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Lithuania Poised for New Government Under Likely Prime Minister Ingrida Šimonytė
What Happened?
On June 13, 2024, the Lithuanian Parliament approved a coalition agreement paving the way for Ingrida Šimonytė to likely become the country’s next Prime Minister. This follows weeks of negotiations after the Homeland Union - Lithuanian Christian Democrats (TS-LKD) secured the most seats in the recent parliamentary elections. the coalition will be comprised of TS-LKD, the Liberal Movement, and the Freedom Party.
The Coalition Agreement: Key Priorities
The coalition agreement outlines several key priorities for the new government.Thes include strengthening national security, particularly in light of the ongoing war in Ukraine and Russia’s aggressive posture; accelerating economic reforms to improve competitiveness and attract foreign investment; and continuing to support Ukraine. A significant focus will also be placed on improving the efficiency of the public sector and tackling corruption.
Specifically, the agreement details plans for:
- Increasing defense spending to 3% of GDP by 2026, exceeding NATO’s 2% target.
- Implementing tax reforms aimed at simplifying the tax system and reducing the tax burden on businesses.
- Investing in renewable energy sources and reducing reliance on fossil fuels.
- Strengthening the rule of law and combating corruption through increased openness and accountability.
Political Landscape and challenges
Ingrida Šimonytė previously served as Prime Minister from 2020 to 2023, leading a center-right government that focused on tackling the COVID-19 pandemic and strengthening ties with the West. Her return to power comes at a critical juncture for Lithuania, as the country faces numerous challenges, including rising inflation, energy security concerns, and the ongoing threat from Russia.
The new coalition holds a cozy majority in the 141-seat Parliament, with 74 seats. However, maintaining unity within the coalition will be crucial for the government’s success. The Liberal Movement and the Freedom Party represent different ideological strands within the center-right spectrum, and potential disagreements over policy priorities could arise.
Election Results Recap
The parliamentary elections held in October 2023 saw the Homeland Union – Lithuanian Christian Democrats (TS-LKD) emerge as the largest party, winning 39 seats. The Liberal movement secured 13 seats, while the Freedom Party won 11. The Farmers and Greens Union, which previously held a significant number of seats, suffered a major defeat, losing much of its support.
| Party | Seats |
|---|---|
| Homeland Union – Lithuanian Christian Democrats (TS-LKD) | 39 |
| Liberal Movement | 13 |
| Freedom Party | 11 |
| Farmers and Greens Union | 5 |
| Other Parties | 73 |
