Sinkevičius rules out tax hikes that could spark public backlash

Lithuania’s Democratic Union “For Lithuania” leader Virginijus Sinkevičius has ruled out considering tax increases that could provoke public discontent, he said in an interview with LRT’s “Dienos tema” programme.

Sinkevičius, whose party joined a new ruling coalition with the Lithuanian Social Democratic Party (LSDP), the Lithuanian Farmers and Greens Union, and the Christian Families Alliance, discussed the formation of the government and policy priorities.

Asked whether he had considered taking on the role of foreign minister during coalition talks, Sinkevičius confirmed that the possibility was discussed but was not formally on the table. He stated that such a decision would require coordination with the president, adding that he would have seriously considered the position if it had been offered.

He also addressed coalition negotiations, which he described as swift despite their complexity. The parties agreed on a shared programme with minimal disagreements, with a strong focus on demographic policies and family support packages. Sinkevičius emphasised that investing in families is a matter of national survival, warning that short-term fiscal calculations could lead to long-term economic decline.

When asked about reinstating a childcare benefit cap—previously set at one parent’s income—Sinkevičius estimated the cost at around €70 million. He suggested that funds could potentially be drawn from the reserves of “Sodra” (Lithuania’s state social insurance fund), which currently holds around €300 million in unused contributions. However, he acknowledged that the finance minister has raised concerns about using these reserves, as they help maintain fiscal discipline and borrowing stability.