The Swiss Federal Council is currently facing budgetary constraints and is working on an austerity package to address the shortfalls in the federal budget.
Finance Minister Karin Keller-Sutter is leading the efforts, which include 60 recommendations from experts, to implement savings across various sectors.
One contentious issue is the proposal to increase taxes on capital withdrawals from the Swiss pension system. The Free Democratic Party (FDP) has opposed this measure and submitted a petition against it.
Another point of contention is the bridging benefits for older unemployed individuals. The proposal to abolish these benefits was opposed by Interior Minister Elisabeth Baume-Schneider due to political concerns.
Left-wing parties have criticized the austerity plan, arguing for exploring avenues to increase revenue. The proposal to introduce a federal property gains tax and raise tobacco taxes were rejected.
The austerity package also includes cuts to funding for affordable housing promotion, which has drawn criticism given the recent referendum supporting non-profit housing initiatives.
The battles over the austerity package are ongoing, and the outcome will shape the future of social welfare programs and the economic landscape in Switzerland.