Government approves Lithuania's entering into the eurozone pact

VILNIUS - On Jan. 26, the Government has approved Lithuania's entering into the eurozone pact on more rigid fiscal discipline and stronger coordination of economic policy, Prime Minister Andrius Kubilius said.

"In my opinion, it is a very important instrument and the European Union's (EU) initiative to enhance fiscal discipline and reduce deficit and debt level. It also aims at better coordination of economic policy for the EU to become stronger after the crisis and more resistant to present days' problems," the PM said, reports LETA/ELTA.

Kubilius outlined that the provisions of the European fiscal discipline pact should be transposed into the Constitution as well. "We must undoubtedly consolidate the provisions of the treaty in our Constitutional law, in particular, those on greater fiscal discipline," Kubilius said. On Jan.30, heads of the EU member-states will meet in Brussels to sign a new fiscal pact to reinforce budget discipline in order to restore market confidence in the eurozone.

The new EU Treaty provides a requirement to the member-states of a budget deficit ceiling of 3 percent of GDP and a public debt ceiling of 60 percent of GDP. The structural deficit should not exceed 0.5 percent of GDP.