Balcytis promises stable Lithuania

Lithuania: Lithuania's acting prime minister Zigmantas Balcytis pledged to stabilise his country's political scene and lead it to a swift adoption of the euro after he was nominated to lead a new government yesterday.

President Valdas Adamkus nominated Mr Balcytis to form a new cabinet after the last one collapsed in acrimony this month, becoming the 13th government to fall since Lithuania gained independence from the Soviet Union in 1991.

Mr Balcytis (52) is a political veteran who served as finance minister in the last government. However, he faces a tough task forging a majority in parliament after coalition talks between his Social Democrats and the powerful Conservatives collapsed this week.

Parliament has a week to pass the nomination of Mr Balcytis, after which he will have 15 days to choose a cabinet and submit it for presidential and parliamentary approval.

"We must ensure stability and political continuity, which are very important in bolstering the confidence of the people in the country and its future," Mr Balcytis said after being nominated.

"Political continuity not only has a positive effect on the public but also improves the country's image abroad.

"EU countries want to know whether the work we have begun will be continued, whether our foreign policy will be continued. We must confirm this."

Mr Balcytis also told parliament that under his leadership Lithuania, which joined the EU in 2004, would maintain its goal of adopting the euro as soon as possible. "This strategic goal will remain. I think in the autumn, when we have new economic forecasts, we will be able to set a precise date."

The last coalition government fell after corruption scandals prompted the withdrawal of key parties. It was further undermined by the refusal of the European Central Bank and European Commission to allow Lithuania to adopt the euro next year because its inflation rate was just above a qualifying level set by Brussels for candidate nations.

Before flying to a European Union summit in Brussels, Mr Balcytis reiterated Lithuania's dissatisfaction with the decision.

"Lithuania's case has raised questions about the criteria for joining the euro, and we are now seen in a positive light for having put this issue back in centre stage," he said.

"Europe has changed. Ten new members have joined the EU. Their economies and level of development are different to those of old members."