Swiss finance committee rejects 2027 budget in rare cross-party revolt

Switzerland’s parliamentary finance committee has rejected the federal budget for 2027, with the Greens and Social Democratic Party joining the right-wing Swiss People’s Party (SVP) to block it, SRF reports. Federal finance experts cannot recall a committee rejecting the budget after deliberations, and the blockade appears unique in the 21st century.

The left-wing parties’ opposition was expected: they also rejected last year’s budget. During this year’s review, the Social Democrats tried to reverse parts of the parliament-approved 2027 cost-cutting package, citing an improved financial outlook, but failed. The left has also opposed the continued priority given to the army by the centre-right majority, which has left development aid particularly vulnerable to cuts.

The left nevertheless secured some changes, including CHF 70 million more for rail infrastructure and an additional CHF 1 million for measures to combat violence against women.

The SVP’s opposition was more surprising. The party’s finance policy spokesperson, Lars Guggisberg, said proposed value-added tax increases in the financial plan were decisive. They would help fund the 13th AHV pension and a planned arms fund. But the financial plan is not part of the budget and, unlike the budget, is not binding.

The SVP also won changes of its own, including nearly CHF 50 million in cuts to asylum spending and CHF 120 million more for agriculture.

The rejection comes as parties are increasingly promoting firm positions ahead of federal elections in less than a year. An analysis by the Neue Zürcher Zeitung last year found that parliamentary groups had become more united in their voting over the previous two decades, with fewer members breaking from party lines, making compromise harder.

Still, parliament has reached compromises on other issues. In 2023, after 14 years of debate, it passed the EFAS healthcare reform. Agreements were also reached on the electricity grid expansion project known as Netzexpress and on an acceleration bill for energy projects.

SRF attributes the budget standoff chiefly to recent fiscal pressures. The government and centre-right parliamentary majority want to increase army funding quickly because of the changed security situation in Europe. A cost-cutting package was drawn up in response to projected deficits, while the finance minister and parliamentary majority have maintained the debt brake and opposed loosening it.