Germany’s Social Democratic Party (SPD) finalised its ministerial list for the incoming grand coalition government on Monday, blending experienced figures with fresh faces as it assumes the junior partner role in Friedrich Merz’s conservative-led administration, according to Politico.
The lineup, revealed ahead of Merz’s expected election as chancellor on 6 May, underscores the SPD’s bid to retain influence over key policy areas while navigating a fragile political landscape. Lars Klingbeil, SPD co-leader and a close ally of outgoing Chancellor Olaf Scholz, will serve as Finance Minister and Vice Chancellor, positioning him to steer budget reforms focused on defence and industrial modernisation.
Boris Pistorius retains his role as Defence Minister, a move ensuring continuity amid Germany’s historic military overhaul. Pistorius, among the nation’s most popular politicians, will oversee a €40 billion defence upgrade enabled by relaxed debt rules, critical for meeting NATO’s 2% spending target.
Bärbel Bas, transitioning from Bundestag president to Minister of Labour and Social Affairs, reinforces the SPD’s traditional emphasis on welfare policies. Meanwhile, Stefanie Hubig, Rhineland-Palatinate’s education minister, takes charge of legal affairs, signalling regional balance in the cabinet.
The SPD’s selections reveal tactical concessions to counter opposition pressures. Carsten Schneider, former commissioner for eastern Germany, assumes the Environment Ministry, a nod to addressing Green Party critiques while prioritising industrial pragmatism in energy transitions. Meanwhile, Reem Alabali-Radovan, the integration commissioner, shifts to Economic Cooperation and Development, aligning with Merz’s tougher migration stance.
Notably, Verena Hubertz, a 37-year-old tech entrepreneur and SPD deputy leader, will lead the Housing Ministry. Her background as co-founder of the Kitchen Stories startup and advocacy for affordable housing positions her as a bridge between innovation and social policy.
The coalition, securing a modest 328-seat Bundestag majority, faces immediate tests: reviving Germany’s stagnant economy, managing Trump-led trade disruptions, and countering the AfD’s surging popularity. Merz’s agenda includes tightening citizenship rules, boosting defence spending, and modernising infrastructure, priorities requiring delicate coordination with SPD progressives.
However, internal tensions persist, particularly over migration and social welfare cuts, which could strain the coalition’s cohesion.
