Dear Swiss Abroad,

The Swiss economy can breathe a sigh of relief. The lowering of US tariffs on Switzerland to 15% from 39% became a reality this week. Yet the broader economic environment remains tense, as shown by mass layoffs at a major Swiss insurer.

Also in this selection of the week’s news: ongoing debates in the winter parliamentary session and a final lap on the Formula 1 circuit for a Swiss racing team.

Enjoy your reading!

This content was published on December 13, 2025 - 12:00

6 minutes

I’m mainly in charge of translating, proofreading and publishing articles for SWI swissinfo.ch. I also occasionally write press reviews and original articles on "Swiss oddities" - the things that make Switzerland unique. After studying history and religious studies, I began my journalistic career at Radio Fribourg. After a spell in the newsroom at the Swiss Telegraphic Agency, I joined SWI swissinfo.ch in 2000, where I specialised in federal politics and history. I now translate, proofread and produce stories.

Next year, Guy Parmelin (left) and Ignazio Cassis (right) will hold the rotating president and and vice-president roles, respectively. Keystone / Anthony Anex

On Wednesday, the Swiss parliament elected Guy Parmelin as Swiss president for 2026. The result was never in doubt, but the margin of the vote highlighted his strong reputation.

**The economics minister achieved the best result in Swiss history, securing 208 out of 228 votes. **Foreign Minister Ignazio Cassis was elected vice-president with a more modest 144 votes.

During the second week of the winter session, parliament also adopted the** 2026 federal budget, which foresees a deficit of CHF348 million ($437.4 million). **Left-wing parties criticised cuts to sensitive areas and rising military spending, while those on the right argued the savings did not go far enough. The result is a fragile compromise ahead of more challenging years.

Following the House of Representatives, the Senate approved a motion allowing FM radio stations to continue broadcasting until 2031. Parliamentarians sought to prevent private broadcasters from suffering major audience losses during the transition to DAB-only transmissions. On Thursday, the Swiss Broadcasting Corporation (SBC), Swissinfo’s parent company, announced it would resume FM broadcasting.

Finally, the House of Representatives also tightened military service rules for French-Swiss dual nationals. Until now, participation in France’s “Journée défense et citoyenneté” (Defence and Citizenship Day) could exempt them from Swiss military obligations. Under the new rules, only an equivalent service will qualify for exemption. Around 730 people a year are affected, but the matter returns to the Senate after the House of Representatives extended the measure to other dual nationals.

On November 4, the bosses of Rolex, Richemont, MSC and other Swiss-based multinationals took part in talks at the White House with US President Donald Trump on import tariffs imposed on Switzerland. Keystone

The political and economic saga of the year has reached a turning point. Most Swiss products imported into the United States will now be subject to a 15% tariff.

The measure applies retroactively to November 14, when Bern and Washington agreed on the new rate. Importers who paid the higher 39% tariff since August can request refunds for the difference.

For Swiss companies, the relief is considerable. The 39% tariff rate, which has been in force since August 1, was among the highest imposed by the Trump administration. **Lowering the tariff to 15% means Swiss exporters are again at a similar level to many partners, including the European Union. **“Swiss companies will now enjoy significantly better access to the US market,” said Economics Minister Guy Parmelin.

But observers warn against premature celebration. In a commentary, Swiss public television SRF notes that **“the hardest part may still be ahead”. **The November 14 declaration remains vague, and the US could demand further concessions as negotiations move toward a binding trade agreement.

The merger between these two Swiss insurers has led to numerous job cuts. Keystone / Gian Ehrenzeller

Even with progress on US tariffs, the wider economic environment in Switzerland still appears sluggish. Several developments this week underscore concerns. The most striking was the announcement of thousands of job cuts in the insurance sector.

On Tuesday, newly formed Helvetia Baloise – resulting from the December 2025 merger of Helvetia and Baloise – announced a major restructuring. Between 2,000-2,600 jobs will be cut by 2028, including up to 1,800 in Switzerland. Management cited duplication in administration and IT and the need to strengthen competitiveness in the European market.

Other indicators released this week paint a similar picture: falling sales, weakening employment and cautious forecasts. Raiffeisen Bank expects growth of just 1% next year and highlights a weaker labour market. **The Swiss National Bank kept its key interest rate at 0%, **noting low inflationary pressure but persistent risks of a slowdown.

The Sauber team gave F1 a Swiss touch, as seen here at the German GP on August 1, 2003. Keystone / Jimmy Froidevaux

A page has turned in Switzerland’s Formula 1 history. The Swiss Sauber team completed its final lap at the Abu Dhabi Grand Prix on Sunday, marking the end of over three decades in the sport’s top category.

Founded in 1993 by motorsport executive Peter Sauber, the team competed in over 600 grands prix and trained renowned drivers such as Kimi Räikkönen and Felipe Massa. With modest resources but a strong reputation, Sauber became a point of pride in a country with only one F1 team. Highlights include one race victory, 11 podium places, one pole position and three fastest laps.

Based in Hinwil, canton Zurich, the team has now been taken over by Audi. From next season, it will race as Audi F1 Team. Many hope the brand’s arrival will bring new momentum while preserving Sauber’s legacy.

This is not the team’s first partnership with a German automaker: **BMW controlled it from 2006 to 2009, **achieving strong results before withdrawing and selling back to Peter Sauber.

The proclamation is a traditional highlight of Geneva’s Escalade parade in December. Keystone / Salvatore Di Nolfi

The week ahead

The third and final week of the winter session of parliament will dominate political discussions, with the controversial 2027 budget reduction package on the agenda. Several cantonal and communal parliaments will also debate their budgets in the coming days.

On the economic front, **the week will bring updated forecasts, **including the closely watched KOF economic outlook.

Culturally, **Geneva’s Escalade parade on Sunday will be the highlight **– the traditional commemoration of the failed 1602 Savoyard invasion in Geneva.

SWI swissinfo.ch

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Translated from French using DeepL/amva/sb