The German government is on the brink of collapse after the chancellor, Olaf Scholz, unexpectedly sacked his finance minister, throwing Europe’s largest economy into political disarray.
Christian Linder 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 victory in the US elections 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.
Lindner, 45, is the head of the pro-business FDP, who 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.
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His sacking is likely to lead to snap elections in March, six months ahead of schedule.
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 ahead of upcoming 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 by Washington to take on a far bigger share of the war effort if Trump carries out his threat to reduce support for Kyiv.
More details soon …