Swiss parties debate funding for military rearmament

Swiss political factions are debating methods to finance 1.3 billion francs required for military rearmament. The Council of States has proposed increasing the value-added tax by 0.2 percent and establishing a security fund to cover the costs.

In response, a group of nine members from the SVP, FDP, and Center parties has proposed an alternative plan to avoid tax increases and a dedicated fund. Their proposal includes redirecting 200 million francs from COVID-19 debt reduction, reactivating a 600 million franc relief package, and allocating 100 million francs from federal revenue growth starting in 2028. They also suggest cuts to international cooperation and utilizing 200 million francs from the cantonal share of direct federal taxes to secure the total amount.

Meanwhile, the Social Democratic Party (SP) has rejected cuts to education, asylum services, or development aid, suggesting instead that discussions include loosening the debt brake or implementing new taxes, such as a wealth tax.