Lithuanian president warns about widening budget deficit

The EU’s executive body made comments and recommendations to Lithuania regarding fiscal discipline and public finance management, and an inflexible labour market, as well as the implementation of the pension reform and the reduction of social exclusion, the president’s press office said.

“From the European Commission’s recommendations, we can see that we have to be concerned about our increasing budget deficit. Irresponsible financial populism in the run-up to elections gives false expectations to people, undermines our country’s economic growth and reduces competitiveness. With the economy slowing down, overspending may be dangerous to the country,” Grybauskaitė said in a press release.

The Commission’s comments and recommendations obligate the government to take the necessary steps to ensure economic growth and the well-being of people without delay, she said.