Scholz defends 'unavoidable' dismissal of finance minister

German Chancellor Olaf Scholz on Wednesday defended his decision to fire finance minister Christian Lindner last week, prompting the collapse of his three-party coalition and early elections, reported dpa.

"The decision was correct and unavoidable," said Scholz as he gave a government statement in parliament.

Scholz dismissed Lindner on November 6 following months of wrangling over the proposed budget for 2025.

Lindner's Free Democrats (FDP) subsequently withdrew from the coalition, leaving the chancellor without a majority in the Bundestag, or lower house.

Scholz's Social Democrats (SPD) and the Greens - his only remaining coalition partner - reached an agreement with the opposition conservatives on Tuesday on a timetable to hold early elections.

In his speech, the chancellor said he was "very happy" about the deal and confirmed he would table a vote of confidence in the Bundestag on December 16, paving the way for elections on February 23 instead of September 28 as regularly scheduled.

Scholz defends government, calls for unity

In his first public comments since the new date was agreed, Scholz called on lawmakers from Germany's main political parties to unite to pass a number of crucial bills before the election.

"Let us act united. It would be good for our country," he said, adding: "The path of compromise remains the only right path."

Scholz warned that investing in Germany's security should not come at the expense of spending on pensions, health and care.

Forcing voters to choose between the two pillars would be a "stimulus programme for populists and extremists," he said.

Among the proposals he named were reforms to income tax bands in the wake of inflation, the government's initiative to stimulate economic growth and an increase in the child benefit allowance.

He also highlighted the importance of a bill enshrining protections for the country's top constitutional court.

In addition, the chancellor said he had a "good conversation" with US President-elect Donald Trump and further defended his government's support for Ukraine against Russia, while again reiterating his refusal to arm Kiev with long-distance weapons.

"I will not change my position regarding the delivery of a cruise missile from Germany," Scholz said.

Opposition leader Merz slams Scholz: 'Dividing the country'

Scholz has a mountain to climb if he is to retain his position after February's election, with his SPD polling on 15% and the Greens, who are likely to pick Economy Minister Robert Habeck as their candidate for chancellor later this week, currently on 10%.

The opposition Christian Democratic Union (CDU) and its Bavarian sister party, the Christian Social Union (CSU), have a clear advantage in the polls, with 32% of voters signalling support for the centre-right bloc led by Friedrich Merz in the latest survey.

Responding to Scholz's speech, Merz slammed Scholz's leadership in a sharp personal attack on the chancellor.

"You are dividing the country," said the 69-year-old. "You are the one responsible for these controversies and for this division in Germany. You simply cannot govern a country like this."

Merz - widely seen as the favourite to succeed Scholz - called his political manoeuvres "unacceptable" and further mocked the chancellor as "lightweight."

The CDU/CSU group in the Bundestag would consider supporting some existing bills, Merz said, but it will not allow itself to be treated as a "substitute" for the departed FDP.

Looking ahead to the future German government, Merz again ruled out any co-operation with the far-right Alternative for Germany (AfD).