Germany’s ruling coalition disintegrated on Wednesday as Chancellor Olaf Scholz dismissed Finance Minister Christian Lindner, setting the stage for snap elections. The political upheaval comes just hours after Donald Trump’s victory in the U.S. presidential election, adding to global instability.
Scholz is expected to lead a minority government with his Social Democrats and the Greens, relying on ad-hoc parliamentary alliances to pass legislation. He announced plans for a parliamentary confidence vote on January 15, which could lead to snap elections by the end of March.
The chancellor accused Lindner of obstructing budget policies and prioritizing party interests over national well-being. Lindner, in turn, criticized Scholz for attempting to bypass Germany’s debt brake to increase support for Ukraine and fund economic recovery measures.
This crisis hits Germany as it grapples with a stagnating economy, aging infrastructure, and military challenges. The fallout could embolden populist movements like Alternative for Germany (AfD) and complicate EU efforts to address economic and geopolitical challenges.
Scholz appealed to opposition leader Friedrich Merz for support on budget and defense initiatives, with Merz set to respond in a Thursday news conference. Meanwhile, the Greens lamented the coalition’s collapse, emphasizing the need for unity amid Europe’s pressing issues.
