Industrialists see grim picture

Jan 06, 2000

LETA - According to statistical data, the newly opened European Union
market has not yet replaced the Russian market lost in 1998. This
makes local industrialists paint the future in dark colors. An
absolute majority of Lithuanian industrial companies last year failed
to achieve the 1998 level, while results for first 11 months of 1999
showed a sinking energy sector.

The largest Lithuanian daily Lietuvos Rytas reported that the oil
refining industry plunged by 35.1 percent, while electricity, gas and
water supply saw a 19.8 percent drop in the previous year.

Less construction work led to a 23.5 percent plunge in rock, clay and
sand output. The sharpest plunge has been observed in office
equipment and computer sector with a total production decline of 43
percent. Crisis has also overwhelmed strategic agricultural sectors
of the country, the meat and milk industry.

The first 11 months of last year saw a 10.5 percent drop in
production of meat and first category of sub-products, year-on-year.
production of non-skimmed milk dived by 12 percent, while that of
butter and dry dairy products plunged by 26.5 and 22 percent
respectively. Of the overall foreign trade, the share accounting for
the EU is considerably large; however, it grew just by several
percent.

Meanwhile, exports to Russia nearly halved in the comparative
period. Lithuanian producers making their way into the EU market
face the opposition of Western industrialists.

"One thing is clear - we are not welcome in the European Union. The
Union has enough industrial enterprises and nobody needs us with our
industry and goods," said the president of the Lithuanian
industrialists confederation, Bronislovas Lubys.

The EU motto - free movement of goods and services - conceals
tariff-free regulation described as protection of consumers from
low-quality goods. However, in most cases it serves as a protection
of EU manufacturers.

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