Key Facts
• May 30, 2025: Prime Minister Paltuskas held a press conference in Riga.
• May 31, 2025: Paltuskas announced his resignation as Prime Minister and party leader.
• Allegations: Fraudulent loans involving a company co-owned by Paltuskas.
• Family business: Financial Crime Investigation Bureau raided a related company owned by relatives.
• Paltuskas denied all allegations of wrongdoing.
• Social Democratic Party to discuss the next Prime Minister candidate.
• October 2024: Social Democratic Party became the largest party after elections.
• December 2024: Three-party coalition government was formed.
• Lithuania approved increasing defense spending to 5–6% of GDP from 2026 to 2030.
• Lithuania borders Russia’s Kaliningrad and Belarus, making it a vulnerable NATO region.
Summary
Lithuanian Prime Minister Paltuskas announced his resignation on May 31, 2025, following allegations of fraudulent loans involving a company he co-owns. Additionally, a family-owned business was raided by the Financial Crime Investigation Bureau for separate fraud suspicions. Paltuskas, who also leads the Social Democratic Party, denied all accusations. His resignation prompts discussions within the party to select a new Prime Minister. The Social Democratic Party, which became the largest party in October 2024, formed a coalition government in December 2024. Under Paltuskas’ leadership, Lithuania approved a significant increase in defense spending to 5–6% of GDP from 2026 to 2030, reflecting its strategic position bordering Russia’s Kaliningrad and Belarus. The developments highlight political and security challenges in the Baltic region.
