German government has collapsed

Chancellor Olaf Scholz has announced a vote of confidence, paving way for potential snap elections

Germany’s ‘traffic-light’ coalition has collapsed, 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 from the position of Finance Minister.

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-party coalition.

The Greens expressed regret over this development but stated 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.

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Germany’s Scholz fires coalition partner’s leader

“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,” said Vice Chancellor and Economy Minister Robert Habeck 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.

Earlier that day, Finance Minister Christian 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,” Lindner said.

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German government in ‘crisis’ – state media

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

Meanwhile, the right-wing Alternative for Germany (AfD) opposition party welcomed the coalition's collapse as a 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,” said AfD parliamentary leaders Alice Weidel and Tino Chrupalla 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 fall to March 2025.