*

Scholz's coalition collapsed last month

*

Confidence vote loss could trigger early election

*

Polls show conservatives in lead, ahead of far-right

Alternative

for Germany

(Adds Scholz statement, details)

BERLIN, Dec 11 (Reuters) - German Chancellor Olaf Scholz

sent a request to parliament on Wednesday to hold a vote of

confidence on Dec. 16, setting a path to an early federal

election next year after the collapse of his coalition.

Policymaking in Europe's biggest economy has largely ground

to a halt since Scholz's fractious coalition of Social Democrats

(SPD), Greens and neoliberal Free Democrats (FDP) imploded last

month, leaving him heading a minority government.

If, as expected, Scholz loses the confidence vote, he must

then ask the president to dissolve parliament, which would

trigger fresh elections. Scholz has agreed with the opposition

to hold the election on Feb. 23.

"In a democracy, it is the voters who determine the course

of future politics," Scholz said in a short statement to

reporters.

"In the election, they will decide how we answer the big

questions that lie before us. Let us have the confidence to

invest vigorously in our future as a strong country."

Scholz urged lawmakers to work together in the remaining

window before the elections to pass measures still on the

agenda. That includes keeping a cap on electricity prices to

help Germany's struggling industry, as well as tackling fiscal

drag and raising child benefit.

"This is about a few but very important decisions that

can't be delayed at all," Scholz said in Berlin shortly after he

submitted a request to parliament to hold a vote of confidence.

Scholz cited recent meetings with representatives at

Volkswagen and Ford, both of whom are planning sharp

cost-cutting measures.

"Everyone is warning that electricity costs must not

continue to rise," Scholz said.

Last week, French Prime Minister Michel Barnier lost a

no-confidence vote, underscoring the unusual degree of political

instability plaguing both of Europe's top powers.

Polls suggest the opposition conservatives are on track to

win the federal election, with a survey on Monday putting them

on 31%, followed by the far-right Alternative for Germany on

18%, Scholz's SPD on 17% and the Greens on 13%.

The FDP and the newly-created Sahra Wagenknecht Alliance are

both polling just under the 5% threshold to enter parliament

but analysts say voters can shift quickly as they are less loyal

than they once were.