Lithuanian PM criticizes cabinet changes, warns of fiscal risks

Lithuanian Prime Minister Ingrida Šimonytė has voiced strong criticism regarding recent government cabinet reshuffles, particularly questioning the rationale behind replacing ministers who were performing adequately. She stated that ministers who "understand what they are doing in their areas of responsibility" are being replaced by newcomers to both politics and their specific fields.

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It seems to me that the least necessary are the ministers who are doing relatively well and, one might say, understand why they came to the government.

Šimonytė specifically pointed to the changes involving the finance and interior ministers as particularly perplexing. While she suggested a possible understanding for replacing one minister, the shifts in the finance and interior portfolios raise "very big questions" about the logic behind them. She noted that the new candidates are not only new to their roles but also to the Social Democratic party, which is part of the ruling coalition.

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And here, it seems to me, difficult changes occurred that are precisely explained by this logic, because, if one can understand the replacement of Mrs. Aleknavičienė with Mr. Alsį (...), the replacement of Minister Kondratovičius and the finance minister already raises very big questions as to why such changes are being made.

A significant concern for Šimonytė is the potential impact on fiscal responsibility. She highlighted the importance of a finance minister who can independently advise the prime minister, even if it means saying "no" to prevent unsustainable spending. This is especially critical as Lithuania faces increasing defense budget demands, aiming for 5% of GDP by 2030, with current EU borrowing options exacerbating national debt.

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I can certainly say – these were ministers who understood what they were doing in their areas of responsibility. And they are being replaced by people who are new to the topics, and to politics, and, frankly, even to social democracy.

Šimonytė also expressed apprehension about the new finance minister's approach, citing a description of "a broad view of finances" as potentially euphemistic. She questioned whether this implies a tendency towards hiding deficits or relying on overly optimistic economic forecasts, practices that have occurred in the past and are not "encouraging."

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And here I see a big danger, especially when talking about the finance minister, because he is the minister who must be able to say 'no' to any minister, to the prime minister. To any, no matter how much he respects him, no matter what authority he might be. But the duty is to ensure that the state's finances function, that they are sustainable, that we do not go off the rails, as happened before the financial crisis.