Germany's Social Democrats (SPD) backed a coalition deal with the CDU/CSU conservatives on Wednesday in the final step to forming a government in Europe's largest economy, and nominated their leader Lars Klingbeil as finance minister.

Members of Germany's Social Democratic Party (SPD) have overwhelmingly approved a coalition agreement with the conservative Christian Democrats (CDU/CSU), paving the way for a new government.

Germany’s Social Democrats voted in favor of the coalition deal with Friedrich Merz’s conservatives, clearing the way for the leader of the conservative bloc to be confirmed as chancellor next week.