Andrius Kubilius of the Homeland Union was appointed the Prime Minister by President Valdas Adamkus on 3 November 1999.

Kubilius was the third Prime Minister delegated by the ruling Homeland Union during the term of the Seventh Seimas, after Rolandas Paksas resigned amidst disagreements over privatization, causing his government to collapse.

The government received its mandate and started its work on 11 November 1999, after the Seimas gave assent to its program.

[3] By spring of 2000, Moderates' parliamentary group, which will create Union of Moderate Conservatives, was formed and dissenting members of the Homeland Union (including former Prime Minister Gediminas Vagnorius) joined its ranks.

The government continued to serve in an acting capacity, until the new government formed by Paksas (now leading Liberal Union of Lithuania) started its work on 9 November 2000.