Switzerland Accelerates Military Modernization with F-35 Payment and New Defence Talks

A staggering CHF 500 million has just crossed the Atlantic as Switzerland cements its commitment to the F-35A stealth fighter program. This massive advance payment, confirmed by armasuisse chief Urs Loher, is a calculated move to keep the nation’s military modernization on life support. By flooding the joint US funding account with cash, Bern is desperately trying to ensure that spare parts for its aging F/A-18 fleet continue to flow while awaiting the arrival of the next-generation jets. The stakes are unprecedented; any further delay could ground the Swiss Air Force entirely. While the first F-35A began assembly in May 2026, the government has been forced to slash its order from 36 to 30 aircraft after Washington hiked prices, citing rampant inflation and surging raw material costs. This is no longer just a procurement project—it is a race against time to maintain Swiss sovereignty in an increasingly volatile European airspace.

Switzerland is officially hunting for a second long-range air defence system, aggressively pivoting toward France, Israel, and South Korea to break its total reliance on American hardware. This dramatic shift comes after the US Patriot missile program—for which Bern has already paid nearly CHF 700 million—slumped into a four-to-five-year delivery delay. The Federal Council is no longer willing to wait. By initiating contract negotiations with European and Asian manufacturers, the Swiss government is sending a clear message to Washington: Swiss security cannot be held hostage by a single supply chain. The 'deteriorating security situation' in Europe demands immediate action. While the US recently circumvented a Swiss payment freeze by redirecting F-35 funds to cover Patriot costs, Bern is now doubling down on a strategy of diversification. This new system will complement the delayed Patriots, ensuring that the Swiss plateau is shielded from long-range threats by multiple, redundant technologies.

Swiss taxpayers are staring down the barrel of a historic 9% VAT rate as the government grapples with the astronomical costs of rearmament. In a strategic retreat, the Federal Council has trimmed its proposed VAT increase from 0.8 to 0.5 percentage points, but extended the levy’s duration to 12 years. This move aims to generate a massive CHF 24 billion earmarked exclusively for national security. Defence Minister Martin Pfister is pulling no punches, declaring that restoring the army’s defensive capabilities is impossible without this fresh revenue stream. However, the political friction is palpable. This tax hike must survive a mandatory nationwide referendum and secure a double majority of cantons. If passed, it will coincide with a separate VAT increase for the 13th AHV pension payment, pushing the standard rate to its highest level in Swiss history. The government is betting that the public's fear of external threats will outweigh the pain of a higher cost of living.

Standing on the historic grounds of Sempach, Defence Minister Martin Pfister issued a clarion call for national unity that resonated across the Confederation. Exactly 640 years after the victory over the Habsburgs, Pfister warned that decades of peace have 'blurred our sense of reality' regarding modern threats. The message is clear: the era of the 'peace dividend' is over. Switzerland now finds itself at a decisive historical crossroads, where neutrality must be backed by credible, modern force. The government’s push for a debt-financed defence fund and accelerated procurement is not just about hardware; it is about a fundamental shift in the Swiss psyche. As the country prepares for a series of high-stakes referendums on military funding, the debate is no longer about whether to modernize, but how fast and at what cost. The coming months will determine if the Swiss spirit of 'shared stories and memories' can translate into a unified front against 21st-century hybrid and long-range threats.