Lithuania adopts a tri-partite national agreement to deal with economic downturn

This is a cut and paste from EIRO. You can read the full article here.

“The national agreement provides for measures aiming to control the government’s finances. This includes a commitment to reduce public administration expenses, recognition of the need for a slight temporary increase in taxes, including the rate of the social insurance contribution up to a maximum of 2%, and a further reduction in the number of civil servants by up to 10%. On the other hand, the national agreement contains an obligation not to reduce the basic amount of salaries for civil servants and budgetary employees.

The national agreement stipulates that the government shall plan a reduction of wages and social benefits, taking into account the crucial requirements raised by the trade unions – namely, that any reduction should be made on a solidarity basis, where the most vulnerable groups of society should be affected the least.

Furthermore, the agreement provides for a differentiated reduction in all pensions and other social benefits based on the fundamental principle that such benefits would be paid on time and that all beneficiaries would share the burden of benefit reduction on a solidarity basis. Again, the impact on the most vulnerable groups of society should be cushioned”

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