Lithuanian Prime Minister Inga Ruginienė and her cabinet resigned Tuesday, a move that follows changes within the ruling coalition and sets the stage for the Baltic nation to potentially see its third prime minister in two years. The incoming government is expected to pursue a more pragmatic relationship with China after a period of strained ties.

Ruginienė's government collapsed after the center-left Social Democrats concluded their coalition agreement with the Nemuno Aušra party. The latter party has faced scrutiny due to allegations of antisemitic rhetoric made by one of its former leaders.

Remigijus Žemaitaitis, a former lawmaker associated with Nemuno Aušra, was fined 5,000 euros (approximately $5,800) last year by a Lithuanian court. The court found that Žemaitaitis had incited hatred against Jewish people, minimized the Holocaust, and downplayed Nazi Germany's crimes through social media posts and public statements made between May and June 2023. Prosecutors are appealing the decision, seeking a harsher sentence, while Žemaitaitis maintains his innocence.

Prime Minister Ruginienė submitted her resignation decree to President Gitanas Nausėda. The president is expected to ask the outgoing administration to continue in a caretaker capacity until a new government is established. Ruginienė, a Social Democrat and former labor union leader, expressed pride in her government's contributions to the nation's welfare and its citizens' lives.

Under the coalition agreement signed last week, the leader of the Social Democratic Party, Mindaugas Sinkevičius, is anticipated to be nominated as the new prime minister. President Nausėda has 15 days to present a candidate to the parliament, known as the Seimas.

The new coalition document indicates a willingness to foster more stable relations with Beijing. The partners in the new coalition have stated their support for re-establishing diplomatic dialogue and expanding economic cooperation in ways that benefit Lithuania. This approach is intended to be maintained while adhering to Lithuania's commitments to the European Union, NATO, and its strategic partnership with Taiwan.

The Social Democrats formed the new coalition with two other center-left parties, excluding Nemuno Aušra. This new alliance commands 75 seats in the 141-member Seimas. The agreement stipulates that at least four ministerial positions will change, but overarching national strategies are expected to remain largely consistent.

Following parliamentary approval, the designated prime minister will have up to two weeks to present a new government and its program, in coordination with the president, for the Seimas's consideration.