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Swiss Parliament approves VAT hike to fund 13th state pension

Swiss Parliament approves VAT hike to fund 13th state pension
24 articles·17 sources·updated 3 months ago·View in graph

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4 months · 26 summary articles

  1. Hungary construction costs rise fastest in EU as housing affordability worsens

  2. ETF newcomers underestimate discipline as active funds underperform benchmarks

  3. ECB signals further rate hikes as Germanys inflation stays stubbornly high at 7%

  4. Swiss plan to cut 80m in foreign aid for military expansion sparks backlash

  5. Austria upgrades 2026 growth forecasts to 0.9% as rebound outpaces expectations

  6. German government pledges to compensate states for costly new laws amid fiscal crisis

  7. Merz and Bas push pension reforms despite SPD resistance

  8. Portugal's deposit scheme faces scrutiny as airports lag: Consumer watchdog warns of unclear rules

  9. German pension reform sparks backlash as critics label plan a 'factual cut'

  10. Rentenkommission proposes raising retirement age to 70 amid fierce backlash

  11. Germanys pension commission demands higher contributions, later retirement age, and mini-job phase-out.

  12. Greece launches 150 child payments and 72-month aid amid rising living costs

    Continuation
  13. EU far-right surges as Estonia resists tax hikes, Poland passes windfall tax

    Continuation
  14. Swiss lawmakers reject wage hikes, pivot to VAT hike for 13th pension funding

  15. Swiss Parliament approves VAT hike to fund 13th state pension

  16. Dutch cabinet unveils seven costly wealth tax reform options after parliament rejects capital gains plan

  17. EU accelerates accession talks with Ukraine and Moldova as reforms stall in Balkans

  18. Hungarian wealth tax plan falters as study questions feasibility of 300600 billion forint target

    Continuation
  19. Renters now spend 38 of income on housing as affordability crisis deepens

  20. Fed braces for hawkish shift as Warsh's first meeting looms

  21. European theatres hike ticket prices as inflation squeezes cultural budgets

  22. European Investment Bank approves 7.9 billion to boost green transition and global partnerships

  23. Hungary caps student loan interest at 0 and boosts childbirth grants

  24. Coalition reform talks stall as deadline looms: No breakthrough in three-hour summit

  25. EU warns of food crisis, urges action on fertiliser supply and China trade

  26. Germany proposes scrapping early retirement to save 9.5 billion annually

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The Swiss Parliament on Friday approved a three-week legislative marathon by endorsing a 0.4-percentage-point increase in value-added tax to fund the country’s 13th state pension, the AHV, Finance Minister Élisabeth Baume-Schneider announced in Bern . The chamber’s final vote capped weeks of cross-party negotiations that had repeatedly stalled over the levy’s distributional impact. Baume-Schneider told reporters the measure now carries a “clear price tag,” warning that without the tax hike the supplementary pension would remain unfunded.

The VAT rise—from 7.7 % to 8.1 %—will take effect on 1 January 2027 and is expected to generate roughly CHF 1.2 billion annually, according to government estimates released in May. The funds will be earmarked exclusively for the AHV, which provides universal retirement benefits. The reform had faced opposition from centre-right parties that argued the tax burden would disproportionately affect lower-income households, but the Social Democrats and Greens secured enough votes to push it through the final session before the summer recess.

In a parallel move, the Dutch cabinet on Friday presented seven alternative designs for a wealth tax on Box 3 assets after lawmakers rejected the original plan for a capital-gains levy. Staatssecretaris Eelco Eerenberg told parliament in The Hague that each option carries a “price tag” in lost investment or administrative complexity, leaving legislators to choose the least distortive route .

Across the EU, inflation pressures persisted. Romania remained the bloc’s outlier with an annual rate nearly three times the European average, while food-price growth stabilised in Estonia despite widening pockets of faster inflation . In Finland, grocery prices continued to climb, prompting the Finnish Food Chain Federation to demand clearer competition rules .

Meanwhile, the Romanian central bank’s decision to reject allegations of ROBOR rate manipulation underscored the political sensitivity of the affair. The lenders’ association warned that any sanctions imposed by the Competition Council could erode public trust in the financial system . In Poland, the lower house passed a windfall tax on fuel companies including Orlen, implementing EU rules aimed at capping extraordinary profits from the energy crisis .

From Berlin to Bucharest, policymakers are balancing fiscal consolidation with social protections, leaving households and businesses to navigate higher levies, volatile energy costs, and tighter credit conditions.

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