Lithuania

Lithuania Forms New Government

Lithuania’s government officially resigned. On July 31, Prime Minister Gintautas Paluckas stepped down as both head of government and leader of the Social Democratic Party, following months of mounting pressure over ongoing investigations into his alleged shady business dealings before and while in office. According to the Lithuanian Constitution, the resignation of the Prime Minister requires the resignation of the entire Cabinet.  Now, as political negotiations and discussions about the composition of the new government unfold, Lithuania’s civil society is closely watching who will take the reins - and what direction the new leadership will pursue. While the country’s foreign policy is expected to remain stably pro-European and pro-NATO, one thing is clear: pro-European civil society is determined to put pressure to prevent again the inclusion of Nemunas Dawn, whose leader is notorious for his anti-Semitic statements.

A picture from a fishing trip let to a corruption scandal

The Instagram story of one of Lithuanias wealthiest businessman, Tautvydas Barštys, showed then acting Prime Minister Gintautas Paluckas happily holding a fish he just caught, accompanied by Barštys and the mayor of Druskininkai Ričardas Malinauskas, recently convicted in a high-profile political corruption case. The Prime minister’s weekend activities in controversial company sparked criticism in civil society and opposition, further journalistic investigations and raised doubts on statements that the meeting was just a “coincidence”. “This fishing trip brings us back to the old traditions – only now it’s fishing with influential individuals instead of hunting,” said Viktorija Čmilytė-Nielsen, leader of the opposition Liberal Movement.

From fishing to business deals

The story soon escalated as investigative journalists published one report after another, uncovering Prime Minister Paluckas’s political and business connections, questionable loans, and a succession of dubious financial transactions. The journalistic revelations prompted anti-corruption and law enforcement agencies to launch formal investigations.

"How is the fishing trip related to the later published story about a preferential loan? Well, it isn't. Except that the Prime Minister’s fishing trip in interesting company drew attention to Gintautas Paluckas," writes Šarūnas Černiauskas, one of the journalists, who published the investigation.

In the upcoming months, investigative reports by Lithuanian Laisvės TV and the journalism centre Siena, revealed that company “Garnis”, co-founded by Paluckas and his business partner, received a subsidised €200,000 loan from the national development bank while Paluckas was already serving as prime minister. Further report revealed that a Cypriot company sold Paluckas a discounted apartment in central Vilnius in 2012, on a plot of land he had overseen as a senior official at the Vilnius City Municipality. Among other facts. Further report revealed he failed to fully pay damages to Vilnius Municipality after a court found him guilty of public procurement irregularities.

Civil society calls for political responsibility and to end coalition with Nemunas Dawn party

However, despite the published investigations, Paluckas has consistently denied any wrongdoing. He dismissed the allegations, sarcastically comparing them to “OnlyFans content and telephone scammers,” and brushed off the journalists who brought the issue to light as unserious “internet explorers” blowing things out of proportion. 

The allegations and failing to provide clear answers to journalist, prompt strong reactions not only from the political parties, but from the civil society as well: in July about 2000 people gathered at the Parliament, calling political responsibility from current government: including either Paluckas providing clear explanations or resigning, also protesters demanded to exclude anti-semitic Nemuno Ausra from the ruling coalition.

These protests were not the first time the public has pushed back against the political decisions of this government. Following the parliamentary elections last October, the governing coalition was formed by the Lithuanian Social Democratic Party with 52 seats, the center-left Democrats ‘For Lithuania’ with 15 and with Nemunas Dawn with 19, – a total of 86 seats in the 141-member Seimas. Despite the fact that Lithuanian Constitutional Court ruled last April that Žemaitaitis’ statements about Israel and Jews violated articles in the constitution on hate speech and discrimination.

To protest the antisemitic government, thousands of people gathered in towns across Lithuania to show that there should be red lines in politics, including zero tolerance for antisemitism. Over 30 civil society organisations signed a letter to social democrats, calling the coalition with antisemitic party the “fatal mistake”.

However, despite severe backlash from Lithuanian civil society and the international community, the coalition - including the Nemunas Dawn party - continued its work. This was followed by internal disputes and an acknowledgment from the President, who admitted that including Nemunas Dawn in the coalition was a "mistake." 

Resignation Amid Public Pressure: Paluckas Steps Down

President Nausėda earlier in July gave Paluckas two weeks to either respond to growing public concerns or reconsider his position. Paluckas went on a two-week vacation during that period, claiming that he has no plans to resign and that the government operates smoothly. Social democrats party also backed the PM until the last minute: before his vacation issued the statement, calling the government’s performance stable and effective, and urging that he remain in office until legal authorities conclude their investigations into his business activities and assets, the government lasted until last week.

However, then come the controversy that ultimately proved fatal to Paluckas’ premiership - it was published that the company “Dankora” owned by Paluckas’ sister-in-law had received EU funding, most of which was spent on purchasing goods from Paluckas’ company. On the same day when officials carried out searches at Dankora’s offices, within hours, Gintautas Paluckas phoned President Nausėda to announce his resignation. After the Paluckas resignation, President said Paluckas had made the only right choice: “I welcome his decision.” 

On the same day, the protest took place in front of the Presidential palace. Initially, the demonstration was intended to exert pressure on the president to voice his lack of confidence in Prime Minister Gintautas Paluckas and demand the latter’s resignation. After his resignation,  protest organizers, the Lithuanian Liberal Youth, note that nevertheless, one of the core issues affecting democracy remains unresolved. Rally was attended by representatives of different political opposition parties, including members of the Liberal movement (Liberalų sąjūdis) and Freedom party (Laivės partija). Protesters also called on Nausėda to critically assess the recent rhetoric of his chief advisor Frederikas Jansonas.

 “Our goal is to show that selective application of political morality, false statements, and open insults towards volunteering youth cannot go unnoticed, and the President’s favoritism toward a single party cannot continue,” the organizers stated on their Facebook page.

A Joke, Cheaper Lattes, and Fuel for Aliens: Presidential Adviser’s Ironical Attitude Towards Protesters

By “open insult”, organizers have referred to recent remarks by President's Chief Adviser Frederikas Jansonas. Which, when asked about an upcoming protest, responded ironically, saying that liberal youth talking about morality "must be a joke," since they come "from the party that was convicted of corruption."

However, not only were his remarks widely regarded as degrading, but they were also factually incorrect. The Liberal Youth is not affiliated with any political party and is not a political organization. In the same days, the Jansonas also referred to a Liberal Member of Parliament and Signatory of the Lithuanian Independence Act as "an old political rubbish". Experts, opposition figures, youth, and civil society organizations have strongly condemned this rhetoric, calling it not only inappropriate for a representative of the Presidential institution but also a form of open bullying.

The Lithuanian National Youth Council — the largest non-partisan association of youth NGOs in Lithuania — issued an open statement condemning the disrespect shown toward young people. They demanded "a public apology by the President of the Republic of Lithuania to youth organizations and the entire civil society for the degrading, aggressive rhetoric and for supporting and enabling it at the institutional level."

This offensive and degrading rhetoric towards civil society was not a coincident statement. In early July, when thousands gathered in front of Parliament to demand political accountability from the PM and an end to the coalition with antisemitic Nemunas Dawn, Jansonas again responded with sarcasm. Commenting on the protest, he questioned the protesters’ demands and joked about "the missing demand for cheaper latte coffee and for Martians to use eco-friendly fuel."

What’s next?

The next prime minister again will be picked by Social democrats, holding the majority in the Parliament. Under Lithuania’s Constitution, the prime minister is appointed and dismissed by the president with the approval of the Seimas. However, according to analysts, Social Democratic party will have a difficult time negotiating for support from its two current coalition partners, centre-left Union of Democrats “For Lithuania” and populist Nemunas Dawn, which disagree with each other.

The current junior partners in the coalition — the union of Democrats “For Lithuania” party — have indicated they may seek changes to the coalition’s composition, potentially excluding the Nemunas Dawn party. However, the future of the coalition, including whether some ministers will be replaced, is expected to become clearer in the coming weeks, depending on the new government leader. 

Liberal Movement stated, that they dreject to join the government. “We are not considering such a possibility at the moment. The circumstances that existed in the autumn have largely not disappeared - namely, the presence of Nemunas Dawn in the coalition,” said Viktorija Čmilytė-Nielsen, chairperson of the Liberal Movement. Despite the shakeup, the Lithuania’s foreign and security policy is not expected to shift, as Lithuania remains one of the most keen supporter of Ukraine’s victory, committed  EU and NATO member.

One thing is certain: Lithuanian civil society will continue to demand political accountability, transparency, the protection of democracy — and the exclusion of Nemunas Dawn from the ruling coalition. Will the Social Democrats repeat the same mistake twice? The coming weeks will tell.