Lithuanian Prime Minister Mr Rolandas Paksas resigned today, bowing to pressure after a key coalition party walked out of the minority government this week.
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President Valdas Adamkus, in hospital with appendicitis, accepted his resignation and appointed Economy Minister Mr Eugenijus Gentvilas acting prime minister until a new government is formed, an adviser told reporters.
Mr Gentvilas is a member of Mr Paksas's Liberal Union party.
"To form a stable majority within the coalition I see the only option is for the prime minister to resign.... I have signed a letter of resignation," Mr Paksas told journalists.
His resignation followed the withdrawal of the New Union party from the government on Monday after Mr Paksas rejected its demand to quit amid arguments over privatisation and other reforms.
New Union's departure left the government with only 41 seats in the 141-member parliament. Mr Paksas said he hoped his resignation would allow the ruling parties to rebuild their coalition and keep the leftist opposition from taking power.
