Switzerland: Announcement of added export subsidies

On 17 August 2011, the government of Switzerland considered the implementation of added export subsidies for the months September-December in the given year. With the details still to be decided, the government designated the expected budget surplus of SFr 2 billion (USD 2.4 bn) to be spent on "the external sector, tourism, innovation, research, infrastructure". The Federal Council announced the final specifications of the programme on 31 August 2011. However, public criticism over the proposed export subsidies led the government to reduce its programme to CHF 870 million, most of which went into unemployment insurance (500 million) and education (10 million to the Swiss National Science Foundation). The Federal Council deemed the additional expenditure as necessary means to counter the appreciation of the Swiss currency against the Euro and the US Dollar witnessed in the first half of 2011.