The programme of the Peasants Party may be characterised by its main slogan: "Strong agriculture - strong Lithuania." The biggest importance is attached to agricultural policy. Other policy areas are described in a fragmentary manner and from the point of view of farmers and rural dwellers.

The main objectives of the electoral platform

Privatisation. Privatisation issues are not mentioned directly in the programme. It is likely that the privatisation process would not be halted, especially because of the need to generate revenues for the implementation of proposed assistance programmes for the agricultural sector and rural areas.

Foreign investments. Investment and foreign policy are not discussed in the programme. General provisions suggest that investment in industrial enterprises or into the creation of new production and service facilities would not be halted. However, in rural areas priority would be given to the manufacturing and sale of local production

Taxation. Proposals include a progressive tax on annual income exceeding 200,000 litas, the abolition of value added tax on food products and services rendered to employees of agricultural companies, an increase in the tax-exempt minimum wage, a reduction of the excise duty on diesel fuel used in agriculture, the abolition of taxes administrative costs of which exceed collected revenues; and setting a limit on taxes, state levies and all mandatory payments with respect to GDP.

Business conditions. Business conditions are contemplated only with regard to employees and rural dwellers.

Agricultural policy. The Party proposes an intensive interventionist policy based on direct and indirect measures of state regulation and aid: protection of the local market, direct payments, regulation of the volume of production, price controls, interventions, tax concessions, etc. It is proposed to allocate 10 per cent of the national budget to the agricultural sector. The party advocates the completion of land restitution by 2002 and allowing ownership rights of agricultural land by Lithuanian legal entities. The Party recommends debating the issue of selling agricultural land to foreign citizens only after the agricultural reform has been completed, not earlier than 2008.

Monetary policy. The Party stresses the need to stimulate economic recovery by monetary measures (by restoring the central bank's classical functions).

Budgetary policy. Budget formation or the size of the budget is not discussed. Judging from the proposed measures of agricultural support, a budget deficit and a complicated system of budget administration are in store.

Social policy. The Peasants Party advocate a reform of the social insurance system, favourable terms of farmers' insurance, state support for large and young families and families that buy residential property. According to the platform, conditions should be created for insurance in private pension funds. Social services should be decentralised and children, the homeless, elderly people, drug addicts, released prisoners and the like should be supported by various means. Education and science are seen as priority areas.

Foreign policy. With regard to integration into the European Union, the Party stresses the need to protect farmers' interests, most likely with the intention of negotiating for the largest possible quotas for agricultural output and for receiving direct support from the EU. They state that the EU acquis communautaire should be adopted gradually, taking into consideration the effects of its implementation on the country's interests. The Party favours the acceleration of integration into NATO, but at the same time states that national defence spending should not exceed expenditures on education and healthcare.

Policy Implications

An increase in the tax burden and a budget deficit are likely as a result of the implementation of envisaged aid programmes. Privatisation will be continued but privatisation methods will not be improved. Privatisations deals will entail heavy social obligations for buyers. Conditions for foreign investors should not deteriorate; however, there is a possibility that they will be discriminated against through increased support for local enterprises, especially in the food sector. An overall result of such policies would be a temporary upturn of agriculture at the expense of the rest of the country.