Lars Klingbeil, a 47-year-old Social Democratic Party (SPD) veteran, has been appointed as Germany’s next vice chancellor and finance minister in the incoming centrist coalition government. He will replace Joerg Kukies, who has only held the position since November.
Klingbeil does not have extensive experience in the fiscal domain, but his background in politics, particularly in serving as one of the party’s two co-leaders since 2021 and chief of the SPD parliamentary faction in early 2025, will be beneficial. He was also previously the SPD’s general secretary for several years.
As finance minister, Klingbeil is set to oversee setting up a new team for the SPD and implementing key policy changes, including altering Germany’s debt rules and creating a $569 billion infrastructure and climate fund. These moves have been widely welcomed by economists, but its impact on reality remains to be seen.
Klingbeil’s appointment marks a shift towards a more centrist government in Germany, which will face several significant challenges, including a stagnating economy, domestic infrastructural issues, trade tensions linked to U.S. tariff policies, and pressure for European allies to expand their military capabilities.
Source: https://www.cnbc.com/2025/04/30/lars-klingbeil-to-become-german-vice-chancellor-finance-minister-sdp.html