Germany to Hold Early Election on Feb. 23

Germany is set for an early election on February 23, following a no-confidence vote that led to the dissolution of Chancellor Olaf Scholz's coalition government. The Free Democrats' exit over financial disputes resulted in Scholz's Social Democrats losing their majority, intensifying political tensions as the country faces an economic crisis exacerbated by the Ukraine conflict. Opinion polls indicate a significant lead for the conservative CDU/CSU alliance, while the far-right Alternative for Germany is also gaining traction. Scholz has proposed measures like tax cuts and increased child benefits to gain bipartisan support, yet rising political complexities suggest difficult coalition negotiations ahead. The upcoming election is critical as Germany's economy struggles with stagnation, now 5% smaller than pre-pandemic trends, with fears of an irreversible decline. Additionally, the potential return of Donald Trump to the U.S. presidency raises concerns about decreased American support for Ukraine, further complicating Germany's economic landscape.