Lithuanian Government May Fall If Ruling Party Loses Elections

(Bloomberg) -- Lithuania’s ruling party backed proposal to quit the government if its candidates lose presidential and European Parliament elections this month.

Ramunas Karbauskis, the chairman of the Peasants & Greens Union, said the two ballots are a test on how the public views the government’s work and the party wouldn’t continue in power if it fails to muster support. The party’s parliamentary caucus backed the proposal in a vote on Tuesday.

“I’m addressing society to respond to the question if this is what leadership they want,” Karbauskis, whose party’s main policy moves have been to raise pensions and introduce a child benefit, said in TV interview on LRT. “Why should we continue reforms for another year-and-a-half if the public doesn’t want this?”

Prime Minister Saulius Skvernelis, who’s running in Sunday’s presidential election, is trailing in opinion polls behind opposition candidate Ingrida Simonyte, an ex-finance minister, and former SEB Bank economist Gitanas Nauseda, an independent. Lithuanian law stipulates that governments resign and then seek reappointment after presidential elections.

Karbauskis suggested the opposition Homeland Union should take the initiative of forming a coalition if the ruling party loses elections. If the opposition fails to form a minority government, parliament could dissolve itself and call a snap ballot.

President Dalia Grybauskaite said the resignation threat was due to "tensions of the election season" and that after the votes "everything else will calm down."

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