Germany’s government is on the brink of collapse — here’s what could happen now

Germany’s ruling coalition, consisting of Chancellor Olaf Scholz’s SPD, the Greens, and the FDP, is facing increasing divisions over economic and budget policies. Speculation is rising about a potential break-up of the alliance, with recent actions by the coalition partners indicating a lack of unity. Finance Minister Christian Lindner’s paper proposing economic solutions has further strained relations within the coalition. The upcoming budget for 2025 is a key issue causing tension, with the possibility of the government falling apart if agreement cannot be reached. Various scenarios, including a minority government or snap elections, could change the current government’s makeup. The risk of the coalition collapsing is at its highest, according to experts.