Germany's ruling coalition collapsed after Chancellor Olaf Scholz fired Finance Minister Christian Lindner and opened the way to early elections, sparking a political crisis in Europe's biggest economy hours after Donald Trump won the US presidential election, BTA reported, citing "Reuters".
Following the dismissal of the leader of the Free Democratic Party (FDP) as minister, Scholz is expected to head a minority cabinet of his German Social Democratic Party and the Greens – the second largest party in Germany.
WHAT NEXT FROM HERE?
Scholz said he would ask for a vote of confidence in his government on January 15 – the necessary preliminary action before the production of elections at the end of March.
Under rules designed to avoid coalition crises like the ones that precipitated the end of interwar democracy in Germany (the Weimar Republic - ed.), the chancellor largely controls the course of events: the opposition can remove him from office before the end of his term, if he gathers a majority for a specific alternative chancellor, but this will not be easy in the current parliamentary arithmetic.
HOW WILL OLAF SCHOLZ GOVERN UNTIL THE ELECTIONS?
The Greens, the second largest party in the three-party coalition, will remain in government. Without a parliamentary majority behind them, the rulers will have to ally situationally for support for individual votes and on individual issues with other parties (so-called floating majorities).
Scholz said he would ask Friedrich Merz, leader of the opposition conservatives, to back urgently needed budget measures, saying Germany's ailing economy could not wait until after the election.
The chancellor must announce a replacement for Lindner for the key position he holds. The same applies to the other three ministerial seats held by SDP representatives - justice, transport and education - who are also leaving with their leader.
Among the possibilities for a new state treasurer are Scholz's adviser and chief of staff Wolfgang Schmidt or Robert Habeck, who could combine the post with his current government posts of economy minister and vice chancellor. Scholz, who himself was finance minister, can also combine the post with that of chancellor.
WHAT CAN THE OPPOSITION DO?
Mertz, who has long called for early elections to oust a government he says has lost its capacity to act, will face a dilemma: a possible refusal on his part to help Scholz secure and pass a budget of the state could harm causes the conservative opposition leader strongly supports, such as aid to Ukraine.
On the other hand, Merz, who leads the polls convincingly, may be reluctant to make political bows to Scholz right before an election that could be seen as a victory for the chancellor.
The Conservative leader intends to make a public statement at 08:45 local time today.