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.

Germany's Social Democrats will announce on Wednesday whether members have backed a treaty for a coalition with the CDU/CSU conservatives, potentially clearing the last hurdle for the formation of a new government in Europe's largest economy.

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.