Following the dramatic late-night firing of Finance Minister Christian Lindner by German Chancellor Olaf Scholz, the government coalition faced a crisis as three remaining ministers of the Free Democrats also resigned. However, Transport Minister Volker Wissing reversed his resignation decision and opted to stay on as minister but leave the party.
Lindner is set to receive his certificate of dismissal from President Frank-Walter Steinmeier, with a successor likely to be named promptly. The vacant posts of the research and justice ministers may also be filled soon, according to reports.
Scholz announced plans for a vote of confidence on Jan. 15, potentially leading to an early election in March, earlier than the scheduled date in September. The chancellor accused Lindner of breaching trust by advocating for tax cuts for top earners while proposing pension cuts for all retirees.
With the collapse of the coalition, Scholz's Social Democrats will now lead a minority government alongside the Greens. Efforts to strengthen the economy and pass crucial legislation will involve discussions with the opposition leader Friedrich Merz from the Christian Democrats.
The coalition rift stemmed from disagreements over economic policies, with the Free Democrats opposing tax increases and debt limit changes, while the Social Democrats and Greens favored state investments over welfare cuts.
Despite the challenges ahead, Scholz's government faces hurdles in passing legislation and addressing budget deficits without a parliamentary majority. Calls for an early election have been made by opposition figures like Markus Söder from Bavaria, emphasizing the need for swift government formation.
