Armonaitė interview with a German newspaper: It is important to keep up the pressure so that the situation in Belarus finally changes

WELT: Your country has taken an unusual step in the EU: it is not only providing political refuge for the population of neighboring Belarus who are persecuted for their political beliefs, but also a kind of commercial haven for companies wishing to leave Belarus. Why did this happened?

Aušrinė Armonaitė: As a neighboring country, we are very affected by what is happening in Belarus. Not that this is basically something new: 10 years ago, as a student, I protested against the Alexander Lukashenko regime, along with many of my fellow students. Unlike then, there is now a new generation in Belarus that is very actively rebelling against the Lukashenko dictatorship. It inspires us a lot and we want to help. So we have recently adopted amendments to the law that will make it easier for companies from third countries outside the EU to set up here. The invitation is addressed not only to Belarusian companies, but especially to them at the moment.

WELT: How does this look in practice?

Armonaitė: The amendments stipulate that companies wishing to come here can relocate their employees and family members here without additional procedures. The demand is high. So far, 43 Belarusian companies have taken this step and a further 100 have expressed interest. So far, the IT and gaming industry has made the most inquiries. We have already become a new home for the largest start-up center in Belarus, which unites 250 young companies.

WELT: The brain drain is likely to further weaken the Belarusian economy. Are you really looking for such destabilization?

Armonaitė: We treat our proposal as a certain form of granting asylum. But asylum is not a long-term solution. If the situation in Belarus improved, most of these companies would return to their homeland. It is also important to us and we want a democratic and economically prosperous neighbor. However, we are currently very concerned about what is happening just 50 km from the EU’s external border.

WELT: In response to a plane hijacked by Belarus in May following the arrest of journalist and activist Roman Protasevich and his friend Sofia Sapega, the EU recently tightened sanctions on the country. It’s enough?

Harmony: an effective means of sanction. Of course, Lithuania will also feel the consequences, we are a small and open economy and we have many trade relations with Belarus. However, it is important to keep up the pressure for the situation to finally change.

WELT: Lithuania also appreciates the plans to become the largest biotech site in the EU. How could that be successful?

Armonaitė: We can now present the first achievements. There are already about 600 biotech companies in Lithuania. The sector currently contributes two percent to the economy; this is six times the EU average. By 2030, we want to increase this share to five percent. This should be successful because, on the one hand, we are investing more and more in education and training to further increase the number of STEM (MINT) professionals. On the other hand, we are actively working with the support of the EU to expand our digital and transport infrastructure. Several large companies, such as Thermo Fisher, have already established themselves with us. Components for the Pfizer and Biontech vaccines, among others, are currently produced here. Our goal is for even more concerns to follow suit.

WELT: Also a significant reduction in business taxes?

Armonaitė: Because about 82 percent. Lithuania’s GDP is dependent on exports, so to be competitive, we must be smarter and faster than everyone else. Here we are helped by the reduction of bureaucracy and a rapid digitization process. One example is the Fintech sector, where we rank fourth in the world after licenses in the US, UK and Singapore. They are arguments that make us want to score points, but not cumbersome tax competition.

WELT: Your country has been severely affected by the Covid pandemic for some time, until Lithuania lived in quarantine at the end of June. How are things going now?

Armonaitė: A few weeks ago, we presented a digital vaccination passport that shows who has been vaccinated, whose immunity is resistant after a recurrence of the infection, and who has been tested. This passport helps us to return to a normal life. In addition, the digital passport is an incentive for citizens to get vaccinated, since it avoids constant tests. And it’s pretty clear: I’m a traditional liberal, so I’ll be happy if we can drop this show again and get our freedom back. Compared to quarantine and a host of infections, a program as a temporary solution is the lesser of two evils.

WELT: In recent months, the EU has been heavily criticized for its vaccination strategy. Do you agree with this criticism?

Armonaitė: I live in a very small country, we only have a population of three million. And I must be clear: without a common EU vaccination strategy, we would not have been able to get enough vaccines so quickly. I just need to look at our neighbors Ukraine and Moldova, who, as before, are still struggling to get fully vaccinated. Visually, perhaps some recipes from the EU could have been prepared better. However, overall, the EU Commission has done a good job during this pandemic. However, this does not mean that nothing can be improved.

WELT: What are your specific calls?

Armonaitė: We must urgently resume our pharmaceutical production in the EU. Not only for vaccines, but also for drugs and medical devices. We must not depend on China and other countries to better prepare for the next pandemic. Lithuania is ready to play a bigger role in the European Union as a place of production in the future.