Lithuania’s main centre-right opposition party claimed victory in a parliamentary election, but faced tough talks to form a majority coalition as the former Soviet state heads for a sharp economic slowdown.
The vote in Lithuania, a European Union and NATO member since 2004, took place amid anger over double digit inflation and fears the global credit crunch and financial crisis could hit growth and jobs.
With votes counted in 1,739 districts out of 1,910 in the second round vote, the centre-right Homeland Union won a further 27 seats to add to 18 won in the first round two weeks ago.
This would give it 45 seats, well short of a majority in the 141-seat parliament and leading to the need for coalition talks.
Homeland Union leader Andrius Kubilius said the voting showed his party had won the vote and that it would lead talks on forming the new government.
“I see a very good chance to form a working government for the cause of change,” Kubilius told reporters.
Kubilius, prime minister in 1999-2000, was expected to woo two smaller centre-right groups – the opposition Liberal Movement and the Liberal and Centre Union, a member of the outgoing coalition.
Economic slowdown
Another potential partner is the National Resurrection Party, led by a popular television talent show host, which came a surprise second after the first round.
Kubilius told reporters his party wanted the posts of finance minister, economy, defence and foreign affairs, with the rest being shared by coalition partners.
Kubilius is set to become prime minister as Lithuania’s economic growth is trailing off sharply and its public finances are worsening, both problems if the country wants to achieve its stated goal of adopting the euro in 2011.
Kubilius has said he would soften the blow of the slowdown by reducing personal income tax, at the same time closing other tax loopholes so budget revenues do not suffer too much.
He has said he would let the budget deficit rise, but keep it below the limit set by the European Union of 3% of gross domestic product (GDP).
Relations with Moscow could become cooler as the centre-right has reacted most sharply to what it sees as a newly aggressive Russia after the conflict with Georgia.
But the new government faces likely growing dependence on Russian energy resources after a planned shutdown of the Soviet-era Ignalina nuclear power plant at the end of 2009.
Current ruling party, the centre-left Social Democrats, were set to win a further 13 seats, bringing their tally to 23, a defeat for Prime Minister Gediminas Kirkilas.
President Valdas Adamkus has said he planned to start talks on the new government early next week.
Photo: Rolandas Paksas (R) of the political party Order and Justice’s and Europe’s only leader to be impeached and removed from office casts his votes during elections in Lithuania (Reuters)” title=”Rolandas Paksas (R) of the political party Order and Justice’s and Europe’s only leader to be impeached and removed from office casts his votes during elections in Lithuania (Reuters)
Source: Reuters
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