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Germany's Scholz has lost a confidence vote. Here's what comes next

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Europe's largest economy and normally a pillar of stability is facing snap elections next year after Chancellor Olaf Scholz lost a vote of confidence.
German Chancellor Olaf Scholz has lost a confidence vote in the Bundestag, which was strategically initiated by his own coalition to facilitate the passage of a crucial €60 billion budget reallocation. This move was necessary after a constitutional court ruling invalidated the government's previous plan to redirect unused emergency funds from the COVID-19 crisis to climate and modernization projects. The vote, which Scholz lost with 219 votes in favor and 311 against, was not about his leadership but was a procedural step to enable the government to declare an emergency situation. This declaration would allow them to bypass the debt brake rule, which limits the federal deficit to 0.35% of GDP, and reallocate the funds. Following this, Scholz's government plans to present a supplementary budget to parliament, aiming to secure the necessary funds for critical investments in climate protection, economic modernization, and support for Ukraine.

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