Germany’s ruling coalition government collapsed on Wednesday, plunging the country into political turmoil as Chancellor Olaf Scholz dismissed Finance Minister Christian Lindner. The move set the stage for a potential snap election, just hours after Donald Trump was elected president in the U.S., creating additional uncertainty across Europe.
Following Lindner’s removal, Scholz now faces the prospect of leading a minority government composed of his Social Democrats and the Greens, the second-largest party in the coalition. Scholz will need to rely on ad-hoc parliamentary support to pass legislation and has scheduled a confidence vote in the German parliament for January 15. If the vote fails, it could prompt early elections by the end of March.
The collapse of the three-party alliance comes after months of internal strife over Germany’s budget policies and economic direction, amid rising public dissatisfaction. Scholz criticized Lindner for his obstructive stance on budget matters, accusing him of prioritizing party interests over the nation’s needs. The chancellor’s decision to fire Lindner comes at a particularly volatile time for Germany, facing economic stagnation, a struggling military, and aging infrastructure.
In a bid to navigate the crisis, Scholz has reached out to opposition leader Friedrich Merz for support, particularly to pass the national budget and increase military funding. However, Merz, whose party is leading in the polls, has yet to respond to Scholz’s request for collaboration.
The government’s collapse adds to growing frustration among the public, as both the far-right and far-left have gained traction. The crisis also highlights divisions over how to address Germany’s economic challenges, including energy costs and the future of the auto industry.
As the coalition disintegrates, there are fears that the political vacuum could benefit populist movements, including the anti-immigrant Alternative for Germany (AfD), further destabilizing the political landscape in both Germany and the European Union.
