Moody's said instability in the Seimas would not cause the credit rating to fluctuate nor jeopardize Lithuania's economic recovery. Photo by Nathan Greenhalgh/Baltic Reports

VILNIUS — A breakdown of the ruling coalition in Lithuania’s Seimas would not harm the country’s national economy or long-term debt rating of Baa1, Moody’s Investors Service said.

Over the last month the ruling coalition has looked ever shakier. The loss of one member and the official majority has left the coalition in a vulnerable position and now it looks as [private_supervisor]though one of its key factions, the Liberal and Center Union may be breaking away too. On Wednesday, Seimas speaker Irena Degutienė said that the party could leave.

“We do not think that any political instability will affect the economic recovery,” Moody’s analyst Kenneth Orchards said, but said it wouldn’t help either.

“Political turmoil is never good, especially when the country tries to recover from a severe crisis,” Orchards said. “The government has big plans the next one or two years. A stable political situation would help implement those plans. If we could see that political instability is a problem for fiscal consolidation, we would be more worried,” he said.

Painful austerity measures put in place to consolidate the country’s troubled finances created rifts among the four coalition parties. The moves were praised by international bodies such as the International Monetary Fund and the European Commission, though.

Standard and Poor, Moody’s and Fitch all moved to upgrade Lithuania’s ratings this year and changed the country’s outlook from negative to stable. [/private_supervisor] [private_subscription 1 month]though one of its key factions, the Liberal and Center Union may be breaking away too. On Wednesday, Seimas speaker Irena Degutienė said that the party could leave.

“We do not think that any political instability will affect the economic recovery,” Moody’s analyst Kenneth Orchards said, but said it wouldn’t help either.

“Political turmoil is never good, especially when the country tries to recover from a severe crisis,” Orchards said. “The government has big plans the next one or two years. A stable political situation would help implement those plans. If we could see that political instability is a problem for fiscal consolidation, we would be more worried,” he said.

Painful austerity measures put in place to consolidate the country’s troubled finances created rifts among the four coalition parties. The moves were praised by international bodies such as the International Monetary Fund and the European Commission, though.

Standard and Poor, Moody’s and Fitch all moved to upgrade Lithuania’s ratings this year and changed the country’s outlook from negative to stable. [/private_subscription 1 month] [private_subscription 4 months]though one of its key factions, the Liberal and Center Union may be breaking away too. On Wednesday, Seimas speaker Irena Degutienė said that the party could leave.

“We do not think that any political instability will affect the economic recovery,” Moody’s analyst Kenneth Orchards said, but said it wouldn’t help either.

“Political turmoil is never good, especially when the country tries to recover from a severe crisis,” Orchards said. “The government has big plans the next one or two years. A stable political situation would help implement those plans. If we could see that political instability is a problem for fiscal consolidation, we would be more worried,” he said.

Painful austerity measures put in place to consolidate the country’s troubled finances created rifts among the four coalition parties. The moves were praised by international bodies such as the International Monetary Fund and the European Commission, though.

Standard and Poor, Moody’s and Fitch all moved to upgrade Lithuania’s ratings this year and changed the country’s outlook from negative to stable. [/private_subscription 4 months] [private_subscription 1 year]though one of its key factions, the Liberal and Center Union may be breaking away too. On Wednesday, Seimas speaker Irena Degutienė said that the party could leave.

“We do not think that any political instability will affect the economic recovery,” Moody’s analyst Kenneth Orchards said, but said it wouldn’t help either.

“Political turmoil is never good, especially when the country tries to recover from a severe crisis,” Orchards said. “The government has big plans the next one or two years. A stable political situation would help implement those plans. If we could see that political instability is a problem for fiscal consolidation, we would be more worried,” he said.

Painful austerity measures put in place to consolidate the country’s troubled finances created rifts among the four coalition parties. The moves were praised by international bodies such as the International Monetary Fund and the European Commission, though.

Standard and Poor, Moody’s and Fitch all moved to upgrade Lithuania’s ratings this year and changed the country’s outlook from negative to stable. [/private_subscription 1 year]

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