Lars Klingbeil, the chairman of Germany’s Social Democratic Party (SPD), has been appointed as the country’s next finance minister in the forthcoming centrist coalition government, the SPD announced. He will also assume the role of vice chancellor.
“The committee has entrusted Lars Klingbeil with the vice-chancellorship and appointed him as federal finance minister for the new government,” stated Matthias Miersch, SPD’s general secretary, during a press conference on Wednesday, with translations provided by Finance Newso.
Klingbeil will be responsible for establishing the SPD’s remaining component of the government, which is set to be finalized by early next week. His appointment follows a vote by SPD members in favor of joining the coalition agreement with the center-right Christian Democratic Union (CDU) and its sister party, the Christian Social Union (CSU).
The 47-year-old Klingbeil, a longstanding member of the SPD, lacks significant experience in finance. However, he has held leadership positions within the party since 2021, including his recent elevation as chair of the SPD parliamentary faction in early 2025. Klingbeil previously served as the party’s general secretary for several years.
He began his political journey while studying political science, sociology, and history at the University of Hannover, subsequently working in constituency offices for parliamentary members, including former Chancellor Gerhard Schröder. Klingbeil was also a deputy leader of the youth wing of the SPD and engaged in various regional political positions.
Klingbeil is associated with the more conservative faction of the SPD and has publicly advocated for an increase in the minimum wage and reforms to Germany’s pension system. He has shown a willingness to consider higher taxes and has voiced support for both military enhancement and infrastructure modernization, while criticizing the tariff policies under former U.S. President Donald Trump.
Outside of his political career, Klingbeil is known as an enthusiastic guitarist, having played in rock bands for many years. He also serves on the advisory board of FC Bayern Munich, a club he has long supported.
The incoming government has already identified several key cabinet members, including Katherina Reiche as the economy minister and Johann Wadephul as the foreign minister, both representing the CDU in the new administration.
The CDU-CSU alliance, which secured the most votes in Germany’s federal election held in February, has positioned CDU leader Friedrich Merz as the next chancellor. He is expected to officially take office in the coming week, following a vote.
These elections were held earlier than scheduled due to the collapse of the previous government amid disagreements over budget and economic policies.
The new coalition will face significant challenges, including a waning economy, domestic infrastructure concerns, trade tensions related to U.S. tariffs, and mounting calls for European allies to bolster military capabilities.
Even before formalizing their coalition agreement, the CDU-CSU and SPD initiated changes to Germany’s established debt regulations and launched a 500 billion euro ($569 billion) infrastructure and climate fund.
As finance minister, Klingbeil will play a pivotal role in the implementation of these fiscal initiatives, representing a significant policy shift for Germany. While this development is generally perceived positively, economists caution that the actual impact will depend on how these changes are executed.
