Lars Klingbeil, Germany’s incoming finance minister, is set to reshape fiscal policy with a sharp focus on defense spending, marking a shift from austerity as Berlin boosts military investment amid global tensions.
Lars Klingbeil, Germany’s incoming vice chancellor and finance minister, is set to lead a major shift in the country’s fiscal policy, especially in defense spending. Despite his background being more rooted in defense than finance, the 47-year-old Social Democrat will now manage public finances and oversee a significant boost in military investment, a move triggered by mounting pressure from the U.S. and the ongoing war in Ukraine.
Germany’s parliament has already approved a dramatic increase in spending, including a €500 billion infrastructure fund, marking a departure from years of fiscal restraint. Klingbeil, a long-time critic of Germany’s strict borrowing rules (the "debt brake"), is replacing Christian Lindner, a pro-austerity figure whose position on the debt brake helped collapse the previous coalition.
The SPD formally endorsed a new conservative-led coalition under Friedrich Merz this week, paving the way for Klingbeil’s nomination next Monday. While defense minister Boris Pistorius will retain his role, Klingbeil will take on the task of drafting the delayed 2025 federal budget following the February snap election, where the SPD placed third.
A seasoned lawmaker and former chair of the SPD youth wing, Klingbeil is seen as a potential future chancellor. He’s known for strong communication skills and modernizing efforts within his party, focusing on climate, inequality, and youth representation. As the son of a soldier and a longtime member of the Bundestag defense committee, he brings firsthand knowledge of military underfunding.
In addition to steering financial policy, Klingbeil must also counter the rising popularity of the far-right AfD, which he views as a serious threat to democracy.
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Landslides and flash floods caused by days of heavy monsoon rain have killed at least 22 people in India’s northeast, officials said.
Cambodian Prime Minister Hun Manet said Saturday that the border conflict with Thailand “must be resolved with patience and through legal and diplomatic channels.”
Landslides and flash floods caused by days of heavy monsoon rain have killed at least 22 people in India’s northeast, officials said.
Cambodian Prime Minister Hun Manet said Saturday that the border conflict with Thailand “must be resolved with patience and through legal and diplomatic channels.”
Iran’s Foreign Minister Abbas Araqchi spoke by phone with IAEA Director Rafael Mariano Grossi, warning that any political actions against Iran at next week’s Board of Governors meeting would have consequences.
Türkiye expressed deep sorrow Saturday over the devastating floods in Nigeria’s Niger State, which have claimed over 150 lives.
A bridge collapse in the Vygonichsky district of Russia’s Bryansk region, near the Ukrainian border, caused a train derailment and a traffic accident early Sunday, killing at least seven people and leaving 30 injured, according to emergency services.
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