Lithuanian prime minister announces resignation over business ties

Lithuanian Prime Minister Gintautas Paluckas has announced his resignation from both the premiership and the leadership of the Social Democratic Party, following mounting political pressure and deepening scrutiny over his personal and family business ties.

Sources confirmed that the Social Democratic Party’s executive board is expected to vote on the matter on July 31, Caliber.Az reports per Lithuanian media.

The dramatic announcement comes in the wake of escalating tensions within the governing coalition, triggered by a declaration from Democratic Union “For Lithuania” leader and Seimas Speaker Saulius Skvernelis, who publicly stated that his party would not continue in the coalition should Paluckas remain in office.

Skvernelis met with President Gitanas Nausėda on July 30 to discuss the deepening political crisis. That pressure reached a breaking point on July 31 when Lithuania’s Financial Crime Investigation Service (FNTT) conducted a high-profile raid on Dankora, a company owned by Paluckas’ sister-in-law. Dankora had received EU subsidies, which were reportedly used to purchase battery systems from Garnis—a company in which Paluckas himself holds a partial ownership stake.

President Nausėda later confirmed receiving Paluckas’ resignation directly.

“Gintautas Paluckas called me this morning and informed me of his resignation,” Nausėda told reporters.

“I welcome his decision,” he added. “He made the only right choice.”

Paluckas’ decision comes after weeks of mounting criticism and public concern. Earlier, President Nausėda had given the prime minister a two-week deadline to respond to the growing controversy or reconsider his position. Paluckas instead opted for a two-week vacation during that time, even as new allegations and investigations continued to emerge.

Under Lithuania’s Constitution, the prime minister is appointed and dismissed by the president with the approval of the Seimas. With Paluckas’ departure now confirmed, attention turns to the process of forming a new government and ensuring stability amid ongoing coalition uncertainty.

By Vafa Guliyeva