Many Lithuanian households struggle to afford good-quality housing. The housing stock is dominated by owner-occupied, multi-apartment buildings that are energy inefficient and face persistent quality gaps. While average household spending on housing is relatively low, house prices have been rising, and many households cannot afford to move to higher quality homes that better suit their needs.

The Slovak economy has been relatively resilient to the energy crisis, but growth has slowed amid high inflation, weakening foreign demand and tightening financial conditions. The pandemic and the energy crisis have deteriorated public finances; steady fiscal consolidation is now needed to rebuild fiscal buffers and improve long-term fiscal sustainability in the face of rapid population ageing. Sustaining economic convergence and facilitating inclusive structural change requires improving skill provision at all stages of the learning cycle, fostering the domestic innovation capacity and improving the business environment.

The Slovenian economy proved resilient following the energy crisis and devastating floods. Growth is projected to pick up gradually. The labour market remains tight, with widespread labour shortages leading to strong wage growth. Inflation has slowed but remains elevated in services. Fiscal consolidation is needed to rebuild fiscal buffers and address emerging pressures from ageing-related cost, notably on pensions. Productivity growth would benefit from lifting remaining barriers in retail trade and restrictions on professional services. Female labour market participation is high, but the gender wage gap could be reduced further through adjustments in the tax and benefit system. Greater harmonisation of carbon prices, notably the removal of reduced tax rates for fossil fuels, is needed to reach emissions targets. High homeownership rates and a limited rental market, combined with insufficient residential construction, constrain housing options for many, especially the young and vulnerable. Enhancing housing supply can be achieved by streamlining spatial planning and permitting systems, reforming housing taxation, improving rental regulations, expanding access to mortgage finance, and promoting the development of social and affordable housing. SPECIAL FEATURE: ADDRESSING HOUSING MARKET CHALLENGES

Lithuania is experiencing rapid demographic change, with the population ageing and significantly shrinking in recent decades. This trend has put pressure on the provision of public services, especially at the municipal level, and is expected to continue in the coming years. Ongoing efforts are made by Lithuania to improve the delivery of municipal services with the aim to mitigate territorial disparities and foster social inclusion. In this perspective, shared public service provision is viewed as a way to enhance the accessibility, affordability and quality of essential public services. This report provides recommendations and an action plan to address challenges inherent to the legal, fiscal and institutional frameworks for shared municipal service provision in Lithuania, while taking stock of these different challenges. The report also provides two roadmaps for piloting primary healthcare and long-term care services in Tauragė+ functional zone (Jurbarkas, Pagėgiai, Šilalė, Tauragė municipalities) through shared municipal service provision. The report draws lessons from peer country experiences, and in particular Finland, where inter-municipal cooperation has been used successfully for decades.

Ageing populations, changing labour markets, and climate change are affecting economies and societies across OECD countries. What challenges do these “megatrends” pose for social protection systems? What are the implications of these trends for the coverage, the effectiveness, and – critically – the funding of social protection today and tomorrow? With an eye towards informing future reforms, this report presents a broad stocktaking of population ageing, changing patterns of labour supply, new and emerging employment forms, changes in household composition and unpaid work, the effects of new technologies on employment and wages, and the effects of climate change and the net zero transition on social protection systems in OECD countries.

Italy has weathered recent crises well. A strong fiscal policy response, enhanced competitiveness and improved banking sector health have supported growth in recent years.

Lithuania’s economy is performing strongly and converging fast towards the most-developed OECD countries, driven by growing exports and investments and supported by a sound macroeconomic framework as well as a friendly business climate. For the first time since renewed independence, more people are settling in the country than leaving it. The peak of the COVID-19 crisis was one of the mildest in Europe, thanks to a well-functioning health system, effective containment measures and a relatively short lockdown. Yet prosperity is unevenly distributed across people and places. Further reform could help sustain achievements to date. Providing adequate income support for the needy, especially the elderly, and high quality social services, while improving integration into the labour market, could help reduce poverty. Stronger local and regional institutions, better education and skills particularly in rural areas and a more flexible housing market could make regional development more balanced. Finally, strengthening the regulatory framework, reducing the scope of state-owned enterprises and moving towards a low-carbon economy will help raise productivity while ensuring resilient and sustainable growth. SPECIAL FEATURES: REDUCING POVERTY; FOSTERING REGIONAL DEVELOPMENT

This edition of the OECD Secretary-General's Report to Ministers outlines the main achievements of the OECD in 2020, notably the Organisation’s efforts to help manage the COVID-19 crisis and pave the way towards a stronger, more inclusive, resilient and green recovery. It describes the OECD’s work across major policy areas, with a focus on health, employment, inequalities, economics and tax, education, and the environment, among others. The report outlines the activities of the Secretary-General and his office, as well as those of OECD directorates, the Secretariats of Entities within the OECD family and OECD Social Partners.

The Latvian government established the Housing Affordability Fund in mid-2022, a long-term self-sustaining financing model to channel investment into affordable housing. The fund is now being scaled up to ensure lasting impact on the Latvian housing market. This report identifies options for institutional arrangements, funding and financing opportunities, and operational tools to achieve this aim.

The Economic Commission for Europe (ECE) Committee on Human Settlements carried out this study on Lithuania's housing sector as part of its analysis of housing sector reform in countries with economies in transition. This report arose from two fact-finding missions by an international team of experts to Lithuania between 21-24 February, and 16-19 May 1999. The report's objective was to identify positive trends and problem areas, so as to be able to assess the implementation of national policies and strategies, and the social and economic consequences of housing reform for the Lithuanian people. The study concludes that the long term development of the Lithuanian housing sector will depend on the further restructuring of its legal, financial and institutional frameworks. Accelerating the restructuring of the housing sector along market principles is linked to the stabilisation of the economy. Growth and investment in housing can be maintained if the sector becomes sufficiently competitive and attractive.