The prime minister of Lithuania, Algirdas Butkevičius, vowed to work closer with foreign investors to improve the country’s business climate. Mr Butkevičius, who was elected prime minister in December 2012, met with the foreign business community in February 2013, during an event organised by the German-Baltic Chamber of Commerce. During the meeting, Mr Butkevičius stressed the importance of advancing the Lithuanian economy by listening to the suggestions of foreign investors, and by improving dialogue between the business and science communities.

The prime minister was also looking to improve the efficiency of Lithuania's tax system. "Our specific steps in this regard will consist of consolidating the [level of] reporting to tax and regulatory authorities to avoid redundant reporting," said Mr Butkevičius. He also said that he would look for a more efficient application of IT solutions, "to speed up reporting and responses, and increase the transparency of businesses regulation."

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According to Mr Butkevičius, the Lithuanian government is dedicated to easing the regulatory burden and improving  co-operation between public entities, not only in terms of taxes, but also in other sectors that are important to entrepreneurs looking to invest in Lithuania.

The prime minister said that one of the biggest obstacles to attracting more inward FDI is the lack of knowledge about the country’s potential among the foreign investors. This year, however, the country will be in the spotlight, as it is will take over the EU’s presidency in July.

Lithuania currently ranks 27th in the World Bank's Doing Business ranking, but it still has room to improve when it comes to cutting red tape. It takes an average of 20 days to register a company in Lithuania, compared with an average of 12 days among Organisation for Economic Co-operation and Development (OECD) countries. The World Bank research also shows that investor protection is lower in Lithuania than the OECD average.

According to data from greenfield investment monitor fDi Markets, between 2011 and 2012, Lithuania had the highest number of crossborder investments in the Baltic region. Lithuania recorded 74 new projects in the period, compared with Estonia's 60 and Latvia's 34.