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Economy / Lithuania

Lithuania

November 2004 | Risk Summary

The Labour Party (DP) emerged as the strongest party in parliamentary elections, taking 39 seats in the 141-member parliament. Although it initially appeared that a “rainbow coalition” of parties to the left and right of centre would be formed to exclude the populist DP from government, agreement was eventually reached between the outgoing centre-left administration and the DP. Having campaigned on a platform of irresponsible fiscal policy, the DP’s inclusion in government increases the risk of economic mismanagement. However, opposition claims that the party’s Russian-born leader Viktor Uspaskich would steer the country away from the EU and towards Russia seem

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