Olaf Scholz dismisses Finance Minister Christian Lindner, coalition implodes

GERMANY – Political earthquake in Germany. Chancellor Olaf Scholz caused a shock by dismissing his Finance Minister this Wednesday, November 6, and asking MPs to decide on the holding of early elections to break the deadlock in which his coalition is.

This decision, the culmination of months of quarrels between the three government parties, plunges Europe's largest economy into an unprecedented crisis at a crucial moment for the Old Continent, already reeling from Donald Trump's victory in the United States on the same day. .

“We need a government capable of acting and that has the strength to make the necessary decisions for our country”pleaded the Social Democratic Chancellor during a solemn speech.

Scholz and Lindner settle their scores

Faced with “ultimatums” of his Finance Minister, head of the liberal camp, Olaf Scholz judged that he had no choice: he first decided to dismiss Christian Lindner, the government's big financier and president of the liberal FDP party, then announced that he would ask the deputies the question of confidence. All members of the FDP also announced in the evening that they were going to leave the government, sealing the end of the coalition.

The elected representatives of the Bundestag will decide on January 15 whether they want early legislative elections to be held before the date scheduled for September 2025. This could be the case “by the end of March at the latest”and indicated Olaf Scholz.

Olaf Scholz and Christian Lindner aired their grievances via microphone. Christian Lindner has “too often betrayed my trust”lamented Olaf Scholz, denouncing his behavior ” self-centered “. The champion of budgetary austerity immediately responded, accusing the chancellor of leading the country “in a phase of uncertainty” with this “calculated breakup of this coalition”.

The Greens, Social Democrats and Liberals too divided

The divorce was recorded after a day of crisis talks organized at the chancellery to try to save the executive led by Olaf Scholz since the end of 2021. Coalition ruptures are very rare in Germany and Olaf Scholz wanted to lead his to the next legislative elections scheduled for September 28, 2025.

But the government team has been undermined for months by political dissensions, on the economy and immigration, and by personal quarrels. Disagreements focus on solutions to revive Europe's largest economy, which is threatened with recession for the second year in a row.

Olaf Scholz's social democrats want to preserve their social priorities; Robert Habeck's Greens are pushing to fight climate change despite the costs of the transition while the liberals are stubbornly focused on respecting Germany's drastic constitutional limits on budget deficits and debt.

The Shadow of Trump

Olaf Scholz thought that the election to the presidency of the United States announced that very morning of the Republican Donald Trump, a fan of protectionism and diplomatic confrontations, would force his fragile coalition to close ranks. The opposite happened.

Green Vice-Chancellor and Economy Minister Robert Habeck urged everyone to come to their senses, stressing that with Trump's return to power, “the government must be fully capable of acting”.

Another major argument against the breakup of the coalition, and therefore early elections: the conservatives are well ahead in the polls and their leader, Friedrich Merz, is the favorite to become chancellor. As for the far-right AfD party, making strong progress in the last elections, it is lying in wait in second position.

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