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Business InsiderNov 16, 2022
Switzerland: Referendum to Increase Pensions Passes
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The Facts
A nationwide referendum held Sunday, which came amid concerns about the rising cost of living for older people, saw Swiss voters opt to grant themselves one additional month's worth of pension every year — 60% of those who voted approved of the change.
AVIVO, a group representing pensioners, described the result as "a historic day for retirees." The initiative emerged victorious in most of Switzerland's 26 cantons, securing the double majority necessary for approval.
The Spin
Establishment-critical narrative
The left-wing initiative won on Sunday due to a purchasing power crisis that has affected a broad spectrum of voters. This was a protest vote against past Swiss economic excesses, expensive rescue programs for mismanaged banks and energy companies, high manager salaries, and the COVID-19 pandemic, over which the government raised huge sums for big businesses while ordinary people received nothing. Voters have voiced their belief that it is the turn of ordinary Swiss people to be compensated for the soaring cost of living.
Pro-establishment narrative
This is a problematic outcome for government and the overall financial stability of Switzerland. Voters chose to ignore the government's appeals over this initiative, and have compelled representatives to implement a huge, unfunded compensation scheme for pensioners. The state is now left with the impossible task of devising a strategy to finance the program, all while strong opposition among the electorate to tax hikes and welfare cuts persists.
