German Chancellor Olaf Schulz has announced the sacking of Finance Minister Christian Lindner, confirming that he will table a confidence motion in parliament on 15 January.

In a brief press statement, Schulz blamed the finance minister, a member of the Liberal Party which forms the governing coalition with the Social Democrats and Greens, for the current crisis in the German government.

Schulz accused Lindner of having “betrayed his trust more than once” and stressed that “serious government work is not possible under these circumstances”.

Pointing to the tense international situation, Schulz said that “those who refuse to look for solutions in these international circumstances and refuse to compromise act as if they cannot take responsibility, which I cannot tolerate as chancellor”.

The main point of contention is how to close the large gap in the 2025 budget and measures to pull the struggling German economy out of the crisis.