New German Finance Minister Joerg Kukies said on Tuesday there will be no budget freeze for this year as a result of the country's three-way coalition falling apart.

German Chancellor Olaf Scholz on Wednesday defended his decision to fire finance minister Christian Lindner, which prompted the collapse of his three-party coalition. "The decision was correct and unavoidable,

Germany’s new finance minister dismissed fears the political turmoil in Berlin will trigger a funding freeze, pledging the federal government will be fully capable of functioning in the weeks before February’s early election.