German coalition government collapses after fiscal policy disputes

Germany's coalition government, made up of the Social Democrats, Greens, and Free Democrats, collapsed on Wednesday after nearly three years. The coalition struggled with conflicting priorities, leading to ineffective governance and disagreements over key issues like fiscal policy and the future of the car industry. The coalition initially showed promise, implementing bold measures in response to the energy crisis. However, as time passed, internal conflicts became more pronounced, particularly over budgetary issues following a court ruling that limited emergency funding options. The final breakdown occurred after Chancellor Olaf Scholz dismissed Finance Minister Christian Lindner amid disputes over budget management. The coalition's inability to agree on fiscal policy has raised questions about the future direction of Germany's governance.