EU OKs Part of Lithuania's €514.5M NextGenEU Request

European Commission

Today, the Commission assessed Lithuania's fourth payment request under the Recovery and Resilience Facility , the centrepiece of NextGenerationEU.

The Commission found that Lithuania satisfactorily completed 25 out of 26 milestones and all 14 targets set out in the Council Implementing Decision for the third, fourth and fifth grant instalments.

The 514.5 million payment request covers important steps in the delivery of reforms and investments that will drive positive change for citizens and businesses in Lithuania in the areas of public finance, education, energy efficiency, research and health.

Flagship measures include:

  • Innovative digital tools and teaching methods in schools, including a new platform connecting schools with startups and innovators to test creative solutions. Digital skills are being improved for all teachers and students, from early childhood to university. The purpose is to promote the use of digital content and technological tools in learning processes to improve results and prepare students for their future.
  • A streamlined long-term care model, to simplify access to integrated social and healthcare services, with a focus on creating a one-stop-shop for efficient, patient-focused support.

However, the Commission also assessed that one milestone related to personal income taxation and social insurance contributions (M147) has not been satisfactorily fulfilled.

As a result, the Commission can propose to suspend the payment related to this milestone. Lithuania will then be granted additional time to complete the outstanding milestone, while still receiving a partial payment for the milestones that have been successfully fulfilled.

This approach is in line with the RRF Regulation and the Commission's implementation guidelines published on 21 February 2023.

Next steps

Lithuania submitted its fourth payment request on 4 August 2025. The Commission has now sent its positive preliminary assessment of the milestones and targets that it considers satisfactorily fulfilled to the Economic and Financial Committee (EFC) , which has four weeks to deliver its opinion.

In parallel, the Commission has communicated to Lithuania the reasons why it considers the above-mentioned milestone not to be satisfactorily fulfilled. Lithuania now has one month to submit its observations to the Commission.

Should the Commission, following Lithuania's observations, confirm its assessment that the milestone in question has not been satisfactorily fulfilled, it will suspend the corresponding part of the payment. The suspended amount will be determined by applying the Commission's methodology for payment suspensions (outlined in Annex II of the Communication published on 21 February 2023), which applies to all Member States, and which puts significant weight on key reform milestones.

From that moment, Lithuania will have a period of six months to take action and fulfil the outstanding commitment. At the end of this period, the Commission will assess whether this milestone has been satisfactorily fulfilled. If so, it will lift the suspension and proceed with the payment of the suspended amount.

The payment to Lithuania for the already greenlighted milestones and targets can take place following the EFC's positive opinion and the adoption of a payment decision by the Commission.

Background

The Lithuanian recovery and resilience plan includes a wide range of investments and reforms. The plan will be financed by €3.85 billion, of which €2.3 billion are grants and €1.55 billion are loans.

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