The Ministry of Finance received a partial positive assessment from the European Commission regarding the frozen funds of the “New Generation Lithuania” plan

The Ministry of Finance in response to the European Commission’s (EC) partial positive evaluation of 142 indicators of the “New Generation Lithuania” plan, adjusted to 8.7 million. EUR sanction and 14.88 million planned to be paid out in May. euros, will consider the possibility of applying to the General Court of the European Union (ECJT) regarding the compliance of the Commission’s actions with the regulation of the instrument. According to the “New Generation Lithuania” plan, Lithuania has already received almost 1 billion. EUR subsidy funds and more than 470 mln. euro loan funds.

“The Ministry of Finance will seriously consider the possibility of applying to the General Court of the European Union, asking it to assess whether the partial positive assessment of the European Commission applied to Lithuania complies with the regulation of this instrument. The project progress assessment methodology was approved long after the parties agreed with the EC on their obligations, so there are doubts about the proportionality of its application, compliance with the provisions of the EU regulation and the principles of legitimate expectations. We do not believe that the EC correctly implements the powers granted to it by the regulation”, noted Minister of Finance Gintarė Skaistė.

Lithuania will seriously consider the opportunity to apply to the OSCE. If it were decided to implement this process, then the Ministry of Finance would submit a request to the Ministry of Justice to submit a position to the Government. After receiving the approval of the Government, procedural documents would be prepared, which would be submitted to the ECJ by the Ministry of Justice. The claim must be filed within 2 months. from the publication of the EC decision.

We remind you that in 2022 November 30 After Lithuania submitted the first payment request for the implementation of the “New Generation Lithuania” plan, in 2023 February 28 The EC submitted an assessment of the first payment request and announced that over half a billion euros of funds will reach Lithuania: the 31st indicator out of 33 submitted has been approved. For the implemented reforms in 2023. we have received 542 million euros, which is already almost a quarter of the plan amount.

Due to 2 indicators (tax reform – 142, 144 indicators of the NKL plan), the EC made a decision to temporarily suspend 26 million. euro payout until they are finally reached. In December of last year, the EC evaluated the additional information provided by Lithuania on the actions taken, and considers the indicator 144 “Proposals prepared on the basis of a detailed analysis to be presented to the Seimas regarding the expansion of taxation of environmental taxes and other sources that do not inhibit economic growth” fully achieved.

The EC positively assessed the Government’s proposals to the Seimas regarding the changes to the real estate tax. Changes to environmental taxes have already been presented earlier and the EC has already recognized that this part of the indicator has been achieved.

After evaluating the additional information provided by Lithuania on the actions taken regarding the indicator 142 “Proposals prepared on the basis of a detailed analysis to be submitted to the Seimas regarding the waiver of tax benefits or special taxation regimes”, the EC considers the indicator to have reached 50%. In total, after deducting a part of the already paid advance to Lithuania additionally for these 2 indicators in May. 14.882 million will be paid out. amount of euros.

Lithuania EC byeprovided analysis of tax benefits and special tax regimes with arguments for which individual tax benefits are not waived. In implementing the above-mentioned indicator, the Government submitted to the Seimas draft amendments to the Law on Profit Tax, the Law on Personal Income Tax, the Law on Excise Duty and the Law on Real Estate Tax, which propose to waive various tax benefits. These changes, in Lithuania’s assessment, undoubtedly significantly contribute to the achievement of the 142 indicator and fulfill Lithuania’s obligations stipulated in the “New Generation Lithuania” plan.

In total, the New Generation Plan foresees reforms and investment projects worth almost 2.3 billion. Euros under the subsidy plan and 1.55 billion Euros according to the loan plan.