Chancellor Angela Merkel has decided to fire Germany's domestic intelligence chief as she thinks he has meddled in day-to-day politics by questioning her condemnation of far-right protests, Die Welt reported, pushing her cabinet into another clash over migration toward a showdown, and potentially into yet another government crisis.

Because if Merkel does pull the trigger and fires Maassen, that would disavow Seehofer, who heads Bavaria's ruling CSU party and has been the main domestic critic of her decision to keep Germany's borders open.

Still, as Bloomberg's Richard Jones notes, Merkel's problems with the CSU are well-known by investors.

“This current episode could very well be the latest evidence of her resilience.” On Tuesday, Merkel will convene coalition leaders to try to resolve the standoff.

Merkel had said on Friday that her coalition government would survive the row over Maassen.

Categories: ZH