Lithuania needs financial discipline - PM

  • 2007-10-04
  • From wire reports
VILNIUS -- In spite of the upcoming parliamentary elections and the intensifying pre-election atmosphere, Lithuania needs urgent financial discipline to control inflation, Prime Minister Gediminas Kirkilas said, Oct. 4.

"It is vital to have the whole view. We can increase payments everywhere, plan a lot of privileges but if inflation is high, all the money will be eaten twice. That is why we must follow strict financial discipline which is useful for everybody, for all Lithuania," Kirkilas told Ziniu Radijas news radio.

In his words, the Law of Fiscal Discipline must be passed and come into force without delay.

"The sooner we adopt this legislation, the faster we send a signal to financial markets and our partners that Lithuania is keeping its obligations. Lithuania does not operate separately, we are in a global market, in the European Union and closely related with Latvia and Estonia," said the Lithuanian prime minister.

In Kirkilas' words, the present situation is tense.

"Populism can unbalance the financial markets of Lithuania and neighboring countries," he warned, in a clear reference to opposition threats to dilute his fiscal discipline legislation. "We can make the right decisions to preserve economic development and the growth of people's income," he added.

According to the government, the law on fiscal discipline is necessary to maintain lasting sustainability of finance in the governmental sector and stable economic development.