Switzerland needs to revise its “debt brake” mechanism, say guests on our Let’s Talk panel. That might help balance the country’s budget without having to rely on savings cuts, say economists Marius Brülhart and Nils Soguel. The Swiss federal government wants to do some serious belt-tightening in order to maintain a balanced budget. The plan is to save CHF3 billion-4.5 billion ($3.65 billion-5.5 billion) a year from 2027. Climate policy, childcare, scientific research and foreign aid – the cuts will affect just about everything except the armed forces. + Expert group proposes CHF4-5 billion in cuts to federal budget Marius Brülhart, an economics professor at the University of Lausanne, admits there is a need to act. “It is important to have healthy public finances and a balanced budget,” he says. He cautions, however, that there is no easy answer how this should be done. “Should we have budget cuts like the government wants? Should we increase revenue by increasing taxes, or take ...
