VILNIUS, Lithuania — Lithuanian Prime Minister Inga Ruginienė and her cabinet stepped down Tuesday after changes to the ruling coalition, setting the stage for the Baltic country’s third prime minister in two years and an incoming government that has pledged to pursue a more pragmatic relationship with China after years of strained ties.

Ruginienė’s government collapsed after the center-left Social Democrats ended their coalition agreement earlier this month with the scandal-ridden populist Nemuno Aušra party as one of its former leaders faces allegations of antisemitic rhetoric.

Remigijus Žemaitaitis, a former lawmaker, was fined 5,000 euros (about $5,800) last year by a Lithuanian court after it found that he had incited hatred against Jews, grossly downplayed Nazi Germany’s crimes and grossly minimized the Holocaust in an offensive and insulting manner in social media posts and public statements from May and June 2023.

The case is now with the appeals court as prosecutors ask for a stricter sentence.

Žemaitaitis has pleaded not guilty.

Ruginienė’s resignation decree will be submitted to President Gitanas Nausėda, who is expected to ask the outgoing administration to continue serving in a caretaker capacity until a new government is formed.

“Despite all the difficulties, we have much to be proud of, and each of you has made a significant contribution to the welfare of our state and the improving lives of its people,” Ruginienė, a Social Democrat and former labor union leader, told ministers on Tuesday.

The president has 15 days to submit a candidate for prime minister to parliament.

Under the coalition agreement signed last week by the new ruling majority, Social Democratic Party leader Mindaugas Sinkevičius is expected to be nominated for the post.

The coalition document signals a willingness to seek more stable relations with Beijing.

The new coalition partners say they support restoring diplomatic dialogue and expanding economic cooperation where it serves Lithuania’s interests, while maintaining the country’s commitments to the European Union, NATO and its strategic partnership with Taiwan.

The Social Democrats struck a deal with two other center-left parties to form the new coalition without the Nemuno Aušra party.

The new alliance controls 75 seats in the 141-member parliament, the Seimas.

Under the agreement, at least four ministerial posts will change hands, but major strategies are expected to remain the same.

If approved by the Seimas, the prime minister-designate will have up to two weeks to present a new government and its program, coordinated with the president, for parliamentary approval.