Germany could head to an election as early as March after Chancellor Olaf Scholz dismissed his Finance Minister, destabilising his coalition government and possibly leading to its collapse.
Scholz has asked the Bundestag (Parliament) to vote on whether they remain confident in his Government.
If the vote fails, it could trigger an early election.
Outgoing Finance Minister Christian Lindner said Scholz is leading the country into a “phase of uncertainty”.
Germany’s Government
Germany has been led by coalition governments since World War Two.
Scholz, the leader of the centre-left Social Democratic Party (SPD), is the country’s Chancellor (Prime Minister).
He’s led a three-party coalition with the left-wing Greens Party and the centrist, pro-business Free Democratic Party since the 2021 election.
Lindner, the outgoing Finance Minister, is the leader of the Free Democratic Party.
Economy
Germany, Europe’s largest economy, has faced difficulties post-COVID.
Multiple economists predict Germany’s Gross Domestic Product (GDP) will shrink in 2024 compared with last year.
GDP measures the total value of goods and services in a country’s economy.
Scholz has proposed changes to the budget that would increase the country’s debt to fund larger government investments. Part of this proposed spending would have been to support Ukraine.
Lindner and Scholz have both confirmed the Free Democratic Party opposed this plan.
Scholz said Lindner rejected multiple compromises on economic policy. Lindner had been calling for cuts to government spending, including to welfare and the climate.
Lindner said Scholz wanted to override the country’s Constitution, which requires the government not to spend more than it makes, to fund the investments.
Lindner reply
Lindner spoke to reporters shortly after the news emerged of his dismissal.
He confirmed that the coalition between his party and the government had ended, leaving Scholz’ SPD and Greens without a majority.
“Olaf Scholz has shown he doesn’t have the strength to give his country a new boost,” Lindner said.
“He is leading Germany into a phase of uncertainty.”
What now?
Scholz has said he will call for a confidence motion to be moved in early January. The Opposition has pressured him to call one immediately.
If the motion fails, the German President (head of state) can dissolve Parliament within three weeks.
That would trigger a national election by March.
Germany is due to hold its next election by September 2025.
Germany politics
Scholz’ government has been trailing in the polls for the past two and a half years.
Support for the Opposition – the conservative Christian Democratic Union – has increased substantially.
Meanwhile, the far-right party Alternative for Germany (AfD) has also been growing in popularity.
The AfD won the most votes in a regional election in the eastern state of Thuringia earlier this year — the first time it defeated the mainstream parties at an election.
