"I believe that because of the financial markets, the EU membership, and the ongoing Excessive Deficit Procedure, the freedom of maneuver would be rather limited, and any increase in the budget deficit would mean higher borrowing costs for Lithuania. And Lithuania will have to borrow until the budget is balanced," Vilpišauskas told BNS on Sunday, commenting on the Seimas election results.
In his words, the chances are that the existing three opposition parties – the Social Democrats, the Labour Party, and the Order and Justice Party – will form a new government. But, he added, "it's not the only possible scenario."
According to Vilpišauskas, under such a government, "no radical changes" are expected in the country's financial and economic policies "but if proposals on the minimum wage are implemented, negative consequences of such a policy will soon be visible."
"Several symbolic promises might be fulfilled but a number of them will stay on paper, and they will be able to have an excuse saying that it's difficult for parties to fulfill their promises being in a coalition," Vilpišauskas said.
Preliminary figures show the opposition Social Democratic Party of Lithuania will have the largest political group in the new parliament. The party has already launched coalition talks with the Labour Party and the Order and Justice Party. The three parties will have the majority in the parliament.
The ruling conservatives came in second and will have 33 seats, making them the second biggest parliamentary party.
