Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.
Factsheet for measure LT-2022-46/3016 – measures in Lithuania
Country | Lithuania , applies nationwide |
Time period | Temporary, 10 November 2022 – 28 December 2022 |
Context | War in Ukraine |
Type | Legislations or other statutory regulations |
Category |
Supporting businesses to stay afloat
– Direct subsidies (full or partial) |
Author | Inga Blaziene (Lithuanian Centre for Social Sciences) and Eurofound |
Measure added | 26 January 2023 (updated 21 April 2023) |
On 10 November 2022, the Procedure for granting and administering subsidies to undertakings operating in sectors severely affected by increases in energy prices, approved by Government Resolution No. 1084 came into effect that foresaw the support for the most energy-intensive undertakings in Lithuania. The measure aims at mitigating the negative effects of energy price increases in highly energy-intensive sectors in Lithuania.
According to the Procedure, energy-intensive undertakings are defined as undertakings where energy consumption accounted for 10% or more of their total costs in 2021 and 2022. Business sectors that are eligible for the measure include undertakings engaged in the following economic activities: mining of metal ores; manufacture of textiles; manufacture of wearing apparel; manufacture of wood and of products of wood and cork, except furniture; manufacture of articles of straw and plaiting materials; manufacture of paper and paper products; manufacture of coke and refined petroleum products; manufacture of chemicals and chemical products; manufacture of other non-metallic mineral products; manufacture of basic metals.
The subsidy is only available to undertakings that have received invitation from the State Tax Inspectorate (STI) and meet all the criteria set out in the Procedure. The amount of the subsidy is linked to the taxes paid by the undertaking (personal income tax and corporate income tax). The maximum aid accounts for 30% of the declared personal income and corporate income taxes. The maximum amount of the subsidy is €500,000 and the minimum is €500. The subsidy funds will be transferred to the undertakings by 28 December 2022.
At the beginning of November 2022, the STI selected 2,200 undertakings severely affected by energy prices and sent them personal invitations to apply for a non-refundable subsidy by 22 November 2022. The budget for the measure is €30 million.
Workers | Businesses | Citizens |
---|---|---|
Does not apply to workers |
Sector specific set of companies
|
Does not apply to citizens |
Actors | Funding |
---|---|
National government
Employers' organisations |
National funds
|
Social partners' role in designing the measure and form of involvement:
Trade unions | Employers' organisations | |
---|---|---|
Role | No involvement | Consulted |
Form | Not applicable | Any other form of consultation, institutionalised (as stable working groups or committees) or informal |
Social partners' role in the implementation, monitoring and assessment phase:
Employers organisations were partially involved in the design of the measure. E.g., on 8 September 2022, representatives of the country’s largest industrial companies attended a meeting of the Committee on Budget and Finance of the Seimas (Parliament) of the Republic of Lithuania, where they presented the current business situation and stressed the need for state aid. Subsidies were one of the measures, the necessity of which was emphasised by the majority of representatives of the employers' organisations
In general, the measure was welcomed by representatives of major employers’ organisations in Lithuania. However, there has also been some criticism from the employers. Some businesses argued that the Government has not chosen the right criteria for identifying energy-intensive undertakings. According to the representatives of furniture manufacturing and textile companies, despite the significant increase in energy costs, some manufacturing companies will not be identified as energy-intensive undertakings, as increased costs of raw materials account for a larger share of their costs. According to them, prices of raw material should be eliminated when calculating compensation for energy-intensive undertakings.
This case is sector-specific
Economic area | Sector (NACE level 2) |
---|---|
B - Mining And Quarrying | B7 Mining of metal ores |
C - Manufacturing | C13 Manufacture of textiles |
C14 Manufacture of wearing apparel | |
C16 Manufacture of wood and of products of wood and cork, except furniture; manufacture of articles of straw and plaiting materials | |
C17 Manufacture of paper and paper products | |
C19 Manufacture of coke and refined petroleum products | |
C20 Manufacture of chemicals and chemical products | |
C23 Manufacture of other non-metallic mineral products | |
C24 Manufacture of basic metals |
This case is not occupation-specific.
Citation
Eurofound (2023), Subsidies to energy-intensive undertakings, measure LT-2022-46/3016 (measures in Lithuania), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/LT-2022-46_3016.html
Share
30 January 2023
Governments across the EU continue to implement policies to support citizens and businesses in the face of rising food and energy prices caused by the COVID-19 crisis and intensified by the war in Ukraine. This article summarises the policy responses as reported in Eurofound's EU PolicyWatch database from January to September 2022.
Article12 September 2022
Although the worldwide pandemic situation had already disrupted supply chains and triggered increases in energy and food prices in 2021, the situation deteriorated in 2022 with the Russian invasion of Ukraine.
Article12 September 2022
This article summarises the first policy responses that governments across the EU have started to implement to support companies affected by the rising prices, and those with commercial ties to Ukraine, Russia or Belarus.
Article5 July 2022
This article summarises the first policy responses of EU Member States, including those of the social partners and other civil society actors, enabling refugees to exercise their rights under the Temporary Protection Directive.
ArticleDisclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.