The recently concluded spring session of the Seimas was full of contrasts, and the legislation passed by Parliament leaves a mixed impression. On the one hand, there were forward-thinking decisions aimed at modernizing and strengthening our economy. On the other, there were changes that could wipe out all positive progress in one stroke.

There is certainly room to criticize politicians, but let’s be fair: there are also reasons to be optimistic. The Seimas decision regarding the so-called “Investment Highway” is definitely the right one. This initiative, which opens the door to large-scale investments and enables them to become established in Lithuania more quickly, is exactly what our economy needs. It’s a message to the world: “Come and build here – in Lithuania.” Of course, we can only hope that the initiative won’t stop at the law itself and will be implemented effectively.

Positive Signals in Unfavorable Conditions

Given concerning trends, such invitations are vital at this moment. “Invest Lithuania” has just reported that amid declining foreign direct investment (FDI) flows across Europe, the first half of 2025 also saw a drop in Lithuania. Only 13 projects were attracted, compared to 22 during the same period last year.

The number of planned new jobs has also halved—from 1,200 last year to 661 this year. The capital investment in long-term assets this year is only €15 million, which is nearly 16 times less than in previous years, when it reached €239 million. To reverse this trend and win back investors who are now starting to bypass Lithuania, decisions made by the government, political stability, and the legal environment become critical factors.

From this perspective, the Seimas’ amendments to the Law on Joint Stock Companies are also significant. These changes are expected to ease business conditions considerably, remove bureaucratic obstacles, and allow businesses to operate more freely. These steps show that we can and do make decisions that directly strengthen the country’s competitiveness and appeal to international investors.

The allocation of additional funds to the Defense Fund is not only a pragmatic response to geopolitical challenges but also an investment in Lithuania’s technology sector. The growth of the defense industry can become a driver of economic development, and increasing funding sends a clear signal that Lithuania is a safe place to invest.

At Risk of Losing the Wheels

However, the tax reform decisions appear to be a step backward in the fight for foreign investment. While neighboring countries are actively attracting international companies that create well-paid, high-skilled jobs, Lithuania proposes to tax them more heavily. What’s the point of building an investment highway if, at the same time, you install speed bumps and adopt policies that discourage investors?

Another worrying development is the initiative to ban co-payments for healthcare services. Although further decisions on this matter have been postponed until autumn, the fact that such ideas are seriously considered reveals a lack of understanding of market mechanisms and their impact on service quality. Do we really want the best healthcare services to be accessible only “through connections” or after months of waiting in line?

Lastly, criticism is not reserved only for individual decisions but also for the way they are made. The “bulldozer approach”—when projects with significant economic impact are pushed through without considering expert opinions and business community feedback—can set not just an undesirable but also a dangerous precedent.

Today, Lithuania is competing for investment not only regionally with Latvia, Estonia, or Poland. Business is global, so every ill-considered decision may mean that a new factory, IT center, or financial services hub ends up being built in another country.

During the spring session, we saw that the Seimas is capable of making bold, future-oriented decisions. But we also witnessed that there is still a lack of deeper insight into the long-term consequences of those decisions and, most importantly, a need for open and continuous dialogue with the public and the business community.

Our country has enormous potential, but we can only unlock it by acting thoughtfully, collaboratively, and with a clear vision for the future. Lithuania’s future depends on how well we manage to balance social responsibility with economic competitiveness. For now, we still need to find a better equilibrium.

Commentary by Vytautas Šilinskas, Executive Director of the “Investors’ Forum” Association