German coalition collapses as Scholz fires finance minister Lindner – POLITICO

Crisis negotiations in the coalition of Scholz’s Social Democratic Party, the Greens and Lindner’s Free Democratic Party had come to an end after the FDP issued a paper demanding liberal economic reforms that were difficult for the other two parties to accept.

During a dramatic meeting between the leaders of the three parties on Wednesday evening in the chancellery, Lindner told Scholz that he saw no possibility of continuing the coalition and urged him to pave the way for snap elections.

This resulted in Scholz announcing he would fire him, two people with knowledge of the discussions told POLITICO.

Although Scholz could potentially seek to continue governing in a minority government, he has no majority to pass a budget, increasing the likelihood of a vote of no confidence and snap elections – potentially in early March.

The FDP is the smallest party in the coalition and now polls at just four percent – below the threshold needed to enter the German parliament in the next federal election, scheduled for September – meaning its leaders have considered a coalition break to save their political future.

Lindner’s policy paper, leaked to the media last week, called for tax cuts and a cut to climate policy to stimulate economic growth – both positions that put the party at odds with his coalition partners.