German coalition collapses, Scholz fires finance minister

Germany’s centre-left Chancellor Olaf Scholz announced on Wednesday he was firing Finance Minister Christian Lindner, signalling the collapse of the ruling three-party coalition that relied on Lindner’s pro-business party.

Scholz announced the move at a news conference following weeks of disputes among the coalition partners over ways to boost the country’s ailing economy. He said he would seek a vote of confidence in January that he said might lead to early elections that otherwise would be due next September.

“I feel compelled to take this step to prevent damage to our country. We need an effective government that has the strength to make the necessary decisions for our country,” Scholz said. Lindner, from the 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 environmental Greens, who are also part of the coalition, wanted to see massive state investment and rejected the Free Democrats' proposals to cut welfare programmes.

Lindner responded to his dismissal by accusing Scholz of failing "to recognise the need for a new economic awakening in our country. He has played down the economic concerns of the citizens.”