K. Vaitiekūnas ahead of ECOFIN: Lithuania chooses to increase personal income for stagflation phase of European economy
Ahead of the meeting of the Council of Economic and Financial Affairs Ministers of the European Union (EU) (ECOFIN), in a doorstep statement, Minister of Finance Kristupas Vaitiekūnas highlighted the need to return to discussions on the use of frozen Russian assets for Ukraine’s needs and presented Lithuania’s choice to address the challenges of a slowing European economy.
“Now that we have already taken care of financial support to Ukraine, we must also “take care” of Russian economy. We can already see that its economy is collapsing, so we need to further strengthen the sanctions regime and, of course, return to the issue of reparations loans. The aggressor must pay", Kristupas Vaitiekūnas stressed.
When asked by the journalist about the stagflation scenario in Europe, the Minister explained Lithuania's decisions: “The stagflation effect stems from a supply shock caused by geopolitical tensions and military action in the Middle East. Our economy is currently facing price increases and weakening growth. This is probably one of the most difficult situations in the economy, as we are unable to respond to both of these factors at the same time in order to achieve a better outcome. You have to choose between them. Lithuania has clearly opted for higher GDP growth and higher income growth. If the conflict in the Middle East does not turn into the worst-case scenario, we expect the Lithuanian people to live a little better at the end of the year," K. Vaitiekūnas stated.
For more information, please visit EU Council website.
Last updated: 07-05-2026
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