Germany’s ruling coalition is in crisis after Chancellor Olaf Scholz fired a key minister and said a confidence vote in his government would be held early next year.
Scholz said he had no confidence in Finance Minister Christian Lindner, whose rival party is in a coalition with Scholz’s Social Democrats and Greens.
The move means Scholz’s government no longer has a majority in parliament and a confidence vote could lead to snap elections in March.
The so-called “traffic light” coalition, led by the chancellor, has ruled Germany since 2021.
Scholz said he has no confidence in any future collaboration with Lindner. He harshly criticized the former finance minister, saying he had “betrayed my confidence” and accusing him of putting the interests of his party base ahead of the national interest.
He added that Germany needs to show that it can be relied upon by other countries, especially after the election of Donald Trump.
Earlier in the day, Lindner reportedly told other government parties that they were too far apart on economic policy and suggested new elections.
The German chancellor’s centre-left Social Democrats formed a coalition in 2021 with the environmentalist Greens and the economically liberal FDP.
The Traffic Light Alliance came to power after 16 years of rule by the conservative CDU’s Angela Merkel.
Hours after Trump’s election, a crisis within the alliance has thrown governments in Europe’s largest economy into disarray, raising deep uncertainty about the continent’s future economic and security.
Green Party Economy Minister Robert Harbeck said the party’s ministers would remain in office.
Scholz announced that the Bundestag, the German parliament, will hold a confidence vote on January 15, and members can choose whether to hold new elections.
Snap elections will be held by the end of March at the latest, instead of September as planned. Given the debate so far, a majority of MPs are likely to vote for snap elections.
The CDU currently leads the polls. Scholz’s Social Democrats and the far-right Alternative for Germany tied for second place.