The fragile three-way coalition in the Bundestag has shattered. Olaf Scholz, the chancellor, has lost a vote of confidence and Germany is hurtling towards a snap federal election on Feb 23 – more than six months ahead of schedule.

Germany’s economy shrank for a second consecutive year in 2024 and is unlikely to grow much in 2025, laying bare the challenge for the country’s new government once snap elections are held in February.

The German economy has shrunk for the second year in a row, posing a threat to Chancellor Olaf Scholz ahead of next month’s snap election.