Klingbeil defends austerity compromise: sick note required from the first day, but no obligation to visit a doctor immediately

The background is a decision by the coalition committee comprising a total of 34 measures. Under this, employees will in future be required to submit a medical certificate of incapacity to work from the first day of illness. Until now, a sick note has only been mandatory from the fourth day of illness. Klingbeil also suggested giving collective bargaining partners and companies more leeway in the future to regulate sick notes on their own.

The Union had originally demanded unpaid waiting days in order to curb the high number of sick days in Germany. The SPD rejected this. "Da haben wir als Sozialdemokraten gesagt, das machen wir nicht mit," Klingbeil explained. Representatives of doctors and trade unions nevertheless sharply criticized the planned reform.

On Monday, the federal cabinet plans to approve the draft for the 2027 federal budget. Spending of 555 billion euros is planned, an increase of just under six percent compared to the current year. In the core budget, new debt of 118.7 billion euros is to be taken on next year, according to the draft seen by the Handelsblatt.

2027 budget with record debt

By 2030, new borrowing in the core budget is expected to rise to 167.3 billion euros. Over the entire period from 2026 to 2030, the federal government plans new debt totaling 838.6 billion euros – the second-highest figure in the history of the Federal Republic. In 2026 alone, new debt of over 203 billion euros is planned, according to the draft.

Interest expenditure in the federal budget is set to nearly double by 2030 according to the plans – from just under 42 billion euros in 2026 to just under 81 billion euros in 2030. For 2026, Klingbeil intends, according to the Handelsblatt, to withdraw 6.8 billion euros from the reserve to finance the budget. For the following years, only 3.9 billion euros in reserves would then remain.

Klingbeil acknowledged that the planned tax cuts would not offset rising social security contributions. A planned relief of 600 euros per year for middle-income families was "nicht nichts," he said. At the same time, he announced that burdens would come for everyone: "Da wird es auch Belastungen geben für alle."

Social insurance and pensions under pressure

With regard to social insurance, Klingbeil warned of the consequences of foregoing reforms. It would be "das Schlimmste, was man jetzt dem Land antun kann" to leave the social insurance systems unchanged. Without pension reform, the pension level will fall from 2031. "Es wird anstrengend. Wir werden den Menschen etwas abverlangen müssen," Klingbeil added. Asked about the financing of defense spending, he declared: "Ich meine, man kann sich gegenüber Putin nicht mit der schwarzen Null verteidigen."

The coalition is also planning to take stronger action on the top tax rate. Currently, the top rate of 45 percent applies to taxable income of around 278,000 euros and above. In addition, tax-free Sunday and public holiday bonuses are to be expanded and fixed-term contracts without objective grounds are to be made easier. Trade unions sharply criticize these relaxations of protection against dismissal. Some business associations, on the other hand, welcomed the package and see growth opportunities.

Outlook: state elections and cabinet decision

In domestic policy, the SPD is facing difficult state elections in Saxony-Anhalt, Berlin, and Mecklenburg-Western Pomerania according to polls. Possible successors for Klingbeil and co-chair Bärbel Bas are already being discussed within the party, including Minister-President Manuela Schwesig and former Federal Minister of Labor Hubertus Heil.

Klingbeil summarized the programmatic direction with the words: "Vor uns liegt ein Jahrzehnt der Veränderung." Politics lives on compromises, he added. The growing debt level and rising interest costs would limit the fiscal leeway of future governments – especially since the reserves from times of a better economy have largely been exhausted.

With Monday's cabinet decision, the parliamentary deliberation on the budget draft begins. Until then, it remains open how the Bundestag will assess the record course of new borrowing and what changes will still be made to the coalition's 34-measure package.