Higher army spending and cuts in development aid agreed
Published: Thursday, Dec 19th 2024, 12:30
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The federal budget for 2025 has been signed and sealed and complies with the debt brake requirements. Parliament has allocated around half a billion francs more for the armed forces than the Federal Council wanted. However, cuts are being made to international cooperation and federal personnel.
Both chambers approved the proposals of the unification conference on the budget on Thursday. They cut CHF 110 million from foreign aid in favor of the army. The Unification Conference had to get down to work because the chambers were unable to agree on the cuts to foreign aid and other budget items.
No savings in agriculture
In addition to foreign aid, federal personnel must make a contribution to compensate for higher military expenditure. The councils had already agreed earlier on a cross-sectional cut of CHF 40 million. And the Federal Personnel Office has 30 million francs less at its disposal for salary measures.
In contrast to the Federal Council, Parliament does not want to make savings in agriculture. The Councillors budgeted around CHF 42 million more than the Federal Council would have wanted. Around CHF 2.8 billion has now been approved for this. Cuts will also be made to the federal asylum centers and social assistance for asylum seekers.
The funds for the army will be increased by CHF 530 million. The Councils also agree to increase the army budget to one percent of gross domestic product (GDP) by 2032. This is what the Council of States and the Unification Conference had proposed. The National Council had initially wanted to achieve the target by 2030, the Federal Council by 2035.
The budgeted federal expenditure totals CHF 86.5 billion and revenue CHF 85.7 billion. The budget is CHF 29.4 million below the debt brake requirements.
"Not our budget"
The conservatives were satisfied that the budget complied with the debt brake requirements despite additional expenditure on the army. The left wing of the Council was critical. "This is not our budget," they said. The GLP also criticized the cuts in foreign aid.
Tamara Funiciello (SP/BE) saw red lines being crossed. The entire downsizing exercise had had to take place because of the armament of the army. "Other areas have to bleed more than necessary," she said, referring to the leeway in the debt brake. Irène Kälin (Greens/AG) said that measures for the energy transition had also been put on the back burner because of the increase in the army.
Lars Guggisberg (SVP/BE) replied that the cutbacks in foreign cooperation did not mean the end of humanitarian Switzerland. It was right and important to correct the neglect of the army now. The leadership of the army must now move forward in order to quickly restore its defense capability.
Difficult years expected
The FDP and centrists were also satisfied. Pius Kaufmann (Center/LU) noted that the main guideline for budgeting, i.e. adhering to the debt brake, had been achieved. The decisions of the last sessions were also reflected in the 2025 budget.
Alex Farinelli (FDP/TI) stated that around 0.7 percent of federal expenditure was up for debate. This raised fears of major problems if more money was needed in the future. However, the increases planned for defense in the coming years have not yet been financed, warned Josef Dittli, member of the FDP Council of States from Uri.
Councillor of States Mathias Zopfi (Greens/GL) concluded that the councillors were overly impressed by the threat to shoot down any compromise during the budget discussions.
Debt brake complied with
All parties involved have shown the political will to come together, said Finance Minister Karin Keller-Sutter. 2025 is settled. "But the coming years will be challenging." This is because the army's growth has not yet been financed.
With the goal set by Parliament to increase military spending to one percent of GDP by 2032, an additional CHF 600 million will be needed in 2026. An additional CHF 800 million would be needed for the 13th AHV pension.
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