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2mo ago

Lars Klingbeil Named Germany’s Vice Chancellor and Finance Minister in New Coalition Government

The SPD leader will oversee sweeping fiscal reforms under Chancellor-designate Friedrich Merz’s grand coalition, set to be sworn in on May 6.

SPD Party leaders Saskia Esken and Lars Klingbeil attend a so-called Social Democratic Party (SPD) dialogue conference with the party leadership as part of the SPD members' vote on the coalition agreement between the SPD, CDU and CSU, in Baunatal, Germany, April 26, 2025. REUTERS/Leon Kuegeler/File Photo
Co-leader of the Social Democratic party (SPD) Lars Klingbeil looks on during a press conference with Germany's chancellor-in-waiting and leader of the Christian Democratic Union party (CDU) Friedrich Merz, Christian Social Union (CSU) leader and Bavarian Premier Markus Soeder, after reaching an agreement on their coalition government in Berlin, Germany, April 9, 2025. REUTERS/Annegret Hilse/File Photo
SPD Party leader Lars Klingbeil adresses a so-called Social Democratic Party (SPD) dialogue conference with the party leadership as part of the SPD members' vote on the coalition agreement between the SPD, CDU and CSU, in Baunatal, Germany, April 26, 2025. REUTERS/Leon Kuegeler/File Photo
Germany's chancellor-in-waiting and leader of the Christian Democratic Union party (CDU) Friedrich Merz and co-leader of the Social Democratic party (SPD) Lars Klingbeil attend a press conference after reaching an agreement on their coalition government in Berlin, Germany, April 9, 2025. REUTERS/Annegret Hilse/File Photo

Overview

  • Lars Klingbeil, SPD leader, has been officially designated as Germany’s vice chancellor and finance minister following a unanimous vote by the SPD executive committee.
  • The coalition agreement between the SPD and the CDU/CSU bloc was approved by 84% of SPD members, finalizing the partnership ahead of the May 6 inauguration.
  • Klingbeil will lead efforts to implement significant fiscal changes, including adjustments to Germany’s debt rules and the creation of a €500 billion infrastructure and climate fund.
  • Despite limited direct fiscal experience, Klingbeil brings years of leadership within the SPD, having served as co-leader since 2021 and parliamentary faction chief earlier this year.
  • The new government faces challenges such as economic stagnation, infrastructure modernization, and heightened security demands, positioning fiscal policy as a central focus.