Switzerland Today
Dear Swiss Abroad,
In the corridors of the Federal Palace, the tension is palpable. You can sense that the most important parliamentary debate of this legislative term is taking place.
This morning, supporters of the package of agreements between Switzerland and the European Union (EU) secured a major victory. The Senate approved all 14 measures aimed at preventing wage dumping and unfair competition in Switzerland without major difficulties. But the tension is far from over. Senators have yet to decide whether the new package of bilateral agreements will be subject to a national referendum needing a double majority of voters and cantons, or a simple majority of voters.
Enjoy the read!
It was one of the main points of contention in the debate on a new package of agreements between Switzerland and the EU: today, the Senate in Bern finally approved the 14 measures proposed by the government to protect wages in Switzerland.
Measure 14 had the potential to derail the entire package of deals, the so-called Bilateral Agreements III. It provides better protection against dismissal for employee representatives within companies. Despite the controversy it sparked, it ultimately passed through the Senate without difficulty. An important obstacle to securing trade union support for the package has thus been removed.
During the debate, Social Democratic Party senator and president of the Swiss Trade Union Federation Pierre-Yves Maillard pointed out that the International Labour Organization (ILO) had been urging Switzerland to strengthen protection for employee representatives since 2004. He also emphasised the “modest” nature of the measure, which would affect only five or six cases a year.
The centre-right bloc opposed this measure, arguing that it was not directly related to the package of agreements. Fabio Regazzi, a Centre Party senator and president of the Swiss Union of Arts and Crafts, ultimately backed the package of measures, while pointing out that there was no consensus on the 14th measure. He called for a “well-informed vote” on this “intensely negotiated” compromise.
Debate on the package of agreements continued into the afternoon.
The surge in health insurance premiums has sparked widespread opposition, but opinions are divided on the solutions. Following the announcement of an average 5% increase for next year, the Swiss press believes that the burden on households could lead to greater support for far-reaching solutions, such as a single health insurance fund.
Policyholders woke up this morning in a cold sweat following the announcement of yet another rise in health insurance premiums. The media are offering them a wide range of remedies, prescribed by doctors, hospitals, insurers, political parties and trade unions. Stakeholders in the healthcare sector are calling for less bureaucracy; right-wing parties want to cut unnecessary benefits and eliminate perverse incentives, while the left wants to tackle how the bill is shared.
“Those who sow the costs will reap a single-fund system,” warns an editorial in 24 heures. According to the French-speaking daily, households are no longer willing to accept a system that leads to recurring increases. The German-speaking press makes a similar assessment. “If we fail to limit the annual rise in costs to 2% or 3%, calls for a single-payer system could win over a majority,” suggests Der Bund.
Health Minister Elisabeth Baume-Schneider, however, dashed any hopes a turnaround. Will she one day announce a reduction in premiums, asks Le Temps? Her answer is hardly encouraging: “I don’t think so. But I want to share responsibility for better cost control. This 5% rise must not become the norm: we need to achieve a lower percentage.”
Adjusting Swiss old-age and survivors’ insurance (AHV/AVS) pensions to purchasing power in the country of residence of Swiss citizens living abroad and tightening pension eligibility criteria for foreign nationals: these are among the proposals put forward by the Swiss People’s Party in a position paper on reforms aimed at stabilising the pension system’s finances for the period 2030–2040.
The Swiss People’s Party is once again targeting pensions paid to Swiss citizens living abroad. The party is calling for payments to be calculated according to purchasing power in the recipient’s country of residence, as reported by Blick on Tuesday. A person living in Thailand, for example, would receive a lower pension.
Currently, a person who has paid into the pension system for one year is entitled to a pension. The Swiss People’s Party wants to increase this minimum contribution period to five years. People who settle in Switzerland later in life should also pay higher contributions. The party’s aim is to make it more difficult for foreign nationals to obtain a Swiss pension.
“We have a problem with social benefits going abroad. It annoys people,” says Swiss People’s Party parliamentarian Diana Gutjahr. She believes, however, that the chances of the party’s proposals succeeding are “rather slim”. This is not the first time the Swiss People’s Party has targeted social benefits paid to Swiss citizens living abroad, but its demands have never secured a majority.
Nespresso is going all-in on aluminium: the Nestlé subsidiary has decided to discontinue its compostable capsules, barely three years after their launch.
The single-serve coffee specialist is discontinuing its paper-based capsules, citing negative consumer feedback about their shelf life. Once the packaging was opened, customers were advised to use the capsules within four weeks, whereas aluminium capsules can be stored for a year.
The brand now says it is “more convinced than ever” that aluminium is the best material for preserving the flavour and quality of its coffees. It intends to focus on improving the recycling rate of its traditional capsules. In Switzerland, 73% of capsules used at home were recycled by the end of 2025.
Alongside this change of direction, Nespresso is seeking to attract a younger customer base. The brand, which is celebrating its 40th anniversary, is now banking on a new face: singer Dua Lipa takes centre stage in place of actor George Clooney. It is also expanding its range with iced coffees, larger sizes and flavoured varieties, notably yuzu (a Japanese citrus fruit).
Translated from French, sub-edited by Alexandra MV Andrist/dos
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