"Today the government unanimously agreed to propose to the president to start the ratification of the so-called European fiscal discipline treaty," Prime Minister Andrius Kubilius told journalists after a Cabinet meeting on Wednesday.
"We agreed without major discussions as our general political position is very clear," he said.
According to the Lithuanian Prime Minister, the move was Lithuania's response to ongoing discussions in Europe on whether fiscal discipline or European agreements on growth were more important.
"We know that these are concurrent things, and there will be no growth without fiscal discipline. (…) We are convinced that it’s an important step forward for Europe, and we understand that very well as, during the 2009-2010 recession, during the crisis period, we were very well aware of the fact there can be no growth without fiscal discipline and ensuring stability of the financial system,' Kubilius said.
Drafted in response to the debt crisis in the euro zone, the agreement stipulates a requirement to envisage provisions on budget discipline in national legal systems, preferably in the Constitution.
Lithuania's Foreign Ministry has proposed that the balanced budget rule should be stipulated in the Constitution or a Constitutional act.
In March, the agreement was signed by Lithuania's President Dalia Grybauskaitė and leaders of 24 other European countries. The Czech Republic and Great Britain did not join the agreement.
