The key reason for the collapse of Germany’s ruling coalition was the refusal of Finance Minister Christian Lindner to support a budgetary plan that would increase aid to Ukraine, Chancellor Olaf Scholz has said.
On Wednesday, Scholz fired Lindner, the leader of the pro-business Free Democratic Party (FDP), which is one of three parties comprising Germany’s so-called ‘Traffic Light’ coalition government alongside the Social Democrats and the Greens.
The rift between Scholz and Lindner reportedly came to a head after a meeting in which the coalition partners failed to find common ground on how to plug a multibillion-euro hole in next year’s budget and revive the struggling economy.
At a press conference the same day, Scholz said that, by dismissing Lindner – who walked out along with other FDP ministers, he had sought to “turn away damage from our country.”
According to the German chancellor, his proposal included a push to ensure affordable energy costs, a package to secure jobs in the automotive industry, and a plan to introduce an investment premium to attract capital to Germany. Scholz also insisted on “increasing our support for Ukraine, which is heading towards a severe winter,” adding that Germany had to send a signal to the world that it can be relied upon, especially after Donald Trump’s victory.
“The finance minister shows no willingness to implement this offer in the federal government for the benefit of our country. I do not want to subject our country to such behavior any longer,” he added.
Following the coalition’s collapse, Scholz found himself at the helm of a minority government and announced a vote of confidence in mid-January, which could potentially pave the way for snap election in March.
Previous media reports claimed that Lindner had asked the Defense Ministry to limit military assistance to Kiev, citing budgetary difficulties. Berlin has already almost halved its assistance to the embattled country from €7.5 billion ($8 billion) in 2024 and to just €4 billion ($4.3 billion) in 2025.
Russia has repeatedly denounced Western arms shipments to Ukraine, warning that they are only prolonging the conflict and imposing a burden on taxpayers without altering the outcome.