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Lithuania election: Austerity key in second-round vote Lithuania election: Opposition parties heading for win
(about 20 hours later)
Lithuanians are voting in the second round of national elections, with budget cuts and joining the euro seen as key issues. An opposition coalition is set to win Lithuania's election, with budget cuts and joining the euro the key issues.
Polls opened at 07:00 (05:00 GMT), with half the seats being contested. With three-quarters of votes cast on Sunday counted, PM Andrius Kubilius's government looked set to be ousted.
Two centre left parties, the Labour Party and the Social Democrats, finished first and second in the first round on 14 October. The Labour Party and the Social Democrats started talks with the right-wing populist Order and Justice movement after a first round of voting on 14 October.
PM Andrius Kubilius' governing conservatives, unpopular for cutting pensions and public wages, came third. The three groups were on course to win 78 of 141 seats in parliament.
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. Incomplete results on Sunday evening gave the Social Democrats 38 seats, Labour 29 and Order and Justice 11.
Mr Kubilius's Homeland Union conservatives were on course to finish as the second biggest party, with 32 seats, according to unofficial results.
Voter turnout was said to be around 35%.
Labour's leader, Russian-born millionaire Viktor Uspaskich, said the figures meant Social Democrat leader Algirdas Butkevicius was "certain" to become the Baltic state's next leader.
Mr Butkevicius has 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.
Nuclear affordabilityNuclear 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, which were for half of parliament's seats.
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.
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?
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.