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Rumblings in canton Vaud. This morning, the cantonal government announced that Finance Minister Valérie Dittli has been removed from the finance portfolio with immediate effect.

Switzerland Today

Hello, Swiss of the world,

She was the German-speaking woman who won over French-speaking Switzerland, becoming Finance Minister in canton Vaud. Today, Valérie Dittli has fallen from grace: her colleagues in the cantonal government have stripped her of the finance portfolio following the publication of a damning report.

More on that below, along with highlights from the meeting of the Council of the Swiss Abroad in Bern.

Enjoy the read,

Pierre Yves Maillard, President of the Swiss Trade Union Federation.
Pierre Yves Maillard, the president of the Swiss Union of Trade Unions. Keystone / Peter Schneider

On Friday, the Swiss federal government presented a series of measures to protect Swiss wages, should the new agreements negotiated with the European Union (EU) come into force. Wage protection is one of the most sensitive issues in the ongoing talks.

The package includes 13 measures already agreed upon by trade unions and cantons in February. A 14th measure was added: improved protection against dismissal for employee representatives, such as those serving on staff committees.

Pierre-Yves Maillard, head of the Swiss Trade Union Federation, appears to have won this key demand, despite resistance from employer organisations. He had warned that without stronger wage protection, the EU deal would not have union support.

Still, the agreement is far from done. Parliament must vote on it next year, and the right-wing Swiss People’s Party has vowed to fight it. “We are surprised the trade unions were so easily bought off,” party president Marcel Dettling told the Blick newspaper.

Members of the Council of the Swiss Abroad at the workshop in the conference room of the Federal Palace.
Members of the Council of the Swiss Abroad at a workshop in Bern this week. SWI swissinfo.ch / Melanie Eichenberger

The Council of the Swiss Abroad met in Bern today for its first session of the year. Ahead of the meeting, members gathered for a workshop on how to improve the diaspora’s image back home.

Council members want to combat persistent stereotypes of Swiss citizens abroad as freeloaders – those who benefit from political rights while evading taxes. “We are ambassadors,” declared several participants during the session at the Federal Palace. They also noted that many Swiss nationals abroad contribute significantly behind the scenes, in diplomacy, business, and academia.

Foreign Minister Ignazio Cassis joined the Q&A session and offered a reflection: “In a polarised world like ours, if you’re not criticised, it’s because you don’t matter,” he said.

Valérie Dittli arrives at the press conference to announce that she is no longer in charge of finance.
Valérie Dittli on Friday at a press conference in Lausanne, canton Vaud. Keystone / Cyril Zingaro

Rumblings in canton Vaud. This morning, the cantonal government announced that Finance Minister Valérie Dittli had been removed from the finance portfolio with immediate effect.

An external audit, led by former Swiss National Bank chairman Jean Studer, revealed a breakdown in relations between Dittli and the Director General of Taxation. The report stated that this conflict was “endangering the health of several employees” and urged immediate corrective measures.

Dittli will retain responsibility for other areas of her department, but oversight of cantonal finances will now fall to her colleague Christelle Luisier.

“I am prepared to accept the consequences of my actions,” said Dittli. Originally from canton Zug, she made headlines in 2022 when she became Finance Minister in Vaud at the age of just 30. Her story, alongside that of her sister Laura – also a minister in Zug – was widely celebrated in the press.

A Leopard I battle tank
A Leopard I battle tank. KEYSTONE/DPA/Klaus-Dietmar Gabbert

A new development has emerged in the ongoing fraud investigation at Ruag, the Swiss federally-owned arms manufacturer. The Office of the Attorney General of Switzerland (OAG) has taken over the case from canton Bern, according to CH Media.

The investigation centres on a former Ruag executive from canton Valais, who allegedly embezzled military equipment for years with the help of his wife and a German contact. Transactions involving Leopard I tanks may have resulted in losses amounting to tens of millions of francs.

Initially, the Bernese authorities led the inquiry. However, due to the scale of the case, it has now been passed to the OAG. The office has not yet commented but has reiterated that the presumption of innocence prevails.

Meanwhile, Ruag International’s latest financial results show that sales fell by 20% last year to CHF494.9 million ($560.9 million), a downturn which the company attributed to heavy investment in production and digital transformation.

Translated from French using DeepL/amva

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