Swiss Senate prunes federal savings package

The Swiss Senate has pushed back against parts of the government’s cost-cutting plan. In a series of votes, lawmakers blocked reductions to key areas, including education and public broadcasting. The decisions mark a partial rejection of the Federal Council’s proposed savings measures.

The Senate began by preserving funding for Swissinfo and other international services run by the Swiss Broadcasting Corporation. A majority, led by the SP, the Greens, and the Centre Party, opposed cuts to the SRG SSR budget. They also rejected a plan to reduce federal contributions to universities by CHF 120 million annually, instead halving the cut to CHF 60 million.

Climate policy subsidies faced a similar outcome. While some reductions were approved, the Senate softened the blow by maintaining parts of the funding. The chamber also decided to keep financial support for the cantonal buildings programme, lowering the annual savings target from CHF 400 million to CHF 200 million. On taxation, the Senate refused to raise levies on withdrawals from second and third pension pillars. Only left-wing parties backed the proposal, leaving the measure defeated. The Finance Minister had originally aimed to save CHF 2.4 billion in 2027, rising to CHF 3 billion in subsequent years, with cuts spread across climate, asylum, and research budgets. The government’s savings package includes 57 separate measures. Its goal is to free up resources for the armed forces and the Confederation’s pension scheme while staying within the debt brake rules. The Senate will resume discussions on the plan this Thursday.

The votes leave parts of the savings package in limbo. Swissinfo, climate initiatives, and university funding will retain more support than initially proposed. However, further negotiations will determine how much of the government’s original plan survives.