On Wednesday, the coalition of the SPD, Green Party and FDP effectively ended, after… Scholz decided to dismiss Finance Minister Christian LindnerFDP leader, in connection with inter-coalition disputes over how to overcome a multi-billion budget gap and how to revive the German economy, which may shrink for the second year in a row.
Why did Olaf Scholz dismiss the Minister of Finance and lead to the collapse of the coalition?
Lindner allegedly told Scholz on Wednesday evening that he saw no possibility of continuing the coalition. The liberal leader of the FDP called on the chancellor to call early general elections.
Scholz, the SDP leader, announced that he was sacking the leader of the coalition party because he opposed his plan to suspend a security mechanism that does not allow exceeding a certain level of debt. So, by increasing its debt, Germany can better support Ukraine and at the same time stimulate its economy.
Lindner's resignation means the FDP leaves the government. The SPD and the Green Party do not have a majority in the Bundestag. Scholz announced that he wanted to hold a vote of no confidence in his government in January. In the event of a possible defeat, early general elections would be held at the end of March. The Bundestag's term ends in September next year.