The state is ready to increase its debt to rescue the economy, Lithuanian President Gitanas Nauseda says, also adding that businessmen also need to be socially responsible towards their employees and partners.
Stability and Growth Pact
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Lithuania's draft budget for 2018 complies with the fiscal requirements of the Stability and Growth Pact, the European Commission said on Wednesday.
The European Commission has recognized Lithuania's so-called social model package, including its new Labour Code, as a structural reform and granted the country the requested flexibility in meeting its public deficit target.
Lithuania's 2017 draft budget plan may fall short of the provisions of the Stability and Growth Pact, however, this could be avoided by way of an exception, if the social model is listed as a structural reform, the European Commission has said.
Lithuania's new Labour Code, which is part of the so-called social model package, will come into force next July.
The Eurogroup thinks that Lithuania's planned new social model, a package of legislation on structural labour market and pension system reforms, in 2017 would be compatible with fiscal discipline.
