On Wednesday, farmers came together in Bern to protest against planned cuts to subsidies, reported RTS.

Photo by Sergio Zhukov on Pexels.comBecause of the way farming is structured in Switzerland, farmers are heavily reliant on the support of tax payers to make ends meet.

The federal government, which is running and projecting fiscal deficits, has come up with ways to cut spending. According to the government, the cuts are spread across the board, which includes savings on the amounts it spends supporting farmers. The government plans to cut several hundreds of million francs from farm subsidies from 2025 to 2029.

However, the Swiss Farmers’ Union and other groups representing farmers argue that the agricultural sector is not responsible for the fiscal deficits and should

Consumer prices at the end of September 2024 were only 0.8% higher than the were at the end of September 2023, reported Switzerland’s Federal Statistical Office (FSO) this week. This is the lowest annual rate of inflation since July 2021.

Photo by Connecting Flights Guide on Pexels.comConsumer Price Inflation (CPI) dropped by 0.3% during the month of September 2024. The recent monthly decline was driven by the falling price of international travel, both in terms of airfares and hotel expenses. In addition, the prices of petrol, diesel and heating oil fell. These declines exceeded rising fruit and berry prices, the main source of inflation.

Across 12 months, the price of imported goods, which have benefited from the strength of the Swiss franc, have declined in price by 2.7%. Over

This week, two PLR/FDP parliamentarians proposed increasing the price of the motorway vignette required to drive on the Swiss motorway network, reported SRF.

© Stefano Ember | Dreamstime.comThe two politicians making the proposal are from the cantons of Schwytz and Ticino, two cantons affected by the heavy traffic passing through the Gotthard tunnel, one of the key north-south connections through the Alps. The proposed higher vignette cost is aimed at deterring foreign road users from choosing Swiss roads to connect with Italy.

Heinz Theiler says the Swiss motorway vignette at CHF 40 is far too cheap. Swiss transport infrastructure was financed by taxpayers to generate economic income, not cheap transit for European tourists in cars.

The motion submitted to the National Council,

This week, Elisabeth Baume-Schneider, Switzerland’s Health Minister, announced health insurance premiums will rise by an average of 6% in 2025 to CHF 378.70 a month. However, the range of the increase varies from 1.5% to 10.5% depending on the canton of residence.

© Alexlmx | Dreamstime.comAccording the minister, the increase is driven by rising health care costs and inflation. Another driver is the changing age structure of Switzerland’s population. Older people require significantly more care than younger people, who make up a shrinking percentage of the population. New drugs and treatments are also adding to the cost.

The government has been trying to implement cost saving measures for many years with little to show for it. According to Baume-Schneider, a proposal for uniform

On 26 September 2024, The Swiss National Bank (SNB) announced further eased its monetary policy by lowering its key rate for the third time in a row by 0.25% to 1%.

SNB Bern © SNBThe SNB started cutting its key rate before the European Central Bank (ECB) and the US Federal Reserve (Fed). It first cut the rate in March 2024 from 1.75% to 1.50%, then again in June 2024 to 1.25%, and then this week to 1.00%. The Fed made its first cut in September 2024 from 5.25% to 5.00%. While the ECB cut for the first time in June 2024 from 4.00% to 3.75%, following with a further cut to 3.5% in September 2024.

Inflationary pressure in Switzerland has fallen significantly of the recent quarter, something driven largely by a strong franc and falling oil and electricity prices, according to the bank.

On 22 September 2024, the Swiss will vote on two popular initiatives. The first is the biodiversity initiative “For the future of our nature and our landscape”. The second is on a plan to reform Switzerland’s occupational pension system.

Photo by Andrea Piacquadio on Pexels.comReform of Switzerland’s pension system is an increasingly pressing issue given the predictable demographic shift underway.

Occupational pensions (2nd pillar) are pots of money built up from salary deductions. Eventually, when workers retire, the pension sum is used to pay a regular amount based on the total in the former employee’s account. These regular pension payments are known as annuities. The problem is that the current annuity rate is based on shorter life expectancy and higher interest rates. With

This week, Switzerland’s parliament voted in favour of spending an extra CHF 4 billion on the nation’s military, bringing annual military expenditure to 1% of GDP earlier than planned, reported RTS. The extra CHF 4 billion will bring the total budget to CHF 30 million spread across the period from 2025 to 2028.

Data published this week by Switzerland’s Federal Statistical Office (FSO) show a decline in the number of vacant homes, both to buy and rent in Switzerland.

Photo by Ksenia Chernaya on Pexels.comOn 1 June 2024, there were 51,974 empty homes in Switzerland, representing 1.08% of the country’s total housing stock. The number was down by 2,791 (-5.1%) compared to the number a year earlier.

The drop in vacant homes follows three years of declines. In 2020, there were 78,832 vacant homes across the country, 52% more than there were in June 2024. In 2020, the vacancy rate was 1.72%. The last time the rate was as low as 2024 (1.08%) was in 2014 when it was 1.07%.

The cantons of Zug (0.39%), Obwalden (0.44%) and Geneva (0.46%) had the lowest vacancy rates in 2024. Cantons with the

A survey report published this week shows that the population of Switzerland increasingly sees immigration as a challenge and desires political action.

© Alexander Sorokopud | Dreamstime.comOverall, while the economic and cultural effects of immigration are viewed positively, the strains on infrastructure, housing and the environment are viewed negatively. In addition, negativity towards immigration is showing among groups that were once friendly to immigration, said the authors.

Switzerland’s population would like more open discussion about the challenges and potential solutions to the rising influx of people. The population is broadly torn between the desire to limit immigration and the strains it places on the system, and the support it provides to economic growth by supplying

This week, Swiss Rail published its half-year results. During the first six months of 2024, the company made a profit of CHF 50.8 million, a level far below what is required for it to operate comfortably and service its debt.

Swiss Rail © Sergiomonti | Dreamstime.comAs a rule of thumb, to remain in good financial shape the company needs to make a profit CHF 500 million annually, which would mean CHF 250 million over six months, roughly five times the recent six month result.

The main areas of difficulty faced by the rail operator are the poor performance of its freight division and the high costs of maintaining regional networks.

Freight transport recorded a loss of CHF -42.6 million, significantly below the CHF -18.0 million recorded durning the first six months of 2023. A

Switzerland’s federal government is spending more money than it collects in taxes. This week, a federal commission set out options for spending cuts, reported SRF. The problem is than some of them would involve less federal money going to cantonal governments.

Bern © Victor Torres | Dreamstime.comSwitzerland’s Finance Minister Karin Keller-Sutter hopes to break the deadlock around balancing the federal budget. To do so, she has called on a group of experts for advice.

This week, a group led by Serge Gaillard, a former trade unionist and director of the federal financial administration presented its suggestions. According to the group, taking on more debt is out of the question and something that was not looked at in any detail. It advises instead to focus primarily on cutting

Since 1990, the cost of travel by car has risen 24%, while travel by public transport has leapt by more than 100%, reported SRF.

© Hai Huy Ton That | Dreamstime.comSince 1990, fuel prices and car prices have fallen, while the cost of tickets to ride public transport have consistently risen.

According to Stefan Meierhans, Switzerland’s chief price watchdog, the rising cost gap is creating the wrong incentives. Why take a train when a car is cheaper?

Another challenge is the way the cost falls on the user. Once someone has decided to buy a car and has insured it, the marginal cost of driving it is fuel. Train travel, by comparison, has a high marginal cost, unless you buy an all-you-can eat pass. However, most don’t use the network enough or travel far enough to warrant buying one

Electricity prices will fall across most of Switzerland next year. The average price drop across the country will be around 10%. However, the drop will vary by location and prices will rise in a few regions, reported RTS.

Electricity Meter © Fluffthecat | Dreamstime.comIn some places the price will drop by more than 20%. In a few it will rise by more than 30%.

The 10% average price drop follows hikes of 27% in 2023 and 18% in 2024, a total jump of around 50%. Average savings in 2025 for a household consuming 4,500 kWh a year should amount to around CHF 140.

How expensive is electricity in Switzerland?

It depends. Prices in 2025 will range from 9.05 cents per kWh to 45.85 cents. So while one lucky household will spend around CHF 400 next year on electricity, another less

Last week, the government in Bern broadly supported a plan to force all property owners to contribute to the cost of earthquake repair. This week, a Swiss homeowners association rejected the idea, reported SRF.

Earthquake © Olga Demina | Dreamstime.comThe government plan is a response to the attitude of many home owners towards insurance. Only 15% of buildings are insured against earthquakes in Switzerland, a nation at risk, according to a government estimate. If some homeowners won’t step up and pay for earthquake insurance then they should all be forced to pay when an earthquake hits whether their building is damaged or not, is the logic. Some politicians view the scheme as innovative. There are no premiums but instead a (big) bill when an earthquake hits – 0.7% of a property’s

This week, Switzerland’s federal government announced future increases to state pensions, disability benefits and family support benefits, reported RTS.

© Swisshippo | Dreamstime.comThe 2.9% increase is the first adjustment since 2009. It means monthly pension and disability payments will rise on 1 January 2025 by between CHF 35 and CHF 70, depending on the level of salary based contributions.

Family support benefits will rise by CHF 15 a month for young children and by CHF 18 a month for older children in education.

The increases might not seem significant. However, their annual funding cost will be around CHF 1.9 billion. Roughly 80% of the rise will be paid for out of the fund funded by payroll taxes. The remaining amount will be covered out of federal taxes.

More on

Over time, salaries increase with inflation. However, if tax deductions and allowances are not adjusted the percentage of income taken in tax rises, a phenomenon known as tax creep or fiscal drag. Given recent inflation, Switzerland’s federal government announced this week that it was increasing allowances and deductions, reported SRF.

Photo by Pixabay on Pexels.comFrom 2025, the child and support allowances will rise from CHF 6,700 to CHF 6,800. And married couples will start paying federal taxes when their combined annual income reaches CHF 29,700 instead of the current level of CHF 29,300. Those investing in career training will be able to deduct up to CHF 13,000, CHF 100 more than today.

The sums are small, but the government is at least sending a signal that it is concerned

Switzerland sometimes feels like the land of insurance. Numerous costs that are covered by taxes in many places come instead in the form of compulsory insurance in Switzerland. However, some risks remain uncovered by compulsory insurance. Earthquakes are one such risk. This week, a plan to force all property owners to contribute to the cost of earthquake repair received broad support in Bern.

© GoranJakus | Dreamstime.comOver the years, Switzerland’s federal government has tried and failed to introduce some kind of country-wide earthquake insurance. Switzerland has fault lines running through it and is at risk of earthquakes. Many other risks to real estate are well covered. Some cantons make insurance for weather and fire damage compulsory. And while earthquake insurance is available

Switzerland’s economy grew slightly more than expected in the second quarter of 2024, reported SRF.

Photo by ThisIsEngineering on Pexels.comBetween April and June 2024, Gross domestic product (GDP) rose by 0.5%. A survey of economists had expected growth for the quarter to be between 0.2% and 0.4%.

The biggest driver of growth during the quarter came from industry, which grew at a faster rate than the service economy.

Second quarter growth (+0.5%) outstripped growth in the first quarter of 2024 (+0.3%) by 0.2 percentage points.

The Q2 growth figures are not definitive. Switzerland’s State Secretariat for Economic Affairs (SECO) provides early flash estimates, which contain an element of forecasting. More definitive data will be presented on 3 September 2024 and may differ from

In March 2024, 58% of voters voted in favour of paying an additional 13th month of state pension. That triggered a fierce debate on how to fund it. This week, Switzerland’s Federal Council said it planned to fund the increase with higher VAT with no rise in salary taxes.

Photo by Centre for Ageing Better on Pexels.comThe news was delivered by Elisabeth Baume-Schneide, Switzerland’s minister of internal affairs, a role that covers pensions. The Federal Council’s argument for funding higher pensions entirely with a VAT increase is centred on ensuring that everyone, including pensioners contribute to their funding rather than increasing the burden more exclusively on those working, reported RTS.

The Federal Council also decided to reduce the annual percentage it contributes to the

Currently, payments between Swiss bank accounts are typically processed the following day. From 20 August 2024, Swiss banks will start to roll out instant payments within Switzerland, reported RTS.

Photo by Andrea Piacquadio on Pexels.comThe new instant payment system will move money within 10 seconds and will operate around the clock seven days a week. In addition to speed, the payments will be cheaper than paying by card – cards typically charge merchants interchange fees, something created by card companies to incentivise banks to issue cards.

From 20 August, many banks will be able to offer this new form of payment and most are expected to roll it out by the end of 2024. Smaller banks operating in Switzerland will have until the end of 2026 to add this new rapid form of

This week, an error was found in the government’s calculation of the future hole in state pension funding. While the error, which overstates the shortfall by CHF 4 billion, is substantial, it does not change the trend, according to Stéphane Rossini, head of the Federal Statistical Office (FSO), reported RTS.

Swiss Francs © Boris Bascarevic | Dreamstime.comThe CHF 4 billion error is highly embarrassing for the government, which has used the figures to argue in favour of pension reform, including a successful referendum to lift the state retirement age for women to 65 in line with that of men.

Since the mistake was discovered, the Green and Socialist Parties have called for a re-run of the 2022 vote that lifted the state retirement age for women from 64 to 65, arguing the result might

Switzerland’s health system is under strain. New drugs and treatments combined with an ageing population, along with cost inflation are the main drivers. This week, KPMG published a report quantifying the hole in Switzerland’s hospital finances.

Photo by Anna Shvets on Pexels.comOnly 30% (14) of the 48 hospitals and clinics surveyed reported generating a profit. The other 70% were running at a loss. Extrapolating the results of this sample across all Swiss hospitals and clinics suggests a total accumulated loss of around CHF 1 billion for 2023, said KPMG. Generally, hospitals seem to have failed to recover financially from the pandemic.

Hospitals are facing higher operating costs. Overall, costs have grown by 17% in the last five years. Staff costs rose by 8% in 2023 alone, the

Under international pressure, Switzerland removed banking secrecy for foreign residents in 2009. However, laws ensuring bank secrecy for residents of Switzerland remain. Some politicians are now calling for the removal of all banking secrecy laws in the hope that it will increase tax revenue, reported RTS.

© Denis Linine | Dreamstime.comWith Switzerland’s federal government budget in the red politicians are looking for ways to improve the bottom line.

An estimated CHF 500 billion of bank deposits belonging to Swiss residents are not reported in Swiss tax returns. Several calculations support this figure, according to Marius Brülhart, a professor at Lausanne University.

However, some think there is little to be gained from removing bank secrecy. Automatic withholding tax of 35%

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,