Lithuania’s prime minister, Gintautas Paluckas, stepped down on Thursday, yielding to growing pressure over his business dealings and those of his family.
The resignation of Mr. Paluckas, who has led the Baltic country’s government for less than a year, was announced by President Gitanas Nauseda. The prime minister also stepped down as leader of the Social Democrats, which came to power in November in a coalition government cobbled together to unseat the governing conservatives.
Mr. Paluckas has been under investigation by the authorities, following reports in the Lithuanian media about him and his family. One report alleged that a company owned by his brother’s wife, Virginija Paluckiene, had been improperly awarded European Union funding, and had then contracted a company owned by the prime minister.
Lithuania’s Financial Crimes Investigations Service on Thursday said it had raided a company that is owned by Ms. Paluckiene, but it did not name her in its statement.
Investigators were looking into possible misuse of a loan and the fraudulent acquisition of E.U. financial support, the agency said in a statement. Officers detained one of the company’s directors, and also searched the homes and vehicles of other executives, according to the statement.
Mr. Paluckas has denied wrongdoing.
A smaller party in his coalition, Democrats For Lithuania, on Wednesday threatened to quit the government if Mr. Paluckas did not resign over the allegations.
The political uproar over the investigations into Mr. Paluckas has triggered renewed scrutiny on cases involving him from over a decade ago. In 2012, Lithuania’s Supreme Court convicted him of orchestrating the purchase of rat poison at inflated prices for the capital city of Vilnius when he was its administrator.
The court sentenced him to two years in prison, but suspended the sentence on condition that he pay damages to the municipality of 16,500 euros, or nearly $19,000. This year, a media report said he had failed to pay much of that amount. Mr. Paluckas admitted that he had not completed the payment, saying he had made an error.
A law enforcement agency, the Special Investigation Service, began other investigations into Mr. Paluckas after several other media reports this spring and summer alleged he used his power as a city politician to improperly facilitate real estate projects in Vilnius.
Mr. Paluckas’ resignation triggered the resignation of his cabinet, in line with Lithuania’s constitution, but the coalition government is expected to remain intact, and the Social Democrats will choose a new leader to become the next prime minister.
Hours after the resignation of Mr. Paluckas on Thursday, the Social Democrats named an interim leader.
The government’s policies, especially its foreign and security policies are unlikely to change. In Lithuania, a small country that shares a border with Russia, antagonism toward its much larger neighbor has been a politically unifying force.
Lynsey Chutel is a Times reporter based in London who covers breaking news in Africa, the Middle East and Europe.
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