Winners and Losers in Switzerland's 2025 Budget: Determining the Beneficiaries and Victims of the Financial Plan.

Winners and Losers in Switzerland's 2025 Budget: Determining the Beneficiaries and Victims of the Financial Plan.

Hey there! Let's dive into Switzerland's budget for 2025, shall we? After three weeks of heated debate, the National Council and the Council of States have finally reached a compromise. Here's a quick rundown of the winners and losers.

First, the losers:

1. Childcare and Youth Activities: The federal government plans to cut 800 million francs annually by no longer contributing to daycare centers. Don't worry; they're not entirely abandoning the ship—funding will just be handed over to the cantons. Subsidies for extracurricular activities for kids and youth will also take a hit.
2. Retirement Funds: If you've been considering withdrawing money from your pension plans early, think again. The government aims to save 220 million francs by 2030 by increasing taxes on withdrawals from the second and third-pillar pension plans.
3. Train Travel: No more financial incentives for cross-border rail passenger transport, resulting in savings of 60 million francs by 2030. Plus, the development of the night train network will be cut by 20 million francs.
4. Roads: The Federal Council plans to save 92 million francs by decreasing contributions to road infrastructure maintenance, repairs, and expansions. This could affect the implementation of projects that are yet to break ground.
5. Asylum Seekers and Refugees: The State Secretariat for Migration will receive 100 million francs less for social assistance and 85 million less for federal asylum centers.
6. International Cooperation: The two chambers agreed on a cut of 110 million francs for bilateral cooperation, economic aid, and contributions to international organizations.

Now, the winners:

1. The Army: Switzerland's military, which has never engaged in a battle, is set to receive 29.8 billion francs from 2025-2028. The pressure to increase the army's budget has grown in response to the geopolitical environment.
2. Polytechnic Institutes and Universities: Though the original plan was to cut funding by 100 million, these institutions received a 12.5-million reprieve. As for other public universities, they'll be 6 million francs richer in 2025. The ETH in Zurich and EPFL in Lausanne even tripled tuition fees for foreign students.
3. Farmers: The agricultural sector will receive 42 million francs, and an additional 10 million for livestock vaccination against bluetongue disease, detected in Switzerland recently.

Remember, these are just the main points; for a more detailed overview, check out the article in German. Stay tuned for more updates on the challenges facing Switzerland in 2025. Cheers!

1. In light of the budget agreement for Switzerland in 2025, there seems to be a significant focus on finance and business, as major savings are planned for various sectors including childcare and youth activities, with an annual reduction of 800 million Swiss francs.
2. Moving forward, there appears to be an emphasis on savings and investment in the future, as shown in the agreement to save 220 million Swiss francs by 2030 from retirees' pension plan withdrawals, with increased taxes on such withdrawals.
3. The contingency plan for 2025 also includes increased spending in certain areas, such as the army, which stands to receive 29.8 billion Swiss francs over the next few years, reflecting the government's agreement to respond to geopolitical concerns by reinforcing the military budget.

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