Switzerland is currently in negotiations with the United States regarding the final price of 36 Lockheed Martin F-35A fighter jets intended to replace the aging Swiss air fleet. The discussions have become contentious, with the U.S. Defense Security Cooperation Agency (DSCA) asserting that Switzerland should absorb additional costs. However, Bern is determined to adhere to the previously agreed price of just over six billion Swiss francs, approximately $7.5 billion at current exchange rates.
In a statement, Switzerland’s Federal Council acknowledged that challenges have emerged in recent months concerning the contract. The DSCA contends that Switzerland could be liable for extra costs stemming from significant inflation in the U.S. over the past few years, as well as a rise in raw material and energy prices following the COVID-19 pandemic. In February, the agency conveyed to Switzerland its belief that the established fixed price was a misunderstanding, although it did not specify the additional costs involved.
Swiss officials have reiterated their commitment to the original agreement. National armaments director Urs Loher highlighted that accepting the DSCA’s new terms could lead to extra expenses ranging between $650 million and $1.3 billion. The considerable variation in these figures emerges from factors such as potential U.S. tariffs, inflation predictions, and geopolitical uncertainties.
Amidst these negotiations, Switzerland emphasized the need for a diplomatic solution and has tasked its defense ministry with proposing a resolution to the ongoing dispute. The government initially secured approval for the military expenditure in a tightly contested referendum in September 2020, allowing for the investment of six billion Swiss francs into a new fleet.
The F-35A combat aircraft, already in service with the U.S. Air Force and several European nations, was selected in June 2021 over alternatives including the Airbus Eurofighter and Boeing’s F/A-18 Super Hornet. Two parliamentary committees in Switzerland have since initiated an investigation into the decision-making process that led to the selection of the F-35, particularly in light of several reported technical issues in the U.S. and concerns regarding its high cost.
The contract was officially signed in September 2022, at a time when six billion Swiss francs was equivalent to about $6.2 billion. The Swiss government has warned that terminating the contract could have “significant consequences,” as it would jeopardize the country’s ability to ensure airspace security and public safety by 2032, given that the existing fleet of F/A-18s is nearing the end of its operational life. The first deliveries of the F-35A jets are scheduled for 2027.
Historically, Switzerland has maintained a policy of military neutrality, complemented by mandatory conscription for men in the armed forces.
