The German government was left on the brink of collapse after Chancellor Olaf Scholz unexpectedly sacked his finance minister, Christian Lindner, causing political disarray in Europe’s largest economy. Lindner’s removal came after months of internal conflict within the three-way coalition, which had already been losing popularity.
Shortly after, the FDP withdrew all its ministers from the cabinet, effectively ending the coalition. Scholz announced his intention to seek a vote of confidence in January, potentially paving the way for early elections by March.
Scholz expressed frustration with Lindner’s refusal to compromise on key issues such as energy costs, defense spending, and support for Ukraine, accusing him of using “party political tactics” at a time of international instability. Lindner, on the other hand, criticized Scholz for ignoring the country’s economic concerns, and his party, currently polling below the parliamentary threshold, expressed plans to fight for a new government.
The situation has deepened Germany’s uncertainty as it faces economic challenges and political instability, particularly amid a possible trade war with the US and its crucial role in supporting Ukraine. A recent poll showed 82% of Germans have little faith in the government’s ability to address the ongoing economic crisis.