Scholz fires Lindner

German traffic light coalition probably at an end

(Bild: Associated Press)

On Wednesday, FDP leader and Finance Minister Christian Lindner proposed to Chancellor Olaf Scholz (SPD) that new elections to the Bundestag be held at the beginning of 2025. Scholz reacted promptly.

The Chancellor dismissed Finance Minister and FDP leader Christian Lindner, government spokesman Steffen Hebestreit told the German press agency dpa. The German traffic light coalition has thus failed.

Scholz: New elections in spring
At 9.15 p.m., Scholz made a statement to the press in the Chancellery (picture above) and declared that he would call a vote of confidence in the German Bundestag. He wanted to do this in mid-January in order to clear the way for new elections in March, he explained.

Scholz declared on Wednesday evening that he would call a vote of confidence in the Bundestag in January to pave the way for new elections.(Bild: Associated Press)

Chancellor wants to offer Merz cooperation
Scholz wants to offer the head of the CDU/CSU parliamentary group, Friedrich Merz (CDU), the opportunity to work together quickly to find solutions to strengthen the economy and defense. He wants to offer Merz constructive cooperation on two or even more issues "that are crucial for our country. In the rapid strengthening of our economy and our defense," the Chancellor specified. The economy cannot wait until new elections have taken place, he added.

Lindner had previously proposed new elections at the meeting of the coalition leaders. The talks had shown that there was insufficient common ground in economic and financial policy, participants quoted the FDP leader as saying. It was in Germany's interest to quickly regain the ability to act and stability. This was reported by "Bild" on Wednesday evening during the ongoing consultations between the party and parliamentary group leaders of the SPD, Greens and FDP in the Chancellery.

FDP leader Lindner (pictured) had proposed new elections at the meeting of the coalition leaders.(Bild: AFP/Tobias Schwarz)

Dispute over economic policy
The leaders of the SPD, Greens and FDP had previously spent two and a half hours discussing ways out of the "traffic light" crisis. The main issue was how to plug the billion-euro hole in the 2025 budget and get the badly battered German economy back on track.

Lindner had already proclaimed the "autumn of decisions" for the coalition some time ago. He was referring primarily to next year's budget, which was to be passed by the Bundestag at the end of November. He was also concerned with a strategy for leading Germany out of the economic crisis.

Lindner's ideas escalated the dispute
To this end, he made proposals that escalated the dispute within the coalition. In his concept for an economic turnaround, Lindner calls for the permanent abolition of the solidarity surcharge for high earners and a change of course in climate policy, among other things.

There was considerable resistance to such ideas from the SPD and the Greens. However, Economics Minister Robert Habeck (Greens) also took a step towards Lindner. On Monday, he declared his willingness to use the billions in subsidies freed up following the postponement of the construction of an Intel plant in Magdeburg to plug budget holes.

AfD: "Liberation for Germany"
The right-wing populist AfD has welcomed the break-up of the traffic light coalition as overdue and a "liberation" for Germany. The alliance between the SPD, Greens and FDP had led the country to the economic abyss by leaps and bounds, explained parliamentary group leaders Alice Weidel and Tino Chrupalla on Wednesday evening.