Possible agreement on army fund: 18 billion francs for rearmament

The remaining roughly six billion francs are, according to current planning, intended for further procurements and to offset price increases in the armaments sector. The national government is thereby responding to a development that in recent years has been shaped by sharply rising procurement costs and changed security-policy framework conditions. In earlier statements, the Army had pointed out that several already approved procurement programs had come under pressure due to cost increases.

Background: What is the fund supposed to finance?

For deliberation in Parliament, the focus is now on the question of how the funds are to be deployed in the concrete defense context. According to information from the Finance Committee, the priority here is the protection of critical infrastructure and the strengthening of air defense. The allocation of funds is also to be tied to clearly defined procurement lists and procedural rules in order to ensure parliamentary oversight. Representatives of the Committee emphasize that every major project should continue to be subject to ordinary procurement law.

Differentiated signals are coming from the parliamentary groups. The FDP, which supports the fund in principle, is demanding binding commitments on the transparent use of funds. The SVP is calling for rapid implementation while at the same time criticizing the deliberation in the committees as taking too much time. Both groups, however, share the assessment that the security-policy situation makes investment in national defense necessary.

Positions of the parliamentary groups

Federal Councilor Martin Pfister had previously described the fund as a necessary contribution to safeguarding defense capability and pointed to the investment backlog of recent years. In the Council of States, it is now expected that deliberation will continue in an extraordinary session should the Finance Committee confirm its recommendation. Committee President Benedikt Würth had repeatedly emphasized in the past that the Committee would examine the proposal carefully but expeditiously.

The debate over the size of the fund is closely linked to the debate over offsetting inflation in the armaments sector. Several procurement projects, including ground-based air defense systems, have become significantly more expensive in recent years than originally estimated due to rising material and energy costs. Without the special fund, these additional costs would have to be borne from the ordinary army budget, which would crowd out other projects.

Next steps in Parliament

Should the Finance Committee approve the motion, the path would be paved for a parliamentary debate in both chambers. A final vote in the Council of States and the National Council would then be required before the fund enters into legal force. Observers assume that the decision could still be made in the current legislative period. A spokesperson for the Federal Administration stated that the Federal Council is prepared to provide Parliament with all the necessary documents.

The coming days are considered decisive. Should the Finance Committee give the proposal its fundamental approval, the bill could be debated in the Council of States within the next few weeks. A months-long dispute over army financing would thus move closer to a resolution – albeit without any guarantee that all parliamentary groups will go along with the course.

At the same time, individual voices on the Committee are expressing skepticism regarding the precise earmarking of the funds. In particular, the question is being raised as to how large the share should be that flows directly into concrete procurements, and what portion is to be reserved for offsetting price increases. This differentiation could still play a central role in the further deliberations.