Europa Posted on 2024-11-07 10:33:00

The ruling coalition in Germany falls - Chancellor Scholz dismisses the finance minister, paves the way for elections

From Kristi Ceta

 

Germany's ruling coalition has collapsed after Chancellor Olaf Scholz fired the finance minister and opened the way for a snap election, sparking political chaos in Europe's biggest economy hours after Donald Trump won the US presidential election.

After the dismissal of finance minister Christian Lindner of the Free Democrats (FDP), Scholz is expected to lead a minority government with his Social Democrats and the Green Party.

He will have to rely on a united parliamentary majority to pass the legislation and plans to hold a parliamentary vote of confidence on his government on January 15. The collapse of Scholz's tripartite alliance caps months of disagreement over budget policy and Germany's economic direction, with the government's popularity sinking and far-right and far-left forces on the rise.

"We need a government that is able to act, that has the strength to make the necessary decisions for our country," Scholz told reporters.

He said he fired Minister Lindner for his obstructionist behavior in budget disputes, accusing him of putting party before country and blocking legislation on spurious grounds.

The move comes a day after the election of Republican Donald Trump as US president, with Europe scrambling to form a united response to issues including possible new US tariffs, Russia's war in Ukraine and the future of the NATO alliance.

Germany is facing a second year of economic contraction and a crisis in its economic model after the end of a gas deal with Russia in 2022 and increased competition from China.

 

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