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Economy / Lithuania

Lithuania

August 2012 | Risk Summary

The fate of the ruling centre-right coalition government of Prime Minister Andrius Kubilius is becoming increasingly clear ahead of the parliamentary election scheduled for October. Support for the ruling coalition parties continued to slide in recent months, with the latest available opinion poll from Vilmorus showing that the three ruling parties (Homeland Union, Liberals' Movement, and the Liberal and Centre Union) together garnered just 9.6% support in July, a clear drop from the aggregate support of 11.6% of respondents to an earlier poll in May, and 14.8% back in February. We believe that a centre-left coalition between the Social Democratic Party and the Labour Party is looking highly likely, with both parties together receiving 30.6% of support in July.

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