On Tuesday, the XX Government led by Inga Ruginienė resigned. President Gitanas Nausėda signed a decree confirming this, ordering cabinet members to continue temporarily. Among the most important national news is that Lithuania fell from 21st to 34th place in the global competitiveness ranking.
LITHUANIAN POLITICS NEWS
The XX Government led by I. Ruginienė, which had been in office for almost nine months, resigned. President Gitanas Nausėda signed a decree to that effect on Tuesday, also instructing the cabinet to temporarily continue its work. The president appointed I. Ruginienė as acting prime minister. After her resignation, she told journalists she was finishing her work "with her head held high and a calm heart." G. Nausėda's meeting with the newly delegated candidate for prime minister, Mindaugas Sinkevičius, will take place on Wednesday, St. John's Day, and his nomination is expected to be submitted to the Seimas on Thursday evening.
German media reports that a 17-year-old German girl has been detained in Lithuania, suspected of murdering a peer five months ago in the German city of Castrop-Rauxel. Angela R. was detained in cooperation between the North Rhine-Westphalia state criminal police and Lithuanian authorities, according to German police cited by the portal "Focus online." The fact of the minor's detention was confirmed to ELTA by the Lithuanian Prosecutor General's Office on Tuesday. In a response to ELTA, it is stated that the person in question is detained in Lithuania. A remand measure – arrest – has been imposed on her. The pre-trial investigation is being conducted in Germany. The issue of the person's extradition to Germany under the European Arrest Warrant will be decided. The decision on this matter will be made by the Vilnius Regional Court. The girl is suspected of murdering a fellow student with a knife in a treacherous and planned manner on January 14. She was detained under the European Arrest Warrant and should be extradited to Germany, according to a German prosecutor's office spokesman. A few weeks ago, "Focus online" reported that the family of the murdered Onur had announced a reward of €20,000 for information that would help catch the hiding suspect.
LITHUANIAN BUSINESS NEWS
With Lithuania falling 13 places in the global competitiveness ranking over the year – from 21st to 34th – acting Finance Minister Kristupas Vaitiekūnas does not link this to the tax reform passed by parliament last year. Last year, the Seimas gave the green light to a reform that increased corporate tax, changed real estate and personal income taxation, and introduced new taxes, directing these revenues to defense. However, in the minister's opinion, the changes were mild and had no significant impact on the country's competitiveness index. In the annual competitiveness ranking of the International Institute for Management Development (IMD) based in Switzerland, which evaluates 70 countries, Lithuania placed 34th this year, scoring 67.3 points out of 100. This is the worst result in five years; in 2024 the country was 30th, in 2023 32nd, and in 2022 29th. Compared to other Baltic states, Lithuania was the only one that fell in the ranking this year – Estonia rose five positions to 28th (last year 33rd) with 70.5 points, Latvia, although still below Lithuania, rose three positions from 38th to 35th (score 67.2). Poland rose 11 positions from 52nd to 42nd (score 64.1). Assessing the results, Rolandas Valiūnas, chairman of the board of the association "Investors’ Forum," said that businesses had warned about these challenges last year when tax changes were being prepared in the country.
The Vilnius Regional Court has initiated bankruptcy proceedings against "Garnis," a company partially owned by former Social Democrat Prime Minister Gintautas Paluckas, and also seized the company's assets. The first-instance court's ruling, which can still be appealed to the Court of Appeals, states that the company cannot timely fulfill its property obligations and is considered insolvent. According to the ruling, "Garnis" has a tax arrears of €19,600; according to Sodra data, the company employs no workers. Based on the company's balance sheet, from January 23, 2024 to the end of the year, "Garnis" had assets of €10,790, while payables and other liabilities totaled €47,670. During this period, "Garnis" did not make a profit; according to the bailiff's information system, forced recovery of more than €9,000 has been initiated against the company. The State Tax Inspectorate informed the court that forced recovery of the tax arrears is ineffective. The court appointed Vytautas Skulščius as the company's insolvency administrator, setting his base remuneration for administering the bankruptcy process at €5,760 (equivalent to five minimum monthly salaries).
An agreement has entered into force for the development of part of the second phase infrastructure of the Rūdninkai military town allocated for the German brigade, and construction work has begun, the Ministry of National Defense announced. On Tuesday, it was also announced that the second phase part A project developer "Rudina" has been allocated financing from the European Investment Bank and Swedbank – each institution provides a loan of €100.37 million. Until now, preparatory earthworks and technical documentation were underway in the area of the second phase part A. The work in this phase will be carried out by a consortium of companies "Conres," "INVL Asset Management," and "Fegda," where Conres and Fegda are responsible for project implementation, supervision, and management, while INVL is the financial partner. The consortium established a special-purpose company "Rudina" for the implementation of this project. The total value of the entire second project phase part A is €487.61 million (including VAT), with obligations planned over a 15-year period. Currently, about 60 people work at the site; the team is planned to be increased once the active phase begins. So far, about 70% of earthworks have been completed on the 52-hectare area; it is planned that Conres will build 27 structures adapted for military needs at the Rūdninkai training ground, with a total area of nearly 94,000 square meters. The area also includes plans for a parade ground, vehicle and military equipment areas, workshops, an administration building, an officers' club, a helicopter zone, and other amenities and security facilities.
INTERNATIONAL NEWS
The US and Iran have agreed to set up working groups on the nuclear program and sanctions, Tehran says. Two of them will deal with Iran's nuclear program and the lifting of sanctions on Iran, while the other two will focus on Iran's reconstruction and economic development, and monitoring and implementing the agreement, the state-run Iranian news agency IRNA reported on Tuesday. Washington and Tehran delegations negotiated on Sunday and Monday in Switzerland on a long-term peace solution. Both sides agreed on a plan for implementing a peace agreement in the region and creating a communication channel to avoid misunderstandings or incidents in the Strait of Hormuz and ensure safe navigation, mediators reported.
Ukraine has warned Russia at the United Nations to "get out while there's still time." Ukraine's UN ambassador Andriy Melnyk, speaking at a Security Council meeting, sternly warned Russia that Moscow's control over occupied Ukrainian territories would not last long and that Kyiv could reconsider its ceasefire proposal if the UN continues its "wait-and-see" approach, Ukrainian media reported. Melnyk said Ukraine had "fundamentally changed the course of Russia's war," noting that even Russian military bloggers now admit Moscow cannot win. He said nearly 40% of Russia's oil refineries have been damaged and can no longer support the country's military campaign.
European Union Defense Commissioner Andrius Kubilius said that as Washington considers reducing the number of its military forces stationed on the continent, Europe faces an "urgent challenge" to replace US weaponry. Last week, Pentagon chief Pete Hegseth announced a six-month review of US forces stationed in Europe, which, according to Kubilius, could lead to Washington moving its largest capabilities to other regions of the world. The European Commissioner assessed that this means Europe must immediately find ways to replace US strategic capabilities and heavy weaponry. Citing calculations by Germany's Kiel Institute, Kubilius warned that filling the "strategic gaps" could cost around €500 billion.
