Eine Finanzpolitik im Interesse der naechsen Generationen

At a time with growing fears of excessive government debt and of overburdened future generations Swiss fiscal policy seems to be the virtuous role model to be followed. Whereas almost everywhere else government debt has been increasing dramatically after the global economic and financial crisis in 2008, in Switzerland it decreased steadily ever since 2003. According to the official and widespread interpretation this success is essentially a result of the introduction of the so called 'debt brake' on the federal constitutional level. The present study, however, shows that the - at first glance plausible - success story has to be revised substantially. In order to show this the study firstly deals with the question whether the 'debt brake' is indeed responsible for the impressive process of budget consolidation. Secondly, the theoretical arguments in favour of strict limits for government deficits and debt are reconsidered and it is shown that the Swiss debt brake violates the golden rule of fiscal policy according to which (net) public investment should be financed by credit. Thirdly, two important practical problems of Swiss fiscal policy are identified, namely the severe limits it imposes on the government's ability to act in times of economic downturn and the observable neglect of public investment spending. Fourthly, specific solutions addressing the problems identified are developed.