Germany's Political Turmoil: What It Means for Europe and Scholz's Future

Germany's ruling coalition led by Chancellor Olaf Scholz has collapsed, prompting early elections on February 23, 2024. The coalition, comprising the Social Democrats, Greens, and Free Democrats, fell apart over disagreements on budgetary policy, particularly the suspension of the constitutional debt limit. With the opposition CDU/CSU leading in polls, Germany faces a period of political uncertainty and economic challenges, including high energy costs and low productivity. The next government will need to address these issues while navigating geopolitical tensions with Russia and China.