BERLIN, November 7. /TASS/. Germany’s Vice Chancellor and Federal Minister for Economic Affairs and Climate Action, Robert Habeck (The Greens), announced that the country’s ruling three-party coalition has collapsed. German Chancellor Olaf Scholz of the Social Democratic Party (SPD) has called for a confidence vote in his government in mid-January, and a snap election may take place before late March. The Free Democratic Party (FDP) faction in the Bundestag said on Wednesday it had withdrawn all ministers from the government, effectively ending the "traffic-light" coalition.
TASS has compiled the key facts about the situation.
Finance chief resigns
- Scholz said he had asked the country’s president, Frank-Walter Steinmeier, to dismiss German Finance Minister Christian Lindner of the FDP.
- The chancellor argued that Germany’s finance chief "is not showing readiness" to put his proposals for an economic turnaround into practice
- Lindner accused Scholz of deliberately undermining the coalition, blaming the SPD and The Greens for rejecting his proposals to improve the economic situation in Germany as a basis for consultations. He insisted that Scholz was pushing the country toward uncertainty.
Confidence vote
- The German chancellor said he would call for a confidence vote on January 15, 2025, in the Bundestag, which could trigger a snap election before late March.
- Until that time, Vice Chancellor Habeck stated that the coalition would remain in office to fully perform its duties.
FDP withdrawal
- Christian Durr, leader of the FDP parliamentary group, argued that proposals put forward by the chancellor were not even remotely sufficient to help stabilize the German economy.
- Durr stressed that his faction would continue to pursue a constructive policy course during the remaining period.
- Apart from the finance minister, the justice minister, the research and education minister, and the transport minister all represented the FDP in the government.
Reasons behind the split
- The government was divided over budgetary, financial, and economic policy. Der Spiegel reported, citing sources, that coalition partners convened a meeting on Wednesday evening to attempt to resolve their differences.
- On November 1, Lindner presented a plan to steer the German economy out of the crisis. Many in the government, Reuters reported, viewed Lindner’s proposals as conflicting with a multi-billion-euro investment plan endorsed by Economic Affairs Minister Habeck of The Greens. While Habeck proposed setting up a fund to encourage investment and bypassing Germany’s strict rules on budget spending, Lindner advocated for lower taxes to spur the economy and the immediate end of the latest solidarity surcharge.