Socialist Democrat Lars Klingille to become the next Minister of Finance in Germany

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Lars Klingbeil will become the Democratic Democratic Commander as Minister of Finance in Germany, which puts him in charge of the wallet strings in the largest country in Europe where it is preparing to launch hundreds of billions of euros to reform its infrastructure and armed forces.

Klingbeil’s strong role in the next government, which will also be combined with the position of Deputy Chancellor, was confirmed on Wednesday, when his party announced that its members had agreed to a deal with an alliance with Christian Democrats in the center (CDU).

This paves the way for the CDU leader Friedrich Mirz To be elected as a consultant in the country next to 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 his party ranked third with 16 percent amid the deep anger of the voters towards the previous government led by SPD headed by Counselor Olaf Schools.

But Klingbeil, a career politician who gained a shrewd political operator, managed to transform responsibility for the result and led the party’s coalition negotiations with CDU.

It was seen within the Democratic Democratic Party as caution that these talks were transferred, as he obtained a fund worth 500 billion euros to invest in it. GermanyThe neglected infrastructure in exchange for agreeing to reduce the strict borrowing rules in the country to enable unlimited defense spending.

He and the SPD commander, Saskia Iskin, secured seven ministries of their party, compared to 10 for CDU and its Bavarian brother party, and received support for their campaign pledges, including the tax cuts of low owners, the protection of pensions and the author’s commitment to a minimum wage of 15 euros.

Although the SPD youth pavilion pledged to reject the deal, lifting objections to elements, including its strict position on immigration, agreed to the party’s almost 85 percent agreement. He will be signed on Monday, with Mirz’s election as a consultant the next day.

The most urgent task for Klingbeil will be a budget for 2025 to replace the temporary tasks that have been enacted as a stop after the early collapse of the last government, as well as a budget for 2026.

The ministry will take over the former Goldman Sachs banker Juerg Cookies, and will need to develop a plan to spend 300 billion euros from the infrastructure fund of 500 billion euros, which has been allocated to spending at the federal level.

The fund is a major board for the upcoming government plans to revive the recession economyWho suffers from the lengthy recession in its history after the war.

Klingbeil, son of Bundeswehr soldier, has no background in financing or economy. He studied political science at the university, and since entering Parliament for the first time at the age of 27, it has been attracted to foreign policy.

Jeans Sudkum, a professor of international economics at Heinrich Hein University of Heinrich Hine University in Dusseldorf, who worked as an informal consultant for Klingbeil, said he was expected to compensate for his lack of experience through his surroundings with a strong team.

While Klingbeil was “clearly not a kind of Schäuble” – referring to the famous Minister of Finance in Germany Wolfgang Shapel, who died in 2023 – Südekum said he would be more wise than some observers expected.

“He loves to be seen as an exaggeration in the room. The man who makes sure that the federal government is acting responsibly,” said Südekum.

Klingbeil built a strong business relationship with Merz, as the two men agreed last month to treat each other using the unofficial German “du”.

Marion Mulburger, economist and political analyst at Deutsche Bank Research, said the markets will focus on “how quickly the new government provides budget” and whether it could pass before the summer vacation.

SPD said that the rest of its choices in the Council of Ministers will be announced at the latest on Monday.