Switzerland Ramps Up Defense Spending Amid Global Tensions

Switzerland is planning to boost its defense and security expenditure by 31 billion Swiss francs ($40.38 billion) starting in 2028, citing geopolitical instability as a driving factor. The initiative involves raising sales tax for funding this increase, aiming for military spending to reach 1% of GDP by 2032.

Switzerland's government has announced a significant escalation in its defense and security budget, planning to inject an additional 31 billion Swiss francs, equivalent to $40.38 billion, beginning in 2028. This move comes in response to a perceived deterioration in the global geopolitical landscape.

The plan includes a 0.8 percentage point increase in the sales tax over a decade, starting in 2028, to finance the enhanced military expenditure. Highlighting a more volatile international environment, officials pointed to similar actions by European nations bolstering their defense capabilities.

Swiss lawmakers express concerns over international conflicts, such as Russia's invasion of Ukraine and tensions involving China and the U.S., potentially threatening national security through espionage, cyber threats, and terrorism. The proposal, which requires parliamentary approval and a public referendum, also outlines investments in IT, cybersecurity, and intelligence gathering.

(With inputs from agencies.)