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Lithuania destroys the terrible inequality: worse in Serbia

Литву губит страшное неравенство: хуже только в Сербии

During the four years of social democratic rule, the income inequality in Lithuania is further increased, and it is now the largest in the whole European Union.

The new government claims that there will be more attention to this problem, but it can get confused in many of the stated priorities.

According to the European statistical Agency Eurostat, in 2015 in Lithuania, the overall degree of social stratification that reflects the Gini coefficient, 37.9, where 0 is absolute equality and 100 absolute inequality.

Over the past 10 years, the rate has varied a few: after the crisis of 2008 it increased, in the period 2010-2012 is decreased, and later began to grow. But during all this time he was above the EU average.

According to the latest data, the Gini coefficient was worse than in Lithuania only in Serbia, where it is 38.2. In the rest of Europe stratification was less.

In the program appointed by the Prime Minister Saulius Skordalia said that Lithuania will begin to implement effective policies to combat poverty.

“Will carry out active measures to combat poverty and stratification in society. Factor stratification and income inequality will be reduced to the EU average,” – said in the program.

17th, the government of Lithuania asserts that in the long term, reducing disparities, will achieve tax reform and the introduction of progressive taxes.

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“In our program we offer a progressive minimum taxes in the future will consider the possibility of their expansion,” said the new ruling.

He was Squirrelys the fight against poverty and inequality was named one of the most important goals for him personally.

However, in the television show on LRT “In the spotlight” he said he considers it a priority to education, bringing order to the private sector and the fight against corruption.

Income inequality said and appointed by the Minister of Finance Vilius Sapoka.

“Income inequality in Lithuania have passed all bounds of common sense,” he said on the conference portal DELFI.

Therefore, in the field of taxes plans to introduce more progressivity. Epoca believes it is very important to the security felt by those who earn the least.

The head of “invest Lithuania” Katinas mantas, which was previously called Ministerial candidate of Economics, believes that the inhabitants of the country should be encouraged to adapt to changes in the economy, then they will earn more.

“Today the economy transformirovalsya in digital, some people earn very much, and those who are not ready for this, you earn enough. There is no magic cure, but on the scale of Lithuania we should do everything possible to help people to join the modern economy, in any other way, unfortunately, to earn more does not work”, – said during the conference at DELFI Katinas.

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According to him, Lithuania should extend the middle class to about 50% of society, then, thanks to taxes, benefits, transfers of funds, etc. those who do not earn much will be able to support the government.

Different opinion the Deputy Ausra Maldacena. She criticizes the new government’s programme for the randomness. The economist said that the program contradicts itself, since it promises how to improve the country’s competitiveness and reduce income inequality. And, in her view, these are incompatible.

“They promise 4 years to decrease in Lithuania, the income inequality to the average in the EU, but no numbers. This means a decline of nearly 8 points, but technically, it is unreal. Especially if they say that will strengthen competitiveness, which is associated with the stimulation of exports,” – said DELFI Maldacena.

At the end of July 2016, the Organization for economic cooperation and development (OECD) in its report pointed out that despite impressive economic growth in Lithuania, inequality is very high.

The OECD proposes to solve such problems as emigration by creating conditions for the emergence of good jobs with adequate salaries.

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