Switzerland Faces Budget Deficit Amid Military Expansion and Pension Hikes

Switzerland's President Karin Keller-Sutter predicts a 3 billion Swiss Franc annual budget deficit in the coming years, citing military spending and pension increases. The country plans new banking regulations following a Credit Suisse inquiry. While Swiss voters opted for higher pension payouts, new defense initiatives also strain the budget.

Switzerland's government is bracing for a 3 billion Swiss Franc annual budget deficit in the coming years, according to Finance Minister and President Karin Keller-Sutter.

The increased defense spending and pension boosts primarily drive the financial shortfall. This development marks a shift from Switzerland's traditionally balanced budgets which have been in the red following the costs associated with the COVID-19 pandemic.

Additionally, Keller-Sutter announced impending banking regulations, following the Credit Suisse collapse investigation. Despite new income from profit taxes, the budget remains under pressure due to defense upgrades, including new fighter aircraft and data center fortifications against cyber attacks.

(With inputs from agencies.)