Germany is facing a political crisis
Claudio Testa, Unsplash
On 6 November 2024, the German government collapsed after Chancellor Olaf Scholz fired Finance Minister Christian Lindner of the Free Democratic Party. Immediately afterwards, party representatives announced their withdrawal from the government. Scholz, however, plans to hold a vote of confidence on 15 January, which could lead to early elections in March.
The main reason for the split was budgetary disagreements. Scholz proposed limiting energy spending to support business and increasing aid to Ukraine to 15bn euros, temporarily suspending the "debt brake". However, Lindner, who insists on strict adherence to budget constraints, refused to support increased spending, proposing instead to cut taxes and reduce public spending.
Scholz criticised Lindner's position, noting that he put his party's interests above the state's. In turn, Lindner accused Scholz of failing to propose an economic model that could support the country on a long-term basis.
The collapse of the coalition came amid Donald Trump's victory in the U.S. election, heightening tensions in Europe over support for Ukraine and NATO security. Domestic political instability in Germany, the EU's largest economy, has undermined efforts to strengthen the bloc, especially amid similar difficulties in France.
