The financial equalization system between the federal government and the cantons is working well, according to the Federal Council and the major political parties. They rely on the effectiveness report for 2020-2025, which was in the consultation process until Monday. However, the Swiss People’s Party (SVP) is calling for more commitment from the federal government to support resource-poor cantons. They believe that, given the precarious state of federal finances, this should be achieved through policy measures rather than just distributing federal funds.
On the other hand, the Free Democratic Party (FDP) is pushing for a review of the division of responsibilities between the federal government and the cantons to determine which tasks should still be undertaken by the federal government. They suggest that a clarification of responsibilities between the federal government and the cantons may be necessary.
From the perspective of the Social Democratic Party (SP), the effectiveness report for 2020-2025 fails to address the fact that the aging population is likely to further exacerbate the differences between cantons, particularly due to rural depopulation and emigration from mountainous regions.
The current equalization system was introduced in 2008 and adjusted in 2020, with the federal government funding two-thirds of the payments. This ongoing discussion highlights the importance of balancing financial resources and responsibilities between the federal government and the cantons to ensure fair and effective distribution of funds. It also underscores the need for proactive measures to address demographic changes and economic disparities among cantons. By engaging in constructive dialogue and seeking innovative solutions, Switzerland can continue to strengthen its financial equalization system and promote economic stability and social cohesion across the country.