Lithuanian Prime Minister Paluckas resigns amid financial scandal

Lithuania’s Prime Minister Gintautas Paluckas resigned Thursday following allegations of financial impropriety, prompting the fall of the Cabinet and a new round of coalition talks in Vilnius.

Lithuania’s Prime Minister Gintautas Paluckas announced his resignation Thursday morning after mounting allegations of unethical financial dealings, setting the stage for a government reshuffle in Vilnius. “Just over an hour ago, I informed the president that I have made the decision to resign from the position of prime minister,” Paluckas said in a statement. “I also announce that I have decided to step down from my position as leader of the LSDP (Social Democratic Party).”

Paluckas’s resignation automatically triggered the fall of the Cabinet, though the president may ask ministers to remain until a new government is formed. The move comes after the president gave Paluckas a two-week ultimatum to address growing questions about his finances or step aside.

The scandal, which erupted in May, involves loans, EU funds, and questionable business ties linked to Paluckas and his relatives. It has sparked a financial crimes investigation and widespread public outcry.

In his resignation statement, Paluckas denied wrongdoing: “As prime minister, I do not feel that I have made any fundamental mistakes or violations — I have carried out my duties honestly, to the best of my understanding and ability.” He added, “Seeing how the fueling scandals are bogging down the work of the government, I believe that I cannot turn our ruling coalition and Cabinet into hostages of these scandals. Therefore, I have decided to make a quick and decisive decision.”

While the Social Democrats initially backed Paluckas, pressure for his resignation mounted from both the opposition and within the governing coalition. On July 30, Parliament Speaker Saulius Skvernelis, leader of the Union of Democrats “For Lithuania,” warned his party would leave the coalition if Paluckas stayed in office. Skvernelis called the resignation a “logical step, but a belated one.”

President Gitanas Nausėda said the coalition-building process is underway and sought to downplay the fallout. “Fundamentally, nothing changes,” he told Lithuanian national broadcaster LRT. “The Social Democratic Party of Lithuania, which won the last parliamentary election and holds a majority in the Seimas [parliament], will begin talks on forming a potential coalition.” Nausėda added that there is more than one candidate who could serve as prime minister, but any contender must be thoroughly vetted to avoid “another situation like this.”

‍