As the crucial meeting of the European Council approaches, the Lithuanian Trade Union Confederation (LPSK) and the Lithuanian Trade Union “Solidarumas” have sent a joint appeal to President Gitanas Nausėda and Prime Minister Inga Ruginienė. Workers’ representatives warn that attempts to revive Europe’s economy by reducing social guarantees are a dangerous path.

The European Council meeting taking place in Brussels on 19–20 March 2026 will outline the direction of Europe’s economy for the coming decade. However, the Lithuanian trade unions note worrying trends – pressure from business lobbyists to weaken labour law under the guise of “reducing the burden on business.”

A “race to the bottom” or an investment breakthrough?

Trade unions emphasize that two opposing visions are currently clashing in Brussels. One is based on dismantling regulatory protections, while the other focuses on investment in people and innovation.

“Proposals to weaken labour law and collective agreements will not create an innovative economy. They will only provoke a ‘race to the bottom,’ undermining workers’ purchasing power and social cohesion,” the joint statement says.

The appeal stresses that Europe’s real problems do not stem from maintaining workers’ rights and decent jobs, but from a systematic lack of investment in research, infrastructure, and public services. For comparison, the EU invests around 1.49% of GDP in research and development, while in the United States this share reaches 2.7% of GDP.

Four priorities for Lithuania’s position

Trade unions call on Lithuania’s leaders to take a firm stance at the European Council meeting and defend the following priorities:

• Support for businesses should be granted only if collective bargaining is respected and decent conditions are ensured during the digital and green transitions.

• Public procurement rules must abandon the “lowest price” principle. Government contracts should go to socially responsible companies that pay fair wages.

• The “Made in Europe” strategy should be financed through new EU instruments aimed at technological breakthroughs, not through lowering social standards.

• Decent wages are not a burden – they are the foundation of domestic demand and an incentive for companies to increase productivity rather than seek the cheapest labour.

People are not an obstacle but the engine of innovation

Geopolitical tensions and rising energy costs are already putting pressure on Lithuanian industry, but trade unions warn that managing the crisis solely at the expense of workers will increase the risk of emigration and deepen social divisions.

“True competitiveness must serve society, not blind profit-seeking. A person who is worried about tomorrow cannot be the engine of innovation and progress,” the appeal concludes.