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Do the COVID-19 Crisis, Ageing and Climate Change Put Swiss Fiscal Sustainability at Risk?

Author

Listed:
  • Thomas Brändle

    (Eidgenössische Finanzverwaltung EFV)

  • Pierre-Alain Bruchez

    (Eidgenössische Finanzverwaltung EFV)

  • Carsten Colombier

    (Eidgenössische Finanzverwaltung EFV)

  • Martin Baur

    (Eidgenössische Finanzverwaltung EFV)

  • Lukas Hohl

    (Eidgenössische Finanzverwaltung EFV)

Abstract

The ongoing coronavirus pandemic crisis as well as demographic and climate change pose major challenges for public finances. This article deals with the implications of demographic trends in Switzerland, i.e. the progressive ageing of the population and its impact on the country’s public finances in the long run. As the analysis shows, the brunt of the demographic burden is borne by the old-age pension scheme, health and long-term care. This article also addresses the financial ramifications of the COVID-19 crisis and shows the need for economic policy action over the longer term to ensure the sustainability of public finances in Switzerland. Furthermore, a qualitative assessment of climate change is included, as it constitutes an additional major long-term challenge for public finances.

Suggested Citation

  • Thomas Brändle & Pierre-Alain Bruchez & Carsten Colombier & Martin Baur & Lukas Hohl, 2022. "Do the COVID-19 Crisis, Ageing and Climate Change Put Swiss Fiscal Sustainability at Risk?," Intereconomics: Review of European Economic Policy, Springer;ZBW - Leibniz Information Centre for Economics;Centre for European Policy Studies (CEPS), vol. 57(1), pages 48-55, January.
    • Handle: RePEc:spr:intere:v:57:y:2022:i:1:d:10.1007_s10272-022-1027-8
    DOI: 10.1007/s10272-022-1027-8
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    References listed on IDEAS

    as
    1. Olivier Jean Blanchard, 1990. "Suggestions for a New Set of Fiscal Indicators," OECD Economics Department Working Papers 79, OECD Publishing.
    2. Jean-Francois Bastin & Emily Clark & Thomas Elliott & Simon Hart & Johan van den Hoogen & Iris Hordijk & Haozhi Ma & Sabiha Majumder & Gabriele Manoli & Julia Maschler & Lidong Mo & Devin Routh & Kail, 2019. "Understanding climate change from a global analysis of city analogues," PLOS ONE, Public Library of Science, vol. 14(7), pages 1-13, July.
    3. Braendle, Thomas & Colombier, Carsten, 2020. "Budgetary targets as cost-containment measure in the Swiss healthcare system? Lessons from abroad," Health Policy, Elsevier, vol. 124(6), pages 605-614.
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    More about this item

    Keywords

    H60; J11; Q54;
    All these keywords.

    JEL classification:

    • H60 - Public Economics - - National Budget, Deficit, and Debt - - - General
    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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