Swiss Army Faces Liquidity Crunch Due to Delayed Budget Increase

The Swiss Army is facing a liquidity crunch due to a delayed increase in its budget. According to Army Chief Thomas Süssli, the army will be short more than one billion francs by the end of 2025 to pay for defense purchases made earlier. However, Süssli stressed that this is not a 'budget shortfall,' but rather a liquidity issue caused by political decisions.

The delay in increasing the military budget to one percent of gross domestic product (GDP) from 2030 to 2035 has resulted in a lack of funds for modernizing the armed forces. As a result, payments totaling 800 million Swiss francs will have to be deferred from 2024 to 2025.

The liquidity crunch is expected to be resolved by 2028, at which point the army can once again invest in strengthening its defense capabilities. However, this means that strengthening the army's defense capabilities will be delayed by several years.