Switzerland is facing a critical financial juncture as debates intensify over federal subsidies and spending cuts.

The Institute for Economic Policy (IWP) in Lucerne has highlighted "questionable" subsidies, noting a significant increase in federal subsidies by 11 billion francs since 2014, reaching 48.8 billion francs this year.

The IWP's report suggests that reforming these subsidies could address both short- and long-term budget gaps.

Meanwhile, an expert group led by Serge Gaillard has proposed measures to stabilize the federal budget by saving 4 to 5 billion francs annually.

However, these proposals have sparked controversy, with critics like SP Co-President Cédric Wermuth dismissing the need for cuts and labeling the debt brake as "pseudo-moralistic.

" Former National Councilor Gerold Bührer argues for fiscal responsibility, emphasizing the importance of maintaining Switzerland's economic model through disciplined spending and competitive taxes.

As the debate continues, the challenge remains to balance fiscal prudence with economic growth.