PVL reluctantly recommends a yes to AVS financing

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PVL recommends a yes vote on supplementary AVS funding Yes also to the fireworks initiative No to the proposal on marriage discrimination

Context

TL;DR

  • The PVL recommends a yes vote on supplementary AVS funding
  • Yes also to the fireworks initiative
  • No to the proposal on marriage discrimination
  • The four proposals will be voted on November 29

Key facts

  • Decision → yes with gritted teeth to the financing of the HSV
  • Place of the delegates' → meeting in Bern
  • Glacier → retreat rate of 5% thisyear
  • Popular → vote consultation on four proposals on 29 November

After a close discussion, the delegates of the Liberal Greens (PVL), meeting in Bern, chose to recommend "yes" to the additional funding of the AVS. The decision was communicated at the end of the meeting and defined as a "yes to gritted teeth". The party linked it to the popular decision on the introduction of the 13th monthly payment, explaining that with this recommendation it intends to assume its responsibility.

The political motivation concerns the way in which the new service is financed. The PVL advocates a moderate increase in value added tax, VAT, to create partial and reliable funding and spread the costs across all shoulders. However, the communiqué does not present this intervention as the solution to all the AVS issues: for the remaining challenges, the party speaks of a sustainable reform.

"A moderate increase in value added tax (VAT) would make it possible to guarantee a reliable partial financing and to share the costs among everyone. To address the remaining challenges, however, the AVS needs sustainable reform.”

The statement cited by Keystone-ATS attributes the statement to Patrick Hässig, who is part of the National Council's Social Security and Health Commission. The report thus highlights two distinct plans: the financing of the 13th annuity and the call for broader reform for the remaining insurance challenges.

The other decisions of the meeting

The popular initiative "For a limitation of fireworks" won the support of the PVL after a controversial confrontation. On the proposal that aims to ensure fair taxation for spouses and to end marriage discrimination, however, the position has been clear: the Liberal Greens reject it. The party recalls that the people only approved individual taxation in March and argues that this decision must be respected and applied consistently.

Already in April, the PVL had expressed its support for the amendment of the federal law on war materiel. The people will be called to pronounce on the four proposals on November 29.

Operational details

The tax issue: funding and reform do not coincide

The central point is not merely the affirmative vote, but the separation between the source of funding and AVS reform. In the text released after the assembly, the PVL argues that a moderate increase in VAT could provide reliable partial funding. In the same passage, it acknowledges that other challenges remain and links them to the need for sustainable reform. The position, therefore, does not amount to a promise that the entire AVS/AHV pension provision issue has been resolved.

For those who live or work in Switzerland, the tax distinction helps interpret the news correctly. The press release refers to value-added tax and does not indicate any measure involving direct federal tax. Nor does it mention cantonal or municipal tax rates. Indeed, verified facts about the Swiss tax system distinguish the AFC/ESTV, which is responsible for IFD and VAT, from cantonal administrations, which administer cantonal and municipal taxation. The reference to the cantons therefore serves to define the scope: the proposal described in the source concerns VAT, whereas it is not presented as a change to local taxes.

What can and cannot be quantified

Table 1: Element
ElementDocumented information
Instrument indicatedModerate increase in VAT
Stated objectiveReliable partial funding of the 13th pension payment
Amount of the increaseNot reported in the press release
Overall reformConsidered necessary to address AVS's remaining challenges

The table shows the report's main limitation. The tax instrument and its political function are clear, but the new tax rate, the effective date, and the calculation of the burden on individual consumers or households are missing. The statement about spreading the costs across everyone is a PVL justification, not a numerical breakdown.

The text also provides no basis for measuring an effect on the cost of living, nor does it link the proposal to LPP/BVG or other areas of pension provision. It is therefore not possible to derive from the press release alone a change in an individual's pension or an amount to be paid. The only explicit economic detail is the increase in VAT described as “moderate,” without a figure.

The PVL's choice should therefore be understood as a political recommendation on funding the 13th pension payment. The decision does not contain, in the available report, a technical timetable for the sustainable reform called for to address the remaining challenges.

Key points

From social security to the PVL's political agenda

The delegates' assembly also addressed issues that go beyond financing the AHV. In his speech, party president Jürg Grossen referred to climate and energy issues, as well as relations with Europe. He linked the climate issue to the 5% retreat of glaciers recorded this year: according to the Bernese National Councillor, a policy focused exclusively on CO2 is no longer sufficient.

Climate, water and relations with Europe

In the reasoning attributed to Grossen, the climate issue encompasses water, energy, forests and agriculture, as well as vital resources and, ultimately, well-being. The PVL also stated that it would continue to exert pressure for a national water-storage strategy and a genuine climate policy. The source therefore reports a political line and some declared priorities, but does not indicate an operational plan, spending or a deadline for these initiatives.

The party leadership also reiterated the importance of reliable relations with the European Union. The Bilateral III agreements were described as indispensable for Switzerland. The PVL unanimously supports the agreements as a whole and declares that it is committed to further developing the bilateral approach. On this front too, the report does not describe additional measures or a negotiating timetable.

These issues are not included in the list of the four proposals put to a popular vote on November 29. The amendment to the Federal Act on War Material, by contrast, had already been supported by the PVL in April and is one of the proposals on which the people will vote. The source does not anticipate the outcome of the consultation and does not specify the content of the legislative amendment beyond its subject matter.

The documented picture therefore remains precise but limited: a recommendation on financing the 13th pension payment, two other positions on popular initiatives, support already decided on war material and a political line on climate and Europe. For the pension issue, see AVS and pension.

Source: swissinfo.ch

Frequently Asked Questions
What is the PVL's recommendation regarding the financing of the AVS?
The PVL delegates recommended 'yes' to the additional funding of the AVS, described as a 'clenched teeth' yes during the delegates' assembly in Bern. This recommendation is linked to the popular decision on the introduction of the 13th monthly payment.
What tax instrument does the PVL propose for the partial financing of the AVH?
The PVL advocates a moderate increase in value added tax (VAT) to create a partial and reliable financing, spreading the costs across all shoulders. However, the party recognises that the remaining challenges of the AVS require sustainable reform.
What are the other decisions taken by the assembly of delegates?
The PVL supports the popular initiative "For a limitation of fireworks" and rejects the proposal "Yes to fair taxes also for spouses – Enough with the discrimination of marriage!". In addition, the party had decided in April to support the amendment of the federal law on war materiel.
When will the four popular proposals be voted on?
The four proposals, including the fireworks initiative and the marriage discrimination proposal, will be put to a popular vote on November 29.

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