Watch this page for selected news from Lithuania relating to trade, investment, economic and political climate. Visit "Politics", "Government", "Economy", "Business" and "Travel" pages of this web-site for more detailed additional news and commentary.
|
March 18, 2007 Low turn-out for Local Government Council Elections |
A disappointing 41.3% of eligible voters went to the
polls to elect a total of 1550 to serve on the 60 local councils across
the country. 1,112,981 out of 2,694,909 registered voters cast their
ballots for the candidates submitted by 24 parties and 4 coalitions.
However, this low turnout is readily explainable by a fact that since last
local government elections, more than 300,000 Lithuanians have left to
live and work in other countries. It is estimated that over 200,000
Lithuanians are currently residing in Ireland alone. The Social Democrats, though loosing 30 seats appear to remain the dominant party in Lithuania. It captured 302 (19.5%) seats on local councils. The Fatherland Union (Lithuania's Conservatives with it's coalition parties) was strong second capturing 256 (16.5%) seats, a gain of 63 seats. Nationwide it actually outpolled the Social Democrats by more than 9,000 votes. Other parties winning more than 50 local council seats were: Liberal and Center Union (182); Liberal Democrats (161); Lithuania's Peasant Union (141); Labor (Work) Party (111); Social Liberals (New Union) (97); Lithuanian Christian Democrats (95); Lithuanian Polish Electoral Action (53) and Lithuanian Republic Liberal Movement (51). the remaining 81open seats were captured by 10 other parties and/or coalitions. ******************** |
|
February 18, 2007 Local Government election to be held on February 25 |
24 political parties fielded about 14,000 candidates
for local government posts up for election. The election commission
has ruled that according the current local government council election law
only candidates on prequalified (meeting specified membership size) party
slates may be placed on the ballots. The current local government law
states that candidate for local government councils may be put forward by
a political party or a political organization. The election
commission has interpreted that only candidates submitted by
political parties , or organizations may be placed on the ballots, thus
denying many independent individuals and activist groups participation in
the election process.
A definite need is perceived to change the law. Also, there is a movement to to challenge the commissions ruling in Administrative and Constitutional Court, but such challenges, though the current law is clearly violates the constitution, because of the closeness of the election are not expected to affect this election. The constitution guarantees Lithuanian citizens and other residents of the administrative unit the right to be elected. *********************** |
|
December 3, 2006 Political stability assured for yet another six months |
It appears that agreement of cooperation between the
ruling coalition parties and the conservatives (Homeland Union) will be
extended for yet another six month assuring continuance of present
minority government of Social Democrats, Peasants, Liberal Centrists
and Citizens parties. In return the post of a vice chairman of the
Parliament and the three committee chairmanships were given to the
conservatives. See "government"
web page for updated listing on who is who in current government and
the parliament.
******************** |
|
July 13, 2006 Minority Government Formed and Approved |
After the president's initial nominee to form the new
government, the serving finance
minister and, since Brazauskas resignation, the acting prime minister
social democrat Zigmantas Balcytis, failed to
obtain Parliamentary support, President V. Adamkus nominated another
social democrat Gediminas Kirkilas. He managed to form and
obtain parliament's approval of a government from center-right
parliamentary block of social democrat, peasant, liberal centrist and
"citizen" (recent breakaway group from Work Party led by current chairman
of the Parliament V. Muntanas) parties. This is a minority
government as these parties hold only 53 out of 141 seats in the
Parliament However, G. Kirkilas garnered 86 votes supporting
his candidacy for prime minister. Negotiations among the new coalition partners resulted in agreement to following split of ministerial positions: social democrats - 6; peasant party - 3; liberal centrists - 2: and the "citizens" - 2. See "Government" pages of this website for names of the Ministers and their party affiliation. ***************** |
|
May 31, 2006 Government Falls |
The government fell today as thePrime Minister A.
Brazauskas resigned and the Uspachikas' "Darbo" (Labor) party withdrew
from the ruling coalition government. More to follow as the situation develops further and more facts become known. ************************ |
|
May 28, 2006 Oil Refinery Sold to Polish Firm |
A year long struggle on who will gain control of
Mazeikiai refinery appears to be over. This week Polish company "
PKN Orlen" agreed to purchase 53.7% of "Mazeikiu Nafta" stock for almost
$1.5billion from the failing Russian firm "Jukos International UK".
"PKN Orlen" also agreed to purchase additional 30.66% of stock in "Mazeikiu
Nafta" which are currently held by the Lithuanian government.
A number of "ifs", "buts" and approvals remain, but they do not appear to
be of type to derail transfer of ownership. Of concern is the
ever present threat by Russia to block the supply of crude oil to the
refinery, even though "PNK Orlen" has agreements from "TNK-BP" and
several other firms to supply it. *********************** |
|
May 28, 2006 The government survives, but Now It is the Labor Party and its leader who are in trouble |
The ruling, now three party coalition, survived in
spite of several crisis's. Apparently, there are enough
members of the parliament from various small parties who are susceptible
to the benefits of supporting the coalition, or one of its remaining
partners.
However, the political circus continues. Soon upon his appointment to the post of Parliamentary Chairman, V. Muntanas, one of the initial organizers of the "Labor" party, started distancing himself from the that party's chairman, V. Uspachikas. Critical comments led to an open split with V.Muntanas and his resignation from "Labor" party, but not his parliamentary post. Seven other "Labor" members of parliament also resigned from the party, in protest of its leader's, V. Uspachikas, actions and behavior, but , curiously they did not withdraw from the the ruling coalition. The latest skit in this three -ring circus is discovery by the security services of financial records of large payments to members of parliament through the "Labor" party's coffers. These records were discovered at a company run by close associate of Uspachikas. Subsequent raid on party headquarters resulted in seizure of additional detailed records of payments and a raid of Uspachikas residence, who is presently visiting Russia, found very large sums of cash. Uspachikas' number two in the party hierarchy, Ms. L. Grauziniene immediately departed for Moscow to meet and discuss this evolving situation. ****************** |
|
April 13, 2006 Collapse of Currently Ruling Coalition |
This Tuesday, after sixteen month behind door political
bickering and backstabbing, the four-party ruling coalition appears to
have collapsed when, the opposition initiated no confidence vote, by 94 to
11 vote by the parliament removed its chairman Arturas Paulauskas, the
leader of the "New Union" party (Social Liberals), one of the coalition
partners. Immediately the "New Union" party leadership caucus
decided to pull out of the coalition and to resign from all
parliamentary and government positions. It appears that, although the vote was initiated and organized by the opposition conservatives, the margin required for removal of the chairman came from coalition "Labor" party members. It is an open secret that Victor Uspaskich the leader of the "Labor" party is striving to become the next Prime Minister. ********************** |
|
February 17, 2006 No News is Good News |
Political in other activity seem to slow down in the winter. As no major newsworthy events are happening, the news media are left to try to make some mundane happenings into major stories. A crash of an errant Russian military plane within Lithuanian territory was reported as a major international incident with suspicion of intrigue. Death of a Hindu sailor on a ship in port of Klaipeda was immediately reported as a potential case of the deadly case of avian flu. Currently the big story is that the nuclear power plant at Ignalina may be an Al Queda terrorist target. That story is fueled by discovery that a daughter of a security official at that plant has been a long time live-in girl friend of a recently convicted Al Queda financier in England. Otherwise the political, economic and social life over this winter period has continued on the same track. On one hand the country’s economy is still growing at one of the highest growth rates in Europe, but, on the other hand, the country continues to loose population due to outflow of young people to other countries in search for better paying jobs. The corruption in both public and private sectors does not yet show signs of ebbing. Actually, according to recent survey by “Transparency International”, more than a third of businessmen and half of the general population interviewed thought that level of corruption substantially increased over the last five years. The institutions that are thought to be most corrupt by both the business community and the public are: police, health institutions, courts and the parliament. Meanwhile, the private business sector and the general public appear to be willing participants in corrupt practices and, thus, perpetuate and encourage corruption. Majority of both the public and businessmen believe that bribes are helpful in “solving problems” Surprisingly the current four party coalition government is still surviving, although not necessarily effectively functioning, in spite of constant and rather crude derogatory comments by V. Uspaskichas, the leader of the “Darbo” party, directed at the prime minister, the president and other leaders of his own coalition partners. The major issue facing the government and the parliament now seems to be which ministry will be in charge of dolling out the millions of financial aid from the European Union. *********************** |
|
September 5, 2005 Major Personal Liability Insurer declares Bankruptcy |
"Ingo Baltic", an auto and liability insurance
company with 90 thousand policy holders in Lithuania has declared bankrupt
and gone into receivership. 61.79% of stock is owned by by two Russian
insurance firms. At this time there are still more than 2000
unresolved claims pending in the amount of over $2 million. There
are indications that the bankruptcy was planned by its leadership.
'Ingo Baltic" and "Baltijos Garantas" Lithuanian insurance firm holding
38.9% of "Ingo Baltic" stock were both led by the same person. "Baltijos
Garantas", which does not issue liability insurance for a past couple of
years ardently marketed "Ingo Baltic" policies receiving up to 60% in
commissions, way above the 10-15% norm. While "Ingo Baltic was losing
money "Baltijos Garantas" was prospering. In spite of financial
problems, "Ingo Baltic", during last year doubled its total number of
policies written, The Russian investors had on several occasions had
increased firm's capitalization, but upon discovering it's condition
refused to subsidize it further, thus forcing it into bankruptcy.
The Insurance Oversight Commission is under fire for not taking
appropriate timely action, though it was long ago aware of firm's
questionable financial status and business activities.
**************** |
|
September 4, 2005 The End of Vote Buying??? |
If the revisions to election law, prepared by the
Election Commission, are adopted by the parliament, the current campaign
practices, utilized by all parties, of organizing and financing free
concerts, lotteries, distribution of gifts and free bussing, normally with
a keg of beer on board, of voters to the polls, will be severely
restricted if not prohibited. These revisions have been submitted to
the special Parliamentary work group, led by A.Paulauskas, These
revisions are the result of a recent ruling by the Constitutional
Court that distribution of any kind of gifts is by campaigns is
intolerable and prohibited. It is still not clear what if any
steps the Parliament will take to reign in the political campaigns.
It has been reported that as recently as this September 1st, the first day
of school, the parliamentary members of the Work Party, visited, or set
their representatives, the schools to "greet" the incoming first-graders
and distribute gifts emblazoned with their party symbol.
***************** |
|
August 27, 2005 Seven Ships added to Lithuanian Merchant Fleet Registry |
Since the start o this year 7 merchant ships have been
added to Lithuanian Flag registry . Currently there are 174 sea
going vessels flying Lithuanian flag, of which 62 are transport
vessels (goods and/or passengers). Total tonnage of the Lithuanian
registry vessels is 464,750 tons, relatively unchanged as 34 ships have
been crossed off the registry since start of 2005. ********************* |
|
July 8, 2005 Minister for National Resources (Ukio) resigns his Post |
Viktoras Usapaskichas, facing conflict of interest
charges and investigations by the High Commission on Governmental
Ethics and Special Parliamentary Commission, resigned last week from his
ministerial post and the Parliament. However, as he is retaining his
position as Chairman of "Work (Darbo)" party, major coalition government
partner, he is expected to continue to be a major player in Lithuanian
government and politics. Kestutis Dauksys, also member of "Work"
party, has been appointed to replace him as Minister for National
Resources. ********************* |
|
July 8, 2005 Kraft Foods corners Lithuanian market |
The coffee, potato chip and confectionary products of
"Kraft Foods Lietuva", subsidiary of "Kraft Foods International",
were top sellers in 2004. The coffee sales accounted for 31%
of total in-country coffee sales; sales of potato chips for 42%; and for
54% of confectionary products sold in Lithuania in 2004. ******************** |
|
May 27, 2005 Opposition charges the Minister of National Resources with conflict of interest |
The leader of Work Party, current Minister of National
Resources, Viktoras Usapaskichas, is facing public and private
conflict of interest charges relating to promoting a deal between a firm,
in which he has financial interest, and Moscow city government during his
official visit there. In addition, it has been revealed that this
and related firm has improperly received 3.7 mil. Litas of EU's
SAPARD program funds. SAPARD project approvals are under
jurisdiction of the Ministry of National Resources. Three
parliamentary commissions have been formed to investigate the facts
pertaining to Uspaskichas' dealings with Moscow city officials and two
commissions to investigate the SAPARD funding to firms with
political ties. In 2004 Lithuanian firms received 279 million Litas
in SAPARD program assistance.
Meanwhile, Uspaskichas is denying all charges and claims, stating that this is an effort on the part of opposition to destabilize the government in which the Work Party is the major coalition partner. *********************** |
|
May 24, 2005 Cabinet Changes |
Earlier this month the country's Finance Minister
Algirdas Butkevicius resigned over disagreement on the tax reform project
proposals to place an added 4% tax based on business sales volume.
This proposal was formulated and approved in April by the parties
comprising the ruling coalition. Algirdas Butkevicius kept pointing
out that business tax on sales volume was against the EU rules and
the State would be forced by the courts to return the collected
funds back to the taxpayers, causing serious budgetary problems in the
future. He was replaced by Zigmantas Balcycius, who until his
appointment to Finance Ministers position served in the current government
as Transportation Minister. As yet, no candidate been proposed
to take over the Transportation Ministry. *********************** |
|
April 10, 2005 Population Continues to Decline |
Lithuania's population declined by yet another
20.4 thousand during the calendar year 2004. Emigration accounted
for most of the decline. During 2004 more than 15,000 residents left
the country.
*********************** |
|
March 30, 2005 Number of Cell Phone Subscribers Equals Country's Population |
Number of cell phone users increased by 58% during 2004
to a total of 3.05 million. This amounts to 89 cell phone service
subscribers per 100 residents. The largest cell phone service
provider is Scandinavian controlled "Omnitel" with 48% of market. It
is followed by Swedish controlled "Tele2" with 30% and Danish controlled
"Bite GSM" with 20%. ********************** |
|
February 18, 2005 Signs of Labor Shortages
|
The outflow of Lithuanian workers to Western European countries is crating serious labor shortages in major Lithuanian cities, to the point that some of EU advisors are advising that, in order to sustain the present economic growth, Lithuania should ease restrictions to allow entry of foreign workers from the Eastern countries . Labor shortage is especially felt in the port city of Klaipeda and the capital – Vilnius. The unemployment in Vilnius is estimated to be only 3%, well below full employment level. This has led to substantial increases in the wage levels. ********************** |
|
February 17, 2005 Signs of Discord within the Coalition Government |
There is a growing impression that Lithuania seems to have two Prime Ministers --- Brazauskas, current Prime Minister, and Usapaskichas, the current Minister for National Resources and the leader of the Work Party. Questions are being raised in the Parliament, by not only the members of opposition parties but also by some members of the coalition parties, if the government is following its announced program, or the one of the Work Party. Disagreements have surfaced on issues of natural gas price regulation, EU fund distribution and the future of the oil refinery now controlled and operated by the beleaguered Russian oil firm “Yukos”. The President has already commented that he wishes that the Government would talk with single voice and, in general, has supported Brazauskas positions. So far the disagreements have been smoothed over, as, at this time, there is no real desire on the part of any coalition or opposition parties, for the government to fall. It would result in weak minority government, or new parliamentary elections. In case of later, it appears that the Work Party would gain strength. The latest polls indicate that, if the election were held now, 60% of electorate would vote for the Work Party. ************************ |
|
February 17, 2005 Ex-KGB Reservists in High Places |
News media has been reporting that numbers of ex-KGB Reserve officers are occupying high government positions. Among them is the chief of State Security Service, the Minister of Foreign Affairs and the principal Aide to the Chairman of the Parliament. Although under the amnesty laws having been just entered into the rolls of KGB Reserve does not constitute active and conscious collaboration with the repressive Soviet regime and, thus, does not have to be revealed, nevertheless, a Parliamentary commission was formed to investigate how and why these officials were placed into the Reserve. Two are claiming that they were entered without their knowledge and consent, while the third is outright denying of ever being a member. The opposition is pushing to broaden the investigation and, in order to minimize potential for blackmail by foreign security operatives of the past members, to make public the list of all ex-members of KGB Reserve. It has been noted that since the time Lithuania gained member of NATO and EU, the activity of the Russian Intelligence Services has greatly intensified. It is estimated that over 100 active agents are currently operating in country targeting government institutions, armed forces, party infrastructures and EU/ NATO relations’ organizational structures. ************************** |
|
December 22, 2004 Mexican Company acquires a third share of Lithuanian Cement Producer. |
On December 14, Lithuanian newspaper “Lietuvos Rytas” reported that a Mexican firm “Cemex” has acquired 34% of outstanding shares in the sole Lithuanian cement producer “ Akmenes Cementas”. The other shares in the company are held by four Lithuanian individual investors. So far there are no indications what role “Cemex” is intending to take in the management of the company. ******************** |
|
December 22, 2004 Four Party Coalition Forms New Government |
After prolonged negotiations on power sharing arrangements and division of key parliamentary committee and government ministerial positions, agreement among four left of center parties was reached to form a ruling coalition. In the new power structure A. Brazauskas retained his position as Prime Minister and A. Paulauskas as Chairman of the Parliament (Seimas). Under this inter-party agreement Brazauskas’ Social Democrats control five (5) Ministerial positions; Paulauskas’ Social Liberals control two (2); the new Work (Labor) Party, led by V. Usapachas, five (5); and the Farmers & New Democracy Union, led by K. D. Prunckiene, one (1) position. President V. Adamkus approved and certified the new Government only after the Prime Minister replaced two of the fifteen initially nominated for Ministerial positions. In the new Parliament (Seimas) seven (7) committee chairmanships are held by the Work (Labor) party; four (2) by the Social Democrats; two (2) by Social Liberals; and two (2) by the Farmers & New Democracy Union. (For more information on this item see Government page on this web site.) *********************** |
|
November 19, 2004 Large population losses due to emigration |
Lithuania's population continues on a downward trend.
The Lithuania's Department of Statistics reports that, during the first
eight months of 2004, the country's population decreased by 11.8 thousand,
largely due to increased emigration. During this period 8,668
persons left for other countries, 1,769 more than during the same period
last year. The population losses are only partially offset by
immigrants, principally from Russia, Belarus and Ukraine. This trend is
expected to continue. Surveys, conducted earlier this year, indicate
that 70-90% of Lithuanian youth (15-24 years old) express desire to
emigrate. (For more on population
trend see Demographics page on this web site.) *********************** |
|
October 25, 2004 No Parliamentary party or coalition is strong enough to form a government |
The final results of the run-off election held
yesterday, announced at 2 AM this morning, show that no party or current
coalition is strong enough to form a stable government. Work party
became the largest parliamentary party by winning 39 seats, but is far
short of 71 seats needed for majority. The current ruling coalition
of Prime Minister A. Brazauskas and A. Paulauskas, the Chairman of current
Parliament, came in second with total of 31 seats won by their parties.
The Right and Center parties, Homeland Union and Liberal and Center
Union, made a good showing capturing 43 seats between them. For complete election results
see the Politics in Lithuania page of this
web site. *********************** |
|
October 11, 2004 Low voter turnout for Parliamentary (Seimas) elections |
Lithuanian electorate again showed its distrust of
politicians and parties by staying away from the polls. Only 45.93%
of 2,664,088 eligible voters cast their ballots in the October 10. 2004
Parliamentary elections. 7.6% cast their ballots by mail. As
expected, the Work Party won 22 out of total of 70 multidistrict seats,
with the current ruling coalition led by current Prime Minister A.
Brazauskas and the Chairman of c current Parliament A. Paulauskas
coming in second with 16 seats. Only 5 of 71 single district
member elections were decided in the first round. Runoffs for these
seats will be held in two weeks. For complete election results
see the Politics in Lithuania page of this
web site. ****************** |
|
September 28, 2004 The New Work (Darbo) Party in position to capture largest number of seats in the next Parliament |
The various polls taken over the past two weeks
consistently indicate that about 26% of voters are intending to vote for
the the Work Party slate of candidates. Work Party, with a populist
left leaning program, was formed less than a year ago by a Russian born
millionaire businessman and the member of present Parliament Victor
Uspaskich. According to these polls, the present ruling coalition
parties of the current Prime Minister A. Brazauskas and the Chairman of of
the current Parliament A Paulauskas (Social Democrats and Social Liberals)
are backed by only 17% of voters. Two parties, the coalition of the
deposed President Paksas and the Peasant & New Democracy Union, who appear
to be willing to partner with the Work Party in formation of next
government are expected to receive about 9 and 7%. The only other
parties in position to overcome the 5% barrier to win parliamentary seats
are: Conservative Party (7%) and Liberal and Center Union (6%).
About 12% of voters are still undecided. ******************** |
|
September 11, 2004 Over 1300 candidates vie for 141 parliamentary seats |
Lithuania's Election Commission (VRK) his week approved
the candidate lists submitted by 15 parties and 2 coalitions. These list
contain 1240 names. From this list 70 parliamentary seats will be
apportioned to the parties receiving receiving 5% or more of total votes
and to coalitions receiving 7% or more votes. For 71 seats elected
in single member districts by direct ballot, the Commission certified 607
candidates. For more on elections go to
Politics in Lithuania
*********************** |
|
September 1,2004 Parliamentary Elections set for October |
The parliamentary election is to be held on October 10,
2004. All141 seats are at stake. 71 of the seats are to be filled by
direct election in single member districts and 71 apportioned to parties
receiving more than 5 percent of total votes. Under the recently revised
election procedures candidate in the single member district election will
be considered elected if in the initial balloting, with 40% of eligible
electorate voting, receives more than 50% of the ballots cast. If
less than 40% registered voters within the district participate in the
election, the candidate who receives the most votes will be considered to
be elected if the number of votes received by the candidate is not
less than 20% of all registered voters in the district. In case
there are no winners, two weeks after the results are announced a run-off
election will be held between the two candidates receiving most votes.
In the run-off election the candidate receiving largest number of votes
wins, regardless of of voter participation. ********************** |
|
June 28, 2004 Adamkus wins the Presidential run-off Election |
Valdas Adamkus, who served as country's President for
five years from 1998 to 2003, yesterday narrowly defeated Kazimiera
Prunskiene in the run-off election. Adamkus received 51.51% of votes of
those voting, to 48.49% fore Prunskiene. Election results show that strong
support for Adamkus within Lithuania's major cities provided Adamkus the
winning margin. ****************** |
|
June 21, 2004 Presidential run-off election
|
Presidential run-off election will be held on June 27,
2004, between Valdas Adamkus and Kazimiera Prunskiene, the two top vote
getters in the first round. Latest polls indicate Adamkus leading
Prunskiene by ten points, however, a more than 15% of electorate is still
undecided. Adamkus is being supported by center-right parties, while
Prunskiene has the endorsement of the impeached ex-president Paksas. the
currently ruling left-of center parties have not as yet expressed support
of either candidate. ******************* |
|
May 30, 2004 The Court Bars the impeached ex- president from holding elective and other offices |
On May 28, the High Administrative Court of Lithuania,
basing it's decision on the Constitutional Court's findings that the
impeached ex President R. Paksas had seriously breached Country's
Constitution and had broken his oath of office, ruled that he can not
seek any office any office that requires an oath of office throughout his
lifetime. This bars him from ever running for the President,
Parliament, or being appointed to Judiciary and other high government
positions. ************************ |
|
May 23, 2004 Election Commission certifies five presidential candidates; 242 candidates run for 13 EU Parliament positions |
The election commission has certified five candidates
for the presidential election to be held on June 13, 2004.
They are Valdas Adamkus, Petras Austrevicius,
Vilija Blinkeviciute, Ceslovas Jursenas and Kazimiera Prunskiene.
The commission refused to certify the candidacy of the impeached and
removed from office ex-president R. Paksas, because of recent revision of
the election laws, which bar him from holding such office for five years.
This has been appealed to the Constitutional Court. A ruling
favorable to R. Paksas could delay the election. On the same day election are scheduled for the thirteen Lithuanian seats at the European Union's Parliament. Twelve political parties and one coalition are participating in this election. Number of candidates nominated by them total 242 ********************** |
|
April 11, 2004 The impeached ex-President wows to return to office. |
The recently impeached and removed from office
ex-President, R. Paksas, wows to run in the upcoming presidential election
to regain the office. Currently there is no law that
would prevent him from seeking to regain the Presidency. The polls
indicate that up to 28% of voting population would still support him in
spite of the charges and impeachment. This may be adequate for him
to get into the runoff round if the all major parties run their candidates
for the Office of the President. Other possible candidates for
the post of President of Lithuania currently mentioned in the Lithuanian
news media are: the past presidents, V. Adamkus and A. Brazauskas; the
current interim President, A. Paulauskas; the current interim
Chairman of the Parliament, C Jursenas; and the Minister of Finance D.
Grybauskaite.
************************ |
|
April 8, 2004 Parliament votes to remove President from office. |
After almost two weeks of examination by the
Constitutional Court of Lithuania of the charges made against the
country's President for his actions by which he seriously breached
country's constitution and his oath of office, it took the parliament only
two days to conclude the impeachment process. On April 2nd, the
Constitutional Court issued a ruling that the President, in three of
the seven cases examined, indeed, seriously breached the constitution.
Then, on April 6th, the Parliament, after a day and a half's debate and
after listening out half an hour long speech by the accused
President, voted him out of office. Eighty-six (86)
parliamentarians, only one more than the three-fifths required, by secret
ballot voted to remove the President from office based on the first two
charges and 89 voted for removal on the third charge. The
President's supporters in the Parliament boycotted the vote and 17 members
cast invalid ballots. The Parliament then immediately voted to appoint its chairman, A. Paulauskas, as the interim President and C. Jursenas to take his place as the Chairman of the Parliament. The election to elect a new President is expected to be set for June 13th to coincide with the elections to elect delegates to the EU Parliament. The whole end process and transition was rather quiet and uneventful. The expected massive demonstrations in support of the embattled President did not materialize. Only six demonstrators showed up in front of the Parliament building on the first day of deliberations and about 600 were bussed in from other regions on the second and the final day. There was lot of shouting, but in general, it was not an unruly crowd. The ex-president, after meeting his staff at the presidential palace, was driven to a hospital suffering from elevated blood pressure. ************************** |
|
April 3, 2004 Lithuanians celebrate accession to NATO |
Yesterday Lithuanians celebrated its accession to NATO
with a military parade and a concert attended by thousands at the
Cathedral square in Vilnius. The celebration concluded with an
impressive fireworks display which illuminated the Gediminas castle atop
the adjacent hill. Meanwhile, Russia indirectly expressed its displeasure by expelling three Lithuanian diplomats, supposedly as a response for expulsion of three Russian officials earlier this Year. ************************ |
|
March 31, 2004 NATO establishes its presence in Lithuania |
On March 29, four F-16 fighter planes piloted by
Belgian pilots landed at the old Soviet long range bomber base near
Siauliai. Their mission is to provide security over the air-space of
the three Baltic States: Lithuania, Latvia and Estonia. They were
accompanied by a contingent of Belgian, Danish and British support
personnel who will be permanently stationed there. *********************** |
|
March 7, 2004 Lithuania is set to become full-fledged Member of NATO |
On February 5,2004, France finally ratified the
protocols of accession clearing the way for Lithuania to become a member
of NATO. France was the last of the 19 current NATO members to do
so. Thus, on April 2, 2004, Lithuania, together with Latvia,
Estonia, Bulgaria, Rumania, Slovakia and Slovenia, will officially
become official members of the alliance. *********************** |
|
March 1, 2004 Lithuania expels three Russian Diplomats |
Recently Lithuania quietly expelled three Russian
spies. Two of them were attached to the Russian Embassy and one
worked for the Russian Trade Mission. They were accused of
inappropriately working to influence the privatization of strategically
important Lithuanian industries and attempting to obtain secret
information pertaining to charges being made against the President Paksas
and others. So far it does not appear that Moscow has, or is
contemplating, to take any retaliatory actions.
************************ |
|
February 23, 2004 Prices and taxes are expected to rise on entry to EU |
According to leading annalists the cost of food,
heating, imported drugs, cigarettes, alcohol, gasoline and products
imported from non -EU countries is expected to increase upon entry into EU.
Some of these increases will be due to EU tariff and other requirements,
and some from changed market and labor environment.
************************ |
|
February 20, 2004 Parliament votes to begin the impeachment process. |
The Lithuanian Parliament (Seimas), day after receipt
of the final report of the Special Commission, voted 62 to 11, with 3
abstentions, to proceed with the impeachment trial of Country's President
R. Paksas and to request the Constitutional Court for their opinion
regarding the alleged actions of the President. The Commission
unanimously found that all six charges made against the President for
actions taken in violation of Country' Constitution and the Presidential
oath of office were valid and serious to justify his impeachment.
The Commission appointed five of its members as prosecutors to represent
the Commission during the impeachment trial.
************************** |
|
February 12, 2004 Country' population continues to shrink |
Lithuanian Department of Statistics reports that over
the first 11 months of of 2003 the country' population shrank by
abut15,000 (0.43%). 8,980 was due to deaths exceeding the
births and 5,902 due to emigration exceeding immigration. Last available census data shows that 65.9% of population lives in country's cities and towns. It also shows that 92.9% are native born. In neighboring Latvia native born population accounts for 82% of its population, and in Estonia 81%. ************************ |
|
January 9, 2004 Special Commission finds adequate grounds for one of the charges made against the President. |
The Parliament's Special Commission unanimously agreed
on validity of one of the six charges made against the president, that
being that in his actions taken while in office on behalf of private
interests were in conflict with the public interests. The Commission
has to submit its finding to the Parliament by February 13th. About
40 witnesses are expected to be called to testify before Commission. ************************** |
|
December 18, 2003 Parliament moves to start the process of removal of President Paksas from Office. |
86 Members of Lithuania's Parliament (Seimas) signed of
for a call to start the process to charge President R. Paksas with
malfeasance while in office. Although signatures of only 36 Members
are needed to initiate the process, the organizers of this initiative
wanted to demonstrate that there are enough votes in the Parliament to
remove the President from Office. 85 votes are needed to impeach and
remove the President for cause. The President is being accused of
compromising the security of the country by associating with Russian
criminal enterprise and security service agents, disclosure of
secret information to them, interfering in private enterprise activities,
and other improper or illegal actions taken while in office. The
actual impeachment vote could come as early as March of 2004. Meanwhile. Paksas, whose popularity has dropped to under 25%, is vowing not to resign and is crisscrossing the countryside trying to build grass-roots support. ********************* |
|
November 22, 2003 In spite of government's efforts the underground economy flourishes at high level. |
Lithuania's economy appears more robust than what the
official economic indicators show. A study by the Lithuania's
Department of Statistics with assistance Italian experts reveals that the
size country's underground economy in 2002-03 equaled almost 19% of
it's Gross Domestic Product. That was only a fraction of percent
less than what it was in 1995-96. It is estimated that up to 50% of income generated in Fisheries industry, 35% in Forestry, 33% in Personal Services, and 25% in Textile industry is not being reported and, thus, is not included in the statistical data and reflected in the indexes. *********************** |
|
November 20, 2003 Scandal rocks Office of the President |
Special Parliamentary Commission has been investigating
a brewing scandal involving key presidential advisors and possibly
President R. Paksas himself. The scandal stems from apparent close
ties of president's national security advisor's close ties with Jurias
Borisov, head of "Avia Baltika" firm, who is suspected of being involved
Muscovite company "Almax" known for it connections with Russian mafia and
Russian security service elements. Borisov, holding dual Russian and
Lithuanian citizenships, was the largest contributor to R.Paksas
presidential campaign, contributing more than a million Lithuanian Litas,
and was frequent visitor to presidential offices after election. The commission is looking into what promises were made by Paksas campaign to Mr. Borisov for his support and how deeply he was involved in the conduct of the campaign. There is evidence that the campaign was involved in attempt to destabilize the financial industry by spreading a rumor of militant failure of "Vilniaus Bankas", the largest commercial bank. Also, it appears that Mr. Borisov have been involved in attempts to remove certain government officials, among them the head of National Police. The question on how this will effect the presidency depend upon the proverbial "What did he know and when did he know ?". According to "Lietuvos Rytas" presidents favorable rating dropped almost twenty points in one month, while his negatives rose about fourteen points. President has already accepted resignations from his National Security Advisor R. Acas, Foreign Policy Advisor A. Medalinskas, Head of Social Politics Group J. Ragauskas and his Press Representative R. Gorbaciovas. ******************** |
|
October 20, 2003 Skyscraper rises in Vilnius |
A 33 story and an adjacent 20 story structures
now define Vilnius skyline. These multi-use structures in addition
to residential apartments will house City of Vilnius administrative
offices and a commercial center. The commercial center "Europa" is
scheduled to open in March of 2004.
********************* |
|
October 19, 2003 Russian and German firms to run Lithuania's natural gas system |
Representitives of German firms, "E.ON Energie", "Ruhrgas",
Russian gas company "Gazprom" and Lithuanian government initialed the
agreement between these parties as the future governance of Lithuanian gas
company "Lietuvos dujos". "Gazprom" is in process of buying 34% of
shares in " Lietuvos dujos" from Lithuanian government for 91 million
Litas. The German companies already own 34%. After the
sale to "Gazprom" the government will still own 17% of company's shares. ****************** |
|
September 30, 2003 Chairman of Israel's Knesset visits Lithuania |
In his speech before the Lithuanian Parliament and
later at the Holocaust memorial, Reuben Rivlin, the Chairman of
Israel's Knesset, reminded Lithuanians to accept the guilt for
participating in slaughter of Jews during World War II and for
appropriation of their property. He stated that the Israelis will
never forget this. During his visit he discussed with the Lithuanian leadership return of property to Holocaust survivors and granting of dual citizenship to Israelis who had left Lithuania. ******************** |
|
September 20, 2003 Parliament ratifies EU Treaty |
On September 16, 2003 the Lithuanian Parliament (Seimas)
by a vote of 84 to two ratified the treaty outlining terms, conditions and
obligations on EU and Lithuania pertaining to Lithuania's entry into EU on
June 1, 2004. The treaty document consisted of more than 4,500
pages.
********************* |
|
August 30, 2003 Plans readied to introduce Property Taxes on private residences |
A law is being drafted to introduce Property Tax on
private homes, apartments, and other buildings. Currently only land
and business real-estate is being taxed. A tax rate of 1-2% based on
its value, above yet to be determined exempted amount, is expected. These
taxes are to raise revenues for local governments expected.
The local governments will be allowed to adjust the tax rate up or down
based on their budgetary needs. As this tax measure comes on the heels of unpopular sharp increase of tax on land, it will probably will not be taken up for consideration until after the next parliamentary election due in autumn of 2004. ******************** |
|
August 15, 2003 Border treaty with Russia takes effect |
On August 12, 2003, Lithuanian Foreign Minister and the
Russian Ambassador to Lithuania exchanged Lithuania-Russia border,
economic zones and continental shelf in the Baltic sea limits treaty
documents. This placed the treaty in effect as of this date.
Lithuania became first of former Soviet Republics to resolve the border
issues with Russia.
The treaty had been signed in Moscow on October 24, 1997 by then Lithuanian President A. Brazauskas and Russian President was Boris Yeltsin. It was ratified by Lithuanian Parliament on October 19, 1999, and by by Russian Duma on May 28 of this year. ****************** |
|
August 3, 2003 Lithuanians are dropping regular phone service and switching to Cell Phones |
"Lietuvos Telekomas" the sole telephone service
provider in Lithuania lost 19.2% of its subscribers over the past 12
months. The company's receipts over this first half of the year were
17 % lower than the same period last year. As the result the company
is intending to reduce its workforce by 13 % by end of 2003. The residential customers account for most of the losses. The phone company, enjoying its monopoly position, over the past years have raised the rates to such level that the residential and some business users are finding it cheaper, as reliable and more convenient to use cell phone systems offered by a number of telecommunication companies. The much slower rate of growth, compared to other countries in the region, in use of internet is also probably the direct result of these high telephone service fees. ***************** |
|
July 28, 2003 Seven consular officials lose jobs in bribery scandal |
Seven diplomats in the consular service, including the
Director of the Consular Service department and and the general consul in
St. Petersburg, Russia, have lost their jobs due to allegations of bribes
being accepted for issuance of visas to Lithuania. This scandal
involves the Lithuanian Consulates in Moscow, St. Petersburg, Kaliningrad
region and Minsk in the neighboring Belarus.
*********************** |
|
July 27, 2003 Corruption within the Judicial Branch of the Government |
Four senior judges in cities of Birzai, Panevezis and
Alytus have been dismissed and are being investigated for ties with a
large scale smuggling syndicate and aiding the defendants in smuggling
cases. Smuggling accounts for a large part of Lithuania's shadow
economy which is estimated to be equal to 25% of the country's total Gross
Domestic Product.
************************ |
|
June 20, 2003 EU opens doors for Lithuanian pork. |
The EU product safety authorities has issued the
required clearances to 18 Lithuanian meat processing firms to export fresh
pork and other pork products. Currently there are more than 300 such
meat processing companies in Lithuania. Majority of existing meat
processing facilities are unable to meet the EU's strict and detailed
requirements.
************************ |
|
June 18, 2003 There was an election, but the electorate stayed home |
On June 15, 2003 an election was held to fill 4 vacated
parliamentary seats. Those seats were previously held by the newly
President Paksas , two of his advisors and one parliamentarian who chose
to accept a mayor's position in Panevezys. There were 27 candidates
running for these seats, however no one was elected, because the voter
participation in each of the electoral districts was less than 40%, the
minimum requirement for a valid election. Only about 11% of 150,000
eligible voters made it to the polls. No new elections are panned
and, thus, the Seimas will have to continue with only 137 members. **************************** |
|
May 23, 2003 Dairy farmers blockade the roads to protest low prices. |
For two days the dairy farmers blocked the roads
stopping all commercial traffic at the border transit points to Poland and
Latvia, the main Vilnius-Klaipeda and other highways. They
were protesting low prices paid them for the milk supplied to the
processors and were demanding increase in government subsidies to
bring the price up to 60 cents for liter for the highest quality milk.
The average price to dairy farmers for their milk has dropped about 30%
from the same period last year. After promise by the prime minister that
extra funds for milk subsidies will be allocated the blockade was lifted.
However, as the funds for the the level of subsidy demanded by the farmers
are not available, further similar protest actions by the farmers
are likely to continue.
********************* |
|
May 13, 2003 Lithuania votes to join European Union |
In a referendum conducted over a two day period, May
10-11, the Lithuanians overwhelmingly voted in favor of joining the
European Union. 67.37% of the qualified voters participated in this
referendum casting 89.95% of votes in favor of joining the E.U.
Prior to the election the government was concerned that because over
200,000 of the registered voters were living outside of the country,
the required 50 % participation of the electorate to validate the
referendum may not be reached. An extraordinary campaign to get the
vote out by government and other proponents was organized. A major
retail market chain, "Maxima", even offered to sell box of laundry soap
powder, bar of chocolate, or bottle of beer for one cent to all who
presented voting sticker. It was reported that 300,000 took up this
offer costing the company close to one million Litas (about $300.000).
******************** |
|
May 10, 2003 U.S. Senate votes for admission of Lithuania to NATO
|
U.S. Senate today unanimously (97 to 0) voted in favor
of admission of Lithuania and 6 other Central European stated to NATO. ******************** |
|
March 28, 2003 Lithuania plans to send a contingent of it's military for service in Middle East |
Several weeks ago the Lithuanian parliament voted to
approve the Lithuanian participation in humanitarian type of mission in
Middle East. The military is prepared to send six army medical
and ten army supply personnel when and if requested by the U.S military.
Troops initially are to be deployed in Kuwait. *********************** |
|
March 15, 2003 President and Georgian fortuneteller |
Since the inauguration the Lithuanian national press
has had a field day about a Georgian born fortune teller/faithhealer,
Lena Lolisvili, and her apparent influence over the the new President.
It has been reported that all candidates for presidential staff positions
had to be cleared by her. At the inaugural she sat as an honored
guest just behind the the president. The president's relationship
with her apparently started several years ago when she healed him from
some unknown disease or illness and predicted his ascendance to the
country's presidency. *********************** |
|
March 12, 2003 Constitutional court overturns law allowing to re-nationalization of private rental property |
Lithuania's Constitutional court declared that a law,
passed last year by the legislature, over the veto of the President
Adamkus, violates the constitutional protection of private property
rights. That law had prevented the legal owners of property to take
procession of their real property and allowed the current renters of that
property to "privatize" the homes and apartments of these legal owners. *********************** |
|
March 10,2003 President confirms the government
|
On March 6, President Paksas without delay approved
the government structure submitted by the Prime Minister. All
ministers, with exception of one, retained their positions. The Prime
Minister replaced R Dobrovski, a social liberal, with Juozas Olekas,
a social democrat, as the health minister. Eight of the
ministries are now held by the social democrats to only five by their
coalition partners - the social liberals.
********************** |
|
March 1, 2003 Prime Minister Submits Letter of Resignation |
As required by the Constitution, the Prime Minister, A.
Brazauskas, submitted his Government's resignation to the newly
inaugurated President R. Paksas. The fate of the the current
government is to be determined within 15 days, however only minor changes
in some ministerial positions are expected. ****************** |
|
March 1, 2003 R. Paksas Inaugurated President of Lithuania |
On February 26, R. Paksas at an outdoor ceremony
in the capitol city of Vilnius was inaugurated as the President of
Lithuania. He became the third popularly elected President of
Lithuania since its separation from the Soviet Union. Although his
inaugural address dealt primarily with domestic problems, he did express
desire for Lithuania's unity with Europe and full participation in
Euro-Atlantic security Alliance. The speech was very moderate
in both tone and content. This differed sharply with his speeches on
the campaign trail.
*************** |
|
February 18, 2003 Referendum on EU |
Parliament is considering revising referendum
requirements and procedures to ensure passage of the referendum on EU
membership. Only a "Consultive Referendum", conducted over a
period of two days, whose results would not bind the Parliament is
being proposed. Such referendum also would require only of majority
of voting for passage. The referendum is scheduled for June 11-12 of
this year. ************** |
|
February 15, 2003 Further Restrictions on Sale of Agricultural Real-Estate |
With only days left in his term, President V Adamkus
signed a temporary law, passed by the leftist majority, which for a period
of seven years drastically restricts sales of agricultural land.
This new law ensures continued non-existence of agricultural real-estate
market and sluggish growth of the agricultural sector of the economy.
This action by the President shocked the parliamentary conservatives who
were expecting him to veto this measure. It is expected that this
law will be successfully challenged in the Constitutional Court, but this
may take several years. ************ |
|
February 14, 2003 President-elect Avoids Foreign Press |
President-elect R. Paksas, since initial meetings with the foreign press immediately after election, has been avoiding further contact with the representatives of the foreign press. He has refused to give interviews to number of Western journalists and agencies, including the Associated Press, until after the inauguration. Meanwhile all question by foreign press are responded to by his foreign policy advisor A. Madalinskas. ****************** |
|
February 10, 2003 Election Costs |
The two finalist in the Presidential contest spent over
6.35 million Litas (approximately $1.6 million). Winner R Paksas
spent 3.287 million Litas and V. Adamkus 3.069 million.
Contributions to R. Paksas campaign exceeded the expenses, but V.
Adamkus campaign ended up more 1 million in debt.
************** |
|
February 1, 2003 Three Centrist Parties Plan to Unite |
As the result of disappointing election results, the
leaders of three centrist parties (Liberal, Center and Modern Christian
Democrats) signed an agreement to unite by this summer in order to provide
an effective opposition to the ruling Social Democrats. the united
party would have 327 members in the District councils and 29 in the
Parliament. *************** |
|
January 6, 2003 Presidential Election Upset |
The Lithuanian electorate rebelled against status quo
by electing Rolandas Paksas for President in the run-off election
held on January 5, 2003. The current President Valdas Adamkus
running for reelection for another six year term was backed by
virtually all parliamentary ruling and opposition parties. With
52.25% of eligible voters casting their votes, R. Paksas received 776,764,
or 54.91%, of votes. V. Adamkus received 637,908, or 45.09%, of
votes cast. R. Paksas received plurality of votes in 55 of 60
electoral districts. V. Adamkus carried only the city of Vilnius, city and
county of Kaunas and two resort areas of Palanga and Birstonas.
For full analysis and impact of the Presidential and Local elections see Politics page of this web site. ******************************** |
|
December 31, 2002 Constitutional Court Changes Some Election Results. |
Two days after the election the Lithuanian
Constitutional Court issued a disturbing ruling, that negates some local
government election results and creates major changes in the the
administrative structure of the local government. The Court issued a
ruling that no member of Parliament can simultaneously serve on
Local government Councils. and no Council member can serve in local
government administrative position, including that of the Mayor. It
has been the practice and the expectations of the voters that the elected
Councilmen would select the highest administrative positions, such as
mayor, vice-mayor from their ranks based on the relative strength of the
parties represented on the Council. Thus, the electorate
voting for a person whom they wanted for their mayor, unless that person
resigns from the Council, may get a mayor they did not vote for. The
additional problem is that the responsibilities, accountability and the
relative powers of the Mayor and the Council are not clearly defined.
This may lead to prolonged confusion within most of local administrations.
In this election 87 parliamentarians were also running for seats on local Councils. 67 were elected. These winners, will now have to decide in which position to serve. The big question is why the Constitutional Court issued this ruling not only weeks after the candidate list were approved by the Election Commission, but even after the election results were certified. The issue was pending before the Court for almost two two years. **************************** |
|
December 26, 2002 2002 Election Results |
53.45% of 2.6 million of eligible voters
cast their ballots last Sunday for the the presidential and local
government Council candidates. No candidate for the president received the required 50% of the vote, therefore the election in heading for a runoff between the two candidates receiving the highest number of votes. Runoff election is to be held between Valdas Adamkus, who received 35.31% of the vote, and the runner-up Rolandas Paksas, with 19.82%. Noof the other 15 candidates received more than 10% of the vote. The runoff election will be held on January 5, 2003. From of 10,000 candidates 1560 were elected to to fill seats on 60 local government councils. The Lithuanian Socialdemocrat Party captured 331 (21.2%) of seats; Farmers and New Democracy Union - 189 (12.1%); Lithuanian Conservatives 173 (11,1%); Lithuanian Liberals Union - 161 (10.3%); Lithuanian Center Union - 158 (10.1%). No other of the 25 parties and numerous coalitions entering candidates captured more than10% of seats. For more on elections go to Politics in Lithuania ******************************* |
| December 20, 2002 |
On December 22 Lithuanians will go to
polls to elect the President and representatives to local government
councils. There are 17 candidates running for the presidency and
10,000 running for seats on 60 local government councils. According
the latest pre-election polls, the leading candidate for presidency is
Valdas Adamkus, an American expatriate and current president seeking
reelection. The polls show him with 30% voter support. He is
followed by R. Paksas, member of parliament, ex-premier and ex-mayor of
Vilnius; and A. Paulauskas, current chairman of the Lithuanian Parliament
(Seimas), each garnering 10% support. If no one receives
majority of votes cast, a run-off election between two highest vote
getters will take place in January. *************************************** |
|
December 16, 2002 Parliament adopts 2003 budget |
Last Tuesday, the Lithuanian
Parliament after a two hours of discussions by a vote 72 to 43 adopted
2003 state budget. The adopted budget projects a 1.3 billion Litas
(aprox. 366 million U.S. $) deficit amounting to 2.4% of expected GDP.
The government income is expected to rise by 6.8% and the expenditures by
7.7%. First time in five years no reductions in any government
programs are being proposed.
**************************************** |
|
December 9, 2002 Beer sales up by 17.5% |
In the first eleven months of 2002,
Lithuania's Beer producers sold 17,5 % more beer than for the same period
last year. This increase appears to be due to extreme price
competition among the large foreign owned breweries. During
these eleven months the breweries produced 240 million liters of beer, of
which 10.46 million liters was exported to other countries. It
should be noted for the same period less than one million
liters was exported
*************************************** |
|
November 15, 2002
Ceramic tile manufacturer expands production facilities |
The largest producer of ceramic tiles in
the Baltic States, "Dvardzionis Keramika", is investing 5.6 million euros
to build a new ceramic tile production line. The new production facility
is expected to be completed in fall of 2003. More that half of the
firm's current production is being exported to neighboring countries. Its
production meets ISO 14001 standards. ************************************* |
|
November 7, 2002 Hot summer result in feed grain shortage |
Abnormally hot summer has reduced this year's grain
harvest to 2.5 million tons, about 7-8% below the last years yield.
While this amount will be adequate to meet population food requirements,
shortages of grain for use as animal feed is projected. The poultry
and hog producers are seeking authority to import duty-free 150 thousand
tons of feed grain to alleviate the shortage.. ****************************** |
|
August 22, 2002 Williams International is pulling out of Lithuania |
Williams International has agreed to sell their 26.85%
share in "Mazeikiai Nafta" oil refinery to a Russian oil conglomerate "Juko"
for reported $85 million. "Juko" will then own 53.7% of that company's
shares. "Juko" is expected to take over operational control of "Mazeikiai
Nafta" in September. *********************************** |
|
August 10, 2002 Exports of Milk products to U.S. is expected to drop upon Lithuania's entry into EU |
Anticipated entry into European Union is expected to
curtail export of Lithuanian milk products to United States.
According the U.S. Department of Agriculture 13,550 tons of fermented
cheese was imported from Lithuania. This accounts for more than 60% of
total production by Lithuanian firms. Currently Lithuania is the
fourth largest exporter of milk products to the U.S. Upon entry into
EU exports to U.S will be governed by EU quota set for
Lithuania. **************************** |
|
August 7, 2002 Construction boom is creating labor shortages |
Increase in construction activity is
creating shortage of experienced construction workers. The construction
activity in the first half of this year is 20% higher than for the same
period last year. The shortage is especially felt in the capital
city of Vilnius. The builders association is asking that qualification
requirements for construction specialist be eased.
************************************ |
|
July 2, 2002 Vote to eliminate ban on sale of agricultural land to foreigners postponed |
Due to continued
opposition by the nation's farmers,
the second parliamentary vote scheduled for this week
to amend the
constitution to eliminate provision that bans ownership of agricultural
land by corporations and non -citizens was postponed until
September. This constitutional ban is one of the main issues
blocking Lithuania's entry into the European Union. The Lithuanian
parliament, by the vote of 74 to 28, on 7/1/02 adopted a resolution
recommending to the Government in the negotiations with EU to seek a 7-10
year transitional period regarding the ban on sales of agricultural land
to foreigners.
**************************** |
|
June 15, 2002 Country's population continues to drop |
According to
preliminary
data the population of Lithuania
shrank by 11,000 in 2001.
As of January 2002 the population
was 3,482,000.
The decrease was due to emigration and by
particularly great negative natural change of population. In 2001 the
number of deaths exceeded live births by 8883. **************************** |
|
March 7, 2002 First step taken to allow ownership of agricultural land by corporations and foreigners
|
By a vote of 119 to 4,
with 3 abstentions, Lithuanian parliament voted to amend the constitution
to eliminate provision banning ownership of agricultural land by
corporations and non -citizens. For the change to take affect another
vote in about three months will have to be taken. An affirmative vote by
at least 96 of parliamentarians will be necessary for the measure to
pass. However, it is foreseen that some transitional period, possibly as
long as five years, will be incorporated to mollify the opponents who fear
a massive land grab of relatively cheap agricultural land by foreign
interests. **************************** |
|
February 20, 2002 Lithuanian GDP grew by 5.7% in 2001
|
The preliminary data
compiled by the Lithuanian Statistics Department shows that Lithuanian
Gross Domestic Product (GDP), boosted by unexpected growth of 7.9% in the
fourth quarter, grew by 5.7% in 2001. According to Finnish research
institute BOFIT, total Lithuania’s industrial sector sales increased by
17% over the prior year. The industries posting the highest growth in
sale were: Transportation equipment and parts --- up 125%: Oil refining
--- up 47%: Electric energy production and distribution --- up 29%; and
Textile industry --- up 16%.
**************************** |
|
February 3, 2002 Litas-Euro exchange rate is established
|
As of 2/2/02 the Lithuanian national currency Litas became delinked from the U.S. Dollar and its value was set in terms of Euro. This means that Litas, previously fixed at 4 Litas to $1 will now be allowed to float against the Dollar. The new fixed exchange rate of 3.4528 Litas to one Euro was based on the Euro-Dollar exchange rate on 2/1/02 as determined by the European Central Bank **************************** |
|
January 26, 2002 Foreign investments increase by 65% |
Lithuanian
Economic Expansion Agency reports that in the first nine months of 2001
direct foreign investment in Lithuania’s economy increased by 65% to $450
million (US). This amounts to an increase of $183 million (US) over the
same period last year. According to U.N. (UNCTAD) the overall foreign
investment in Central and East Europe remained stable at $27 billion even
though world-wide it decreased by 40% from the 2000 levels. **************************** |