by © | Dreamstime.com The coronavirus is set to knock a CHF 1 billion hole in Switzerland’s federal budget for 2021, according to a press release. Without the virus the budget was CHF 2.2 billion in the black. Post virus the budget is now CHF 1 billion in the red. The virus is expected to add ...
Topics:
Investec considers the following as important: 3) Swiss Markets and News, 3.) Investec, Featured, newsletter
This could be interesting, too:
Vibhu Vikramaditya writes Navigating the Slippery Slope: How Hoover’s Interventions Paved the Way for the Great Depression
Ryan McMaken writes Frédéric Bastiat Was a Radical Opponent of War and Militarism
Douglas French writes Millennials: In Costco We Trust
Vasil Georgiev writes Luftfahrtindustrie: Rückblick auf 2023 und Prognose für 2024
© | Dreamstime.com
The coronavirus is set to knock a CHF 1 billion hole in Switzerland’s federal budget for 2021, according to a press release.
Without the virus the budget was CHF 2.2 billion in the black. Post virus the budget is now CHF 1 billion in the red. The virus is expected to add CHF 2.0 billion to next years spending. The extra money is earmarked for SARS-CoV-2 tests, business loan guarantees and support to the sports sector.
The Federal Council is confident that the extra money borrowed to cover Covid-19 expenditure can be paid back without raising taxes.
Switzerland’s federal spending is constrained by a mechanism known as the debt brake. The mechanism allows some flexibility to account for business cycles. The brake allows a temporary deficit of up to CHF 3.3 billion, however, deficits today reduce the scope for deficits in the future.
The government will make a definitive decision on the budget over the summer and decide on future Covid-19 debt repayments at the end of the year.
You Might Also Like
Swiss salaries rise faster than inflation for the first time in 2 years
In 2019, Swiss salaries were on average of 0.9% higher than the year before. A nominal rise of +0.9% combined with low inflation of 0.4% delivered a real boost of 0.5% to someone earning an average salary in Switzerland.
Swiss retail sales up 30 percent in May after COVID-19 measures eased
Recently published figures show a overall jump of 30.2% in retail sales in May 2020 compared to April 2020. May’s rise of 30.2% follows falls of 6.5% in March and 13.7% in April.
UBS raises USD 440 million for Rockefeller sustainable investment fund
Zurich, June 24 2020 – UBS is investing in Rockefeller Asset Management’s Global Environmental, Social and Governance (ESG) Equity fund, broadening the sustainable investment opportunities that it offers to clients. UBS, the world’s largest global wealth manager, has allocated directly to the fund through its 100% sustainable multi-asset portfolio, which surpassed USD 10 billion in size earlier this year.
SwissCovid app now available for download
On 25 June 2020, Switzerland’s contact tracing app, known as SwissCovid, became available for download. Created by a group of specialists at EPFL led by Marcel Salathé, a professor of digital epidemiology, the app allows chains of infection to be traced by informing people if they have been in contact with anyone infected. Countries, like South Korea, that have done a good job of this have been able to quickly isolate infected people and halt the spread of the virus.
Audit office denies ‘mass phenomenon’ of Covid-19 credit abuse
An interim report on government pay-outs to businesses during the Covid-19 crisis has revealed that there is suspected abuse in less than 1% of cases. Тhe Federal Audit Office investigated some 94,000 coronavirus loans amounting to CHF11.4 billion ($12 billion). It found indications of abuse in about 400 cases, which amounts to about CHF88 million in guarantees.
Swiss government extends coronavirus economic support
The Federal Council is extending short-term unemployment benefits by another six months and plans to help cushion financial losses faced by public transport. On Wednesday, the government announced that it is extending the maximum period for receiving partial unemployment support from 12 to 18 months to counteract a rise in unemployment.
New cars on Swiss roads failed to meet emissions targets
Fuel consumption and emissions limits for new cars in Switzerland missed their target in 2019 for the fourth year in a row. This resulted in sanctions totalling CHF78 million for car importers.
Novartis pays big fine for bribing doctors in the US
Swiss pharma company Novartis will pay $729 million (CHF688 million) to US authorities in an out-of-court settlement over various charges, including that the company bribed doctors to use its drugs.
Tags: Featured,newsletter