Plan “New Generation Lithuania”: more than two-thirds of planned reform actions have been implemented, almost all investments have been launched
The reforms and investments under the plan “New Generation Lithuania” worth almost EUR 4 billion have gained momentum. According to Vice-Minister of Finance Vaida Česnulevičiūtė-Markevičienė, more than two thirds of the planned reform actions have already been implemented – 57 of the 79 planned by 2026.
“I am pleased that a large part has already been implemented – as much as 72 % of significant reform actions. Investment is growing rapidly, with calls for projects amounting to almost EUR 2.2 billion and project contracts signed for almost EUR 1.8 billion. Timely achievement of indicators is given special attention, as the plan also implements many important reforms in the Government’s programme,” Vice-Minister of Finance V. Česnulevičiūtė-Markevičienė stated.
However, according to V. Česnulevičiūtė-Markevičienė, a major role in the transformation of the country’s economy is played by supplementation to the plan “New Generation Lithuania”, which provides for the possibility to borrow from this instrument on favourable terms. The loan amounts to EUR 1 billion 552 million and will be dedicated to improving business competitiveness. Additional investments are also linked to the current challenges and will, therefore, focus on the development of renewable energy sources, energy efficiency and cybersecurity.
It was at the end of March that the Ministry of Finance together with the Ministry of Energy and the National Development Institution “Investicijų ir verslo garantijos“ (“Investment and Business Guarantees”) (INVEGA) presented record investments worth almost EUR 800 million to increase the energy autonomy and efficiency of the population, business and the public sector.
According to the Vice-Minister, the pace of implementation of the reforms and investments foreseen in the plan “New Generation Lithuania” does not lag behind other countries – Lithuania is in line with the EU average in terms of the amounts of payment requests submitted.
Experts estimate that the new investments of the plan “New Generation Lithuania” will ensure faster real GDP growth of 0.97 % per year over the period 2023-2027, while over the period 2023-2040, additional GDP of almost EUR 8.5 billion will be created thanks to the new measures of the plan “New Generation Lithuania”. It is estimated that every euro invested will bring a return on real GDP of EUR 2.25.
The European Commission positively assessed Lithuania’s first loan payment request under the plan “Next Generation Lithuania”. Following a positive assessment by the European Commission in accordance with ordinary proceedings, Lithuania received EUR 360 million in March.
Moreover, after the modification of the plan “New Generation Lithuania” last December, Lithuania received payments of EUR 39.7 million of RepowerEU grant funds and EUR 109.8 million of advance payment of the loan.
The second loan request for payment amounting to EUR 310 million (without deduction of the advance) is expected to be submitted in the third quarter of this year.
Last updated: 18-04-2024
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