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Initially $ 5 billion. The euro plan, which raised expectations that money would help companies resist quarantine, has actually turned out to be an action that does little or nothing to help companies. comes to the company or the measures announced by the government are accepted due to several difficult to understand conditions, which determine that the company is not in a hurry to use those measures, “A. Kubilius told Eltai.
“I had the opportunity to see the instruments of support from other EU countries, so with such additional conditions, it was clear that I would end up with the money not going into business.” Unfortunately, this has happened, “added the MEP.
According to him, the aid measures proposed by the authorities had their own problems.
“Due to downtime, which many EU countries have addressed in the first place, in many countries it has been possible for that money to reach the employer or the employees themselves within a few days.” In Lithuania, the condition for the payment of downtime was that the company had to commit to keeping at least 50% for at least three months after the end of the quarantine. workers For a large part of the business, the assumption of conditions and obligations in circumstances as difficult as now, when it is not known how long the pandemic will last or what the crisis will be like, turned out to be very unacceptable, ”said A. Kubilius.
According to the MEP, the government’s decision to limit downtime payments to the minimum wage has led some workers to unemployment.
“The promises of several soft loans were also not kept, as they were entrusted to one institution: Invega. It was simply not administratively prepared for such a large flow of applications. These are clear problems that could have been immediately forecast to cause major problems, and now they are announcing (Government – ELTA) new programs, a new trillion euros for a million people before the elections, distributing ill-considered money to pensioners, the unemployed, this business will not be able to recover any more because it will not receive adequate support and public debt will grow very quickly and strongly, “said the former prime minister.
According to him, administrative problems should be resolved as soon as possible, but, according to A. Kubilius, the government is reluctant to listen to comments from the opposition or companies.
What will the public debt increase be like and what will it be like if the economic crisis is not short-lived but lasts at least a couple of years? This is the big problem here
Andrius Kubilius
“It is a big problem at the political level of the government, it is not very willing to listen to the comments of the opposition or the companies. There is not an institution with the proper leadership that is in charge of the implementation of the monitoring measures. business, experts and making quick corrections, this is not the case in Lithuania, ”said A. Kubilius.
The MEP lacked a systematic approach to what public finances will look like after the crisis.
“What the state deficit will look like by reducing state income and taxes and at the same time increasing all kinds of benefits by billions, nobody wants to talk about it.” The big problem here will be what the increase in public debt will be like, and what it will be like if the economic crisis is not short-lived, but lasts at least a couple of years.
If the crisis lasts longer and we continue to live in a relaxed way, so that we can borrow as much as we want, spend as much as we want and further reduce taxes, then we will end next year with public debt, which will have grown to 60 percent. or more (of GDP – ELTA) “, – said A. Kubilius, adding that then the state may face long-term problems that will be difficult to solve.
Pensions have increased due to legal indexation this year, they are practically not affected during this crisis, so why add more money to them? It is logically difficult to understand here.
Andrius Kubilius
Speaking about the one-time payment of 200 euros proposed by the Government to pensioners and other social groups, A. Kubilius stated that he saw no economic logic in it.
“There is very little economic logic in these benefits, there is little point in looking for them here. Pensions have increased due to legal indexation this year, they (retirees – ELTA) have been practically unaffected during this crisis, so why Add more money to them? It is difficult to understand logically here.
Similarly, when we talk about the unemployed, the government has taken care of business to preserve or create new jobs, by failing to do so, it has caused significantly more unemployment than could have been avoided, and is now showing great concern about the unemployed will start paying them more. benefits, calling them “job search benefits.” The search will be completely ineffective if the business does not continue to receive the support it needs to take care of job preservation, ”the former prime minister told Eltai.
“I understand the logic of these purely political benefits: it is an attempt to contribute a billion euros to the electoral campaign,” added Kubilius.
According to the MEP, the government should focus on measures for companies that have been unable to sell their products due to quarantine restrictions and are now struggling to recover.
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