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Germany’s ruling coalition is on the brink of collapse, triggering potential political chaos in Europe’s largest economy.

It means Chancellor Olaf Scholz and his Social Democratic Party (SDP) face heading a minority government after sacking his finance minister Christian Lindner from the pro-business Free Democrats Party (FDP).

Mr Scholz made the decision after weeks of disputes among Germany’s coalition partners over ways to boost the country’s ailing economy.

Added to that, the government’s popularity has been sinking while far-right and far-left forces have been surging.

He said Mr Lindner “has broken my trust too often”, and claimed he was focused on the short-term survival of his own party. “This kind of selfishness is utterly incomprehensible,” he added.

The three other FDP ministers – for transport, justice, and education – all voluntarily left the government.

“Olaf Scholz refuses to recognise that our country needs a new economic model,” Mr Lindner said. “Olaf Scholz has showed he doesn’t have the strength to give his country a new boost.”

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Mr Lindner had rejected tax increases or changes to Germany’s strict self-imposed limits on running up debt.

Social Democrats and the Greens, who are also part of the coalition, want to see massive state investment. They had rejected proposals by the FDP to cut welfare programmes.

It’s not if, but when, the coalition collapses

The German Chancellor is a controlled man, so the uncharacteristic anger on display as he announced he had sacked his finance minister and fixed a vote of confidence for January was telling.

The fractures in Germany’s coalition government have been widening for months.

The ailing economy, dismal showing in the European parliamentary elections and rise of the far-right Alternative for Germany party (AfD) have led to growing questions about when the coalition will collapse, rather than if it will.

Germany’s general election is currently pencilled in for September 2025 but if Olaf Scholz loses the confidence vote on 15 January, then a snap election is likely to take place by the end of March.

Current polls put the party of the former Chancellor Angela Merkel, the Christian Democratic Union (CDU), in the lead followed by the AfD.

Using today’s numbers, the most likely scenario would be another coalition government potentially with the CDU, the social democrats and maybe even the Greens.

But all this is jumping ahead.

The hammer blow to the German government coalition on the day Donald Trump was re-elected is a coincidence but it’s also very bad timing.

The return of Trump raises questions around NATO, the war in Ukraine and possible trade wars in the future.

Europe now more than ever needs to be united; a task made more difficult when the leadership of its largest economic power is in crisis.

It leaves Mr Scholz relying on parliamentary majorities to pass legislation.

He plans to hold a confidence vote in his government on 15 January. The result could trigger snap elections by the end of March.

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Scholz said he would ask Friedrich Merz, leader of the conservative opposition CDU, who are far ahead in polls, for support in passing the budget and boosting military spending.

Mr Merz is due to respond to the request later on Thursday.

Across 2024, Germany’s economy is expected to shrink – or at best flatline – for the second year in a row.

The country has struggled under external shocks and home-grown problems, including red tape and a shortage of skilled labour.

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Climate-vulnerable islands storm out of COP29 negotiation room in row over funding

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Climate-vulnerable islands storm out of COP29 negotiation room in row over funding

Representatives of dozens of climate vulnerable islands and African nations have stormed out of high-stakes negotiations over a climate funding goal.

Patience is wearing thin and negotiations have boiled over at the COP29 climate talks in Azerbaijan, which were due to finish yesterday but are now well into overtime.

After two weeks of talks, the more than 190 countries gathered in the capital Baku are still trying to agree a new financial settlement to channel money to poorer countries to both curb and adapt to climate change.

Talks have now run well into overtime at COP29, but a deal now feels much more precarious.

The least developed countries like Mozambique and low-lying island nations like Samoa say their calls for a portion of the fund to be allocated to them have been ignored.

Samoa’s minister of natural resources and environment Toeolesulusulu Cedric Schuster is one of the representatives who walked out.

“We are here to negotiate but we have walked out… at the moment we don’t feel we are being heard in there,” he said on behalf of more than 40 small island and developing states, whose shorelines are being lost to rising sea levels.

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Shortly after he made a veiled threat of leaving COP29 altogether, saying: “We want nothing more than to continue to engage, but the process must be INCLUSIVE.

“If this cannot be the case, it becomes very difficult for us to continue our involvement here at COP29.”

Evans Njewa, who chairs a group of more than 40 least developed countries, said the current deal is “unacceptable for us. We need to speak to other developing countries and decide what to do.”

The last official draft on Friday pledged $250bn a year annually by 2035.

This is more than double the previous goal of $100bn set 15 years ago, but nowhere near the annual $1.3trn that experts say is needed.

Sky News understands some developed countries like the UK were this morning willing to bump up the goal to $300bn.

Developing countries are angry not just about the finance negotiations, but also on how to make progress on a pledge from last year to “transition away from fossil fuels”.

A group of oil and producing countries, spearheaded by Saudi Arabia, have tried to dilute that language, while the UK and island state are among those that have fought to keep it in.

Mr Schuster said all things being negotiated contain a “deplorable lack of substance”.

He added: “We need to see progress and follow up on the transition away from fossil fuels that we agreed last year. We have been asked to forget all about that at this COP, as though we are not in a critical decade and as though the 1.5C limit is not in peril.”

“We need to be shown the regard which our dire circumstances necessitate.”

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At least 11 killed in Israeli strikes on central Beirut, Lebanese authorities say

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At least 11 killed in Israeli strikes on central Beirut, Lebanese authorities say

At least 11 people have been killed and 63 injured in an Israeli strike on central Beirut, Lebanese authorities have said.

Lebanon‘s health ministry said the death toll could rise as emergency workers dug through the rubble looking for survivors. DNA tests are being used to identify the victims, the ministry added.

State-run National News Agency (NNA) said the attack “completely destroyed” an eight-storey residential building in the Basta neighbourhood early on Saturday.

Footage broadcast by Lebanon’s Al Jadeed station also showed at least one destroyed building and several others badly damaged around it.

The central Basta neighbourhood in Beirut, where four people were killed in an Israeli airstrike
Image:
The central Basta neighbourhood in Beirut, where four people were killed in an Israeli airstrike

Map of Lebanon and Israel

The Israeli military did not warn residents to evacuate before the attack – the fourth targeting the centre this week.

At least four bombs were dropped in the attack, security sources told Reuters news agency.

The blasts happened at about 4am (2am UK time).

A seperate drone strike in the southern port cuty of Tyre this morning killed one person and injured another, according to the NNA.

The blasts came after a day of bombardment of Beirut’s southern suburbs and Tyre. The Israeli military had issued evacuation notices prior to those strikes.

Pic: AP
Image:
Pic: AP

Israel has killed several Hezbollah leaders in air strikes on the capital’s southern suburbs.

Heavy fighting between Israel and Hezbollah is ongoing in southern Lebanon, as Israeli forces push deeper into the country since launching a major offensive in September.

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US envoy Amos Hochstein was in the region this week to try to end more than 13 months of fighting between Israel and Hezbollah, ignited last October by the war in Gaza.

Mr Hochstein indicated progress had been made after meetings in Beirut on Tuesday and Wednesday, before going to meet Israeli Prime Minister Benjamin Netanyahu and defence minister Israel Katz.

According to the Lebanese health ministry, Israel has killed more than 3,500 people in Lebanon and wounded more than 15,000.

It has displaced about 1.2 million people – a quarter of Lebanon’s population – while Israel says about 90 soldiers and nearly 50 civilians have been killed in northern Israel.

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Vladimir Putin vows to increase production of Russia’s ‘unstoppable’ missile – as NATO and Ukraine to hold talks

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Vladimir Putin vows to increase production of Russia's 'unstoppable' missile - as NATO and Ukraine to hold talks

President Vladimir Putin has said Russia will ramp up the production of a new, hypersonic ballistic missile.

In a nationally-televised speech, Mr Putin said the intermediate-range Oreshnik missile was used in an attack on Ukrainian city Dnipro in retaliation for Ukraine’s use of US and British missiles capable of striking deeper into Russian territory.

Referring to the Oreshnik, the Russian president said: “No one in the world has such weapons.

“Sooner or later other leading countries will also get them. We are aware that they are under development.”

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Putin’s warning to the West

Russia war latest: Long-awaited US air defences arrive in Ukraine

He added: “We have this system now. And this is important.”

Detailing the missile’s alleged capabilities, Mr Putin claimed it is so powerful that using several fitted with conventional warheads in one attack could be as devastating as a strike with nuclear weapons.

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General Sergei Karakayev, head of Russia’s strategic missile forces, said the Oreshnik could reach targets across Europe and be fitted with either nuclear or conventional warheads – while Mr Putin alleged Western air defence systems will not be able to stop the missiles.

Mr Putin said of the Oreshnik: “There is no countermeasure to such a missile, no means of intercepting it, in the world today. And I will emphasise once again that we will continue testing this newest system. It is necessary to establish serial production.”

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Testing the Oreshnik will happen “in combat, depending on the situation and the character of security threats created for Russia“, the president added, stating there is “a stockpile of such systems ready for use”.

NATO and Ukraine are expected to hold emergency talks on Tuesday.

Meanwhile Ukraine’s parliament cancelled a session as security was tightened following the strike on Dnipro, a central city with a population of around one million. No fatalities were reported.

EU leaders condemn Russia’s ‘heinous attacks’

Numerous EU leaders have addressed Russia’s escalation of the conflict with Poland’s Prime Minister Donald Tusk saying the war is “entering a decisive phase [and] taking on very dramatic dimensions”.

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Russia’s new missile – what does it mean?

Speaking in Kyiv, Czech foreign minister Jan Lipavsky called Moscow’s strike an “escalatory step and an attempt of the Russian dictator to scare the population of Ukraine and to scare the population of Europe”.

At a news conference, Mr Lipavsky gave his full support for delivering the additional air defence systems needed to protect Ukrainian civilians from the “heinous attacks”.

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