Curbing immigration would endanger the state pension fund; economic growth in Switzerland is expected to accelerate from 2027; and more news in our Thursday roundup.
Curbing immigration would endanger the state pension fund, economist says
In the short and medium term, immigration helps to boost the coffers of the state pension fund (AHV/AVS).
According to Reto Föllmi, economics professor at the University of St. Gallen, “immigration is a kind of ‘fountain of youth’ for the state pension.”
Many immigrants are now between 20 and 45 years old, “and they are the ones whose contributions are helping out during a period when many baby boomers are retiring,” he said.
“It is clear that if immigration were to decline significantly, state pension would come under pressure more quickly. Revenues would immediately decrease.”
READ MORE: Immigrants make positive contributions to Swiss social system
Economic growth in Switzerland is expected to accelerate from 2027
The Swiss economy is expected to pick up speed in 2027 after a period of subdued growth this year, according to a report published on Wednesday by the Organisation for Economic Cooperation and Development (OECD).
Driven by domestic consumer demand, growth is expected to increase to 1.5 percent in 2027, with the GDP rising by 1.1 percent.
On the other hand, outlook for Switzerland’s export-oriented sectors will continue to be challenging, the OECD reports.
And on the subject of the challenges faced by export industries…
US wants to impose additional tariff on Swiss imports
Washington is considering levying an additional, 12.5-percent customs surcharge on products from Switzerland.
The reason given for this move is that the country is allegedly “not doing enough to combat forced labour abroad.”
Here too – just as was the case with trade tariffs in 2025 – the European Union is treated more favoruably than Switzerland: it twould only be subject to an additional 10 percent surcharge.
Committee submits an initiative for a tram-free Basel city centre
Trams should no longer run between Basel’s Barfüsserplatz and Schifflände – this is the gist of the initiative the ‘Go Basel Go!’ committee submitted to the local Chancellery on Wednesday, after gathering the required 4,000 signatures.
The initiative calls for the re-design of the central inner-city axis between Barfüsserplatz, Marktplatz, and Schifflände as a public space for gathering and social interaction.
To that end, “no public transport should operate on the central inner-city axis.”
No word yet when this measure will come to the ballot box.
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