In December 2021, Germany’s “traffic light coalition”—comprising the Social Democrats (SPD), the Greens (Bündnis 90/Die Grünen), and the Free Democratic Party (FDP)—set out with high aspirations to drive forward the green transition and improve social benefits. Now, a little less than one year before the official federal elections scheduled for September 2025, the coalition has collapsed, and snap elections are set to reshape Germany’s political landscape on February 23, 2025.
The German government had to navigate considerable crises, including Russia’s invasion of Ukraine, soaring energy costs, and the economic downturn. By 2023, regular public disputes and political infighting over fiscal policy, the energy transition strategy, social spending and budgetary decisions became routine. Tensions reached a boiling point when Chancellor Olaf Scholz and his now-former Finance Minister Christian Lindner each held separate economic summits on October 29.
Lindner’s controversial 18-page policy paper, which was leaked on November 1 and outlined irreconcilable approaches to the economic crisis, resulted in his dismissal from his role as finance minister. The following debrief outlines the start of the coalition, the challenges it faced and the key events that eventually led to its collapse. With snap elections now on the horizon, it remains to be seen how these turbulent years will shape the outcome of the vote and who will ultimately benefit the most from the sudden dissolution of the German government.
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