The Social Democratic Party’s Lars Klingbeil has been tapped to become Germany’s next finance minister in the incoming centrist coalition government, replacing Joerg Kukies, the party announced.

Klingbeil has also been selected to assume the vice chancellor position.

“The committee today firstly tasked Lars Klingbeil with taking on the vice-chancellorship and to enter the new government as federal finance minister,” Matthias Miersch, the SPD’s general secretary, said during a press conference on Wednesday, according to a CNBC translation.

Klingbeil would also be in charge of setting up the SPD’s remaining team to serve under the new coalition by early next week, Miersch said. He was speaking after SPD members voted in favor of the coalition agreement between their party and Germany’s center right party, the Christian Democratic Union, alongside its sister party, the Christian Social Union.

The 47-year-old SPD veteran Klingbeil does not have extensive experience in the fiscal domain, but has served as one of the party’s two co-leaders since 2021 and was elected as chief of the SPD parliamentary faction in early 2025. He was previously the SPD’s general secretary for several years.

During and after his time as a political science, sociology and history student at the University of Hannover, Klingbeil worked in constituency offices for members of parliament, including then-chancellor Gerhard Schroeder. He was also a deputy leader of the SPD’s youth organization, and took on various regional political roles.

Klingbeil is widely regarded as part of the more conservative wing of the SPD, calling for an increased minimum wage and reforms to Germany’s pension policy in recent interviews, as well as remaining open to the option of higher taxes. He has also been supportive of strengthening the military and of infrastructure modernization, while criticizing U.S. President Donald Trump’s tariff policy.

Beyond politics, Klingbeil has been a reportedly avid guitar player in rock bands for years and sits on the advisory board of FC Bayern Munich — a club he has long supported.

Other key ministers that are set to be part of the incoming government have also already been selected. This includes Katherina Reiche as economy minister and Johann Wadephul as foreign minister, both of whom are set to represent the CDU in the new administration.

The CDU-CSU union secured the largest share of votes in Germany’s federal election in February, making CDU leader Friedrich Merz the designated chancellor. He is set to officially assume this role early next week, pending a vote.

Germany’s elections took place several months earlier than originally planned after the previous ruling alliance fell apart over tensions around the country’s budget and economic policies.

The incoming ruling coalition will face several large tasks as Germany grapples with a stagnating economy, domestic infrastructural issues, trade tensions linked to U.S. tariff policies and pressure for European allies to expand their military capabilities.

Before even finalizing a coalition agreement, the CDU-CSU and SPD led on changes to Germany’s long-standing debt rules and the creation of a 500 billion euro ($569 billion) infrastructure and climate fund.

As finance minister, Klingbeil is set to take a leading position on the implementation of these fiscal moves, which marked a major policy U-turn for Germany. While the development has widely been received as a positive for the country, economists have suggested that much will also depend on how the changes play out in reality.