Advanced search
image
Travel & living abroad

Europe

Lithuania

 Flag of Lithuania

(Lietuvos Respublika)

Last reviewed: 11 August 2009

Country information

Map of Lithuania

Area: 65,200 sq. km (25,174 sq. miles)
Population: 3.4million (2005)
Capital City: Vilnius (population: 542,287 (2005))
People: 84% Lithuanian, 6% Russian, 7% Polish, 1.5% Belarusian, 1% others
Languages: Lithuanian (the state language), Russian, English
Religion(s): predominantly Roman Catholic
Currency: Litas
Major political parties: Social Democratic Party, Farmers' Party, Liberal Centrist Party, New Union-Social Liberals (New Union), Homeland Union (referred to as Conservatives), Labour Party.
Government: Parliamentary Democracy. Presidential term is for five years.
President: Dalia Grybauskaite (2009)
Prime Minister: Gediminas Kirkilas (2006)
Foreign Minister: Petras Vaitiekunas (2006)
Membership of international groupings/ organisations: United Nations (UN), European Union (EU), North Atlantic Treaty Organisation (NATO), Organisation for Co-operation and Security in Europe (OSCE), Council of Europe (COE), Euro-Atlantic Partnership Council (EAPC), World Trade Organisation (WTO), Council of the Baltic Sea States (CBSS)

ECONOMY

Basic Economic Facts

GDP:  US$38.9bn (2007)
GDP per capita:  US$11,493 (2007)
Annual Growth:  8.9% (2007)
Inflation: 3.84% (2006)
Unemployment:  5.9% (Q3 2008)
Major Industries: Textiles, Oil Processing, Timber and Agricultural Products
Major trading partners: EU (especially Germany, Sweden, Denmark and UK)
Aid & development: EU projects amount to 180m Euro per annum

Further information about Lithuania's economy can be found at:

UK Trade & Investment Country Profile: Lithuania.

Lithuania’s economy is the largest of the three Baltic States. Its GDP is roughly the equivalent of Latvia and Estonia’s put together. But Lithuania's GDP per capita is only 45% of the EU average and not much more than one fifth of the UK's.

While Vilnius looks, and largely is, a prosperous Western capital, much of rural and provincial Lithuania is still extremely poor, with EU funding only beginning to make an impact.

Following independence Lithuania embarked on transforming its economy to one based on free market principles. The economy initially went into a deep recession but started to recover in the mid-1990's.

The Russian financial crisis, at the end of 1998, resulted in Lithuania losing 20% of her export market and GDP dropped by 4.1% in 1999. Since then the economy has recovered, mainly due to increases in domestic demand and exports to other EU member states. Sound monetary policy has resulted in one of the highest GDP growth rates in the EU coupled with relatively low inflation. Approximately 50% of Lithuanian exports go to the EU. Around 20% go to the countries of the former Soviet Union. The privatisation of many of the large, state-owned sectors has helped the transition towards a market economy with around 80% having now been privatised. However, recent increases in inflation caused Lithuania narrowly to miss joining the Euro earlier last year. Average unemployment is low (5.6%) due to economic growth and migration. Lithuania has the highest rate of migration in the EU, mainly to the UK and the Republic of Ireland.

HISTORY

Recent History

Lithuania's history goes back to its emergence as a state in the mid-13th Century. It was annexed in the late 18th Century by Russia until 1918, when it became independent. In 1940 it was occupied by the Soviet Union under provision of the 1939 Molotov-Ribbentrop Pact. Occupation by German forces and persecution of Lithuania's Jews followed from 1941 to 1944, when the Red Army drove back the German Army. In 1944 the Red Army drove back the Germans and Lithuania was forcibly incorporated into the USSR. Society and industry were modelled along Soviet lines and absolute power rested with a Communist Government subservient to Moscow. The UK did not recognise de jure the incorporation of the Baltic States into the Soviet Union.

The more tolerant political atmosphere in the Soviet Union under Gorbachev in the late 1980s allowed pro-independence and reform groups to come to the fore. Lithuania declared its independence from the Soviet Union on 11 March 1990. But it was only after the Moscow coup of August 1991 that Lithuania's restored independence was recognised by the international community (by the European Community on 27 August 1991) and by the Soviet authorities. On 17 September 1991 Lithuania joined the United Nations. In 2004 it joined both NATO and the EU.

Longer Historical Perspective

BBC News Country Timeline: Lithuania

INTERNATIONAL RELATIONS

Lithuania's Relations with Neighbours

Lithuania's relations with Russia were normalised with the signing of the Agreement on the Foundations of Inter-State Relations on 29 July 1991. The withdrawal of Russian troops from Lithuanian territory was completed on 31 August 1993. The problem of civilian and military transit to and from the Russian region of Kaliningrad (now an ‘exclave') was resolved in early 1995. Negotiations over travel through Lithuania in the context of its EU membership resulted in the introduction of the Facilitated Rail Transit Document (FRTD) which generally seems to be working well. The British Government's policy is to help promote the civilian economic development of Kaliningrad, and to this end it has provided much assistance and advice.

An important step forward in relations with Russia was the signature of a border agreement on 24 October 1997. Lithuania was the first former Soviet republic to conclude such an agreement. The Lithuanian Parliament ratified the agreement in October 1999 and the Duma (Russian Parliament) ratified the agreement in 2003. In May 2003 Lithuania and Russia signed a re-admission agreement.

Citizenship and the treatment of ethnic minorities are much less contentious issues in Lithuania than in the other two Baltic States, where there are much larger Russian-speaking minorities. Lithuania has been held up by Russia as an example for the other Baltic States to follow. Citizenship (with no language requirement) was available to all residents at the time of independence, and most of the non-Lithuanian minority (c 20%) took it. There are periodic complaints about discrimination from elements in the Polish community, but the Polish government has maintained a cordial dialogue with Lithuania over this and other bilateral issues.

Lithuania has agreed its land borders with Latvia, Belarus, Poland and Russia. The maritime border with Russia (Kaliningrad) remains undetermined. An agreement on the demarcation of the maritime border with Latvia was signed in July 1999.

The Baltic States have developed a wide network of co-operation. Inter-governmental co-operation is managed in the framework of the Baltic Council of Ministers. Heads of State and Government meet regularly - at least once a year. Co-operation focuses on areas such as trade, economic relations and EU/NATO integration.

Lithuania's Relations with the International Community

Lithuania's overriding foreign policy goal had been full membership of Western institutions. EU Accession negotiations began in 2002. A referendum on EU membership, held on 10 and 11 May 2003, yielded an overwhelming result in favour of accession, with just over 91% in support. Lithuania formally acceded to the EU on 1 May 2004.

Lithuania was invited to join NATO at the summit in Prague in November 2002. This completed several years of preparation for NATO membership, including participation in the Membership Action Plan (MAP) process. The path to membership had been set out at summits in Madrid in July 1997 and Washington in April 1999. Lithuania has participated enthusiastically in NATO's Partnership for Peace.

Since 1994, Lithuanian military personnel have participated in UNPROFOR, IFOR, SFOR, KFOR and EUFOR operations in Croatia, Bosnia, and Kosovo. Lithuanian troops have also been engaged with MNF-I, OED and NTM-I in Iraq since 2003. In May 2005 Lithuania assumed responsibility for a multinational Provincial Reconstruction Team (PRT) in Ghowr Province of Afghanistan. Lithuania joined the OSCE in 1991 and has been an associate partner of the WEU since 1994.

Lithuania's relations with the UK

The UK never recognised de jure the Soviet annexation of 1940. Together with EU partners, we recognised Lithuania's restored independence on 27 August 1991. The British Embassy opened in Vilnius in October 1991 and new, owned premises were formally inaugurated in April 1994. Britain's relations with Lithuania remain close and friendly.

Cultural Relations with the UK

There is a bilateral group in the Lithuanian Parliament chaired by Birute Vesaite. The Lithuania All-Party Group in Parliament is co-chaired by Roger Berry, Paul Keetch and Lord Bowness. Sir Malcolm Rifkind is Honorary President of the British-Lithuanian Society.

Recent Visits

Inward

  • Lithuanian Defence Committee in March 2004
  • Ms Vilija Blinkeviciute (Labour Minister) in March 2005
  • Mr Valdas Adamkus (President) in July 2006
  • Dr Petras Vaitiekunas (Foreign Minister) in February 2007
  • Mr Gediminas Kirkilas (Prime Minister) in June 2007
  • Mr Valdas Adamkus (President) in February 2008
  • Mr Vygaudas Usackas (Foreign Minister) in March 2009

Outward

  • UK Parliament All Party Group in June 2004 and September 2006
  • Shadow Foreign Secretary Mr Michael Ancram in December 2003
  • The Lord Mayor of London, Alderman Robert Finch, June 2004
  • Mr Gerry Sutcliffe (DTI), June 2004
  • Mr Ivor Chaplin (MOD) in January 2005
  • Baroness Symons (FCO), April 2005
  • Mr Ben Bradshaw (DEFRA), June 2005
  • Mr Douglas Alexander (Minister for Europe) June 2005
  • Dr Stephen Ladyman (DfT) August 2005
  • Baroness Ashton (DCA) August 2005
  • Mr Douglas Alexander (Minister for Europe) May 2006
  • State Visit by HMQ Elizabeth II and Duke of Edinburgh October 2006
  • Margaret Beckett (Minister for Foreign Affairs) October 2006
  • UK Parliamentary Trade and Industry Select Committee May 2007
  • UK Parliament All Party Group in June 2004, September 2006 and September 2007
  • Mr Jonathan Shaw (DEFRA) September 2007
  • Mr Malcolm Wicks (BERR) October 2007 

GEOGRAPHY

Lithuania is the largest of the three Baltic States. The geographical centre of Europe is said to be near Bernotai, 15 miles north of Vilnius. The landscape is diverse, consisting of gently rolling plains and extensive forests. There are over 2800 lakes and 750 rivers. The highest point is Juozapine Hill (294m) in the south-east of the country. The Baltic coastline and ports (main port Klaipeda) are generally ice-free in winter.

TRADE AND INVESTMENT

UK Development Assistance

Lithuania benefited from many programmes under DFID's bilateral programme (former Know How Fund), which ended in 2003. The UK continues to have a small bilateral programme (the 'EU Action Plan') which aims to further enhance both Government and civil society capabilities with working in the EU context.

The UK is also a significant contributor to the EU technical assistance programme, which focuses on economic and political restructuring and assistance with accession issues. The main thrust of British Military assistance to the Baltic States has been English-language and basic infantry training for BALTBAT, the Baltic Peacekeeping Battalion.

Trade and Investment with the UK

Lithuania is the largest UK export market in the Baltic States and in 2004 was our 73rd largest market with the value of goods totalling £140.8m. The main UK exports were textile yarn, fabrics, articles of apparel and clothing accessories, telecommunications and power generating machinery. The main Lithuanian imports to the UK are ores and metal scrap, clothing, furniture and fertilisers.

For more information on general figures and trade opportunities, see the:

UK Trade & Investment Country Profile: Lithuania.

POLITICS

Recent Political Developments

Lithuanian domestic politics, like other Baltic states, have been marked by consensus over accession to NATO and the EU, both of which have now been achieved. While political parties and coalitions have tended to be fluid, there has been little change to the country's politics. Lithuania's first independent government was formed by the independence movement Sajudis. Its leader Landsbergis became de facto head of state in March 1990. The first Presidential election was held in 1993 and was won by the former Communist Algirdas Brazauskas. He was succeeded in 1998 by the centrist Valdas Adamkus. Adamkus then lost in the January 2003 Presidential election to Rolandas Paksas. But almost as soon as Paksas' term of office started allegations began to circulate concerning the financing of his presidential campaign and contacts with individuals in Russia. Following a parliamentary commission investigation Paksas was impeached by the Lithuanian parliament on 6 April 2004 and on the same day parliament adopted a resolution appointing Parliamentary Chairman (Speaker) Arturas Paulauskas as acting President. Valdas Adamkus was re-elected President of Lithuania on 27 June 2004 in a nail-biting second round vote. In the end he took 52% against Ms Kazimeira Prunskiene's 48%. On 17 May 2009 Dalia Grybauskaite was elected President taking 56 of Lithuania’s 60 districts. Grybauskaite is Lithuania’s first female President.

Algirdas Brazauskas led broadly centre-left governments from mid-2001 (re-elected November 2004) until he resigned as Prime Minister in June 2006. Intense inter-Party negotiations then led to a minority coalition government under former Minister of National Defence Gedminias Kirkilas being approved by the Parliament on 19 July 2006. Kirkilas' government includes Ministers from his own Social Democratic Party, the Farmers' Party, and the Liberal Centrist Party.

Country information

Pick Another Country :

Share this with: