Lithuania enters 2025 with a highly experimental coalition government, consisting of ideologically diverse formations that will govern together for the first time. On 12th December, the Seimas (the country’s unicameral parliament) approved the new cabinet led by Gintautas Paluckas as Prime Minister. The new government is supported by the Social Democratic Party of Lithuania (LSDP), the centre-left For Lithuania (DSVL) and the populist-nationalist Dawn of Nemunas (PPNA). The three parties hold an 86-seat majority in the 141-seat parliament.

The formation of the new government comes after the Social Democrats won the country’s latest parliamentary elections on 27th October, defeating their main rival, the centre-right Homeland Union (TS-LKD). Two other formations also entered parliament (the Liberals’ Movement and the Farmers and Greens Union) while independent and other nationalist candidates also picked up a small number of seats.

While LSDP chair Vilija Blinkevičiūtė was widely expected to become Prime Minister, she eventually backtracked from accepting the position, citing health reasons, clearing the way for her deputy (Paluckas) to head the new government. Paluckas also broke away from Blinkevičiūtė by deciding to include the nationalist Dawn of Nemunas in the new ruling bloc, despite previously pledging to keep the far-right out of government.

The new cabinet is widely expected to maintain Lithuania’s strong pro-Western orientation, high defence spending and support for war-torn Ukraine. Domestically, priorities will likely include adjustments to the country’s taxation, welfare and social security systems, while supporting the green energy transition will also be high on the agenda. At the same time, the ideological divides between the ruling bloc will likely mean that political instability will be a key risk to monitor, even short term. In the meantime, PPNA leader Remigijus Žemaitaitis has already threatened to leave the coalition if he is not elected deputy speaker of parliament. Since a substantial number of PPNA members prefers staying in government, a potential split within the party’s parliamentary group also remains possible.