Switzerland’s system of compulsory health insurance already requires patients to pay a portion of medical bills in addition to paying premiums. To stem the rise in premiums, an old idea has resurfaced: make patients pay an even greater share of their medical costs.

Photo by Pavel Danilyuk on Pexels.comThis week, some political parties voiced support for a higher minimum deductible, an idea that has found limited support in the past, reported SRF. However, premiums have risen significantly over the last few years, making them a key political issue. Desperate times call for desperate measures.

The minimum deductible is currently CHF 300. This means the first CHF 300 of medical bills in a year must come out of the patient’s pocket. In addition, patients must pay 10% of the first CHF

The price of electricity is set to fall in 2025 according to a survey run by the Swiss Electricity Suppliers Association, reported RTS.

Photo by PhotoMIX Company on Pexels.comAs many as 75 out of 83 suppliers surveyed said they definitely or probably expect price cuts next year.

Price data from 52 companies generating more than a third of Switzerland’s electricity show prices falling by between 8% to 10% on average.

The expected price drop reflects falling electricity prices across European markets and the costs of national electricity reserves.

Final prices for 2025 must be communicated to the Federal Electricity Commission (ElCom) before the end of August 2024. ElCom will then publish 2025 prices at the beginning of September 2024.

More on this:RTS article (in French)

On 22 September 2024, Swiss voters will decide whether or not to accept the latest round of government reforms to employee based pensions known as the second pillar pensions. Swiss trade unions are against the reform, which reduces the annuity rate from 6.8% to 6.0%. Instead they are calling for a higher rate to compensate for recent inflation.

Photo by Mikhail Nilov on Pexels.comSwitzerland’s pension system faces a similar demographic challenge to many developed nations. Its population is ageing and people are living longer. This means fewer people putting money in and more taking money out and for longer.

This is a problem particularly for the state pension component of Swiss pensions because it is a pay-as-you-go system where money is passed more directly from workers to

Data published by Switzerland’s State Secretariat for Economic Affairs (SECO) show a sharp rise in the number of people moving to Switzerland from EU/EFTA nations.

Photo by Yan Krukau on Pexels.comIn 2023, 68,000 people arrived in Switzerland from EU/EFTA countries to live, the highest number since 2008 when 72,100 arrived. The 2023 figure is 29% higher than the number of people arriving in 2022.

According to SECO, the rising number reflects Switzerland’s robust employment growth and low unemployment. Immigration and employment go hand in hand, said the agency. Employment growth was solid in 2023, while the unemployment rate reached its lowest level since 2001.

As Switzerland’s population has aged, the native working-age population has grown only slightly over the last 20 years.

Switzerland’s housing crisis is pushing low income earners into poverty, warned Caritas this week.

Geneva © Boris Breytman | Dreamstime.comAccording to the charity, high rents are pushing some low income earners into poverty. An acute shortage of housing is pushing rents beyond the level that some people can afford, forcing them to cut back on spending in other areas, said the charity. Some are spending around a third of their income on rent and utilities, roughly double the average proportion of income spent on these things.

In Geneva, where the home vacancy rate is 0.42%, 8,000 people were on a waiting list for affordable housing in 2022 – 8,000 represents close to 2% of the population.

Those on waiting lists wait around two years for a place. A spokesperson for Caritas told

The number of babies born in Switzerland fell to 80,024 in 2023, a birth rate of 1.33 per woman, reported RTS. As recently as 2021, 89,644 babies entered the world in Switzerland. Between 2021 and 2023, the number has fallen nearly 11%.

Photo by Pixabay on Pexels.comIn 2023, the fertility rate in Switzerland reached an historic low after trending down over the last decade. A doctor at a medical clinic in Geneva said a drop of around 20% over recent years can be observed across clinics in Geneva. She said there has been a fall in births across Switzerland, Europe and in countries such as Australia and the US since 2022.

Why?

Falling birth rates seem to be linked to the challenges of juggling work, home life and parenting faced by many women. In addition, the rising cost of having

This week, Switzerland’s Federal Council decided to cut CHF 35 off the compulsory annual fee households must pay for public television and radio. The fee will fall from CHF 335 to CHF 300 by 2029, reported RTS.

The fee reduction will happen gradually, falling to CHF 312 in 2027 and then to CHF 300 in 2029. In addition, more companies will fall outside the criterion for paying the fee. The minimum annual turnover for qualifying will rise from CHF 500,000 to CHF 1.2 million. This will mean that around 80% of VAT registered companies will not need to pay.

The Federal Council hopes that the gradual licence fee reduction will give the public broadcaster time to implement savings measures.

SRG/SSR, Switzerland’s public broadcaster, currently receives CHF 1.3 billion annually. By 2029,

On 20 June 2024, the Swiss National Bank (SNB) has lowered its key interest rate by 0.25% to 1.25%.

© Deaconsdocs | Dreamstime.comAccording to Thomas Jordan, the head of the SNB, inflationary pressure has receded somewhat. The Swiss franc has recently appreciated against the Euro, reducing the price of imported good and services. If the franc appreciates it dampens inflation and this is included in inflation forecasts.

Jordan told SRF that the central bank wants to ensure that inflation remains within the target range over the medium term. Without this rate adjustment, there would have been a risk of inflation becoming too low in the future, something the bank wants to avoid.

Another driver of inflation is wage growth. According to Jordan, there is moderate wage growth in

Swiss cantons have very different tax bases, tax rates and spending. Until 2008, all cantonal taxes remained within cantons. Since then rich cantons have been required to support poor ones via the national financial equalisation mechanism. Next year, every French-speaking canton, with the exception of Geneva, will receive a financial boost from their wealthier German-speaking neighbours, reported the Federal Finance Administration (FFA) this week.

The wealthy canton of Zug © Avkost | Dreamstime.comTotal transfers next year will add up to CHF 6.2 billion, 4.8% more than this year. All the French-speaking cantons except Geneva will receive money. Overall, 18 out of Switzerland’s 26 cantons will get money and 8 will pay.

Over the recent year, economic disparities between Switzerland’s

This week, Switzerland’s Green Party started collecting signatures to launch a referendum. The vote would ask voters whether to accept a plan to force those renovating or constructing a new building to install solar panels, reported RTS.

Photo by MARIANNE RIXHON on Pexels.comThe Green Party says there are enough roofs in Switzerland to ween the country off imported fossil fuel and to avoid resorting to nuclear power. Currently, only 10% of roofs are being used for solar power production. Nadine Masshardt, head of the Swiss energy foundation, an organisation supported by the Green and Socialist Parties and an anti-nuclear group, thinks solar output could be increased five- to six-fold between now and 2035, while creating jobs.

Not everyone is enthusiastic about the initiative. The

In March 2024, as Switzerland’s month-on-month inflation rate went to zero and the annual inflation rate dipped to 1%, the Swiss National Bank (SNB) cut its key interest rate from 1.75% to 1.5%. Some expected the bank to keep cutting. However, in both April and May 2024, monthly inflation returned, making further imminent rate cuts less likely.

© Maticsandra | Dreamstime.comThis week, the Federal Statistical Office (FSO) published data showing consumer prices rising 0.3% during May 2024. At the end of May, consumer prices were 1.4% higher than at the end of May 2023, a rate within the range targeted by the SNB. 

However, 0.3% monthly inflation annualised is 3.6%. In addition, prices rose at the same rate in April 2024.

A key reason behind the recent surge in consumer prices is

Switzerland has one of the world’s tightest housing markets. Vacancy rates in cantons like Geneva (0.42%) and Zurich (0.53%) are extremely low. By comparison, the rate in New York City (1.4%) is around three times higher. The vacancy rate across Switzerland (1.15%) as a whole is lower than NYC.

© Fizkes | Dreamstime.comWith such a shortage of housing, one hope is that more family homes will come on the market as the population ages and people downsize. However, a report by Zurich University of Applied Sciences (ZHAW) published this week is not encouraging. Most empty nesters, parents whose children have grown up and moved out, are not planning to downsize.

The report is based on the results of survey of parents with adult children with an average age of 65. While 11% of this group

Rising health insurance premiums, which partly fund Switzerland’s healthcare system, are a key concern among Swiss voters. An initiative that aims to subsidise the premiums of those on low incomes will be put to voters on 6 June 2024. Had the vote taken place in April 2024, 56% of voters would have supported it. However, a recent poll now puts the percentage at 50%, making the result difficult to call.

Photo by Karolina Grabowska on Pexels.comWhy has support for the initiative faded?

The main reason appears to be concerns around how the plan will be funded. After a recent successful vote to increase state pensions by 1/12th, which was presented by many as affordable, attention quickly shifted to how to fund it. The inevitable answer was via tax increases, which the government plans

Switzerland’s federal government is spending more than it collects. To improve its finances it is looking for additional revenue and costs that it can cut. This week, the government decided to charge foreign students at its two federal universities, EPFL in Lausanne and ETHZ in Zurich, three times what they currently pay, reported SRF.

Ethz © Drserg | Dreamstime.comSwitzerland is one of the most affordable places to study for both locals and foreigners. Fees to study at EPFL and ETHZ are around CHF 1,500 a year – CHF 1,560 at EPFL and CHF 1,460 at ETHZ. The change will mean foreign students will still pay less than CHF 5,000 a year, a sum far lower than fees at equivalent universities in other countries. Arguments preceding the vote of 134 versus 61 centred on such international

More and more people in Switzerland want to work less, according to a study published by Swissstaffing, a placement agency umbrella organisation, reported SRF.

Photo by ELEVATE on Pexels.comA shortage of skilled workers is a perennial challenge in Switzerland. One potential solution is for part-time staff to work longer hours and extend retirement. However, reality is different. Swiss workers generally want to work less, and nearly half would like to change jobs, leaving employers with limited negotiating power.

According to the survey, Switzerland is the only nation where there are more workers who would prefer to work less than workers who want more work.

Why is this?

One reason is Swiss workers work relatively long hours by European standards. An average Swiss worker

This week, the price comparison website Comparis published an article containing estimates of health insurance premium rises next year. It expects premiums to rise by an average of 6% in 2025.

Swiss © Rochu2008 | Dreamstime.comDespite average premiums rising 8.7% in 2024, some insurance companies will have thin reserves by the the end of the year, forcing them to hike premiums in 2025, said the company.

Higher health care costs are behind the pressure to raise premiums, it said. Costs are likely to be 3.6% higher by the end of 2024, with a further rise of 3.2% expected in 2025. Why are costs rising? Mainly because the range of treatments continues to expand.

The 6% forecast rise in premiums for 2025 is an average. Some cantons could see premiums rise as high as 10%, said the

According to data from the State Secretariat for Economic Affairs (SECO), 106,957 people were registered as unemployed at the end of April 2024, 1,636 (-1.5%) fewer than in the previous month, taking the rate from 2.4% to 2.3%. However, unemployment remained higher (+0.3 percentage points) than it was at the same time in 2023.

Photo by Tim Gouw on Pexels.comAt the end of April 2024, youth unemployment (2.0%) and unemployment among those aged 50-64 (2.2%) were lower than the average (2.3%). The worst affected age group was those aged 25-49 (2.6%).

People in French- and Italian-speaking Switzerland were worse affected (3.3%) than German-speakers (2.0%), men (2.4%) were worse off than women (2.2%) and foreigners (4.4%) were harder hit than Swiss nationals (1.5%). Unemployment is a

The recent winter season was positive for Switzerland’s mountain resort lift operators. However, the picture was mixed with low altitude resorts missing out on much of the joy, reported Switzerland’s mountain lift association this week.

By the end of April 2024, the number of first-time visitors to Swiss ski areas overall was up 3% compared to the previous year, and up by 5% compared to the 5-year average.

Early snow in November and December combined with late snow in April extended the season at both ends, especially at altitude.

Early snow at low altitude in November and excellent weather conditions over Christmas, New Year and January ensured an excellent start to the season nearly everywhere. Warm temperatures in February and March were a challenge, especially for

The population is growing exceptionally fast in Switzerland. The nation draws many migrants from the EU and takes in proportionally high numbers of refugees. Over the last 20 years, the nation’s population has risen by 20%, far more than in France (10%), Austria (12%), Italy (3%) and Germany (2%) over the same period. In addition to these large inflows of people from outside, cantons with the highest growth rates have been exporting people to other cantons, according to figures published by RTS.

Photo by cottonbro studio on Pexels.comThe main regions with the highest population growth are the Lake Geneva region, Greater Zurich, parts of central Switzerland, and the region in and around Basel-City. The success of these regions has pushed people into more affordable (less insanely

After the successful vote to raise Swiss state pensions by one twelfth (a 13th month payment), the question of how to fund the extra CHF 4.2 billion a year required has been preoccupying many in Bern. This week, a parliamentary commission voted 13 versus 12 to postpone the question and to tackle it later during planned discussions aimed at reforming the pension system more generally, reported SRF.

© Hai Huy Ton That | Dreamstime.comMany behind the vote argued a 13th month pension payment could easily be funded. However, those trying to balance the books in Bern are scratching their heads. Switzerland’s federal budget is in the red and forecast to stay there for several years without new spending cuts or tax increases. In addition, despite current receipts exceeding outgoings,

After increasing for three quarters in a row, residential property prices in Switzerland fell during the first quarter of 2024, according to data from the Federal Statistical Office (FSO).

Photo by Louis on Pexels.comThe Swiss residential property price index (IMPI) fell by 1.0% in the period from January to March 2024. At the same time prices remained 1.5% higher than they were a year earlier.

The prices of both apartments (-1.3%) and single-family homes (-0.7%) contributed to the decline in the overall index compared to the previous quarter. Prices for single-family homes fell particularly significantly in large urban centres (-2.6%). In contrast, prices rose the most in smaller urban areas near large cities (+4.6%). The sharpest apartment price decline occurred in semi urban

Consumer prices in Switzerland increased by 0.316% in April 2024, rising 1.4% over the previous 12 months, reported Switzerland’s Federal Statistical Office (FSO) this week. However, annualised, the monthly rate comes to 3.79%, a rate well above the Swiss National Bank’s (SNB) preferred maximum of 2%.

Photo by Kampus Production on Pexels.comApril’s 0.3% monthly price increase was driven by several factors including rising prices for packaged holidays abroad (+6.7%), airfares (+3.4%) and fuel (+3.1%). In contrast, gas, wood pellets and hotels were cheaper.

Most of the monthly jump in prices came from imported goods, which accounted for 81% of monthly inflation. During April the Swiss franc was fairly stable against the euro ending the month close to where it started. However, the

This week, the Swiss National Bank (SNB) announced a record quarterly profit for the first quarter of 2024. The result was largely predicted after the SNB made a surprise interest rate cut, which led to a weaker Swiss Franc.

Switzerland’s central bank is unusual. It is privately owned (mainly by a German citizen) but distributes much of its profit to the nation’s cantons and federal government. This feature adds to the politicisation of monetary policy in Switzerland as it increases the likelihood voters and politicians view the bank primarily as a cash generator rather than the custodian of a stable inflation.

Bumper profits of CHF 58.8 billion in the first quarter of 2024 resulted mainly from a weakening Swiss Franc. Relative to the Euro, the Swiss Franc lost around 5% of its

Data published this week by the Federal Statistical Office (FSO) show a 2.5% rise in spending on healthcare in Switzerland in 2022. The increase is below the average rate of 3.2% over the five years before.

© Polly In | Dreamstime.comDuring 2022, Switzerland spent CHF 91.5 billion on healthcare, which is more than CHF 10,000 per person. Between 2021 and 2022, spending rose CHF 2.2 billion.

The largest cost components were hospital costs (32.6 billion), aged care (14.5 billion) and doctors’ surgeries (13.7 billion). Together these three made up two thirds of the costs. These were also areas of above average cost increases. Hospital (+2.6%), aged care (+3.0%) and doctors’ surgery (+3.2%) spending rose by more than the average (2.5%).

The funding of these costs showed no

The cost of healthcare and the compulsory insurance residents must pay to fund it continue to rise. In 2022, healthcare spending rose 2.5%. At the same time, dental care is not covered. Politicians from the Green Party would like it included in basic cover. However, parliament voted against the idea this week, reported RTS.

© Francisco Javier Zea LaraThe argument in favour of including dental care in basic insurance is that people on low incomes cannot afford the complimentary insurance that covers it or the direct cost of it. These people then avoid dental care and end up with related health issues, ranging from pneumonia to heart attacks and strokes.

However, this arguments failed to convince a majority of parliamentarians. 123 versus 62 voted against the idea.

In addition, a

A new study suggests that doctors and hospitals are overcharging by more than one billion francs every year, reported SRF.

Photo by Pixabay on Pexels.comSome in the medical profession have questioned the sum, which came from doctoral research done by Larisa Petrov. Petrov is a lawyer and head of legal at the consulting firm Blacklight Analytics. She did the research while working as a lawyer at Helsana Insurance

The excessive charges fall into two broad categories: overpriced treatments and the systematic invoicing of services that are not provided. For some categories of treatment, such as radiology, overcharging was calculated to be as high as 10-15%.

Petrov described the potential savings as enormous. They also appear to be in specific areas. Most service providers are billing

This week, a government proposal presented as an alternative to a referendum aimed at limiting healthcare costs was rejected by initiative organisers. This means the question will be put to voters.

© Alexey Novikov | Dreamstime.comThe initiative, which is supported by the Centre Party, would require actors in the healthcare system to agree on cost-cutting measures if healthcare costs grow significantly faster than wages and the economy – cost growth more than 20% higher than the nominal wage rises would be the trigger point. The nature of the cuts is not specified, which would give those involved full flexibility to make cuts that made the most sense.

Before votes are presented to voters, the government has an opportunity to put forward a counter proposal, which vote organisers may

Data published this week reveal Switzerland’s cantonal crime hotspot, a phenomenon connected to geography.

Basel Police © Neydtstock | Dreamstime.comIn 2023, after a sharp rise, the canton of Basel-City recorded the largest number of violent crimes and the highest per capita rates of theft and burglary. The rate of violent crime reached 13.2 per 1,000 residents in the city in 2023.

The number of property crimes, which includes theft and burglary rose to 21,329 in 2023, a figure 18% higher than in 2022.

The canton of Basel-City borders France and Germany. This means there are numerous points where someone can flee cross the border into a neighbouring country. An expert told SRF this makes it easy to escape after committing a crime. Basel Police cannot follow criminals across the

A study published this week by the Federal Statistical Office (FSO) shows nearly 1 in 10 (9.9%) people in Switzerland has trouble making their money last until the end of the month. And, 4.9% had to go without goods, services or social activities due to a lack of money. The study is a European comparison of life satisfaction and draws on data from 2022.

Photo by Andrea Piacquadio on Pexels.comDespite the financial challenges faced by some, Switzerland had the highest average life satisfaction rating in Europe. The average rating was 8.0 out of a maximum of 10, well above the EU average of 7.1. The lowest rating was in Bulgaria (5.6). Switzerland was also well ahead of most of its neighbours. Austria (7.9) was close. However, Italy (7.2), France (7.0) and Germany (6.5) were

Alliance Swisspass, an organisation that stitches together Switzerland’s various public transport providers to create tickets and passes that work across the network, announced this week that there would be no ticket price increases in 2025, reported SRF.

© Woj231 | Dreamstime.comA recent rise in the number of people using the network is bringing in more revenue. This is helping to reduce the need to raise prices, said the organisation. In addition, Alliance Swisspass said that the sector wants to temper prices to entice more people to use its services.

The last time prices rose was a shock to some. Towards the end 2023, when train timetables were adjusted, ticket prices were raised by an average of 3.7% after remaining unchanged for 7 years. In addition, there were suggestions