Federal finances Struggle for a balanced federal budget has begun

SDA

3.12.2024 - 11:05

The 2025 federal budget is causing a stir. The left-green minority in the National Council does not agree with the Finance Committee's proposals.
The 2025 federal budget is causing a stir. The left-green minority in the National Council does not agree with the Finance Committee's proposals.
Keystone

The National Council began its three-day debate on the 2025 federal budget on Tuesday. The conservative majority argued for a faster increase in the army and the defense of the debt brake. This is not acceptable to the left-green minority.

Keystone-SDA

During the two-hour general debate, speakers from all six parliamentary groups had their say at length. A rift between the ideas of the SVP, FDP and Center Party on the one hand and the SP, Greens and GLP on the other became apparent early on. The priorities of the two camps are sometimes fundamentally different.

"Come to your senses"

The conservatives were in favor of more spending on security without touching the debt brake or increasing taxes. Parliament must finally open its eyes and set the right priorities, said SVP parliamentary group spokesperson Lars Guggisberg (BE). "We must come to our senses and take responsibility."

The SVP is not about saving money, said Guggisberg. "It's about less spending growth." Spending on social welfare and development aid in particular must be curbed. "Only a lean state is a healthy state," Michael Götte (SVP/SG) pointed out.

"Considerable savings potential"

The FDP took the same line. "State priorities must be redefined," said parliamentary group spokesperson Alex Farinelli (TI). In order to strengthen security, other areas would have to suffer somewhat. However, it is "essential that the federal finances are restructured". Otherwise, public finances would get "out of control".

According to the FDP, the debt brake is a popular mandate that must be defended. However, this does not mean that there will be no more investment. However, expenditure should increase less than in previous years. For example, there is "considerable savings potential" in federal personnel, said Peter Schilliger (FDP/LU).

"Discipline is needed"

The centrist parliamentary group also wants to adhere to the requirements of the debt brake when budgeting. "In doing so, we are assuming fiscal responsibility and making reliable policy," said spokesperson Pius Kaufmann (LU).

According to Kaufmann, new expenditure must be consistently financed. In the case of new tasks, it was necessary to examine which other tasks could be reduced or had already been eliminated. "This requires discipline."

Criticism from the left-green party

If the conservative majority prevails, the army should have around half a billion francs more at its disposal next year than planned by the Federal Council. Agriculture will also receive more money. In contrast, the preliminary consultation finance committee wants to spend less on foreign aid, asylum seekers and federal personnel.

The left-green parliamentary groups have a completely different focus. They do not want to accept the Finance Committee's version of the budget. If their minority motions fail by a majority during the debate, the SP, Greens and GLP are likely to reject the 2025 budget in the overall vote.

"Frontal attack on social achievements"

"This financial policy pursued by the majority is anything but serious", said SP co-chair of the parliamentary group Cédric Wermuth (AG). He spoke of a "frontal attack on social achievements". At the same time, the army is being "over-equipped".

The rigid interpretation of the debt brake is increasingly becoming a brake on the future and investment, said Sarah Wyss (SP/BS). A modernization of the debt brake could solve the problem of this "spiral of reduction". The SP wanted to defend itself against a one-sided cutback policy "driven by the mantra of the debt brake".

"Exactly in the wrong direction"

The Greens also criticized the financial policy of the conservative majority. In key points, the Finance Committee's proposals were "going in exactly the wrong direction", said spokesman Felix Wettstein (SO). He appealed to the National Council to return to the "path of virtue".

In the view of the GLP parliamentary group, the Finance Committee's proposals are "not balanced". It is calling for cuts to humanitarian aid to be avoided. "Humanitarian responsibility is not a burden, but a long-term investment," said parliamentary group leader Corina Gredig (ZH).

"Painful cuts"

Finance Minister Karin Keller-Sutter spoke of the "painful cuts" that the National Council committee had requested in the course of the army increase. In particular, the proposed cuts to international cooperation (IC) are "problematic". It is likely that projects will have to be canceled. This could lead to reputational damage for Switzerland.

If parliament wants to increase spending on the army to one percent of gross domestic product (GDP) as early as 2030 and not in 2035, there will no longer be any room for maneuver in terms of financial policy, said Keller-Sutter. "Then they might also have to discuss additional revenue."