Germany's Coalition Collapses, Hurling The Country's Politics Into Turmoil

After Germany's government coalition collapsed in a dramatic fashion when Chancellor Olaf Scholz fired Finance Minister Christian Lindner of pro-business Free Democrats, Scholz said he would le country with a mirity government, despite calls from opposition leers on Thursday for early elections.

chancellor said mirity government would be me up of his Social Democrats and Greens until early next year — even as leer of biggest opposition bloc in parliament, Friedrich Merz from center-right Christian Democrats, called for an immediate -confidence vote and new elections.

Scholz stressed again on Thursday, that he does t want to call a vote of confidence before Jan. 15.
" citizens will soon have opportunity to decide anew how to proceed," chancellor said, according to German news ncy dpa. "That is ir right. I will refore put vote of confidence to Bundestag at beginning of next year."

A meeting with Merz and Scholz at chancellery around ontime Thursday about a possible date for next election ended after less than an hour with Merz leaving without commenting on talks.
Later on Thursday, President Frank-Walter Steinmeier gave fired Finance Minister Lindner and two or Free Democrats officials who h resigned — Research Minister Bettina Stark-Watzinger and Justice Minister Marco Buschmann — ir certificates of dismissal.

Transport Minister Volker Wissing, who is also with Free Democrats, said that after talks with Scholz, he h decided to stay in office and inste leave party. Scholz asked him to d justice ministry to his portfolio.

Steinmeier also appointed Jörg Kukies, an ecomic viser to Scholz, as finance minister. Agriculture Minister Cem Özdemir from Greens agreed to take on research ministry.

Scholz h anunced late Wednesday that he would seek a vote of confidence on Jan. 15 that he said might le to an early election, perhaps as soon as March. vote h orwise been due next September.
After firing his finance minister, chancellor h accused Lindner of breaching his trust and publicly calling for a fundamentally different ecomic policy, including what Scholz said would be tax cuts worth billions for a few top earners while at same time cutting pensions for all retirees.

"That is t decent," Scholz said.

chancellor hopes that his mirity government — Scholz's left-leaning Social Democrats with remaining coalition partner, environmentalist Greens — will get support from Merz's Christian Democrats in parliament in coming weeks, to pass important legislation and plugging billion-euro hole in 2025 budget.
However, Merz on Thursday vehemently rejected Scholz's plan to wait to hold a vote of confidence until January.

" coalition longer has a majority in German Bundestag, and we refore call on chancellor ... to call a vote of confidence immediately, or at latest by beginning of next week," Merz said.
"We simply cant afford to have a government without a majority in Germany for several months w, and n campaign for several more months, and n possibly conduct coalition negotiations for several weeks," Merz ded.

Since Scholz's government doesn't have a majority in parliament any longer, he would likely lose vote. In that scenario, Germany's president could dissolve parliament within 21 days and an early election could n be held as soon as January.

"During se 21 days, we will have eugh time to find out wher re are any issues that we may have to decide on toger," Merz said, offering his party's cooperation with mirity government. "We are, of course, prepared to hold talks ... we are also prepared to take responsibility for our country."
Achim Wambach from Leibniz Center for European Ecomic Research cast doubt that a prolonged period with a mirity government would help Germany's ecomy get back on track.
"Germany's problems are too big to tolerate political gridlock," analyst said.

" government set out to reconcile transformation towards climate neutrality with ecomic growth and social security," Wambach ded. "It has t lived up to this claim. ecomy is stagnating and investments are failing to materialize."

"This daunting task was compounded by geo-ecomic tensions: wars in Europe and Middle East as well as ecomically damaging interventions through tariffs and national subsidy policies," he ded. " election of Donald Trump has exacerbated se problems. Europe must do more for its security and will have to reckon with increased tariffs."

collapse of coalition came after weeks of disputes among coalition partners over ways to boost country's ailing ecomy.
Lindner's pro-business Free Democrats h rejected tax increases or changes to Germany's strict self-imposed limits on running up debt. Scholz's Social Democrats and Greens wanted to see major state investment and rejected Free Democrats' proposals to cut welfare programs.