Lithuania’s government falls apart as Prime Minister Paluckas resigns amid accusations of mishandling EU funds
31.07.2025 21:10
Lithuanian Prime Minister Gintautas Paluckas resigned on Thursday following a widening corruption scandal that has engulfed his family and inner circle, triggering the collapse of his cabinet after less than a year in office.
His resignation, confirmed first by President Gitanas Nausėda, came after Lithuania’s Financial Crime Investigation Service raided on Thursday UAB Dankora, a company co-owned by Paluckas’ sister-in-law. Investigators are probing whether European Union development funds intended for an electric boat charging facility were misused. The project — located in a village with no direct water access — had received more than 170,000 euros in EU funding, much of which appeared to benefit another firm, UAB Garnis, where Paluckas holds a 49 percent stake.
The move to return the funds by Dankora came too late to stem the fallout. Though the company claimed it had been unaware of Paluckas’ involvement with Garnis, public outrage and political pressure mounted following a joint investigation by Siena, the Lithuanian member center of the Organized Crime and Corruption Reporting Project (OCCRP), and the independent broadcaster Laisvės TV.
For two months, the two outlets have reported extensively on Paluckas’ opaque finances, including a questionable loan from a state-owned bank, unrepaid loans from a business with unclear origins, and increasingly, allegations surrounding a network of family-run enterprises benefiting from public funds.
Until Thursday’s raid, Paluckas had shown no intention of resigning, and President Nausėda had largely shielded him from political pressure, even after two criminal investigations were launched into the prime minister’s financial dealings.
In his resignation statement, Paluckas thanked the president and his coalition partners but described the allegations as part of a “coordinated attack” against his government and family.
Under Lithuania’s constitution, the resignation of the prime minister means the entire cabinet must also step down, ushering in a new phase of political uncertainty for the Baltic nation.
