The Federal Council wants to save 2.4 billion by 2027
Keystone-SDA
Switzerland will have to save CHF2.4 billion ($3 billion) in 2027 and CHF3 billion in 2028 and 2029. The government submitted its proposal to parliament on Friday.
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The Senate will consider it in the winter session, and the House of Representatives in the spring.
Despite the savings made in the 2024 and 2025 budgets, structural deficits of more than CHF2 billion are expected to reappear in 2027. These could exceed CHF4 billion by 2029.
The government has therefore decided to review the Confederation’s expenditure for 2027. Following consultation, it has revised its programme downwards, forecasting cuts of CHF2.4 billion, compared with the CHF2.7 billion initially forecast. The programme comprises almost 60 measures.
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CHF3 billion in 2028
In 2028 the savings will be CHF3 billion. And CHF3.1 billion in 2029. The Confederation’s own expenditure will be reduced by CHF300 million between now and 2028. Nearly CHF190 million will be saved on personnel costs in the federal administration, at least CHF100 million of which will come from changes in terms and conditions of employment.
More than half of these will require changes to legislation. The required changes will be grouped together in a single amending act. The government will submit the measures requiring no legislative amendment to parliament when it examines the budget and the financial plan.
Swissinfo affected
The Swiss Broadcasting Corporation’s foreign mandate, which includes Swissinfo, is also affected: the federal contribution of CHF19 million, around half of which goes to Swissinfo, is to be cancelled, which means the end of the ten-language platform in its current form.
“The international service was created and developed at a time when the internet was not yet widespread,” the government said, explaining the decision. The range of information available abroad about Switzerland is now very comprehensive thanks to various media channels, it said. The measure would also significantly reduce the overall burden on the SBC, which has to make savings anyway, it added.
The SBC currently pays the same amount as the federal government towards the operating costs of Swissinfo.
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Education, research and culture
If the relief measures are rejected or substantially reduced, new budget relief measures will have to be taken earlier. Once again, these would mainly affect expenditure that is only loosely linked.
These include education and research, development cooperation, agriculture and the armed forces. Cuts of up to 10% in total would be necessary in these areas to replace the reduction programme. While the army would be spared these budget cuts, the other areas would be hit harder.
The government warns that without the 2027 budget reduction programme, the Confederation would have to finance its spiralling expenditure.
Translated from French by DeepL/ts
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