Uncertainty looms for Germany after Scholz coalition collapses

Chancellor Olaf Scholz -- who announced a January confidence vote, likely followed by snap elections in March -- will seek to reassure his European partners at a summit in Budapest.

Scholz said late Wednesday he would reach out to conservative opposition leader Friedrich Merz, who is leading in opinion polls, for support in passing crucial bills on the economy and defence.

The end of his fractious three-way coalition, which deprives him of a governing majority, could not have come at a worse time for Europe's biggest economy, which is set to shrink for a second year in a row.