Germany's government on the brink of collapse after sacking of key minister

by · LBC
Germany's government on the brink of collapse after sacking of key minister.Picture: alamy

By Danielle de Wolfe

@dannidewolfe

Germany'c coalition government is on the brink of collapse following the sacking of a key minister - a move that has the potential to trigger political chaos.

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Chancellor Olaf Scholz sacked finance minister Christian Lindner on Wednesday after he claimed the coalition minister had 'broken his trust'.

The decision to throw the leader out of the three-way coalition followed months of bitter in-fighting between the pair, increasing the prospect of new snap elections.

Hours after Lindner’s sacking, the FDP withdrew the remainder of its ministers from the German cabinet.

Scholz, who leads Germany's Social Democratic Party (SDP), could now be forced to lead a minority government after he accused Lindner of "egotism".

Scholz said he had offered Lindner a plan to bring down energy costs and continue support for Ukraine, however, Lindner reportedly showed “no willingness” to accept.

Politique Palais de l'Elysée (Paris VIIIe), le 26 février 2024 Emmanuel Macron, le Président de la République réunit ce lundi 26 février, au Palais de l'Élysée, plus d'une vingtaine de chefs d'État et de gouvernement ou leurs représentants ministériels.Picture: Alamy

The partnership had seen the SDP join forces with Lindner, 45, of the pro-business Free Democrats Party (FDP) to form a government following

The move is likely to have ripple effects across Germany's financial markets and beyond, given Germany remains Europe's largest economy.

The dispute is said to have come about following discussions over ways to boost the country's ailing economy.

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In a televised address to the nation, Scholz said on Wednesday that he will trigger a vote of confidence in January.

It has the potential to trigger elections that could take place as early as March.

“The situation is serious,” Scholz added.

Lindner's dismissal by the Federal Chancellor Olaf Scholz, in Berlin, Wednesday, Nov. 6, 2024. (Christoph Soeder/dpa via AP).Picture: Alamy

“There is war in Europe, tensions are increasing in the Middle East. At the same time, our economy is stagnating.”

He added: “We need to invest considerably more in our defence and in the Bundeswehr, especially now, after the outcome of the US elections.”

The news is set against the backdrop of another four year Trump term, as the businessman claimed victory in the 2024 US election.