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Commentary: The social state is becoming too expensive, but the Federal Council is making it easy for itself: it relies
🇨🇭 Switzerland /Culture & Society

Commentary: The social state is becoming too expensive, but the Federal Council is making it easy for itself: it relies on more money and immigration

From Neue Zürcher Zeitung · () German

Translated from German, summarized and contextualized by DistantNews.

At a glance

Opinion Named sources Context piece
  • Switzerland's social security system, particularly disability insurance (IV) and the state pension (AHV), faces rising costs and a growing number of beneficiaries.
  • Critics argue that the government is avoiding necessary structural reforms, instead relying on increased funding and immigration to manage the system.
  • The article criticizes the Federal Council for its approach, suggesting it is making the problem easier by not addressing fundamental issues.

Switzerland's social security system is grappling with escalating costs and an increasing number of beneficiaries, particularly within its disability insurance (IV) and state pension (AHV) programs. The IV, once a major concern, saw a rise in new beneficiaries last year, with over 25,000 individuals newly receiving pensions. This surge in claims has led to rising expenses, with no clear progress in reducing the system's substantial debt. The Federal Council has indicated that higher wage deductions may be necessary to cover these costs.

The additional money for disability insurance has been spent, but the problems remain. Will wage deductions now be increased?

— Annick Ramp / NZZCommentary on the financial state of the disability insurance system.

This situation echoes past patterns where financial pressures on the IV led to reforms, including higher pension eligibility hurdles and a focus on keeping people employed. However, critics contend that once additional funding was secured, the political will for further reforms diminished. The same dynamic appears to be playing out with the AHV, which has received increased revenue from taxes, federal contributions, and wage deductions in recent years. The only significant "saving measure" implemented was a cushioned increase in the retirement age for women.

The number of IV beneficiaries has been rising again for several years.

— BundOfficial government figures on disability insurance claims.

The Federal Council's proposed "AHV Reform 2030" aims to gather funds through various means, such as adjustments to dividend taxation and daily sickness benefits, limiting early retirement from the second pension pillar, and potentially increasing value-added tax or wage contributions. However, the article criticizes this approach as overly simplistic and a way for the government to avoid difficult decisions. Social Affairs Minister Elisabeth Baume-Schneider openly stated that Switzerland needs immigration to alleviate pressure on the AHV, suggesting that immigration serves as a political tool to sidestep unpopular adjustments like raising the retirement age.

The money of the taxpayers was spent, which removed the greatest financial pressure – and with it the will for further IV reforms.

— NZZAnalysis of the lack of progress on reforms.
DistantNews Editorial

Originally published by Neue Zürcher Zeitung in German. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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