design instead of assembly or production. and the conditions we have created for foreign investors are rather good. lithuania ’ s business environment has earned good scores in global rankings : we rank 11th in the world bank ’ s doing business ranking and are the first among central and eastern european countries. however, this is not enough. of course, the increasing transparency of regulation and the lightening burden of bureaucracy are significant achievements, but are not a panacea. one of the essential challenges in competition for foreign investment is the relatively low labour productivity, which has been growing at a twice slower pace compared to wages. real wages in lithuania have increased by 54 % over the past decade, as opposed to an increase of just 25 % in productivity. i am convinced that the solution to this problem requires a consistent and firm public policy intervention. i am therefore very happy that professor marcel fratzscher, president of the german institute for economic research, will deliver the keynote speech soon. the professor is among the loudest voices in germany highlighting the importance of public investment in enhancing potential economic growth. it is the targeted and strategically planned long - term public investment that can help transform lithuania ’ s economy and provide a strong positive impetus to the growth of labour productivity and, consequently, the economic potential. and precisely now is the right time to harness public investment for the implementation of real change. firstly, the pandemic has triggered a structural shock to the global economy and it is therefore likely that it will anchor interest rates at current lows for some time. economic logic dictates that cheap money should be used wisely. 2 / 4 bis central bankers'speeches secondly, public investment has gained importance as we live in a state of uncertainty. the pandemic forces businesses to shelve investment decisions : for instance, we estimate that private sector investment will decrease by more than 13 % in lithuania this year. i am also concerned about that as a euro area monetary policymaker, given that sluggish business investment dampens the efficiency of accommodative monetary policy measures. hence, the general government should take much stronger action once we step into an unknown territory. according to the latest analysis by the international monetary fund, public investment is much more effective in periods of uncertainty compared to ordinary times, both as a driver of gross domestic product growth and as a catalyst for private investment. and, nonetheless, i would like to emphasise quality instead of quantity in this regard. public investment should be targeted and measured

terms of investment in this area. dear colleagues, the new reality has also led to tectonic shifts in the eu economic policy. 3 / 4 bis central bankers'speeches the creation of the eu recovery fund is a historic step towards european economic integration and financial solidarity. the fund earmarks nearly €2. 5 billion in grants for lithuania. the resources of the fund will be distributed in the light of the objectives elevated in europe to the top political level : digitalisation and the green deal. the creation of the fund also implies a historic opportunity for us. targeted use of the fund ’ s resources will not only let us contribute to the european cause. the objectives set by europe provide a good compass if we want to lay a new foundation for a more rapid long - term growth of lithuania ’ s economy. that is why i mentioned in the beginning of my speech that the issue of investment and innovation is, indeed, timely. we are witnessing structural changes and new plans for investment that can alter the reality of our economic life for decades ahead. today ’ s discussion has brought together a large number of competent professionals from lithuania and abroad. i believe that our conversation can provide an impetus to make better use of the emerging opportunities. lithuania, meanwhile, begins a new political cycle and, perhaps, some of the ideas that will be put forward will resonate with decision makers. thank you for your attention and i wish you a meaningful discussion. 4 / 4 bis central bankers'speeches