Paksas returns

VILNIUS - Rolandas Paksas made an impressive comeback on Oct. 26. The newly elected Parliament approved a proposition from President Valdas Adamkus to appoint Paksas to the post of prime minister.

Seventy-nine MPs voted for and 51 against the former mayor of Vilnius. The vote was attended by 137 out of 141 lawmakers.

Paksas was supported by MPs of the New Policy bloc - the Liberal Union led by Paksas, the Social Liberals of Parliament Chairman Arturas Paulauskas, the Center Union, the Modern Christian Democratic Union as well as New Policy's allies - the Peasant Party, Polish-speakers' party named the Polish Electoral Action and several other MPs.

The Conservative parliamentary faction of nine MPs stated that it is neither supporting Paksas nor opposing him and allowed its members to make a personal decision during the vote on the future prime minister.

The New Democracy (formerly Women's Party) expressed an identical position. This tiny party of former Prime Minister Kazimiera Prunskiene went to the election with the Social Democratic Coalition but refused to join the faction of the Leftists after the election.

Only the Social Democratic Coalition stated that it was against Paksas' candidacy. "Paksas wasn't decisive enough protesting against the deal with Williams, which was financially harmful for Lithuania," Leftist MP Vytenis Andriukaitis stated as one of the main arguments of the Social Democratic Coalition.

Paksas served as prime minister from June until October 1999, when he refused to sign a deal with the U.S. company Williams International over the privatization of oil concern Mazeikiu Nafta. Paksas resigned from his post, left the Conservative Party and joined the Liberals.

Speaking in Parliament on Oct. 26, Paksas said that his new government of the Liberals and the Social Liberals would be "right-wing and liberal." He promised unpopular reforms.

"We'll not be able to pay pensions to working pensioners. Social support will be cut," Paksas said.

He said the priorities of his future government would be economic reforms, liberalization of the business climate, tax cuts (especially in construction business), restructuring and privatization of state monopolies, integration into the European Union and NATO and good relations with neighboring countries.

Lithuanian defense spending will be upped to 1.95 percent of GDP this year and will reach 2 percent in 2001, the level hoped for by NATO for aspirant countries.

Paksas rejected export-oriented businessmen's proposals to devaluate the national currency litas. He praised the currency board model (litas is pegged to the U.S. dollar at the exchange rate 4 to 1). Paksas said that in the near future litas could be pegged to the euro if it becomes more stable. "The new pegging could take place, informing society six months in advance," Paksas said.

Despite previous disagreements over some paragraphs of the privatization of Lithuania's oil sector, Paksas said that he is ready to work hand in hand with Williams to guarantee the benefit of Mazeikiu Nafta and Lithuania's economy.