German president calls for 'reason' amid political crisis

German President Frank-Walter Steinmeier has called for "reason and responsibility" amid the political crisis sparked by the collapse of country's ruling three-party coalition.

The country needs "stable majorities and a government that is able to act" at a time of global upheaval, the head of state said.

"I expect all those in positions of responsibility to rise to the magnitude of the challenges we face."

It was not the time for "tactics and squabbling", he warned, pointing to the "uncertain political situation... in our own country, in Europe, in the world, and also after the elections in the United States."

After months of infighting, the coalition between Chancellor Olaf Scholz's Social Democrats (SPD), the Greens and the pro-business Free Democrats (FDP) finally collapsed last night.

The crisis was sparked when Mr Scholz sacked his finance minister Christian Lindner from the FDP, ousting the smallest party from the coalition.

The shock move leaves the chancellor's SPD and the Greens ruling in a precarious minority government at a time when Germany is facing multiple domestic and international crises.

NATO chief confident that 'Germany will be able to fulfil its obligations'

NATO chief Mark Rutte expressed confidence in Germany remaining a key player on the world stage.

"I'm sure that when it comes to defence, when it comes to foreign policy, that Germany will be able to fulfil its obligations," Mr Rutte said.

"I'm not worried about that.

"Olaf Scholz is a strong leader, I know him very well, so I think he will navigate during the coming months, making sure that Germany plays its role at the world stage."

Opposition push for confidence vote next week

Mr Scholz said he would seek a vote of confidence by 15 January so MPs can decide whether to call early elections by March, about half a year ahead.

But opposition leader Friedrich Merz of the centre-right Germany's Christian Democratic Union (CDU) and other parties have urged him to hold a confidence vote next week, not next year as he has offered.

If Mr Scholz were to lose a confidence vote, the German president, whose role is mostly ceremonial, would have to dissolve the parliament within 21 days.

"I am ready to take this decision," Mr Steinmeier said.

Elections must then be held within 60 days.

Speaking after a meeting of his parliamentary group, Mr Merz said Mr Scholz's three-party coalition with the Greens and the FDP had "failed".

"The decision taken last night... is the end of the coalition government and thus the end of this legislative period," he said.

Meanwhile, FDP Transport Minister Volker Wissing said he would leave the party and stay in government.

"I want to stay true to myself," Mr Wissing said, explaining why he was not joining other FDP cabinet ministers who have quit Mr Scholz's ruling coalition.

The turmoil leaves Germany facing a period of huge political uncertainty as it grapples with economic woes at home, the conflicts in Ukraine and the Middle East, and the looming return of Donald Trump to the White House.

Mr Scholz has already tapped Joerg Kukies, a member of his SPD and a close ally, to be his new finance minister, government sources told AFP.