ZURICH (Reuters) -Switzerland will spend 269 million Swiss francs ($329.37 million) to support Geneva as a hub for international diplomacy, the government said on Friday, amid growing financial pressure on global institutions hit by spending cuts and lower donations. The money comes as international organisations based in city face increasing competition from other cities to […]
World
Swiss to spend $329 million to support Geneva as diplomatic hub
Audio By Carbonatix
ZURICH (Reuters) -Switzerland will spend 269 million Swiss francs ($329.37 million) to support Geneva as a hub for international diplomacy, the government said on Friday, amid growing financial pressure on global institutions hit by spending cuts and lower donations.
The money comes as international organisations based in city face increasing competition from other cities to host them.
Bern said it was making the funding available to reaffirm the “central role of international Geneva in Swiss foreign policy and its unique role in global governance.”
Switzerland will invest “not out of nostalgia, but because it is an investment in the future of a world order based on the rule of law and humanity,” said Foreign Minister Ignazio Cassis.
Foreign ministry officials said other countries were interested in hosting international organisations because they had noticed the political and economic benefits Switzerland gained from the arrangement.
“This has intensified somewhat at the moment because of the cost pressures,” said Juerg Lauber, head of Switzerland’s mission to the U.N. in Geneva.
The 269 million francs covers the period from 2025 to 2029, with the government requesting a credit of 130.4 million francs from parliament later this year, a 5% increase from the previous period. The government has already approved 21.5 million francs for urgent measures to help Geneva-based organisations.
Geneva is a hub for global diplomacy, hosting more than 40 international organisations, including the United Nations, World Health Organisation, and the World Trade Organisation.
In recent months, cuts in contributions or suspension of payments by individual member states have led to liquidity bottlenecks at international organisations.
Numerous institutions have been forced to slash budgets, cut staff or even consider relocating abroad, the government said.
($1 = 0.8167 Swiss francs)
(Reporting by John RevillEditing by Dave Graham)