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Thanks. So what does this mean: more or less austerity?


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sapere aude
by Number 6 on Tue Oct 30th, 2012 at 05:49:53 AM EST
Definitely less austerity. Maybe this coalition will deliberately try something different. It would be interesting to see EU reaction.

The big news yesterday was that the president Grybauskaite made a surprising statement (after a meeting with the LSDP leader Butkevičius) that Darbo Partija should not be taking part in government formation. For reasons, she cited the ongoing investigation of Darbo's shadow accounting during a previous election, and numerous voter buy-off reports. The condescending attitude of Grybauskaite and conservative, liberal leaders towards the new coalition is almost funny.

Formally, the president submits a prime-minister candidate for Seimas vote, so if she might block some government formations. The 3 parties responded by a plan to invite the Polish party and form a "constitutional" 60% majority, able to pose procedural threats. The popularity of Grybauskaite should definitely take a hit, I guess.

Soon after the election (and before the Grybauskaite statement), Uspaskich submitted a lengthy article on Lithuanian news portals, titled "The president does not listen to me, but she should listen to a Japanese economist". Thereby he refers to Richard Koo and his balance sheet recessions. If I would have time, I would write more on this. He criticizes heavily the out-going government for taking in more debt without tangible investments, that they include into their GDP statistics unproductive use of new credit and EU money. He even calls them Communist Government. His high hopes look Keynesian to me: just increase government spending and ease credit to small businesses...

by das monde on Tue Oct 30th, 2012 at 11:47:31 AM EST
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