The current mayor of Hamburg has spoken out in favour of a balanced budget and sound finances for Germany in his new role of helping to shape Berlin’s policies in Europe.
His comments are seen as the clearest sign yet that Germany plans to soften its strict fiscal discipline in the bloc under his predecessor Wolfgang Schauble, seen by many as the symbol of austerity in Europe.
“Mistakes were surely made in the past.”
He said that the “Social Democrats want solid finances” and additional investment “would depend on additional growth and the taxed generated from that”.
Mr Scholz’s comments are in line with other from the Social Democrats who have criticised the harsh treatment of other eurozone economies, particularly Greece and Portugal.
He sums up his own negotiating style by saying: “I can only distribute what I have earned.”
The EU has forced these countries to enforce budget cuts to reduce their debts.
Germany’s current finance minister Wolfgang Schauble has become known for his tough stance towards Greece as it struggled to stay in the Euro.
Mr Schauble made bailout aid for southern countries like Greece and Portugal conditional on highly unpopular spending cuts.
It is hoped that the coalition deal should end the political deadlock since the election and give Germany leadership again.
Winning the post of finance minister in Germany has been seen by a triumph for the SPD who only scrapped 20.5 per cent in September’s Bundestag election.
According to the Financial Times, SPD MP Jens Zimmermann said: “He won’t go around Europe lecturing people the way Schauble did.
“But that doesn’t mean Germany will suddenly turn on the money taps”.
Mr Scholz has been voted as Germany’s third most popular politician, behind Mrs Merkel and Foreign Minister Sigmar Gabriel.