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REFERENDUMS IN SWITZERLAND

Climate, taxes and Covid: What’s at stake in Switzerland’s June 18th referendums

In the first of the three rounds of referendums scheduled to be held in 2023, the Swiss will weigh in on three issues.

Climate, taxes and Covid: What’s at stake in Switzerland's June 18th referendums
The Swiss will vote on three issues on June 18th. Photo: AFP

These are the three issues on the June 18th ballot:

Covid-19 Act

This act was voted on, and approved by the majority of the population, in November, 2021, when the pandemic was still on-going. 

Even though the last health measures were lifted more than a year ago, voters will have to decide again on various federal provisions  — especially pertaining to border measures in the event of a pandemic, the protection of vulnerable people, and the promotion and development of treatments for the coronavirus.

According to the government, which is urging the ‘yes’ vote, “it is hard to say with any certainty how [the disease] will develop. The possibility that dangerous variants of the virus will emerge again cannot be ruled out.”

Given this uncertainty, the parliament has extended the period of the Act’s validity until mid-2024.

However, opponents of the measure — organisations called Friends of the Constitution and  Mass-Voll — are opposing the extension of the law, claiming it would allow the government to arbitrarily re-introduce “discriminatory measures” like the Covid certificate

Climate and Innovation Act

The second issue is related to climate, particularly the target of zero greenhouse gas emissions in Switzerland by 2050, thanks to the government funding of 2 billion francs over 10 years for the replacement of fossil fuels. 

Switzerland imports around three quarters of its energy, which means that all the mineral oil and natural gas consumed in the country come from abroad.

However, the government argues that “these fossil fuels will not be available indefinitely and they place a heavy burden on the climate. In order to reduce environmental pollution and dependence on other countries, the Federal Council and Parliament want to reduce the consumption of oil and gas. At the same time, the aim is to produce more energy in Switzerland.”

If the voters approve this bill, Switzerland will aim to become climate neutral by 2050, by financially incentivising the replacement of oil, gas, and electric heating by climate-friendly technologies.

The opponents of the law — The Swiss-German Federation of Property Owners and Swiss People’s Party among them — spoke out against the climate law, claiming that if the government’s proposal will be approved, it would cause a massive increase in electricity needs and, consequently, in electricity prices.

READ ALSO: Are the Swiss finally going to get serious on tackling the climate crisis?

Taxation of international companies

Negotiated by nearly 140 countries around the world, the reform of the tax law aims to establish a minimum rate of 15 percent on international corporations — higher than Switzerland’s current tax rate.

However, Switzerland’s has committed itself to comply with this rule.

Even though it would mean Switzerland might lose its edge as a tax-friendly business location, the Federal Council and Parliament want to follow the other countries by implementing this minimum taxation for large international groups of companies (for all other companies, nothing would change).

While the Federal Council is recommending that voters approve this measure, some MPs reject the plan, as most of the revenue would go to just a few cantons, such as Zug and Schwyz,  which offer competitive taxation rates, while other regions will not benefit.

READ ALSO: Why does the canton of Zug have Switzerland’s lowest taxes?

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For members

HEALTH INSURANCE

How Switzerland’s two crucial health insurance referendums could impact you

The price of Swiss health insurance premiums has been rising significantly in the past few years, prompting political parties to launch two cost-cutting initiatives. The votes will take place in June and there's a lot at stake.

How Switzerland's two crucial health insurance referendums could impact you

On June 9th, the Swiss will cast their votes on two issues aiming, though in different ways, to curb the continually increasing cost of the obligatory health insurance (KVG / LaMal).

This is what’s at stake.

The ’10-percent’ initiative

In view of the high (and rising) premiums and other costs of living, which eat up a big chunk of the budgets of low- and middle-income consumers, the Social Democratic Party has spearheaded a national vote to cap the insurance rates at 10 percent of income.

Anything over this limit should be paid for by the federal and cantonal government, the party says.

While this strategy may sound enticing to everyone tired of paying high premiums, the government warns that while this proposal looks good on paper, the ‘yes’ vote could unleash some serious consequences.

Its main argument is that this measure would cost several billion francs per year, and does not provide any incentives to control health costs.

Instead, the Federal Council and the parliament have concocted their own ‘counter initiative’ that they want voters to approve.

Under this proposal, cantons will have to increase the amount of financial help they pay toward health premiums for low-income people. 

READ ALSO: How do I apply for health insurance benefits in Switzerland?

‘For Lower Premiums’ initiative

For its part, the Centre party has come up with its own proposal to reduce health insurance costs, which will also be voted on June 9th.

It provides for a ‘brake’ on health costs, which should evolve according to the economy and wages.

This brake would work in the same way as the federal spending brake. Therefore, when healthcare costs exceed wages for a given year by 20 percent, the government must take action to bring the  costs down.

The government is asking voters to turn down the Centre’s proposal because it doesn’t take into account factors such as demography, technological progress in healthcare, as well as the dependence of salaries on economic developments.

Here too, the Federal Council and parliament have put out their own counter-project, providing for more targeted measures, including specific cost control objectives for healthcare services.

Are there any other proposals on the table aiming to curb the cost of insurance premiums?

Yes.

While they are not on the ballot, two ideas have been debated in past months.

One calls for scrapping multiple private carriers  in favour of a government-run single health insurance scheme, similar to that in the EU. 

The other idea floating around is to replace the current system where rates are determined by factors such as age and canton of residence, and base them on wages instead

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