In a televised address to the nation from the Federal Chancellery on Nov. 6, Chancellor Olaf Scholz, leader of the Social Democratic Party (SPD), announced that ongoing disagreements over budgetary priorities had undermined the ability of the coalition to manage the financial challenges of Germany, particularly in light of the projected 2025 federal budget. He claimed that the abrupt dismissal of Lindner was "necessary to prevent harm to our country." (Related: German economy in DEATH SPIRAL after failed "green economic miracle" escapades.)
The dismissal came after days of political negotiation among leaders of Germany's "traffic light" coalition – Scholz of the red SDP, Lindner of the yellow Free Democratic Party (FDP) and Robert Habeck of the green Green Party. The crisis reached a head when Lindner published an 18-page economic proposal, titled "Germany's Economic Turnaround," which outlined tax cuts and urged a "fundamental revision of key political decisions" to protect Germany's position as an economic powerhouse.
However, German commentators described Lindner's paper as a manifesto more in line with campaign rhetoric than coalition cohesion, which prompted speculation about his long-term ambitions. Cynics suggest it may have served as a veiled bid for electoral support rather than an actionable government policy.
"For the past three years, my focus has been on providing stability and making decisive choices for Germany," Scholz said during the address. He revealed that he had presented a "comprehensive offer" to the FDP to bridge their policy divide and avoid economic turbulence while addressing key budget issues. However, Lindner "showed no willingness to implement any of our proposals."
Scholz announced that he would call a confidence vote for Jan. 15, possibly setting the stage for snap elections by the end of March. Until then, Scholz pledged to advance legislation with potential cooperation from Friedrich Merz, leader of the opposition Christian Democratic Union (CDU). "The economy cannot wait until after the elections," Scholz stated.
If the elections proceed, it would mark Germany's first snap election since 2005, when Chancellor Gerhard Schroder called for early elections but ultimately lost to Angela Merkel.
Linder countered Scholz's allegations in a separate speech
In a separate address that same day, Lindner countered Scholz's allegations.
During his address, Linder claimed that the chancellor had dismissed his proposal to resolve the budgetary crisis through early elections. Lindner also disclosed that Scholz had urged him to pause Germany's "debt brake" – a constitutional measure preventing excessive government borrowing.
Lindner, known for his fiscal conservatism, refused to compromise on this measure. He stated that adherence to the debt brake was essential for Germany's financial credibility, especially "after the U.S. elections," a period when Lindner said global stability would be critical.
Meanwhile, Germany's far-right Alternative for Germany (AfD) party, which recently won its first state election, approved the coalition's potential collapse. Alice Weidel, the party's leader, celebrated the news and called the coalition's dissolution "a liberation for our country."
"The end of the traffic light coalition is a liberation for our country. The end of the self-proclaimed 'progressive coalition' that took Germany to the brink of economic ruin was more than overdue," Weidel posted on X.
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Watch this video of former German Finance Minister and FDP leader Christian Lindner speaking about the reasons for his dismissal.
This video is on Cynthia's Pursuit of Truth Channel on Brighteon.com.
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