Just hours after Donald Trump’s presidential election victory in the United States, Germany’s three-party governing coalition collapsed, sending the country into a political tailspin.
Chancellor Olaf Scholz fired Finance Minister Christian Lindner, the latest development in an escalating spat between the two men over Germany’s public spending. Lindner—who heads the neoliberal Free Democratic Party—wanted a pared-down 2025 budget as a recession looms. His stances angered Scholz’s Social Democrats and the Greens, who favored increased spending on social programs, defense, and climate goals.
Just hours after Donald Trump’s presidential election victory in the United States, Germany’s three-party governing coalition collapsed, sending the country into a political tailspin.
Chancellor Olaf Scholz fired Finance Minister Christian Lindner, the latest development in an escalating spat between the two men over Germany’s public spending. Lindner—who heads the neoliberal Free Democratic Party—wanted a pared-down 2025 budget as a recession looms. His stances angered Scholz’s Social Democrats and the Greens, who favored increased spending on social programs, defense, and climate goals.
Over the past week, Lindner had suggested that the coalition—known as the traffic light—may not be up to the task of governing Germany into the future. Its three member parties have publicly clashed on numerous policy priorities since taking office in 2021, including an infamous 2023 heating law. Although Scholz initially rejected Lindner’s proposals for snap elections, the presidential vote in the United States apparently pushed the chancellor to think again.
In a speech on Wednesday night, Scholz announced that he was dismissing Lindner, lambasting the ex-finance minister for prioritizing the “short-term survival of his party” over making “compromises in the interest of all citizens.” Scholz repeatedly mentioned the U.S. election, saying that the uncertainties provoked by Trump’s win—especially the president-elect’s stance on the Russia-Ukraine war—made clear to him that Germany must spend more to take responsibility for its own economic modernization and defense.
“We need a government that is ready to negotiate … to make the necessary decisions for our country,” Scholz said. “Especially today, one day after such an important event like the election in the United States, [Lindner’s] egoism is totally incomprehensible.”
Scholz is expected to face a no-confidence vote on Jan. 15, 2025, which he is likely to lose. Snap elections would follow in March.
This post is part of FP’s live coverage with global updates and analysis throughout the U.S. election. Follow along here.
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