community what is community

The World Bank’s Doing Business Report which was announced yesterday demonstrates that Lithuania ranks 9 and remains among the EU Member States that are most favourable for business. In the ranking tables, Lithuania has overtaken Belgium, France, Portugal, the Netherlands, Austria and other EU Member States. Higher ranking was given to Denmark, United Kingdom, Finland, Sweden, Germany, Latvia and Estonia. In the general rating of the countries of the world, Lithuania ranks 27 out of 183.

“Because of changes in the Doing Business evaluation methodology we cannot adequately compare the results of the last and the current year. This is a very important index and the Government seeks to permanently improve it. Lithuania’s position in the rating tables was mainly determined by the decisions the adoption of which depends on the Seimas. I very much hope that this signal fr om Doing Business will encourage the Tripartite Council and the Seimas to make responsible decisions,” said Minister of Economy Rimantas Žylius.

Due to changes in the methodology, both the last and the current year’s ratings of all countries were recalculated. Therefore, the change in rank of some countries was moved up or down with even 5–7 positions, and Lithuania’s rating was moved down with two positions (rank 25 instead of previously announced rank 23 in the last year’s rating). Compared to the last year’s ranking, Estonia, the reform leader among the Baltic States, was moved down with six positions.

“Getting Electricity” indicator has been included in the transformed rating calculation methodology. Despite no changes in the regulatory environment of Lithuania, fr om now on the same procedures are subject to a much more detailed evaluation. Moreover, the requirements for three more indicators have been changed.

“It is obvious that the changed methodology has substantially changed the result tables of Doing Business and influenced the Government plans to improve Lithuania’s positions. Yet, it’s not only the methodology that matters because some important decisions towards improving the business environment were not fast enough and will only be reflected in the next year’s report,” said Minister of Economy Žylius.

An action plan covering 7 areas wh ere improvement towards progress is required will be submitted to the Government as recently as this week.

To increase its positions in “Starting a Business” which is among the most important indicators the Ministry of Economy proposed to eliminate the requirement on authorized capital for lim ited liability companies, which would be an important reform in terms of Doing Business due to eliminated procedures, reduced costs and facilitated company establishment process.

Source: ukmin.lt