By Ben Richardson BBC business reporter

Mr Steinbrueck is known for his quick and dry sense of humour

Germany's new finance minister Peer Steinbrueck is a man whose hobbies are likely to help him in his day job.

A lover of chess and model ships, the 58-year-old is going to have to rely on his strategic thinking and eye for fiddly detail if he is to bring Germany's battered finances in order.

His most pressing problem will be cutting Germany's record budget deficit and bringing it back within European Union limits.

Tough choices

Voters are unlikely to want spending cuts at a time when Europe's largest economy is not very far along a very bumpy road to recovery.

He also will have to work within the first "grand coalition" government between the Social Democrats and Christian Democrats since 1969.

Speaking about his replacement, outgoing minister Hans Eichel said that he was sure Mr Steinbrueck would do "very well" in his job and would continue to implement his policies.

Analysts said Mr Steinbrueck is well equipped for the job and point to a reputation for plain-speaking, as well as a willingness to reform and compromise.

Germany's election posed almost as many questions as it answered

Until May of this year, Mr Steinbrueck was governor of North Rhine-Westphalia, Germany's most populous state.

While his ousting prompted former Chancellor Gerhard Schroeder to call the recent general election, his time at the helm was generally well received.

Training ground

The job should stand him in good stead as North Rhine-Westphalia has an economy that is larger than Australia's and is home to some of Germany's biggest companies including Deutsche Telekom and Deutsche Post.

Following his defeat in the regional elections, Mr Steinbrueck was quoted as saying that voters had not given his pro-business policies enough credit.

Analysts also point to an earlier attempt in 2003 at cutting Germany's bloated subsidy system, when Mr Steinbrueck joined forces with Roland Koch, premier of another German state and a member of a rival political party.

The son of an architect, Mr Steinbrueck was born and grew up in the northern port city of Hamburg, before moving to study economics and social sciences in Kiel.

Seen as a pragmatic methodical worker, he joined the Social Democrats of Willy Brandt in 1969 because of his admiration for the then Chancellor and worked his way up through federal and state governments.

Rapid rise

In 1998, he took on the job of economy minister in North Rhine-Westphalia, after a stint in the same position in a different region.

Two years later, he was finance minister and in 2002 took over the top job.

A man who thought about becoming a journalist before he entered politics, Mr Steinbrueck is known for his dry sense of humour.