Klingbeil defends higher new borrowing in 2027 federal budget

Klingbeil, who is also SPD chairman, justified the higher level of debt with the rearmament of the Bundeswehr and the modernization of the country. "The fact that we are taking on debt has to do with the fact that we are rearming our Bundeswehr, that we are modernizing," he explained. Defense and security spending above one percent of gross domestic product does not fall under the constitutional debt brake.

Justification: Bundeswehr and modernization

At the same time, Klingbeil pointed out that the budget is being drawn up in compliance with the constitution with regard to the debt rule. He described the planned drawdown of reserves amounting to 6.8 billion euros as "entirely normal": "Drawing on reserves is entirely normal."

Tighter savings targets from 2028

With an eye to the billion-euro budget shortfalls looming from 2028 onward, Klingbeil announced a sharper course of consolidation. He said he would require every minister to "add an additional 2 percent on top of the 1 percent savings," he said. The ministries had previously already been committed to savings of one percent.

Klingbeil also stressed that the consolidation of public finances was unavoidable. "We have to consolidate, there is no way around it," he said. He additionally pointed to the economic consequences of the war in Iran, which had dampened growth expectations. "That hits us fully. We see it in the figures. And we have to deal with it."

Further procedure

The federal cabinet intends to adopt the draft of the 2027 federal budget on Monday. This will mark the start of parliamentary deliberations in the Bundestag, during which changes to the individual spending lines will still be possible.

The opposition had already sharply criticized the increased level of debt in advance. The FDP parliamentary group spoke of a "fiscal sea change" and called for an immediate return to a strict spending policy. From the ranks of the Greens, by contrast, came approval for the additional investments in defense and infrastructure.

In economic policy statements, the plans were assessed differently. While the German Institute for Economic Research (DIW) fundamentally welcomed the investment offensive, the Council of Economic Experts warned of a disproportionate increase in the interest burden in the coming years.

Klingbeil emphasized in the interview that the budget draft represents a balance between security policy requirements, economic modernization, and fiscal policy responsibility. He sees the additional loans as an indispensable prerequisite for Germany to remain capable of acting in both defense and economic policy.