Brussels, 22/08/2001 (Agence Europe) - During his visit to the countries applying for European Union membership, Belgian Finance Minister Didier Reynders said on Tuesday that "economic fundamentals are good in Lithuania, despite the economic downturn the country has known over the past two years because of the Russian crisis". "We are faced with a situation that meets the Maastricht criteria: a low rate of inflation, economic growth of 4% and a low public deficit", explained Mr Reynders. He stressed, however, that the per capita income remains relatively low, at 30% of the European average, and that the rate of unemployment is high at over 15%.
The Lithuanian Finance Minister, Dalia Grybauskaite, pointed out that she hoped her country would close three more chapters (out of a total of 29) in its negotiations with a view to joining the EU: financial control, taxation and customs duties. Lithuania, however, called for longer transitional periods concerning the introduction of excise duties on cigarettes and petrol, as the country "fears smuggling will appear from neighbouring countries". Lithuania's request to obtain longer transitional periods could be foreseeable for tobacco excise, but less for petrol, said the Belgian minister.
After a meeting between Mr Reynders and the governor of the Lithuanian national bank, Reinolbijus Sharkinos, the latter said that the litas (currently anchored to the dollar) would be linked to the euro as of 2 February 2002. The rate of exchange will be fixed at that date on the basis of the rate fixed by the European Central Bank (ECB).
Discussions were tougher on the question of closing the second block of the Ignalina nuclear power plant, which is one of the conditions set by the EU for allowing the country to enter the EU. The latter is proposing closure of the block for end 2009, but Lithuania is opposed to this until modernisation of its other energy sources and until it has found alternative energy sources.
Lithuania has already received EUR 43 million from the Nuclear Safety Account, managed by the EBRD (European Bank for Reconstruction and Development) with a view to taking the security measures necessary for dismantling the power station. It is planned that the first part of the Ignalina plant will be stopped in 2005.