Swiss Federal Council Announces CHF 1.1 Billion Package to Support Businesses Amidst Rising Energy Costs

Bern, Switzerland – October 26, 2023 – The Swiss Federal Council today unveiled a comprehensive CHF 1.1 billion (approximately $1.2 billion USD) support package designed to alleviate the financial strain on Swiss businesses grappling with soaring energy prices. The measures, effective instantly, aim to prevent widespread bankruptcies and safeguard employment across key sectors.

the package comprises three primary components: direct financial aid, loan guarantees, and measures to promote energy efficiency. CHF 600 million will be allocated as direct payments to businesses notably vulnerable to high energy costs, such as those in the food processing, hospitality, and manufacturing industries. Eligibility criteria will be determined by cantonal authorities, with a focus on small and medium-sized enterprises (SMEs). The remaining CHF 500 million will be available as loan guarantees through the Swiss National Bank, facilitating access to credit for businesses needing to invest in energy-saving technologies or manage cash flow.

“The current energy crisis poses a important threat to the Swiss economy,” stated Federal Councillor Guy Parmelin, head of the Federal Department of Economic Affairs, Education and Research (EAER), during a press conference in Bern.”This package is a necessary step to ensure the competitiveness of our businesses and protect jobs. We are committed to supporting our economy through these challenging times.”

The Federal Council also announced initiatives to accelerate the adoption of energy-efficient technologies. These include subsidies for energy audits, support for the installation of renewable energy sources, and campaigns to raise awareness about energy conservation. A dedicated task force, led by the EAER and involving representatives from business associations and cantonal governments, will be established to monitor the effectiveness of the support package and adjust measures as needed.

Context: Switzerland’s Energy Landscape and European Crisis

Switzerland, while not a member of the European Union, is heavily reliant on energy imports, particularly from Germany and France.The ongoing energy crisis in Europe, triggered by the war in Ukraine and reduced gas supplies from Russia, has had a ripple effect on Swiss energy prices. Electricity prices have risen by an average of 30% in the past year, with some businesses reporting increases of over 50%. The Swiss government has been actively exploring option energy sources, including hydropower, solar, and wind power, to reduce it’s dependence on fossil