German Economy Minister's Comments on Coalition Collapse

BERLIN (Reuters) – German Economy Minister Robert Habeck stated on Thursday that Chancellor Olaf Scholz was justified in firing the finance minister, marking the dissolution of the coalition government. He expressed confidence in Germany's ability to function.

Habeck criticized Christian Lindner of the fiscally conservative Free Democrats for failing to complete the essential task of budget formation, causing him to lose the respect of his fellow cabinet members. He remarked on Deutschlandfunk radio, "The chancellor's decision was logical, consistent, and necessary at this juncture."

The ruling coalition ceased to exist on Wednesday after prolonged tensions among Scholz's Social Democrats resurfaced over economic and fiscal policies, which ultimately led to the collapse and potential for a snap election, resulting in political instability in Europe’s largest economy, following Donald Trump's victory in the U.S. presidential election.

When asked about Germany's functionality post-collapse, Habeck confidently responded, "Yes, of course we are," although he acknowledged the lack of a parliamentary majority. He also clarified that he did not intend to serve as the interim finance minister.