Switzerland Today

Dear Swiss Abroad,

Money is the common theme of today’s briefing. An internal government conflict over defence funding is said to be one of the reasons behind the resignation of Army Chief Thomas Süssli, while a controversial payment sees former FIFA and UEFA bosses back in court today.

We also look at the redistribution of Swiss National Bank profits and the latest statements from Switzerland’s price watchdog.

Enjoy your read!

Keystone / Urs Flueeler

Former FIFA President Sepp Blatter (pictured) and former UEFA President and FIFA Vice President Michel Platini appeared in court in Switzerland today, accused of fraud – two-and-a-half years after they were acquitted.

The trial concerns a CHF2 million ($2.22 million) payment that Platini received from FIFA, world football’s Zurich-based governing body, in 2011. The Office of the Attorney General of Switzerland (OAG) has accused the two men of fraud, among other charges.

In July 2022, the Federal Criminal Court in Bellinzona acquitted them of fraud, dishonest management and document forgery. However, the OAG has appealed against this verdict.

Olivier Thormann, president of the Court of Appeal of the Federal Criminal Court, previously led the investigation against Blatter and Platini while working at the OAG; as a result, he has recused himself. Platini subsequently succeeded in having other judges and clerks withdrawn from the case, necessitating the formation of an extraordinary court. The trial has therefore resumed in an unusual venue: a randomly selected court in Muttenz.

The Extraordinary Appeals Chamber of the Federal Criminal Court is holding hearings at the Muttenz criminal justice centre, with proceedings scheduled until March 13. A verdict is expected on March 25.

• Read the full article on Swiss public broadcaster, RTSExternal link and RSIExternal link (in French and Italian respectively)
• Read the Keystone-SDA news article on SWI swissinfo.ch (in English)

Keystone / Peter Schneider

The background to Thomas Süssli’s resignation was the focus of yesterday’s Sunday press, which described the army chief (pictured) as the victim of a power struggle between outgoing Defence Minister Viola Amherd and Finance Minister Karin Keller-Sutter.

The dispute reportedly centred on defence spending: Amherd pushed for increased funding, while Keller-Sutter opposed it and continues to advocate for a spending cap. Süssli’s repeated public warnings about the army’s financial shortcomings are said to have irritated Keller-Sutter, whom the NZZ am Sonntag described as “the most powerful woman in the Federal Council”.

Tensions peaked after the NZZ am Sonntag reported in August on an extensive cost-saving package that had not yet been officially announced. Keller-Sutter allegedly blamed Süssli for the leak and demanded his resignation, according to Sunday’s reports. However, an administrative inquiry later cleared the army chief.

Süssli insists his resignation was unrelated to this affair but admits he struggled to build a climate of trust. Between political manoeuvring and information leaks, he often doubted whom he could rely on, say sources close to him.

• Read the full article in the NZZ am SonntagExternal link (paywall, in German)
• The summary of the Corriere del TicinoExternal link (in Italian)
• From the archives of SWI swissinfo.ch: Seven weaknesses in ‘Fortress Switzerland’ (in English)

Keystone / Anthony Anex

The Swiss National Bank (SNB) has confirmed that it recorded a profit of CHF80.7 billion ($89.5 billion) for 2024. As previously announced, it will resume distributions to the federal government and cantons, amounting to CHF3 billion.

The detailed report, published today, aligns with the SNB’s January forecast. This is good news for the Swiss government and cantons, which received no distributions in the past two years.

The SNB’s final profit for 2024 is slightly higher than reported at the beginning of the year. In detail, the Swiss central bank made a profit of CHF67.3 billion on its foreign currency positions and CHF21.2 billion on its gold holdings, but a loss of CHF7.4 billion on its Swiss franc positions. Meanwhile, operating expenses amounted to CHF400 million.

After allocating CHF11.6 billion to the provisions for currency reserves and taking into account the negative distribution reserve of CHF53.2 billion, this results in a balance sheet profit of CHF15.9 billion.

This enables a dividend payment of CHF15 per share and a profit distribution to the federal government and cantons amounting to CHF3 billion. After these payments, the distribution reserve will amount to CHF12.9 billion.

• The Keystone-SDA news agency report on SWI swissinfo.ch (in English)
• Which cantons receive the most? Swiss public broadcaster, RTSExternal link archive article (in French)

Keystone / Peter Klaunzer

The previous year was a record year for Stefan Meierhans, Switzerland’s price watchdog, who handled 800 cases and issued 400 recommendations. In 2025, he will focus on major web platforms and the banking giant UBS.

According to Meierhans (pictured), his team significantly eased financial pressures on households and businesses in 2024. For example, it managed to mitigate planned price increases in public transport and postal services, reducing them by CHF50 million and CHF70 million, respectively.

In addition to its traditional oversight areas, the price watchdog will conduct an in-depth review of digital platforms’ pricing models in 2025. These companies dominate the market, sidelining potential competitors through certain innovations. This, the watchdog argues, has led to rising costs under the guise of technical improvements that consumers never requested, as stated in a press release today.

The watchdog will also closely monitor UBS’s influence in market segments where it wields significant power. Meierhans has received numerous reports from corporate clients about changes to terms and conditions following the UBS-Credit Suisse merger.

• UBS and online platforms in the crosshairs: the Swiss public broadcaster, RSIExternal link article (in Italian)
• The press releases and the 2024 report on the Price Supervisory website (available in FrenchExternal link, GermanExternal link and ItalianExternal link)

Keystone / Ti-Press / Francesca Agosta

Picture of the day

Bellinzona is often mocked in Ticino for its lack of nightlife. However, that all changes when Carnival season begins. The Rabadan festival will once again liven up the cantonal capital today and tomorrow.

Translated from Italian using DeepL/amva/ts