Lithuanian President Gitanas Nauseda has officially nominated Mindaugas Sinkevicius, chairman of the Social Democratic Party of Lithuania (LSDP), for prime minister, BNS reports. The parliament, the Seimas, will vote on the nomination on 30 June 2026, after which Sinkevicius will have 15 days to present his new cabinet and government programme for parliamentary approval. Sinkevicius…
Every major party in Estonia has added to the state’s debt burden, according to Kaspar Oja, senior economist at the Bank of Estonia, ERR reported. While the biggest budget deficits emerged during the coronavirus pandemic, Estonia has had structural deficits every year since 2017, Oja noted. His analysis found that when in government, the Conservative…
Lithuania’s incoming new coalition government may try to resume official dialogue with neighbouring Belarus on reopening transport links and trade, The Baltic Sentinel reports. Political analyst Vytautas Bruveris noted that many rural voters of the Lithuanian Social Democratic Party (LSDP) and the Lithuanian Union of Farmers and Greens (LVZS), especially in eastern Lithuania, were tired…
Hourly labour costs in the Baltic States rose the fastest in Lithuania in the first quarter of 2026, according to Eurostat data, ELTA reported. Nominal hourly labour costs in the whole economy rose by 8.6% in Lithuania, 6.2% in Estonia, and 2.3% in Latvia from the first quarter of 2025. Hourly wage costs alone went…
Estonia’s state-owned transmission system operator, Elering, plans to build new undersea electricity interconnections with Finland and Latvia by 2040, ERR reports. Priit Heinla, head of offshore grid development at Elering, said that investment decisions on the two projects could be made in 2031-2033. Elering expects electricity prices to remain lower in the Nordic countries. Therefore,…
The Latvian parliament, the Saeima, has approved amendments extending a reduced excise tax rate on diesel fuel until the end of 2026, LSM reports. The diesel tax was lowered from EUR 467 to EUR 396 per 1,000 litres and for marked diesel fuel used in agriculture from EUR 70 to EUR 21 per 1,000 litres…
Three political groups in the Lithuanian parliament, the Seimas, have signed an agreement on a new coalition government, BNS reports. The new ruling coalition will include the Lithuanian Social Democratic Party (LSDP), the Union of Democrats for Lithuania, and the joint parliamentary group of the Lithuanian Union of Farmers and Greens and the Electoral Action…
Three parliamentary groups in Lithuania will sign an agreement on forming a new coalition government on 18 June 2026, BNS reports. The coalition will consist of the Social Democratic Party of Lithuania (LSDP), the Union of Democrats for Lithuania (DSVL), and the joint parliamentary group of the Lithuanian Union of Farmers and Greens (LVZS) and…
Latvia’s central bank, the Bank of Latvia, has lowered its GDP forecast for 2026-2028 markedly, LSM reports. GDP growth will amount to 2.0% in 2026, to 2.4% in 2027, and to 3.0% in 2028, according to the latest forecast. In December 2025, the central bank had projected that the GDP would grow by 2.8% in…
