Germany’s government collapsed, what now?

​ The Bundestag has withdrawn its confidence in Chancellor Scholz, paving the way for a new election on February 23, 2025.
The Bundestag has withdrawn its confidence in Chancellor Scholz, paving the way for a new election on February 23, 2025.
Germany’s government collapsed on Monday after Chancellor Olaf Scholz lost a vote of confidence — one he called himself, expecting to lose. The vote will dissolve parliament and leave Europe’s largest economy in the hands of a caretaker government until general elections take place on Feb. 23, which Scholz calculated was his best chance at a breakthrough in the gridlock in Berlin. The writing had been on the wall for quite a while: Scholz’s three-party “traffic light coalition” disentangled over budgetary and economic reform disagreements in early November.

Speeding up the election timeline is good news for a country that is in desperate need of leadership. The next Chancellor will have to confront economic and fiscal crises, quell growing populist sentiment, bridge social divisions, and stand up to NATO-weary Donald Trump.

Who will lead Germany next? Scholz will run again, but his main competitor and leader of the center-right Christian Democratic Union, Friedrich Merz, is favored to win. If he can peel off at least one of the traffic light coalition’s partners, he’ll likely be able to create a CDU-led majority. However, the size of the next ruling party's coalition will be key in their ability to enact aggressive policies like removing or loosening Germany’s debt brake. If populist fringe parties on the far-left and far-right together secure at least a third of the seats in the Bundestag, major overhauls will remain difficult.

More from GZERO Media

A person holds a placard on the day justices hear oral arguments in a bid by TikTok and its China-based parent company, ByteDance, to block a law intended to force the sale of the short-video app by Jan. 19 or face a ban on national security grounds, outside the U.S. Supreme Court, in Washington, U.S., January 10, 2025.
REUTERS/Marko Djurica
Houses are pictured in Ilulissat, Greenland, September 14, 2021.
REUTERS/Hannibal Hanschke

Greenland wants independence from Denmark, Trump wants a stronger US presence there. How could this play out?

At this year's World Economic Forum in Davos, Switzerland, our Global Stage panel discussion, "The AI Economy: An Engine for Local Growth", will examine AI’s growing global impact, the potential for enormous benefits to society, and the investments necessary to ensure equitable diffusion and adoption of AI tools. Watch the live premiere on Wednesday, January 22 at 11 am ET/5 pm CET at gzeromedia.com/globalstage.

Israeli Prime Minister Benjamin Netanyahu attends the weekly cabinet meeting in Jerusalem December 27, 2015.
REUTERS/Dan Balilty/Pool

Prime Minister Benjamin Netanyahu’s office confirmed on Friday that a Gaza ceasefire deal has been finalized following a “last-minute crisis," and the security cabinet is meeting now to ratify the agreement.

FILE PHOTO: Sudan's army chief Abdel Fattah al-Burhan arrives at Beijing Capital International Airport before the Forum on China-Africa Cooperation (FOCAC) Summit, in Beijing, China September 3, 2024.
REUTERS/Florence Lo/Pool/File Photo

The United States on Thursday imposed financial sanctions on Sudan's army chief, General Abdel Fattah al-Burhan.

Conservative Party of Canada leader Pierre Poilievre; Mark Carney, former Governor of the Banks of England and Canada; and Canada's former Foreign Minister Chrystia Freeland.

Dylan Martinez/Patrick Doyle/Chris Wattie/Reuters

With the changing of the guards in both the US and Canada, where are these two countries headed? For a hot trade war – and one made hotter by Donald Trump’s threats to take over Canada by escalating counter-threats from patriotic Canadian leaders who are locked in their own election cycle, writes GZERO Publisher Evan Solomon.