Swiss parliament tackles five contentious issues in autumn session

Swiss parliament is set to debate five contentious issues during its three-week autumn session, including the first parliamentary discussion of the disputed treaty package with the European Union, public broadcaster SRF reports. The Council of States, parliament’s smaller chamber, has several of the most closely watched items on its agenda.

First debate on Bilaterals III

The Council of States has scheduled three days to discuss the more than 2,000 pages of explanations prepared by the Federal Council on the treaty package with the EU.

One key decision will be whether Bilaterals III should be subject to a mandatory referendum. If so, both the Swiss people and the cantons would have to approve the package for it to enter into force.

Debt to finance the army

The Federal Council wants to raise value-added tax by 0.5 percentage points for 12 years to finance military equipment. At the same time, the army would be allowed to take on debt during that period through a new armaments fund.

The Council of States Security Policy Committee wants to extend the fund’s duration to 18 years. It is proposing, however, that value-added tax increase by only 0.2 percentage points.

Watered-down Lex UBS

The Federal Council says the collapse of Credit Suisse showed that UBS’s foreign subsidiaries must be better protected and fully backed by core equity capital.

After strong opposition from UBS, a majority of the Council of States Economic Affairs Committee believes the measure would restrict the major bank too heavily. The Council of States will now decide between Finance Minister Karin Keller-Sutter and those who share UBS’s criticism.

Half a billion for free trade

The National Council rejected the free trade agreement negotiated by the Federal Council with the Mercosur states Argentina, Brazil, Paraguay and Uruguay during the summer session.

The rejection was likely influenced by the chamber’s earlier decision not to grant farmers 880 million Swiss francs in compensation. The Council of States Foreign Affairs Committee wants to save the agreement and is proposing a compromise of 517 million francs in support for Swiss farmers.

Lessons from the Covid 19 pandemic

The Federal Council wants to improve protection against future pandemics. A partial revision of the Epidemics Act would give it the power to impose nationwide measures, such as requiring masks on public transport.

The federal government would also be allowed to produce medical supplies if the cantons or private companies were no longer able to do so. The Council of States Health Committee wants to limit the Federal Council’s powers and further define its plans for mandatory vaccination.