Switzerland plans major defence spending boost backed by sales tax rise

The government cites growing security risks and "critical gaps" in military capabilities.
Text: Óscar Ontañón Docal
Published 2026-01-29

Switzerland plans to significantly increase defence and security spending, injecting around 31 billion Swiss francs (€32-33 billion) over the next decade as global instability reshapes its traditionally cautious military posture. The government says the move is necessary to address growing geopolitical risks and modern security threats, with spending expected to rise to as much as 1.5% of GDP.

To finance the plan, Bern intends to raise sales tax by 0.8 percentage points for ten years starting in 2028. Defence Minister Martin Pfister warned that Switzerland faces "critical gaps" in its capabilities, pointing to vulnerabilities in areas such as drone defence, cyber security, IT systems and electromagnetic surveillance. Part of the funding would also strengthen border protection, policing and intelligence capacities.

Officials cited Russia's war in Ukraine, rising US-China rivalry and instability in the Middle East as factors increasing the risk of espionage, cyberattacks and hybrid threats. The proposal still requires parliamentary approval and could be put to a public referendum, so for now, we'll have to wait and see how the situation develops...

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