Lithuania’s gross domestic product grew 0.5 percent in the fourth quarter compared to the third in 2009, a larger growth than the EU average of 0.1 percent growth, the EU statistics agency Eurostat reported. The yearly result for Lithuania, however, shows a steep decline of GDP of 13.2 percent.

The annual GDP in the EU fell by 2.3 percent on average in 2009, and the euro zone saw its economy slide 2.1 percent.

Lithuania‘s northern neighbour Estonia had the fastest growth of economy in EU with 2.6 percent. In Poland, GDP growth reached 1.2 percent.

The Latvian economy has faced the steepest decline in the same period – the country’s economy declined by another 3.2 percent, according to Eurostat.

The three opposition parties of Social Democrats, Labour and Order and Justice have stated that their programme include suggestions to reduce taxes, fight unemployment, increase the state investment in infrastructure projects, value-added tax privileges, revision of excise duty for fuel and alcohol and adoption of law on bankruptcy of physical entities.

Nevertheless the Prime Minister Andrius Kubilius criticised the programme stating that it offers nothing new, apart the VAT taxes reduction and the changes of excise duty for fuel and alcohol.  The Prime Minister said to the reporters, “The alternative programme announced by the opposition Broad Coalition today is for the greater extend does not differ from the Government’s programme, with efforts to cover the absence of new practical proposals with anti-governmental rhetoric.”

The three parties have also invited the other parliamentary groups to join the opposition to support their programme.  The opposition, which now has 53 members, invited the Centre and Liberal Union with its seven numbers, which belongs to the ruling coalition.  Yesterday, the opposition also announced that another large political group is considering joining the opposition.  It is very likely that they meant the Christian political group with twelve parliamentarians.  Lithuanian media also informed that Conservative MP Ziemelis is considering joining the Christian group also.

The opposition leaders could have been encouraged to expect the President’s support after the parliamentary political groups leaders meet with the President on 8 March.  Apparently, during the meeting the President said that if the ruling coalition is not ready to work it should be replaced with other coalition.

Algirdas Butkevicius, the Chairperson of the Social Democrats said to reporters after this meeting, “The president said that at least for now she supports the current government, but is ready to talk with other factions if the government fails to tackle issues and adopt necessary decisions”.

However, the President’s Spokesperson Linas Balsys clarified that the President did not express her support for neither political force.  Balsys said, “The president didn’t voice support to either the ruling bloc nor the opposition. The president is ready to cooperate with absolutely all of the Seimas’.

The ruling coalition, which currently has 71 MPs has signed an agreement with the Peasant Union party on 9 March.  The Peasants with its three MPs agreed not back ungrounded vote of non-confidence against the Prime Minister and the other Cabinet members.

In short, the Spring session is going to be hot.

‘It is kind of magic’ said Lithuania’s National Tennis team captain Remigijus Balžekas, after his team achieved a historical victory against the Brits in the Davis Cup tournament.  Lithuania’s victory 3 to 2 against the British National Tennis team, no doubt will be written in golden letters in Lithuania’s tennis history.  It is not doubt that the British Tennis will remember this day as a black Sunday.  Especially after the Brits lost against the Lithuanian ‘teenagers’ team, as the British media wrote.

Another great news is that the Fitch Ratings Agency raised Lithuania’s long-term foreign currency rating at BBB and its long-term local currency rating at BBB+.  The agency also It also affirmed Lithuania’s short-term foreign currency rating at F3 and the country ceiling at A.  Lithuania’s recent financial and economic stabilization was behind Fitch decision to raise the country’s ratings.

The Prime Minister Andrius Kubilius was pleased with the agency’s decision, which manifests that economy is on the right recovery track.  After the Government’s meeting on 8 March he said to reporters, “The agency highlighted that the key factor in ranking Lithuania is its fiscal deficit, which reached 9.1 pct of GDP in 2009. The deficit would have reached 17 pct of GDP if the government had not taken the necessary measures.”

MP Kubilius stated that the USA’s IT cooperation IBM is looking into establishing a research and development department in Lithuania.  The PM said during the Conservative party’s board meeting on 6 March, “Yesterday (5 March) we met with an IBM delegation, which plans to found a research and development department.”  Prime Minister Kubilius said that it is very likely that it might take up to a year for the IBM to start its operations in Lithuania.

Mr. Kubilius also convinced that his delegation’s trip to the US had a direct impact on the IBM’s decision.  Prime Minister said to his party colleagues, “It looks like we managed to persuade representatives of largest companies during meetings in the framework of the US visit that Lithuania is worthy of their investments.”

On 9 February the Irish budget carrier Ryanair’s CEO Micael O’Leary announced that his company is planning to open its first Central European aircraft base in Kaunas in May and invest in it 140 mln USD.

Barclays’ information technology centre in Vilnius which currently employs 280 employees is planning to expand to 400-500 people by the end of 2010m, Jim Ditmore, the chief information officer for Barclays’ global retail and commercial banking, promised on 5 March.Prime Minister’s Kubilius Cabinet stated that one of his first priorities is to attract the foreign investment into Lithuania.  It seems that it is working so far.

The Minister said to journalists, “I will be one of the participants who will give speeches. I also call for more people to participate. I’m going to try to gather my colleagues at the Ministry of European Union Affairs to join me. I know that more people are interested. It is important to attract more politicians to the event.”

Birgitta Ohlsson also criticized a controversial Law on the Protection of Minors against the Detrimental Effects of Public Information, which censors certain information as unacceptable for the country’s youth.  The Law came into effect on 1 March.  The Minister said, “I know that the word “homosexuality” was removed from the law but, at the same time, you are not allowed spread information about the same sex marriages, for example, and about other not traditional family values.  It is not beneficial for teenagers and the open society to apply the laws, which related to censorship in any way. This is not a correct way to proceed, you have to be open.”  She also added that this law is seriously damaging Lithuania’s image abroad.

The Swedish Minister thinks that in democracy and open society the homosexual minority should not excises any special rights, they should be given basic human rights.

Recently Lithuania was feasted with French pasta, so as if that ship or ships will ostensibly be sold to Russia without armament – like ferries, which could be used to transport the cows to the pastures on the islands. The function of these ships is indeed offensive operations from sea to the shore, and the fact if they will carry French or Russian helicopters or not is not a paramount issue. The paramount issues are the speed and offensive and airborne power, and even more important issue is the role of these ships as means for intimidation, for carrying out psychological warfare. It is an old Stalinist tradition for establishing „friendly relations“ by military intimidation (even though it is forbidden by international conventions).

When using these ships, Russia will more quickly recapture the Baltic and Black Seas, which since long time ago lawfully belonged to it, or will anew start its domination there. France seemingly approves to such a standpoint of its partner. The President of the Russian Federation who had arrived to Paris “for an exclusive deal” stated that this will be a symbol of the confidence between the two countries. At the same time for some EU and NATO states this would also be a symbol for mistrust and disappointment towards France, but for Paris this is less important.

By the way, the French President has acknowledged that he is going to a better “Gazprom” and military union with Russia due to the latter’s promises to think about the sanctions on Iran. For some reason this reminds the joke of the US General Norman Schwarzkopf after the First Gulf War (for Kuwait), according which to go to the battle with the French is the same as to bring an accordion to the hunting. What in the NATO system will replace the sold accordion?

The plans to build the gas pipe in the Baltic Sea and to “protect” it, while using the power of the Russian military fleet (that was already tested aside our borders during the autumn military exercises) are known to everyone. It will be possible to deploy the “Mistral” permanently. If somebody took this into consideration, this would seem to be an inconceivable naivety – let‘s scarify Georgia, but maybe we will remain untouched. Of course, this is an indecency as well. Previously big wars emanated out of it.

The opinion of some “Lithuanian war experts” that “Mistral” is not causing a threat for the many-sided security of our country is inconceivable. A cute ship does not make any difference. If in summer, as it was suggested, we would build on the beach a big aircraft-carrier-shaped tin toilet with an inscription of „MИСРAЛ“ on it, it would be even useful.

The text was published in Alfa.lt on 3 March

The author starts with the closer of Ignalina nuclear power plant on January 1 of this year when the Baltic States still have not created any significant power network linkages with EU member states. Not even the fact that a Latvian served one term as the EU’s energy commissioner helped in this. The energy dependency of the Baltic States on Russia has increased, not decreased, since they joined the EU. There is only one interconnection – the Estlink cable which hooks up Tallinn and Helsinki. All of the rest remains on paper.

When concern about this situation is discussed at the EU level, there is sometimes not even a statement of condolences for those NATO and EU member states that have been forced to become energy-dependent on Russia. What has been the point of all of this? Why did Lithuania’s entrance treaty with the EU include the rule of closing down the Ignalina plant if, six years after joining the EU, that increased the dependency of the Baltic States on Russia? How can we explain such an odd understanding of European integration?

Business Interests
On the one hand,  the author says, the demand to close down the Ignalina nuclear power plant was pretty clearly based in part on French business interests. That is how, ten years ago, the cornerstone was laid for a situation, which would force the Baltic States to change their energy capacities by buying services from French companies. There were surely certain business interests in all of this. Ten years ago the EU and the rest of the world were still dominated by negative views about nuclear power. Everyone clearly remembered the terrors of Chernobyl, and greens got one European country after another to abandon plans for new plants. Companies which manufacture nuclear power plants had to look for markets for their services, and bans on the use of older plants in Eastern Europe created good growth for businesses which can offer a replacement of technologies.

Shifting Views on Nuclear Power
The author states that it is only over the last ten years that attitudes towards nuclear power have changed radically. The price of fossil fuels has skyrocketed, and a global decision was taken to reduce carbon emissions. Nuclear power plants do not have any carbon emissions. Now there are more orders for nuclear plants than the qualified manufacturers can absorb. They can now make a choice between humble orders from poor countries (one bloc of 600 MW), or an order from Great Britain or India to build 20 plants. Small countries, therefore, find it hard to get a good price. The bottom line is that Ignalina has been shut down, but alternatives are still only being drafted.

One consequence of this is clear. Latvia and the Baltic States are now far more dependent on Russia than they were before they joined the EU. Could it be that exactly that was the long-term goal?

Mr. Paiders asks what kind of Baltic States do other EU member states need? Is the EU interested in bringing in a periphery in the East that might become a regular treat against regional security? Does it want to bring in countries, which annoy and challenge their eastern neighbours?

No, it does not, and EU leaders say so both officially and unofficially. It is in the interests of the EU to admit countries, which have maximally good relations with their neighbours, and particularly with Russia.

US Interests
Meanwhile, according to the author, it was in the interests of other global political players (especially America during the Bush era) to ensure that countries that could torpedo and delay any rapprochement between the EU and Russia whenever that was needed joined the EU. It is specifically because of such interests that the EU must have countries, which have latent conflicts with neighbours to the East. As soon as there is a global need, an invisible hand will inflate the conflicts, and Russia’s rapprochement with the EU will be prevented. Lithuania and Poland, for instance, blocked the launch of negotiations with Russia for several months on end.

The author noticed that,  there are certain limits to the rhetoric, which Baltic politicians allow themselves to engage in when it comes to annoying Russia. The Baltic States are linked in a single energy system with Russia. Politicians in the Baltic States can annoy their eastern neighbour only until the patients of the people is exhausted. Russia can shut down gas deliveries, as it has done with Ukraine. It can build alternatives to become independent from links to Poland and the Baltic States. That is why Primorsk, Ustylug and Nordstream were created. Each time there is an unmotivated escapade in Latvian foreign policy, there can be economic costs, which would be felt first and foremost by local residents. It was specifically the energy dependency that put the brakes on the policies of the Baltic States in terms of serving the interests of their global partners.

It is precisely energy dependency on Russia, Mr Paiders concludes, that limits Latvia’s foreign policy rhetoric, and that is a lever, which forces Latvia to maintain at least more or less normal relations with Russia. The European Union wants Baltic States that are European. They want Baltic States that are a part of Europe’s common foreign policy, not ones that represent the American “fifth column” within the EU. That is why it is possible that the EU was specifically interested in not increasing the level of energy independence in the Baltic States, thus creating conditions in which the Baltic political elite learns not only to live with Russia, but also to use their geographic location to serve their own interests and those of the EU.

151 speed cameras captured 7,908 violators last December and 6.334 in January.  However only 5.108 were recognised in December and 3.786 in December.  According to the paper drivers on average speed by 29 kilometres.

However, Dainius Salomskas from traffic control with the Lithuanian Police said to the paper that a third of violators are foreigners.  “Drivers of transport vehicles with foreign license plates are very undisciplined. They’ve constituted 29 pct of all recorded violations over the recent months. Before, we used to catch some 17 pct of such violators. We have no way of identifying the drivers,” Salomskas said.

Irena Degutiene said to the national radio on 2 March, “Tibet’s fight for freedom and independence from a powerful state is similar to Lithuania’s fight for independence from the Soviet Union and from Russia’s influence on Lithuania. These are probably the very simple and humane rather than political factors.”

The Speaker met with the Chinese ambassador last week status of the forthcoming Parliamentary resolution on the human rights in Tibet.  The ambassador also inquired about the faith of a Tibet Square in Vilnius.  At the meeting Degutiene asked the ambassador not to politicize the issue.

The opposition leaders understand that it will be difficult to topple down the present ruling coalition.  The three parties hold only 53 MPs out of 141.  One of the opposition leaders, the controversial MEP Viktor Uspaskich told to reporters on Monday, “We will invite all those willing to contribute to the programme’s implementation. As you are well aware, we don’t have a majority. In order to see the programme through we will need help from other MPs.”

The three have in mind the Liberal parties in the coalition government.  One of them, the Centre and Liberal Union is in talks of joining its forces with another coalition partner National Revival political group.  The Liberal movement, on the other hand, even though criticising the high taxes is unlikely to leave the coalition.

No matter what it is more than obvious that the three are not fit to form an alternative government.  MEP Uspaskich is still upset with the Social Democrats form their dealings in the former parliament.  The Social Democrats chairperson Butkevicius does not trust Uspaskich, since time when Mr Uspakich was the minister of economy and Butkevicius was the minister of Transport.  After a dispute between the two Butkevicius resigned his post in the government.

The Order and Justice party does not trust the both parties, especially the Social Democrats, the party which was active in impeaching President Paksas.  The Christian party has declared that they are not planning to join the opposition.  Furthermore, few weeks ago the MEP Uspakich called the Christian party a ‘political prostitute’.  And to add the salt to the injury the Labour party and the Order and Justice issued a joint statement declaring that they do not see possibilities working together with the Christian party.  And that was also two weeks ago.

Those only few areas of possible tensions in the future coalition.  Not mention the programme: reduction of unemployment and migration, encouraging consumption, and tax reforms.  It would be interesting how the Social Democrats will suggest changing taxes, which sounds like decreasing them.

The current centre-right Coalition includes of political groups of the Homeland Union – Lithuanian Christian Democrats, the Liberal and Centre Union, the National Revival Party and the Liberal Movement.  The coalition has a minimal majority of 71 votes.