German Chancellor Olaf Scholz sacks finance minister over budget dispute

“I feel compelled to take this step to prevent damage to our country. We need an effective government that has the strength to make the necessary decisions for our country,” Scholz said.

Speaking at a press conference today, Scholz launched a tirade against Lindner.

“Anyone who joins a government must act responsibly and reliably, they cannot run for cover when things get difficult.

“They must be willing to make compromises in the interests of all citizens... But that is precisely not Christian Lindner’s focus right now, he is focused on his own clientele.”

He said he would call for a vote of no confidence on January 15 in parliament.

His sacking signifies the end of the ruling coalition government between Scholz’s Social Democratic Party (SPD), the Greens and Lindner’s Free Democratic Party (FDP).

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The three-party union could not agree on how to plug a €9billion hole in the spending plan ahead of a meeting of parliament’s budget committee next week.

The deadline for the budget was set for later this month.

Lindner had rejected tax increases or changes to Germany’s harsh self-imposed limits on running up debt, while SPD and the Greens want to see huge state investment.

Both rejected the FDP's proposals to cut welfare programmes.

Lindner told Scholz he saw no way of continuing the coalition and urged him to get ready for elections - they were due to be held in September 2025.

While Scholz could theoretically continue to rule through a minority government, he has no majority to pass a budget.

The announcement comes just after Donald Trump became victorious in the 2024 US Presidential Election.

Many in Germany had hoped that his win would force the coalition to stay together amid fears that the incoming president could plunge Europe's biggest economy into chaos.