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| Lithuania election: Austerity key in second-round vote | Lithuania election: Austerity key in second-round vote |
| (about 1 hour later) | |
| Lithuanians are voting in the second round of national elections, with budget cuts and joining the euro seen as key issues. | |
| Polls opened at 07:00 (05:00 GMT), with half the seats being contested. | |
| Two centre left parties, the Labour Party and the Social Democrats, finished first and second in the first round on 14 October. | Two centre left parties, the Labour Party and the Social Democrats, finished first and second in the first round on 14 October. |
| PM Andrius Kubilius' governing conservatives, unpopular for cutting pensions and public wages, came third. | PM Andrius Kubilius' governing conservatives, unpopular for cutting pensions and public wages, came third. |
| Having won 34 seats in the first round, Labour and the Social Democrats hope to win enough of the 67 seats available on Sunday to allow them to form a coalition government. | Having won 34 seats in the first round, Labour and the Social Democrats hope to win enough of the 67 seats available on Sunday to allow them to form a coalition government. |
| Nuclear affordability | Nuclear affordability |
| Lithuania's 3.3 million inhabitants face an unemployment rate of 13% and declining living standards, as well as high energy costs since the country closed its Soviet-era nuclear power plant in 2009. | Lithuania's 3.3 million inhabitants face an unemployment rate of 13% and declining living standards, as well as high energy costs since the country closed its Soviet-era nuclear power plant in 2009. |
| They voted against government plans to build a new nuclear power station - seen as a way of cutting dependence on imported Russian energy - in a referendum held at the same time as the first round of elections. | They voted against government plans to build a new nuclear power station - seen as a way of cutting dependence on imported Russian energy - in a referendum held at the same time as the first round of elections. |
| Opposition parties had questioned the plant's affordability. They have promised to improve the ex-Soviet state's strained relations with Russia, still Lithuania's biggest trade partner. | Opposition parties had questioned the plant's affordability. They have promised to improve the ex-Soviet state's strained relations with Russia, still Lithuania's biggest trade partner. |
| The populist Labour Party, founded by Russian-born millionaire Victor Uspaskich, won 18 seats in the first round of voting, while the Social Democrats won 16 seats and the ruling Homeland Union 13. | The populist Labour Party, founded by Russian-born millionaire Victor Uspaskich, won 18 seats in the first round of voting, while the Social Democrats won 16 seats and the ruling Homeland Union 13. |
| Led by former finance minister Algirdas Butkevicius, the Social Democrats have promised to raise the minimum wage, make the rich pay more tax and put back euro entry until 2015, a year later than the government hopes. | Led by former finance minister Algirdas Butkevicius, the Social Democrats have promised to raise the minimum wage, make the rich pay more tax and put back euro entry until 2015, a year later than the government hopes. |
| But analysts say there will be little room for fiscal manoeuvre. Among the EU's poorest countries, the Baltic state needs to borrow 7% of its GDP - some 7.6bn litas (£1.75bn) - next year to refinance debt and fund the deficit. | But analysts say there will be little room for fiscal manoeuvre. Among the EU's poorest countries, the Baltic state needs to borrow 7% of its GDP - some 7.6bn litas (£1.75bn) - next year to refinance debt and fund the deficit. |
| Deficit tamed? | Deficit tamed? |
| Mr Kubilius came to power in 2008, just as the global financial crisis was bringing a dramatic end to an extended Lithuanian boom fuelled by cheap Scandinavian credit. | Mr Kubilius came to power in 2008, just as the global financial crisis was bringing a dramatic end to an extended Lithuanian boom fuelled by cheap Scandinavian credit. |
| He staved off national bankruptcy with a drastic austerity programme as economic output dropped by 15%, unemployment climbed and thousands of young people emigrated in search of work. | He staved off national bankruptcy with a drastic austerity programme as economic output dropped by 15%, unemployment climbed and thousands of young people emigrated in search of work. |
| The budget deficit has since been tamed and GDP reached growth of 5.8%. | The budget deficit has since been tamed and GDP reached growth of 5.8%. |
| Lithuania's approach won praise from other governments and the International Monetary Fund, but analysts say the rebound came too late to translate into a political revival for the conservatives. | Lithuania's approach won praise from other governments and the International Monetary Fund, but analysts say the rebound came too late to translate into a political revival for the conservatives. |
| Delaying euro entry means the country could run a bigger deficit than euro accession rules permit. | Delaying euro entry means the country could run a bigger deficit than euro accession rules permit. |