U.S. Election Outcome and Competition with China Forces Fresh Election in Germany

Germany is headed for a fresh election after the sudden collapse of Chancellor Olaf Scholz's governing coalition, new organisations have reported.

Germany parliament is reportedly scheduled to hold a no-confidence motion in which Scholz would be voted out of power, a situation which will make President Frank-Walter Steinmeier take direct control of the administration and call for an election.

Many factors jointly triggered the collapse of Olaf Scholz's governing coalition, principal among them being inflation, intensifying trade competition with China and the U.S. presidential election outcome, according to analysts as reported by media organisations.

Germany, a maker of luxury cars, is in tough competition with China in the automobile sector, which worsened after EU voted to impose tariff upto 45% on the Chine electronic vehicles.

The U.S. presidential election outcome is of global significance as the policies of the U.S. have direct bearings on the economy of the nations across the globe. Analysts fear that the U.S. election outcome and Donald Trump’s coming to power would negatively impact German economy.

Germany has scheduled its fresh election on February 23, and the next government is expected to mobilize fund through taxes to push investment in crucial sectors.