Swiss Government Revises Federal Austerity Measures

Federal Council reduces planned spending cuts to CHF 3.1 billion by 2029 following cantonal pressure and political opposition

The Federal Council reduced its planned spending cuts from CHF 3.6 billion to CHF 3.1 billion by 2029.
The government dropped the plan to separate the budgets of the federal administration and the AVS/AHV.
Proposals to alter the tax treatment of lump-sum withdrawals from 2nd and 3rd pillar pensions have been shelved.
Existing subsidies for regional and local media will be maintained.
Financial equalisation mechanisms and payments to cantons remain intact.

CHF 3.1 billion

Revised total savings target by 2029

CHF 2.4 billion

Expected savings in 2027

CHF 100 million

Reduction in savings due to AVS/AHV decision

CHF 3.6 billion

Original savings target (January)

"The Federal Council announced revised savings targets, lowering the total volume of planned cuts to CHF 3.1 billion by 2029."
— Le News Report

Bern Blinks: Austerity Ambitions Curtailed

The Federal Council reduced its planned spending cuts from CHF 3.6 billion to CHF 3.1 billion by 2029.
The government dropped the plan to separate the budgets of the federal administration and the AVS/AHV.
Proposals to alter the tax treatment of lump-sum withdrawals from 2nd and 3rd pillar pensions have been shelved.
Existing subsidies for regional and local media will be maintained.
Financial equalisation mechanisms and payments to cantons remain intact.