Lithuanian president: more flexible borrowing will create economic welfare in regions

VILNIUS – The Seimas of Lithuania on Friday paved the way for more flexible borrowing by local authorities for EU-supported projects, starting from January 2023, which, according to President Gitanas Nauseda, would help create economic welfare in the country’s regions.

“Two years ago, the European Union’s leaders, after long discussions, agreed on a financial support and recovery fund of a historic size for Lithuania and the entire Community. This support shall reach all Lithuania’s people, irrespective of where they live, either in a city, a borough or a small village,” the president said in a press release.

“I think this [the legislative amendment] is the most important legislative change of the past year in the economic policy area because it is critically important to ensure high-quality public services and possibilities for all country’s people,” Nauseda noted.

According to the press release, the amendment to the Constitutional Law on the Implementation of the Fiscal Treaty opens up an investment potential of more than 700 million euros in municipalities.

The Seimas on Friday green-lighted more flexible borrowing by local authorities for projects financed by the European Union and other international institutions, starting from 2023. The measure was adopted in a vote of 108 to 0 with two abstentions.

Finance Minister Gintare Skaiste has said that local authorities will have to contribute approximately 377 million euros to the projects co-funded by the EU in 2021-2027 and will be able to borrow this amount.