A week in Lithuania | Government tightens gambling regulations; IMF mission calls for pension reform in Lithuania

Last week, Lithuania decided to create a special agency for the reception and accommodation of migrants

The IMF mission says Lithuania must reform its pension system

Lithuania needs a structural reform of its pension system as its population continues to age, said Borja Gracia, head of the IMF mission, on Friday, May 31. “We need a pension reform, a parametric (systemic – BNS) pension reform. Your pension system benefits from better than expected dynamics in the labor market, higher economic activity, higher employment in the short term and high wage growth,” he said at a seminar organized by the IMF and Central Bank of Lithuania mission in Vilnius, adding that aging is “digging and digging quite significantly.” 2024 is the first year in which more people will retire in Lithuania than enter the labor market, Gracia said, adding that the planned increase in the retirement age will end in 2026, which will further increase the pressure on the Lithuanian social security fund SoDra . He added that by 2030, the number of workers in Lithuania will drop from 1.8 million to 1.3 million and they will have to pay a large part of their pensions, which will require a redistribution of the state budget. The head of the IMF mission also says that Lithuania must improve its health care and education systems, as well as increase the effectiveness of collecting budget revenues.

The minister expects a green light from NATO for Ukraine to use weapons in Russia

Foreign Minister Gabrielius Landsbergis said on Friday, May 31, that he hoped that after listening to Kiev’s advice, NATO allies would agree on whether to allow Ukraine to use its supplied weapons to strike on Russian territory. “I have always been of the opinion that Ukrainians know how to define goals. I have full confidence that they know, see and understand what is needed, where the threat comes from,” Landsbergis told reporters on Friday ahead of an informal meeting of NATO foreign ministers in Prague. Lithuania’s top diplomat said he believed that if the military target was moved from Russia to Belarusian territory, the Ukrainians could still strike it. Ukrainian President Volodymyr Zelensky is pressuring Kyiv’s supporters, especially the United States, to allow the use of long-range weapons they have provided to strike targets on Russian territory.

Lithuania’s GDP grows by 0.8% q/q in the first quarter of 2024

Lithuania’s GDP increased by 0.8% in the first quarter of 2024 compared to the fourth quarter of 2023, according to the second estimate of the State Data Agency on Friday, May 31. The second assessment is no different from the first. The country’s GDP for three months amounted to EUR 17.1 billion (in current, seasonally and calendar adjusted prices). In the production approach, it can be concluded that GDP growth in the first quarter was mainly influenced by the results of enterprises engaged in production, trade, transport and storage.

Four suspects in investigation into the export of the Vičiūnai Group to Russia

Lithuanian law enforcement authorities investigating the possible export of sanctioned goods to Russia by a company belonging to the Vičiūnai Group, co-owned by the mayor of Kaunas Visvaldas Matijošaitis, have identified four people suspected of violating sanctions, according to a report by the investigative journalism team of public broadcaster LRT, which published its arrangements on Thursday, May 30. According to LRT, prosecutors did not reveal whether the suspects included Vičiūnai Group shareholders or senior management, citing the need to ensure “a balance between the right to private life and other rights” of those under investigation as the reason. A pre-trial investigation was initiated on April 11 over suspicions that a Vičiūnai Group company, Plunges Kooperatinė Prekyba, had sent sanctioned goods to Russia.

Lithuania will create a special agency for the reception and accommodation of migrants

Lithuania will create a new agency that will deal with the reception and accommodation of migrants after the Seimas Parliament on Thursday, May 30, adopted appropriate amendments to the Law on the Legal Status of Foreigners by a majority of 96 votes in favor, 1 against and 9 abstentions. The new agency will provide social services, housing and other necessary services to asylum seekers, foreigners granted asylum in Lithuania, and illegal migrants awaiting removal. The new agency will be under the Ministry of Social Security and Labor and will include the Refugee Reception Center currently located in Rukla, in the central district of Jonawa, and the Naujininkai refugee camp in Vilnius. According to Interior Minister Agne Bilotaitė, the new solution will relieve the border guards of responsibility for the living conditions of migrants. The agency will act as a one-stop shop for migrants, offering legal, social, health and other necessary services. In 2021, almost 4,200 illegal migrants entered Lithuania illegally from Belarus. Camps had to be established and heated facilities found to house them.

The Ministry of Foreign Affairs summons the ambassador of Georgia

The Lithuanian Ministry of Foreign Affairs on Wednesday, May 29, summoned the Georgian ambassador to express his concern about the situation in Georgia. Earlier this month, the Georgian parliament passed a controversial “foreign influence” law despite mass protests and calls from other countries to repeal it. The bill was vetoed by the country’s president, Salome Zourabichvili, but the parliament overturned the veto on Tuesday. Critics condemn the law, saying it is similar to the one in force in Russia and is aimed at silencing Moscow’s opponents. The EU warned that the law was inconsistent with Georgia’s long-standing push to join the bloc, enshrined in the country’s constitution and supported by more than 80% of Georgians, according to opinion polls. The law stipulates that all independent non-governmental organizations and media organizations that receive more than 20% of their funding from abroad must register as acting in the “interest of a foreign state.”

The health minister urges WHO to invite Taiwan to the meeting as an observer

On Wednesday, May 29, Lithuanian Minister of Health Arūnas Dulkys called on the World Health Organization to invite Taiwan to participate in the World Health Assembly in Geneva as an observer. “Given the global toll of wars, conflicts and crises, it is important to learn from countries that have excellent records in responding to pandemics. Taiwan’s contributions, including its expertise in health security, disease prevention and crisis management, are invaluable. The unjustified rejection of Taiwan’s contribution undermines our commitment of ‘Everything for health, health for all’,” the minister was quoted as saying in a health ministry statement.

The government approves stricter regulations for the gambling industry

On Tuesday, May 28, the Lithuanian government approved more stringent regulations for the gambling industry. They will prevent irresponsible gambling, strengthen protection for problem gamblers and increase transparency in the sector. The amendments prepared by the Ministry of Finance will now go to Parliament for further consideration. The bill proposes that gambling houses (casinos), slot machines, bingo halls and betting shops should employ a qualified employee who, if a player is suspected of being irresponsible, will suggest stopping the game or will be able to detain that person. The Ministry proposes to oblige companies to introduce a remote gambling platform that will not only contain general information about the player and his transactions, but will also enable the Gaming Control Office to access the platform at any time and check the data. The amendments proposed penalties of 3-5% of a company’s annual gross revenues for failure to comply with regulations on player protection, responsible gaming, permitted advertising and other requirements, increasing to 8-10% in the case of repeated violations. The new amendments are introduced in response to the case of Šarūnas Stepukonis, who embezzled approximately EUR 40 million from several companies belonging to the BaltCap investment company and spent most of this amount on gambling.

Follow us on Facebook and X!