BERLIN -- German President Frank-Walter Steinmeier on Friday dissolved the Bundestag, the lower house of parliament, paving the way for early federal elections.

Steinmeier announced in Berlin that the snap elections will be held on Feb 23, as previously agreed by major political parties.

This announcement came after Chancellor Olaf Scholz lost a vote of confidence on Dec 16 in the Bundestag. Scholz recommended the dissolution of the Bundestag after the confidence vote.

In November, Scholz lost the majority in the parliament after Finance Minister Christian Lindner and other ministers from the Free Democratic Party left the ruling coalition due to lasting disagreements over tax allocation, economic stimulus measures, and funding for investment.

On Friday, Steinmeier stressed that a capable government with a reliable parliamentary majority is needed during these challenging times.

He said that new elections are the appropriate course of action for the country's benefit.