The week in Switzerland
Dear Swiss Abroad,
This week thousands of students took to the streets to protest against higher tuition fees. The vote on the e-ID was extremely close, and the airline SWISS is under pressure to deliver more profit.
Best wishes from Bern,
Switzerland saw protests this week by students opposing the planned doubling of tuition fees and major cost-cutting measures in the education sector. They warned of a threat to equal opportunities and to Switzerland’s role as a research hub.
On Wednesday more than 2,000 students demonstrated in Bern and other cities against the government’s 27th financial aid package, which includes sharp tuition fee hikes and cuts to research funding. The Association of Swiss Student Organisations submitted a petition with 37,361 signatures to the Federal Chancellery.
The consequences of the measures are considered serious: longer study periods, more part-time jobs, delayed entry into the labour market, weaker international cooperation and reduced innovative capacity. Up to 700 research projects and 2,000 jobs are also at risk, according to the Swiss Broadcasting Corporation (SBC).
Students and researchers are calling for a fairly funded university system that remains open and affordable. Protests in Zurich, Lausanne and Basel highlighted widespread rejection of the measures, which are seen as an attack on the future of education and research in Switzerland.
Sunday’s vote on the electronic identity (e-ID) was extremely close, with 50.4% in favour. The result reflects deep-seated fears about state control and data security.
As my colleague Balz Rigendinger notes in his analysis, conservative and rural voters were especially sceptical, their mobilisation driven partly by the vote, also on Sunday, on abolishing the imputed rental value. They mistrust digital government tools and fear interference in daily life.
The new e-ID law differs from the 2021 proposal in that data must remain with the state. Yet scepticism persists, with concerns that e-ID will gradually be required in more areas. Many also mistrust artificial intelligence, perceived as opaque and dominated by large corporations, fuelling fears of data misuse.
A third of Swiss people struggle with digital technologies. Although the e-ID is voluntary, social pressure to adopt it could rise. Authorities now face the task of building trust and promoting digital inclusion to avoid deepening the divide between “digital illiterates” and users.
The unpredictability of US policy was on display this week with the sudden threat – and then suspension – of tariffs on pharmaceuticals.
Last week US President Donald Trump announced that from October 1, imports of patented medicines into the United States would face a 100% surcharge. The industry reacted with alarm.
Now, however, the German Press Agency reports the tariffs will not be applied. No specific reasons were given for the withdrawal.
Swiss firms Roche and Novartis had already announced multibillion-franc investment programmes in the United States to avoid such punitive measures. Meanwhile, Pfizer reached an agreement with Washington on cheaper medicines, sparking a surge in pharmaceutical share prices on Thursday.
Despite strong results, Lufthansa is demanding heavy cost-cutting from its subsidiary Swiss International Air Lines (SWISS) to boost group profits. The airline is expected to deliver hundreds of millions of francs in additional earnings, with consequences for staff and operations.
SWISS is expected to contribute at least CHF160 million ($200 million) more per year. A less conservative estimate suggests the figure could double, the Tages-Anzeiger reported on Thursday. Lufthansa’s management sees potential savings at SWISS in high costs and expensive labour contracts.
Despite this, SWISS posted the group’s best margin in 2024, with a profit of just under CHF700 million. Yet rising fees, costly maintenance and new contracts are increasing pressure. The group is rolling out efficiency programmes and job cuts in Germany, while Swiss-specific measures are pending.
One step already underway is transferring about 70 flight attendants from SWISS to sister airline Edelweiss, which needs staff. The group is moving towards a division of labour, with smaller subsidiaries handling short-haul routes while the main brands focus on long-haul flights.
The week ahead
It’s that time of year: Nobel Prize week. From Monday to Friday, one prize will be announced daily around lunchtime: physiology or medicine, physics, chemistry, literature and peace. The economics prize will follow next Monday.
On Monday the Gault-Millau gastronomy guide will be published, including the “chefs of the year”.
Thursday marks the opening of the 82nd OLMA, Switzerland’s largest public fair devoted to food and agriculture. Don’t miss the Säulirennen (piglet racing)!
Finally, on Friday Swiss Eurovision winner Nemo will release a much-anticipated debut album, Arthouse.
Translated from German using DeepL/amva/ts
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