Switzerland Today
Dear Swiss Abroad,
Just two days into its summer session, parliament has already addressed a broad range of issues – including the long-anticipated move towards individual taxation for married couples.
The natural disaster in Blatten, canton Valais, continues to dominate headlines both in Switzerland and internationally.
And in a surprise development, Radical-Liberal Party President Thierry Burkart has announced his resignation.
Enjoy the read,
Unexpected news reached us this afternoon: the president of the Radical-Liberal Party, Thierry Burkart, is stepping down as leader of the centre-right party. He explained his decision to the German-language Neue Zürcher Zeitung (NZZ) newspaper.
After just four years, Burkart will step down as party chairman on October 20. “It’s the right time,” he told the NZZ, adding that he now wishes “to devote himself exclusively to substantive politics and his professional activities”. Earlier this year, he had announced that he would step down by the 2027 federal elections at the latest.
According to the NZZ, Burkart, a senator from canton Aargau, has repositioned his party further to the right during his tenure, focusing on major issues such as immigration and education. However, this shift has yet to deliver electoral success: in the 2023 federal elections, the Radical-Liberal Party recorded its worst result since the founding of the federal state in 1848. Burkart maintains that “it takes time for the work on the party’s positioning and structure to bear fruit”.
He has also been openly sceptical of the new package of bilateral agreements with the European Union, an issue that has deeply divided the party. He believes his resignation will allow a new figure to “accompany the European dossier with renewed strength”.
Parliament approved the initiative on individual taxation for married couples on Tuesday. Following the House of Representatives, the Senate narrowly backed the Radical-Liberal Party Women’s popular initiative, which aims to correct the so-called “marriage penalty” in the tax system.
“Society has changed. In most families, both parents work, yet they are penalised in terms of taxation,” said Hans Wicki of the Radical-Liberal Party, speaking to the Keystone-SDA news agency on behalf of the committee. The Senate supported the initiative by 23 votes to 22, following another close vote in the House.
The issue of the “marriage penalty” has been a long-standing debate in Swiss politics. Currently, married couples are taxed on their combined income, often resulting in a higher tax burden than for cohabiting partners – particularly due to tax progression and how income is split between partners.
Individual taxation now enters its final parliamentary phase. However, given the slim majority in the Senate, the reform could still collapse in the final vote on June 20, the last day of the session. Furthermore, Swiss public broadcaster SRF says conservative groups are expected to launch a referendum, meaning the Swiss people would ultimately decide.
Another key topic on Tuesday was the mandate to begin negotiations with the United States to reduce US tariffs on Swiss goods. Approved by the House of Representatives’ Foreign Affairs Committee, the mandate allows the Swiss federal government to seek solutions favourable to Switzerland, though not at the expense of the Switzerland-EU agreement, noted Radical-Liberal parliamentarian Laurent Wehrli.
The disaster in Blatten is taking on a political dimension within Switzerland and is also attracting international attention. Residents have now been told it could be years before they can return to their mountain village in canton Valais.
At the opening of the summer parliamentary session on Monday, House President Maja Riniker urged solidarity and compassion for those affected. Senate President Andrea Caroni of the Radical-Liberal Party echoed her call.
Various political proposals have already emerged. The Greens plan to submit motions calling for part of the national roads fund to be allocated to rebuilding infrastructure. Meanwhile, Swiss People’s Party President Marcel Dettling suggested that funds from development aid should be redirected.
At the Global Platform for Disaster Risk Reduction in Geneva, Celeste Saulo, secretary-general of the World Meteorological Organization (WMO), described the Blatten event as “a powerful warning about global warming”.
Meanwhile, the search for a shepherd who went missing amid the glacier collapse continues in the Blatten region. The army remains on standby to intervene, and there are reports of renewed activity on the crumbling Petit Nesthorn mountain above the village, according to the regional emergency centre. Local families are now searching for alternative housing, with help from the tourist office.
UBS economists have revised their Swiss GDP forecast for 2025 upwards from 1% to 1.3%, citing stronger-than-expected first-quarter growth. The State Secretariat for Economic Affairs (SECO) had reported Q1 growth of 0.8%, up from the earlier estimate of 0.7%.
However, UBS warns that US tariffs introduced by President Donald Trump in April could dampen future growth. For 2026, they now expect GDP growth of around 1%, down from 1.2%. If trade relations continue to deteriorate, “a global recession cannot be ruled out,” they warn.
There is better news for consumers: inflation dipped into negative territory for the first time since March 2021, falling to -0.1% in May. The drop was mainly due to falling prices for imported goods (-2.4%), while domestic goods rose slightly (+0.6%), according to the Federal Statistical Office.
Children and young people on welfare will receive increased support from cantons to give them greater access to extra-curricular activities, thanks to new measures worth CHF50 million ($60.8 million) nationwide.
The conference of cantonal directors of social affairs wants to enable children and young people affected by poverty to participate more fully in social life. From 2027, families on social assistance will receive a supplement of CHF50 per child (up to a maximum of CHF200 per family). This money should enable them to buy books, take music lessons or pay for a membership of a sports club.
The association of Swiss municipalities welcomed the move, saying it would improve education and social inclusion. However, the Radical-Liberal Party questioned whether it is the state’s role to pay for “boxing clubs and piano lessons”.
Translated from French using DeepL/amva/sb
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