Lithuania

Abstract

The year 2012 marked a change in the government and revealed Lithuania’s improved economic performance. Social Democrats won the parliamentary election and formed a coalition left of the centre with Labour, Order and Justice and Electoral Action of Poles in Lithuania. The electorate supported the policies of economic austerity proposed by the former conservative government in the wake of the fi nancial crisis. Lithuania’s economic growth was among the highest in the EU. GDP and FDI grew, whereas infl ation and unemployment plummeted. However, increased public debt and high energy prices dogged political debates. Foreign policy remained traditionally anchored in the eastern neighbourhood, energy security and EU-transatlantic affairs. In regional terms, a Nordic-Baltic orientation was politically cherished and lukewarm relations with Poland appeared to warm up. The Baltic Sea Region is especially important for Lithuania in 2013, as the EU Strategy for the Baltic Sea Region is one out of four major priorities for the country’s upcoming EU presidency, starting 1 July 2013.