The decision to sack Christian Lindner has thrown Europe's largest economy into political disorder and could have larger ramifications around the continent.
Germany 's ruling coalition has collapsed after Chancellor Olaf Scholz sacked his finance minister hours after Donald Trump won the US presidential election.
"In some ways, this has been a crisis that's been building in Germany for a number of years," said Matt Fitzpatrick, professor of German and European history at Flinders University.The collapse of the three-way alliance caps months of wrangling over budget policy and Germany's economic direction."We need a government that is able to act, that has the strength to make the necessary decisions for our country," he said.
Lindner, from the pro-business Free Democrats, had been the main driver for reform of the government's economic policy. Mr Scholz also accused the minister of putting party before country, saying his "selfishness is utterly incomprehensible".Currently Germany is the second largest supporter of Ukraine after the United States, and the country now faces the possibility of being left to take on a far bigger share of the war effort.
Earlier this week, German police arrested eight suspected members of a neo-Nazi militant group who had been training in warfare for the downfall of the modern German state.Convinced that Germany is nearing collapse, the group had been training to use force to establish a new system in the country's east inspired by Nazism, according to investigators.
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