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Economy / Lithuania

Economy Slows But Banking Sector Booms

February 2007 | Ratings Update

The popularity of the four-party government will be put to the test in local elections on February 25. Despite the absence of a parliamentary majority, the coalition has performed reasonably well since being cobbled together in July 2006, although many observers still expect it to collapse before the next parliamentary elections in 2008. That said, inter-party relations have so far been fairly good and in January, the four parties - the Social Democratic Party, National Farmers' Union, Liberal and Centre Union, and Civil Democracy - agreed to fight the local elections fairly, not to engage in groundless criticism of their

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