Federal Finance Minister Lars Klingbeil (SPD) has warned citizens in Germany to prepare for a long period of reforms. “We have a marathon of reforms ahead of us,” Klingbeil told the news portal t-online on Wednesday. The vice chancellor also announced cuts for society as a whole, pointing to a budget shortfall of more than €30 billion in 2027.
“I believe that citizens know that changes are necessary,” Klingbeil said. “They can handle clear words and understand that we cannot close a budget gap of over 30 billion euros in 2027 without cuts.” “But as a Social Democrat, I also say: We must make these reforms fair,” the SPD leader emphasized. “If the impression arises that only part of society is contributing, we will lose trust.”
Klingbeil reaffirmed his intention to increase the tax burden on people with very high incomes and assets. “I will insist that everyone contributes.” He described a “joint package” from the CDU/CSU and SPD as a mix of social reforms and tax increases: "The SPD will push ahead with reforms to citizen's income and the social security systems. On the other hand, we also expect people with very high incomes or very high assets to contribute."
With regard to the reforms planned by the government, Klingbeil emphasized that the “autumn of reforms” announced by CDU Secretary General Carsten Linnemann could not be the end of the story. “To be honest, I think that's far too unambitious,” said the finance minister. “It's not as if we now have an autumn, go full throttle for three months and then that's it. Reducing bureaucracy and speeding up planning and approval procedures alone will keep the coalition busy for the entire legislative period.”
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