Calls have been rising in Switzerland for the goverment to borrow more to finance pandemic aid AFP/STEFAN WERMUTHZURICH: Germany, which is known for strict budgets, has tapped debt markets to prop up its virus-hit economy, while neighbouring Switzerland has consistently curbed borrowing despite calls to change course.
In 2020, Switzerland's federal government spent 15 billion francs to support the economy, and preliminary data shows it ended the year with a deficit of 15.8 billion.Some have called for Switzerland to put balanced budget dogma aside during the crisis, to protect against potential long-term economic damage.
If Switzerland is in some ways a very liberal nation, Graff pointed to a"public debt phobia" which he said was a cultural trait. Former Swiss central bank vice president Jean-Pierre Danthine believes the country's debt brake rule should be suspended when the economy is facing a crisis. After falling by 8.6 per cent in the first half of the year, Swiss GDP rebounded with a 7.2 per cent gain in the third quarter.