German Chancellor Olaf Scholz has dismissed Finance Minister Christian Lindner, leader of the Free Democratic Party (FDP), following escalating conflicts over economic policy within the coalition government.
The decision, confirmed by a government spokesperson on Wednesday, comes after months of discord among the coalition partners: Scholz’s Social Democrats, Lindner’s FDP, and the Greens. Tensions reached a breaking point in recent meetings, where Lindner expressed doubts about aligning on financial strategy and suggested that early elections in 2025 could restore governmental stability—a proposal Scholz ultimately rejected.
With a looming multibillion-euro budget shortfall, coalition leaders spent hours attempting to find common ground on fiscal planning, but a unified approach remained elusive. Scholz may soon seek a vote of confidence in the Bundestag, signaling a potential path toward early elections in March.
Meanwhile, the uncertain future of the 2025 federal budget poses a major challenge. German media reports that Scholz might proceed with a minority government composed of his Social Democrats and the Greens, potentially forcing him to negotiate legislative support on a case-by-case basis.