Switzerland Today
Dear Swiss Abroad,
Today is Black Friday and much of the news focuses on money: funds that are lacking, funds that may soon be spent, and fortunes that remain concentrated in very few hands.
Our selection covers the debate over using VAT revenue to finance the army, a slimmed-down federal savings package discussed in the Senate Finance Commission, and the appearance of new billionaires on the annual rich list.
Meanwhile, a prominent entrepreneur continues to make waves with his comments about the US-Swiss tariff talks.
I wish you a good read.
The security situation in Europe remains tense, and a striking proposal is taking shape in Bern. Defence Minister Martin Pfister would like to increase VAT to accelerate the army’s ability to respond to hybrid threats, according to the Tages-Anzeiger.
At a security policy meeting, Pfister told the Swiss federal government that current armament plans were insufficient. According to the Tages-Anzeiger, he based his assessment on the scenario that Russia could threaten not only Ukraine but also other parts of Europe from 2028 onwards. He was accompanied by the military leadership, which recommended additional air-defence systems. “The Federal Council did not officially announce this closed meeting,” said the Tages-Anzeiger.
Because relaxing Switzerland’s debt brake to fund his plan is politically unlikely, VAT is moving into focus. According to research by Tages-Anzeiger, Pfister is proposing an increase of around 0.5 percentage points, which would generate around CHF1.75 billion ($2.17 billion) a year. A constitutional amendment would be required, meaning the proposal would have to pass parliament and a national vote. Implementation would therefore be possible in 2028 at the earliest, the Tages-Anzeiger writes.
Other debates on increasing government spending are running in parallel. The state old age pension 13th payment could also require a VAT increase. A “security percentage” has already been discussed. One thing is certain: funding the army and social programmes will keep Bern busy in the months ahead.
Entrepreneur Alfred Gantner has offered new insights into the US tariff controversy. He says Switzerland could have secured a deal as early as May, but negotiations stalled due to slow decision-making in Bern.
In an interview with Tamedia newspapers, the Partners Group co-founder says Switzerland and the United States had initially agreed on a tariff rate of 10%. Helene Budliger Artieda, director of the State Secretariat for Economic Affairs, SECO, had negotiated an almost finalised draft – “like the British”. But the Swiss federal government needed more time because no one could decide alone. By the time Bern wanted to accept the offer, Washington had concluded agreements with others and demanded higher rates.
Gantner also describes the background to the business delegation that travelled to the White House. After tariffs increased to 39%, he drafted and presented a seven-point plan. The group did not negotiate but explained to US President Donald Trump how Swiss investments worth $200 billion (CHF161.25 billion) affect the US trade deficit.
Gantner rejects accusations of bribery for presenting Trump with a gold bar and a Rolex clock. He said the gifts complied with diplomatic protocol and were intended for the US Presidential Library, not for Trump personally. However, the Office of the Attorney General (OAG) has received three criminal complaints regarding the gifts.
The Swiss federal government’s billion-franc savings package is coming before parliament for the first time, starting in the Senate. Its Finance Committee has reduced the size of the relief programme. But it backs the government’s plan to cut its contribution towards the Swiss Broadcasting Corporation (SBC)’s international mandate. Swissinfo is directly affected.
The savings package of around 60 measures intended to ease pressure on federal finances is likely to face resistance in parliament. Even before the Senate’s deliberations, scheduled for December 17, the responsible committee has proposed to waive CHF603 million ($748 million) in cuts.
The committee proposes to make total savings of CHF1.79 billion in 2027, significantly less than the CHF2.4 billion originally planned by the government.
Among other things, the Senate Finance Committee today recommended cancelling CHF20 million in indirect press subsidies. It nevertheless voted 7 to 6 in favour of following the Federal Council and cutting CHF19 million from SBC’s foreign services, which include Swissinfo.
Among other issues, funding for education, research and youth sport activities would be spared if the committee majority prevails. After the Senate debate and vote next month, the House of Representatives will take up the issue during the March session. However, if the package is accepted by parliament, the issue could go to a referendum and a nationwide vote before any savings enter into force in 2027.
The annual Bilanz magazine ranking of the 300 richest people in Switzerland reveals five new billionaires, while total wealth has hit a record CHF851.5 billion ($1.06 trillion). The Wertheimer family remains at the top with more than CHF33 billion.
Each year, Bilanz publishes its list of Switzerland’s 300 wealthiest individuals. The 2025 edition includes about a dozen newcomers. According to the magazine, the combined wealth of those on the list increased by CHF18 billion this year. The top 10 alone hold more than a quarter of that.
The list is once again headed by Chanel co-owner Gérard Wertheimer, followed by the Roche families Hoffmann, Oeri and Duschmalé. A new entry in third place is Italian entrepreneur Andrea Pignataro. According to the Swiss public broadcaster RTS, the founder of the software group ION has an estimated fortune of CHF27-28 billion, placing him among the leaders.
The Blocher family (Ems-Chemie, Läckerli Huus) has dropped out of the top 10 after coming ninth in 2024. Checkout.com founder Guillaume Pousaz also falls out of the list after an estimated loss of CHF5 billion. Among the newcomers is Torstein Hagen from Norway, who lives in Lucerne and owns the cruise company Viking, which went public in New York last year, placing his fortune at around CHF11 billion.
Translated from German using DeepL/amva
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