Christian Lindner is removed as Germany's Finance Minister by Chancellor Olaf Scholz, causing turmoil within the ruling coalition.

• In recent weeks, speculation about a potential breakup of the coalition has been intensifying, with the situation reaching a boiling point earlier in the week.
• The FDP's Finance Minister, Christian Lindner, presented a paper outlining his plan to revive the German economy, which contradicted the fundamental positions of the SPD and Green party.

Germany's ruling coalition may come to an end after Chancellor Olaf Scholz dismissed Finance Minister Christian Lindner on Wednesday, following months of political conflict.

The coalition between Scholz's SPD, the Greens, and Lindner's FDP has been unstable due to differences in budget and economic policy, and it is uncertain if Lindner's departure will cause the FDP to leave the coalition.

At a press conference on Wednesday evening, Scholz criticized Lindner for not prioritizing the common good and dismissed him to protect the country. Scholz announced that he would present a motion of no confidence in parliament on January 15, which could lead to earlier elections in March.

"Scholz emphasized at a press conference that anyone who joins the government must act responsibly and reliably, and cannot hide when things get tough. He added that they must be willing to make compromises for the sake of all citizens. However, Christian Lindner's current focus is on his own constituency rather than making compromises."

In recent weeks, speculation about a potential breakup of the coalition has been intensifying, with the situation reaching a boiling point earlier in the week.

The FDP's paper by Lindner, which outlined his vision to revive the German economy, was a crucial move in the series of moves made by the three parties.

JPMorgan's euro area economist, Greg Fuzesi, stated in a research note on Monday that the paper presents a serious effort to analyze Germany's problems and offer solutions. However, it opposes fundamental SPD and Green positions, making it difficult for them to accept.

The budget negotiations for 2025 are ongoing, with a funding gap of several billion euros remaining, and the deadline is set for later this month.

This is a developing story, please check back for updates.