German governing coalition nears collapse after minister dismissed

German Chancellor Olaf Scholz fired his finance minister Wednesday because of a budget dispute, collapsing a fragile three-party governing coalition and prompting opposition calls for snap elections.

Scholz fired finance minister and Free Democrats Party (FDP) leader Christian Lindner following a lengthy and reportedly contentious meeting to address a shortfall in the nation’s budget. Lindner and his party had rejected tax increases and pushed for cuts in social programs, an idea rejected by the other two coalition members.

The FDP is part of a governing coalition with Scholz’s Social Democrats Party (SPD) and the Green Party, put together following the 2021 elections. The action leaves Scholz leading a minority government with the Greens. He called for a confidence vote in the parliament in January, which would lead to new elections if he lost.

But Thursday, the leader of Germany’s conservative opposition Christian Democratic Union (CDU) party, Friedrich Merz, said the legislature should vote as soon as next week.

“There is absolutely no reason to wait until January of next year to ask for a vote of confidence,” Merz said. “It is important that we now very quickly return responsibility for the formation of the German Bundestag to the voters in Germany.”

At his own news conference Thursday, now-former finance minister and FDP leader Lindner agreed, saying an immediate confidence vote is the right thing for the country.

Both Scholz and opposition leader Merz are expected to meet with German President Frank-Walter Steinmeier, who urged “reason and responsibility” from all sides. The German president is largely a figurehead who oversees the formation of the government and the approval and dismissal of government ministers.

Germany’s government turmoil is likely to compound growing frustration with its mainstream parties and provide an opening for burgeoning populist movements, including the far-right, anti-immigrant Alternative for Germany, or AfD.

With France also facing political uncertainty after snap elections this year, turmoil in the European Union’s two largest economies could hamper efforts by European leaders gathering Thursday in Budapest to form a unified response to Donald Trump’s resounding victory in U.S. elections.

Some 50 European leaders are meeting for the European Political Community Summit, where Trump’s presidency raises the possibility of new U.S. tariffs, a turn in Russia’s war in Ukraine and a weakening of the NATO alliance.

The summit is hosted by Hungary’s far-right nationalist prime minister, Viktor Orban, an ally of Russian President Vladimir Putin and a Trump supporter.

Some information for this report was provided by The Associated Press, Reuters and Agence France-Presse.
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