Lithuanian prime minister plans "fundamental change"

Vilnius - New Lithuanian prime minister Andrius Kubilius presented his incoming government's plans to parliament for approval Friday, promptly laying the blame for Lithuania's current economic problems squarely with his predecessor, Gediminas Kirkilas.

"It is regrettable that in his time, the IMF warned that the government needed to take action to avoid an imminent crisis. No action was taken, so we have a crisis," Kubilius said to howls of protest from Kirkilas' supporters.

The Lithuanian economy has recorded some of Europe's highest growth rates over the last decade, but that progress has slowed markedly this year and many in the largest and most economically powerful of the Baltic states fear the country may slide into recession soon.

Kubilius, elected to lead a new centre-right coalition during elections in October, said Kirkilas' left-leaning government had missed the opportunity to save during the boom years, leaving Lithuania vulnerable during the downturn.

He promised to get the country through the economic crisis by carrying out wide-ranging reforms including budget cuts.

"We must carry out fundamental change in the country and all areas of life," he told parliamentarians.

He also vowed to support business by creating more favorable conditions to start companies and obtain credit.

The 51-year-old, who previously served a prime minister during 1999-2000, said adoption of the euro to replace the national currency, the lita, would be another primary objective.

"But we will only be able to speak of precise dates after 2011," he added.

With a delegation from the International Monetary Fund due to visit Lithuania next week, Kubilius played down suggestions that the country was about to copy neighbouring Latvia and ask for IMF funds.

"Today I do not see any need to borrow from the International Monetary Fund and no need to talk about the devaluation of the lita," he said. (dpa)

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