While it is impossible to accurately predict the future, we do have some clear indications of what Switzerland will have to tackle in 2026.
While it is impossible to accurately predict the future, we do have some clear indications of what Switzerland will have to tackle in 2026:
Immigration
Among the most important issues on the political agenda is immigration – specifically, the highly controversial ‘No to 10 million’ initiative spearheaded by the Swiss People’s Party.
While this measure has been on the radar – and gaining momentum – for a couple of years, it is expected to be voted on in 2026.
READ ALSO: What exactly does the Swiss ‘no to 10 million’ anti immigration proposal aim to do?
The initiative poses a major challenge to the government because two recent polls indicated that it has a wide voter support.
In other words, if as many Swiss citizens ultimately vote ‘yes’ to the proposal as the two surveys suggest, this would bring about a major paradigm shift, impacting not only the country’s economy (which relies heavily on foreign workforce), but also likely cause a rift with the European Union, as the terms of the free movement of persons agreement would be violated.
So Switzerland’s challenge in 2026 will be convincing the voters to turn down the initiative well before it comes to the ballot box.
Relations with the EU
The new package of agreements between Bern and Brussels is shaping up to be one of the most crucial issues in 2026.
The Federal Council will pursue its objective to consolidate and strengthen Switzerland’s relations with the EU.
As with the ‘No to 10 million’ initiative’, here too, the government will have a difficult task of convincing the public – before the referendum on this issue is held at a future, still-undetermined, date – of the compelling benefits of the new deal.
That will not be an easy task, given the divisive nature of some terms of the agreement, including immigration and loss of Switzerland’s sovereignty.
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Sluggish job market
Switzerland has long been known for its robust labour market, with consistently low unemployment rates.
But that will change in 2026.
Based on recent forecasts from the KOF Economic Institute, Swiss employment growth is projected to be slow and below average, with the unemployment rate expected to rise to 3.2 percent from the current 2.9 percent.
Certain big companies have already announced job cuts in 2026 and then there is the ongoing cuts in staff at Geneva’s international organisations, which will no doubt continue in 2026.
READ MORE: How many jobs are set to be lost in Switzerland in 2026?
US tariffs
Though the US has finally agreed to reduce from 30 to 15 percent the trade tariffs it imposed on Swiss imports, it is not a ‘done deal’ yet.
The signed declaration to this effect between Washington and Bern has no legal force, even if the US believes it is sufficient to quickly implement the new deal.
But the declaration must be transformed into a formal contract in the coming months, which implies further discussions that could modify the initial text.
And once the agreement is finalised, the Parliament – and potentially the voters – will have the final say in a referendum.
And that may not go down well: in a nationwide poll carried out at the beginning of December, a clear majority of Swiss residents were critical of the agreement.
READ ALSO: Everything you need to know about Switzerland’s new trade deal with the US
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First-pillar (AHV/AVS) pension
The state pension is currently facing a double challenge: an aging population and the retirement of baby boomers.
The approval of the 13th pension payment in a 2024 referendum – the financing of which still needs to be determined– makes this reform even more urgent.
This puts considerable pressure on the government to address this issue before he first payment of the 13th pension takes place in December 2026.
Curbing the cost of healthcare
The cost of Switzerland’s healthcare, including health insurance premiums, has been soaring for several years.
It is therefore not exactly a ‘new’ challenge but one that has stubbornly remained unresolved to day.
In 2026, the government will continue to devise new money-saving strategies, to be used along with the ones decided on already: uniform financing of medical services, better incentives for integrated care, and improving the efficiency of hospital treatments, among others.
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Addressing housing shortages
Like healthcare costs, this too is a ‘chronic’ issue that will remain a challenge in 2026 as well.
One of the solutions the government favours, especially in urban areas with growing population, is the so-called ‘densification.’
As the name suggests, it means that new apartment buildings are constructed in close proximity to existing ones, rather than on vacant land.
This trend has already taken root and will continue in 2026 as well.
The Federal Office for Spatial Development pointed out that “59 percent of all building permits for residential developments involve projects on already built-up plots. These projects included, for example, the repurposing of former industrial sites, the extension of existing buildings, or reconstructions. As long as a municipality has few building zone reserves, construction is more likely to take place in existing residential areas.”
READ ALSO: Why is Switzerland’s housing shortage among the worst in Europe?
