EUR 360 million funds under the plan "New Generation Lithuania" reached Lithuania
Today, the European Commission (EC) transferred to Lithuania EUR 360 million, the funds of the loan payment request under the supplemented plan "New Generation Lithuania" to implement the reforms and investments provided for in the plan "New Generation Lithuania".
"We have repeatedly noted that the plan includes not only investments, but also reforms, the implementation of which usually requires political will. We are confidently moving forward implementing the necessary steps for Lithuania, this time in the areas of social security, health system, national defence and green finance. Thanks to these reforms, we received funds for further investments for both business and residents, which will increase the growth potential of Lithuania's economy, resistance to future shocks, expand the use of renewable energy sources, increase energy efficiency and cyber security," noted Minister of Finance Gintarė Skaistė.
The uniqueness of the plan "New Generation Lithuania" is that the funds are not disbursed for the incurred project costs, but only when the milestones are achieved. The progress of the plan is monitored periodically, together with experts from the European Commission. After submitting a payment request, the EC usually evaluates it within two months, and based on this evaluation, with the endorsement by the EU Council, the funds are allocated. In the case of Lithuania, for the first 5 milestones of the loan instalment.
The funds of EUR 360 million will be used to finance the planned additional measures of the plan “New Generation Lithuania”: EUR 1 billion will be used for acquiring or developing green, digital and innovative business technologies that would create high added value and are export-oriented, and additional more than EUR 550 million – to produce electricity from renewable energy sources. You can find more details here.
Specific implemented indicators:
The cooperation between the Employment Service and municipalities in providing tailored services and consultations for both job seekers and those preparing for the labour market was reformed. Amendments to the legislation ensured that the Employment Service, using the case management method, will provide tailored services and consultations to the unemployed and registered persons preparing for the labour market who face employment challenges. Municipalities, in cooperation with the Employment Service, will implement employment incentive programmes. Specific assistance provided by the Employment Service and municipalities will help a person preparing for the labour market to solve problems limiting employment and to successfully integrate into the labour market.
The established Centre for Improving the Competences of Social Workers organises and conducts regular, free training, provides methodological guidance, supports new social workers in their professional activities. When social workers improve their professional competences, the individualised assessment of the need for social services is carried out more efficiently, as well as the selection of personal assistance measures, and inter-institutional cooperation is improved.
The Green Finance Action Planhas been approved, the actions of this plan will not only mobilise public and private finances to achieve the goals of climate change mitigation and adaptation to climate change, but also increase Lithuania's attractiveness to investors investing in green financial products. At the same time, the goal of Lithuania becoming a leader in the Baltic region in the field of green finance is being implemented. After the implementation of the plan, the share of the State budget green expenditure will reach 50 % of total State budget expenditure in 2026. An additional EUR 900 million of private funding for the implementation of green projects is expected to be mobilised by the end of 2026.
The Guidelines for the Development of the Defence and Security Industry 2023-2027 has been adopted to create a more favourable environment for the development of the defence and security industry and the development of new defence products, to stimulate the development of the defence and security industry sector, and to maintain critical defence technology and strategic competences in the country. The implementation of the guidelines will increase the international competitiveness of Lithuania’s defence and security industry, create greater added value and promote exports.
A plan for centralisation of procurement of health institutions and agencies has been adopted, the centralisation of procurement under the new procedure starts in 2023: public procurement by contracting authorities in the health sector, with the exception of low value procurement, will be carried out through the central contracting authority CPO LT. Centralised procurement in the health sector will reduce the administrative burden as it will result in more professionally prepared procurement documents, more unified procurement requirements that will make it easier for businesses to adapt to. Moreover, centralisation of public procurement in the health sector will contribute to professionalisation of public procurement, reduction of corruption risks, allow for a more efficient use of the State budget funds, standardisation of processes, which will make them more attractive to businesses participating in procurement in this sector.
Experts estimate that the new investments of the plan “Next Generation Lithuania” over the period 2023-2027 will ensure faster real GDP growth of 0.97 per cent or EUR 492.5 million per year on average.
The value of the loan payment request under the supplemented plan “Next Generation Lithuania” is EUR 387 million in total, but the funds will be disbursed pro rata after deduction of the advance already paid out.
Please note that just at the meeting of the Government Ministers on 14 May 2021, a protocol resolution was adopted to unanimously approve the submission of the plan “Next Generation Lithuania” to the European Commission. On 30 June 2023, the Government approved the draft amendment of the plan “Next Generation Lithuania” submitted to the EC and a positive assessment of the EC regarding the supplement of the plan with new investments was receivedon 23 October 2023. On 9 November, the Economic and Financial Affairs (ECOFIN) Council in Brussels approved the plan “Next Generation Lithuania” supplemented with EUR 1.7 billion of new investments.
Last updated: 18-04-2024
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