Germany’s Social Democrats (SPD) has backed a coalition deal with the conservatives, paving the way for election winner Friedrich Merz to become chancellor on May 6. The party nominated its leader Lars Klingbeil as finance minister in a move aimed at reviving Europe’s largest economy.
In a vote that ended just before midnight, 84% of SPD members who took part expressed support for the coalition treaty, while 56% of around 360,000 members participated. Despite securing key positions, the SPD achieved its historic low result in the election with just 16.4% of the vote.
The conservative-led government aims to form a stable administration amidst a weak economy, rising unemployment, and global turmoil sparked by US President Donald Trump’s import tariffs. The coalition will focus on investing heavily in infrastructure, raising the minimum wage, and extending rent caps.
However, the SPD’s concessions on migration rules and unemployment benefits have drawn criticism from its youth wing, Jusos. Despite these reservations, Klingbeil is seen as a rising star within the party, known for his charismatic personality and strong communication skills.
The coalition aims to present a draft budget for 2025 and tackle Germany’s economic challenges, with Klingbeil taking the lead on this task. The SPD’s historic low result has been offset by its secured key gains in the coalition deal, paving the way for Merz’s chancellorship.
Source: https://www.reuters.com/world/europe/germanys-spd-decide-backing-coalition-with-merz-2025-04-29