Skip to content
Search

Latest Stories

What We're Watching

Germany’s governing coalition crumbles over budget battle

German Chancellor Olaf Scholz leaves the Bellevue Palace, after he sacked Christian Lindner.

German Chancellor Olaf Scholz leaves the Bellevue Palace, after he sacked Christian Lindner.

REUTERS/Liesa Johannssen

Germany’s governing coalition collapsed on Thursday after Chancellor Olaf Scholz fired Finance Minister Christian Lindner, head of the pro-business Free Democrats and a linchpin in his majority, likely spurring a vote of confidence.

Germany is struggling in the aftermath of Russia’s invasion of Ukraine, which has sent energy prices skyrocketing, upped defense spending, and brought in 1.5 million Ukrainian refugees. Lindner wanted to spur the economy through tax cuts paid for by slashing social programs and climate change targets, while Scholz pushed for loosening the spending limit.


Scholz’s “traffic-light coalition” has governed Germany since 2021, but internal tensions have been rising for weeks over the 2025 budget amid a second consecutive year of no economic growth. Now, without a majority, his coalition must rely on individual votes from other parties to pass laws until an election is held.

“The big question about this vote of confidence is not the result but the timing,” explains Eurasia Group’s Europe director, Jan Techau, who says the opposition party will try to pressure the vote to happen as soon as possible, though Scholz will try to hold off until at least January.

“It is clear that Scholz will lose the vote. The entire purpose of the vote is to lose it, thereby clearing the way for elections,” says Techau. How Scholz will fare in elections is unclear but will hinge on issues of migration, pensions, cost of living, and the war in Ukraine.

More For You

​Tractors drive on the N-403 towards Zafra during a rally on 16 January 2026 in Badajoz, Extremadura (Spain).

Tractors drive on the N-403 towards Zafra during a rally on 16 January 2026 in Badajoz, Extremadura (Spain).

Photo by Javier Cintas/Europa Press/ABACAPRESS.COM
Food fight! Why the US is upset about the EU-Mercosur dealThe US is criticizing a new EU trade deal with South America’s Mercosur bloc, saying it unfairly favors European farmers at the expense of American importers. The agreement – nearly 25 years in the making – would cut most tariffs across a combined market of toughly 700 million people and [...]
​Pro-government supporters holding a Venezuela's flag attend a rally against U.S President Donald Trump in Caracas, Venezuela August 14, 2017.

Pro-government supporters holding a Venezuela's flag attend a rally against U.S President Donald Trump in Caracas, Venezuela August 14, 2017.

REUTERS/Ueslei Marcelino
Venezuela’s political limbo on display in WashingtonWhen they meet at the White House today, Venezuelan opposition leader and Nobel Peace Prize winner María Corina Machado will seek to convince US President Donald Trump that it was a mistake to back Delcy Rodríguez as interim leader of Venezuela. At the same time, a special envoy representing [...]
​A shop owner David Rogilds holds a shirt that he sells in Nuuk, Greenland, January 14, 2026.

A shop owner David Rogilds holds a shirt that he sells in Nuuk, Greenland, January 14, 2026.

REUTERS/Marko Djurica
Greenland officials come to Washington, after PM rejects joining USRock, meet hard place: officials from Denmark and Greenland are meeting with members of the Trump administration to discuss the future of the semi-autonomous island. The various players have discussed the matter before, but this is the first time since US President Donald Trump [...]
​People hold flafs and light up their phones outside the U.S. consulate during a rally in support of nationwide protests in Iran, in Milan, Italy, January 13, 2026.

People hold flafs and light up their phones outside the U.S. consulate during a rally in support of nationwide protests in Iran, in Milan, Italy, January 13, 2026.

REUTERS/Claudia Greco
Will Trump end the China truce over Iran?US President Donald Trump said he would impose a 25% tariff on countries that do business with Iran, escalating pressure on the Islamic Republic as protests rage across the country. The White House is still considering talks with Tehran, although Trump is leaning toward authorizing military strikes, the [...]