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Prime Minister promises fiscal and administrative measures to tame inflation in Lithuania's quest for euro

Lietuvos premjeras Algirdas Butkevičius
AFP/„Scanpix“ nuotr. / Lietuvos premjeras Algirdas Butkevičius
Šaltinis: BNS

Lithuania will take fiscal and administrative measures in order to tame inflation and qualify for euro adoption, Prime Minister Algirdas Butkevičius promises.

“As far as the growth of prices is concerned, we think that we will try to use certain administrative regulatory mechanisms in the near future, which will enable us to avoid any tax amendments that could contribute to the growth of inflation next year. A task group in charge of taxation review will also come up with certain proposals how we should act so as to avoid any decisions which could drive the inflation further up through tax exemptions. Certain fiscal instruments and administrative regulators will be applied,” he said in an interview to the public radio on Tuesday.

Inflation was one of the Maastricht criteria which Lithuania had not met yet, he said.

“But I think there will be no enforcement [measures taken]. We still believe that economic growth will actually be stimulated, new jobs will be created in the near future,” Butkevičius said adding that certain measures should also be taken to drive down the prices of heating.

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