Analytics, EU – Baltic States, Financial Services, Lithuania, Wages

Commenting on the article in The Economist which says that Lithuania could become uncompetitive following the euro adoption because labour productivity here accounts for only a third of the euro zone average and wages are growing faster than productivity, the prime minister says that in Lithuania, unlike in some neighbouring countries, wages and pension during the economic recession were reduced, therefore, the restoration of them to the pre-crisis level is what is causing the growth effect.

Butkevicius says that debts in southern European countries grew both in the public and private sectors as money there was borrowed to increase wages, meanwhile, the situation in Lithuania currently is completely different.

"We should note that debts in the private sector have been decreasing gradually. Even if they stayed at the same level it would not be something bad. Meanwhile, income derived from work, real income received through dividends has been rising little by little. It shows that we have chosen the right track and I am very pleased with it. I would like to calm down all the pessimists," the PM said on the national radio Tuesday morning.