Coalition Government Collapses in Germany, Scholz Sets the Stage for Early Elections

Foreks - Germany's three-party coalition collapsed on Wednesday evening following Prime Minister Olaf Scholz's announcement that he would dismiss Finance Minister Christian Lindner due to disagreements over spending and economic reforms. The dismissal effectively removed Lindner's financially conservative Free Democratic Party (FDP) from the troubled coalition, forcing Scholz to call for a confidence vote set for January 15. Should Scholz lose this vote, early elections are expected by March.

In his statement from the chancellery, Scholz said, "Dear citizens, especially in times when uncertainty is increasing, I would like to spare you from this difficult decision." However, it became evident that the cracks within the coalition were too significant to overcome. While left coalition partners wanted to maintain social spending and stimulate the German industry with economic incentives, Lindner and the FDP insisted on adhering to the German government's strict spending rules and cutting taxes.

Scholz remarked, "Minister Lindner often obstructed laws inappropriately. He frequently engaged in small party-political tactics. He often betrayed my trust." Scholz expressed that he wanted Lindner to ease spending rules to allow for increased aid to Ukraine, but Lindner rejected this, stating that such a move would "violate my oath of office."

The FDP, led by Lindner, is the smallest party in the coalition and currently receives only 4% of votes—below the threshold required to enter the German parliament—indicating that its leaders are contemplating leaving the coalition to secure their political futures.