The Federal Council comments on the billion-euro savings package
Published: Friday, Sep 20th 2024, 16:42
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According to Finance Minister Karin Keller-Sutter, the federal government will not be able to avoid a savings package worth billions. "We have to act," she told the media at the presentation of the key figures of the relief package in Bern on Friday.
Keller-Sutter was accompanied by Social Affairs Minister Elisabeth Baume-Schneider and Environment Minister Albert Rösti. "This is a Federal Council project," emphasized Keller-Sutter.
The federal budget is facing major challenges, particularly due to rising expenditure on pensions and the army. "Ordinary expenditure is growing significantly faster than income," said the Finance Minister.
"Not very noticeable for the population"
Keller-Sutter was convinced that the savings package presented by the Federal Council could make it possible to eliminate the forecast deficits in the billions and balance the budget. The Federal Council wants to reduce the federal budget by CHF 3 to 3.5 billion by 2027 and by CHF 4 to 4.5 billion by 2030.
"This package will not be very noticeable for the population on a day-to-day basis," said the Finance Minister with conviction. The Federal Council is trying to avoid an excessive burden on taxpayers. The package therefore focuses on the expenditure side and not the revenue side.
People could decide on austerity package
Democratic decisions such as the Yes to the Climate Protection Act were taken into account by the Federal Council when drawing up the austerity package, said Environment Minister Rösti. The recent referendums would not be affected by the cuts. The adopted climate policy would be continued as planned.
"However, the adopted climate targets can be achieved with a more efficient use of funds," said Keller-Sutter. Rösti described the proposed savings of CHF 400 million in the buildings program as feasible. This program had done its job and could be scaled back.
The savings project is "demanding, ambitious and complex", said Social Affairs Minister Baume-Schneider. The public debate on this has only just begun. The various measures are due to come into force in 2027, before which the people are expected to have their say. The package is subject to an optional referendum.
"Reasonable" for cantons
Parliament could introduce further measures itself, Keller-Sutter noted. However, she emphasized that everyone had to play their part. However, she was well aware that the package would be controversial.
"You can't wash the bear without getting the fur wet," said Rösti. Keller-Sutter emphasized that the federal government had borne almost the entire burden alone during the coronavirus pandemic and had run up debts. This is why austerity measures are now also "reasonable" for the cantons.
In addition to the sixty or so measures, Keller-Sutter announced that more would be added in the coming years. There is still potential in the division of tasks between the federal government and the cantons. However, the Federal Council does not want to anticipate the ongoing "Entflechtung 27" project at this time.
The Federal Council's key figures would result in a total relief volume of just under CHF 3.6 billion from 2027 and CHF 4.6 billion from 2030. Even if the relief package were fully implemented, the Federal Council states that ordinary federal expenditure would continue to grow by over 2% per year. Specifically, they would increase from CHF 80 billion in 2023 to CHF 91 billion in 2027 and CHF 96 billion in 2030.
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