LRT English Newsletter – May 30, 2025
Less than six months into his term – and before pushing through his government’s consequential tax reform legislation – Prime Minister Gintautas Paluckas is facing a scandal that has the opposition calling for his resignation. An investigation dropped on Wednesday night reveals that a company co-owned by Paluckas secured a subsidised loan from the national development bank while he was already in office. Moreover, he has not recused himself from subsequent decisions on the said bank.
While Paluckas insists he did not break any laws, having declared all his private business interests, and does not participate in the company’s management, the investigation shows he signed off on a capital infusion in order to meet eligibility criteria for the loan. Really bad optics at the very best, concede even his political allies.
Another curious detail is that Paluckas co-owns a successful electronics business that is 15 years old – but founded a new company last year to develop battery systems. It is the one that applied for the state loan under a programme designed to support startups.
Frost and sinkholes
This unseasonably frosty spring has led to many farmers losing their berry and fruit crops. The government declared a nationwide emergency this week, hoping this will help mount a more effective response – and secure EU funds.
Heavy rains in northern Lithuania have also wreaked havoc, washing away underground gypsum layers and leading to sinkholes. A house in Pasvalys collapsed when the ground it stands on caved in this week.
Retreat from Zapad
Military observers have their eyes on Zapad 2025, the biennial drills organised by Russia and Belarus near their western borders (hence the name, which means “the west”). It was last held in 2021 – just months before Russia invaded Ukraine – and skipped 2023. According to a Lithuanian armed forces official, the military exercise of some 13,000 troops will not be any bigger or more threatening to NATO than the previous ones.
Moreover, the Belarusian defence minister announced this week that Zapad 2025 will be scaled back somewhat and moved further from the border – purportedly to deescalate tensions in the region.
Michelin stars
Michelin, which published its first guide on fine dining in Lithuania last year, released its updated edition this week. Several new restaurants were added to the list of honourees, although the same four retained their one-Michelin-star rating. Make sure to book a table if you’d like to drop in.
Aid for the wrong people
Over €1 million in EU aid intended for Ukrainian refugees in Lithuania was mistakenly distributed to citizens of 43 other countries, including Russia and Belarus, according to an investigation by the State Audit Office. The misallocation, affecting 813 individuals between 2022 and 2023, led to the resignation of the European Social Fund Agency’s director. The agency contends that the rules at the time permitted aid to other vulnerable groups – mostly in the form of language classes and subsidised employment. The Ministry of Social Security and Labour has launched an internal audit, and the Auditor General’s Office is seeking reimbursement of the misused funds.
Editor’s picks
– History is complex and so are people, argue artists who are planning an action opposing plans to remove a monument in Vilnius to the poet Salomėja Nėris.
– Another monument, near Joniškis, has angered the local Jewish community – they say it was built without consulting them and in violation of religious laws against disturbing burial sites.
– Lithuania is looking to the EU to help it meet its 12-billion-euro military spending targets. According to an MEP, Vilnius could expect 3 billion from the EU’s 150-billion joint borrowing pool.
– Not quite Beyoncé in Stockholm, but Kaunas is eyeing a boost to the local economy from several A-listers performing this summer.
– Finally, here’s an in-depth interview with Lithuania’s EU commissioner about Ukraine, the US, and Israel.
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