Winners and Losers in the 2025 Swiss Budget: An Analysis of Successes and Setbacks
Let's face the harsh truth about Switzerland's 2025 budget:
After a grueling three weeks of parliamentary debates, Switzerland's spending plan for 2025 is set. And it ain't pretty for everyone. Here's a rundown of the winners and losers. Let's start with the losers, 'cause misery loves company.
Bye-Bye, Funds:
- Childcare and Youth Activities: Removing financial contributions to daycare centers costs 800 million Swiss francs annually. But don't worry, they're not entirely axing funding. They just think it's the cantons' responsibility now. And the subsidies for kid's after-school activities? Yep, they're getting lower, too.
- Retirement Funds: For those dreaming of early retirement, think again. The government will increase taxes on withdrawals from secondary and optional pension funds, snagging 220 million Swiss francs by 2030.
- Train Travel: Cross-border trains are taking a hit with no incentives left for passenger transport, saving 60 million Swiss francs by 2030. And don't get too excited about the night train network expansion—that's being cut by 20 million Swiss francs.
- Roads: The Federal Council is pinching pennies, too, cutting contributions for road maintenance, repairs, and expansion by 92 million Swiss francs. Projects yet to be started may require a referendum before implementation.
State Secretariat for Migration (SEM):
SEM will need to tighten its belt, receiving 100 million Swiss francs less for social assistance for asylum seekers and refugees and 85 million less for federal asylum centers.
International Cooperation:
The National Council and the Council of States compromised, agreeing to a 110-million Swiss franc cut in bilateral cooperation, economic aid, and contributions to international organizations. You can find the full rundown of cuts right here (in German).
So, Who Wins?
- The Army: With Russia's invasion of Ukraine causing risky geopolitical conditions, Switzerland's military is pocketing 29.8 billion Swiss francs for the years 2025-2028.
- Polytechnic Institutes and Universities: Despite an original plan to cut funding for polytechnic institutes (ETH in Zurich and EPFL in Lausanne) by 100 million, these schools received a 12.5-million 'reprieve.' Other public universities are starting 2025 6 million Swiss francs richer.
- Farmers: The Swiss farm sector receives 42 million Swiss francs in 2025. Plus, there's an extra 10 million set aside to vaccinate livestock against the recent bluetongue disease outbreak.
Want more info about challenges facing Switzerland in 2025? Check it out here.
Sources:[1] Swissinfo (2020) [Link][2] Swissinfo (2021) [Link][3] Swissinfo (2022) [Link][4] Swissinfo (2023) [Link][5] Swiss Agency for Development and Cooperation (2024) [Link]
- In the year 2025, Switzerland's childcare sector will face a reduction in funding, with 800 million Swiss francs no longer provided to daycare centers, a responsibility that is now expected to fall on the cantons.
- The Swiss government has agreed to a 110-million Swiss franc cut in international cooperation, economic aid, and contributions to international organizations, as compromised by the National Council and the Council of States.
- In the realm of finance, taxes on withdrawals from secondary and optional pension funds will increase, producing a savings of 220 million Swiss francs by 2030.
- When it comes to business and politics, Switzerland's military will be granted 29.8 billion Swiss francs for the years 2025-2028, an apparent strategic move in light of Russia's invasion of Ukraine and the ensuing geopolitical risks.
