Lithuanian Government in Transition as Finance Minister Takes Reins
Lithuania’s government is undergoing a period of change following the resignation of Prime Minister Gintautas Paluckas amid corruption allegations. Finance Minister Rimantas Šadžius has been appointed as interim prime minister, assuming the role on Monday, , and will lead the country as a caretaker until a new government is formed.
President Gitanas Nausėda formally accepted Paluckas’ resignation and tasked Šadžius with continuing the government’s duties, according to presidential advisor Tomas Beržinskas. The resignation of the entire cabinet followed Paluckas’ decision to step down last week, a move prompted by investigations into his business dealings.
Šadžius, a longtime Social Democrat, will serve as acting prime minister while parliament works to elect a new government. Under the Lithuanian constitution, the resignation of the prime minister necessitates the resignation of the entire government. The president now has 15 days to nominate a new prime minister for parliamentary approval.
The ruling Social Democratic Party, which holds the largest faction in the Seimas (Lithuanian parliament), is expected to decide on its nominee during a presidium meeting on Wednesday. Potential candidates reportedly include Jonava Mayor Mindaugas Sinkevičius, Minister of Social Security and Labour Inga Ruginienė, First Deputy Speaker of the Seimas Juozas Olekas, and Vilnius District Mayor Robert Duchnevič.
Once a new prime minister is approved by parliament, they will have up to 15 days to present a cabinet and government programme for approval by both the Seimas and the president.
Key Personnel Changes Within the Ministry
The transition period has also seen changes within the Finance Ministry itself. Marius Šima, the former chancellor of the Finance Ministry, submitted his resignation on Wednesday, . While Šima initially stated he submitted the request on his own accord, sources indicate that the decision was encouraged by Minister Vaitiekūnas due to disagreements between the two.
“Today I submitted a request to leave my position,” Šima told Lrytas. “By mutual agreement, after discussion, but I wrote the request to leave my position of my own free will,” he reiterated.
Šima did not disclose the specific reasons for his departure, citing “personal reasons.”
Minister Vaitiekūnas confirmed the resignation, stating, “By mutual agreement, we have spoken, and our paths are diverging. I want to thank the chancellor for his work and I hope that we will soon find a new person to take that position and continue the work constructively.”
In a separate development, Ieva Vareikytė, previously the minister’s press spokesperson, has also left her position. According to sources, this move was anticipated, as Vareikytė had been considering a career change. She has accepted a position with the European defense technology company “Onodrim Industries,” based in the Netherlands.
“I received an offer that comes only once in a lifetime. I am joining ‘Onodrim Industries’ – a company that recently announced attracting €40 million in initial capital investment,” Vareikytė stated on Facebook.
“It is sad to leave the Ministry of Finance. It was a wonderful time, wonderful people, I learned so much from all of them, and from each one individually in such a short time. We managed to achieve so much. We have shown that the Ministry of Finance is much more than just a budget ministry. It is an institution that makes very important strategic decisions for the prosperity of Lithuania, and nothing better than this minister and this team could have happened to Lithuania, I am sure – Lithuania will grow and strengthen in their hands,” she added.
New Advisor to Join Ministry
The Finance Ministry is preparing to welcome Linas Gudžinskas, a political scientist who recently left the Social Democratic Party following disagreements over a coalition with “Nemuno aušra” after the Seimas elections. Gudžinskas has accepted an offer from Minister Vaitiekūnas and is expected to begin working at the ministry within a few weeks.
Gudžinskas will work part-time at the ministry, continuing his work at Vilnius University. He will advise Minister Vaitiekūnas on strategic political issues, drawing on his experience in European integration and his previous role coordinating Lithuania’s positions in the Economic and Financial Affairs Council.
“I see the Ministry of Finance as a horizontal ministry, which essentially needs to see the entire country’s economy, all areas of governance, because, the state budget law covers everything,” Gudžinskas explained.
Gudžinskas and Vaitiekūnas have a long-standing relationship, which the political scientist believes will foster trust and collaboration. He expressed confidence in the minister’s ability to strengthen the team during this period of transition.
