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Lithuania election: Opposition parties heading for win | |
(about 20 hours later) | |
An opposition coalition is set to win Lithuania's election, with budget cuts and joining the euro the key issues. | |
With three-quarters of votes cast on Sunday counted, PM Andrius Kubilius's government looked set to be ousted. | |
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. | |
The three groups were on course to win 78 of 141 seats in parliament. | |
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 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, 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. |
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. |
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. |