Plan "New Generation Lithuania": Lithuania submits payment request for an amount of almost EUR 400 million
Lithuania submitted to the European Commission (EC) the first loan payment request of the supplemented plan "New Generation Lithuania". It is planned that after receiving a positive assessment by the EC in accordance with the ordinary proceedings, Lithuania will receive EUR 387 million in April 2024.
"Today, we reach a significant step in the implementation of the supplemented Plan "New Generation Lithuania", we submit the first request for payment of the loan tranche of almost EUR 400 for the implemented five indicators. We have repeatedly noted that the plan consists not only of investments, but also of 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 will soon receive funds for further investments for both business and people, which will increase the growth potential of Lithuania's economy, resistance to future shocks, expand the use of renewable energy resources, increase energy efficiency and cyber security," noted Minister of Finance Gintarė Skaistė.
The distinctiveness of the Plan "New Generation Lithuania" is that the funds are not paid out for incurred project costs, but only when the indicators are met. The progress of the plan is monitored periodically, together with experts from the European Commission. After submitting a payment request, the EC usually assesses it within two months, and on the basis of this assessment, with the approval of the EU Council, funds are allocated. In the case of Lithuania, it is for the first 5 indicators of the loan tranche.
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 personalized services and consultations to the unemployed and registered persons preparing for the labour market who face challenges in finding employment. Municipalities, in cooperation with the Employment Service, will implement employment-promoting 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 Centre for Improving the Competences of Employees in the Social Services Field was established, it organizes and conducts regular, free trainings, provides methodological assistance, and ensures the support of new employees in the field of social services in their professional activities. When employees in the field of social services improve their professional competences, the individualized 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 Plan was approved, the actions of this plan will not only mobilize 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 expenditure assessed in terms of the green aspect in 2026 will reach 50 % of total State budget expenditure, and in 2023, the share of the value of green public procurements of the value of all public procurements will be 100 %. It is expected that by the end of 2026, an additional EUR 900 million of private funds will be raised for the implementation of green projects.
The Guidelines for Defence and Security Industry Development for 2023-2027 were approved, a more favourable environment is created for the development of the defence and security industry and the development of new defence products, the development of the defence and security industry sector is encouraged, the critical technologies and strategic competences required for defence are maintained within the country. The implementation of the guidelines will increase the international competitiveness of the Lithuanian defence and security industry, create greater added value and promote exports.
The plan for the centralization of public procurement of health institutions and agencies was adopted, from 2023, the centralization of procurements begins according to a new procedure: public procurements carried out by procurement organizations of the health sector, with the exception of small value procurement, will be carried out through the central procurement organization CPO LT. Centralized procurement in the health sector will reduce the administrative burden, as it will lead to more professionally prepared procurement documents, more unified procurement requirements, which will be easier for businesses to adapt to. In addition, the centralization of public procurement in the health sector will contribute to the professionalization of public procurement, the reduction of corruption risks, will allow more efficient use of the State budget funds, and standardize processes, which will make them more attractive to businesses participating in procurement in this sector.
The funds of almost EUR 400 million, which are to reach Lithuania in April, will be used to finance the planned additional measures of the plan “New Generation Lithuania”: EUR 1 billion will be used for loans and other financial instruments for business, and additional more than EUR 550 million – to the production of electricity from renewable energy sources. More details are available here.
According to the experts, it is expected that due to the new investments of the plan "New Generation Lithuania", in the period 2023-2027, faster real gross domestic product (GDP) growth will be ensured, on average 0.97 % or EUR 492.5 million per year.
Please note that on 14 May 2021, at the meeting of the Government ministers, a protocol resolution was adopted unanimously approving the submission of the plan "New Generation Lithuania" to the EC. On 30 June 2023, the Government approved the draft modification of the plan "New Generation Lithuania", which was submitted to the European Commission, and on 23 October 2023, the EC adopted a positive assessment regarding the supplementation of the Plan with the new investments. On 9 November, the Economic and Financial Affairs (ECOFIN) Council in Brussels endorsed the plan "New Generation Lithuania" supplemented with the new investments of EUR 1.7 billion.
Last updated: 20-12-2023
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