„What kind of regional policy do we want? (…) One that merely redistributes investments, or one that helps people build their lives where they have chosen to live? (…) Regional policy should not only be about allocating money to regions. It must be about people’s opportunities to live, work, create businesses, raise children, and see a future in their homeland,“ said the Minister of the Interior Martynas Katelynas at the opening of the “Regional Policy Forum 2026”.
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The discussion was held as Lithuania prepares for the new EU financial period: the National Progress Plan (NPP) for the upcoming period has begun to be prepared, and negotiations with the European Commission (EC) are underway regarding the multiannual financial framework regulations. The government program also foresees improving the management of the Regional Development Program – consolidating the budget manager functions, which are currently split among ministries, within the Ministry of the Interior (MoI).
Deputy Minister of the Interior Vaidotas Jakštas emphasized during the discussion that there can be many investment directions, and the investments themselves will not be enough to achieve all goals. Therefore, he indicated the need to select priority areas.
„Nowadays, the issue raised is security and resilience. We need to look at our capabilities to strengthen these areas, see how much can be invested, and what can be done so that we feel better as residents and that businesses feel more confident investing in Lithuania and in specific territories,“ stated V. Jakštas.
Another important direction, according to him, is living conditions and connectivity: communication, public transport, and public services.
„We should invest here. If we invest here, then other goals would be easier to achieve. In my opinion, connectivity, public services, and investments are very important. Together with security, they can make significant breakthroughs that are necessary. These are the main directions,“ he listed.
Deputy Minister of Finance Rūta Carik named strengthening human resources, attracting investments, and public services – public transport, healthcare, education, and preschool education – as the main directions.
„Probably, municipalities should agree among themselves on which of these goals and services are the most important, most needed today, and create those services together, join forces,“ said R. Carik.
The mayor of Plungė district, president of the Lithuanian Association of Municipalities (LSA) Audrius Klišonis considers demography the most important issue: to attract residents, education must be improved, investments made in high-value industry, and the third priority is municipal housing.
The president of the Lithuanian Confederation of Industrialists Vaidotas Janulevičius said that business sees transformation as the top priority, especially with the advent of new technologies and artificial intelligence.
„Second, of course, is human capital, and behind it lies everything colleagues talked about, i.e., education, science, better vocational training, human conditions. Without progress related to science, there is no future,“ said V. Janulevičius.
„The third thing, of course, is what colleagues also mentioned – defense and security. These are probably critical issues that allow for the formation of both people’s welfare and investments,“ he emphasized.
More freedom for regions – but with clear commitments
The discussion also asked whether investments alone are enough for a breakthrough or if rules – the legal framework and management model – must also change.
According to Jaroslav Narkevič, chairman of the Seimas Committee on State Administration and Local Authorities, the current system does not work well enough, but its improvement should not become an end in itself. He said it is necessary to strengthen the autonomy of regional development councils so that they receive information about the real needs of municipalities.
R. Carik assured that the ministry supports greater autonomy and bottom-up planning.
„When constructing the planning system for the new EU investment period, we really want to support even greater autonomy of regions and local governments,“ emphasized the deputy minister. – „The main breakthrough or leap we want to see is, first of all, investment efficiency.“
Therefore, in return, regions are primarily expected to agree on clear priorities: investments should not be fragmented into small projects, and planning must go beyond municipal boundaries.
„It should be decided at the regional level that here we have such a problem, such a shortage, such a lack of service, this many service users, and we can create or expand that service together without competing with each other but cooperating,“ said R. Carik.
According to her, investments should be made not in maintenance-demanding infrastructure but in real results.
„Projects should not be aimed at enabling a municipality to activate an unused unnecessary building or come up with something to do in a dilapidated old school. There must be a clear shortage, a clear problem, and clear measures to solve it,“ emphasized the deputy minister, adding that greater autonomy will come with greater financial and institutional responsibility.
No single breakthrough – municipalities must agree
That municipal agreement is not a given was also acknowledged by A. Klišonis: municipalities compete for education and healthcare specialists, and so far, a common solution has only been found for waste management.
„But even that was done and imposed from above,“ he noted.
However, the functional zones that appeared in the current funding period, he said, already allow municipalities to seek common ground.
„Our region is not large – 4 municipalities. For example, promoting tourism – one municipality alone is too small, it is not attractive, it cannot offer a good package, and only by working together can these things be sought,“ gave an example A. Klišonis, adding that there are examples of cooperation in public transport – in Tauragė and Alytus districts.
„Working together, you realize that alone you cannot make a big breakthrough. So, in this place, searching and working together gives such an opportunity,“ he added.
Meanwhile, the role of regional development councils was assessed critically by the LSA president.
„What regional development councils do now is good quality administration. Nothing more,“ he stated. – „At this point, it is possible to talk, and we must understand that only by talking can we find common ground.“
In turn, V. Janulevičius emphasized that rules must also change in the business environment: industry primarily needs a unified energy policy, as electricity prices in municipalities vary depending on their size.
„If we look at each municipality separately, there is no common approach that electricity prices should be similar in every municipality. (…) Usually, small municipalities pay more, large municipalities pay a different price,“ he explained.
His second proposal is human capital and closer scientific ties with regional industry.
„This is a common problem. (…) The same science from big cities could help those regions develop industrial competitiveness, solve issues, and not just try to write scientific papers but descend into the practice where our economic strength lies,“ he said.
As Lithuania prepares for the new EU financial period after 2027, participants of the “Regional Policy Forum 2026” agreed that it will not be possible to implement all proposals, so priorities must be chosen. The priorities most often mentioned by discussion participants were security and resilience, human capital, connectivity, and public services. It was also emphasized that although regions are promised more autonomy in bottom-up planning, in return clear priorities, cooperation beyond municipal boundaries, and investments in real results are expected. Discussion participants unanimously acknowledged that neither municipalities nor businesses will achieve a breakthrough alone – only agreements, functional zones, and a common approach, starting with energy and ending with public services, can give regions the necessary boost.
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