German Chancellor Scholz dismisses liberal Finance Minister Lindner

German Chancellor Olaf Scholz has dismissed Finance Minister Christian Lindner, his spokesman confirmed to local media on Wednesday, marking a significant upheaval in the country's coalition government.

Government spokesman Steffen Hebestreit told the German press agency DPA that Chancellor Scholz has removed Lindner from his position as Finance Minister.

The dismissal comes after Lindner, leader of the Free Democratic Party (FDP), proposed new elections to Scholz, citing insufficient common ground in economic and financial policy.

Earlier on Wednesday, Scholz held crisis talks with the leaders of Social Democrats, Greens, and Free Democrats to reconcile their differences on budget, economic policy, and investments.

Sources close to the discussions quoted Lindner as saying it was in the country's interest to quickly regain stability and the ability to act.
Prior to his dismissal, Lindner had suggested that coalition parties should jointly aim for new elections in early 2025.

Chancellor Scholz's coalition government has been grappling with internal tensions since Christian Lindner drafted a policy paper calling for a significant shift in economic and financial policy. The paper proposed slashing taxes, modifying ambitious climate goals, and introducing cuts to social spending.

Robert Habeck, an influential figure in the pro-environment Greens party, presented his own strategy paper to boost the ailing German economy. Habeck's proposal called for additional special funds and substantial investments to accelerate the country's transition to a green economy.