Klingbeil defends reform package and record debt, promises pragmatic sick note rule

Sick note rule sparks debate

The coalition's decision to require a doctor's sick note from the first day of illness, rather than the current fourth day, has drawn sharp criticism from employees and doctors. Klingbeil sought to calm the waters by promising a "pragmatic implementation." He said workers would not have to drag themselves to a doctor on the first day; the certificate could be obtained later. He also suggested that collective bargaining partners or individual companies could arrange the rule as they saw fit. The SPD had blocked a Union proposal for unpaid waiting days, he noted.

You don't have to drag yourselves to the doctor when sick, and you don't have to drag yourselves to work when sick.

Budget and defense spending

Klingbeil defended the 2027 federal budget, which the cabinet is set to approve on Monday. Net borrowing is planned at 118.7 billion euros, up from 98 billion in 2026. Including special funds for infrastructure, climate neutrality, and the Bundeswehr, total new debt will reach around 200 billion euros. The finance minister justified the borrowing with the need to modernize the military and counter threats from Russia.

You cannot defend yourself against Putin with a balanced budget.

He also cited the economic impact of the Iran war as a factor weighing on growth.

Tax relief and social reforms

The reform package includes 10 billion euros in tax relief for low and middle incomes. Klingbeil said a model family would save 600 euros per year, though the Institut der Deutschen Wirtschaft calculated only 311 euros. Sunday and holiday surcharges will be taxed less, and the rich tax will be expanded to finance the relief. On pensions and health insurance, Klingbeil warned that without reforms, pensions would shrink from 2031 and contributions would rise. The pension commission's proposals will be drafted into bills over the summer and passed in the autumn.

We will have to demand something from people. But doing nothing and leaving our country in this status quo, which has built up over 20 years, would be the worst thing we could do to this country.

Further steps

Klingbeil stressed that the 34-point package was only a start. He expected some changes during parliamentary deliberations but urged not to unravel the compromise. He also defended easier fixed-term contracts without objective reason, saying flexibility was needed during the economic transformation. The coalition aims to adopt a more robust stance toward China to protect industrial jobs.