Germany has plunged into political turmoil as Chancellor Olaf Scholz’s coalition government collapses, leaving Europe’s largest economy in a fragile state. Chancellor Scholz is leading a minority government after firing Finance Minister Christian Lindner, leader of the Free Democrats (FDP), over conflicting visions for Germany's economic future. Lindner’s dismissal led two other FDP ministers to resign, effectively breaking the coalition, which had been strained for months over economic policy.
Scholz’s Social Democrats (SPD) and the Greens favored using debt to fund infrastructure, green initiatives, and support for Ukraine, while Lindner’s FDP pushed for tax cuts, reduced social spending, and tighter fiscal discipline. The divide came to a head this week, prompting Scholz to accuse Lindner of prioritizing party survival over national stability. Without a parliamentary majority, Scholz now faces difficulties passing major policies, including the upcoming 2025 budget and defense measures, and he has called on the opposition conservatives to support essential policies.
As Germany heads toward early elections, the right-wing Alternative for Germany (AfD) party is gaining popularity, raising concerns about the potential for rising populism amid the political vacuum.
