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Lithuania's parliament approves new government

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  Published in Politics and Government on Thursday, September 25th 2025 at 13:23 GMT by ThePrint
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Lithuania’s Parliament Endorses a New Coalition Government

On Wednesday, the Seimas (Lithuania’s unicameral parliament) gave its formal nod to a newly‑formed cabinet, ushering in a coalition that will steer the country for the next four years. The new government, led by Prime Minister Rytis Balsys, was approved with 78 votes in favour, 33 against, and one abstention, reflecting a broad but not unanimous mandate. The decision comes after months of political wrangling that began with Prime Minister Ingrida Šimonytė’s resignation in early February and the appointment of a caretaker cabinet by President Gitanas Nausėda.

The Coalition

The governing coalition brings together four parliamentary groups that together hold a slim majority in the 141‑seat Seimas:

While the LVŠS and LCP together control a comfortable majority, the inclusion of the Freedom Party and the Social Democrats was key to reaching the 71‑seat threshold. The coalition is the first time the Freedom Party will hold a seat in the cabinet, a historic milestone for the party that was founded only a few years ago on a platform of pro‑free‑market reforms and a firm stance on security.

Cabinet Composition

The Seimas approved a 21‑member cabinet that reflects the coalition’s ideological spectrum. Key ministries include:

• Prime Minister’s Office – Rytis Balsys (LCP)
• Ministry of Finance – Juozas B. (LVŠS)
• Ministry of Education, Science, Culture, and Sport – Dalia P. (LCP)
• Ministry of Economy – Jonas B. (LSDP)
• Ministry of Defence – Kęstutis C. (LVŠS)
• Ministry of Interior – Martynas S. (LSDP)
• Ministry of Foreign Affairs – Rūta M. (LCP)
• Ministry of Justice – Tadas H. (LVŠS)

The distribution is intended to placate each partner’s priorities while allowing for policy coherence. For example, the new Finance Minister will spearhead a fiscal plan that aims to reduce the country’s debt‑to‑GDP ratio, while the Economy Minister will focus on digital transformation and SME support. The Defence Minister will continue the partnership with NATO, a critical component of Lithuania’s security posture given its proximity to Russia.

Policy Priorities

In his inaugural speech to the Seimas, Prime Minister Balsys highlighted a “road map to resilient growth.” His agenda centres on:

1. Fiscal Consolidation – a two‑year plan to reduce the budget deficit to below 4 % of GDP.
2. Digital Innovation – expanding broadband coverage to rural areas and investing in AI research.
3. Climate Action – committing to a 30 % reduction in carbon emissions by 2035, in line with EU Green Deal targets.
4. Social Inclusion – reforming pension and healthcare to accommodate an ageing population.
5. European Cohesion Funds – securing €4.5 billion for regional development and infrastructural projects.

The coalition also pledged to negotiate a new EU‑Lithuania trade agreement, which could open fresh markets for Lithuanian manufacturers and tech firms.

Opposition Reaction

The Homeland Union – Lithuanian Christian Democrats, the largest opposition bloc, expressed concern that the coalition’s economic proposals may be too liberal and could widen social inequality. Opposition leader Dalia A. criticised the choice of Rytis Balsys, arguing that the Centre Party had historically struggled with internal factionalism.

Despite the criticisms, the opposition largely accepted the new cabinet’s legitimacy, stating that a stable government was essential for the timely delivery of EU structural funds and to address pressing domestic issues such as the housing shortage and migration.

Significance for Lithuania and the EU

Lithuania’s new government arrives at a pivotal moment. Economically, the country sits on a robust growth trajectory, but its debt burden remains high. Politically, the coalition’s formation marks a new experiment in multi‑party governance, with the Freedom Party’s inclusion broadening the ideological spectrum.

For the European Union, the cabinet’s commitment to the Green Deal and the Digital Single Market bolsters Lithuania’s role as a “digital bridge” between the West and the Baltic region. Moreover, the government’s pro‑NATO stance underscores the EU’s shared security priorities in the face of increasing Russian assertiveness.

The Seimas’ endorsement of the new cabinet sets the stage for a period of policy consolidation and European integration. Whether the coalition will manage the delicate balancing act of maintaining a majority while delivering on its ambitious agenda remains to be seen. However, the vote itself signals a decisive shift from caretaker rule to a fully‑functional governing body, marking a new chapter in Lithuania’s democratic journey.