Council of States approves budget compromise
Published: Thursday, Dec 21st 2023, 09:01
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The Federal Assembly is one step closer to reaching an agreement on the 2024 budget. On Thursday morning, the Council of States approved the compromise proposal of the conciliation conference. The National Council had yet to reach a decision.
The small chamber adopted two federal resolutions on the budget by 31 votes to 12 with two abstentions and 33 votes to 11 with no abstentions. The most controversial issues between the two chambers were the Swiss contribution to the UN Palestinian Relief and Works Agency (UNRWA), the promotion of business locations in the regions and the pace of the increase in military spending.
The Federal Council had requested CHF 20 million for UNRWA from Parliament. The Council of States originally wanted to approve the entire amount, while the National Council voted to delete it.
The resolution now approved by the small chamber does not mention UNRWA by name. It consists of two elements: On the one hand, it provides for a CHF 10 million reduction in the Federal Department of Foreign Affairs' credit for humanitarian actions - whereby the Federal Council can decide for itself where to make savings.
Secondly, the resolution sets out the framework conditions for the disbursement of humanitarian aid for the Middle East. The funds must be disbursed in tranches and it is explicitly stated that they are to be used exclusively for the benefit of the civilian population.
In addition, the Federal Council must consult the Foreign Affairs Committees of Parliament before disbursing contributions. If the National Council also says yes, the national government will in principle remain free to spend CHF 20 million to support UNRWA as planned - as Switzerland had originally promised the United Nations.
With its decision, the Council of States also reaffirmed its willingness to reach a compromise on regional policy. The proposal of the Conference of States would approve CHF 12.5 million for the regional policy fund. The small chamber originally wanted to approve twice this amount, while the National Council wanted to dispense with the contribution altogether.
The Council of States has relented on the financial plan for the years 2025 to 2027, agreeing by 32 votes to 9 with three abstentions to extend the deadline for increasing military spending to 1% of gross domestic product by 2035 - as requested by the National Council. Originally, the small chamber had demanded that the target value be reached by 2030.
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