efficiency of buildings, digitalisation, and education. Consequently, investment is rapidly gaining momentum.

Most reforms were approved by the Seimas through the adoption of laws that address both long-term issues and new geopolitical priorities, focusing on strengthening energy independence and enhancing the efficiency of use of renewable energy sources. In response to the challenges of the geopolitical reality and in its strive for economic resilience, Lithuania updated the plan in 2023. The new plan placed significantly greater emphasis on developing renewable energy sources and transitioning to high value-added business by introducing environmentally friendly, low-waste, advanced, and digital technologies. These areas were key recipients of additional investment under the plan. Alongside reforms, significant measures were introduced to the plan to enhance the investment environment for renewable energy developers, promote the defence and security industry, advance green finance, improve the public procurement system, and ensure quality social services. 

The New Generation Lithuania (NGL) was developed under an important EU funding instrument designed to respond to the economic challenges caused by the pandemic. The funding allocated to Lithuania consists of EUR 3.8 billion of investment, with EUR 2.30 billion in subsidies and EUR 1.55 billion in loans, and represents 5.4 % of Lithuania’s annual gross domestic product. The objectives under the plan have to be achieved by the end of August 2026.

Aistė Pikiotienė, Adviser, Office of the Seimas Committee on European Affairs

tel. +370 5 209 6864