The Swiss government is considering a significant increase in defense spending, proposing a rise in value-added tax (VAT) of 0.8 percentage points for a decade starting in 2028. This move comes as officials cite escalating international tensions and a need to bolster the country’s defenses against evolving threats, including cyberattacks. The debate over the budget increase highlights a broader trend of increased military spending across Europe and beyond.
Federal Councillor Martin Pfister, head of the Department of Defence, outlined the rationale behind the proposed increase, stating that Switzerland is facing growing exposure to hybrid threats and remote attacks. According to Pfister, the current military equipment is insufficient to address these challenges. The plan aims to raise defense expenditure to 1% of Switzerland’s gross domestic product (GDP) by 2032, up from 0.66% in 2024, according to figures from the Federal Department of Defence, Civil Protection and Sport (DDPS). Martin Pfister was surprisingly elected to the Federal Council in March 2025.
The proposed VAT increase is intended to provide the necessary funding for these enhancements. A key concern driving this decision is the increasing prevalence of “hybrid warfare,” which combines conventional military tactics with cyberattacks. Mathieu Henderson, a journalist at RTS, explained that hacking operations are already a regular occurrence, targeting businesses and critical infrastructure such as hospitals, dams, and telecommunications networks. “Switzerland, I think, is lagging behind in terms of ‘cyber’ protection in particular. There is a desire to renovate all of that,” Henderson said.
Growing Global Defense Spending
Switzerland is not alone in increasing its defense budget. In 2025, NATO countries committed to raising defense spending to at least 5% of their GDP by 2035. The European Union also approved an €800 billion plan to strengthen the defense capabilities of its member states. Even in the United States, Donald Trump has announced plans for a 50% increase in the defense budget in 2027 compared to 2026. Russia’s military expenditure reportedly represents more than 10% of its GDP, according to Euronews.
The proposed increase in military spending is not without opposition within Switzerland. While right-leaning parties generally support the principle of a budget increase, the Green Party has voiced opposition, calling it a “massive and unnecessary” increase in the army budget. The Social Democratic Party (PS) has also criticized the billions earmarked for “tanks, artillery systems, and F-35 fighter jets.”
What Does the Swiss Army Do?
The Swiss army’s missions are varied, encompassing national defense, protection of the population, and support for civilian authorities in emergencies. The challenges it faces include adapting to new technologies, maintaining a well-trained militia system, and addressing the evolving threat landscape. The government’s push for increased spending reflects a recognition of these challenges and a desire to ensure the army is adequately equipped to fulfill its responsibilities.
The podcast “Armée suisse: pourquoi dépenser plus?” (Swiss Army: Why Spend More?) from Le Point J provides a detailed exploration of these issues. The episode features insights from Mathieu Henderson and delves into the specific needs of the Swiss armed forces in the face of modern threats. You can listen to the full podcast episode here (13 minutes).
The decision to increase defense spending and potentially raise VAT will undoubtedly spark further debate within Switzerland. As international tensions continue to rise, the government faces the complex task of balancing security concerns with economic considerations and public opinion. The coming months will be crucial as the proposal moves through the parliamentary process.
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