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Three Lithuanian centre-right parties on Monday signed a coalition agreement to replace the centre-left cabinet after winning last month's election on pledges to tackle the coronavirus crisis and boost investment. Led by conservative ex-finance minister Ingrida Simonyte, the coalition said it will seek to cut red tape, accelerate the economy's modernisation and legalise same-sex partnerships in the EU Baltic state. They also pledged to keep Lithuania firmly rooted in the eurozone and NATO and "defend those fighting for freedom around the world, from Belarus to Taiwan", in a reference that risks irking China. Simonyte said she will immediately start talks with the other two parties, which are also led by women, on who will fill the cabinet seats. The new government is expected to be sworn in in December. The general election and coalition talks were overshadowed by record spikes in coronavirus infections which strained hospitals, although the Lithuanian mortality rate is below the EU average. During the election campaign, Simonyte accused the outgoing cabinet of failing to use the summer months to prepare for the current virus surge. The election also highlighted the political divide between urban and rural populations, as social inequality remains high in the country of 2.8 million people. Simonyte said she does not plan to introduce any drastic tax changes soon and has so far resisted pressure to commit to cuts. The Lithuanian economy has performed relatively well despite the pandemic, with the European Commission predicting a contraction of 2.2 percent this year -- an EU low. vab/amj/txw
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