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Previous issues of THE FREE MARKET are available at LFMI.


February - May, 1999
"The Free Market", 1999 No. 3

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

LFMI came out in opposition to the government's plans to raise the minimum wage. LFMI launched an extensive campaign to explain deleterious effects of a mandatory minimum wage on employment, the economy, and people's welfare. A press release from LFMI was disseminated by the BNS news agency, April 1. Remigijus Šimašius appeared on the Znad Wilii radio April 27 and the Lithuanian Radio, April 30. He contributed a comprehensive article to the Kauno Diena daily of May 6 and was cited in the Veidas journal of April 8. In June the government postponed his plans to raise the minimum wage.

LFMI's Vice President Ugnius Trumpa spoke about business deregulation on the Lithuanian Radio, March 19. He delivered a paper on business deregulation to a business forum in Kaunas on April 14, which was featured in the Kauno Diena of April 15. An interview with Elena Leontjeva on LFMI's efforts to promote business deregulation was published in the Šiaulių naujienos paper of April 13.

Ugnius Trumpa commented on the project of amendments to labour legislation, submitted by the Economic Ministry to the Tripartite Council, Respublika May 12. He commented on licencing in the Atgimimas weekly of April 30.

Remigijus Šimašius participated in an international conference on small and medium sized enterprise in Central and Eastern Europe, Sofia February 17 - 18. His paper "Let a Free Market Work: the Need for Political and Legal Reform" provoked intense discussions and was cited in the concluding remarks of the conference.

The BNS news agency disseminated April 29 a press release from LFMI on the consequences of the "fierce action" conducted by government agencies against private businesses.

LFMI criticised recent amendments to the Law on Tobacco Control in a press release of May 10. LFMI argued that they infringe on the interests of producers and consumers and independent media.

LFMI staged a seminar "Exposing Barriers to Business Growth" at the Litexpo exhibition center May 12 during an exhibition "Business Contacts and Management." LFMI's policy analysts spoke about the corporation tax, employment regulations, pension funds, and the LFMI's macroeconomic survey.

Remigijus Šimašius participated in a discussion on competition at the Achema company, April 1999.

Fiscal Policy

Rūta Vainienė critised the government's plans to impose a real estate tax on individuals in the Lietuvos Rytas daily of March 25 and April 12. An interview with Elena Leontjeva appeared in the Respublika daily, May 10.

LFMI criticised the recent increase in import duties in a press release, disseminated by the BNS news agency and published by the Respublika daily, April 4. LFMI's Public Relations Coordinator Aras Lukšas was cited in the Lietuvos Aidas daily, May 7. Remigius Šimašius commented on the government's plans to impose an import duty on oil in the Lietuvos Rytas.

A press release from LFMI criticising the newly introduced saving bonds was disseminated by the BNS and ELTA news agencies and published by Respublika and Verslo Žinios, April 2. The LFMI's position was featured in The Baltic Times of April 15.

Rūta Vainienė commented on the Economic Ministry's 1998 economic overview regarding the tax burden in the Verslo Žinios paper of April 8. An interview with Rūta Vainienė on the new income tax laws was published in the Esu journal of April 27.

On May 16 LFMI commemorated the Tax Freedom Day, the day when the average taxpayer stops paying off the demands of the state and begins to enjoy the full benefit of his labour. In a press release, LFMI noted that the Tax Freedom Day has moved from April 13 in 1993 to May 16 this year. Rūta Vainienė participated in a press conference organised by the Lithuanian Liberal Union. She also appeared on TV3 news, May 16, and the Lithuanian Radio, May 17. Remigijus Šimašius and Guoda Steponavičienė were interviewed on Radiocentras and the Lithuanain Radio.

Rūta Vainienė presented LFMI's policy paper on investment computation to the Lithuanian Industrialists Confederation, March 9. The confederation approved of LFMI's position.

Elena Leontjeva was interviewed for the Mokesčių Žinios paper about tax reform.

Social Policy

LFMI conducted a comprehensive research on the quality, structure and development of social policy in Lithuania, in September - December 1998. The analysis and policy proposals were presented to a seminar at the Ministry of Social Security and Labour, February 9. The research was aimed at exploring the existing measures of social policy, assessing their effectiveness and defining future priorities in social policy. The analysis focused on the pension system, labour policy, family support, and social insurance benefits. The seminar was reported on in the business Verslo Žinios paper of February 10 and broadcast on the Lithuanian and LNK television, the Lithuanian Radio and M1 Plius radio.

LFMI's Policy Analyst Audronė Morkūnienė spoke about the introduction of pension funds on the Lithuanian Radio, March 19, and was published in the Respublika daily, May 17. Her opinion on public pensions and the existing social insurance laws was featured in the Verslo Žinios paper of May 10 and the Esu journal of April 7.

Audronė Morkūnienė participated in a sitting of the parliamentary Economic Committee on the Law on State Social Insurance, February 10, debating social insurance for sole proprietors and farmers.