Artūras Paulauskas entered politics by running for President of Lithuania in the 1997–1998 elections. He was supported by outgoing President Algirdas Brazauskas and narrowly lost in the runoff to Valdas Adamkus, with Paulauskas gaining 49.6% of vote and Adamkus gaining 50.4%. He then established The New Union (Social Liberals) party, becoming its chairman on 25 April 1998. This party gained 19.6% of vote in the 2000 parliamentary election. Following this election, he became the Speaker of Seimas on 19 October 2000.