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BERLIN -- After German Chancellor Olaf Scholz dramatically fired Finance Minister Christian Lindner of the pro-business Free Democrats in a late-night move after a marathon of crisis meetings, the three remaining ministers of the Free Democrats also resigned later at night effectively leading to the government coalition's collapse. However, in another unexpected turn of events, Transport Minister Volker Wissing from the Free Democrats took back last night's resignation and told reporters on Thursday morning in Berlin that after talking to Scholz, he had decided to stay on as minister and leave the party instead. Lindner will receive his certificate of dismissal from President Frank-Walter Steinmeier on Thursday afternoon and, to ensure a smooth transition, a successor will likely be named right after.
The posts of the research and justice ministers who resigned may also be filled Thursday, German news agency dpa reported. Scholz announced late Wednesday that he would seek a vote of confidence on Jan. 15 that he said might lead to an early election as soon as March — which otherwise would have been be due next September.
Scholz had accused Lindner of breaching his trust and publicly calling for a fundamentally different economic policy, including what the chancellor said would be tax cuts worth billions for a few top earners while at the same time cutting pensions for all retirees. “That is not decent,” Scholz said. Scholz's left-leaning Social Democrats will now effectively lead a minority government with the remaining coalition partner, the environmentalist Greens.
The chancellor announced late Wednesday that he would reach out to the leader of the biggest opposition leader in parliament, Friedrich Merz from the center-right Christian Democrats, to confer on possible ways of strengthening the economy and defense, and passing important legislation through parliament. The collapse of the coalition came after weeks of disputes among the coalition partners over ways to boost the country’s ailing economy. Lindner's pro-business Free Democrats had rejected tax increases or changes to Germany’s strict self-imposed limits on running up debt.
Scholz’s Social Democrats and the Greens wanted to see major state investment and rejected the Free Democrats’ proposals to cut welfare programs. However, pushing through new legislation and plugging the billion-euro hole in the 2025 budget won't become easier for Scholz’s Social Democrats and the Greens as their government no longer has a majority in parliament. The governor of the German state of Bavaria, Markus Söder, a leading figure in Germany’s center-right opposition, said that an early election should be held earlier than March.
"No more time can be lost now,” Söder wrote on X, calling for a new vote and government quickly. “There must be no tactical delays.”.
