Germany plunges into political crisis after Scholz coalition collapses

While the world’s eyes are on Washington, Germany is quietly descending into political meltdown.

This is a very German crisis, with coalition infighting and complex constitutional issues.

But with economic growth stalling and EU leaders nervous about Trump’s impending inauguration, Europe’s most powerful economy remains rudderless behind a complex political divide. There is.

Prime Minister Olaf Scholz on Wednesday night fired Finance Minister Christian Lindner, leader of one of the three coalition parties. Two of Mr. Lindner’s three cabinet colleagues immediately resigned, effectively causing the coalition government to collapse.

Scholz is currently leading a minority government pending re-election, allowing business as usual to continue.

But the prime minister no longer has a majority in parliament and needs opposition support to push through new measures, including key legislation including the 2025 budget, which is expected to be agreed next week.

New measures to aid Ukraine and increase defense spending will also be difficult to agree on without opposition support.

The Social Democratic Party’s chancellor has called on Friedrich Merz, the leader of the conservative opposition, to help advance key policies, including greater support for Ukraine, many of which conservatives agree with.

The two sides met on Thursday, with Scholz appealing for “constructive cooperation on issues of vital importance to our country.”

Donald Trump’s victory is likely to mean a reduction in funding to Ukraine, and since Germany is second only to the United States in financial aid to Kiev, the onus will be placed on Berlin to increase aid. There is a possibility that

Green Party Foreign Minister Annalena Verbock, who has just returned from a trip to Ukraine, said the collapse of the coalition government was “not a good day for Germany or for Europe.”

Scholz wants to hold a vote of parliamentary confidence on January 15 and hold an election in March, six months before the scheduled date.

However, Merz, who is the leader of the Christian Democratic Party and wants to become Germany’s next chancellor, does not seem to have any intention of doing so.

He said decisions needed to be taken within the EU and a functioning German government, calling for an immediate vote of confidence and a snap election in January.

“We cannot afford to have a government without a majority for several months, followed by several more months of campaigning and perhaps even more months of coalition negotiations,” he said.

Other opposition parties are also calling for snap elections.

Whenever this happens, it is clear that campaign season has already begun.

Germany’s president called for thorough “reason and responsibility,” a move that took months for the coalition government to collapse. And it was all about money.

This uncomfortable tripartite coalition was torn apart by two very different visions of how to stimulate Germany’s struggling economy.

The centre-left Social Democrats and Green Party, led by Olaf Scholz, want to use debt to modernize infrastructure, transition to green energy and support industry and Ukraine.

But Christian Lindner’s free-market liberal FDP is ideologically opposed to new borrowing, calling instead for tax cuts, cuts to social spending and deferral of environmental targets.

Crisis negotiations this week descended into crisis after it became clear that the two sides could not reconcile.

After negotiations failed on Wednesday night, the prime minister launched a scathing attack on the finance minister, saying Mr Lindner was selfish and irresponsible for his unwillingness to compromise in the national interest.

“He has betrayed my trust too often,” the prime minister said, accusing Lindner of prioritizing short-term party survival over the country’s welfare.

It is unprecedented in German politics for a chancellor to make such harsh public comments about ministers and coalition partners. If this was an official statement aired on television, imagine what the atmosphere would be like behind closed doors.

Before the U.S. election, Scholz’s allies argued that now was not the time for early elections or political instability in Germany.

Over the past year, however, conflicts between the coalition government have periodically erupted over spending. And for voters, the fight has become excruciating, meaning poll numbers for all three parties are sluggish.

Some argue that allowing the dysfunctional government to stagger for another year would have led to more instability and gridlock.

There are also concerns that the inability of mainstream parties to govern could play into the hands of the far-right party AfD and the new populist far-left party BSW.

Although the conservative Christian Democrats and their allies have a strong lead in opinion polls, the AfD consistently comes in second place.

People in Berlin are beginning to focus on the prospect of a Trump presidency. Tariffs could have a negative impact on Germany’s economy, and reducing aid to Ukraine could undermine national security.

Many have now come to the conclusion that Germany needs a unified and effective government now more than ever.