VAT to increase for missile purchases and more
The Swiss population must prepare for higher air defense costs, while a short-notice diplomatic summit is causing massive disruption to tourism at the Bürgenstock. Additionally, an extreme heatwave in neighboring France is leading to historic record temperatures.
In the future, you will have to expect higher prices when shopping, as the Federal Council (the national government) intends to increase value-added tax (VAT). The money is needed to urgently purchase new missile defense systems from manufacturers in France, Israel, or South Korea. This step became necessary because the delivery of the already ordered US Patriot missiles has been delayed, and according to the government, Switzerland is currently not sufficiently protected.
If you had planned a stay at the Bürgenstock Resort, you might be affected by short-notice cancellations: the hotel had to relocate over 2,000 guests and cancel 1,200 bookings within just 48 hours for an Iran summit. The summit is taking place against the backdrop of the Iran war, which has been ongoing since February 2026. Meanwhile, the US Senate has restricted President Trump's powers for further acts of war, even though he has announced new channels of communication with Iran.
Travelers to France should prepare for extreme health risks, as temperatures there have reached over 44 degrees, the highest since records began in 1947. The heatwave is breaking old records across the country.
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