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4w 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.

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Future chancellor Friedrich Merz, on the left, with co-chairman of the Social Democratic Party (SPD) Lars Klingbeil, in Berlin on April 9, 2025
Lars Klingbeil
Co-chairman of the Germany's Social Democratic Party Lars Klingbeil

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.