The Canton of Bern is set to receive an unexpected financial boost of approximately 320 million Swiss francs from the Swiss National Bank (SNB). This substantial payout follows a remarkable turnaround in the SNB's financial performance in 2025, despite initial half-year losses. The funds will be integrated into the canton's general budget, improving its financial outlook.
Key Takeaways
- The Canton of Bern will receive around 320 million Swiss francs from the SNB.
- This payout was not initially budgeted for by the cantonal government.
- The SNB reported a 2025 surplus of approximately 26 billion francs after an initial loss.
- Bern's Finance Director, Astrid Bärtschi, advocates for continued fiscal prudence.
- Past funds were used for significant investments in infrastructure, including schools and hospitals.
SNB's Financial Reversal Fuels Cantonal Windfall
The Swiss National Bank announced a substantial surplus for the year 2025, reaching an estimated 26 billion Swiss francs. This positive outcome marks a significant recovery from a challenging first half, which saw the SNB report a loss of 15 billion francs. The initial decline was largely due to fluctuating stock markets and a weakened US dollar.
However, market conditions improved by year-end. A notable increase in gold investments contributed to the National Bank's recovery. This financial rebound has enabled the SNB to distribute 4 billion francs, with one-third allocated to the federal government and the remainder to the cantons based on their population size.
Fact Check
- SNB's initial 2025 loss: 15 billion francs.
- SNB's year-end 2025 surplus: Approximately 26 billion francs.
- Total SNB distribution: 4 billion francs.
- Bern's share: Around 320 million francs.
Bern's Unbudgeted Gain and Fiscal Strategy
For the Canton of Bern, the 320 million franc allocation represents a significant and unexpected financial injection. This amount equates to over 2 percent of the canton's roughly 14 billion franc annual budget. The cantonal government had not anticipated any SNB distribution when preparing its 2026 budget last summer.
Astrid Bärtschi, Bern's Finance Director, expressed satisfaction with the news. She emphasized that while the funds would improve the 2026 annual accounts, the canton must maintain its cautious spending approach. The government had already presented a budget with a 365 million franc surplus, even without the National Bank's contribution.
"We are well advised not to simply open the spending floodgates now," stated Astrid Bärtschi. "Due to the SNB's greatly expanded balance sheet and associated profit fluctuations, there will be years without profit distributions again in the future."
Continued Emphasis on Expenditure Control
The Bernese government, under Bärtschi's guidance, plans to continue scrutinizing new or additional expenditures. This approach is consistent with efforts by the Grand Council, which pushed for further savings, including reducing the inflation adjustment for state personnel from 0.5 to 0.2 percent. These measures increased the budget surplus to 385 million francs.
Bärtschi highlighted that cantonal expenditures are growing strongly in several areas, and investments are at record levels. The unexpected SNB payout does not alter the government's commitment to controlling spending growth. This long-term view aims to ensure financial stability.
Background Information
In 2023 and 2024, the Canton of Bern received no funds from the SNB due to the National Bank's significant losses. This recent payout marks a return to the historical pattern of distributions, which are crucial for cantonal finances. The SNB's balance sheet size and market exposure can lead to volatile profit figures.
Future Financial Planning and Investment Needs
Looking ahead, the cantonal government's financial plan for 2027 to 2029 projects an annual SNB distribution of 160 million francs. These expected funds are a basis for planned tax reductions. However, the current 320 million franc windfall will not be set aside for future years.
According to Bärtschi, cantonal financial regulations do not permit creating reserves from such unexpected gains for future smoothing. This contrasts with a past practice where the canton maintained a distribution fund. This fund was designed to save money during prosperous years to offset periods of low or no SNB payouts.
Dissolving the Distribution Fund
The former Gewinnausschüttungsfonds (profit distribution fund) was phased out starting in 2023. Its funds were allocated to meet the canton's rising investment needs. These investments primarily focused on vital infrastructure projects, including schools, police centers, and hospitals.
Reactivating such a fund to smooth future distributions is seen as politically unfeasible by Bärtschi. The Grand Council has previously expressed opposition to this idea. Meanwhile, the agreement governing SNB distributions with the Federal Department of Finance has expired. A new agreement could potentially include mechanisms to stabilize payouts, making them more predictable for both the federal government and the cantons.
- The canton's 2027-2029 plan anticipates 160 million francs annually from the SNB.
- Past fund for smoothing distributions was dissolved in 2023.
- Funds were used for investments in schools, police centers, and hospitals.