Economics, Education and Science, EU – Baltic States, Financial Services, Legislation, Lithuania, Markets and Companies

Angel Gurria and Algirdas Butkevicius. Vilnius, 15.03.2016. Photo: lrv.lt

"Perhaps Lithuania does not need 43 different companies to deal with forests. Perhaps there are too many, perhaps there is room for consolidation," Angel Gurria said at a news conference in Vilnius on Tuesday.

"This has to do with state-owned enterprises in general. We are not preaching privatization. We are saying the important thing about state-owned enterprises is the operation. That means efficiency, transparency, integrity, paying taxes, paying dividends, paying the market rate of interest. (It is important) who are on the board of directors," he said.

According to the OECD head, problems that Lithuania needs to address include reducing corruption, making public procurement procedures more transparent and improving the efficiency of the governance of state-owned enterprise.

"Productivity in Lithuania is only a fragment of the productivity in average OECD countries. So, what is going to be the key to keeping growth in the medium and long-term is productivity," Gurria said.

Prime Minister Algirdas Butkevicius said at the same news conference that the government was ready to implement the OECD's latest recommendations on how to improve Lithuania's fiscal policies, tax administration, education and healthcare.

According to Butkevicius, the government agrees to the OECD's conclusions that Lithuania has to adjust tax policies to address challenges related to population ageing and potential macroeconomic shocks.

"The government gives high priority of stimulating economic growth and productivity and increasing social inclusion, while maintaining a sustainable fiscal policy," he said at the same news conference.