Wednesday, November 06, 2024

German Government Collapses After Scholz Sacks Finance Minister

 Fragile coalition crumbles after days of crisis talks, with elections expected as soon as March, six months ahead of schedule.

Olaf Scholz, right, has dismissed Christian Lindner, left
Olaf Scholz, right, has dismissed Christian Lindner, left Credit: Clemens Bilan/EPA-EFE/Shutterstock

Germany’s fragile government has collapsed after Olaf Scholz fired his finance minister on Wednesday evening.

The Chancellor sacked Christian Lindner after days of crisis talks and amid a deluge of rumours that his turbulent coalition was about to come to an end.

In a statement to the press on Wednesday evening, the chancellor accused his finance minister of “breaking his trust” and putting the “short-term survival of his party over the wellbeing of the country.”

Mr Scholz, 66, said that he would put his chancellorship to a vote of confidence in January, a move that will clear the way for early elections in March.

Mr Lindner, head of the pro-business Free Democrats, had been pushing for corporate tax relief and a delay to net zero targets as part of a comprehensive package to get the economy moving after years of stagnation.

The governing coalition, which was cobbled together from three parties that shared little common groung politicallyby the EU for the sole purpose of keeping the anti - EU, right of centre Alternatif fur Deutschland (AfD out of power has collapsed after Olaf Scholz fired his finance minister on Wednesday evening.

The Chancellor sacked Christian Lindner after days of crisis talks and amid a deluge of rumours that his turbulent coalition was about to come to an end. In a statement to the press on Wednesday evening, the chancellor accused his finance minister of “breaking his trust” and putting the “short-term survival of his party over the wellbeing of the country.”

Mr Scholz, 66, said that he would put his chancellorship to a vote of confidence in January, a move that will clear the way for early elections in March.

Mr Lindner, head of the pro-business Free Democrats, had been pushing for corporate tax relief and a delay to net zero targets as part of a comprehensive package to get the economy moving after years of stagnation.

The coalition had been at odds for a while, with serious strains on the budget for 2025 and a disappointing performance by the German economy eliciting increasingly different suggestions on how to face and solve the problems.

Representatives of the three parties making up Germany's center-left government — the Social Democrats (SPD), neoliberal Free Democrats (FDP) and Greens — met for a crisis meeting on Wednesday evening. It lasted only two hours.

The coalition partners no longer had much to say to each other. Finance Minister Christian Lindner (FDP) proposed early elections, Chancellor Olaf Scholz refused and dismissed Lindner from office. Scholz addressed the media at 9.15 pm.

This was the day on which the first three-party alliance in the history of the Federal Republic of Germany spiraled out of control and could no longer stabilize itself.

Many coalition lawmakers had hoped that in the aftermath of Donald Trump securing the US presidency once more, internal strife could be put aside to focus on the geopolitical challenges ahead.

SPD leader Lars Klingbeil told German public broadcaster ARD in the morning: "I hope that everyone will now throw party tactics overboard, that everyone will look each other in the eye in the coalition committee this evening and realise once again what responsibility they now bear".

Alas, it was not to be. Political analyst Thu Nguyen, Deputy Director at the Berlin based think tank Jacques Delors Centre commented on social media: "Trump‘s election did not keep the German government from collapsing for even one day. Not sure this bodes well for those hopeful that it might shock the EU into more common action."

The downfall, or slow motion train wreck as some might describe it, began on November 15, 2023, when the Federal Constitutional Court declared parts of the government's budget policy unconstitutional. It left the coalition ithout a viable financial plan, and exposed the rifts between its partners.

However, the three parties' basic political convictions did not fit together in the first place. The SPD and Greens are essentially left-wing parties that believe in a strong state and need a lot of money for social policy and climate protection.

The economically liberal FDP is of the opposite opinion: It believes in a lean state that should only intervene in exceptional cases and exercise financial restraint. During the election campaign, the party promised to balance the budget and comply with the debt brake enshrined in Germany's constitution.

 Since Hausfrau - Volksfuhrer Merkel left office Germany has lurched from one disaster to another mostly due the the departed Chencellor's legacy policies, Net Zero and Open Borders. It was inevitable  this dysfunctional coalition would collapse in a shambolic craptangle sooner rather than later.

Whilst in UK Starmer thinks he's safe he has another think coming as he haas never really won the election, his stonking majority it was gifted to him by the ineptitude of the Tries and the apathy of voters, but in just over 100 days he has managed to crystalise the British public against him and his gang of freeloading imbeciles. The omnishambles budget has just about undone Labour. 

The can expect total opposition from the public to everyone of their madcap schemes; the protests start with a farmer's rebellion on 19th November in London. Take a golf umbrella, there may be showers of farmyard slurry.

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