Germany entered a major political crisis on Wednesday when the collapse of Chancellor Olaf Scholz’s ruling coalition paved the way for early elections next year.
The turmoil has hit Europe’s largest economy as it battles a sustained recession and Berlin worries about what impact Donald Trump’s return to the White House will have on trade and security ties.
Scholz said he would seek a vote of confidence by January 15 so lawmakers could “decide whether to clear the way for early elections” which could take place by the end of March, six months earlier than scheduled.
The Social Democrat leader spoke at a dramatic night session of the three-party coalition after the Free Democrats sacked their rebellious finance minister Christian Lindner and declared there was no longer “any basis of trust” with Lindner.
The embattled chancellor also said he would seek talks with conservative Christian Democratic Union leader Friedrich Merz, offering to “work together constructively on issues important to our country.”
Vice Chancellor Robert Habach indicated that his Greens party, the third coalition partner, would remain in a minority government and “will continue to meet our obligations”.
Greens Foreign Minister Annalena Baerbock said the political chaos in Berlin at such a globally unstable time means “it is not a good day for Germany and not a good day for Europe”.
– Shadow of Trump –
Scholz fired Lindner during a crucial meeting of senior figures from the three ideologically diverse parties, which have been at odds for months over economic and budget issues.
Lindner proposed sweeping reforms to stimulate the troubled German economy, which were opposed by the other two parties.
He had long sought to rein in an unhappy coalition and repeatedly warned of an “autumn of decisions” as tough budget negotiations loomed.
Scholz, after dismissing Linder – who took with him three other FDP cabinet ministers – bitterly attacked the minister for his “petty political tactics” and accused him of a level of arrogance that was “completely “Incomprehensible”.
Scholz cited Trump’s re-election, Germany’s economic crisis and the wars in Ukraine and the Middle East as why Europe’s top economy now needs political certainty.
“We now need clarity on how we can finance our security and defense in the coming years without jeopardizing the unity of the country,” he said. “Given the election in the US, this is perhaps more urgent than ever.”
With the German economy expected to shrink for the second year in a row, Lindner has called for corporate tax cuts, easing of climate rules and cuts in social benefits.
Many of those ideas are anathema to Scholz’s SPD, Germany’s traditional workers’ party and the left-leaning Greens.
This bitter dispute led to Scholz, Lindner, and Habach presenting contradictory economic plans and holding rival meetings with business leaders, deepening a sense of dysfunction and weakening Scholz’s authority.
– ‘The situation is serious’ –
Scholz said he had offered Lindner a plan with steps to reduce energy costs and boost investment for companies, protect auto industry jobs and continue support for Ukraine.
But Linder – a fiscal supporter and a strong opponent of raising new debt – had shown “no willingness” to accept this, with Scholz saying, “I no longer want to subject my country to this kind of behaviour”.
Scholz and his rebel coalition partners have drawn a sharp response from Merz, who has long called for early elections, with polls showing he would be the frontrunner.
“We cannot afford to argue for another year,” CDU lawmaker Norbert Roettgen said after Trump’s victory. “Germany is important in Europe, and if the government cannot live up to that, it will have to make way now.”
Late on Wednesday, Markus Soeder, head of the CDU’s Bavarian ally CSU, demanded an immediate vote of confidence and warned that “there should be no tactical delay”.
Alice Weidel of the far-right Alternative for Germany party, now in second place, made the same demand and described the end of the coalition as the long-awaited “liberation of our country.”
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
