The platform of the New Union (Social Liberals), a party established in 1998, is excessively detailed in some areas, while too abstract in others. The platform may be characterised as rather incoherent. Proclamations of the Social Liberals are diverse and are often described as populist. The party's voter appeal rests mostly on the popularity of its leader, Artūras Paulauskas, and public discontent with the current ruling power. The New Union advocates a socially-oriented market economy.

The main objectives of the electoral platform

Privatisation. The New Union advocates privatisation and recognises the need to improve privatisation procedures. The programme stipulates retention of state control in "natural" monopolies and increased reliance on the stock exchange in privatising other state assets, without granting privileges to foreign investors.

Monetary policy. The New Union is in favour of the current course of the monetary policy but promises to compensate exporters for losses incurred due to unfavourable exchange rates.

Taxation and state finances. Taxes are seen as a regulatory tool. Increased reliance on direct taxation is advocated through differentiation of value added tax on food products, technologies, exports, children goods, and the purchase of residential property. The need to simply the tax code is recognised. Programme budgeting is seen as the underlying principle of budget formation. The party proposes to privatise and commercialise certain state functions and to reduce excessive government liabilities. The limit on fiscal deficit is set at 3 percent of GDP.

Social safety. The programme stipulates the expansion of the pension system, with private pension funds operating alongside mandatory social insurance. It is pledged to increase social benefits and to preserve compensations at the current level.

Agriculture. Protection, regulation and support of the local market are favoured. A centralised system for purchasing agricultural output is envisaged. Subsidies are proposed as payments per hectare of cultivated land, cattle, etc.

Business conditions. The New Union advocates the removal of bureaucratic barriers to business activity. The improvement of the business climate is also related to tax breaks and corporate welfare programme for selected business categories. The party promotes greater opportunities for mutual agreement between employers and employees but stipulates the creation of a regulated labour market system.

Foreign policy. The Union upholds the continuity of Lithuania's foreign policy and membership in NATO. However, the party criticises the high level of defence spending, which is set by law at two percent of GDP, and proposes reducing it in favour of education and healthcare.

Policy implications for the business environment and investment climate

A budget deficit and state debt are likely to mount, which may negatively affect the country's international credit rating. Privatisation will be carried out in order to generate government resources and to attract capital. The pace of privatisation will slow down. The situation in monopoly areas will remain stagnant, but privatisation may be resumed in a year or so. Value added tax breaks will further complicate the tax system. Tax collection will deteriorate, which (along with growing budget expenditures) is likely to lead to an increase in direct taxation and introduction of progressive income taxes. There is much likelihood that business conditions will be improved in certain areas, but no watershed will be reached in business deregulation. Corporate welfare programmes are likely to expand, favouring selected branches or enterprises. Foreign policy will be continued, but integration processes may slow down due to incompatibility of certain domestic policies with integration requirements.