360 million reached Lithuania. “New Generation Lithuania” plan funds

Today, the European Commission (EC) transferred to Lithuania the funds of the loan payment request of the supplemented “New generation Lithuania” plan – 360 million. EUR, intended to implement the reforms and investments provided for in the “New Generation Lithuania” plan.

“We have repeatedly noted that the plan includes not only investments, but also reforms, the implementation of which usually requires political will. We are confidently moving forward implementing the necessary steps for Lithuania, this time in the areas of social security, health system, national defense and green finance. Thanks to these reforms, we received funds for further investments for both business and people, which will increase the growth potential of Lithuania’s economy, resistance to future shocks, expand the use of renewable energy resources, increase energy efficiency and cyber security”, noted Minister of Finance Gintarė Skaistė.

The uniqueness of the “Naujos Kartos Lietuva” plan is that the funds are not paid out for incurred project costs, but only when the indicators are met. The progress of the plan is monitored periodically, together with experts from the European Commission. After submitting a payment request, the EC usually evaluates it within two months, and on the basis of this evaluation, with the approval of the EU Council, funds are allocated. In the case of Lithuania – for the first 5 indicators of the loan part.

360 million EUR 1 billion funds will be used to finance the planned additional measures of the New Generation Lithuania plan: EUR 1 billion. EUR for acquiring or developing green, digital and innovative business technologies that would create high added value and are export-oriented, and additional more than EUR 550 million. euros – to the production of electricity from renewable energy sources. You can find more details here.

Specific implemented indicators:

Reformed cooperation between the Employment Service and municipalities in providing services and consultations adapted to individual needs for both job seekers and those preparing for the labor market. Amendments to the legislation have ensured that the Employment Service, using the case management method, will provide personalized services and consultations to unemployed and registered persons preparing for the labor market who face challenges in finding employment. Municipalities, in cooperation with the Employment Service, will implement employment-promoting programs. Concrete assistance provided by the Employment Service and municipalities will help a person preparing for the labor market to solve problems limiting employment and to successfully integrate into the labor market.

A center for improving the competences of employees in the field of social services was established – organizes and conducts regular, free trainings, provides methodological assistance, ensures the support of new employees in the field of social services in their professional activities. As employees in the field of social services improve their professional competences, the individualized assessment of the need for social services is carried out more efficiently, as well as the selection of personal assistance measures, and inter-institutional cooperation is improved.

The Green Finance Action Plan has been approved – the actions of this plan will not only mobilize public and private finances to achieve the goals of climate change mitigation and adaptation to climate change, but also increase Lithuania’s attractiveness for investors investing in green financial products. At the same time, the goal of Lithuania becoming a leader in the Baltic region in the field of green finance is being implemented. After the implementation of the plan, the share of state budget expenditures assessed in terms of the green aspect in 2026 will reach 50 percent of all state budget expenditures. It is expected that by 2026 an additional 900 million will be raised by the end of of private funds for the implementation of green projects.

Defense and security industry development in 2023-2027 approved. guidelines – a more favorable environment for the development of the defense and security industry and the development of new defense products is created, the development of the defense and security industry sector is encouraged, critical technologies and strategic competences required for defense are maintained within the country. The implementation of the guidelines will increase the international competitiveness of the Lithuanian defense and security industry, create greater added value and promote exports.

The plan for the centralization of public procurement of health institutions and agencies was adopted – from 2023 the centralization of procurements begins according to a new procedure: public procurements carried out by procurement organizations of the health sector, with the exception of small values, will be carried out through the central procurement organization CPO LT. Centralized procurement in the health sector will reduce the administrative burden, as it will lead to more professionally prepared procurement documents, more unified procurement requirements, which will be easier for businesses to adapt to. In addition, the centralization of public procurement in the health sector will contribute to the professionalization of public procurement, the reduction of corruption risks, will allow more efficient use of state budget funds, standardize processes, which will make them more attractive to businesses participating in procurement in this sector.

According to experts, it is expected that due to the new investments of the “New Generation Lithuania” plan in 2023-2027 during the period, a faster growth of the real gross domestic product (GDP) will be ensured – on average by 0.97 percent. or after 492.5 million euros per year.

The value of the supplemented loan payment request of the “New Generation Lithuania” plan is 387 million. euros, but the funds will be disbursed proportionally after deducting the already paid advance.

We remind you that in 2021 May 14 During the meeting of the government ministers, a protocol resolution was adopted, unanimously approving the submission of the “New Generation Lithuania” plan to the European Commission. June 30, 2023 The government approved the project to change the “New Generation Lithuania” plan, which was submitted to the EC, and in 2023 October 23 – received a positive EC assessment regarding the addition of new investments to the Plan. November 9 The Economic and Financial Affairs (ECOFIN) Council in Brussels approved the supplemented “New Generation Lithuania” plan with 1.7 billion. EUR of new investments.