President of the Republic of Lithuania

The results of negotiations on EU’s long term budget – unique opportunity for Lithuania

2020-07-21

The last round of negotiations on the EU multiannual financial framework and the European recovery fund aimed at fighting the impact of the coronavirus pandemic has been concluded after four days of discussions.

According to President Gitanas Nausėda, who headed the Lithuanian negotiating team, the EU’s new multiannual budget will make it possible to create a welfare state more effectively. “My objective at the negotiating table was to secure adequate EU funding for innovation and green policies from both the traditional cohesion and agricultural allocations as well as from the newly established recovery and resilience facility,” the President said.

Compared to the previous long term budget, Lithuania has succeeded to negotiate 1.7 billion euros more for 2021-2027, with the total sum of allocations amounting to 14.5 billion. For every euro paid to the EU budget, Lithuania will receive four euros in return. “It is a unique opportunity for Lithuania to invest in modernization and our common future,” the President said.

During the negotiations, Lithuania placed primary focus on the financing of cohesion and agricultural policies. It will receive a total of 6.2 billion euros in cohesion funds. “It is important to point out that our argument – presented in a consistent way – that the decline in Lithuanian population affected economic development was taken into account,” the President said.

The next multiannual financial framework will provide 5 billion euros in agricultural funds. The President underlined that the good news was that a sum of more than 400 million euros had been granted for direct payments. It would accelerate the pace of creating equal competitive conditions for Lithuanian farmers in the EU’s internal market.

490 million euros have been earmarked for the decommissioning of the Ignalina nuclear power plant, and another 189 million euros for the special Kaliningrad transit scheme. 

The President emphasized that an additional sum of 1.4 billion euros would be directed towards the Rail Baltica project. Lithuania’s efforts to keep the focus on military mobility resulted in special allocations amounting to 1.5 billion euros.

The President pointed out that EU leaders had agreed on a joint response to the health, social and economic crisis created by the pandemic. For this purpose, a recovery and resilience fund will be established with 2.4 billion euros set out for Lithuania. These funds will be used for Lithuania’s economic recovery, structural reforms, innovation, digitalization and green agenda. The Just Transition Fund will provide for a total of 243 million euros to fight climate change in regions facing the biggest challenges.

The President said that in case of need, Lithuania too would be able to receive a loan accounting for 6.8 percent of its GDP, or 3 billion euros, from the recovery and resilience fund for the implementation of reforms.

According to the President, there is a new important chapter before us now: transparent and effective investment of EU funds to create higher added value for all the people of Lithuania.

The President‘s Communication Group

Last updated 2020.07.21 12:16

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