Lithuania should increase public spending on healthcare and public services, also do more to reduce regional disparities and implement a tax reform, the European Commission says in its recommendation.
The Commission published its report on economic and social challenges and recommendations for Lithuania on Wednesday.
“Lithuania stands out in the European Union for its particularly low taxes on real estate, capital, and vehicles. In turn, low budget revenues and insufficient funding have a negative impact on the quality of public services,” the recommendations read.
According to the Commission, inadequate funding means that the social security system is less effective in protecting people from poverty, healthcare is less accessible, there is a shortage of doctors and nurses, while the level of unmet need for medical services and patient premiums in Lithuania are among the highest in the EU.
The Commission urges Lithuania to pay more attention to the delays in reforms, in particular the implementation of tax reform.
According to the EC, under the latest amendment to Lithuania’s economic recovery plan, Lithuania could receive 3.8 billion euros in EU subsidies and loans by the end of 2026.
“Rapid implementation of the planned reforms and investments is essential to fully benefit from the funds and to achieve the planned objectives,” the Commission said.
It also calls on Lithuania to ensure adequate funding for health, social protection and general public services.
The Commission also draws attention to the low level of Lithuanian pensions and recommends raising them while ensuring the sustainability of the pension system.
“The level of old-age pensions in Lithuania is one of the lowest in the EU compared to people’s pre-retirement incomes, and the average pension in 2023 has remained below the at-risk-of-poverty level, despite increases in recent years,” the Commission says.
The EC also calls on Lithuania to reduce regional disparities, promote cooperation between municipalities in providing public services and improve coordination of public transport systems.
“The public transport system in Lithuania remains fragmented due to a lack of coordination, with a lack of transport links and basic services for passengers, which results in the lowest use of public transport in the EU and further hampers access to public services and jobs, especially in rural and remote areas,” says the EC.
The Commission proposes that Lithuania strengthen primary health care and expand disease prevention.
“Lithuania’s health system is also still not sufficiently based on early diagnosis and primary care, with insufficient coverage of and limited access to prevention programmes, disease testing, and programmes to promote healthy lifestyles, which results in high mortality rates from preventable and curable diseases,” the recommendation says.
Published annually for all EU member states, these documents are an analytical aid and an instrument for coordinating economic and social policies, which the Commission says contribute to achieving more sustainable, smart and inclusive growth in all EU countries.
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