Germany is set to hold snap elections on February 23, 2025, following the collapse of Chancellor Olaf Scholz’s governing coalition. The decision was made after an agreement between parties in the fractured German parliament on Tuesday.
The breakdown was triggered by Scholz’s controversial dismissal of Finance Minister Christian Lindner, leader of the pro-business Free Democrats (FDP), which led to the party’s withdrawal from the coalition. This move left Scholz without a majority in the Bundestag, Germany’s lower house of parliament.
In a televised address, Scholz explained that the dismissal was necessary “to prevent harm to our country,” but it ultimately led to the FDP pulling out, further destabilizing the coalition government. Scholz is expected to call a vote of confidence in the Bundestag on December 16, as part of the formal process leading to the snap elections. The government is widely anticipated to lose the vote, which will set the stage for the elections, slated for February 2025.
Scholz had initially proposed the no-confidence vote to take place on January 15, 2025, with elections following in March. However, Friedrich Merz, leader of the largest opposition party, the Christian Democratic Union (CDU), rejected this timeline, arguing that Scholz’s government could no longer effectively govern without a majority.
The traffic light coalition — named for the respective colors of the SPD, FDP, and Greens — was formed in 2021 after lengthy negotiations, marking a shift from the previous grand coalition of the SPD and CDU/CSU under former Chancellor Angela Merkel.
Although the coalition initially aligned on EU, foreign, and security policies, domestic issues such as taxation, climate policy, and economic recovery measures increasingly drove a wedge between the parties. Tensions came to a head over disagreements regarding a proposed tax increase on the wealthiest to address pandemic-induced debt and differing visions on climate policy.
More recently, the coalition’s rift deepened over the 2024 budget and strategies to revive Germany’s economy, leading to its eventual collapse. The SPD emerged as the largest party in the 2021 general election, but the coalition’s dissolution now sets the stage for what could be a pivotal election, as Germany faces critical economic and political challenges.
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