SWITZERLAND: Lithuanian and Albanian leaders cautiously optimistic about surviving the financial crisis

Record ID: 561135

  • Title: SWITZERLAND: Lithuanian and Albanian leaders cautiously optimistic about surviving the financial crisis
  • Date: 3rd February 2009
  • Summary: VILNIUS, LITHUANIA (FILE - JANUARY 16, 2009) (REUTERS) DEMO PARTICIPANTS IN FRONT OF PARLIAMENT BUILDING/ MEN SHOUTING VARIOUS OF PROTESTERS AND RIOT POLICE
  • Embargoed: 18th February 2009 12:00
  • Keywords:
  • Location: Switzerland
  • Country: Switzerland
  • Topics: International Relations
  • Reuters ID: LVA3SD1PER4QW44DRM88TGKFTZ6T
  • Story Text: In Switzerland for the World Economic Forum, Lithuanian and Albanian leaders express optimism that the two countries may escape the recession crippling much of Europe and the Baltic states.
    Lithuania's President Valdas Adamkus said on Thursday (January 29) he felt optimistic about the country's response to the global economic crisis.
    His optimism was matched by Albanian Prime Minister Sali Berisha who said Tirana had achieved higher investments than China in the last 2 years.
    Speaking in the Swiss resort of Davos where the World Economic Forum is being held, Adamkus said Lithuania had so far avoided recession and that although the austerity measures imposed by Vilnius were unpopular they were achieving positive economic results.

    "Lithuania is not in recession. Latvia and Estonia yes. This is where we make a distinction. I believe the crisis we feel the impact on it, that's for sure, but like I say. I mean we are at the threshold of real crisis," he said.

    "So far we are fortunate. We undertook our austerity programmes.
    Some of the people definitely unhappy because they feel that this is too rigid. Probably too much demanded, actually from the general public to sacrifice. But I personally believe the results are good, we are still holding the line," Adamkus added.
    The President's remarks follow public dissatisfaction in Lithuania over raised taxes and cuts in budget spending which form part of the government's austerity plan.
    Demonstrations in the Lithuanian capital turned violent two weeks ago (January 16) as protesters pelted the Baltic state's parliament with stones over government cuts in social spending to offset the economic slowdown.
    Lithuania's economy shrank 1.5 percent year-on-year in the last quarter of 2008, the first contraction since 2000.
    The Lithuanian government has previously said it would not exclude asking the International Monetary Fund (IMF) for assistance if the country's budgetary situation worsens.
    Berisha said Albania might have other problems but was not badly affected by the global economic crisis.

    "Albania, it's not affected by this financial crisis, because fortunately this financial crisis got Albania, a classic one, that is not so financial. The growth is around 9 percent and I am optimist. We want remain and earned it but we are doing every best. We are the lowest fiscal burden country in Europe," he said Berisha added that Albania was even experiencing some economic growth.

    "We are investing, what I Iisten yesterday from Chinese prime minister, they were investing 16 percent of GDP in 2 years. We are investing 18 percent of GDP in 2 years," he added.
    Whilst the world's business and political elite experienced a more low key forum in the shadow of the global financial meltdown, Berisha said Albania's economy was on solid ground.

    "This is unusual forum, but this year is more unusual than ever, because it is organised in the time of unprecedented world crisis. I have the pleasure to say that Albanian economy is solid and its politics are based in investments in infrastructure. I don't think that any previous government had spent so much in infrastructure," he said.
    A solid economy would help Albania in its bid to apply for EU membership, something the government has suggested may happen this year.
  • Copyright Holder: FILE REUTERS (CAN SELL)
  • Copyright Notice: (c) Copyright Thomson Reuters 2011. Open For Restrictions - http://about.reuters.com/fulllegal.asp
  • Usage Terms/Restrictions: None
Register