One is elimination of subsidies which are not appropriate, and elimination of tax exemptions, which are distortionary. While in any polity fiscal consolidation is hard, it is particularly so in our setting, but there are grounds for optimism. •  Third, and perhaps the most challenging issue relates to development of agriculture.
Although no serious breaches have been reported in Lithuania’s financial system, this context affects the whole region, especially in terms of reputational risks. Given the cross-border effects of such cases on integrity and resilience of domestic banking sectors, we are in need of close international cooperation – to which this conference will contribute. Furthermore, important changes are taking place in the financial sector.