German Chancellor Olaf Schulz and Finance Minister Christian Lindner meet at the Bundestag in Berlin, Germany, on June 26, 2024.
Michelle Tantusi | Getty Images News | Getty Images
German Chancellor Olaf Scholz announced on Wednesday that he had fired Finance Minister Christian Lindner, potentially ending Germany’s ruling coalition after months of political wrangling.
The three-year-old coalition between Scholz’s Social Democrats (SPD), the Greens and Lindner’s Free Democrats (FDP) has been unstable for some time, with differing budget and economic policy positions leading to tensions and conflicts. It is unclear whether Lindner’s departure will cause the FDP to withdraw from the coalition government.
Scholz launched into a tirade against Lindner during a news conference Wednesday night, saying he was not concerned with serving the public interest and that he was fired to prevent harm to the country. Scholz said he would call for a no-confidence vote in parliament on January 15, raising the possibility of early elections in March.
“Anyone who joins the government must act responsibly and reliably, and they must not seek asylum when things get difficult,” Scholz told a news conference, according to Reuters. “They must be willing to fight for all. Compromising the interests of citizens… But that is precisely not what Christian Lindner is focusing on now, he is focused on his clients.”
The situation would have been reached a critical juncture in recent weeksSpeculation grew earlier this week that the alliance could break up.
It follows a series of moves by all three parties, including a paper by Lindner from the FDP outlining his vision to revive Germany’s economy – but most importantly, his fundamental stance against the SPD and Greens .
“The paper reads like a serious attempt to analyze Germany’s problems and propose solutions,” JPMorgan euro zone economist Greg Fozzi said in a research note. “However, it goes against the SPD and Greens’ Basic position, so it is difficult for them to accept.
All parties have also been struggling to agree on the 2025 budget, which still has a funding gap of billions of euros and is still under negotiation. The budget deadline is set for later this month.
This is a developing story, please check back for updates.
