Summary

Germany’s ruling coalition collapsed after Chancellor Olaf Scholz fired Finance Minister Christian Lindner of the Free Democrats (FDP), leading to a loss of majority in parliament.

Scholz cited a lack of trust in Lindner, who opposed loosening Germany’s “debt brake” to address economic stagnation and rising defense costs. The crisis follows tensions over budget priorities amid economic challenges, partly due to the Ukraine war.

Scholz has called for a confidence vote on January 15, which could trigger early elections if he loses. For now, Scholz will lead a minority government with the Greens.