Lithuania adopts constitutional law in line with EU’s Fiscal Compact

The Constitutional Law on the Implementation of the Fiscal Compact was adopted by 103 votes in favour, 1 against and 2 abstentions, the Seimas press service said.

The law lays down the rules regarding the general government surplus, restraints on the growth of general government expenditure, and general government budgets. Control of budgetary policy provided for in the law will be carried out by the National Audit Office of Lithuania.

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As stipulated in the explanatory note to the document, this will allow to enhance Lithuania’s capacities to carry out a responsible fiscal policy in order to achieve sustainable economic growth and stable public finances and to avert a debt crisis. Rimantas Šadžius, the minister of finance, previously asserted that additional administrative and practical guarantees would help the country reduce debt interest costs.

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