German Chancellor Olaf Scholz has decided to dismiss Finance Minister Christian Lindner, who heads the Free Democratic Party, a member of the government coalition. The loss of the Free Democrats’ support leaves the coalition without a majority in the Bundestag. On 15 January 2025, Scholz plans to raise the issue of government confidence in parliament. This was reported by Spiegel and DW.
Before the announcement of the resignation of the Minister of Finance, the leaders of the three coalition parties met: The Free Democratic Party, the Social Democratic Party of Scholz and the Greens, led by Vice Chancellor Robert Habek. The meeting, held on 6 November, was aimed at finding a compromise with Lindner on economic and budgetary policies to resolve internal differences within the coalition.
Lindner, for his part, invited his partners to support the idea of early parliamentary elections in early 2025. If they agreed, he was ready to adopt a supplementary budget for 2024 and remain in the government as part of the transitional team until new elections were held. Scholz responded to Lindner’s proposal by resigning.
The SPD and the Greens had said the day before that it was possible to pass a budget for 2025 if there was adequate support. However, Lindner, speaking on behalf of the FDP, insisted on a different economic course, including tax cuts for the wealthy, reduced budget spending, and a slower transition to a green economy.
According to DW, on 15 January 2025, Chancellor Scholz will address the parliament with a confidence motion. In his address after the coalition meeting, he stressed that without the support of the Free Democrats, it would be difficult to gain the necessary trust, which could lead to the dissolution of the Bundestag. This means that early elections could be held as early as March 2025.
‘We need a government that works effectively,’ Scholz said, stressing the importance of maintaining stability in the country.
Scholz also spoke harshly of Lindner, saying that he had acted more for the benefit of his own party than for the common good.
The conflict between the coalition members escalated amid discussions on the 2025 budget. Lindner demanded spending cuts, reduced bureaucracy for business and support for wealthy citizens, while the Social Democrats and Greens advocated active public investment to support the country’s economy.
