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After weeks of coalition talks on Germany's economic future, Chancellor Scholz has fired the country's finance minister, Lindner, from the FDP.
German newspaper Bild reported the sacking, while Scholz's spokesman Steffen Hebestreit confirmed it to AFP.
Lindner had called for comprehensive economic reforms, which have been opposed by the other two parties in the coalition.
At issue is how Germany can plug a hole in the 2025 budget ahead of a crucial budget committee meeting on November 14. The bump in spending comes as Germany's economy has struggled and faces another year of recession.
Minutes before the news of Finance Minister Lindner's dismissal was announced, German media reported that the leader of the Free Democrats had suggested to his partner Chancellor Scholz to hold elections early next year.
The suggestion was proposed as a solution to the government crisis. Scholz had rejected the suggestion, Bild newspaper reported.
Scholz held a press conference explaining his decision to fire his finance minister, which has put his coalition at risk of collapse.
Asked why he fired Lindner, Scholz said: " He has broken my trust too often... Serious government work is not possible under such circumstances ."
"Finance Minister Lindner showed no willingness to implement any of our proposals ," Scholz said, adding that German companies need immediate support and " anyone who refuses this is acting irresponsibly ," he said. with the stalemate with Lindner.
Chancellor Scholz said the move would require a vote of confidence in his government on January 15, 2025.
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