BERLIN — In a surprising late-night decision, German Chancellor Olaf Scholz dismissed Finance Minister Christian Lindner, who belongs to the pro-business Free Democrats, following extensive crisis discussions. This action prompted the resignation of the three remaining Free Democrat ministers, resulting in the collapse of the existing government coalition.
Lindner is set to receive his official dismissal certificate from President Frank-Walter Steinmeier on Thursday afternoon, with the expectation that a new finance minister will be named immediately afterward. The roles of the resigned ministers for research, transportation, and justice are also anticipated to be filled on the same day, according to reports from German media outlets.
During his announcement late Wednesday, Scholz indicated that he would request a vote of confidence scheduled for January 15. He mentioned that this could potentially lead to early elections as soon as March 2024, despite the fact that elections were originally slated for September.
Scholz criticized Lindner for breaching their trust and for openly advocating a fundamentally different economic approach, which he argued would involve significant tax reductions for high earners while imposing pension cuts for retirees. “That is not decent,” Scholz remarked, highlighting the fundamental disagreements within the coalition.
Following this dramatic turn of events, the chancellor’s left-wing Social Democrats will effectively run a minority government alongside their remaining coalition partner, the environmentalist Greens. Scholz indicated that he would also reach out to Friedrich Merz, the leader of the prominent opposition party, the center-right Christian Democrats, to discuss strategies for bolstering the economy and defense, as well as ensuring the passage of vital legislation.
The dissolution of the coalition has arisen after prolonged tensions among its members over methods to rejuvenate Germany’s struggling economy. The Free Democrats had consistently opposed any tax hikes and refused to modify the country’s stringent self-imposed limits on national debt. In contrast, Scholz’s Social Democrats and the Greens were advocating for substantial public investment and rejected the Free Democrats’ plans to diminish welfare services.
However, the task of advancing new legislation and addressing the considerable budget shortfall expected in 2025 will likely pose challenges for Scholz’s Social Democrats and the Greens, as they now lack a parliamentary majority.
Markus Söder, the governor of Bavaria and a key figure in the center-right opposition, has called for earlier elections than March. On X, he stated, “No more time can be lost now,” urging the need for a swift electoral process. “There must be no tactical delays,” he asserted, emphasizing the urgency for a new government.
