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Switzerland debates Ukraine reconstruction funding

Volodymyr Zelenskyy, President of Ukraine Swiss Federal President Viola Amherd
Viola Amherd, who holds the rotating Swiss presidency this year (second to right), with Beat Jans, Federal Councillor and minister of Justice and Police, right, and Volodymyr Zelenskyy, President of Ukraine, and their respective delegations, hold bilateral talks, on Monday, January 15, 2024 in Bern, Switzerland. KEYSTONE/© KEYSTONE / ALESSANDRO DELLA VALLE

An interdepartmental working group is currently examining how Switzerland should co-finance the reconstruction of Ukraine. A fund not covered by the "Debt Brake" - a debt containment mechanism - is out of the question for the Federal Council.

Such a fund for reconstruction in Ukraine, which was attacked by Russia two years ago, is under discussion in both houses of parliament. The House of Representativeshas received a motion from its finance committee demanding that the amount made available be recognised as an extraordinary item and thus not be covered by the Debt Brake. In addition, it should not be booked under international cooperation.

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The Federal Council opposes this demand, as can be seen from its response to the motion published on Thursday. It is currently examining what institutional framework is required to support the long-term reconstruction process, what financing options are available and what level of federal contribution would be appropriate.

However, the Federal Council writes that the conditions for extraordinary financing of reconstruction aid are not in place. “The amount of the Swiss contribution can be controlled, which is why this expenditure is not extraordinary.”

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According to the Federal Council, Switzerland has supported the population affected by the war in Ukraine with a total of CHF2.75 billion ($2.75 billion) until December 31, 2023. As part of the next international cooperation strategy 2025-2028, the Federal Council has also earmarked around CHF1.5 billion for Ukraine and the region.

Translated from German by DeepL/amva

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