The announcement came at a press conference when it became clear that Scholz (SPD) had fired Finance Minister Christian Lindner in the middle of working on next year's state budget. Lindner (FDP) had wanted to implement large cuts, while Vice-Chancellor Robert Habeck (The Greens) wanted to see increased spending.
He has broken my trust many times. It is impossible to perform serious government work under such circumstances, says Olaf Scholz.
After being dismissed from his ministerial post, Lindner accuses Scholz of not having "recognized the need for a new economic awakening in our country. He has downplayed citizens' economic concerns."
Furthermore, Lindner believes that the Chancellor's proposals are "dull, unambitious, and do not contribute to overcoming the fundamental weakness in our country's growth."
Ministers from the three coalition parties – the Social Democratic SPD, The Greens, and the Liberal FDP – are meeting in Berlin this week.
On Wednesday evening, the government crisis became clear, and Scholz announced a vote of confidence at the beginning of January. This could mean new elections before the regular election next year, which is planned for September.
