Lithuanian Finance Minister calls situation with EU structural funds "paradoxically abnormal"

“All issues are important for us. I think the issue of cohesion is none the less important because the situation in that respect, as proposed by the European Commission, is just paradoxically abnormal. All those issues are being discussed,” the news portal delfi.lt quoted Simonyte as saying after the meeting with the members of parliamentary Committee on European Affairs on Wednesday.

The key areas, which Vilnius sought to ensure financing for in 2014-2020, included agriculture, the decommissioning of Ignalina Nuclear Power Plant (INPP) and the cohesion funds, she said. The European Commission proposed to reduce the cohesion support earmarked to certain member states by 3 percent, to 2.5 percent of GDP, in 2014-2020.

In Šimonyte’s view, 2.5 percent envisaged for the Baltic countries and Hungary “produce the result that is absolutely absurd” since structural support would be reduced for those countries which had suffered the most as a consequence of the global economic crisis and which demonstrated the highest EU funds absorption rates.

“Therefore, there is actually no reason to reduce structural support to these countries as if they have reached some huge level of development or are unable to absorb funds,” Šimonytė said.

On Wednesday, the government and parliamentary Committee on European Affairs discussed progress in talks on the EU’s multiannual financial framework for 2014-2020.