German chancellor dismisses finance minister following failed coalition negotiation

BERLIN - German Chancellor Olaf Scholz announced on Wednesday evening that he had asked the German president to dismiss Federal Minister of Finance Christian Lindner.

The announcement comes after a meeting of the coalition committee in Berlin.

"I feel compelled to take this step in order to prevent damage to the country," Scholz said at a press conference, stressing that Germany needs a functional government that can make the necessary decisions for the country.

Last week, an 18-page document signed by the federal minister of finance was leaked to the media. The document proposed measures including weakened climate regulations and reduced welfare benefits, which run counter to the policies advocated by the parties of Scholz and Economics Minister Robert Habeck.

The leaked document has exacerbated tensions among the Social Democratic Party (SPD), the Greens, and the Free Democratic Party (FDP).

The three ruling parties were already struggling to finalize next year's budget, which has huge holes that need to be plugged ahead of a mid-November deadline.

Over the past few days, Scholz, Habeck, and Lindner have engaged in numerous discussions to guide the government through its remaining tenure, despite disagreements among them having presented increasing obstacles.

According to German newspaper Bild, Lindner on Wednesday proposed to put an end to the current federal government and that elections be held in early 2025 instead of the scheduled date of September 28, 2025, but Scholz has refused such a proposal.

German news agency dpa, quoting attendees of Wednesday evening's meeting, reported that Lindner said that there is not enough common ground on economic and financial policy, and a swift return to stability and capacity to act is in the national interest.

Germany's economy is projected to experience a contraction in 2024, marking the possibility of a second consecutive year of economic decline. Meanwhile, the support ratings of the three governing parties have all experienced a substantial decline relative to their high levels in 2021 and 2022.