After nearly three years, the traffic light coalition of SPD, Greens, and FDP has collapsed. Chancellor Olaf Scholz dismissed Finance Minister Christian Lindner, prompting the FDP to withdraw its ministers from the government. A surprising end for a coalition that started with great ambitions but ultimately failed due to internal differences.

The FDP Ministers and Their Achievements

Christian Lindner (Finance Minister): Lindner pursued a restrictive fiscal policy and insisted on adhering to the debt brake. His rejection of higher government spending led to conflicts with coalition partners.

Marco Buschmann (Justice Minister): Buschmann advocated for civil rights and pushed for the digitalization of the justice system. However, his tenure was marked by controversies surrounding the Self-Determination Act.

Bettina Stark-Watzinger (Education Minister): Stark-Watzinger strived for reforms in the education system but had limited influence due to the federal structure.

Volker Wissing (Transport Minister): Wissing surprised by announcing his departure from the FDP while remaining in office. His tenure was characterized by debates on climate protection and transport transition.

The Traffic Light Coalition’s Balance Sheet

The traffic light coalition started with the promise of modernizing Germany. Despite some successes such as raising the minimum wage and legalizing cannabis, the three years were marked by constant conflicts and public disputes. The coalition ultimately failed due to differing views on economic and fiscal policy.

Approval Ratings

The approval ratings for Chancellor Scholz, Economic Minister Habeck, and Foreign Minister Baerbock had recently dropped significantly. Public dissatisfaction with the government’s work steadily increased.

Conclusion: Curse or Blessing?

The end of the traffic light coalition is both a curse and a blessing for Germany. On one hand, it leads to political uncertainty in a time of global crises. On the other hand, it offers an opportunity for a fresh start and possibly more stable political conditions.

Looking Ahead to the Months Until the New Election

The months until the planned new election in March 2025 will be challenging. Scholz plans to continue governing as a minority government with the Greens and pass important laws before Christmas. This requires support from the opposition, especially the CDU/CSU.

Why the Vote of Confidence Only in January?

The postponement of the vote of confidence to January could have several reasons:

  1. Time for Legislative Projects: Scholz wants to pass important laws before potential new elections.
  2. Tactical Considerations: The government might hope for an improvement in the political situation and poll numbers by January.
  3. Constitutional Considerations: An immediate vote of confidence could be seen as abusive, as the government is still capable of acting.
  4. International Obligations: Germany has important international appointments, such as EU summits, which require a stable government.

Minority Governments in the History of the Federal Republic of Germany

In the history of the Federal Republic of Germany, there has never been a minority government at the federal level. However, there have been some examples at the state level:

  • In Saxony-Anhalt, a minority government under Reinhard Höppner (SPD) ruled from 1994 to 1998, tolerated by the PDS.
  • In North Rhine-Westphalia, there was a red-green minority government under Hannelore Kraft (SPD) from 2010 to 2012.

These governments were usually short-lived and had difficulties implementing major reforms.

Chances and Impact on the Economy

The chances for the minority government are limited. It will need the support of the opposition for every legislative proposal, which restricts its ability to act. For the struggling German economy, this means further uncertainty. Investors might become hesitant, important reforms could be delayed. The economic recovery could be slowed down as a result.

International Press Echo

The international press echo on the collapse of the German government was considerable:

  • The New York Times headlined: “German Government Collapses as Scholz Fires Key Minister” and emphasized the impact on European politics. The newspaper analyzed that this move “shakes the stability of Europe’s largest economy and raises questions about the future of German leadership in the EU.”
  • The BBC reported: “German coalition collapses after Scholz fires key minister” and highlighted the possible consequences for the German economy. The broadcaster quoted experts warning of “a period of uncertainty that could affect investor confidence.”
  • Le Monde from France wrote: “The German coalition collapses, plunging the country into political uncertainty” and analyzed the consequences for German-French relations. The newspaper emphasized that “political instability in Berlin could weaken the Paris-Berlin axis and delay important EU reforms.”
  • The Neue Zürcher Zeitung commented: “The end of the traffic light coalition marks a turning point in German politics” and warned of the consequences for European integration. The newspaper sees “a phase of uncertainty coming for Germany and Europe, in which important decisions at the EU level could be blocked.”
  • El País from Spain headlined: “Political earthquake in Berlin: Scholz’s coalition collapses” and analyzed the possible impacts on the EU’s southern states. The newspaper fears that “a weakened German government could show less willingness to compromise on EU financial issues.”

These reactions show that the collapse of the German government is perceived as a significant event with potential implications for all of Europe. The international press emphasizes concerns about Germany’s political stability and its consequences for European politics and economy.

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