On the 12th September, Lithuanian Business Council invited politicians for the discussion on their political party programs and business needs. Rolandas Valiunas, Chairman of Investors’ Forum, presented business expectations for the political parties and expressed the sense of common political commitment to reject President’s veto for the new labor code, which is one of the main instrument to increase the country’s competitiveness and job creation.

“Liberalization of labor relations is both on the power and opposition parties’ agenda. Surely, it will be one the most important decisions of the Seimas for the upcoming term, because it can stimulate investment, growth and job creation or return the country in the last century. I hope that, by maintaining Labour Code which is adopted this June, we will send a clear signal to the international community that Lithuania is ready to compete for investment”, R.Valiunas says.

The need of more flexible labor regulation for Lithuania has drawn the attention of both the European Commission and investors in Lithuania. According to Investors’ Forum Lithuanian investors’ confidence index survey, 85 percent of investors indicate the labor regulation as a priority area to be changed. 

According The World Economic Forum’s Global Competitiveness Index, Lithuania is rated 36th out of 140 countries. However, according to the labor market efficiency it is in 53^rd position, according to the labor market flexibility it is in 102^nd, for redundancy costs – 109^th and according the exemption conditions – in 120^th place. The ability to retain talents is estimated in 108^th and to attract them in 116^th positions. Estonia and Latvia, which have previously reformed labor regulations, have significant higher positions according the same criteria