German ruling coalition collapses as Scholz fires Finance Minister Lindner – POLITICO

The crisis talks in the coalition of Scholz, the Greens and Lindner's FDP came to a head after the FDP presented a paper with demands for liberal economic reforms that were difficult for the other two parties to implement.

During a dramatic meeting of the leaders of the three parties in the Chancellery on Wednesday evening, Lindner told Scholz he saw no possibility of continuing the coalition and called on him to pave the way for early elections.

This led to Scholz announcing he would be fired, two people with knowledge of the discussions told POLITICO.

Although Scholz could potentially try to continue governing in a minority government, he does not have a majority to pass a budget, increasing the likelihood of a vote of no confidence and early elections – possibly in early March.

The FDP is the smallest party in the coalition and is currently polling at just four percent – below the hurdle needed to enter the German parliament in the next federal election in September – meaning its leaders have thought about breaking the coalition in order to save their political future.

Lindner's policy paper, leaked to the media last week, called for tax cuts and a rollback of climate policy to boost economic growth – both positions that put the party at odds with its coalition partners.