VILNIUS - President Valdas Adamkus signed on Nov. 16 the Law on Fiscal Discipline, which was passed by Parliament to steer Lithuania through the current period of economic instability and facilitate accession to the eurozone as soon as possible.
In Adamkus' opinion, the legislation is vital since it sets the fiscal rules that should ensure the country's long-term stability and consistent economic development, the president's press service said.
"Implementation of the law is very important. I hope that provisions of the Law on Fiscal Discipline will be taken into consideration during the discussion of the 2008 budget at the parliament and ungrounded increase of the spending will be prevented," said Adamkus.
The law was also designed to prevent political parties from making populist promises during the 2008 national election campaign.
Nevertheless, the president said the legislation was not perfect.
"Adoption of the law was delayed, so the provisions contained within are somewhat belated and lack ambition, particularly in light of the negative trends with Lithuania's economic indicators," the president noted.
Annual inflation in Lithuania has soared to nearly 8 percent on higher food and administratively regulated prices.
The law, which obligates the state sector to manage its finances in a way to ensure surplus or balance of budget, was adopted by lawmakers on Nov. 8.
The legislation is expected to help better observe one of the Maastricht criteria 's a limited budget deficit. The criterion requires that countries keep the deficit of the administration sector under 3 percent of the gross domestic product.