Litouws kabinet valt (en)

The Lithuanian government has fallen after a key coalition member withdrew its ministers due to allegations of illegal party financing.

The country's Labour party - the largest coalition party in the cabinet - on Wednesday (31 May) pulled out from the government after President Valdas Adamkus stated he did not trust two of its ministers, the BBC reported.

The social democrat prime minister, Algirdas Brazauskas, announced his resignation, suggesting he could "not see any possibility of continuing his work".

"I think the time has come for a new and younger generation to take over. I have been prime minister for five years, which has been enough," he told journalists.

Mr Brazauskas has led two successive governments since 2001.

Analysts expect the move will lead to a new round of coalition talks among the leading parties, with a strong likelihood of the social democrats featuring once again at the core of a new government, but under a new leader, according to Reuters.

The new mix is not expected to change the country's priorities, such as eurozone entry.

Vilnius' request to join the EU' single currency in 2007 was turned down earlier this month by the European Commission due to Lithuania's inflation exceeding the rules underpinning the euro.

Brussels has indicated, however, that Lithuania could still join in 2008 if succesful steps to curb inflation are taken.