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BASIC INFORMATION

Full Country Name: The Republic of Lithuania (Lietuvos Respublika)


Country Profile:

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: Valdas Adamkus (2004)
Prime Minister: Gediminas Kirkilas (2006)
Foreign Minister: Petras Vaitiekunas (2006)
Economic information: See below

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)

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.

HISTORY

Recent History

's history goes back to its emergence as a state in the mid-13th Century. It was annexed in the late 18th Century by 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 '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 was forcibly incorporated into the . Society and industry were modelled along Soviet lines and absolute power rested with a Communist Government subservient to Moscow. The 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. declared its independence from the Soviet Union on 11 March 1990. But it was only after the Moscow coup of August 1991 that '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 joined the United Nations. In 2004 it joined both NATO and the EU.

Longer Historical Perspective

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. '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 . 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%.

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.

ECONOMY

Basic Economic Facts

GDP: US$25.7bn (2005
GDP per capita: US$7,511 (2005)
Annual Growth: 7.5% (2005)
Inflation: 3.4% (2005)
Unemployment: 5.6% (2005)
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.

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

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

Following independence 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 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 narrowly to miss joining the Euro earlier last year. Average unemployment is low (5.6%) due to economic growth and migration. has the highest rate of migration in the EU, mainly to the and the Republic of Ireland.

The European Commission's November 2001 regular report on confirmed 's status as a functioning market economy. became a full member of the World Trade Organisation in 2001.

INTERNATIONAL RELATIONS

's Relations with Neighbours

's relations with 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 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 was the signature of a border agreement on 24 October 1997. 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 and signed a re-admission agreement.

Citizenship and the treatment of ethnic minorities are much less contentious issues in than in the other two Baltic States, where there are much larger Russian-speaking minorities. has been held up by 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 over this and other bilateral issues.

has agreed its land borders with , , and . The maritime border with (Kaliningrad) remains undetermined. An agreement on the demarcation of the maritime border with 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.

's Relations with the International Community

'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. formally acceded to the EU on 1 May 2004.

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. 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 , , and Kosovo. Lithuanian troops have also been engaged with MNF-I, OED and NTM-I in since 2003. In May 2005 assumed responsibility for a multinational Provincial Reconstruction Team (PRT) in Ghowr Province of Afghanistan. joined the OSCE in 1991 and has been an associate partner of the WEU since 1994
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