The chairman of Federal SPD Lars Klingbeil speaks in Tria.
Photo by Harald Tittel/Picture Alliance by Getty Images
Social Democrat Lars Klingbale has been tapped to replace Jerle Kukeys to become Germany’s next finance minister for the upcoming centralized coalition government, the party announced.
Klingbeil has also been selected to assume the position of Deputy Prime Minister.
“Today, the committee has first appointed Lars Klingvail to be Vice-Chancellor and enter the new government as federal finance minister,” SPD general secretary Mattias Meiersh said at a press conference on Wednesday, according to a CNBC translation.
Klingbeil will also be responsible for establishing the remaining SPD teams to serve under the new coalition by early next week, Miersch said. He spoke after SPD members voted in favor of a coalition agreement between the party and the German right-wing party, the Christian Social Union, and then collaborated with the sister party, the Christian Social Union.
Klingvale, a 47-year-old SPD veteran, has no extensive experience in the fiscal sphere, but has been one of the party’s two co-leaders since 2021 and was elected SPD Congressional Prime Minister in early 2025. He previously was SPD general secretary for several years.
His time as a student of political science, sociology and history at Hanover University, and later, Klingbale worked in the constituency office for members of Congress, including then Prime Minister Gerhard Schroeder. He was also a deputy leader of the youth organizations of SPD and took on political roles in various regions.
Klingvale is widely regarded as part of the SPD’s more conservative wing, calling for an increase in minimum wage and reforms to Germany’s pension policy in a recent interview, and has called for higher tax options. He has also supported strengthening military and infrastructure modernization, criticizing US President Donald Trump’s tariff policies.
Beyond politics, Klingbale has been a longtime rock band avid guitar player and has been on the advisory board of FC Bayern Munich.
Other major ministers set up to be part of the next government have also been selected. This includes Katherina Reiche as Minister of Economics and Johann Wadephuph as Minister of Foreign Affairs.
The CDU-CSU Union secured the largest vote in the German federal election in February, making CDU leader Friedrich Merz the designated prime minister. He is expected to formally take on the role early next week.
The German election took place several months before the previous ruling alliance was originally planned after tensions over budget and economic policy across the country.
The incoming dominance coalition faces some major tasks as Germany tackles trade tensions and pressures to expand military capabilities related to its stagnant economy, domestic infrastructure issues, and US tariff policy.
CDU-CSU and SPD led the changes to Germany’s longstanding debt rules and the creation of the 500 billion euro ($56.9 billion) infrastructure and climate fund before finalizing the Union Agreement.
As Minister of Finance, Klingvale is set to gain key position in implementing these financial moves, indicating Germany’s major policy U-turns. While development has been widely accepted as positive for the country, economists suggest that many also depend on how changes actually occur.
