VAT Increase for Missiles & Heatwave
You will have to expect higher prices in the future, as the Federal Council intends to raise value-added tax (VAT) to finance new missiles. While Switzerland expands its defense, important talks on the Iran conflict are taking place in this country. Additionally, an extreme heatwave in Europe is causing record temperatures.
Purchases and services in Switzerland will become more expensive to finance national defense. Since the delivery of the US "Patriot" system is delayed, the Federal Council is now negotiating with manufacturers from France, Israel, and South Korea regarding the purchase of other missiles. The costs are to be covered by an increase in value-added tax.
The international security situation remains tense, which also affects Switzerland in its role as a mediator. Following attacks by the USA and Israel on Iran in February 2026, technical talks are planned in Switzerland for late June. The conflict already affects more than a dozen countries in the Middle East.
In addition to the political situation, extreme weather is straining daily life in Western Europe. A so-called "heat dome"—a stable high-pressure area that traps warm air over a region—is already causing record temperatures in June, particularly in France.
Far from Europe, a severe double earthquake with a magnitude of 7.5 has shaken Venezuela. In the areas around the capital Caracas and La Guaira, more than 1,000 fatalities are feared; so far, 32 deaths and 700 injuries have been confirmed.
In Ukraine, increased drone attacks on the Crimean Peninsula are leading to power outages in port cities. Meanwhile, Russia accuses the USA of abandoning its role as a mediator in the war.
Further reports, such as on the G7 summit in France or the anniversary celebrations in the USA, can be found in the news section of the app.