What just happened in Berlin?

The chancellor, Olaf Scholz of the SPD, sacked his finance minister, Christian Lindner, the FDP leader, on Wednesday night after months of disagreement over how to deal with the gaping hole in Germany’s budget.

Scholz wants to boost spending by taking on more debt, citing the impact of Russia’s invasion of Ukraine. Lindner opposed this and insisted instead on an array of tax and spending cuts that the SPD and Greens said were impossible to accept as they would torpedo much of the government’s programme. At stake: welfare payments, climate emergency measures and support for Ukraine (Germany is its second biggest backer after the US).

Whether Scholz called Lindner’s bluff by sacking him before he walked is up for discussion. Both men have vented their anger towards each other, with Scholz accusing Lindner of being “small-minded” and “egotistical” and failing to see the bigger picture – namely huge geopolitical challenges. Lindner accuses Scholz of “trivialising” the concerns of ordinary Germans.