As Switzerland prepares to vote in the November round of referendums, data from the Federal Roads Office suggests that the plan to expand the motorway network will lead to higher fuel prices. With the Swiss government set to spend 5 billion francs on expanding the highways, drivers are expected to foot the bill.
Switzerland to vote on motorway expansion in November
On November 24, Swiss citizens will head to the polls and have their say on four federal referendums. Alongside reforms to tenancy law and healthcare, voters will decide on a plan to spend 5 billion francs on expanding the motorway network.
The plans would greenlight several major construction projects including expanding the A1 motorway between Le Vengeron and Nyon and around Bern, and the building on the Rhine (A2, Basel), second Fäsenstaub (A4, Schaffhausen) and third Rosenberg (A1, St. Gallen) tunnels.
How will the expansion of Swiss motorways be paid for?
One of the main bones of contention surrounding the vote is how to pay for the motorway expansion. Though the Federal Roads Office and Transport Minister Albert Rösti have assured that “sufficient funds are available” for the construction without having to change vehicle taxes and fuel levies, federal data revealed by CH Media has suggested otherwise.
This is because of what is called the National Roads and Agglomeration Fund (NAF) - the fund used by Switzerland to fund road maintenance and expansion, which itself is funded via fuel and vehicle levies. In 2022, the Federal Council and Roads Office warned that thanks to the increasing popularity of electric cars, the NAF’s reserves would fall to “less than 500 million francs” by 2027.
If the NAF’s funding falls below this threshold, the government are required to increase fuel taxes by 4 rappen (cents) a litre, a cost that would likely be passed onto drivers. This claim was repeated in the government’s financial forecast for 2025 to 2027, adding that a fuel tax increase would be necessary by 2027. In its plans for widespread federal budget cuts, an expert commission predicted that the fuel tax rise would happen even earlier.
Are Swiss fuel tax rises inevitable?
When faced with their own findings, the Federal Roads Office told CH Media that the NAF’s reserves will “fall to 500 million in around four to five years”, with the fund currently possessing assets totalling 3,67 billion francs - less than the 5 billion required for motorway expansion, provided the projects do not go over budget. Nevertheless, under current legislation, this means an increase in fuel duty is a matter of when rather than if.
Speaking to Watson, Social Democratic National Councillor Jon Pult argued that those "who do not benefit from the expansion but are really dependent on their cars" - those in the mountains, for example - would be most affected by the fuel tax rise. For the sake of a fair vote, he called on Transport Minister Albert Rösti to explain “the connection between the motorway expansion and the increase in petrol prices" - the fear of higher fuel prices is seen as one of the main reasons why Switzerland’s CO2 Law failed to pass in 2021.
Federal Council proposes electric car tax to fill financial hole
For their part, the Federal Council told Watson that it hoped to expand the motorways without raising the fuel tax. Instead, they announced plans for a “replacement tax” to be charged on electric vehicles from 2030, confirming that they would begin to draft the plan by the start of next year.
However, as the new tax would have to pass parliament and be subject to a referendum before it could be implemented, Watson feared it would not be in place before the NAF runs out of money.
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