German Chancellor Angela Merkel may have given the finance ministry to her Social Democrat (SPD) coalition partners but Berlin is not putting its finances at risk, a former lawmaker told CNBC Tuesday.
Michael Fuchs, a former member of parliament with Merkel's Christian Democratic Party (CDU), said he is optimistic that Germany's finances will continue to be run efficiently.
"In the coalition contract, which we do have at the moment, it's very clearly stipulated that there will be no new debt at all," Fuchs said. "Like we did in the last four years, we've run the budget result without any debt and we want to continue to do so.
"So I am quite positive there will not be too much change."
The SPD's Olaf Scholz has been tipped as Germany's next finance minister, following last week's coalition agreement between the CDU and SPD.
The deal saw Merkel give three of the most influential ministries to the SPD, including the helm of the country's finances — raising doubts whether Germany would lose its fiscal discipline.
In 2017, Germany registered the highest current account surplus in the world, according to data from the Ifo economic institute. Institutions such as the International Monetary Fund (IMF) and the European Commission have urged Germany to invest more and boost economic activity.
According to Fuchs, the new coalition government is unlikely to change its fiscal policy. However, a new finance minister represents a change in tone towards the euro zone.