Political Turmoil in Lithuania: Coalition at Risk Over Scandal

The Lithuanian government faces instability as a junior party in the coalition announces its intent to withdraw unless Prime Minister Gintautas Paluckas steps down. The demands stem from allegations of inappropriate business dealings involving a company owned by Paluckas's sister-in-law.

Currently, the centre-left For Lithuania party wields significant influence with its 14 parliamentary seats. Losing this party would leave the coalition with a precarious majority. The potential fallout could cause a shift in the balance of power within the 141-seat assembly. While Prime Minister Paluckas has asserted his innocence and remains unavailable for comment over the controversy, criticism mounts from opposition factions.

This political drama unfolds amid transactions where Paluckas's company is accused of supplying electric batteries, funded by a government agency, to his sister-in-law's business. However, the sister-in-law's firm has declined government funding, contesting any wrongdoing. The ultimatum for Paluckas's resignation is set for August 18, according to For Lithuania's leader Saulius Skvernelis, unless coalition conditions shift before then.

(With inputs from agencies.)