By 1998 Lithuania was hit by the Russian finansial crisis, which (along with the conflicts between ruling coalition, Prime Ministers Gediminas Vagnorius and Rolandas Paksas and President of Republic Valdas Adamkus) caused two replacements of government.

New Union (Social Liberals), led by Artūras Paulauskas, came second in the nationwide constituency (19.64 per cent), winning 29 seats in the parliament.

The centre-right Liberal Union, led by the Mayor of Vilnius and former Prime Minister Rolandas Paksas, became as the largest single party in the parliament, with 34 seats and 17.25 per cent of the vote in the nationwide constituency.

The Homeland Union, which had led the government for the previous four years, performed poorly in the elections, receiving only 8.62 per cent of the vote and winning eight seats, down from more than 30% of the vote and 70 seats in the previous elections.

Kaunas and Vilnius were narrowly won by the Liberal Union of Lithuania, while New Union (Social Liberals) got the most votes in Trakai, Širvintos, Varėna, Kėdainiai and, to lesser extent, Vilnius districts.

[8] It would happen gradually from 2001 to 2008, when the Homeland Union (which received their worst result ever in these elections) would merge with most them.

[1] The coalition was not long-lasting and collapsed in June 2001 amid disagreements over privatisation and other reforms.