The Ampel coalition in Germany has collapsed after Chancellor Olaf Scholz dismissed Finance Minister Christian Lindner amid deep divisions over economic policy. Following heated disputes over key issues like budget and taxation, Lindner’s FDP announced it would withdraw from the coalition. Scholz plans to push essential legislation before a no-confidence vote expected in January, potentially leading to early elections by the end of March. This political upheaval raises concerns about Germany’s fiscal stability and its role in international crises, as economic growth is forecasted to decline further in 2024.

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