The end of Germany's ruling coalition came suddenly and loudly. Chancellor Olaf Scholz appeared before the media last night and spoke with a fervor and passion that he usually lacks. He said that he had lost confidence in his previous coalition partner Christian Lindner, as the finance minister had opposed all proposals for a way out of the crisis, which, according to Scholz, were for the good of the country, ARD points out.
First cracks on the debt brake issue
However, in the three years since the current ruling coalition, also called the “traffic light”, has existed, Scholz has often stood closer to Lindner and the liberals than to the Greens and his own fellow Social Democrats - especially on economic issues. For example, the chancellor, in full sync with Lindner, rejected the request to introduce a lower price of electricity for industrial enterprises, on the grounds that such a measure would mean a violation of market principles. It should also be recalled that during the first two years of the three-party coalition government, Scholz did not make any negative comments about the man who succeeded him as finance minister - at least not publicly, the German public media clarifies.
That changed in the summer of 2024, when it came to the question of how to fill the billion hole in the budget. On this subject, Scholz and Lindner entered into a public clash. One of the specific issues that caused major contradictions in recent days was the increase in German aid to Ukraine.
"That was a provocation"
The document submitted by the finance minister demanding a turnaround in Germany's economy became a concrete reason for the dissolution of the coalition – something that the coalition partners, the Social Democrats and the Greens, saw as a declaration of war. Lindner asked for a postponement of the implementation of the climate goals and a limitation of social spending – something that, according to the Minister of Economy, Robert Habek, was a real provocation.
„Lindner's demands actually violate – rudely at that – the growth initiative agreed in July by the coalition. The actions of the finance minister are very reminiscent of those of Otto Graf Lambsdorff, who in 1982 similarly presented a document with demands and measures that ultimately led to the collapse of the social-liberal coalition led by Chancellor Helmut Schmidt, ARD recalls.
Lindner counterattacked
Late in the evening, Lindner announced that he did not want to be blamed for the collapse of the coalition. In turn, he blamed Chancellor Scholz, who had asked him to stop the so-called debt brake on budget spending. Lindner announced that he did not want to do such a thing because it would mean breaking his oath as finance minister.
According to Lindner, Olaf Scholz never understood that the country needed an economic awakening. The chancellor also downplayed the economic problems of the citizens. The accusations of the former finance minister showed how much tension has built up in the coalition in recent weeks and months, commented ARD.
New elections, but when?
It seems that the previous partners are already thinking about new elections. Chancellor Scholz plans to ask for a vote of confidence in mid-January. If he does not get it from the parliament, it will lead to early elections for the Bundestag at the end of March 2025. Until then, he wants to govern with the Greens in a minority government, seeking support on specific issues and important legislative projects from the opposition CDU and CSU.
However, these bills may not come out, because the leader of the Christian Democratic Union (CDU) Friedrich Merz meanwhile asked that the vote of confidence not be postponed until January, but if possible be voted immediately, or at the latest next a week. The leader of the “Union Sarah Wagenknecht” also insists on the same, and the head of the Christian Social Union (CSU) Markus Söder insists on new elections as early as January.
In the meantime, the Minister of Justice Marko Buschmann and the Minister of Education Bettina Stark-Wattzinger resigned – both from the Liberal Party, and Transport Minister Volker Vissing decided to leave it and remain in his post. If the Bundestag is dissolved, new elections must be held within 60 days. 2005 was the last time the then Federal Chancellor Gerhard Schröder underwent a confidence vote and thus triggered new elections.