Analytics, EU – Baltic States, Financial Services, Lithuania

Dalia Grybauskaite.

On Wednesday, the European Commission announced an economy rescue plan, in which reduction of some taxes, business encouragement, additional investments and revision of the EU budget for 2007-2013 are suggested, reports ELTA.

"The measures that are suitable for other countries, for example the reduction of taxes, do not suit Lithuania. All fiscal measures – reduction of taxes or investments – may be used only in those countries that follow the requirements of the Stability Pact and are prepared for difficulties. Lithuania does not have such freedom of maneuvers, taking into consideration the inflation exceeding 10% and a financial hole of over 5 billion litas (1.45 billion litas) foreseen for 2009," Grybauskaite told the business news portal vz.lt via telephone. She favorably commented on the plans of the new coalition to stabilize the state finances, however, according to her the new Government will have to take second thoughts on the revival of the economy.

On Wednesday, the European Commission announced an EU economy rescue plan worth 200 billion euros and suggested allocating up to 5 billion euros on the electricity grids. Major part of these finances may go to the Baltic region. "This is directly highly beneficial to Lithuania," the commissioner claimed. According to her, indirectly the entire plan will be highly beneficial for Lithuania, because it is intended to held Europe at least to arrest the collapse of economy which is beginning in some countries.