German Chancellor Olaf Scholz sacked his Finance Minister Christian Lindner after weeks of wrangling over the economic direction of the government leaving the future of the coalition running the country in doubt.
Newspaper Bild had earlier reported that Lindner had recommended early elections as a solution to the budget impasse, a proposal Scholz had rejected.
It was unclear if Lindner's dismissal would lead also to the departure of the Free Democrats (FDP) from the coalition.
Without the FDP, Scholz could continue to head a minority government, either alone with his Social Democrats or with the Greens, the second largest party, relying on cobbled together ad hoc parliamentary majorities.
The turmoil in the country comes as Europe prepares for a second Trump presidency in the new year.
Scholz could attempt to continue ruling in a minority government.
However he has no majority to pass a budget meaning new elections are likely.
More to follow
