The new Swiss budget rule or “debt brake” is based on the idea or rather the aim that the structural deficit should be zero.1 Therefore, the size of the structural deficit is of special importance for the conduct of fiscal policy under the debt brake. In 2003, it was estimated that there is...

Le nouveau mécanisme budgétaire suisse du « frein à l’endettement » part du principe, ou plutôt vise l’objectif, d’un déficit structurel nul.1 L’ampleur du déficit structurel revêt donc une importance particulière pour la conduite de la politique budgétaire dans le cadre du...

This paper describes how the Swiss fiscal rule at federal level has fared since it was introduced in 2003. Generally speaking, the rule has modified the budget process and led to a better implementation of fiscal policy objectives. It is argued that the most important factor is the existence of...