TITLE

RISK SUMMARY

PUB. DATE
May 2005
SOURCE
Emerging Europe Monitor: Central Europe & Baltic States;May2005, Vol. 12 Issue 5, p12
SOURCE TYPE
Country Report
DOC. TYPE
Country Report
ABSTRACT
This section offers update on issues relating to political and economic risks in Lithuania as of May 2005. The four-party government's first 100 days in office have been marked by disagreements and inaction. Issues that have been argued by coalition members include the distribution of European Union (EU) funds, the future of the Mazeikiu Nafta refinery, and natural gas pricing. The turnover tax is set to be abolished in July 2005 and the government has promised to reduce the tax burden on individuals. The likelihood of Lithuania meeting the fiscal criteria for eurozone entry has increased following the decision of EU to take into account the net cots of pension reform when assessing budgetary position. In a report published in March 2005, the International Monetary Fund has urged the authorities to enact reforms that will support productivity, competitiveness and economic growth.
ACCESSION #
16695964

 

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