Germany’s Leader Set To Govern With A Minority Government After Coalition Collapse

German Chancellor Olaf Scholz is set to govern with a minority government after the collapse of his coalition, following the dramatic firing of Finance Minister Christian Lindner of the pro-business Free Democrats.

The crisis unfolded late Wednesday after Scholz dismissed Lindner in a late-night decision, and the remaining three Free Democrat ministers resigned, signaling the coalition’s breakdown.

Lindner will officially receive his dismissal certificate from President Frank-Walter Steinmeier on Thursday afternoon, with a successor likely appointed soon after.

The resigned ministers of research, transport, and justice may also be replaced by Thursday, according to German news agency dpa. Scholz announced that he would seek a confidence vote on January 15, which could lead to an early election as soon as March, instead of the scheduled September vote.

Scholz accused Lindner of breaching trust and advocating for an economic policy that he said would cut taxes for top earners while slashing pensions for retirees.

“That is not decent,” Scholz said.

With the Free Democrats out of the coalition, Scholz’s Social Democrats will now lead a minority government in partnership with the environmentalist Greens. The chancellor also announced that he would consult with opposition leader Friedrich Merz from the center-right Christian Democrats to discuss ways to strengthen the economy and defense, as well as pass crucial legislation.

The coalition’s collapse followed weeks of disputes over how to address Germany’s struggling economy. The Free Democrats opposed tax hikes and changes to Germany’s strict debt limits, while the Social Democrats and Greens advocated for major state investments and rejected proposals to cut welfare programs.

However, Scholz’s government will now face significant challenges in passing new legislation and addressing a billion-euro gap in the 2025 budget, as they no longer hold a parliamentary majority.

Markus Söder, the governor of Bavaria and a prominent figure in Germany’s center-right opposition, called for an early election.

“No more time can be lost now,” Söder wrote on X, urging for a swift new government. “There must be no tactical delays.”

Faridah Abdulkadiri

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