L. Savickas: Lithuania's competitiveness will be determined by quick decisions
Technological progress, cutting red tape, improving the business environment and attracting investment are the cornerstones of accelerating Lithuania's economic growth, says Lukas Savickas, Minister of the Economy and Innovation, on the occasion of the symbolic 100th anniversary of the government.
"Lithuania can grow faster and earn more, but the right conditions must be in place - targeted investments and incentives for businesses, access to capital, cutting red tape. By freeing businesses from red tape, we will create the conditions for them to focus on growing their businesses. This will be a win-win situation for all of us - we will have well-paid jobs and we will grow our country's economy," said Lukas Savickas, Minister of the Economy and Innovation.
In the 100 days since the new government was confirmed, the team at the Ministry of the Economy and Innovation has focused on working to transform the country and grow the economy. To this end, the START Plan has been prepared and presented.
The work programme, which focuses on 5 priorities, received more than 400 proposals after the public presentation, some of which were taken into account. These have been developed into projects with assigned project managers and teams, clear deadlines and measurement indicators. The plan is already being implemented and will enable Lithuania to grow faster.
Immediate action has also been taken to cut red tape. L Savickas signed an order to subordinate bodies and institutions to identify the 3 activities that create the most bureaucratic burden for businesses and citizens. Plans on how to reduce these burdens by 30% are expected by 1 April. Institutions that fail to cut red tape will have their funding cut. The government's Commission on Reducing Excessive Regulation has suggested that other ministers follow suit.
The administrative burden on the tourism sector has already been reduced, with much less data being required on those staying in the country. Following comments from the industry about the amount of data collected in the National Tourism Information System (NTIS), it was decided to simplify the registration process for tourists and remove certain requirements.
In order to increase the volume and speed of investment in the country, L. Savickas, who has just started his term in office, has initiated a change in the statutes of Invest Lithuania, expanding the agency's activities - from the new year, the agency will work not only with foreign investors but also with local companies, focusing on large-scale investment projects.
In addition, amendments to legislation of particular importance to large investors were quickly submitted to the government, which will allow them to extend the deadlines for investment, job creation and wage commitments by a further two years (currently five years). The amendments are already being considered by the Seimas.
Amendments to the law on joint stock companies have also been initiated and submitted to the business community. The adopted amendments would contribute to creating a more business-friendly environment. The proposed amendments cover areas such as the development of the capital market, the reduction of administrative burdens on business, the promotion of investment and the liberalisation of the business environment.
Another important step is to find funding for an ombudsman institute for small businesses. EIMIN has already drafted a proposal for consideration by the government, which will strengthen the protection of business interests in Lithuania and improve the legal environment.
An initiative has also been taken to revise the export control mechanisms for dual-use goods in order to ensure the effectiveness of sanctions against Russia and to reduce the negative impact on Lithuanian businesses. Businesses now have a responsibility to ensure that products manufactured in Lithuania do not reach Russia and to prevent possible circumvention of sanctions. In addition, STRATLES, the Electronic Licensing System for Strategic Goods, has been launched, through which companies can apply for services related to the licensing of strategic goods for export, import, transit, brokering and shipment to the EU.
In the interest of speed, Minister L. Savickas, as a member of the Seimas, initiated some of the amendments to the law. Upon submission, the Seimas approved an amendment to the Employment Act that would extend indefinitely the payment of entry allowances to foreign workers and the employers who attract them. This would allow Lithuania to compete for talent on the international market. In addition, amendments to the Law on Administration, which provide for the creation of a scoreboard (to monitor compliance with deadlines by institutions) and a one-time extension/revision rule, are expected to be adopted in the spring session. This rule would allow authorities to request additional data from businesses and residents only once and to extend the deadline.
Proposals have also been prepared for the spring session of the Seimas. EIMIN will propose a number of legislative changes that will reduce administrative burdens, encourage investment and contribute to faster economic growth. The focus will also be on reducing administrative and bureaucratic burdens.
Last updated: 24-03-2025
Related news:
EIMIN: continuing the aid measure to attract tourists to Lithuania
Invest ten times faster - EIMIN launches "Investment Highway"
Lithuania will step up cooperation with the World Tourism Organisation
EIMIN: Regulatory burden on business increased by €63 million last year
EIMIN: We invite you to showcase Lithuania's outstanding initiatives to promote entrepreneurship