Olaf Scholz, Germany's least popular chancellor on record, is facing growing calls within his Social Democrats (SPD) to step aside and let his Defence Minister Boris Pistorius instead lead the centre-left party into next year's federal election.

German conservative leader Friedrich Merz launched his election bid with a stinging attack on Chancellor Olaf Scholz, calling the Social Democrat a “lightweight” and accusing him of sowing division in Europe’s biggest economy.

Germany’s government shakeup means eight pieces of legislation considered crucial for the energy transition are stuck in limbo until a new administration is formed next year, with the possibility they may not be enacted at all.