The new Lithuanian government started its austerity program with little VAT and corporate profit tax raises, pushing public wages down and further social cuts (say, for child support). But it does not save money for its own salaries, government reorganizations (like moving the agricultural ministry to Kaunas) or ideological reforms.
On the other hand, the previous Kirkilas' government did not attempt much to look attractive either - apparently they willingly wasted a lot of public days (for example, buying two warships for the price double of what Latvia or Estonia payed). So there is much food for distractive finger pointing - what a nice game.
The core Baltic economic problems come bare to see in these hard-credit times. The trade balance is horrible, thus they need persistent investment flows. That's what global free trade and glorious egocentric capitalism means eventually there.
A couple of interesting aspects: Vilnius is supposed to be the European Cultural Capital 2009, on the occation of 1000 years of first mentioning of Lithuania in mediavial writings. But the project is practically doomed, as the new government stopped financing it.
Besides, the "FlyLAL Lithuanian Airlines" went bankrupt last month... so it became tricky to get to the Cultural Capital at all. The bankrupcy was pretty ugly: just before Christmas they offered 50% of their shares to the government for free - but deep in 27 million euro debt; then they negotiated with a Swiss group; after that failed - "sudden" bankrupcy. A few thousand of passengers were left stranded, with little chance of compensation. Their main creditors: the "FlyLAL" group itself. Their charter or ttechnical service sections are doing quite fine. What a buisiness model: a lot of managing, little expertise, evil outsourcing...
