The Swiss government, led by Finance Minister Karin Keller-Sutter, has unveiled a cost-cutting package aimed at saving CHF 3.7 billion annually.

The measures, which include changes to climate protection and childcare funding, have drawn sharp criticism from political parties and unions.

The Greens labeled it a "No-Future Package" and hinted at a possible referendum, while the Social Democrats called it a "frontal attack on social Switzerland.

" Meanwhile, the government is also proposing higher taxes on pension fund withdrawals, sparking concerns among savers and financial experts.

These tax changes aim to address a projected CHF 3 billion annual deficit but have raised fears of financial strain on middle-class retirees.

Experts suggest a unified tax system for pension withdrawals to simplify the process and ensure fairness.

Both proposals are now open for public consultation, with significant political and public debate expected.