Sun. Sep 29th, 2024
Week in Lithuania | Government tightens gambling rules; IMF mission urges Lithuania pension reforms - Baltic News Network

Last week, Lithuania decided to set up a special agency for migrant reception, accommodation

IMF mission says Lithuania needs to reform its pension system

Lithuania needs a structural reform of its pension system as its population continues to age, Borja Gracia, the head of an IMF mission, said on Friday, the 31st of May. “There needs to be a pension reform, a parametric (systemic – BNS) pension reform. Your pension system is benefiting from better than expected dynamics in the labour market, higher labour participation, higher employment in the short term, high wage growth,” he told a seminar held by the IMF mission and the central Bank of Lithuania in Vilnius, adding that aging is “kicking and kicking quite significantly.” 2024 is the first year when more people will retire in Lithuania than will enter the labour market, Gracia said, adding that the planned increase in the retirement age will end in 2026, which will further increase pressure on the SoDra, Lithuania’s social insurance fund. By 2030, he said, the number of workers in Lithuania will fall from 1.8 million to 1.3 million and they will have to pay a large share of pensions, which will require a redistribution of the state budget. The IMF mission chief also says that Lithuania needs to make its health and education systems more effective, as well as to increase budget revenue collection.

Minister expects NATO’s green light on Ukraine to use arms in Russia

Foreign Minister Gabrielius Landsbergis said on Friday, the 31st of May, he hopes that after listening to Kyiv’s advice, NATO allies will agree on whether to allow Ukraine to use their supplied weapons to strike Russian territory. “I’ve always been of an opinion that Ukrainians are capable of defining the targets. I have full confidence that they know, they see, and they 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 believes that if a military target were moved from Russia to Belarusian territory, Ukrainians could still strike it. Ukrainian President Volodymyr Zelensky is pressing Kyiv’s supporters, particularly the United States, to allow the use of their supplied longer-range weapons to hit targets on Russian territory.

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

Lithuania’s GDP grew by 0.8% in the first quarter of 2024 compared to the fourth quarter of 2023, the second estimate from the State Data Agency showed on Friday, the 31st of May. The second estimate is unchanged from the first. The country’s GDP for the three months amounted to 17.1 billion euros (at current prices, seasonally and calendar-adjusted). Based on production approach, the first-quarter GDP growth was mostly driven by the performance results of enterprises engaged in manufacturing, and trade, transport, and storage.

Four suspected in probe into Vičiūnai Group’s exports to Russia

Lithuania’s law enforcement authorities investigating the possible export of sanctioned goods to Russia by a company of Vičiūnai Group, co-owned by Kaunas Mayor Visvaldas Matijošaitis, have identified four individuals suspected of violating sanctions, according to the public broadcaster LRT’s investigative journalism team, which published its findings on Thursday, the 30th of May. According to LRT, the prosecutors did not disclose whether the suspects include Vičiūnai Group’ shareholders or senior executives, citing as the reason the need to ensure “a balance between the right to private life and other rights” of the individuals involved in the investigation. The pre-trial investigation was launched on the 11th of April amid suspicions that Vičiūnai Group’s company Plunges Kooperatinė Prekyba had shipped sanctioned goods to Russia.

Lithuania to set up special agency for migrant reception, accommodation

Lithuania will establish a new agency to handle the reception and accommodation of migrants after the parliament Seimas on Thursday, the 30th of May, passed the respective amendments to the Law on the Legal Status of Aliens with 96 votes in favour, one against, and nine abstentions. The new agency will provide social, accommodation, and other essential services to asylum seekers, foreign nationals granted asylum in Lithuania, and irregular migrants pending their expulsion. The new agency will be subordinate to the Social Security and Labor Ministry and will include the Refugee Reception Center currently located in Rukla, in the central district of Jonava, and the Naujininkai refugee reception camp in Vilnius. According to Interior Minister Agne Bilotaitė, the new arrangement will relieve border guards of the responsibility for migrants’ living conditions. The agency will serve as a one-stop shop for legal, social, health, and other essential services to migrants. Almost 4 200 irregular migrants crossed into Lithuania from Belarus illegally in 2021. Camps had to be set up and heated facilities found to accommodate them.

Foreign ministry summons Georgian ambassador

Lithuania’s Foreign Ministry on Wednesday, the 29th of May, summoned Georgia’s ambassador was summoned to express its concern about the situation in Georgia. Earlier this month, the Georgian parliament passed a controversial “foreign influence” law despite mass protests and calls from foreign countries to repeal it. The law was vetoed by the country’s President Salome Zourabichvili, but the parliament overrode the veto on Tuesday. Critics condemn the law, saying it is like the one in force in Russia, aimed at silencing Moscow’s opponents. The EU has warned that the law is incompatible with Georgia’s long-standing bid to join the block, which is enshrined in the country’s constitution and is supported by more than 80% of Georgians, according to public opinion polls. The law stipulates that all independent NGOs and media organizations that receive more than 20% of their funding from abroad must register as acting in the “interests of a foreign state”.

Health minister urges WHO to invite Taiwan to it assembly as observer

Lithuanian Health Minister Arūnas Dulkys urged on Wednesday, the 29th of May, the World Health Organization to invite Taiwan to attend the World Health Assembly in Geneva as an observer. “Given the global toll of war, conflict, and crises, it is important to learn from those countries that have an excellent record in responding to pandemics. Taiwan’s contribution, including its expertise in health security, disease prevention and crisis management, is invaluable. The unjustified rejection of Taiwan’s contribution calls into question our All for Health, Health for All commitment,” the minister was quoted as saying in the Health Ministry’s statement.

Government approves tighter rules for gambling industry

The Lithuanian government on Tuesday, the 28th of May, approved tighter rules for the gambling business. They will prevent irresponsible gambling, strengthen the protection of problem gamblers, and increase transparency in the sector. Drafted by the Finance Ministry, the amendments will now go to the parliament for further consideration. The bill proposes that gambling houses (casinos), slot machines, bingo parlours and betting shops should have a qualified staff member who, in case of a suspicion of irresponsibility on the part of a gambler, would offer to stop gambling or would be able to stop the person. The ministry proposes obliging companies to introduce a remote gambling platform which not only contains general information on the gambler and their transactions, but also allows the Gaming Control Authority to access the platform at any time and check the data. The amendments propose fines of 3-5% of a company’s gross annual revenue for non-compliance with the rules on gamblers’ protection, responsible gambling, permitted advertising and other requirements, rising to 8-10% for repeated infringements.The new amendments come in response to the case where Šarūnas Stepukonis who embezzled around 40 million euros from several companies owned by BaltCap, an investment company, and gambled most of it away.

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