Swiss get 13th pension payment | tagesschau.de

There is talk of a “historic referendum” in Switzerland: for the first time, a demand for more welfare state was successful in a referendum. The majority voted for a 13th pension payment.

There was great celebration among the trade unions in Switzerland after 58.2 percent voted “yes” to the introduction of a 13th month pension for all pensioners. “For” was the motto of the popular initiative – “a better life in old age”. “The people have the power in our country and are showing it,” says Pierre-Yves Maillard, President of the Swiss Trade Union Confederation.

He is “very proud” of democracy in Switzerland – of the “wonderful news” to all those who have worked all their lives. “The population has proven that the social pact in this country still works.”

Need for a stronger state

The clear “yes” majority to the unions’ proposal means: The so-called “AHV pension” – the “first pillar” of retirement provision in Switzerland and a kind of basic pension for everyone, currently a maximum of 2,450 francs – will suddenly be increased by 8 .3 percent increased.

Just a few years ago, a comparable pension increase initiative was clearly rejected by the Swiss population. But times have changed: Rising prices for energy, housing and food are also putting pressure on people in rich Switzerland. In this traditionally economically liberal country, the need for a stronger state is growing.

So far, the economy has dominated

The referendum marks a kind of turning point, says political scientist Michael Hermann: “This is really a historic decision for Switzerland. Because a popular initiative to expand the welfare state has never been accepted in Switzerland. This is the first time. And it will have an impact affect the entire political structure of Switzerland.”

Until now, the economy has actually always been dominant in Switzerland. The business associations were actually able to win almost every initiative with the argument that it was too expensive, said Hermann.

The government and the majority conservative parliament were also against the pension increase. There is correspondingly great regret here after the referendum. The younger people would now be “asked to pay” to finance their 13th month pension, said Brigitte Häberli-Koller, parliamentarian for the Center Party: “Their purchasing power will dwindle, their wage taxes will increase, prices will rise. We will have to endure.”

“Displeasure towards economic escapades”

But the population’s “yes” to higher pensions is clear: in the French- and Italian-speaking regions of Switzerland, approval was even more than 70, and in some cases more than 80 percent. The fact that the Swiss were able to see last year how quickly the state came to the aid of the scandalous bank Credit Suisse with guarantees worth billions may also have played a role, according to political scientist Urs Bieri: “It’s also about resentment among the population economic escapades.”

The exceptionally high voter turnout of around 59 percent shows how much the issue of pensions affects the Swiss. As expected, a second proposal had no chance in the referendum: the Young Liberals’ proposal was rejected with 75 percent “no” votes. They didn’t want to increase the pension, but rather the retirement age.