The next four years will see political stability and state security as pivotal elements for businesses operating and investing in Lithuania. This sentiment was echoed by the members of the Investors’ Forum, an association comprising the largest and most dynamic investors in the Lithuanian economy, during a meeting with representatives of the nation’s parliamentary parties. The attending politicians underscored that one of the state’s paramount priorities is to ensure sustained economic growth and to foster a reliable and secure environment for business creation and development.
The debate, orchestrated by the Association, featured prominent figures such as the Speaker of the Seimas, Viktorija Čmilytė-Nielsen, the Minister of Economy and Innovation, Aušrinė Armonaitė, Minister of Finance Gintarė Skaistė and parliamentarians Lukas Savickas and Gintautas Paluckas, alongside lawyer and politician Ignas Vėgėlė. In discussing the state’s priorities for the forthcoming four years, the panellists highlighted key areas including investment in defence, the creation of conditions conducive to economic growth, enhancing public sector efficiency, reducing bureaucracy, bolstering energy independence, and fostering a competitive business environment.
“Lack of political stability and often chaotic changes in legislation have so far been the factors often cited by representatives of foreign capital companies as among the most damaging to Lithuania’s attractiveness for investment. The fact that representatives of many major political parties agree that it is necessary to move away from hasty, unreasonable and chaotic decisions is good news for businesses operating in Lithuania or planning to invest here. However, this does not mean that the future government will not need to take decisive steps to improve the business environment. An effective tax and education system, talent attraction and migration policy, improving Lithuania’s accessibility – these and many other areas will continue to require fundamental changes to maintain the country’s international competitiveness,” said Rūta Skyrienė, Executive Director of Investors’ Forum.
She points out that this summer Investors’ Forum has prepared and submitted to the Government and political parties a package of proposals on various public policy areas that affect the business environment in Lithuania. The proposals, developed by the Association’s working groups and members and endorsed by the Board of Directors, are aimed at creating an investment climate in Lithuania that is favourable not only to companies already operating in the country, but also to those planning to invest. The proposals in the package cover areas such as tax policy, talent attraction and labour relations, health policy, sustainability, energy, transport and its decarbonisation, and the development of the fintech sector.
To enhance the business climate and bolster the nation’s appeal to international investors, the Investors’ Forum suggests several key measures. These include reinstating the previous 27% tax rate on personal income exceeding the Sodra threshold, broadening the corporate income tax exemption for investment projects, and instituting a universal real estate tax. To further curtail the shadow economy, the business community advocates for the elimination of non-fiscal vouchers in the catering sector and the consideration of mandatory non-cash payments in all retail outlets.
To foster greater flexibility in employment relations, the Association recommends introducing a six-month probationary period for managerial staff in Lithuania, thereby facilitating the recruitment and retention of talent. Additionally, it is proposed that non-compete compensation should be payable to employees only if the non-compete clause remains in effect post-employment.
The comprehensive proposals from the Investors’ Forum can be found on the Association’s website.