Switzerland to Cut F-35 Fighter Jet Order Amid Push for VAT Hike to Fund Army

Switzerland’s air defense strategy has hit a critical financial ceiling. In a decisive move, the federal government announced it will slash its acquisition of US-made F-35A fighter jets from 36 to approximately 30. The reason is stark and undeniable: soaring inflation and aggressive price hikes from Washington have made the full fleet financially untenable. Defence Minister Martin Pfister confirmed that securing the original 36 aircraft would have demanded an additional CHF 1.1 billion—a cost Bern is unwilling to bear.

Instead, the government is requesting a supplementary credit of CHF 394 million just to secure the reduced fleet of 30 jets. This maneuver keeps the procurement within the indexed spending cap of CHF 6.429 billion authorized by voters. While Pfister acknowledges that a smaller fleet compromises operational capacity and endurance during conflict, he declared the matter closed: "The F-35 question is settled today." This reduction highlights the brutal reality of the international arms market, where raw material surges and energy costs are dictating the terms of Swiss neutrality.

While the jet order shrinks, the bill for national security is skyrocketing. Bern is doubling down on a contentious strategy to inject a staggering CHF 31 billion into the armed forces, financed directly by the Swiss taxpayer. The government is pushing ahead with a bold proposal to raise the Value Added Tax (VAT) by 0.8 percentage points for a full decade, starting in 2028. This revenue is destined for a newly created "armament fund," designed to shield the country from modern hybrid threats.

The urgency is palpable. "The global security situation... has deteriorated," the government warned, citing the war in Ukraine and escalating tensions in the Middle East. However, this massive capital injection faces a steep uphill battle. Opposition is fierce, with only the Centre party currently backing the plan. The proposal requires a constitutional amendment and must survive a grueling consultation period before facing the ultimate test: a national referendum expected in mid-2027. If passed, the fund would allow borrowing up to CHF 6 billion to speed up procurement, challenging the rigid constraints of the Swiss "debt brake."

The Swiss shield is showing cracks. In a revealing admission of vulnerability, the government confirmed that the delivery of five Patriot missile units from the United States is now delayed by a critical four to five years. Washington has reprioritized these assets for Ukraine, leaving Switzerland waiting in line. This delay exposes the fragility of relying on a single supply chain in a volatile geopolitical era.

Bern is not sitting idle. To bridge this dangerous gap, the military is now actively scouting for a second, European surface-to-air defense system. This pivot aims to reduce dependence on the US and ensure immediate availability. The government explicitly stated that the country is "not sufficiently equipped" to counter long-range attacks and hybrid warfare. With the Patriot systems stalled, the race is on to secure a European alternative that can integrate with the delayed American hardware, ensuring the Alpine nation isn't left defenseless against threats from a distance.

The stage is set for a defining political showdown in 2027. The government's ambitious rearmament plan hinges entirely on the will of the people, and the outcome is anything but guaranteed. By linking the CHF 31 billion defense boost to a direct VAT hike, Bern has turned national security into a question of household economics. The electorate must decide if the looming specter of "hybrid aggression" justifies a decade of higher taxes.

This referendum will be a litmus test for Swiss neutrality in the 21st century. Defense Minister Pfister argues that the Alpine country can no longer afford to be complacent, painting a grim picture of a world where espionage, cyberattacks, and distant wars bleed across borders. However, with heavy criticism already mounting against the VAT hike, the government must convince a skeptical public that the price of safety is worth the hit to their wallets. As the 2027 vote approaches, the debate over the cost of the Swiss Army is poised to become the most divisive issue in the federal landscape.