German chancellor Olaf Scholz cited persistent disagreements with finance minister Christian Linder for the breakdown of his centre-left coalition.
Mr Scholz's adminstration has been the head of a so-called 'traffic light coalition - which include his Social Democratic Party , the Greens and the liberal Free Democratic Party - since 2021.
Read More Olaf Scholz demands mainstream German parties avoid working with 'right-wing extremists' Mr Scholz is expected to cobble-together a minority government with the Greens in order to pass legislation before a parliamentary confidence vote in his government on January 15. A political shake-up could fuel growing frustration with Germany's mainstream parties to the benefit of younger populist movements, including the anti-immigrant AfD.
Speaking after the chancellor, Mr Lindner said the chancellor had tried to strong-arm him into breaking a constitutionally-enshrined spending limit known as the debt brake, a move that Mr Lindner, a fiscal hawk, refused to support The coalition has been at odds over how best to rescue Europe's largest economy, which is facing its second year of contraction and a crisis in its economic model after the end of cheap gas from Russia following its 2022 invasion of Ukraine and amid increasing competition from China.
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