Switzerland Today
Dear Swiss Abroad,
Today was the first “Vote Sunday” of the year in Switzerland and, as predicted, voters backed all three referendums.
While this was the third time that a referendum opposing Covid-19 legislation has been rejected at the ballot box, other issues were more surprising, like the minimum tax on multinational earnings which was backed by over 78% of voters.
Turnout for the votes was 42%, according to the gfs.bern research institute.
Here is what you need to know about the vote day.
The final results: all three votes were approved, with the minimum tax on multinational earnings backed by 78.5% of citizens.
- Voters have given their massive approval to a new minimum corporate tax rate of 15% to be levied on big international firms. Critics aren’t convinced that the measure will help redress global tax injustices. While a “yes” vote was expected, the final result was overwhelming: 78.5% – even higher than earlier vote polls. All 26 Swiss cantons came out in favour. Consequently, from January 1, 2024 Switzerland will enforce its version of a 2021 global deal led by the Organisation for Economic Co-operation and Development (OECD), which aims to clamp down on tax avoidance by big multinational firms.
- The Swiss electorate has also approved the new net-zero climate law. This seeks to accelerate the country’s shift from fossil fuels to renewable energies and reach zero emissions by 2050. In all, 59.1% of voters approved the government’s new climate and innovation law on Sunday, according to the final results. The government and all major parties, except for the right-wing Swiss People’s Party, had called to vote in favour of the bill.
- And finally, for the third time Swiss voters have rejected a referendum opposing Covid-19 legislation. In all, 61.9% of voters on Sunday approved an extension of some provisions of the country’s emergency Covid-19 law, according to the final results. “With Covid-19, we are continuing to ensure that the authorities can act quickly in the event of an emergency to protect public health and particularly vulnerable people,” declared Centre Party parliamentarian Lorenz Hess after the result.
Tax reform: ‘Switzerland has understood that it’s better to be at the negotiating table’
It was one of the most striking results today: 78.5% of Swiss voters accepted an overhaul of corporate tax rules by the Organisation for Economic Co-operation and Development (OECD).
Pascal Saint-Amans, who spearheaded the global plan during his time as director of the OECD’s Centre for Tax Policy and Administration, says the reform is the culmination of years of work to clamp down on tax avoidance. He also added that Switzerland, “with its highly developed economy, which is largely based on very attractive tax regimes, it had every reason to try to limit the impact of the global minimum tax. After the end of banking secrecy, however, it realised that other countries could implement the reforms without it. Switzerland has understood that it is better to be at the negotiating table.”
Now that voters have accepted the reform, multinational firms in Switzerland with an annual turnover of at least €750 million (CHF732 million) will face a minimum corporate tax rate of 15% from 2024.
Switzerland in 2050: portrait of a climate-neutral country
Although recent polls had already pointed towards the final result, Swiss voters on Sunday endorsed the government’s goal of reaching climate neutrality by 2050.
In all, 59.1% of Swiss voted in favour of the new climate and innovation law, while 40.9% were against it. But achieving energy security without fossil fuels will require big changes in behaviour, says Marc Muller, an engineer and independent expert specialising in energy transition.
The government asserts that CO2 emissions generated by transport, buildings and industry can be reduced by 95% using existing technology and renewable energy. The government also believes that other greenhouse gas emissions can be reduced, particularly in agriculture. Any remaining emissions will have to be captured and stored – either by natural carbon sinks like forests and soil or by technologies that remove greenhouse gases from the air or directly at the place of production.
“In any case, this transition is going to happen, whether we want it or not. Oil will run out sooner or later, and Europe has no option other than to bet on renewable energy,” says Marc Muller, an engineer and independent expert specialising in energy transition.
The results from across Switzerland
While issues like the OECD/G20 global minimum tax rate saw all cantons voting in favour, others had more internal differences. You can look at how each canton voted on our interactive map.
Clear ‘yes’ to the climate change law
Our reporters were on the ground at the pro and contra camps when the first projection of the vote on the climate law was announced. Here is our video.
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