A political rift has occurred in Germany. Chancellor Olaf Scholz has decided to dismiss Finance Minister Christian Lindner – the leader of the Free Democratic Party, which is part of the government coalition.
Last week's unveiled economic reform plan by Lindner sparked outrage from the Greens.
In the 18-page document that was leaked to the media, the finance minister proposes tax cuts for businesses and a reduction in social support, including housing subsidies for low-income individuals. He also calls for a review of climate goals and an extension of the operational period for coal-fired power plants. In response, representatives of the Greens stated that Lindner's actions are tantamount to a "divorce" from the coalition.
Habeck also presented a separate plan aimed at stimulating the economy and supporting environmental initiatives, including the creation of an investment fund financed by public debt. The economic programs proposed by Lindner and Habeck turned out to be fundamentally opposed.
The decision to dismiss the finance minister followed a meeting of the leaders of the three parties in Germany's coalition – the Free Democrats, Scholz's Social Democratic Party, and the Greens led by Vice Chancellor Robert Habeck.
The parties convened for a crisis meeting to resolve several significant contradictions – primarily regarding the budget for 2025.
Scholz will put a question of confidence in himself to a vote in the Bundestag, scheduled for January 15. The Chancellor of Germany announced this in his address following the coalition committee meeting. Without the votes of the liberals, whose leader Scholz dismissed earlier that same day from the finance minister position, he will not be able to secure such confidence. This indicates an imminent dissolution of the Bundestag. Early elections in Germany could take place as soon as March next year.
Source: dw.