Temporary capital of Lithuania during the invasion of Poland, to Lithuania according to the Soviet–Lithuanian Mutual Assistance Treaty. Since then Vilnius has been the capital of the Lithuanian SSR and then independent Lithuania. Lithuania refused to have diplomatic relations between Poland and Lithuania until the ultimatum of 1938. Railroad traffic, telegraph lines or even mail could not cross the Polish–Lithuanian border. Lithuania continued to declare Vilnius as its capital in all official documents, including the constitution. Since the city was controlled by Poland, all Lithuanian authorities were transferred to the city of Kaunas, which became the seat of the government. To reconcile reality with
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