Lars Klingbeil: The SPD Veteran Steering Germany’s Finances

BERLIN, 16 January 2026 – Lars Klingbeil occupies one of the most powerful positions in German politics, serving simultaneously as Vice Chancellor, Federal Minister of Finance, and co-leader of the Social Democratic Party (SPD). His rise to the pinnacle of power followed the SPD’s historic electoral defeat in 2025, positioning him as a key architect of Germany’s current grand coalition government under Chancellor Friedrich Merz.

From Local Politics to National Leadership

Born on 23 February 1978 in Soltau, Lower Saxony, Klingbeil’s political journey began early. The son of a Bundeswehr soldier, he engaged in student politics and was active in anti-fascist groups during his youth. He studied political science, sociology, and history at Leibniz University Hannover, graduating with a master’s degree in 2004. A formative experience came during a fellowship with the Friedrich Ebert Foundation in New York, where he witnessed the 11 September 2001 attacks firsthand—an event he credits with reshaping his views on security and defence policy.

His professional political career started in the constituency office of then-Chancellor Gerhard Schröder. He entered the Bundestag briefly in 2005 before securing a permanent seat in 2009, representing the Rotenburg I – Heidekreis constituency, which he has held through four subsequent elections.

Key Facts & Political Timeline

Navigating the SPD’s Post-Election Crisis

Klingbeil’s current prominence is inextricably linked to the SPD’s dramatic fall in the 2025 federal election, where the party achieved its worst result since 1945 with just 16.4% of the vote. In the aftermath, he swiftly positioned himself as the party’s lead negotiator for coalition talks with the victorious CDU/CSU. This culminated in the formation of a new grand coalition under CDU Chancellor Friedrich Merz, with Klingbeil securing the powerful finance portfolio and vice chancellorship for the SPD.

His leadership was formally confirmed at an extraordinary SPD party congress in June 2025, where he was re-elected as co-chair alongside Bärbel Bas. However, his support among delegates fell to 64.9%—the lowest result for an unopposed SPD chair candidate in the party’s history—reflecting internal discontent over the election defeat and his consolidation of power.

Policy Profile and Political Identity

Klingbeil is identified with the SPD’s moderate, pragmatic Seeheimer Kreis faction. A defence policy specialist, he has served on the Bundestag’s Defence Committee for years and is a strong advocate for increased military spending and modernisation, a stance influenced both by global security concerns and the presence of defence contractor Rheinmetall in his constituency.

As Finance Minister, he faces the dual challenge of funding Germany’s ambitious military rearmament—a centrepiece of the government’s *Zeitenwende* (turning point) policy—while managing economic stagnation and navigating complex EU fiscal rules. He has also been a vocal supporter of continued military and financial aid to Ukraine, placing him at odds with more Russia-sceptical voices within his own party.

Frequently Asked Questions

What are Lars Klingbeil’s main responsibilities?

As Vice Chancellor, he is the deputy to Chancellor Friedrich Merz. As Finance Minister, he oversees Germany’s federal budget, tax policy, and financial regulation, and represents Germany in international financial forums like the Eurogroup and G20. As SPD co-leader, he shares responsibility for setting the party’s strategic direction.

How did the 2025 election change his position?

Despite the SPD’s severe losses, Klingbeil emerged as the party’s most powerful figure. By leading coalition negotiations, he secured significant concessions—including seven ministries—and positioned himself in two of the government’s most influential roles. However, his authority within the SPD is contested following the poor election result.

What is his relationship with Chancellor Merz?

Analysts note they have developed a close working relationship during coalition talks. Their partnership is central to the stability of the current government, though tensions may arise between the SPD’s social welfare priorities and the CDU’s stated aims of economic liberalisation and fiscal restraint.