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home > publications > newsletter > 2006 > July 2006 > in the news > lithuania
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By Christian Pfeifer

Following allegations of corruption, the largest member of the ruling coalition in Lithuania, the Labour Party, withdrew on 31 May, forcing the prime minister to resign. As the Financial Times reports, President Valdas Adamkus had previously lost faith in two Labour party ministers because of allegations of corruption. He accused them of “deliberate and cynical confusion of private and public interest”.

The Economist lists three accusations made against the Labour Party: taking kickbacks from European Union grants, breaching campaign finance limits in the 2004 elections and accepting money from Russia.

The Financial Times quotes academics saying that these developments are the “most serious political crisis” to hit the state since 1991. However, the Economist suggests that Lithuania is changing for the better because corruption has become a more important issue and public tolerance is decreasing.