German Government Ends Coalition, Expects Snap Election Soon

Chancellor Olaf Scholz of Germany announced that he had dismissed Finance Minister Christian Lindner, effectively ending their three-year-old ruling coalition and opening the door to a snap election.

This coalition was made up of Scholz’s Social Democratic Party (SPD), the Greens, and Lindner’s Free Democratic Party (FDP). However, it began to fracture months ago after Lindner proposed a plan to boost Germany’s economy, which did not align with the SPD and Greens’ positions, and amid disagreements over the 2025 budget, which still had a large funding gap.

Moreover, Lindner also rejected Scholz’s call for a pause on Germany’s debt brake, a restriction that limits government debt and sets the maximum size of the federal government’s structural budget deficit.

Scholz criticized Lindner for being too focused on his own supporters, deeming him irresponsible in terms of serving the common good and potentially harmful to the nation. As a result, Scholz called for a vote of no confidence on January 15, which could lead to a new election, potentially earlier than the scheduled March 2025 date.

Meanwhile, Lindner criticized Scholz for opposing his suggestions for an economic shift, calling Scholz’s counter-proposals unambitious. Nevertheless, Lindner announced that he and the FDP would continue to serve the country and prepare to cooperate with the next government.