Swiss Senate prunes federal savings package

Council of States revises federal savings downwards Keystone-SDA

The Swiss Senate does not agree with every point of a proposed government savings plan. Lawmakers partially rescued subsidies for climate policy and voted against slashing Swissinfo's budget.

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Faced with ever-increasing federal expenditure, the government is presenting a savings package comprising 57 measures. According to the government, these measures are essential in order to accelerate the increase in resources for the armed forces and to finance the Confederation’s contribution to the pension scheme, while complying with the debt brake.

+ Senate rejects cuts to Swissinfo finances

Finance Minister Karin Keller-Sutter proposes saving CHF2.4 billion in 2027, then around CHF3 billion in 2028 and 2029, particularly in the areas of climate policy, passenger transport, asylum, international cooperation and research.

Centre and right leaning parties unanimously defended the need for the programme during the Senate debate. The left denounced it as a “pointless” and “violent” exercise.

Asylum funding

The first decisions were taken on Wednesday. The key measure in the field of asylum is that the period of compensation for tax lump sums paid to the cantons will be set at five years for all asylum seekers, compared with seven years at present.

In line with the Federal Council’s wishes, savings will amount to CHF243 million in 2027, CHF388 million in 2028 and more than CHF435 million in 2029.

Study fees at universities and colleges have also been the subject of debate. Here, the Federal Council is calling for a reduction of CHF120 million per year in the federal share of their funding. Senators halved the annual cut to CHF60 million.

Climate policy

The chamber also decided, against the advice of its committee, to continue financial support for the cantonal buildings programme, which subsidises the replacement of heating or insulation in the cantons.

Under a compromise proposal worked out with the cantons, savings in this area will be reduced to CHF200 million per year for the years 2027 to 2029. The Federal Council had called for a cut of CHF400 million per year.

The Senate also saved the international offerings of the Swiss Broadcasting Corporation, including Swissinfo and TV5Monde. Senators from French-speaking Switzerland were united in this vote.

As expected, the right did not want to increase the tax on 2nd and 3rd pillar capital withdrawals, which was deemed “unacceptable” by several speakers. The revenue potential of this measure was estimated at CHF190 million, and only the left supported it.

Other cuts concern universities, continuing education, federal support for regional airports, Innosuisse and passenger transport. However, the planned cuts to the rail infrastructure fund have been reduced, as have those to agriculture.

The Senate decided will continue the debate on Thursday.

Translated from French by DeepL/mga

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