Pressure piles on Germany’s Scholz to hold quick elections after coalition collapses

The breakdown of the government has thrown the country into political turmoil

German Chancellor Olaf Scholz (The Associated Press)

Opposition parties in Germany have called for new elections as soon as possible – urging for an immediate vote of confidence in Chancellor Olaf Scholz’s coalition “by the beginning of next week at the latest” – after the three-way coalition collapsed and plunged the country into political turmoil.

The collapse of Mr Scholz’s coalition government, triggered by his decision to fire finance minister Christian Lindner of the Free Democrats (FDP) over a dispute about how to how to plug a multi-billion-euro hole in the country’s budget, has left Germany’s Social Democrats (SPD) and Greens without a parliamentary majority.

The break-up creates a leadership vacuum at the heart of Europe just as it seeks to form a united response to the election of Republican Donald Trump to a second term as US president on issues ranging from Russia's invasion of Ukraine and the future of the Nato alliance, to possible new US trade tariffs.

German chancellor Olaf Scholz, from right, economy and climate minister Robert Habeck and finance minister Christian Lindner (The Associated Press)

Mr Scholz has announced plans to hold a confidence vote in January, which he is likely to lose, potentially triggering new elections by March, months earlier than the scheduled September election. However, opposition leader Mr Merz, whose conservative bloc now leads in polls, argues that this timeline is too slow.

In a hastily called news conference, Mr Merz – who is in a strong position to become the country’s next leader – called for an immediate vote, saying Germany “simply cannot afford” to endure months “without a majority government” followed by an extended campaign and coalition talks. He urged for a confidence vote as soon as next week, suggesting that snap elections could take place by mid-January if Mr Scholz’s government fails. He told reporters: “Time is of the essence.”

Mr Merz said he would press Scholz to speed up the confidence vote in his meeting with him on Thursday. Mr Scholz may have to heed those calls given that, due to his coalition's demise, he will have to rely on cobbled-together parliamentary majorities to pass any serious measures. Although the opposition have few ways in which to force his hand.

The FDP's exit will likely also spell the departure of the government's transatlantic coordinator who has spent months cultivating ties with senior US Republicans ahead of the prospect of a Trump return to the White House.

German opposition leader and Christian Democratic Union party chairman Friedrich Merz (The Associated Press)

The government’s collapse might be a “blessing”, Carsten Brzeski, an economist at ING told Reuters, citing the internal tensions that had plagued the coalition. He said: “Elections and a new government could and should break the country’s current deadlock, providing clear policy direction and stability.”

Some voices within the conservative bloc and the FDP have echoed the call for earlier elections. FDP parliamentary leader Christian Duerr told ARD broadcaster: “We need clarity now.”

Joerg Kukies, a top official in the German chancellery and deputy finance minister, has been chosen to replace Mr Lindner as finance minister, a government spokesperson said. Mr Kukies, from the SPD, is considered a close Scholz ally.

Still the rise of the far-right Alternative fur Deutschland (AfD) party, which is polling at around 17 per cent in nationally, means that even with new elections, the country could struggle to form a coherent coalition with a strong parliamentary majority. The leftist Sahra Wagenknecht Alliance (BSW), like the AfD, has performed strongly in European parliament elections and local elections in recent months. The BSW are polling at around 8 per cent nationally.

"You don't have to be a clairvoyant to deduce... that things will not automatically become easier in the future, even after the next election," said the economy minister and vice chancellor, Robert Habeck of the Greens.