Lars Klingbeil defends Germany's reform plan and higher debt

In an ARD summer interview, SPD chair, Vice‑Chancellor and Finance Minister Lars Klingbeil defended the schwarz‑rote coalition’s reform package. He acknowledged that the reforms would bring "burdens for everyone" but said they were necessary after a 20‑year reform backlog and to free fiscal space. Klingbeil justified higher borrowing, noting a net credit intake of €118.7 bn for 2027 and total new debt of around €200 bn, arguing that Germany cannot defend against Putin with a "black zero" and that part of the debt finances the modernisation of the Bundeswehr.

He outlined key elements of the reform agenda: an expanded rich‑tax (described by him as a "Super‑rich‑tax" though not a new tax), pragmatic changes to sick‑note rules that would stop forcing employees to visit doctors on the first day of illness, and measures to protect families with tax relief of about €600 per household. Klingbeil urged the SPD to stay united and support the coalition’s course, emphasizing the need for growth, job security and a stricter savings drive from 2028 to close a €34 bn budget gap.