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Tensions between Bern and Rome, and the Swiss government's decision to increase VAT to feed an armaments fund are the topics in the news this Wednesday.

Switzerland Today

Dear Swiss Abroad,

It is rare for all political parties in the Swiss parliament to be in agreement. Yet this is precisely what is happening in the wake of the international, diplomatic and political fallout from the deadly fire in Crans-Montana. Day by day, relations with Rome are becoming more strained.
 
One decision that is far less likely to command broad consensus, however, is the federal government’s announcement today that it intends to raise VAT to finance an armaments fund.
 
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The currently planned financial resources are no longer in line with the reality of the armaments market, the government estimates.
The currently planned financial resources are no longer in line with the reality of the armaments market, the government estimates. Keystone / Andreas Becker

The Swiss federal government has decided to temporarily increase value added tax (VAT) from 2028 for a period of ten years. The aim is to replenish an armaments fund and significantly strengthen Switzerland’s security and defence capabilities.

According to the government, additional resources of around CHF31 billion ($40.4 billion) will be needed for civilian entities performing security-related tasks, as well as for the army. The planned VAT increase amounts to 0.8 percentage points.

The Swiss federal government has therefore instructed the defence ministry to prepare a draft proposal for consultation by the end of March.

“The world has become more unstable and less secure,” the government writes. “Switzerland is also affected by these developments and is already confronted with hybrid forms of conflict, including cyberattacks and disinformation.” The currently planned increase in military spending – reaching 1% of GDP by 2032 – is considered insufficient to ensure the protection of the population and to avoid Switzerland becoming “a security risk within the European defence architecture”.

Rome has recalled its ambassador to the Swiss Confederation, Gian Lorenzo Cornado (pictured), following the news on January 24, of the release on bail of the main suspect in the Crans-Montana fire, Le Constellation bar owner Jacques Moretti.
Italian ambassador to Switzerland, Gian Lorenzo Cornado. Copyright 2026 The Associated Press. All Rights Reserved.

Last week, Rome recalled its ambassador to Switzerland, Gian Lorenzo Cornado, following the news of the release of the Le Constellation bar owner Jacques Moretti from detention. Italy has made the return of its ambassador to Switzerland conditional on the creation of a joint investigation team into the New Year’s Eve fire in Crans-Montana.

Italy’s conditions to Switzerland have sparked strong reactions across the Swiss political spectrum. Lawmakers from all major parties have expressed indignation, with some describing the move as “blackmail”.

“These are very serious threats to the rule of law, unworthy of relations between Western states,” said left-wing Social Democratic Party parliamentarian Jessica Jaccoud. Critical voices have also come from the right-wing Swiss People’s Party: “Italy’s demand is absurd. Cooperation is possible, but exerting political pressure in this way seems completely inappropriate,” said parliamentarian Piero Marchesi.

Centre Party parliamentarian Giorgio Fonio struck a similar note: “Giorgia Meloni is speaking to her electorate. This affair may be being instrumentalised for electoral purposes – and that is problematic.”

Other parliamentarians have called for restraint and support the Swiss federal government’s cautious approach. The Swiss foreign ministry has reiterated the importance of the separation of powers, stressing that the case falls under the responsibility of the Valais cantonal judiciary. The cantonal authorities in Valais are expected to respond to Italy’s request for cooperation, which had been submitted before the ambassador’s recall, by the end of the week.

The non-payment of benefits causes further difficulties for many people who are already in a precarious economic situation.
The non-payment of benefits causes further difficulties for many people who are already in a precarious economic situation. Keystone / Gaetan Bally

The rollout of a new IT system at the State Secretariat for Economic Affairs (SECO) at the beginning of January is causing delays in the payment of unemployment benefits across Switzerland. According to Swiss public broadcaster RTS, the situation is affecting hundreds, possibly thousands, of households, in some cases with serious consequences.

The new software, SIPAC 2.0, has suffered major technical problems since its launch, delaying the processing of claims by unemployment offices. As a result, jobseekers in all cantons are not receiving benefits on time. “I couldn’t pay my December rent,” an unemployed woman from Fribourg told RTS. “Fortunately, my husband could cover it, but I’ve already received reminders for other bills, with additional fees.

Many others are in a similar situation. There is no formal avenue of appeal, as neither the federal government nor cantonal authorities can be held liable for late payments, RTS explains. Those affected are advised to seek understanding from creditors or, if necessary, apply for social welfare assistance.

SECO says the technical problems are being addressed and insists that benefit payments are guaranteed. However, SECO acknowledges that several thousand people may continue to face delays until the system is fully stabilised. According to staff members at the unemployment office cited by RTS, this could still take several months.

Sanjia Ameti and her lawyer on their way to the courtroom, January 28.
Sanija Ameti and her lawyer on their way to the courtroom, January 28. Keystone / Claudio Thoma

The Zurich district court has found Zurich city councillor and former Liberal Green Party member Sanija Ameti guilty of disturbing freedom of belief and religion.

In 2024, Ameti fired around 20 shots at an image depicting the Madonna and Child and later posted a photograph of the bullet-riddled page on Instagram.

The court imposed a suspended monetary penalty of 60 day fines of CHF50 ($65) in lieu of prison, a lighter sentence than the 100 day fines of CHF100 and additional fine of over CHF2,500 that the prosecution had asked for. According to the indictment, the public staging of the shooting was unjustifiably derogatory and offensive to millions of Christians and risked disturbing religious peace.

Although Ameti had quickly deleted the post and issued an apology, the images had already gone viral and were widely shared by the media. The incident also had political and professional consequences. Ameti lost her job at a public relations agency, and Liberal Green Party president Jürg Grossen called for her expulsion. She ultimately left the party of her own accord last January.

Translated using AI/amva

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