Switzerland to Increase Defense Spending by 31 Billion Francs Starting 2028 Amid Global Instability
Switzerland plans to boost its defense spending by 31 billion Swiss francs ($40.38 billion) starting in 2028, driven by global geopolitical tensions. To fund this increase, the government will raise the sales tax by 0.8 percentage points over ten years, aiming for defense spending to reach 1% of GDP by 2032. The proposal, which requires parliamentary approval and a public referendum scheduled for summer 2027, comes in response to international conflicts, including Russia's invasion of Ukraine.
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Switzerland plans to increase its defense and security budget by 31 billion Swiss francs ($40.38 billion) starting in 2028, driven by geopolitical instability. The initiative will involve a 0.8 percentage point increase in the sales tax over ten years to fund this military expenditure, aiming for defense spending to reach 1% of GDP by 2032.
The government cites concerns over international conflicts, including Russia's invasion of Ukraine and tensions with China and the U.S. The proposal requires parliamentary approval and a public referendum, with a national vote scheduled for summer 2027.
The current VAT rate of 8.1% will increase temporarily to finance military upgrades, which are deemed necessary due to years of budget cuts. A draft law is expected by March, with parliamentary consideration in autumn.
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