Vilnius – European Capital of Culture 2009

Vilnius is the capital of Lithuania, the country’s administrative, cultural and economic centre. The city is home to major companies and key financial institutions. Highly developed infrastructure, high-quality services, and increased spending power of inhabitants all attract large foreign investments. Improving quality of life, organised city development, and intensive cultural life all contribute to creation of a welcoming and appealing environment. Foreign Direct Investment magazine of the Financial Times Group has named Vilnius the “City of Eastern European future” and the “Baltic city of the future.” The future is just round the corner. 

Vilnius’ credit rating was established in 2002 and is now annually updated by Standard & Poor’s. On June 27, 2005 the long-term issuer credit rating on Vilnius was set at BBB+, stable outlook.

In 2009, Vilnius will become the European Capital of Culture. This is an excellent opportunity to enhance the role of culture in Lithuania and European life, to make our culture known in the world, and to rev up contacts with artists of other countries. Vilnius is a city of rich European experience, a city within which different architectural styles are intertwined, and where the spirit of East and West meets. This creates the city’s unique ambience.

Vilnius Old Town is included in UNESCO’s World Heritage List. The capital remains open to different cultures and ideas, just as it has been throughout its history. The dynamic city is renewing everyday. Vilnius preserves the old tradition of European culture, reinterpreting it and turning it into a new creative force. Artists from all over the world come to Vilnius not only to present their works, but also to get new and creative ideas. 

Vilnius is home to 553,000 inhabitants and this number is growing every year. Approx. 1,000,000 tourists visited Vilnius last year – twice as many as two years ago. More and more people are discovering and falling in love with the capital of Lithuania. Vilnius is a miniature gem in the heart of Europe, says Sunday Times journalist Richard Green. 

Economic Environment and Key Investment Directions

Of all Lithuanian cities Vilnius is developing and renewing the most rapidly. Vilnius County generates one-third of the country’s GDP. The unemployment level in the capital is almost two times lower than the country average. 

In 2005, Vilnius accumulated € 2.815 billion in foreign direct investments (FDI). For several years in a row, Vilnius has been the hot spot in Eastern Europe in terms of investments attracted. The city’s huge economic potential is being acknowledged. Vilnius has seen rapid growth of modern commercial and business centres known throughout Baltic Region; a new city centre is being formed. Prices of real estate are rising. Demand for new residential areas exceeds supply.

The title of European Capital of Culture 2009 is encouraging intense development of the city. Expansion of cultural and leisure infrastructure is planned, with a total investment of € 0.5 billion. 

One of the largest projects is an international conference centre and park. They will be located on the right bank of the Neris River, extending the development of the new centre of Vilnius. The hottest spot of modern Vilnius has already attracted € 142 mln. in investments and is expected to attract another € 800 mln. in the future.