Swiss austerity plans face political hurdles as Greens retreat
The Swiss government's austerity plans have faced political pushback in recent weeks. After pressure from opposition parties, lawmakers have scaled back the proposed relief package. Now, the Green Party has dropped its threat of a referendum, though concerns remain over cuts in other areas.
The Greens initially planned to challenge the federal government's cost-cutting measures with a public vote. Their stance forced parliament to adjust its approach, particularly on climate policy. However, the party has since withdrawn the referendum threat, acknowledging that some reductions—like those in international cooperation—cannot be contested this way.
The Social Democrats (SP) had also weighed launching a referendum but have adopted a more cautious position. Party President Lisa Mazzone announced in Bern on Monday that a final decision would come one week after the spring session. Finance Minister Karin Keller-Sutter warned that further cuts may still be needed. She stressed that if savings fall short in the relief package, additional adjustments will be required in the 2027 budget. The Federal Council will review the outcome of the current session before deciding next steps. Parliament is expected to finalise the relief package during this session. Lawmakers have already reduced its scope, but Keller-Sutter's comments suggest the debate over spending is far from over.
The Greens' withdrawal of their referendum threat removes one obstacle for the government's austerity plans. Yet, the SP's pending decision and Keller-Sutter's warnings indicate that budget negotiations will continue. The final shape of the relief package—and its impact on areas like international cooperation—will become clearer after the spring session.
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