The Canton of Zug exemplifies a model deeply rooted in Swiss traditions of autonomy and decentralized administration. It showcases the benefits of minimal state interference and a strong emphasis on individual responsibility and local governance.
While Switzerland is often praised globally for its economic stability, low public debt, and high quality of life, Zug demonstrates how these attributes can be achieved through consistent policies of financial self-reliance at the cantonal level. The approval of the 13th AHV pension and the Premium Relief Initiative, which aims to reduce health insurance costs, might seem like a victory for proponents of state intervention. However, the critical question of financing by taxpayers remains problematic.
Instead, Zug operates on the principle of “delivering results rather than just talking”. In 2023, Finance Director Heinz Tännler managed to save an impressive 461 million francs and reduce taxes by 130 million francs. This financial discipline and pursuit of independence are key to success and reflect broader Swiss policy.
Switzerland as a whole benefits from a strong tradition of autonomy and subsidiarity, enabling the cantons to develop independent and innovative solutions. This decentralized structure is one reason why Switzerland is often regarded as one of the world’s most successful countries in terms of economic and social indicators.
Tännler highlights that the success is due to the diversified economy supported by a mix of financial services, chemical, industrial, and raw material sectors. Zug plans to reinvest its financial surpluses into future-oriented areas such as education, childcare, and housing, further strengthening the local economy and underlining the principle of sustainable self-financing.
Demands from neighboring cantons like Zurich for higher financial contributions from Zug are firmly rejected by Tännler, who emphasizes the importance of a thoughtful investment process and thus demonstrates the need for careful and considered financial decisions.
The Canton of Zug thus teaches an important lesson about the Swiss model of success: Economic and social progress are most effective when based on the principles of personal responsibility and minimal government interference. This model, deeply embedded in Swiss culture and politics, offers a sustainable path to prosperity and stability.
Only when the foundations are solid can we afford to be generous. Effective social policy requires a healthy economy. The Canton of Zug impressively shows that true societal progress is only possible when the economy is based on strong and independent principles. Only a robust economic base allows for sustainable investment in social well-being. Before we promise to give, we must ensure that we actually have something to offer.
