Having become independent in 1918, Lithuania was annexed by the USSR in 1940. It regained its independence on 9 February 1991. On 1 May 2004, the country joined the EU; it adopted the euro as its currency in 2015.
According to the 1992 Constitution, the President of the Republic is elected directly for five years. The Parliament has 141 members who are elected for four years.
In 2015 compulsory military service was reintroduced due to mounting geopolitical tensions with Russia.

The economy is expected to grow by 3.2% in 2021. The main crops are cereals, sugar beet, flax and vegetables. Its vast expanses of forest (especially conifers) are intensively exploited. Its mineral resources include peat and crude oil. Basic industries include an oil refinery, petrochemical facilities and a regasification terminal (Klaipėda LNG FSRU). In a bid to reduce energy dependence on Russia, the gas pipeline shared with Poland (GIPL) will be finished in 2021, while a plan to connect the two countries’ electrical grids is being developed. Another major supplier is Norway. The plan to import nuclear energy produced in Belarus has been challenged. The electro-technical, electronic and fintech segments are highly developed as are food processing, clothing, textiles, furniture and timber. A special economic zone is active at Klaipėda with tax incentives for foreign investors. Russia, Germany, Latvia and Poland are the main trading partners. The Vilnius stock exchange is part of the NASDAQ OMX Group.