Following Prime Minister Gintautas Paluckas' decision to step down last week amid a series of corruption allegations, the Lithuanian government formally resigned on Monday.

Lithuania's President Gitanas Nauseda has appointed Finance Minister Rimantas Šadžius as acting prime minister. Šadžius will serve as the government's caretaker until a new cabinet is sworn in.

Paluckas, who had been prime minister since December 2024 and served as leader of the centre-left Social Democrats party, stepped down following investigations into his business dealings that prompted protests in the Baltic country calling for his resignation. Paluckas also resigned as party chief. He denies all allegations.

“It may sound dramatic, but I’m stepping down – you will continue your work in an acting capacity until the new prime minister decides what changes will be made,” Paluckas said during a government meeting on Monday morning, before handing his formal resignation to Nauseda.

The ruling Social Democrats will stay in power and are expected to choose a successor on Wednesday.

Former Jonava Mayor and ex-Minister of Economy Mindaugas Sinkevičius is considered the frontrunner, despite his own scandal over abuse of office, which saw him sentenced to a fine and a three-year ban from holding office in May 2024. He lost his appeal in September of the same year.

Among other potential candidates for the new head of government are former MEP and Minister of National Defence Juozas Olekas, Minister of Social Security and Labour Inga Ruginienė, and Mayor of Vilnius district Robert Duchnevič.