The approval of next year’s budget will be the first test for a potential new Lithuanian Cabinet, President Gitanas Nausėda said on Thursday after nominating Social Democrat Inga Ruginienė for prime minister to the Seimas.
“The 2026 state budget will be absolutely crucial – the first major test for this government and the ruling coalition,” Nausėda told reporters.
The president acknowledged that reaching an agreement would be challenging, as the three political forces negotiating the coalition hold very different views on tax reforms.
“Given this diversity of opinions, finding a compromise will be difficult, but it is possible,” he said.
On Wednesday night, the Social Democrats, the Lithuanian Farmers and Greens Union (LFGU), and the Nemunas Dawn party agreed to continue coalition talks, but decided to consult within their parties first, a process scheduled for Thursday.
Speaking from the Seimas tribune, Nauseda praised Ruginiene’s record as minister of social security and labour, noting that her willingness to seek compromise had been instrumental in implementing reforms to the second pillar of the pension system.
“I believe that a government led by Inga Ruginienė will pursue socially just, Western-style policies, respond to the public’s trust in state institutions, and address their concerns constructively,” the president said.
He also highlighted the complex geopolitical challenges facing the candidate and stressed the importance of continued preparations for Lithuania’s presidency of the Council of the European Union in 2027. Other priorities, he said, include reducing poverty and regional exclusion, ensuring sustainable pension growth, and maintaining access to public services.
On Thursday, Ruginienė answered questions from lawmakers in the Seimas and is scheduled to meet separately with the Homeland Union-Lithuanian Christian Democrats and Liberal Movement political groups.
The Seimas is expected to vote on her appointment next Tuesday. The vote will be open, and a simple majority will suffice for confirmation.
If approved, Ruginienė will have no more than 15 days to present a new Cabinet and a government programme, agreed with the president, for parliamentary approval.
Ruginienė became a member of the Seimas last autumn and was subsequently appointed minister of social security and labour in the government of former Prime Minister Gintautas Paluckas. Prior to entering politics, she chaired the Confederation of Lithuanian Trade Unions.
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