H.E. Mr. Vidmantas Purlys:

It is a great pleasure and honour to address the committee and I thank the members very much for the invitation. I will structure my presentation in three parts. First, I will briefly introduce Lithuania as a member of the European Union and outline our approach to the Presidency. Second, I will outline the context for the EU legislative process in the second half of 2013. Third, I will inform the committee of the plans and priorities of the Lithuanian Presidency.

I congratulate Ireland and the joint committee on an excellent Presidency. We are very happy about co-operation with Ireland in preparation for the Presidency, as trio partners and bilaterally, among capitals and in Brussels. Co-operation between Lithuania and Ireland is important to ensure continuity at EU level.

This is our first Presidency of the Council of the European Union. We believe and feel we are well prepared to steer forward the EU agenda. We have benefited greatly from the European Union and work hard to contribute to strengthening the Union's credibility, promoting growth, providing safety to the citizens and enhancing the international standing of the Union. In Lithuania, there is broad public approvalof our membership of the Union, as well as political party support on the European policy priorities, which cut across the political spectrum.

Lithuania developed successfully over the last 23 years since the restoration of independence in 1990 after 50 years of Soviet occupation. The last two decades were years of radical structural reforms, economic growth and modernisation. Although we experienced an economic downturn in 2009, we emerged strongly in 2010 and grew by over 3% in the last couple of years. Today Lithuania is one of the fastest-growing economies in the EU.

We believe it is important to engage closely with EU institutions and the member states since the EU legislative process is a collective exercise. We will be counting on both our preparation and the engagement of all our EU and worldwide partners in moving the EU agenda forward across a broad range of sectors. Lithuania will be a result-oriented and honest broker.A busy and exciting period is ahead of us. The Lithuanian Presidency is the first of a Union with 28 member states. We are very glad to welcome Croatia as a member state. The Lithuanian Presidency will mark the peak of the legislative activity in the current cycle, with European Parliament elections coming in May 2014. We will, therefore, have to deal with an agenda that is much busier than usual.

The Lithuanian Presidency comes last in the current EU budgetary cycle, meaning that decisions will have to be taken to give effect to the multi-annual financial framework for the period 2014 to 2020 and EU budget 2014. To have budgets adopted and money flowing in to concrete programmes is critical to the member states and EU citizens, especially in the current economic climate. This requires significant concerted efforts by the EU institutions. The MFF-related legislative package comprises 75 pieces of legislation. Fifty-nine of these files have to be closed by 1 January 2014. We should work hard to ensure the timely adoption of an EU budget for 2014.

The Irish Presidency has done a great job. Lithuania will continue on the same track, focusing on three main areas. We will work for a credible, growing and open Europe. The European Union's economic credibility is built on our ability to ensure financial stability and sound public finances. To this end, we must implement an enhanced framework for economic governance, deepen economic and monetary union, develop the banking union and protect the financial interests of the Union and its member states.

The banking unionwillbe a top priority for us. We will focus on reaching final agreement with the European Parliament on a bank recovery and resolution directive and on deposit guarantee schemes. The Commission's proposal on the single resolution mechanism was announced yesterday. On this file, we would like to make as much progress as possible with a view to completing this dossier by the end of the parliamentary term.

Financial market reform is also important. We hope it will be possible to reach agreement with the Parliament on the directive and regulation of markets in financial instruments, the Omnibus II directive, the market abuse regulation and the regulation on central securities depositories.

The framework for economic governance will be effective only when properly implemented. Therefore, before considering new elements, we need to ensure that the potential of initiatives such as the European semester, Stability and Growth Pact, six-pack and two-pack is fully realised. We await Commission proposals on ex ante co-ordination and the convergence and competitiveness instrument, and will take discussion of these issues forward in accordance with the decisions by the June 2013 European Council.

On credibility, we are determined to strengthen the Union's efforts in the fight against tax fraud and tax evasion so as to protect the financial interests of the Union and its member states. We will seek agreement on a revised savings taxation directive and seek progress on some other legislation in this area.

Stability in financial markets will help restore confidence. However, more needs to be done to secure sustainable economic growth. Therefore, the second priority of the Lithuanian Presidency will be a focus on growing Europe. We need growth that results in real jobs for the people of Europe. We need growth that enhances European competitiveness. To this end, we will redouble our efforts on the Europe 2020 strategy and on effective implementation of the compact for growth and jobs. We will ensure that the next European semester cycle gets under way in good order. We expect the annual growth survey to be presented by the European Commission in November and we will steer discussion in the Council on this issue.

Growing Europe also means going further to complete the Single Market. As holders of the Presidency, we are keen both to complete the Single Market I package - with particular emphasis on the implementation of the services directive - and make good progress on the Single Market II initiatives, notably on product safety and market surveillance regulations, electronic invoicing in public procurement and reducing the cost of deploying broadband communications.

Specifically, on the digital single market, our aim is to establish a clear link between the digital agenda, integration of the services markets, and a SME-friendly regulatory environment. Cutting the cost of communications is critical for business, especially SMEs, so we need to reach agreement on trans-European telecommunications guidelines and e-identification. The digital market will not be effective without proper cyber-security so we will be considering also this particular issue.

The Presidency will seek to ensure that the implementation of smart regulation initiatives promote favourable environment for business, in particular SMEs.

The next priority is the internal energy market. The 2014 deadline for its completion is rapidly approaching. We will focus on implementation of the third energy package and the list of projects of common interests. The completion of the energy market in Europe will allow the main costs for companies and economies more affordable and make our own economies more competitive. We in Lithuania are very well known as being cut off from the rest of the Union and we know what it means not to be integrated into the internal energy market. In this regard, Europe needs to speak with one voice on external energy relations and our interaction with the major energy suppliers.

We firmly believe that progress on all these files will create employment opportunities, for young people in particular. We will put special emphasis on implementing the youth guarantee and youth employment initiative. We will initiate discussion and seek the adoption of the Council declaration on the European Alliance for Apprenticeships.

Research and innovation also drive growth and competitiveness. We want to develop a genuine single market for knowledge, research and innovation. Policy debate on a European research area will play an important part at the October European Council meeting.

The EU's regional market strategies also contribute to growth, so our Presidency will review progress in the strategies for the Baltic Sea and the new regions.

The last priority of the Lithuanian Presidency will be to strengthen the EU as a global model of openness and security. Croatia joined the EU on 1 July 2013 - the first day of our Presidency - but that does not make the enlargement portfolio any thinner. Current EU negotiations with Montenegro and Turkey will be further advanced, as will the European perspective of other western Balkan countries, including the start of EU accession negotiations with Serbia, as decided by the European Council.

Naturally, we place importance on the advancement of the EU's eastern partnership. November's eastern partnership summit in Vilnius should be an opportunity to sign an association agreement, including a deep and comprehensive free trade agreement with the Ukraine. Similar agreements with Moldova, Georgia and Armenia should also be initialled. We might also be able to look at advancing the process of visa liberalisation and facilitation for some eastern partnership countries.

Free trade agreements have the potential to foster economic growth and bring jobs to Europe. The Presidency will aim to accelerate talks on free trade agreements not only with the eastern partners but also with the Mediterranean countries and, most importantly, strategic partners like the US and Japan. That is also important to Lithuania nationally. Lithuania's exports make up 80% of our GDP. We have a small and open economy, so free trade is significant in our case.

Aiming at the effective control of European borders, Lithuania will seek to make progress in the Council on the so-called smart borders package. Other elements of an open Europe include development, continuing preparations for the UN General Assembly, and preparing Council conclusions on financing for development, as well as integrating the transition experience of member states in the EU's development co-operation.

In conclusion, Lithuania will devote particular attention to the parliamentary dimension of EU co-operation. Nine major parliamentary forums will be held in Vilnius, including three interparliamentary conferences and six meetings of the chairpersons of parliamentary committees. The Chairman and his colleagues are very welcome to visit Vilnius. I hope the Chairman enjoyed his previous stay there and had a productive discussion.

Parliamentary co-operation is of particular significance during the European Year of Citizens, which will conclude by holding a major civil society forum in Vilnius in December.

I thank members of the joint committee for their attention and look forward to their comments or questions.