Lithuania

The days of the austerity-focused centre-right coalition government under Prime Minister Andrius Kubilius are numbered, and a reversal on fiscal policy after the October 2012 parliamentary election cannot be ruled out. That said, we believe that even a centre-left government would find it difficult to endear itself to voters given the limited room for Lithuania to increase spending. The trend of growing voter apathy with Lithuanian politics will likely continue well after the elections and is tightly linked with the country's economic fortunes.

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