When Profit Trumps Principles: The Controversy Over Industrial Subsidies in Swiss Politics

The closure of local production facilities has a way of making even the most environmentally conscious politicians forget their Sunday school principles. This was evident in an episode this week from the Council of States on the controversy over industrial policy. In Sunday school, noble principles are preached, but on weekdays, people pretend to be “flexible.” This is a common phenomenon in life and politics. So it is no surprise when supposedly liberal politicians suddenly demand industrial subsidies when faced with the closure of their own production facilities.

The Swiss steel industry has been struggling in recent years due to factors such as sharply increased energy prices, subsidies abroad that distort competition, and import restrictions in the EU. The problems at the Gerlafingen steelworks inspired Solothurn politicians to make proposals in the federal parliament for state aid measures. A motion by Solothurn SP Council of States member Franziska Roth called for emergency measures to save the Gerlafingen steelworks – “if necessary with emergency powers.”

According to Roth, Stahl Gerlafingen is “systemically important for Switzerland.” If it were to close, over 500 jobs would be lost and Switzerland would lose its only plant that closes the relevant metal cycles, produces structural steel and secures the raw materials domestically. The motion was co-signed by another Solothurn resident in the Council of States, Centre Party representative Pirmin Bischof. The proposal was on the agenda for this week in the Council of States.

Another initiative on the same topic was also on the agenda this week: a motion by Lucerne FDP Council of States member Damian Müller, which called for help for