German government has collapsed

Germany’s governing coalition has imploded, leaving Chancellor Olaf Scholz at the head of a minority government composed of his Social Democratic Party (SPD) and the Greens.

This follows Scholz’s decision to dismiss Free Democratic Party (FDP) leader Christian Lindner from his role as Finance Minister after failed crisis negotiations.

Scholz accused Lindner of obstructing critical legislation and opposing necessary spending reforms, which he argued are crucial for Germany’s economy and aid efforts to Ukraine.

In response Lindner argued that Scholz’s leadership neglects Germany’s economic concerns, calling for an “economic awakening.”

Following this dismissal, the FDP announced its ministers would resign, formally ending Germany’s three-way “traffic light” coalition of the SPD, Greens, and FDP.

The Greens, while expressing regret over the coalition’s collapse, have committed to supporting Scholz’s minority government, stressing the importance of “stability in Europe” amid Donald Trump’s recent U.S. presidential victory.

Foreign Minister Annalena Baerbock and Economy Minister Robert Habeck echoed concerns about the negative impact on Germany and Europe, underscoring the need for unity.

Scholz indicated he would seek collaboration with Christian Democratic opposition leader Friedrich Merz to maintain stability.

A confidence vote is now scheduled for January 15 in the Bundestag, where failure to secure a majority could lead Scholz to request new elections, potentially shifting Germany’s elections from next fall to March 2025.

The right-wing Alternative for Germany (AfD) party celebrated the coalition’s collapse, calling it an opportunity for a “fresh start” to address Germany’s economic and political challenges.