Baltic States – CIS, Energy, EU – Baltic States, Financial Services, Investments, Legislation, Lithuania

Donald Tusk and Dalia Grybauskaite. Vilnius, 14.01.2015. Photo: lrp.lt

According to President Grybauskaite, the European Council plays a significant role in mobilizing all EU member-states for common tasks and response to emerging geopolitical and economic challenges, the presidential press service said.

"Today Europe faces new threats which demand coordinated and united response of all EU member-states. Therefore, we must together search for solutions to ensure peace and economic welfare for our people," the president said.

Grybauskaite and Tusk exchanged views on the situation in Ukraine. Grybauskaite underlined that the EU must continue with concrete support for Ukrainian reforms and organize donors' conference for Ukraine in the near future.

Measures to boost the EU's economic grow and competitiveness were also discussed at the meeting. It is important to implement the European Commission's Investment Plan which will help attract around EUR 315 billion of private investments for strategic EU projects.

The Lithuanian head of state noted that the creation of the energy union would also contribute to increasing the EU competitiveness. It is essential to fully exploit the advantages of the effectively functioning internal energy market, develop energy interconnections, and step up energy security of the EU. The implementation of all these measures will provide the EU with more levers in negotiations with external suppliers of energy resources.

The fact that Lithuania joined the eurozone testifies the attractiveness of the euro, said former prime minister of Poland, now President of the European Council Donald Tusk on Wednesday in Vilnius. This is the first visit to Lithuania for Tusk in his new capacity.

"My warmest congratulations to all Lithuanians and Lithuania which became the 19th member of the eurozone. This was a historic moment for your country, just as it was an extremely important moment to the European Union. It yet again demonstrates the attractiveness and reliability of the common currency," the guest said.

The EC head said that accession to the euro area brings many advantages to people, businesses and the entire state: the euro will attract new investments and help companies grow, it will ensure better security and greater stability, while making people's life easier when the EU citizens travel or shop online.

Tusk also revealed that he had always liked the Vytis (the Chaser, an armour-clad knight on horseback holding a sword and shield – Elta) which has been depicted on Lithuanian coins for centuries, now found on the new euro coins of Lithuania too. "Keeping up a tradition dating from the 14th century is also a tradition close to my heart," he stressed.

According to Tusk, by joining the eurozone club, Lithuania joined the kind of currency which is much more resilient today than compared to the situation a few years ago.

"The euro zone that you have joined is today much more resilient than only a few years ago. Its architecture has been improved. The European Stability Mechanism is a credible fire-wall in difficult times. The Banking Union has helped restore confidence in our financial institutions. And we have improved the economic governance. But there is still more to be done. And it is our responsibility to complete the Economic and Monetary Union.

The next step, as agreed in the European Council in December, is to improve the coordination of euro countries' economic policies. One main lesson from the crisis has been how much the economic policies of one country affect those of the other countries. I have discussed this with Prime Minister Butkevicius. And this will also feature high on the agenda of the February European Council," Tusk said.

Tusk also added that the reforms implemented by Lithuania are truly impressive. "Lithuania is itself inspiration for Europe in the way that you have bounced back from the financial crisis. You prove that it is possible, and that it is possible even in a short period of time. Your record on reforms is really impressive. And you joining the euro is the proof of that," the president of the European Council said.

Tusk stressed that the conflict in Ukraine and relations with Russia this year will remain among top foreign policy priorities for the European Union (EU). He also said that he understands why Lithuania finds these issues more important to it than many other EU member-states.

"As I have stressed it many times in the past, the EU's foreign policy is not directed against Russia. This purpose of our policy is to support our eastern neighbours, help them become more democratic and prosperous countries," said Tusk and added that long-term piece in Ukraine is impossible without respect for peace and borders of European countries.

President Dalia Grybauskaite summed up the meeting saying that she and the president of the EC share the same position on many issues, which allows expecting successful further cooperation on the European level.

"So far, our interests are very close and concurrent; we share the same opinions on the key strategic issues both in the fields of energy and military security, as well as in fight against terrorism. I expect our cooperation with the EC and its president to be beneficial and efficient to Lithuania," she said.