Dalia Grybauskaitė

In 2013, the Board of Directors of the Society for the Conferring of the International Charlemagne Prize of Aachen is honouring one of the outstanding personalities of the Baltic region in recognition of her significant contribution to the deepening integration of the European Union and the management of the current crisis: Dr Dalia Grybauskaitė, President of the Republic of Lithuania.

Until the early 1990s, the Baltic Sea was a microcosm of the division of Europe. A sharp dividing line ran through its centre. Today, we have a very different experience: the Baltic Sea is once again, as so often in its history, an example of and a medium for European unity. It is completely surrounded by EU member states – with the exception of Russia – and is therefore an internal sea of the European Union; it no longer divides, but connects. Historical patterns of cooperation and old trade relations have been revived and the Baltic Sea region is increasingly becoming a breeding ground for new impulses, a significant, modern and highly developed area of European cooperation. Freed from the ice of the Cold War, the Baltic Sea has become a sea of opportunities, thanks above all to the young EU member states in the Baltic region.

The tenth anniversary of the signing of the accession treaties of Lithuania, Estonia and Latvia in 2013 is a reminder of one of the great and moving events of the revolutionary decade. What hardly anyone thought possible has long since become part of European reality again. Lithuanians, Estonians and Latvians have not only regained their right to self-determination, but are equal members of the European Union. The will of three relatively small nations to stand on their own has triumphed in an impressive way.

But to lead the fledgling democracies into the EU after regaining freedom and independence, a transformation process of historic proportions was set in motion, which also demanded many sacrifices from the citizens. The more severe was the dramatic crisis in 2008/2009 after several years of considerable economic recovery. And the more impressive is the path that the Baltic Republics have followed since. This required the strong commitment of outstanding personalities who, with courage and sound judgement, determination and self-confidence, have paved the way to overcoming the crisis and accompanied the journey; personalities who, even in difficult times, provide orientation and at the same time inspire confidence among their own people and in their European partner countries. And when, in a time of great uncertainty, when the break-up of the monetary union is being speculated almost everywhere, the Republic of Lithuania continues to strive for monetary union, this is an important signal that it is precisely now that the cooperation between Europeans needs to be strengthened and deepened.

Dalia Grybauskaitė was born on 1 March 1956 in Vilnius. Initially employed as a personnel inspector at the Lithuanian State Philharmonic, she began studying political economy at the University of Leningrad in 1975. After graduating, she returned to Vilnius and worked briefly as a secretary at the Academy of Sciences; she later taught political economy and global finance at the University of Vilnius (until 1990). In 1988, she was awarded a doctorate by the Moscow Academy for Social Sciences. In 1991, she completed an additional special training course for senior executives at Georgetown University in Washington. She then embarked on a ministerial career in the Lithuanian government.
From 1991 to 1994, she held various positions in the foreign trade and foreign ministries. In 1994/95, she was sent to the Permanent Representation of the Republic of Lithuania to the EU; in 1996, she transferred to her country's embassy in the United States. In 1999, she was appointed Deputy Finance Minister and played a major role in helping the Kubilius government to get a grip on the financial consequences of the Russian crisis. In 2000, she moved to the foreign ministry as deputy minister, and a year later she was promoted to finance minister under Prime Minister Brazauskas.
After Lithuania joined the European Union on 1 May 2004, she joined the European Commission, where she initially assumed responsibility for education and culture, and later for the budget and finance. Dalia Grybauskaitė, who was already very familiar with negotiations with the EU, the World Bank and the International Monetary Fund from her time as finance minister, soon gained a high reputation in the Commission. She reformed the structure of the EU budget and created the structural funds for economically weak regions. Just one year after moving to Brussels, she was voted ‘Commissioner of the Year’ (in November 2005) for her solid and efficient work. ‘The job is my top priority. I have a clear vision of my goals and I do everything to achieve them,’ the non-attached commissioner made clear from the outset. ’This also meant that she let her officials do the job of the [then] British Council Presidency when it mattered: On the decisive night at the EU summit in December [2005], Grybauskaitė's team calculated the figures that ultimately made it possible to agree on the budget for the years 2007 to 2013’ (Cicero, 25 January 2006).
She was also strongly committed to implementing the Lisbon Strategy and repeatedly called on the Member States to close the implementation gaps.
After she had only just announced in February 2009 that she would stand as a candidate to succeed the outgoing Head of State Valdas Adamkus, she was able to record a triumphant election victory less than three months later. With almost 70 per cent of the vote, the popular economist left her competitors no chance in the first round of voting on 17 May 2009.

Meanwhile, the period of her return to Lithuania was marked above all by a dramatic economic downturn, in the course of which the gross domestic product fell by almost 15 per cent in 2009. ‘I cannot remain in a foreign country when things are going haywire at home,’ she explained in her bid for the presidency, and even before her election she had declared the stabilisation of the economic and financial system to be the main focus of her presidency. Although as head of state she is primarily entrusted with representative duties, the overwhelming majority of Lithuanians saw the financial expert, who had called for strict budgetary discipline at an early stage and warned of the consequences of the economic crisis, as a resolute crisis manager – something that was sometimes missing from the government. And the then Prime Minister Andrius Kubilius also expressed his satisfaction, saying that she had ‘come with a very clear message of change, which is very necessary for Lithuania’.

She subsequently supported the Kubilius government's consolidation efforts, which enabled the Lithuanian economy to recover slowly in 2010 and 2011 and to become one of the most dynamic economies in the EU again in 2012. With a total debt of less than 40 per cent of GDP (2011), the Lithuanians are well below the Maastricht threshold; the unemployment rate – which had temporarily soared to over 18 per cent – was significantly reduced, as was the budget deficit, which is expected to be below four per cent in the current year.
This was made possible above all by a rigid austerity programme, although, as Dalia Grybauskaitė emphasises in retrospect, Lithuania was hit by a severe crisis for a second time within a short period: ‘Between 1998 and 1999, we were hit for the first time, as we were caught up in the maelstrom of the Russian crisis. Even then, we did not borrow any money and we learned how to deal with such a situation. Today, we receive support from the European cohesion and agricultural funds anyway. These are quite significant sums for us. But when the crisis hit, we knew immediately that we ourselves had to take very far-reaching measures and, above all, reduce spending. Our currency is pegged to the euro, so the only option left to us was to cut spending. There was no point in going cap in hand to beg for money. Markets react to the strength and performance of governments, not to how much money they request from the International Monetary Fund or other institutions. By requesting help, governments are only proving that they cannot help themselves. Lithuania has now begun to recover’ (FAZ, 20.6.2011).

And even though the President does not want to speculate about a specific date, she still remains committed to her goal of leading Lithuania into the eurozone. At the same time, she makes it unmistakably clear: ’If you have a common currency, you need a common fiscal policy or very closely coordinated fiscal policies. Without that, a common currency cannot function for long [...] Every economist says: if you want a common currency, you have to want common rules.’

Dr Grybauskaitė strives to maintain good neighbourly relations not only with Europe's neighbours, but also with Russia. In terms of security and diplomacy, she often acts as a bridge-builder between the EU and eastern countries. During international appearances, she repeatedly calls for the preservation of peace and international understanding, as well as the goals of environmental protection and the sustainable use of resources.

These days, it is worth turning our attention to the northeast of the European Union, where impressive proof is being provided of how even profound crises can be overcome with a clear strategy, great discipline and a willingness to make sacrifices. In recognition of her significant personal services to European integration and the exemplary development of her country, the Board of Directors of the Society for the Conferring of the International Charlemagne Prize of Aachen honours Dr Dalia Grybauskaitė, President of the Republic of Lithuania, in the year 2013.