Social Democrat Lars Klingbeil to become the next Finance Minister of Germany

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Lars Klingbeil, a Democratic Social Co-Liter, will become the next Finance Minister of Germany, putting him in charge of the chains of the largest nation in Europe as he prepares to trigger hundreds of billions of euros to review his infrastructure and his armed forces.

The powerful role of Klingbeil in the next government, which will also be combined with the vice-rector’s position, was confirmed on Wednesday when his party announced that its members had approved a coalition agreement with the Center-right Christian Democrats (CDU).

This opens the way for the CDU leader Friedrich Merz To be elected the next chancellor of the country by the German Parliament next week.

Klingbeil, 47, led the Social Democrats (SPD) to its worst result since 1887 in the national elections in February, when its party ended third with 16 percent in the middle of the voter’s anger towards the previous government led by SPD headed by Chancellor Olaf Scholz.

But Klingbeil, a career politician who has gained a reputation as a sharp political operator, succeeded in diverting the result of the result and directed the party’s coalition negotiations with the CDU.

It was seen inside the SPD as a navigated navigated manner, reaching a fund of 500 million euros to invest – GermanyThe neglected infrastructure in exchange for agreeing to loosen the country’s loans rules to allow unlimited expense in defense.

He and the SPD co-leader, Saskia Esken, won seven ministries for his party, compared to 10 for CDU and his Bavarian sister, and achieved support for their campaign promises, including tax cuts for lower winners, pension protections and a temporary commitment to a minimum wage of € 15.

Although the SPD youth wing pledged to reject the agreement, proposing objections to elements, including its toughest position in migration, the party’s base approved almost 85 percent the agreement. It will be signed on Monday, with the Merz election as a chancellor that will take place the next day.

Klingbeil’s most urgent task will be to eliminate a budget by 2025 to replace the provisional promulgated as a stop after the premature collapse of the last government, as well as a budget for 2026.

He will take over the reins of the Ministry of the former Banker of Goldman Sachs Jörg Kukies and will have to make a plan to spend the 300 million euros from the infrastructure fund of 500 million euros that goes to spend on the federal level.

The background is a central plate of the nearby government’s plans to reanimate the stagnant economysuffering from the prolonged fall in its postwar history.

Klingbeil, the son of a Bundeswehr soldier, has no background in finance or economics. He studied political science at the University and, since he entered Parliament at the age of 27, has recorded for foreign policy.

But it was expected to make up for his lack of expertise around a strong team, said Jens Südekum, a professor of international economics at the Heinrich Heine University of Düsseldorf, who has acted as an informal consultant at Klingbeil.

Although Klingbeil was “obviously not a schäuble type”, a reference to the famous CDU finance minister Wolfgang Schäuble, who died in 2023 – Südekum said he would be more cautious than some observers could wait.

“He likes to be seen as the adult in the room. The type that ensures that the federal government acts responsible,” said Südekum.

Klingbeil has built a strong working relationship with Merz, with the two men who agreed last month to address each other through the informal “du”.

Marion Mühlberger, a Deutsche Bank Research political economist and political analyst, said that the markets would be focused on “the speed with which the new government increases the budget” and if it can happen before the summer break.

The SPD said that the rest of its options for the cabinet would be announced as Monday.