Political Crisis in Germany: Government Coalition Split

Germany’s political and economic outlook is increasingly bleak. After months of wrangling and bitter disagreements within the three-party coalition dubbed the “traffic light” coalition, last night saw the final breakup of the government trio consisting of the Social Democrats (SPD), the Liberal Democrats (FDP), and the Greens. Last week’s meetings of the so-called “coalition committee” in which German Chancellor Olaf Scholz (Social Democratic Party), Economy Minister Robert Habeck (Greens), and former Finance Minister Christian Lindner (Liberal Democratic Party) tried in vain to find a compromise on economic policy. After three days of negotiations, Lindner decided to “put an end” to the talks by suggesting that we go to early elections “as soon as possible.”

The offer from the finance minister and Liberal Democrat leader was immediately rejected by Scholz, who called the former ally a “traitor” and announced Lindner’s removal from office.

It didn’t take long for the FDP to react: after Lindner’s dismissal, other ministers belonging to the Liberal Democratic Party and currently in the German government also resigned. According to the German press, “Specifically, they are Marco Buschmann (Justice), Volker Wissing (Transportation), and Bettina Stark-Watzinger (Education).”

“We need an effective government with the power to make the necessary decisions for Germany,” Scholz said during a press conference called immediately after the executive summit. According to Scholz, “the FDP leader betrayed my trust and there is no longer any basis for continued cooperation. Lindner can’t hide when the situation gets complicated. His low-tax policies have created a security risk by favoring a wealthy minority while the United States and China continue to invest. It’s disrespectful to those who honestly pay taxes,” Scholz emphasized.

According to the Chancellor, in the midst of the economic crisis in Germany, it is necessary to act immediately and all together: “Our economy can’t wait for another election. We must act immediately,” Scholz said, citing among his priorities a new pension law, “a necessary law guaranteeing the well-being of citizens, which must be finalized by March.”

In this context, Scholz said he would “ask the Bundestag to start the procedures for the vote of confidence as soon as possible,” which is likely to take place on January 15. According to the chancellor, the decision will in fact “allow MPs to assess whether to open the way for the early elections” requested by Lindner, which, if approved, “could take place before the end of March.”

Meanwhile, following the mass resignation of the ministers of finance, justice, education, and transportation, according to a document signed by the federal cabinet three years ago, the “orphan” ministries will be headed by three members of the Social Democratic Party and one of the Greens. Specifically, current Interior Secretary Nancy Faeser will head the Justice Department to replace Marco Buschmann. Bettina Stark-Watzinger, who served as Education Minister, will be replaced by Family Affairs Minister Lisa Paus (Greens). Finally, Environment Minister Steffi Lemke will have to replace her former colleague, Transport Minister Volker Wissing.