New transparency standards are being set for state and municipal enterprises
The Ministry of Economy and Innovation has drafted legislative amendments aimed at strengthening the governance and operational efficiency of state and municipality-owned enterprises. The changes will require large municipality-owned enterprises to establish key performance indicators and prepare letters of expectation. Independence requirements for members of collegial authorities will also be tightened. The Government approved these amendments today.
“The highest standards of transparency and efficiency must be common practice in state and municipality-owned enterprises. Since we have already achieved good results in the governance of state-owned enterprises, it is essential to extend this best practice to the level of municipality-owned enterprises. We aim for large municipal enterprises to operate as efficiently as possible, so we propose establishing key performance indicators for their operations and preparing letters of expectation,” says Minister of Economy and Innovation Edvinas Grikšas.
According to the minister, the proposal also calls for strengthening the independence requirements for members of collegial authorities, for example, limiting the number of boards on which they may serve to no more than two and requiring that candidates have other sources of income besides their work on collegial bodies in state and municipality-owned enterprises. The aim is to ensure that the decisions of independent members of collegial bodies remain objective.
In addition to the changes already mentioned, legislative amendments initiated by the Ministry of Economy and Innovation propose introducing a one-year “cooling-off” period for politicians and political appointees — for one year, they will be barred from serving as members of collegial authorities in state and municipality-owned enterprises operating in the sector they previously oversaw.
The administrative burden is also being reduced by eliminating the requirement for the above-mentioned companies to prepare and evaluate interim activity reports, and it is proposed that the Public Institution “Management Coordination Center” no longer prepare a summary report on the implementation of the activity strategies of state-owned enterprises. The estimated reduction in the administrative burden on economic entities resulting from the new legal framework would amount to approximately 128,000 euros.
The new requirements for large municipal enterprises will apply to 13 such enterprises, including “Vilniaus vandenys,” “Kauno energija,” “Klaipėdos vanduo,” “Vilniaus viešasis transportas,” and others.
Amendments to the Law on the Management, Use, and Disposal of State and Municipal Property still need to be approved by the Parliament.
Last updated: 25-05-2026
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