Black market is the reason behind price rises – finance minister

The black market is the reason for skyrocketing consumer prices in Lithuania, according to the country’s Finance Minister Rasa Budbergytė.

“The reason [for high prices] is definitely not the adoption of the euro,” she said during an interview to Žinių Radijas on Thursday.

“I truly believe that the main reason is the size of the black market in Lithuania, the imbalance between supply and demand, particularly in Vilnius. There is a large amount of illegal funds circulating, which is why we sometimes pay one euro now where we used to pay just one litas.”

Economists say that the black market accounts for more than a quarter of the Lithuanian economy. Based on public surveys, 70% of respondents point toward excessive taxes as the main reason for the existence of the black market.

Žinių Radijas