Swiss Defense Budget

In September 2022 the Federal Council indicated concretely what the army intends to spend the additional funds that Parliament voted during the summer session. Faced with the war in Ukraine, the Federal Council wants to focus more on international security cooperation. The army's weapon stocks are also going to be increased. The National Council and the Council of States significantly increased the army budget in June 2022: concretely, national defense spending should represent at least one percent of gross domestic product by 2030, i.e. around 7 billion francs . Compared to today, this would correspond to an increase of 2 billion. This would allow the army to develop important capabilities more quickly and close gaps.

Defense Minister Viola Amherd said that for Switzerland, contributing to the stability of the continent was a matter of solidarity. At the same time, Switzerland has the ambition to want to defend itself independently. “Independent defense is not unlimited possible, however,” Amherd said. And to add: “For this reason, Switzerland wants to have the option, in the event of an armed attack, either of defending itself autonomously, or of organizing its defense in collaboration with other States”.

This involves, for example, participation in a wider range of exercises with NATO or participation by the army in EU formations such as the EU "Rapid Deployment Capacity", which is responsible rescue, evacuation and stabilization operations. According to Amherd, these possibilities are all compatible with neutrality.

The Swiss spend about 1% of their GDP on defense. Swiss conventional arms exports are $150,000,000 and imports $125,000,000. Foreign competitors always include direct or indirect involvement by the Swiss defense industry, like license agreements, partial license, final assembly of offsets. Other prerequisites are the transfer of technological know-how and expertise to ensure that the equipment can be properly maintained, fixed, and updated later.

On May 18, 2003, Swiss voters approved the military reform project "Army XXI" that will drastically reduce the size of the Swiss Army. In January 2004, the 524,000-strong militia started paring down to 220,000 conscripts, including 80,000 reservists. The defense budget of currently SF 4.3 billion ($3.1 billion) would be trimmed by SF 300 million, and some 2,000 jobs were expected to be shed between 2004 and 2011.

Switzerland's territory and the airspace above it can become an important prize for either side in the event of conflict between NATO and the Warsaw Pact. Austria is in a similar situation. Only a strong defense capability gives the country a chance to keep out of war. Swiss defense spending decreased continually over the decade of the 1970s both in terms of percentage of the gross national product (1.9 percent in 1979) and in terms of percentage within Federal Budget (19 percent in 1979). Maintenance of the Army was increasingly eating up money needed for new weapons systems.

The Federal Council published the Guidelines of Governmental Policy for 198O-I983. In foreign policy the government stressed its intention to make Switzerland a full member of the United Nations and to increase governmental aid to third world countries from the present 0.2 percent to 0.31 percent of the gross national product in 1983. At the same time, constraints caused by attempts to balance the budget forced a reduction in defense spending (again) from 8.8 billion Swiss Francs to 7.6 billion.

The Federal Council requested the procurement of five defence projects in the amount of CHF 740 million under the 2013 Federal Councils armament program. With the "use network defense» the Federal Council wants to make sure the crisis-resistant telecommunications for the benefit of the army and of the national crisis management. 2011 Initiated procurement of a «support bridges system 45 m» will continue and further implemented the procurement of a «new vehicle generation». With the «improvement and optimization of system availability» to adapted to the spare parts management for aerospace and automotive systems and improved with additional «protected crew transport vehicles» force protection.

The domestic share of the requested material is estimated at 549,5 million Swiss francs, which corresponds to around 74 percent. Through indirect involvement of the Swiss economy on the procurement of foreign material, companies in the Switzerland will receive more orders in the form of compensation transactions. Whose magnitude is estimated at CHF 94.5 million. The effectiveness of employment is thereby raised to 644 million Swiss francs or 87 percent. From the direct and indirect participation stems from the armament of 2013 when, assuming an average annual turnover of 180'000 Francs ever employed employment in Switzerland by 3'577 person-years. An average 500 people will be employed for about 7 years.