News

Friday, February 8, Brussels - European leaders have agreed on the next multiannual EU budget for 2014-2020. And even though the total EU budget has been significantly reduced, Lithuania has managed to negotiate an increase of four billion litas in its financial package compared to the 2007-2013 framework. The overall level of EU financial support for Lithuania will increase by almost 10 percent, amounting to a total of 44.5 billion litas.

After the talks, President Dalia Grybauskaitė underlined that given such difficult conditions in Europe, the best possible result had been achieved for all member states.

"Taking into account the cuts in the overall EU budget and the difficulties faced by Europe, it is the best possible result that Lithuania might have expected. More than 44 billion litas for a seven year period is a huge injection into the Lithuanian economy - which offers new possibilities to the people of our country," the President said.

For the first time in the recent decades, the EU budget has been decreased so significantly - by as much as 33 billion euros.

Even with such severe cuts introduced to the EU budget, Lithuania has managed to negotiate an increase of almost one billion litas in structural support compared to the pervious multiannual financial framework. Lithuania is going to receive a sum of more than 25 billion litas in structural allocations in current prices.

Support to the agricultural sector - for rural development and direct payments - will amount to 17.2 billion litas. Direct payments to Lithuanian farmers will go up by 70 percent, reaching 196 euros (676 litas) per hectare by 2020.

Lithuania has also succeeded not to have the financing terms for decommissioning the Ignalina nuclear power plant restricted. The closure of Ignalina will be funded as provided for in Lithuania's Accession Treaty. In current prices, 1.5 billion litas (450 million euros) are allocated for Ignalina's decommissioning in 2014-2020, and 1.03 billion litas (300 million euros) of decommitted funds are carried over from the present financial period. In all, 750 million euros will be available to Lithuania for decommissioning works over the next seven years.

The multiannual EU budget also allocates 29 billion euros for "connecting Europe" - the Connecting Europe Facility to finance energy, transport and telecommunications projects. For Lithuania, it is a possibility to receive funding for key energy projects: electricity and gas interconnections.

The negotiated multiannual financial framework will yet have to get the European Parliament's consent.

Press Service of the President