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The government coalition in Germany collapsed after Scholz dismissed the Finance Minister
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The government coalition in Germany collapsed after Scholz dismissed the Finance Minister

Germany’s three-party governing coalition collapsed on November 6 after German Chancellor Olaf Scholz announced that he had dismissed Finance Minister Christian Lindner.

The decision to sack Lindner over economic disagreements is likely to push the country into early elections in the near term, as Scholz’s Social Democratic Party (SDP) is unlikely to receive enough votes to pass next year’s budget.

In a statement following the dismissal, Scholz partially justified the decision by stating that he had asked Lindner to relax spending rules to allow increased aid to Ukraine, but Lindner had refused.

“Minister Lindner often improperly blocked legislation,” Scholz said. “Too often he engaged in petty party politics tactics. He often broke my trust.”

German media reported last week that Lindner’s proposed policy document, in stark contrast to Scholz, called for significant changes to the country’s economic policy, including reducing regulations on climate policy and proposing tax cuts to stimulate economic growth.

Political instability in Berlin could cause problems for Kyiv as the far right continues to rise Alternative for Germany (AfD) party, known for its friendly views towards the Kremlin, has repeatedly called for cutting funding to Ukraine.

Under the current ruling coalition, Berlin allocated 7.6 billion euros ($8.2 billion) in military aid to Kiev in its 2024 budget.

Scholz previously said in June: declining popularity The SDP’s stance is partly linked to voters’ opposition to the party’s support for Ukraine.

SPD suffered loss of bruising In the European Parliament elections held in early June, it came in third place, behind the centre-right Conservative Christian Union-Christian Social Union (CDU/CSU) and the far-right AfD.

After the vote, Scholz said that many voters I disagree The government’s support for Ukraine and sanctions against Russia “are also reflected in the election results.”

Scholz added that a vote of confidence will be held on January 15, which will potentially pave the way for elections in early March.

Lindner, a member of the Free Democratic Party (FDP), has repeatedly seen polls insist the FDP will fail to pass the five percent support threshold needed for the party to enter the German parliament in the next election, Politico reported. The collapse of the coalition signals an opportunity for the FDP to break away from the ruling government on a number of important issues.

Initially criticized for its slow delivery of military aid to Ukraine following the start of the full-scale invasion, Germany has become the second largest provider of military equipment after the United States.

In October, Scholz announced that Germany had delivered an aid package worth 600 million euros ($660 million) to Ukraine. IRIS-T medium-range air defense system, armored vehicles, tanks, howitzers, ammunition and unmanned aerial vehicles.

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