German Coalition Government Collapses After Minister's Firing

German Chancellor Olaf Scholz has dismissed Finance Minister Christian Lindner, leading to the collapse of the three-party governing coalition amid ongoing tensions over budget negotiations. Scholz's coalition, known as the Ampelkoalition, has been under strain since its formation in 2021, particularly regarding the proposed relaxation of Germany's 'debt brake' to address budget deficits and support economic recovery. This political upheaval has prompted calls from opposition parties and business groups for early elections, which are anticipated to occur by March following a confidence vote on January 15. The coalition's disintegration comes at a time when the German economy is facing recession, highlighted by significant losses in major industries like Volkswagen. The rise of far-right parties is also noted as a concerning trend in the wake of the coalition's failure. Scholz's government is criticized for its inability to address economic challenges and is perceived as heavily influenced by external pressures from the U.S. administration.