Lithuanian Prime Minister Gintautas Paluckas resigned on Thursday following a corruption probe and growing public protests over allegations of unethical financial dealings.

“Just over an hour ago, I informed the president that I have made the decision to resign from the position of prime minister,” Paluckas said in a statement. He also announced he was stepping down as leader of the Social Democratic Party (LSDP).

His departure is expected to bring down the Cabinet, leaving the country without a functioning government until a new coalition is formed.

Paluckas had faced mounting pressure after reports linked him to questionable EU loans and business ties involving his relatives. A two-week ultimatum was issued after the scandal sparked investigations.

“As prime minister, I do not feel that I have made any fundamental mistakes or violations. I have carried out my duties honestly, to the best of my understanding and ability,” he said.

The controversy deepened when media reports revealed Paluckas never paid an $18,000 fine tied to a 2021 criminal case known as the “rat poison scandal.” He had also received a two-year prison sentence but never served time behind bars.

President Gitanas Nausėda confirmed that coalition talks are underway. “There is more than one candidate who could fully carry out the duties of prime minister,” he said, stressing that the next nominee will be thoroughly vetted to prevent “another situation like this.”