Germany's three-party ruling coalition has collapsed after failing to agree on economic and fiscal policies, paving the way for a snap election by the end of March.

In a news conference on Wednesday, Chancellor Olaf Scholz said he fired Finance Minister Christian Lindner, who leads a party in the coalition. Scholz criticized Lindner for putting the interests of his party before those of the country.

The move followed deepening rifts within the coalition of Scholz's center-left Social Democratic Party, Lindner's pro-market Free Democrats and the environmentalist Greens.

Scholz said he would take steps to allow for a parliamentary election by the end of March.
Germany is Europe's largest economy and the second-largest contributor of aid to Ukraine in its fight against Russia.

The collapse of Germany's ruling coalition comes at a time when Europe is faced with questions about how to build relations with Donald Trump following his victory in the US presidential election.