EIMIN: Ways to increase public investment in Lithuania
The Government has approved a proposal by the Ministry of the Economy and Innovation to update the regional state aid map to allow increased state aid for certain investments across Lithuania. This will help accelerate the country's economic growth and regional development.
"This decision is a further step to ensure that Lithuania remains attractive to investors and to promote regional development. The increased state aid intensity will allow us to attract more projects with high added value, which will ensure sustainable regional development," said Aušrinė Armonaitė, Minister of the Economy and Innovation.
Under the new amendments, the intensity of state aid or support for investments in the Vilnius region will be increased from 35 to 40 per cent, in the Klaipėda region from 40 to 50 per cent and in the rest of Lithuania from 50 to 60 per cent.
It is also foreseen that the increased State aid intensity will only apply to investment projects that meet the objectives of the European Strategic Technology Platform (STEP) Regulation. These changes will remain in force until 31 December 2027, when the current regional aid map expires.
"Increasing aid intensities will also stimulate the creation of new high-paying jobs in the regions and attract investment. We already estimate that the wages paid by multinational companies attracted to Lithuania, which are also successful in the country's regions, are 51% higher," said Ieva Valeškaitė, Vice-Minister of the Economy and Innovation.
Until now, it has not been possible to increase the intensity of investments on the basis of the STEP Regulation, as the STEP Regulation itself does not apply until March 2024, but Member States wishing to increase the intensity of state aid for such investments had to notify their intentions to the European Commission in accordance with the established procedure and, with the Commission's approval, amend their regional aid maps accordingly.
The amendment of the regional aid map will allow the initiation of an amendment of the investment programme, adding a new STEP priority and providing for investments in activities to promote these technologies.