Plan “New Generation Lithuania”: Lithuania Submits the Payment Request for EUR 565 Million

Lithuania submitted to the European Commission (EC) the first payment request under the plan “New Generation Lithuania”. Upon receipt of a positive EC assessment, Lithuania is expected to receive a subsidy of EUR 565 million.

“We have today reached a significant step in the implementation of the plan “New Generation Lithuania” — we submit the first payment request for an amount of EUR 565 million. We have pointed out a number of times that the plan consists not only of investment, but also of reforms, the implementation of which usually takes a little more time. I am delighted that in the first year of the plan “New Generation Lithuania” we have implemented half of the reform measures and are confidently moving forward. This is a solid foundation for further investments that will increase Lithuania’s growth potential and resilience to future shocks, – stressed Minister of Finance Gintarė Skaistė.  At the same time, in response to the current challenges, the plan will be supplemented with investment that will focus on the development of renewable energy sources, energy efficiency and cyber security “.

Exceptionality of the plan “New Generation Lithuania” is that the funds are paid out not for the costs of the projects incurred, but only when reporting for the achievement of the indicators. The plan consists of 191 indicators, the progress of which is monitored periodically, together with experts from the European Commission. Once a payment request has been submitted, the EC normally assesses it within two months and funds are allocated on the basis of this assessment, with the agreement of the Council of the EU. In the case of Lithuania – for the first 33 indicators.  

In more than a year since the launch of the plan, half of the reform measures of the “New Generation Lithuania” have been completed, and the planned investment is gaining momentum. The calls for half a billion euro have been announced for both the private and public sectors, and by the end of 2023 they are expected to be announced for almost the total amount of the plan “New Generation Lithuania” – EUR 2.1 billion. The calls under the plan will focus on a wide range of areas starting from business innovation, energy efficiency to smart measures in education, health and social areas, therefore, every resident will feel the benefits of the investment. 

A few illustrations of the achievements under the plan “New Generation Lithuania”: 

RES development for increased energy security

The results of the plan “New Generation Lithuania” are reflected in implemented reform measures and investment in strategic areas for the country. As Lithuania moves with stronger steps towards renewable energy sources (RES), the amendments to the RES Law have been adopted to reduce bureaucratic obstacles and excessive burdens for both residents and businesses willing to receive funding and produce clean and renewable energy.

Towards the transition of the transport sector in relation to climate change objectives, the RES-based fuel units of account scheme has been launched, which will promote the production and use of advanced fuels in the transport sector.

Information system for recharging points for public and semi-public electric vehicles has also been launched on www.eismoinfo.lt platform, where drivers can find the detailed information about electric vehicle charging stations operating in the country, their working hours, occupancy, etc.    

Reducing social exclusion

One of the achievements in the social area is the entry into force of the Law on the Single Person Benefit, under which more than 220 thousand single, disabled and elderly people receive an additional benefit of EUR 32 per month. 

Changes in the pension indexation mechanism have been implemented. With the amendments adopted, it was decided to introduce a new, additional indexation for the individual part of the pension. These changes will allow to have higher pension growth than ever as the economy grows. 

By reducing social exclusion, improving daily lives of people, it is essential that equal access to quality social services is accessible to everybody: both living in rural areas and in towns and cities. As a result, uniform requirements for the provision of accredited social care have been adopted. 

Quality of education in the regions, promoting the economy of science and innovation 

In order to ensure the highest possible quality of education in the regions, the implementation of the project “Millennium Schools” has been rapidly advanced. 57 municipalities have been actively involved in the creation of the Millennium Schools network, which aims to ensure equal educational opportunities for all Lithuanian children. 

In order to grow business that would create high value-added jobs, unique, innovative products and services, to accelerate the development of the innovation and science sector and businesses, the network of bodies coordinating these activities was optimised, and joint Innovation Agency and Science Implementation Policy Agency launched their activities. 

Advanced measures to combat the shadow economy

In order to combat the shadow economy, a system of accounting of vehicle owners has been put in place, thus to ensure that taxes are paid on purchase- sale transactions that have taken place. 

Also, on the basis of the analysis carried out, legislation has been adopted introducing restrictions on cash payments in risky sectors of the economy or on individual types of transaction. 


The Open Data and Digital Transformation Competence Centre launched its activities in Lithuania, which will ensure that open data and high-quality electronic services are provided to businesses and residents. 

The Communications Regulatory Authority has issued permissions to use radio frequencies for the deployment of 5G networks, therefore communication suppliers are starting to provide faster communication services to their customers already this year.

Additional information:

The plan “New Generation Lithuania” is prepared in the context of the eighteenth Government Programme and the National Progress Plan 2021-2030 as well as other national strategic planning documents. Reforms and investment of this plan will implement the Council recommendations addressed to Lithuania during the EU Semester in 2019 and 2020.  The investment and reforms include 7 components: 1. Green transition; 2. Digitalisation; 3. Education; 4. Health; 5. Social protection; 6. Innovation and science; 7. Public sector reform.  
The plan was approved by the Council of the European Union on 28 July 2021.

The total value of the plan is EUR 2, 225 billion. The plan is funded by the European Union Recovery and Resilience Facility NextGenerationEU.