Lithuania’s new government emerging from this weekend’s elections will have to keep cutting the budget deficit or risk higher interest rates, said Lars Christensen, chief emerging-markets economist at Danske Bank A/S.
Lithuanians are set to oust their government after austerity measures intensified the Baltic nation’s deepest recession, sending unemployment and inequality to record highs and prompting an exodus of workers.
Lithuania’s Labor Party said it would expel any members found guilty of violating the election law amid allegations that some bribed voters during an Oct. 14 round of parliamentary elections that the party won.
Lithuania and Latvia should adopt the euro to bring discipline to the European Union’s common currency area, Leszek Balcerowicz, the architect of Poland’s 1990s switch to a market economy, told the Baltic News Service.
Lithuania’s anti-corruption agency charged Vilnius Deputy Mayor Romas Adomavicius, a candidate for the Social Democrat party that’s leading in the polls less than two weeks before elections, with bribe taking.