2006 OECD Economic Surveys: Switzerland 2006

image of OECD Economic Surveys: Switzerland 2006

This 2005 OECD Economic Survey of the Swiss economy examines key economic challenges including improving the fiscal framework, reforming welfare programmes, improving competition, strengthening innovation, and increasing the labour supply.


English Also available in: French

Improving the Fiscal Framework

Since the early 1990s, Switzerland has been confronted with a growing fiscal management problem which stems only in part from sluggish growth: it is primarily rooted in insufficient control over public expenditure which has triggered a sharp rise in taxation, as well as a rise in deficits and debt. The causes for the expansion of the public sector, which has been very pronounced, are many. They include the high income elasticity of demand for numerous public programmes, such as health care or education (“Wagner’s law”), whereas there are scant productivity gains in the production of those services (“Baumol’s law”).

English Also available in: French

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