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Finance Minister Karin Keller-Sutter supports Defense Minister Viola Amherd. But the army is “pushing a bit too much ahead of itself,” she says, and warns that the financing of future army spending is not secured.
The army cannot tackle and implement arms purchases approved by Parliament as quickly as planned and has to postpone projects and payments totaling 1.4 billion francs. In the “SRF-Samstagsrundschau” Finance Minister Karin Keller-Sutter speaks of an “overhang”.
According to her, the reasons for this go back to the time before the outbreak of the war in Ukraine – to the time before the first parliamentary resolutions for a significant increase in the army budget. Overhangs like the one we have now in the army are not unusual, she says – but: “It’s just a bit much that they’re pushing ahead of themselves.”
Doubts about the financing of the army
The Finance Department does not act as a supervisory authority over the Army and the Defense Department, says Keller-Sutter. When asked whether an investigation by the Federal Audit Office was needed, she replied: “It’s certainly always good when you have clarity.” But the responsible committees of Parliament would have to decide.
From 2028, the gradual increase in the army budget will no longer be financed – from today’s perspective, we lack the funds.
Due to the increased threat situation, the Federal Council and Parliament actually want to double the army’s budget by 2035 – to one percent of the gross domestic product (GDP). However, the finance minister warns: This is “sporty”. The gradual increase in the army budget can still be financed over the next three years, but after that there will be a problem: “From 2028 onwards it will no longer be financed – from today’s perspective we lack the funds.”
From this period onwards, the federal treasury would be missing three to four billion francs per year, said Keller-Sutter. However, it is not just army spending that is responsible for this, but also increasing federal funds for AHV or health insurance premium reductions.
Tying the army budget to GDP “is questionable”
Federal Councilor Karin Keller-Sutter criticizes in the “Samstagsrundschau” that the future budget for the army should be based on gross domestic product. “I just find it a bit questionable that a share of GDP is set,” said the Finance Minister. This proportion cannot be compared internationally because Switzerland has a militia and not a professional army.
Money from the state and the economy flows into compensation for the militiamen. “You should actually take that into account, then we would have one percent.” It would be better for the Finance Minister than a percentage target if the army’s budget target were based on the threat situation and the capabilities required for it.