Positive Culture of Austerity: Switzerland’s ’Debt Brake’
Focus of the month
Since the early 2000’s, Switzerland’s fiscal institutions have been successful in keeping the overall levels of taxation and spending at moderate levels. The Swiss debt brake is the ideal model for other countries lacking fiscal discipline to embrace. Although the debt break is already part of many governments’ policies in the form of typical numerical fiscal rules, the mechanism needs to be used for more than just to stave off the immediate economic threat of becoming overwhelmed by a wave of accumulated state debt.
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Mariusz Lukasiewicz,
Tibère Adler
