But internal tensions had been building for weeks before they came to light on Wednesday night.

Scholz harshly criticized the former finance minister, saying he “betrayed my trust” and accused him of putting the interests of his own party base ahead of the country’s interests.

He added that Germany needs to show that it can be trusted by other countries, especially after the election of Donald Trump.

The crisis within the coalition has thrown Europe’s largest economy into political chaos hours after Trump’s election triggered deep uncertainty about the future of the continent’s economy and security.

When the coalition between the chancellor’s center-left Social Democrats, the environmentalist Greens and the economically liberal FDP was formed in 2021, each party planned to spend big on its core interest groups.

But then Russia began a full-scale invasion of Ukraine, energy prices soared, and Germany suddenly faced a massive and controversial increase in defense spending and the cost of accepting 1.5 million Ukrainian refugees.

Germany is now experiencing its second year of no economic growth. The prospect of a Trump presidency further heightens the sense of urgency that Germany needs a strong government and policies to revive the economy.

The response to the crisis, according to Chancellor Scholz and his Green partners, is to relax constitutional rules on public debt to allow more spending. But this is something the free market FDP strongly opposes.

Instead, Lindner wants to boost the economy by cutting taxes paid by cutting welfare and social budgets and pushing back on environmental targets.

Economy Minister Robert Habeck from the Greens said that the party will not leave the government and its ministers will remain in office.

Scholz announced that a vote of confidence would be held in the German parliament, the Bundestag, on January 15. If MPs reject the government, new elections will be held in the country within a few weeks instead of the planned date in September.

CDU is currently ahead in the polls. Scholz’s Social Democrats and the far-right Alternative for Germany are in second place.