Bild daily previously reported that Lindner had recommended early elections as a solution to the budget impasse, a proposal rejected by Scholz. It is unclear whether Lindner's dismissal will also lead to the withdrawal of the Free Democratic Party (FDP) from the coalition.
Without the FDP, Scholz could continue to lead a minority government, either with his Social Democrats or with the Green Party, the second largest party, which relies on an ad hoc majority in parliament.
(source: AFP)