German government collapses

Germany’s ‘traffic-light’ coalition has fallen apart, leaving Olaf Scholz at the helm of a minority government consisting solely of his Social Democratic Party (SPD) and the Greens. This follows the chancellor’s dismissal of Free Democratic Party (FDP) leader Christian Lindner as finance minister.

In response to Lindner’s dismissal, which came after failed crisis talks on Wednesday night, the FDP’s parliamentary group leader, Christian Durr, announced that the party is withdrawing all its ministers from Scholz’s government, formally ending the three-way coalition.

The Greens expressed regret over this development, but stated that they wish to remain part of a minority government, emphasizing the need for the EU – and Germany in particular – to demonstrate its capacity for action following Donald Trump's election as US president.

“I want to say for us that this feels wrong and not right tonight – almost tragic on a day like this, when Germany must show unity and the ability to act in Europe,” Vice Chancellor and Economy Minister Robert Habeck said in a joint press statement with Foreign Minister Annalena Baerbock on Wednesday night.

“This is not a good day for Germany and also not a good day for Europe,” Baerbock added.

Lindner was fired after he reportedly proposed early elections when the leaders of the three coalition parties once again failed to find common ground on how to address the multibillion-euro deficit in next year’s budget.

“All too often, Minister Lindner has blocked laws in an inappropriate manner,” Scholz stated, accusing Lindner of refusing to ease spending rules which, among other things, would allow for more aid to Ukraine.

Lindner in turn accused the chancellor of ignoring the real “economic concerns” of the German people. “Olaf Scholz has long failed to recognize the need for a new economic awakening in our country,” he said.

Scholz said he now wants to reach out to opposition leader Friedrich Merz of the Christian Democrats to offer him the “opportunity” to work with his government, adding that in light of the US election, this is “perhaps more urgent than ever.”

Meanwhile, the right-wing Alternative for Germany (AfD) opposition party welcomed the coalition's collapse as long-overdue “liberation” for Germany.

“After months of gridlock and countless self-centered therapy sessions, we now urgently need a fundamental political fresh start to lead the economy and the country as a whole out of the severe crisis into which it has been plunged by the ideology-driven policies of the SPD, Greens, and FDP,” AfD parliamentary leaders Alice Weidel and Tino Chrupalla said in a statement on X.

Scholz announced that the Bundestag will hold a vote of confidence on January 15. According to the German Constitution, if the chancellor fails to secure sufficient support, he may formally request the president to dissolve the 733-seat lower house and call new elections within 60 days. This could push Germany's parliamentary elections from next autumn to March 2025.