In the process of integration into the EU, the central banks of accession countries are the institutions, which have to change and undergo substantial reforms in order to become an integral part of the ESCB. The new Law on the Bank of Lithuania passed by Seimas on 13 March 2001 marks substantial convergence with the benchmark set by the Eurosystem. Based on comparison of latest developments in the Eurosystem and formulations of goals and functions in the Law on the Bank of Lithuania, the author analyses the problems of central banking convergence in the process of accession to the EU.

Central bank independence has always been the issue of a heated public and political debate. The classical argument in favour of the central bank’s independence is the necessity to avoid risks deriving from the government inflationary policy. In accession countries, central bank independence is also the precondition for pursuing an efficient convergence policy and preparing to become an integral part of the ESCB. As regards independence, the new law on Lithuania’s central bank de jure almost fully complies with the requirements of the acquis, but de facto the level of independence will be closely related with the bank’s ability to use efficiently the rights accorded to it by the Law.

Through the new objective of the Bank of Lithuania “to seek price stability” it is possible to prepare for the objective of maintaining price stability.

The provision regarding the new objective is especially significant because it confirms, in a legal act, the orientation of Lithuania towards EU values and objectives. Legal convergence is closely related to semantic convergence, which can be characterised as search for and creation of the best equivalents of Lithuanian terms denoting certain categories. This is important not only in the context of the attainment of objectives deriving from EU acquis but also for alike perception of categories and terms used in the ESCB which, in its turn, is a prerequisite for efficient functioning of the System.

The provision pertaining to the function of consulting set forth the Law can also be ascribed to the problems of semantic convergence. The provision of the Law is narrowed to consulting with the Bank of Lithuania on financial and fiscal policy matters. Yet, is not envisaged that the Bank of Lithuania must be consulted on issues which, in certain aspects, are related to its competence.

The analysis and comparison of the functions of the Bank of Lithuania provided for in the Law and the ESCB functions lead to the conclusion that certain functions of the Bank of Lithuania should be modified in the future. Namely, the function of the issue of the currency should not be the monopolistic right of the central bank because this can hamper the development of electronic money in the long run. Therefore, it would be advisable to start developing a more extensive legal base in this area.

In recent years, the development of the functions of the ESCB in the area of payments systems has been very dynamic and covered both operational and supervisory aspects. Taking into account the fact that alongside transmission of impulses to the economy, the supervisory objectives of the ECB encompass such issues as maintenance of systemic stability, efficiency of payments systems and safety of payment means, attributing such functions to the Bank of Lithuania and their detailed regulation in the Law would be meaningful and important.

The European Committee under the Government of the Republic of Lithuania has designed The Strategic Guidelines for Stimulation of Lithuania’s Economic Integration into the EU Single Market.

The Guidelines present a road map for the economic integration of the Lithuanian market operators into the single market. They define four main areas for integration, which are: formation and development of an infrastructure for economic integration, teaching of market operators, training of market operators, and enhancement of economic competitiveness.

The document focuses mainly on the conditions necessary to facilitate free movement of goods as a key area of economic relations and economic integration with the EU. The basic requirements for the formation of the infrastructure to implement this freedom are standardisation, notification, accreditation, and market surveillance. Key measures to implement the improvement of the infrastructure are suggested.

The Strategic Guidelines analyse the dynamics of the existing environment for Lithuania’s integration into the EU. They describe the stages of Europe’s economic integration (common market, single market, EMU), history of relations between Lithuania and the EU, trade between Lithuania, the EU and other countries, and the importance of the EU single market for Lithuania and global economy.

The document presents a SWOT analysis for Lithuania’s pre-accession period and following its membership of the European Union.

Economics has been closely linked with ethics for many centuries in the development of economic ideas. The ethical approach in the evolution of economic ideas was basically rejected only in the last century. During the A. Smith period, economics was implicitly included into ethics and particular economy administration subjects were not even included in economics. Later the situation changed to the contrary-economic policies and analysis belonged to economics to the extent they were free from “moral sentiments”.

A. Smith’s valuable contribution to classical economics was simplified by many economists of the later period who accented the self-interest principle described by A. Smith in the context of economic relations.

Modern theories of the economic welfare became humble by markedly narrowing the notion of a human being and immersing into the circle of inter-personal benefit comparisons.

The mechanistic approach found in economic theories was opposed already in the 19th century. The economics or ethics preference dilemma is being developed most actively by the Christian social teaching which is in a favourable position by bearing no responsibility for economic policies. Supporters of this teaching further criticise liberalism, but reject views of the class socialism. Ideas of a private initiative and socially important role of a businessman have presently become more implicit. Theologians’ statements on sad consequences of human imperfections are clearly preferred to the harm done by various religious beliefs or lack of practical religion.

The need for human values is becoming more evident in countries of higher living standards. Nowadays the importance of human values has already become a global issue of economists and politicians because the responsibility for and realisation of spiritual values have obviously turned into a weighty factor of the economic development. The science of economics, fully dissociated from ethics, is confronted with a challenge to prefer orientations to values, as they effect and encourage the economic welfare, rather than those orientated to material aspects, carrier or even business. It has to acknowledge this fact and express it in a rational way.

The article represents the first more exhaustive acquaintance with the biographies of the governors of the Bank of Lithuania, Aleksandras Drobnys, Povilas Kopustinskas, and Juozas Bergas. Aleksandras Drobnys (1912–1998) was of poor farmers’ origin; he studied economics at the Universities of Kaunas and Vilnius in 1931–1939 and was then active among leftist students. Before he was appointed (in September 1940) Governor of the Bank of Lithuania, he had served in this bank and the Ministry of Finance. He headed the Bank of Lithuania (which was turned into the Republican office of the USSR State Bank on 12 October 1940) until the outbreak of war between Germany and the USSR, assisted diligently in sovietizing the bank and replacing its employees. During the war years, he lived and worked in Russia.

In 1944–1957, Aleksandras Drobnys worked as the Minister of Finance of the Lithuanian SSR; later he headed the Lithuanian SSR State Planning Commission (Committee) and was a deputy of the Supreme Council of the Lithuanian SSR.

Povilas Kopustinskas (1902–1966) was of farmers’ origin; he had higher economic education. In 1929, he began his career as a banker in Bank of Lithuania branches starting from the lowest positions. In 1935, he was appointed Director of Kretinga branch of the Bank of Lithuania, in August 1940 – a member of the Board of the Bank of Lithuania and Director of Kaunas branch.

The provisional Government of Lithuania, formed as a result of the All-nation Uprising against Soviet invaders in June 1941, appointed Povilas Kopustinskas to head the Bank of Lithuania. His significant contribution consisted in restoring Bank of Lithuania’s pre-occupational status, the credit, settlement, and accounting procedures. Viewing no possibilities to stop the Nazis from liquidating the Bank of Lithuania, he resigned from his office on 29 October 1941.

After the war, he worked as a teacher in secondary schools in Kaunas; later, he lectured on economic subjects at the University of Vilnius.

During the years of independence, he published a series of valuable articles on Bank of Lithuania’s monetary policy, shifts in the position of the Litas. In his articles, he also expressed himself in favour of stronger regulation of credit by the State. To this end, he suggested to render banks state-owned, to replace the method of creditworthiness by expediency.

Juozas Bergas was appointed Commissioner Governor of the Bank of Lithuania by the Nazis. In 1942, when the invaders commenced accelerated liquidation of this bank – the symbol of the country’s strive for independence, he faced the hard lot of implementing these intentions of the Brown Shirt invader.