BERLIN — Germany’s centre-left chancellor, Olaf Scholz, announced on Wednesday that he was sacking Finance Minister Christian Lindner, in a move that could undermine the ruling three-party coalition based on Mr. Lindner’s pro-business party.

Mr. Scholz announced the move at a news conference after weeks of disagreements among coalition partners over ways to improve the country’s struggling economy. He also said he would seek a vote of confidence in January. This could lead to early national elections.

“I feel obliged to take this step to prevent any harm to our country. We need an effective government with the power to make the necessary decisions for our country,” said Herr Scholz.

Mr. Lindner, a pro-business Free Democrat, has ruled out tax increases or changes to Germany’s self-imposed strict limits on debt growth.

Mr. Scholz’s Social Democrats and the environmentalist Greens, who are also part of the coalition, want to see major state investment and have rejected proposals from the Free Democrats to cut welfare programs.

It is not yet clear whether the Free Democrats will leave the governing coalition in response. Meetings between the three-party coalition early Wednesday were seen as a last-ditch effort to mend the partnership.

Mr. Scholz said Mr. Lindner “broke my trust too often. He even unilaterally canceled the budget agreement. Later, after long negotiations, we agreed on this issue. There is no trust-based basis for further cooperation. “A serious state work is not possible in this way.”

Germany’s economy is expected to shrink for the second year in a row in 2024, or at best, stagnate due to external shocks and local problems such as red tape and a lack of skilled labor.

Associated Press