Germany's Chancellor Olaf Scholz has lost a vote of no confidence in parliament on Monday, in a move that will clear the way for early elections next year.
The Bundestag vote, which Mr Scholz had expected to lose, allows President Frank-Walter Steinmeier to dissolve the legislature and formally order an election, which is expected on February 23.
Out of the Bundestag deputies, 394 voted against Mr Scholz while only 207 expressed confidence in the chancellor, with 116 abstentions. The confidence vote was needed because post-World War II Germany’s constitution doesn’t allow the Bundestag to dissolve itself.
Mr Scholz, of the Social Democrats, led a three-party coalition from 2021 until it collapsed in early November, when he fired finance minister Christian Lindner, head of the Free Democrats, losing his majority in the lower house of parliament in the process.
His party lags badly in the polls behind conservative opposition leader Friedrich Merz of the Christian Democratic Union, the party of former chancellor Angela Merkel.
The political turbulence comes as Germany faces political and economic challenges, including high energy prices. Berlin also faces major geopolitical risk as it confronts Russia over the Ukraine war and as US president-elect Donald Trump's looming return heightens uncertainty over future Nato and trade ties.
In his push for re-election, Mr Scholz called for massive new spending on infrastructure and defence. “It’s high time to invest forcefully into our country,” he told lawmakers ahead of the vote. “We must turn the switch and this means now.”
In the parliamentary debate, Mr Merz lashed out at Mr Scholz, saying “you are leaving the country in one of the biggest economic crises of the postwar period.”
With campaigning just getting under way, the conservative CDU/CSU alliance under Mr Merz leads with support at around 31 per cent, the far-right Alternative for Germany is second with 19.8 per cent and the SPD third at 17 per cent, polls show.
The Greens are fourth with 11.2 per cent and the BSW, a new far-left party founded in January, fifth at 7.5 per cent. Mr Lindner’s FDP remains in danger of missing the 5 per cent threshold for getting into parliament with 4.9 per cent.
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French business
France has organised a delegation of leading businesses to travel to Syria. The group was led by French shipping giant CMA CGM, which struck a 30-year contract in May with the Syrian government to develop and run Latakia port. Also present were water and waste management company Suez, defence multinational Thales, and Ellipse Group, which is currently looking into rehabilitating Syrian hospitals.
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Tips for newlyweds to better manage finances
All couples are unique and have to create a financial blueprint that is most suitable for their relationship, says Vijay Valecha, chief investment officer at Century Financial. He offers his top five tips for couples to better manage their finances.
Discuss your assets and debts: When married, it’s important to understand each other’s personal financial situation. It’s necessary to know upfront what each party brings to the table, as debts and assets affect spending habits and joint loan qualifications. Discussing all aspects of their finances as a couple prevents anyone from being blindsided later.
Decide on the financial/saving goals: Spouses should independently list their top goals and share their lists with one another to shape a joint plan. Writing down clear goals will help them determine how much to save each month, how much to put aside for short-term goals, and how they will reach their long-term financial goals.
Set a budget: A budget can keep the couple be mindful of their income and expenses. With a monthly budget, couples will know exactly how much they can spend in a category each month, how much they have to work with and what spending areas need to be evaluated.
Decide who manages what: When it comes to handling finances, it’s a good idea to decide who manages what. For example, one person might take on the day-to-day bills, while the other tackles long-term investments and retirement plans.
Money date nights: Talking about money should be a healthy, ongoing conversation and couples should not wait for something to go wrong. They should set time aside every month to talk about future financial decisions and see the progress they’ve made together towards accomplishing their goals.
