‘Confederation is a subsidy machine’: Swiss finance minister
The Swiss government is a machine for distributing subsidies to various actors in the country, says finance minister Karin Keller-Sutter.
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Keller-Sutter was commenting on the state spending relief plan adopted Wednesday by the Federal Council, which aims for alleviations of between CHF2.7 and CHF3.6 billion.
“This is not austerity, nor is it a savings package,” she said in an interview with Swiss public broadcaster RTS. “It’s really just an easing plan, because all we are doing is curbing the growth of spending, to the extent of 1%. Instead of a 3% progression we will have a 2% progression.”
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“There is no cut on social welfare, there are no really serious cuts, which would hurt,” the 61-year-old continued. “Instead, there is a reduction in subsidies. And I believe that it is not the taxpayer’s job to pay for every subsidy in this country and contribute to every special interest.”
“That’s the problem. The federal budget is a transfer budget: 80% of revenue goes out immediately and is distributed: to the cantons, to the associations, to the polytechnics, to the railways…,” Keller-Sutter added.
Avoid German problems
“The federal government is a subsidy machine, and if you curb the growth of spending, that’s a good thing, because the alternative is to raise taxes: and that’s where you get to touch the citizen.”
According to Keller-Sutter, putting finances in order is a good thing. “Look abroad, in Germany for example: the government no longer functioned because of money issues”; and France has a “deplorable” financial situation. “This is not Switzerland’s goal, we have to remain autonomous and financially stable so we can act in case of a crisis, as we did for Covid or the Ukrainians.”
But by wanting to act on the expenditure side instead of the revenue side, asks the radio reporter, do we prefer to guarantee shareholders’ dividends instead of citizens’ purchasing power? “We don’t have a revenue problem, we have considerable tax revenues,” Keller-Sutter said. “But we spend too much. More will have to be contributed to the aging population and 13th pension and the military, as decided by parliament. “We have to make sure that the finances are balanced.”
Jet-setting minister
However, the government’s plan is meanwhile already causing discussion, and there is no shortage of polemical tones as well. “Karin Keller-Sutter makes a soothing statement that even she, as a private person, knows what it means to save money,” Green Party chair Lisa Mazzone said in an interview published yesterday by Blick.
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“But it’s easier to talk about savings for someone who has a federal councilor’s salary and flies around the world in a government jet.”
“Switzerland has one of the lowest debt ratios in the world,” she added. “And in recent years the Federal Council has repeatedly presented overly pessimistic forecasts, only to simply close with accounts in the black. That seems to be the case again this year!”
“On the contrary, now it is extremely important for the country to invest in the future. We face the greatest challenges of our time, but unfortunately we have a Federal Council without a future.
“Despite the austerity package, the executive is spending billions on the military, cutting back on social security, public transportation and education.”
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Translated from Italian by DeepL/mga
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