Published by Global Banking & Finance Review®
Posted on July 30, 2025
2 min readLast updated: January 22, 2026
Add as preferred source on GoogleLithuania's coalition partner demands PM Gintautas Paluckas resign by August 18 over business ties, risking government stability.
By Andrius Sytas
VILNIUS (Reuters) -A junior party in Lithuania's government on Wednesday threatened to quit the ruling coalition unless Social Democratic Prime Minister Gintautas Paluckas resigns by August 18 over business ties to a company owned by his sister-in-law.
Without the centre-left For Lithuania party, which won 14 seats in the 2024 election, the Social Democrats and another junior partner, Nemunas Dawn, would be left with only 71 seats, the bare minimum required for a majority in the 141-seat assembly, and vulnerable to any further defections.
The prime minister's office said Paluckas was on holiday, and declined to comment further. He has denied any wrongdoing.
Opposition parties in the Baltic country have criticised Paluckas for business dealings in which a company he co-owns sold electric batteries to one owned by his sister-in-law in a deal financed by a government agency.
Last week, the sister-in-law's company said it would decline the funding from the government, but denied wrongdoing. It said it made purchases from Paluckas' business following an open tender.
Saulius Skvernelis, the leader of For Lithuania, on Wednesday gave the prime minister a deadline to resign by the next coalition leaders' meeting, which is scheduled for August 18.
"(If Paluckas stays) we will not remain in the coalition," Skvernelis told reporters.
(Reporting by Andrius Sytas in Vilnius; Editing by Terje Solsvik and Alison Williams)
The For Lithuania party threatened to leave the ruling coalition unless Prime Minister Gintautas Paluckas resigns by August 18.
Paluckas has faced criticism for business dealings involving a company he co-owns that sold electric batteries to a company owned by his sister-in-law.
If the For Lithuania party exits, the Social Democrats and another junior partner would be left with only 71 seats, the bare minimum needed to maintain a majority.
Paluckas has denied any wrongdoing and is currently on holiday, with his office declining to comment further.
The sister-in-law's company announced it would decline government funding but denied any wrongdoing, stating that purchases from Paluckas' business were made following an open tender.
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