Editions

Almost all industrialised countries now have higher public social spending than they did a few decades ago. How did this increase come about? A recent KOF study shows that globalisation, economic crises, rising unemployment and an ageing population are the main factors affecting social spending. The COVID-19 pandemic is also likely to influence future trends.

Both in Switzerland and abroad, the Swiss ‘debt brake’ is often seen as one of the country’s big success stories. Since its entry into force in 2003, the government’s gross debt has declined from 124 billion Swiss francs to 99 billion Swiss francs (2016), despite the financial crisis and the Swiss franc shock (see G 1). Nevertheless, some politicians are worried.