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February - March, 1999
"The Free Market", 1999 No. 2

To disseminate free market ideas and gain passage for policy proposals, LFMI's team members participate in, and testify before, cabinet meetings, parliamentary committee sittings, policy-drafting groups, non-governmental forums, and public events. The LFMI has cultivated a friendly relationship with mass media and is regarded as a source of valuable information and analysis for reporters. LFMI's policy analysts publish and comment extensively in periodicals. Advantages of live communication are exploited through appearances on radio and television. These tools have proved constructive in enriching public debates, making a profound impact on the legislative outcome and strengthening the democratic process.

Private Enterprise

In late 1998 LFMI conducted two opinion polls to elicit views of various segments of society and entrepreneurs about the business environment in Lithuania. On February 5 LFMI held a press conference to present the survey results. The event was featured in the Respublika, Lietuvos Rytas and Gazeta Wilenska dailies of February 5. It was highlighted in The Baltic Times of February 11. Elena Leontjeva was cited in the business Verslo Žinios paper of February 2. Reports from the press conference were broadcasted on the Lithuanian Radio, M1 Plius radio, the Lithuanian, LNK, TV3 and Vilnius television. The Lithuanian Radio broadcast an interview with Elena Leontjeva.

Elena Leontjeva was interviewed March 12 on the Lithuanian Radio about amendments to laws regulating business activity proposed by the President of Lithuania.

Ugnius Trumpa spoke about business regulations on the Lithuanian Radio, March 19.

On February 17-18 Remigijus Šimašius attended a conference on small and medium-sized enterprise in Sofia, Bulgaria. Remigijus delivered to the conference a paper "Letting the Free Market Work: XXXXX."

Elena Leontjeva was cited on competition policy in the Veidas journal of March 25, stressing that government involvement in businesss affairs creates the biggest distortions to the competitive environment. The Respublika daily of March 29 published an article "Who is Afraid of Competition" authored by Remigijus Šimašius.

On March 4 Remigijus Šimašius spoke about antidumping legislation on M1 Plius radio. He commented on the issue in the Lietuvos aidas daily of February 23.

Fiscal Policy

Guoda Steponavičienė commented on the increase in excise duties and its effect on inflation in Lietuvos Rytas of February 9.

Remigijus Šimašius criticised the use of the government's reserve fund in the February 4 Veidas journal.

Rūta Vainienė commented on projected tax hikes in Lietuvos Rytas of February 15 and Veidas of February 25. Rūta was cited about the root causes of the recent shortfall in budgetary revenues and criticised the government's attempts to bolster tax collection by launching "fierce actions."

On March 5 the Respublika daily publishes an article by Rūta Vainienė, addressing the difficulties companies face as they compute corporate income tax. On March 8 Rūta testified before the parliamentary Economic Committee on planned amendments to personal income tax.

On March 8 Rūta Vainienė presented LFMI's position on the introduction of mandatory vehicle insurance to the Economic and Finance Committee of the Lithuanain Industrialiats Confederation. The Committee also discussed LFMI's comments on the procedures for investment computation. On March 9 the Board of the Industrialists Confederation approved of LFMI's position on investment computation procedures.

Rūta Vainienė commented on the introduction of the real estate tax for natural persons in the Panorama news programme of the Lithuanian Television, March 26. She was cited on the issue in the Lietuvos Rytas daily of March 25.

In March LFMI approached the Finance Ministry and the State Tax Inspectorate urging to remove contradictions in the State Tax Inspectorate's released interpretation of investment computation procedures which states that an increase in the value of assets by renovation costs is not considered to be investment. This statement contradicts Article 21 of the corporate income tax legislation and will thus disturb business activity, thwart investment decisions made and force companies to recalculate their financial reports.

An interview with Elena Leontjeva about the need to reform the tax system was published in the tax paper Mokesčių Žinios of March 15.

Social Security

Audronė Morkūnienė commented on the financial situation of the State Social Insurance Fund and the introduction of private pension funds in the February 9 Respublika. Audronė participated March 19 in a dicussion show Paskutinė Kryžkelė on the Lithuanian Radio and Television, discussing social security and privatisation prospects.

Audronė Morkūnienė testified February 10 before the parliamentary Economic Committee on planned amendments to the Law on State Social Insurance concerning social insurance conditions for sole proprietors and farmers.

Guoda Steponavičienė was cited about the defects of compensations for heating in Lietuvos Rytas of March 1. Her opinion was also featured in in the Esu journal No 6, 1999.

Other Economic Policy Areas

Remigijus Šimašius was cited about the problems confronting the energy sector in the February 1 Lietuvos Rytas.

Rūta Vainienė commneted on the Lithuanian Telecom's increase in telephone tariffs in Kauno Diena of March 4.