When listing the priorities of the new government, Paksas was careful not to omit any areas of real concern to Lithuanians.
He said that education, creating an information society, the economy, social and health system reforms, NATO and the European Union integration and pragmatic relations with neighboring countries were the right priorities of a 21st century Lithuanian government.
Education topped off the list because, as Paksas explained, "the greatest resource of the country should be intelligent people." Thousands of talented young Lithuanians have been fleeing the country in recent years in search of employment abroad, a trend Paksas hopes to stop by promising 1.5 percent of GDP to universities and science. He also promised to make every Lithuanian student computer literate.
Lithuania is clawing its way out of a deep recession. Paksas pledged to keep the budget deficit at "no more than 2 percent or 3 percent." The government also plans to merge the budget of the beleaguered social welfare institution SODRA into the state budget.
Minister of Economy Eugenijus Maldeikis and Finance Minister Jonas Lionginas were approved by President Valdas Adamkus on Oct. 30 together with most of the rest of the Cabinet.
They worked with Paksas in the same roles in a short-lived but widely respected Conservative government last year before all three joined the Liberal Union. They are expected to liberalize the economy further.
Some taxes will be slashed, and new taxes will be introduced. Income tax will fall from 30 percent to 24 percent.
The profit tax will be abolished and the value added tax on construction and heating will be reduced. Following Paksas' speech, former Conservative Prime Minister Andrius Kubilius demanded more specific figures. Paksas failed to elaborate.
The key to liberating the economy, Paksas said, is cutting back the role of the state.
"For the first time in 10 years of independence we need to fight for and tear away from the state the freedom to work and make money," he said.
Conservative Party leader Vytautas Landsbergis objected to this broad statement and reminded Paksas that Lithuania was the star of this year's Heritage Foundation Index of Economic Freedom, leaping from 61st to 42nd position. The foundation praised the ambitious private sector development program of the previous government.
Paksas responded that "the adoration of one publication" should not be used to mislead the businessmen of Lithuania.
A transformation in the nation's military from conscript to professional is part of a possible restructuring of defense being considered by the new government. Paksas doubts the efficiency of the current use of the increasing amounts of cash being reserved annually for defense.
A law passed in 1996 commits Lithuania to spending 1.95 percent of GDP on defense in 2000 and 2 percent in 2001, figures recommended by NATO. But the new government has "no other choice" but to stick to these figures, he said.
The popularity of Paksas' coalition partner, Social Liberal leader and parliamentary chairman, Arturas Paulauskas was built at least partly on his opinion that vital cash was being diverted from education and health to fund this commitment. That his criticism of a defense sector spending spree seems to have conveniently been forgotten suggests that Paulauskas is leaving the economic management of the new government to the Liberal Union.
According to opinion polls, Paksas is in a strong position. He has the support of the people, yet expectations of his tenure of office are realistic rather than euphoric. A Baltic Surveys poll dated Nov. 3 puts him ahead of Adamkus as the most popular politician in Lithuania, with an approval rating of 72 per cent.
Another poll, by the Studio of Market and Sociological Research, says that only 4.2 per cent of Lithuanians expect the government to survive its four-year term in its present form.
Out with the old...
Algirdas Brazauskas, who emerged from retirement to lead the left-wing Social Democratic coalition's fight in October's parliamentary elections, has retired again. Independence leader Vytautas Landsbergis has been under pressure to resign as chairman of the right-wing Conservative Party. The victory in Lithuania of youthful centrists, albeit a narrow one, is part of a wider trend across much of Central Europe of replacing old timers with smart, Western-minded 30- and 40-somethings. The average age of the new cabinet is 43. Seven cabinet members are from the Liberal Union, and six from the New Union (Social Liberals). There is only one female Cabinet member, and there are only 15 female MPs. (See more on Page 8).
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