TODAY Lithuania will become the first of the three Baltic states to take over the presidency of the Council of the European Union and dictate its direction of travel for the six-month duration of its role.

The state, which became a member of the EU in 2004, having thrown off the shackles of Soviet occupation in 1990, has a population of fewer than three million. It takes over the presidency from Ireland and the decisions taken under it will have an impact on the people of Scotland.

Lithuania is one of the most successful countries to overcome an economic and financial crisis and return to sustained recovery and growth. The republic taking over the presidency will also witness the expansion of the EU to 28 member states when Croatia joins the club.

The main responsibility of the presidency is to preside over the creation of EU legislation – a task shared with the European Parliament – to ensure the continuity of its agenda, orderly legislative processes and to represent the interests of all member states.

More than 200 various meetings will take place under the Lithuanian presidency, with about 30,000 participants due to attend. The presidency takes place during the European Year of Citizens, and this explains the motto of the presidency, built around the key words "credible Europe", "growing Europe" and "open Europe".

Lithuania says it will strive to make progress towards sounder public finances, the implementation of the Compact for Growth and Jobs, and the strengthening of the EU as a global model of openness and security. Priorities during its presidency will include the economic situation, the reduction of youth unemployment, ensuring energy self-dependence, and delivering safe eastern neighbourhoods. All the member states will have to find solutions and negotiate the EU 2014-2020 budget in time so that financial support reaches the relevant member states without delay, an impact which will clearly be felt in Scotland. At the time of writing it remains uncertain whether the European Parliament and European Council will find agreement on the long-term EU budget before the target they set themselves at the conclusion of the Irish presidency.

But, even in this optimistic scenario, it would be up to Lithuania to steer the adoption by co-decision of 70 pieces of legislation designed to implement and allow the disbursement of EU funds, millions of euros heading to Scotland to be spent on, for example, regional funding, farm payments and university research funding.

In addition, Lithuania will have to push the implementation of the Compact for Growth and Jobs, agreed in June 2012. The ultimate aim of this Compact is to make the European economy more competitive by relaunching growth, investment and employment programmes, measures which will have a clear impact on the Scottish economy as we manage our fragile recovery.

Under the Compact EU member states are committed to tackling unemployment, with a specific focus on youth employment, and adopting measures to increase economic growth. It will also focus on further deepening and integrating the single market as the main driving force for economic growth and will pursue the EU's commitments to complete the internal energy market by 2014. This will ensure no member state remains isolated from the European energy networks after 2015 and with a truly integrated European energy market this will bring benefits to Scotland as a net exporter of electricity and an expanding renewable energy sector.

The Lithuanian presidency will also make steps to strengthen the EU as a global model of openness and security, focusing on the closer integration of the EU and its eastern partners – Armenia, Moldova and Georgia – opening up markets for Scottish exporters. It will also promote free trade with strategic partners such as the US, Japan, Canada and others, again of economic benefit to businesses north of the Border.

While it will be Lithuania holding the EU presidency, the impact of the decisions made under it will be felt from Lerwick to Langholm.

Alex Orr is a European Movement board member