Lithuania is yet to inform Brussels about the Law on Real Estate for the European Commission to unblock 26 million euros in Recovery and Resilience Facility (RRF) funding.
Lithuania would risk losing hundreds of millions of euros in support in the future if the real estate bill were not passed or if this and other laws were not properly implemented, Deputy Finance Minister Vaida Markevičienė told BNS.
Her comment comes amid President Gitanas Nausėda's criticism of the government's delay in tabling a tax reform package to the parliament, saying that Lithuania risks losing hundreds of millions of euros in RRF funding.
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"The process is such that by the end of October we have to officially inform [the Commission] of the submission [of the real estate bill to the parliament] and explain the logic of the law, what we are aiming for and what the effect will be, and to justify that the change is in line with the essence of the reform," the vice minister told BNS.
In its decision to withhold part of the funds, the Commission said more changes were needed, including to the property tax, according to Markevičienė.
The Commission has already transferred more than half a billion euros to Lithuania this year, but withheld 26 million euros due to the country's failure to "satisfactorily fulfil two milestones related to taxation".
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