Decision in favor of US jets – Switzerland escapes lucrative tax deal with France because of fighter jet purchase


Published

The decision in favor of the American F-35 jets has financial consequences: France, which had firmly expected a fighter jet deal with Switzerland, probably canceled a tax deal because of this, which would have brought Switzerland an estimated 3.5 billion.

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Buying French Rafale jets would have brought Switzerland some advantages …

REUTERS

... but the F-35 Lightning performed better in the tests before procurement.

… but the F-35 Lightning performed better in the tests before procurement.

REUTERS

Federal Councilor Viola Amherd at a media conference on fighter jet procurement: Your department decided to buy the F-35.

Federal Councilor Viola Amherd at a media conference on fighter jet procurement: Your department decided to buy the F-35.

20min / Simon Glauser

  • Because Switzerland is buying US planes instead of French jets, the country is missing out on a deal worth CHF 3.5 billion and an agreement for close cooperation with Paris.

  • Although the decision to use the US jet had already been made in early summer, Switzerland did not pour pure wine for France.

  • Paris is extremely disappointed and no longer wants to stand up for Switzerland in the EU.

In the run-up to the decision to procure new fighter jets and a surface-to-air defense system, Switzerland had no closer contact with any other provider than with France. The country hoped that Switzerland would opt for the Rafale jet and a French-made missile system and, in return, promised attractive concessions: In the future, a higher proportion of the taxes paid by cross-border commuters in France should go back into the country Switzerland flow. According to research by the “Republic”, this would have brought Switzerland an estimated CHF 3.5 billion over 30 years.

In addition, Switzerland should benefit from more intensive cooperation between the two countries, for example in the areas of transport infrastructure, science, education and the fight against crime – and with France as “godfather” it could also have strengthened its position as an EU partner.

These subsidiary agreements were discussed at several meetings of high-level representatives from the two countries. Everything indicated that the deal would come off and Switzerland would buy both the Rafale jet from manufacturer Dassault and a French air defense system. According to the report, magistrates traveled to Paris or French diplomats to Switzerland several times to discuss the details.

France dropped tax treaties

But then, according to the article, at the end of June 2021 the Federal Council surprisingly decided in favor of the US F-35 stealth jet and an American surface-to-air missile system – and France felt violently offended. Even a trip by State Secretary Livia Leu to Paris to justify the decision could not smooth things over. Apparently, according to the French State Secretary for European Affairs, Clément Beaune, Switzerland has “decided to turn its back on Europe”.

As a result, the deeply disappointed France canceled the agreement on enhanced cooperation, including the lucrative cooperation deal. According to a note, Ignazio Cassis’ department suspected that there was a direct connection with the canceled Rafale deal.

F-35 performed better in tests

As a result, relations between the two countries cooled noticeably – and France was and is apparently no longer willing to work to improve Switzerland’s relations with the EU. The “republic” calls this “European political land damage”. This was all the more done since Switzerland is said to have known since April that the F-35 had performed better in tests, but had left France in the belief that the Rafale deal would come about and continue to negotiate accordingly. This is said to have even led to a dispute within the Federal Council.

Although Switzerland lost billions in this way, the Federal Council had no leeway in the fighter jet decision according to the report and had to accept the best offer according to the selection process – and that was apparently the F-35 jet. The political price that the decision in favor of the US offer entails, however, seems high.

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