What you need to know about the budget thrillerIs Switzerland facing a historic emergency budget?
Dominik Müller
3.12.2024
Parliament is negotiating the federal government's 2025 budget. The army is to receive more money, while savings have to be made elsewhere. blue News answers the most important questions about the budget debate.
03.12.2024, 12:01
03.12.2024, 12:07
Dominik Müller
No time? blue News summarizes for you
The 2025 budget will be debated in the National Council from Tuesday. The Council of States will follow next week.
The Federal Council's 2025 budget includes numerous savings items, while the armed forces are to have significantly more money at their disposal.
In the overview, you can find out what the budget thriller is all about and why an unholy alliance cannot be ruled out.
From Tuesday, the National Council and Council of States will be wrestling over the budget and financial plan up to 2028. The federal government wants to spend around CHF 85 billion next year. In times of tight finances and due to the requirements of the debt brake, tough debates are expected in both chambers. One of the issues to be decided is how to compensate for the desired increase in military spending.
The finance committees of both chambers want to provide the army with CHF 530 million more next year than the Federal Council. The Finance Committee of the National Council (FK-N) wants to increase army spending to one percent of gross domestic product by 2030, the Federal Council by 2035 and the Council of States by 2032.
What is Parliament planning for agriculture?
In addition to the army, the National Council Committee also wants to provide agriculture with more funds. Specifically, the FK-N is proposing an increase of CHF 46 million in agricultural funding, mainly for direct payments to farms. In addition, there are requests for an increase of CHF 17.5 million for forestry.
Where should savings be made?
The finance committees see the greatest potential for savings primarily in the areas of development aid, asylum and federal personnel. However, the demands differ between the two councils: The FK-N wants to cut CHF 250 million in development aid next year, massively more than the CHF 30 million proposed by the Council of States. Savings are also to be made in the federal asylum centers and social assistance for asylum seekers, temporarily admitted persons and refugees. You can find a list of the Federal Council's savings plans here.
The National Council has reserved Tuesday morning, Wednesday morning and Thursday for the budget. Next Monday, it will then be the turn of the Council of States. However, there are minority motions for increases or additional cuts to numerous budget items. The timetable is correspondingly tight and could still be adjusted.
What happens if the Councils disagree?
If both Councils reject the budget in the overall vote or if one Council rejects the budget twice, the Federal Council would have to submit an emergency budget to Parliament - in the winter session. Such a transitional budget would then be applied in the first three months of 2025. The Federal Council would have to submit a new budget for the spring session in March.
What are the chances of the budget being rejected?
More security for Switzerland, defending the tried-and-tested debt brake, no tax increases: These are the three guiding principles of the SVP parliamentary group in the debate on the federal budget for the coming year. If these demands are not taken into account by parliament, there is a corresponding threat of rejection from the right.
The SP, on the other hand, has already announced at the start of the budget debate in the National Council on Tuesday that it will not accept the proposed budget. The rigid interpretation of the debt brake and the high expenditure on the army have met with resistance from the left-wing camp.
An unholy alliance against the budget is therefore not out of the question, especially not in the National Council.
Would a rejection be historic?
Yes, it has never happened before in the history of the country. In the history of the modern federal state, the budget has always cleared the hurdle in both chambers. However, the budget has already been rejected seven times before the end of the year, most recently in 1974.