German Chancellor Olaf Scholz loses confidence vote, triggering early elections

Germany is facing political turmoil as it struggles to revive its weak economy, impacted by high energy prices and tough competition from China.

Europe's biggest economy is now on the path to elections on 23 February 2025. Source: EPA / Hannibal Hanschke

German Chancellor Olaf Scholz lost a confidence vote on Monday, spelling the effective end of his troubled government and putting Europe's biggest economy on the path to elections early next year.

The bigger picture: Rising energy prices, high inflation, a decrease in exports and the ailing car industry, struggling with increasing Chinese competition and the transition to electric vehicles, have all contributed to stagnating economic growth.

The key quote: Addressing parliament ahead of the vote on Monday, Scholz said there were important political issues facing Germany, including long-overdue investments in its struggling economy, that required the public's input.

"This decision is so fundamental that it must be taken by the sovereign itself, by the voters." — German Chancellor Olaf Scholz.

Chairman of the Christian Social Union Alexander Dobrindt (left) and leader of Germany's Christian Democratic Union Friedrich Merz speak to the media after the no-confidence vote. Source: AFP / Ralf Hirschberger / AFP via Getty Images

What else to know: Friedrich Merz, the top candidate of the conservative Christian Democratic Union and the Christian Social Union alliance who is seen as most likely to replace Scholz, accused the chancellor of leaving behind one of the country's greatest economic crises in Germany's post-war history.

What happens next: Now that MPs have withdrawn their confidence in Scholz's government, he will immediately ask President Frank-Walter Steinmeier to dissolve parliament and call for early elections, seven months ahead of schedule.

Read more: The fall of the Berlin Wall 'felt impossible' to Australians who were there 35 years ago