Swiss National Referendums In June 2023:

A Guide For Foreigners.

On June 18, 2023, Swiss citizens will go back to the polls to cast ballots in national referendums for the first time since September 2022. What expats need to know about the vote and how the results will impact Switzerland as a whole are detailed below due to the three highly significant issues that are on the ballot.

Switzerland referendums on June 18, 2023.

People in Switzerland may have appreciated the fact that there have been no national initiatives put to a vote for nine months after the referendum-heavy years of 2021 and 2022. The Swiss government has now confirmed that several cantonal and local initiatives, as well as three different national referendums, will be up for a vote on Sunday, June 18, 2023.

Two government-sponsored motions that need public support are up for a vote in this round, and one motion was put to the vote after widespread criticism of a federal decision. Here are the issues that Switzerland’s citizens will vote on in June keeping this in mind.

Switzerland to vote on Climate Law.

The new “Climate Law” is the first and, according to polling data, the most divisive issue on the ballot. “In recent months, Switzerland has come under fire frequently for its position on climate change. According to the Climate Change Performance Index, Switzerland is no longer leading the fight against the issue.

Though the government has pledged to achieve net zero emissions by 2050, efforts to do so have run afoul of both parliament and referendums, most notably the CO2 Act in 2021, which was defeated by 51,6% of voters.

The bill includes measures to lower energy consumption, invest in green technology, and financially support people and businesses that switch from oil and gas to sustainable energy sources, in addition to giving the government permission to meet the 2050 deadline. But unlike the Glacier Initiative, which the Climate Law directly opposes, the plan does not call for a phase-out of fossil fuels by a specific deadline.

The Swiss Climate Law’s proponents and opponents.

The Federal Council and Parliament argued that the Climate Law will assist the nation in weaning itself off of its dependence on imports for its oil and gas needs. Without restrictions or additional fees, they continued, “It strengthens climate protection.”.

The “Electricity Eaters Law, No” referendum committee, on the other hand, claimed that the idea would only lead to further increases in electricity prices. “It is unrealistic to expect that electricity will replace the current energy sources of heating oil, gas, diesel, and gasoline. The procedure is haphazard, worsens the power shortage, degrades the environment, and jeopardizes supply security, they said.

Swiss citizens will vote on the OECD minimum business tax.

Regarding business taxes in Switzerland, there will be a second referendum. The alpine nation has endorsed a plan put forth by the Organisation for Economic Co-operation and Development (OECD), which would see the majority of the world implement a minimum tax rate on international corporations. The law must first receive public approval in Switzerland, unlike other nations, before it can be put into effect.

International businesses would be required to pay at least 15% of their profits in taxes under the proposed regulations. Authorities in other nations where the company conducts business may raise taxes until the 15% threshold is reached if one country does not tax a company sufficiently. Domestic Swiss businesses won’t be impacted by the plan.

Views for and against business tax reform in Switzerland.

The Federal Council, which backed the minimum tax, claimed that if Switzerland rejected the proposal, it would simply lose out on the additional tax revenue. According to federal projections, the government will receive 1 to 2,5 billion francs more in tax revenue annually, with the cantons of Switzerland receiving 75% of that total.

The Parliament added in a statement that the idea “guarantees stable framework conditions and secures tax revenues and jobs in Switzerland. ” “Everyone benefits from this”, they concluded.

In opposition to the vote, the parliamentary minority argued that the proposal would mainly benefit cantons like Zug and Nidwalden, who have deliberately cut their business taxes to attract more international companies.  They made the point that as the law comes into force, these cantons will benefit the most from the huge surplus generated.

Opposition figures also expressed disappointment that the government did not use the OECD proposal as an opportunity to normalise taxes across cantonal borders, arguing that those with already higher tax rates will not see any benefit from the proposal.

Swiss COVID-19 Act to face a third vote.

Finally, for the third time, the COVID-19 Act will face a vote on June 18.  The act contains the laws that allow the government to impose policies designed to contain the spread of coronavirus.

Recently, the Swiss Parliament extended the legal measures of the COVID-19 Act until mid-2024, arguing that “it cannot be ruled out that dangerous virus variants will emerge again. ” However, opponents of the law have since managed to secure 100.000 signatures against the move, triggering the referendum.

The COVID-19 Act allows the government to quickly impose measures against the disease, such as COVID certificates, 2G and 3G rules, home working, closures and restrictions, along with allowing the import and use of COVID medicine that is yet to be approved by Swiss regulators.  If the law is rejected by voters in June, the act will expire in mid-December 2023.

Points for and against the COVID-19 Act.

In supporting the law, the government argued that the COVID-19 Act allowed authorities to act quickly and decisively to “cushion the consequences” of the disease.  “In an emergency, the Federal Council and Parliament want to be able to fall back on tried-and-tested instruments to protect vulnerable people and the healthcare system,” they wrote in a statement.

In contrast, the referendum committee against the measures wrote that the extension is “useless and harmful”, making the point that the law allows the state to reimpose “discriminatory” rules at any time without public oversight.  “With a no, the division in society can be overcome and normality can be returned”, they concluded.

Federal elections are to be held in Switzerland.

After the votes in June, the next set of national referendums are due to take place on October 22, 2023.  Bear in mind that this will also be the date for the next federal election when the composition of the National Council and Council of States will be decided.  For more information, check out the official website.