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This week, modelling published by the Zurich Office for Economic Affairs, shows a significant shortage of workers emerging in the canton by 2050. Photo by Valentin Angel Fernandez on Pexels.comWithin 25 years, Zurich will have tens of thousands of workers less than it needs, despite a growing population. The modelling shows that as more people retire from the workforce than enter it, a gap will open up. According to the authors, immigration will not solve the problem because the shift...

In 2023, Swiss voters accepted a plan to provide subsidies to replace oil and basic electric heating with cleaner more efficient heating, such as electric heat pumps. The plan involved spending CHF 200 million a year on such incentives over a 10-year period starting on 1 January 2025. However, Switzerland’s federal parliament decided in December 2024 to cut the quantum of the subsidies in 2025 by one quarter, reported RTS. Photo by alpha innotec on Pexels.comThis belt tightening by...

The Swiss National Bank (SNB), Switzerland’s central bank, has a narrow role: to ensure price stability, which means managing inflation. Sometimes in the course of this task it generates a profit. For the year ended 31 December 2024, the SNB made a profit of CHF 80 billion, of which CHF 3 billion will be paid to federal and cantonal governments. © Tamer Adel | Dreamstime.comFor many years, the SNB reliably paid a share of its profits to the government. The government, particularly those...

Until 31 December 2024 it was possible to enter Switzerland with CHF 300 of shopping per person per day without paying Swiss VAT. From 1 January 2025, the limit is CHF 150 per person per day. Carrefour © Viorel Dudau | Dreamstime.comThe Federal Council decided in October 2024 to cut the tax-free limit, despite negative reactions from many consumers and consumer associations. Politicians in some of the border cantons, St. Gallen and Thurgau in particular, have long lobbied for a...

After a stalemate last week, Switzerland’s federal parliament and upper house found a way forward this week on the abolition of imputed rent that both houses could agree on, reported SRF. Photo by Thomas P on Pexels.comFor more than seven years, the National Council and the Council of States have been discussing how to do away with the imputed rent, which is an amount added to the taxable income of homeowners. Now, after a lot of back and forth, the two houses have finally agreed on a way...

Every year, the bank UBS publishes its Worry Barometer, a poll that ranks the greatest concerns among Swiss voters. This week, it released the results for 2024. This year’s top concerns are healthcare, environmental and climate protection and retirement provision. Photo by Marcus Aurelius on Pexels.comPolling for the survey conducted from mid-August to mid-September and included the views of 2,250 voters. The survey revealed a rise in financial concerns. Financial uncertainty and...

In 2022, Swiss voted to increase the official retirement age of women from 64 to 65, bringing it into line with the age for men. Later, an error was found in some of the numbers presented to voters to justify the change. After the error was revealed, the Socialist and Green parties asked Switzerland’s highest court to overturn the vote because of these erroneous figures. This week, the court rejected the complaint, reported RTS. Photo by Matthias Zomer on Pexels.comThe federal court’s...

A project to end Switzerland’s controversial system of imputed rent was launched more than seven years ago. This week, discussions in Bern suggest the project’s chances of sucess remain narrow. Photo by Melike Benli on Pexels.comIn Switzerland, anyone who owns a property retained as a primary or secondary residence must add a fictional rent to their taxable income, which is calculated based on the location and size of the property. The system was introduced during the second world war to...

On Thursday, Switzerland’s federal parliament accepted a budget for 2025 by 120 versus 73 votes, reported RTS. Opposing votes came from politicians on the left, who make up a large minority in Switzerland’s lower house. Photo by Louis on Pexels.comIncluded in the budget were an increase in military spending, cuts to farm subsidies and large cuts to international aid. Increases in state pensions, known as an extra 13th month, will go ahead as planned starting in 2026. Spending on...

New data show that tourism accounts for 25% of the total traffic on Swiss roads, reported SRF. The Federal Council report shows that leisure and tourism account for 53% of passenger road traffic, with the other 47% made up of commuting to and from work. Photo by Pixabay on Pexels.comRegular leisure traffic by residents of Switzerland accounted for 27% of road traffic, 12% was locals engaging in tourism, 13% foreigners travelling for tourism and 47% commuting. The remaining 1% is...