Lithuanian Government Collapses After Leader Resigns Over Corruption Scandal 

Lithuanian President Gitanas Nausėda appointed Finance Minister Rimantas Šadžius as acting prime minister this week after his predecessor, Gintautas Paluckas, formally resigned amid corruption allegations, triggering the automatic resignation of the executive branch of government, Euronews reported.  

Šadžius will serve in a caretaker capacity until a new government is sworn in.  

On Wednesday, the ruling Social Democratic Party (LSDP) picked Social Affairs Minister Inga Ruginiene as its candidate for prime minister. Ruginiene still needs to face a confidence vote in parliament and must get lawmakers’ approval for her cabinet program before taking office, Reuters added. 

The government changes came a week after Paluckas, who had been prime minister since December 2024, announced he would step down following weeks of political pressure over a scandal involving loans, European Union funds, and alleged questionable business ties linked to the prime minister and his relatives. 

The scandal prompted authorities to launch a probe into his business dealings and sparked protests calling for his resignation. 

Nausėda gave Paluckas a two-week deadline to address questions over his finances or step down. Pressure also came from the LSDP’s coalition partner, the Union of Democrats “For Lithuania,” which threatened to leave the government if Paluckas remained in office, Politico noted. 

Paluckas also resigned as party leader but insisted that he had committed no wrongdoing. 

Observers said the center-left LSDP holds a parliamentary majority and is expected to remain in power until the next elections in 2028.