German ruling coalition breaks up – what next?

Following the withdrawal of the Liberals (FDP) from the German governing coalition, the Social Democrats (SPD) and Greens want to continue governing...

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Dr. Ralph Solveen

Commerzbank Economic Research

11/07/2024

...without an own parliamentary majority for the time being. However, snap elections are to be called in mid-January, which will probably take place in March. According to current polls, a coalition of the Christian Democratic CDU/CSU and SPD would be the most likely outcome.

After the break-up of the ruling coalition ...

Yesterday evening, Chancellor Scholz dismissed Finance Minister Lindner, who is also chairman of the liberal FDP, due to major differences of opinion on economic policy. The other FDP ministers resigned, ending the governing coalition of SPD, Greens and FDP. Now, Chancellor Scholz no longer has a majority in the lower house of parliament (Bundestag). Nevertheless, Scholz and the ministers from the SPD and the Greens will remain in office for the time being.

... probably a minority government consisting of SPD and Greens for the time being ...

Chancellor Scholz announced yesterday that he wants to continue with this minority government for the time being. The opposition cannot prevent the SPD and the Greens from doing so. This is because the opposition can only topple the Chancellor by electing a new Chancellor with a majority of the members of the Bundestag (so-called Chancellor majority) – currently this would be 367 votes out of a total of 733 seats (so-called constructive vote of no confidence). However, this will not happen as the CDU/CSU, even together with the FDP, does not have the necessary majority. They are unlikely to get any support from the SPD and the Greens, and they certainly do not want to rely on the support of left and right wing parties.

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