“The army has been ruined for thirty years”: Amherd rejects reports of a financial hole

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“The army will pay all contractually agreed invoices for this and in the coming years without exceeding the payment limit,” Defense Minister Viola Amherd (61) said on Monday during her trip to Estonia at the request of the Keystone-SDA news agency. It was the first time Amherd had personally spoken about the issue.

According to long-standing practice, financial planning for defense procurement uses higher amounts than contractual obligations, the defense minister said. This has the advantage that projects that are delayed or not carried out for whatever reason can be replaced by other necessary tenders. The Tax Authorities have not yet expressed any criticism about this.

In addition, commitment loans granted for a particular year are not fully utilized in that year, Amherd continues: “The current situation is anything but exotic when it comes to financial policy.”

“There was no reason to inform the entire Federal Council”

At the same time, the Federal President referred to the changed security situation in light of the wars in Ukraine and the Middle East: “The army has been tailored for thirty years and it is clear that this cannot be corrected in five years. without increasing funding.” The question arises whether, after decades of peace dividends, we can continue as before.

The CH Media newspapers reported on Saturday that Finance Minister Karin Keller-Sutter (60) had heard through the media about the liquidity bottleneck at the Ministry of Defense. They referred to statements made by Keller-Sutter during a panel discussion. There was no reason to inform the entire Federal Council, Amherd said when asked. The Federal Council has the necessary figures for financial planning. The Finance department is aware of the overhang in the obligation loans.

As for the pace of increasing army spending, Amherd says there are no differences between her and army chief Thomas Süssli (57). Parliament had originally passed two motions demanding that military spending be increased to 1 percent of gross domestic product by 2023. However, in the winter session budget debate, she agreed to the Federal Council’s request to extend the relevant deadline until 2035 – after a lengthy tug-of-war between the National Council and the Council of States. (SDA)

Source:Blick