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In publishing its annual recommendations, the Commission assessed the expected tax deferrals in Lithuania, additional funds for the purchase of medical supplies, subsidies to keep jobs and social benefits for self-employed and workers affected by the COVID-19 crisis.
“Under the 2020 stability program, those budgetary measures accounted for 6.8%. GDP (…). As the Commission’s analysis of the structure and implementation of some measures shows relatively low potential utilization, the Commission assumed that the impact of government measures on public finances would be less, “the document said.
In mid-March, the Lithuanian government was one of the first in the European Union to introduce 5 billion. package to support the economy and strengthen health, but was later criticized for delaying aid.
The European Commission predicts that the Lithuanian economy will shrink by 7.4 percent this year.
The recommendations urge Lithuania to “take all necessary measures” to manage the pandemic, support the economy and promote its recovery, and, as the economic situation improves, follow a responsible budgetary policy and ensure a sustainable level of public debt.
According to the Commission, the pandemic has highlighted the structural weaknesses of the Lithuanian health system and may exacerbate the problems of high social inequality and poverty.
Arnoldas Pranckevičius, the representative of the European Commission in Lithuania, affirms that the priority of this year’s economic policy should be “the assistance to the liquidity of companies, the preservation of jobs and the return of people who have lost their jobs to the labor market. “
“Well thought-out and targeted investments can help both economic recovery and long-term problems. Increasing environmental sustainability, digitizing the Lithuanian economy and investing in innovations are the priorities proposed by the European Commission to Lithuania , he said in a comment sent to BNS.
“It just caught our eye then. To ensure Lithuania’s resistance to similar crises in the future, we must increase the efficiency, accessibility and quality of the health care system,” added the Head of the European Commission Representation. in Lithuania.
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