Wednesday's vote was a victory for Prime Minister Andrius Kubilius' government after a tough fight with the opposition and ongoing protests outside the Seimas. Photo by Nathan Greenhalgh.
VILNIUS — The conservative majority in the Seimas scored a victory on Wednesday after lawmakers narrowly voted in favor of reducing pensions, social security, and unemployment benefits on Wednesday.
The result of the vote erases any gains made by the left-wing faction of the Lithuanian parliament, who had fleetingly saved pension funds from the cuts during Tuesday’s session. The austerity measures go into effect on Jan. 1, 2010 and extend to Dec. 31 2011, and were sold as a short-term way to cut the deficit in a ravaged economy. Because of the cuts, the deficit is now estimated to be cut to 2.7 billion litai from 4.5 billion litai (€781 million from €1.3 billion).
The first vote, which was held at noon, affected pensions and unemployment benefits. There were 66 in favor, 63 against with one abstention. The second vote, held at around 1:15 p.m., largely affected social security benefits and passed by a larger margin — 69 for, 59 against and two abstentions.
The law affects pensioners who receive over 650 litai (€188) per month in government subsidies. The current ceiling for pensioners is 1,400 litai (€405) per month. Maternity and paternity payments will also be reduced by 10 percent until the child turns one year old, and 25 percent until the child turns two.
Prime Minister Andrius Kubilius’ office released a statement today to Baltic Reports emphasizing the necessity for the reduction in payments.
“The prime minister is aware of concerns about the future of pensioners in this country during this difficult period,” the statement reads, emphasizing that although the pensions will be reduced, in 2008 payments were increased by 27 percent.
Kubilius is withholding comment specifically about the budgetary votes this week until the budget passes, expected to occur on Thursday. The final vote will likely occur in the evening to accommodate what is expected to be an extended period of debate on the contents of the bill.
The budgetary cuts made for strange political bedfellows, culling opposition from both the socially conservative, right-wing Order and Justice Party and the center-left New Union Party, who held a rally outside the Seimas Tuesday to protest any pension cuts.
“We don’t agree that they want to take money from old people, from children,” Valentinas Mazuronis, a Seimas member of the Order and Justice Party, told Baltic Reports. “There should be a structural reform of social payments. It’s fair, I think, to first of all try to find money in the monopolistic or oligarchical system.”
