German
government on brink of collapse after Olaf Scholz sacks finance minister
Unexpected
move throws Europe’s largest economy into political disarray and is likely to
lead to snap elections in March
Kate
Connolly in Berlin
Wed 6 Nov
2024 23.53 CET
The German
government was left on the brink of collapse after the chancellor, Olaf Scholz,
unexpectedly sacked his finance minister, plunging Europe’s largest economy
into political disarray.
Christian
Lindner was thrown out of the three-way coalition during a meeting of
high-level government members on Wednesday evening, after months of bitter
infighting that has contributed to the administration’s growing unpopularity.
Government
insiders had suggested Donald Trump’s electoral victory would focus minds in
Berlin and force leaders of the Social Democrats, Greens and the FDP to
recognise the need for unity. But the discord and rancour in Berlin appeared to
show no signs of subsiding.
Hours after
Lindner’s sacking, the FDP withdrew the rest of its ministers from the cabinet,
spelling the end of the beleaguered and unpopular three-way coalition.
In a
televised address to the nation, Scholz said that he will seek a vote of
confidence in January that would pave the way for early elections by March.
Scholz said
he had offered Lindner a plan to bring down energy costs, boost investment and
maintain support for Ukraine.
But Lindner
had shown “no willingness” to accept it, Scholz said.
“The
situation is serious,” Scholz added. “There is war in Europe, tensions are
increasing in the Middle East. At the same time, our economy is stagnating.”
He said: “We
need to invest considerably more in our defence and in the Bundeswehr,
especially now, after the outcome of the US elections.”
Scholz made
little effort to hide his frustration, accusing Lindner of egotism, refusing to
compromise and using “small-minded, party political tactics” at a time of
growing insecurity.
The
chancellor apologised to the German people, saying he “would have liked to have
spared you this difficult decision, especially in times like these when
uncertainty is growing”, a direct reference to the US presidential election.
Lindner, 45,
is the head of the pro-business FDP, which on Friday delivered a controversial
18-page ultimatum calling on the government to radically redraw its budget
plans for next year.
He had
repeatedly warned of “an autumn of decisions” as difficult budget talks have
loomed.
His sacking
is likely to lead to snap elections in March, six months ahead of schedule.
Scholz announced his intention to hold a vote of confidence in the Bundestag in
mid-January, and suggested that – depending on the outcome of that –elections
could be held in March.
After
Scholz’s announcement, a clearly fuming Lindner accused the chancellor of
having “long failed to recognise that our country needs a new economic
awakening” and of “trivialising the economic concerns of citizens”.
His party
currently stands at about 4% in the polls – below the threshold needed to gain
a place in parliament – but he made little secret of his plans to campaign for
a place in a new government. “We remain ready to take responsibility for this
country and we will fight to do the same in another government next year,” he
said.
The FDP is
traditionally the government partner of the conservative CDU/CSU alliance,
which is riding high in the polls compared with the coalition parties.
The
economics minister, Robert Habeck of the Greens, tried to put a positive spin
on the removal of Lindner, urging people who had been “afraid and worried” by
the outcome of the US election to view it as “the beginning of a new impulse”.
A leading
economist, Clemens Fuest of the Ifo Institut, cautiously welcomed the news,
saying at a time when Germany was “in an economically difficult situation” it
“without question needs a new government that is capable of acting as soon as
possible”.
The fallout
is expected to plunge Germany into a prolonged period of uncertainty at a time
when European leaders have been trying to pull together in the face of
challenges including a possible trade war with the US.
As the
second biggest backer of Ukraine after the US, Germany also faces concerns that
it will be left to take on a far bigger share of the war effort if Trump
carries out his threat to reduce support for Kyiv.
In a poll by
Forsa published on Wednesday 82% of Germans said they had no faith that the
government would fix Germany’s economic crisis before the federal election,
which had been scheduled for next September.
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