Like many governments, Switzerland’s federal government is spending more than it collects in taxes and other revenues. However, a constitutional mechanism known as the debt brake limits how much the government can overspend. This means, in the absence of significant economic growth or higher tax rates, the government must cut spending. This week it outlined […]
Swiss set to vote on changes to rental laws
Changes to Swiss law on renting recently passed by parliament have met with public resistance. This week, enough signatures were collected to trigger a vote aimed at overturning the work of parliament on rental law reform, according to RTS. The two changes, which would make it easier for landlords to move into their own properties […]
Two very different votes on Swiss pensions set for March
This week, the referendum roster was announced for 3 March 2023. There will two votes on Switzerland’s state pension system. One aims to tackle the impending funding crisis by extending the retirement age, and the other aims to alleviate old age poverty by increasing payments without a plan to pay for it. The first would […]
Inflation and poverty in Switzerland
This week, SRF held a discussion on poverty in Switzerland. Philipp Frei, Managing Director of the Swiss Budget Consulting Association, an organisation that helps people budget, voiced concern over shrinking disposable incomes. While economic historian Tobias Straumann spoke of the progress Switzerland has made on welfare and poverty’s often transient nature. In 2021, Switzerland’s poverty […]
Young Swiss no longer saddled with health insurance debt when turning 18
In Switzerland, the law allowed health insurance companies to pursue young people for unpaid insurance premiums when they turned 18. From 1 January 2024, this is no longer possible. These debts remain with the parents. If insurers want to collect the money they are owed they will now have to pursue parents. However, the law […]
Three laws changing in Switzerland in 2024
On 1 January 2024, three new laws came into force. The first is a change to Swiss pensions. Under the new rules it will be easier to retire later or to continue working part time. Working for longer will mean a larger state pension when it is taken. The economic rationale is that more people […]
Swiss inequality – a perception gap?
In a recent poll, nearly 82% completely (46%) or somewhat (36%) agreed that the gap between rich and poor in Switzerland is increasing. However, these responses are at odds with typical measures of inequality. Two key measures of inequality are the S80/S20 and the Gini Coefficient. On both measures Switzerland is fairly stable. The S80/S20 […]
Percentage of Swiss on welfare dips below 3 percent
In 2022, 2.9% of the population received welfare, according to data published by the Federal Statistical Office (FSO) this week. Since 2005, when nationwide data on welfare was first collected, the rate has only dipped below 3% once before in 2008. The highest it has been was 3.3% in 2016 and 2017. Welfare does not […]
Swiss central bank leaves interest rate unchanged
On 14 December 2023, the Swiss National Bank (SNB) said it was ending its interest rate tightening cycle after a clear slowdown in inflation. With inflation rising more slowly than the central bank’s 2% ceiling (it was 1.4% in November 2023), the SNB left its key interest rate at 1.75% for a second consecutive meeting. […]
Swiss car insurance to rise 15% in 2024
With all of the price hikes in Switzerland it is difficult to believe inflation is running at around 2% (it was 1.4% in November 2023). Health insurance premiums in 2024 are on average 8.7% higher than they were in 2023. Now Swiss car insurance is set to get more costly. The insurance advisor VZ predicts […]
