In many European cities, cultural policy plays a central role in social and economic development. Museums are therefore closely related to processes of urban regeneration. The Guggenheim museum in Bilbao, opened in 1997, marked the beginning of a great interest in the economic potential of cultural flagship developments. Also in Central- and Eastern European countries, cities are now looking for ways to re-image and re-position their cities. After having established shopping malls, multifunctional urban complexes and stadiums in recent years, the Lithuanian capital city Vilnius for example, is now planning its own Guggenheim museum. City officials believe that the cultural regeneration of Vilnius can only be achieved by taking part in global projects. However, the cultural needs of the local inhabitants of the city may be different from those of the business and tourist industry. In an article for Eurozine, art critic Skaidra Trilupaityte, discusses the multiple dimensions of Vilnius's quest for the 'Bilbao effect'.