The social-democratic German chancellor, weakened by two successive years of recession, thanked his liberal Finance Minister this Wednesday, November 6, against a backdrop of political disagreements.
“Too often he has betrayed my trust. […] There is not sufficient trust for continued cooperation. the German Chancellor decided this Wednesday evening, November 6, during a hastily announced press conference in Berlin. Olaf Scholz decided to dismiss his liberal Finance Minister, Christian Lindner, in the evening, his spokesperson announced a little earlier, opening the door to the end of the government coalition of Europe's largest economy, undermined by dissension.
He also announced that he would pose the question of confidence to MPs in early January, paving the way for the possibility of the end of his mandate and early legislative elections, which could then take place “by the end of March at the latest”, i.e. six months before the initially planned date.
The social democratic chancellor took this decision while Lindner, also president of the liberal party (FDP, right), proposed during a crisis meeting in the evening, according to several media, the calling of early legislative elections at the beginning of 2025 faced with blockages within the government on the economic policy to be pursued.
This break, recorded at the end of a day of talks organized at the chancellery, puts an end to the efforts of the last days of the German chancellor to save the tripartite government coalition made up of his social democratic party (SPD), environmentalists and liberals, at loggerheads for months and all very unpopular in public opinion.
Fragile coalition
The dismissal of the Minister of Finance should logically cause the departure of the FDP liberals from the government, and therefore the end of the current government coalition, which will no longer have a majority in the Chamber of Deputies. Olaf Scholz could, however, try to lead a minority government until the date initially planned for the next legislative elections, i.e. September 28, 2025.
While the chancellor thought that the election of Republican Donald Trump to the presidency of the United States, which could result in protectionist measures harmful to the German economy – in recession for two consecutive years – very oriented towards exports, would force his fragile coalition to close ranks, the opposite happened.
According to the German daily Bild, the Minister of Finance argued during the crisis meeting that this election and the expected impact made a change of economic direction in Germany, towards more liberalism, even more urgent. What the social democrats and environmentalists reject en bloc.
Updated at 9:34 p.m. with more context; added Olaf Scholz's statement.
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