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Swiss vote to give themselves a bigger pension

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Swiss citizens have recently voted in a nationwide referendum aimed at improving the quality of life for the elderly by granting themselves an additional month’s pension each year. Despite warnings from the government about the potential financial strain, nearly 60% of voters supported the proposal. Additionally, 75% rejected the idea of increasing the pension age from 65 to 66.

The current maximum monthly state pension in Switzerland is deemed insufficient by many, given the high cost of living, particularly in cities like Zurich and Geneva. Rising health insurance premiums have added to the financial burden, especially for older individuals. Factors such as career breaks for women and challenges faced by immigrants in making ends meet have exacerbated the situation.

The initiative to boost pensions was championed by trade unions but faced opposition from the government, parliament, and business leaders, who argued it would be economically unsustainable. However, voters exercised their direct democracy rights and supported the proposal, viewing it as a necessary measure to address financial concerns among retirees.

The outcome was hailed as a “historic victory for retirees” by advocacy groups. The decision aligns the state pension system with the country’s salary structure, where workers receive 13 payments annually, including a double payment in November. This tradition, originally intended to aid with holiday expenses and taxes, now extends to pensioners, who also contribute to the economy through taxation.

Furthermore, voters decisively rejected any increase in the retirement age, indicating their prioritization of quality of life over prolonged workforce participation. Despite government warnings about the financial implications of these decisions, voters expressed confidence in Switzerland’s robust economy and their role in its success.

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Storms in Europe cause huge damage and disruption

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Central Europe, including Germany, Austria, and Switzerland, has been hit by severe storms and heavy rainfall, leading to significant damage and disruptions. Many towns and cities in the region have experienced torrential rain, causing floods and forcing the closure of numerous roads.

The rail traffic has also been affected, with the Hamburg-Berlin line and a major north-south line between Kassel and Goettingen being closed due to storm damage. Switzerland has also faced thunderstorms, resulting in numerous calls to the fire department.

Strong winds reaching speeds of up to 135 km/h have uprooted trees, damaged roofs, and street infrastructure, although no casualties have been reported. Austria has witnessed several landslides that have affected homes, and the state of Carinthia experienced large hailstones of up to 8 centimeters in diameter, causing significant damage to crops.

Videos circulating on social media show violent storms and flooded streets, including the complete submersion of the forecourt and road in front of the Kassel-Wilhelmshöhe ICE train station.

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Swiss voters support global corporate minimum tax and environmental goals

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According to public broadcaster SRF, voters in Switzerland on Sunday approved the implementation of a global minimum tax on corporations as well as a climate law that seeks to reduce the use of fossil fuels and achieve zero emissions by 2050.

According to the results of the nationwide referendum held on Sunday, an exceptionally high percentage of voters supported increasing the nation’s corporate tax from the existing average minimum of 11% to the 15% worldwide minimum rate.

Finance Minister Karin Keller-Sutter stated that doing this “ensures that Switzerland will not lose any tax revenue to foreign countries.” Additionally, it will establish legal clarity and a solid structure.

Similarly, the climate bill was adopted and supported by 59% of voters.

In an effort to curtail the practise of transferring earnings to low-tax jurisdictions, Switzerland joined the almost 140 other nations that agreed to an OECD agreement in 2021 that set a minimum tax rate for large corporations.

The plan, which is expected to generate an additional 2.5 billion Swiss francs ($2.80 billion) in income year and maintain Switzerland’s position as having one of the lowest corporation tax rates in the world, has the support of business organisations, the majority of political parties, and the general public.

The climate law, which was reintroduced in a modified version after it was rejected in 2021 as being too expensive, has sparked additional discussion, with those opposed to it gaining ground recently.

While opponents from the right-wing People’s Party claim it would risk energy security, proponents contend that the measure is the very minimum the affluent nation needs to do to demonstrate its commitment to battling climate change.

In the referendum held on Sunday, voters also agreed to prolong a few COVID-19 emergency law measures. This was necessary under Switzerland’s direct democracy system, in which legislation is decided by popular vote.

Around 2,000 international firms, including Google (GOOGL.O) and 200 Swiss multinationals, like Nestle (NESN.S), have offices and headquarters in Switzerland. Even though everyone would be impacted, business organisations have praised the increased certainty the new tax would offer, even if Switzerland would no longer be as attractive due to its low tax rate.

“No other nation will have less expensive taxes either. Christian Frey from the lobbying organisation Economiesuisse stated, “We want the extra tax income to stay in the nation and be utilised to boost its attractiveness for enterprises.

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News Politics

Green parties make huge gains in Swiss election

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The two main Green parties have made huge gains in the latest Switzerland election, by winning at least 20 per cent of the total votes that were casted in the election.

The counting process is still progressing.

As per a latest update, the SVP is still in the top position. The report says the Socialists and the Liberals have retained to the second and third positions respectively.

Yet, the notable fact is that all the aforesaid parties have lost their vote shares considerably. The SVP, the party which has been dominating the Swiss politics for several years, even has lost more than three per cent. The other parties have also suffered similar serious losses.

Though there is no change in the positions from the first to the third, there is a huge change in the case of the fourth position.

The Christian Democrats, which was one of the four major parties in the Swiss coalition government, have been pushed away, and its position has been grabbed by the Greens.

If the things progress this way, the Greens for the first time will get a seat in the coalition government this time.

Climate change was the main issue that was discussed during the election campaign.

It seems that the discussion of the climate change during the campaign has worked hugely in favour of the Greens.

The preliminary indication of the result is that the anti-immigration rhetoric of the SVP has not been received well by the voters of Switzerland.


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