Competitiveness: Federal Council Pats Itself On The Back

In November 2025, the Federal Council adopted a comprehensive package of 60 measures to improve the competitiveness of the Swiss economy, affecting all departments (finews reported). In connection with the tariff dispute, the federal government had promised to do everything it could to reduce the administrative and regulatory burden on Swiss companies. This Wednesday, the Federal Council has now taken stock.

As expected, the assessment is positive. In the media release, the Federal Council states that more than 90 percent of the 60 measures have already been implemented (16 measures) or are in the process of being implemented (39).

Aviation, climate, road markings

Examples of implemented measures include relief in aviation, climate offset projects and road marking work. "500 companies and organizations in aviation can potentially benefit from longer inspection intervals," it says somewhat technically. The maximum reporting period for the 184 climate offset projects in total has also been extended. And for "necessary" road marking work, companies can now "carry out night and Sunday work without a permit under certain conditions".

Measures currently being implemented include simplifications for imports of wood and wood products from the EU, tax simplifications, the digitalization of government services, as well as the areas of health, data protection, toy trade, waste management and maritime shipping.

Regulate efficiently, strengthen framework conditions

The federal government uses the opportunity to emphasize the great importance it attaches to the competitiveness of the Swiss economy. "Efficient regulation supports Switzerland's favorable economic framework conditions." Regular review and simplification of regulations is therefore a central ongoing task. The Federal Council is still expecting the results of the first studies, which are intended to specifically examine entire regulatory areas for potential relief, later this year.

The examples show that this is not a coherent overall package, but rather a potpourri of measures, although small things can also make a difference. However, some of the measures were already in the process of being implemented when they were announced in 2025, so these were low-hanging fruit.

The financial sector has to wait

There is hardly anything in it for the financial sector. It remains to be seen what results the review of financial market regulation announced in July this year by the Federal Department of Finance (FDF) will bring. A working group with external experts is also at work there. Their insights and proposals are to be incorporated into the report that the FDF wants to submit to the Federal Council by the end of 2027.

On Wednesday, the federal government also made two further decisions that are not unimportant for Swiss economic policy.

A bit of pragmatism on the OECD minimum tax

The ordinance on minimum taxation was amended so that the OECD's administrative guidance will be applied in Switzerland one year later than intended internationally - thereby implementing two motions from Parliament. In May, the recommendation by the Swiss American Chamber of Commerce, based on a scientific study, that Switzerland should withdraw entirely from the OECD minimum tax for large companies had caused quite a stir.

The Federal Council also expressed its intention to gradually normalize the duration of short-time work compensation. The maximum duration of benefits currently stands at 24 months instead of 12 (the last increase of 6 months was a response to the tariff shock), while the waiting period (essentially the companies' deductible) is one day instead of three.

Long-overdue exit from the exceptional short-time work regime

"In view of the positive economic development forecast by the federal expert group on September 17, 2026, the Federal Council sees room for gradual normalization. In doing so, it will continue to closely monitor economic developments and remain in contact with the social partners and the business community."

The maximum benefit period of 24 months still applies until the end of the year. The Federal Council will examine in December 2026 whether the benefit period will be extended again (and by how much), according to the media release. The waiting period is set to return to three days from 2028.

The announcement that short-time work is returning to normality is to be welcomed from a policy standpoint. However, the federal government could have reached this conclusion a little earlier.