Temporary capital of Lithuania Temporary capital of Lithuania The temporary capital of Lithuania () was the official designation of the city of Kaunas in Lithuania during the interwar period. It was in contrast to the declared capital in Vilnius, which was under Polish control from 1920 until 1939. Currently, the term "temporary capital", despite having lost its meaning, is still frequently used as a nickname for Kaunas, the second largest city in Lithuania. During World War I, Lithuania declared independence on February 16, 1918. The declaration stated that Lithuania would be a democratic republic with Vilnius as its capital. This claim was based on
Economy of Lithuania degrees of business, fiscal, and financial freedom. Lithuania is a member of the EU and the WTO, so regulation is relatively transparent and efficient, with foreign and domestic capital subject to the same rules. The financial sector is advanced, regionally integrated, and subject to few intrusive regulations. One of Lithuania's most important reforms was the privatization of state-owned assets. The first stage of privatization was being implemented between 1991 and 1995. Citizens were given investment vouchers worth €3.1 billion in nominal value, which let them participate in assets selling. By October 1995, they were used as follows: 65% for acquisition