Lithuanian government looks to create colossal state company

VILNIUS -- The Lithuanian government is working on a proposal for the creation of a comprehesive state holding company that would control all state assets.

"Visuomis Holding Company" would control assets worth some 18 billion litas, making up approximately 20% of the country's GDP, Lithuania’s Public TV channel announced.

Though the assets make up a substantial amount of the economy, state run companies offered just 0.05 percent in returns.

Prime Minister Andrius Kubilius told the Baltic News Service that if the assets were properly managed, Lithuania could get about 1.5 billion Litas in additional budget revenues as soon as next year.

According to the Baltic News Service, the 300 currently state-owned companies brought in only 44.8 million Litas to the state budget in 2009.

The proposal has drawn harsh criticism from some sectors, with prominent political commentator Kazimiera Prunskiene saying the proposal could simply be a way for the government to divert attention away from its own deficiencies.

"What is it - adopting a state asset management model from other countries which have different procedures and traditions, or another way to dupe the people by directing their attention away from the complex and fundamental problems of the country?" She said in an opinion article published with national news agency ELTA.