Swiss to Buy Fewer US Fighter Jets After $1.6 Billion Price Hike
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Article content(Bloomberg) — Switzerland said it will buy fewer Lockheed Martin Corp. F-35 fighter jets from the US than planned, in an attempt to keep procurement costs within the limit approved by voters.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentBern said in June that it faced additional costs of as much as 1.3 billion Swiss francs ($1.6 billion), due to rising energy and raw material costs. That put it at odds with the US over the originally envisioned price of 6 billion francs for the purchase of three dozen F-35s.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article content“Due to the foreseeable additional costs, it is not possible from a financial policy perspective to maintain the originally planned number,” the Swiss government said in a statement Friday. Instead, it now plans to procure as many fighter jets as possible within the 6 billion-franc cap.Article contentArticle contentThe purchase of new jets has long been controversial in neutral Switzerland. It was approved in a popular vote in 2020 by only the thinnest of margins and was explicitly tied to the original price estimate. A poll in October showed a majority of voters were willing to walk away from a deal, either by buying an alternative jet or aborting the purchase completely.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentYet, Europe’s changed security landscape after Russia’s full-scale invasion of Ukraine and US demands for the region to spend more money on defense have made it harder for small countries like Switzerland to get the weapons they need. US support for Ukraine also means that the neutral nation hasn’t been prioritized, while Swiss defense firms have suffered under strict export rules.Article contentLast year, Switzerland decided to increase its defense spending to 1% of gross domestic product by 2032, which is still substantially lower than pledges by NATO members.Article contentThe F-35 procurement also comes at a sensitive time because Switzerland is finalizing a deal with the US to lower import tariffs to 15% from 39%. That comes after Swiss businesses pledged to invest $200 billion over the next five years in the US.Article content—With assistance from Bastian Benrath-Wright and Isabel Demetz.Article contentTrending Canadian households boost their wealth to another record high of $18.4 trillion with ‘supercharged' financial asset growth Wealth Couple's TFSAs, RRSPs and non-registered accounts are 90% equities. Should they be more conservative toward retirement? Personal Finance CRA penalized taxpayer for repeated failure to report income Personal Finance Posthaste: Canadian investors love the Big Six banks more than is good for them, this adviser says News Canadian oilsands majors aim to hold spending steady as broader industry braces for tough year Oil & Gas Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. Canadian households boost their wealth to another record high of $18.4 trillion with ‘supercharged' financial asset growth Wealth Couple's TFSAs, RRSPs and non-registered accounts are 90% equities. Should they be more conservative toward retirement? Personal Finance CRA penalized taxpayer for repeated failure to report income Personal Finance Posthaste: Canadian investors love the Big Six banks more than is good for them, this adviser says News Canadian oilsands majors aim to hold spending steady as broader industry braces for tough year Oil & Gas