Germany's governing coalition collapses as Trump returns to the White House

Germany's governing coalition has collapsed, creating new risks for its struggling economy. Chancellor Olaf Scholz fired Finance Minister Christian Lindner, leading to a loss of parliamentary majority. Scholz plans a confidence vote on January 15, which could trigger early elections. The coalition's breakdown follows internal disputes over economic strategies. Business leaders are calling for swift action to stabilize the government. The situation is compounded by the return of Donald Trump as U.S. President, raising concerns about potential trade tensions and tariffs. Germany's economy has been declining due to the pandemic, the war in Ukraine, and competition from China. Analysts warn that Trump's presidency could worsen these challenges, particularly for the automotive sector, which is already facing significant pressures.