Entrepreneurs are not happy about the creation of the Ministry of Regions. They have another proposal

The Ministry of Regions, which is due to start its activities in 2026, will lose some of its functions in the first year of its operation, believes Robertas Dargis, Vice President of the Lithuanian Confederation of Industrialists (LPK). He said the situation will be aggravated by the disappearance in the coming years of billions of euros of European Union (EU) aid, the distribution of which should be one of the ministry's responsibilities to the regions.

„Everybody is convinced that there will be a lot of money coming through the Ministry of the Regions, which will lift the regions. Few realise that after 2027-2028 the situation will change because of European money. There will not be much left to distribute and the regions will have to learn how to earn their own money. Therefore, instead of the Ministry of Regions, there should be a serious passage through the Law on Self-Government so that municipalities have more rights and opportunities to economically develop the regions," Dargis told Žinių radios on Monday.

„European money in millions and billions will no longer come to Lithuania. Let's not forget, Lithuania will become a donor and will pay much higher taxes to the EU," he said.

In addition, according to the LPK Vice President, such a ministry has historically failed and its functions could be performed by existing institutions.

„It should not be forgotten – historically there has been such a ministry. And it didn't work as well as it should have, so it was merged into the Ministry of the Interior. And if there are some issues that are difficult to resolve, if a strong unit is formed in that ministry, it can certainly be resolved,– he said.

In addition, according to Dargis, while politicians who support the idea of a Ministry of Regions argue that it will not increase public spending, the example of the Ministry of Energy shows that new institutions significantly expand their functions and the costs of implementing them.

„Next week I will finish compiling the figures and present how the Ministry of Energy cost us „nothing“. I have nothing against the Ministry of Energy, but we can see from its example how public administration is invisibly increasing. Because there will be a ministry, there will be functions, there will be expansion, there will be coordination," Dargis said.

ELTA recalls that the establishment of the Ministry of Regions was proposed by the country's leader Gitanas Nausėda in September last year. According to him, the newly established institution would take over the responsibility of the Ministry of the Interior for regional policy-making and would contribute to increasing the autonomy of councils and self-government.

This ministry could also take over functions from other ministries, which would enable it to pursue a national policy in line with the expectations of the regions.

Interior Minister Vladislav Kondratovic has also argued that the latter institution would strengthen the regions. In an interview with Elta, he has indicated that a new Ministry of Regions in Lithuania could be operational as early as 2026.

According to Prime Minister Gintautas Palucas, the initiative to establish a new Ministry of Regions will reach the Seimas in autumn this year.