The week in Switzerland

Dear readers,

It's been a long wait, but it's finally done: the Centre Party's candidates for election to the Federal Council have been announced. This is the highlight of the past week in Switzerland. However, as you will see, the announcement has not generated much enthusiasm.

Beyond this, our review of the past seven days focuses on topics that have a direct impact on your wallet.

Enjoy the read!

The big stories of the week

Keystone

Federal Council Elections: the Centre Party announces its candidates

The selection process for candidates to succeed Defence Minister Viola Amherd is now complete. After a challenging search, the Centre Party finally presented two candidates on Monday.

The frontrunner appears to be Markus Ritter from St Gallen. His strengths: he is already well known as a member of the House of Representatives and serves as President of the influential Swiss Farmers’ Union. The second candidate is Martin Pfister, a member of the cantonal government of Zug, where he heads the health department.

The response from other parties has been lukewarm. The left has criticised the absence of a female candidate and the right-leaning nature of the two nominees. Meanwhile, the right has been quick to highlight the Centre Party’s struggles in finding candidates, with many prominent figures declining the opportunity to run for the country’s highest political office.

Now that the candidates are known, the process will move forward, with the two nominees appearing before various parliamentary groups. The final decision will be made on 12 March, when the Federal Assembly elects Viola Amherd’s successor. It remains to be seen whether Parliament will accept the Centre Party’s choice or if a surprise candidate will emerge.

• Swiss public television, RTSExternal link presents the two candidates (in French)
• Swiss public television, RTSExternal link reviews the next important steps for the two candidates (in French)

Keystone / Christian Beutler

Twint on the rise but losing market share

The Twint mobile payment app continues to expand. This Swiss payment solution, developed with the backing of the country’s leading banks, recorded a record number of transactions in 2024, marking a 31% increase from the previous year.

Twint, based in Zurich, reported on Wednesday that more than 773 million transactions were carried out in 2024, the highest ever recorded. Since its launch in 2017, the platform has seen remarkable growth, rising from just 4 million transactions in its first year.

At the time of the annual review, Twint still had some 5 million users. The application is also increasingly present on the market. It is now accepted by around 81% of physical shops and 84% of online retailers in Switzerland, as well as by over 40,000 associations and charities. In 2024, 75% of transactions were made in a commercial setting, while 25% were peer-to-peer payments.

Despite this success, Twint is facing mounting competition from major tech firms. Its market share in Switzerland has declined from 79.6% in 2021 to 64.5% in 2024, while Apple Pay has increased its share from 8.8% to 11%. Samsung Pay and Google Pay accounted for 3.2% and 1.3% of the market, respectively, last year.

• Read the Keystone-ATS news report on Twint’s results on SWI swissinfo.ch (in French)
• Read the article on the rivalry between Twint and Apple Pay on WatsonExternal link (in French)

Keystone / Gian Ehrenzeller

Is Switzerland still a tax haven?

Switzerland is often associated with watches, chocolate, banking and tax advantages. However, the latter reputation seems increasingly questionable. While it is not (yet) a fiscal ‘hell,’ Switzerland is now closer to tax purgatory than paradise.

According to figures released on Tuesday by the finance ministry, taxes account for an average of 19.6% of personal income in Switzerland. This average includes cantonal and municipal taxes, but excludes direct federal tax.

This is the highest rate since 2008, when the indicator was first calculated at 18.9%. As is typical in Switzerland’s federal system, there are significant regional disparities. The cantons with the highest tax rates are Vaud and Geneva, where individuals pay 25.6% and 25.5% of their income in taxes, respectively. The lightest tax burden remains in Zug, where the rate is just 12%.

• The article on 20 minutesExternal link (in French)

EPA/JIM LO SCALZO / POOL

Trump’s shock statement on Gaza and Switzerland’s cautious response

As has been the case for weeks, international political news continues to be dominated by the decisions of US President Donald Trump. The latest controversy revolves around Gaza.

Following a meeting with Israeli Prime Minister Benjamin Netanyahu, President Trump announced on Tuesday that he wanted to “take control of Gaza.” Although the White House later sought to downplay these remarks, they sparked widespread condemnation globally.

Switzerland has reacted with caution. When contacted by Swiss public television, RTS, the Swiss foreign ministry stated that it would wait to see whether Trump’s statements would be followed by concrete action. “At this stage, we are still in a diplomatic phase and must analyse the situation. It would be premature to take a position now,” said ministry spokesperson Nicolas Bideau.

The controversy has not disrupted Switzerland’s plans to host a conference on the Middle East conflict under a UN mandate. “In our discussions with the Americans, we will determine their stance on the Middle East and the occupied territories. For now, the conference is proceeding as planned,” Bideau added.

• Update on Donald Trump’s statements on Gaza on Swiss public television, SRFExternal link (in German)
• Follow-up on the Gaza controversy on Swiss public television, RTSExternal link (in French)
• The Swiss foreign ministry spokesman’s reaction on Swiss public television, RTSExternal link (in French)

Swiss oddities

Keystone / Anthony Anex

The challenging Alpine terrain has long driven Swiss engineers to extraordinary feats. The latest achievement involves a section of the Schilthorn cable car, which spans a vertiginous drop.

In our latest instalment of Swiss oddities, we explore the engineering prowess behind this remarkable project. However, this achievement also has a downside: overtourism.

Read the full story:

Picture of the week

Keystone / Peter Klaunzer

Technicians hang the painting Totem 3. To mark its 20th anniversary, the Paul Klee Centre in Bern is hosting a major exhibition dedicated to the Franco-Swiss architect-artist Le Corbusier. The exhibition runs from February 8 to June 22, 2025.

The week ahead

Keystone / Salvatore Di Nolfi

The federal referendum on February 9 will be the major political event in Switzerland this weekend. The sole issue on the ballot is the popular initiative “For a responsible economy within planetary boundaries” (environmental responsibility initiative). Launched by the Young Greens and supported by left-wing parties and environmental organisations, the initiative demands that the Swiss economy does not consume more resources than the planet can sustain.

Meanwhile, as is typical at the start of the year, economic news will focus on the 2024 financial results of several leading Swiss companies. Next week’s reports will include Nestlé, Schindler, Société Générale de Surveillance, various cantonal banks and Migros Bank.

On the cultural front, the 53rd Prix de Lausanne concludes this weekend, showcasing the young talents who have won prizes in this prestigious international ballet competition.

Translated from French using DeepL/amva