Centre-right faces test at the ballot box

Swiss voters have the final say on tax and pensions Keystone

Switzerland’s Centre-right is seeking voters’ approval on tax breaks and cuts to pensions this weekend.

Centre-left groups have mounted fierce opposition to the plans put forward by parliament and the government.

The campaign ahead of the May 16 nationwide votes has been dubbed a key political battle between Switzerland’s centre-right parties and the Centre-left.

Emanuel von Erlach, a political scientist at Bern University, says the battle between Left and Right was sparked by last year’s parliamentary and cabinet elections.

The two main parties in the centre of the political spectrum were weakened, boosting the rightwing Swiss People’s Party and the centre-left Social Democrats.

“They have made the polls into something like a vote of confidence in the centre-right majority in parliament and the cabinet, or a vote for the Centre-left,” said von Erlach.

Pensions

Parliament last year approved plans to increase the retirement age for women to 65, gradually cut payments for widows, and slow down inflation-related increases in pensions.

Trades unions and centre-left parties were quick to mount a challenge in the form of a referendum.

“It is wrong to weaken the most important pillar of Switzerland’s social security system,” stated Paul Rechsteiner, president of the Federation of Trade Unions and a member of parliament for the Social Democratic Party.

But a majority of the main rightwing and centre-right parties, as well as the business community, argue that the cutbacks are necessary to secure the future of the state old-age pension.

“We have to try to stabilise spending on pensions by raising the retirement age for women and by other measures,” said Toni Bortoluzzi of the People’s Party.

In a separate vote, the electorate is to decide on a rise in Value Added Tax to help shore up the debt-laden state invalidity benefit scheme and give a cash boost to the old-age pension fund.

Tax breaks

Opposition to the parliament-approved package of tax cuts comes from the Centre-left and many cantons, Switzerland’s regional authorities.

They say only the wealthy would benefit from tax breaks intended for families, property owners and shareholders. They also say reduced revenue would result in drastic spending cuts in the fields of education and health.

“It serves no purpose at all in times of economic stagnation if primarily the richest people stand to benefit from massive tax breaks,” said Simonetta Sommaruga, a Social Democrat senator for Bern.

A majority in parliament argued that the tax breaks would spur economic growth and rein in public spending.

“We have a unique opportunity to reduce the level of taxes in this country,” insisted Caspar Baader, a member of parliament for the People’s Party.

Direct democracy

The joint opposition of centre-left parties and the cantons has prompted widespread speculation that voters will reject not only the proposed tax breaks, but also cuts in pensions.

This is borne out by the latest opinion poll by the Demoscope research institute, which forecasts a clear majority of voters rejecting the proposals.

Political scientist Emanuel von Erlach says the outcome of the votes will show whether the electorate approves of the trend towards more confrontation between Left and Right.

“It is a vote on whether the centre-right majority in parliament can push through its interests,” von Erlach told swissinfo.

A rejection of parliament’s decisions, von Erlach says, could also be seen as a reminder that Swiss voters prefer compromise and consensus solutions to extreme positions.

swissinfo, Urs Geiser

Key facts

Three issues come to a nationwide vote this weekend:
A package of federal tax cuts amounting to SFr2 billion for families, property owners and shareholders.
Plans to cut state old-age pension scheme benefits to the tune of SFr925 million per year.
A proposed 1.8 % increase in Value Added Tax by to shore up state insurance schemes for the disabled and for old-age pensioners.

In brief

Parliament approved the tax breaks, but centre-left groups and many regional authorities opposed to the cuts have called a nationwide vote.

Trades unions and the centre-left Social Democrats have also forced a referendum on parliament’s proposed pension scheme reform.

Latest opinion polls say a clear majority of voters will reject all three proposals.