Chancellor Olaf Scholz's decision to sack Finance Minister Christian Lindner has led to the collapse of Germany's governing coalition, marking a significant political crisis.
Lindner's leaked position paper, advocating for tax cuts and a moratorium on regulations, provoked backlash from coalition partners, condemning it as neoliberal ideologies and reversing prior agreements.
The political turmoil adds to the existing economic challenges Germany faces, including impacts from the COVID-19 pandemic and the ongoing war in Ukraine.
Co-chairs of the SPD and the Greens voiced their strong opposition to Lindner’s proposals, highlighting a shift from policy consensus to chaos and uncertainty.
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