Chaos erupts in Germany as Scholz sets confidence vote date after coalition 'collapses'

Olaf Scholz is the German Chancellor (Image: GETTY)

The ruling German coalition appears to have collapsed after Chancellor Olaf Scholz sacked Finance Minister Christian Lindner. Sharing reports of the sacking, journalist Trent Murray wrote on X: "It appears the German Government has collapsed".

Mr Lindner is a member of the pro-business Free Democrats (FPD), one of the parties making up Germany's so-called "traffic light coalition", which has been in power since 2021.

Leaders of the coalition gathered at the chancellery in Berlin on Wednesday evening (November 6). Mr Scholz said after the meeting: "I feel compelled to take this step to prevent damage to our country. We need an effective government that has the strength to make the necessary decisions for our country."

Mr Scholz also announced there will be a vote of confidence on his government on January 15 next year, a move that could push parliamentary election to as early as March.

The sacking came after the FPD issued a paper urging economic reforms which Mr Scholz's Social Democratic Party and the Greens couldn't stomach. Mr Lindner reportedly told Germany's leader that he saw no future in the coalition and called on Mr Scholz to call snap elections.

Christian Lindner reportedly told Olaf Scholz he sees no future in the coalition (Image: Getty)

Two insiders with knowledge of the talks told Politico that the move prompted Mr Scholz to sack the finance minister.

Mr Scholz said Lindner had broken his trust too often, adding: "He even unilaterally cancelled the agreement on the budget. After we had already agreed on it in long negotiations.

"There is no basis of trust for further cooperation. Serious government work is not possible like this."

Chancellor Scholz, Mr Lindner and Economy Minister Robert Habeck of the Greens have been desperately trying to boost Germany's faltering economy but have long been at odds as to how to do it.

The meeting of the coalition was focused on how a billion-euro hole in the 2025 budget could be plugged and how the German economy can be put back on track. But the coalition leaders disagree fundamentally over how to kickstart the economy.

After weeks of government infighting many Germans were already wondering before today's meeting if the coalition government would survive the 11 months before the next election is due to be held - next autumn.

Robert Habeck (pictured), Olaf Scholz and Christian Lindner want to kickstart Germany's economy (Image: Getty)

Ahead of the meeting on Wednesday, Mr Scholz had appealed to the coalition partners to find a solution and put Germany before different party convictions.

He said yesterday (November 5): "As far as the situation of the government’s further work is concerned, it is about feeling committed to the country, not about ideology.

"And it is clear that we can. In this respect, the question is not whether it can be done at all, but whether it is possible, and everyone has to work on that now."

The Free Democrats reject tax increases or changes to Germany’s strict, self-imposed limits on debt. Mr Lindner's party says it is time to save money on welfare.

But left-wing politicians want massive state investment and reject talk of cutting welfare programs as well as other ideas Mr Lindner proposed in his paper last week.