Germany faces early elections after coalition collapse and finance minister's dismissal

German Chancellor Olaf Scholz has fired his finance minister, ending the governing coalition. This move follows disputes over economic policies, particularly with the Free Democratic Party (FDP). Scholz plans a vote of no confidence in January. In the meantime, Scholz's Social Democratic Party (SPD) and the Green Party will continue as a minority government. They aim to address urgent issues, including a pensions package and EU asylum laws, but face challenges in passing a budget. If the no-confidence vote fails, President Frank-Walter Steinmeier may dissolve parliament, leading to early elections. These could occur as soon as March, significantly earlier than the previously scheduled election in September 2025.