Politics · Switzerland · 12 hrs ago
Zurich faces rising debt as credit outlook turns negative
Zurich recorded its first deficit in ten years in 2025, putting the Swiss city’s finances under pressure.
A financial plan released in September projects debt continuing to rise through 2030.
S&P has changed the outlook on Zurich’s AAA credit rating to negative, although the top rating remains in place.
The city plans to increase its workforce from about 22,700 positions in 2021 to 27,333 in 2027, while annual personnel costs are nearly four billion Swiss francs.
Road changes that remove parking and add cycle lanes are also making trips into the centre harder for tradespeople and businesses, according to the account.
A 300 million-franc energy project faces questions over its location: a city oversight commission has left the site undecided, while the city government wants to build at Selnau and says the project remains on schedule and within its originally stated cost range.
Zurich recorded its first deficit in 10 years in 2025, and its debt is forecast to keep rising through 2030.
S&P lowered the outlook on the city’s AAA credit rating to negative, while the top rating remains in place.
The city’s workforce is planned to grow from about 22,700 positions in 2021 to 27,333 in 2027.
Personnel costs are nearly CHF 4 billion a year, while the city is also investing billions in property, transport and energy.
A city oversight commission has questioned the location of an energy project, while the executive wants to keep it at Unterwerk Selnau.
- Who
- The City of Zurich and S&P. The city’s executive and its audit commission also feature in a dispute over an energy project.
- What
- Zurich faces rising debt, and S&P has changed the outlook on its AAA rating to negative.
- When
- The city reported a deficit in 2025. It presented financial planning through 2030 in September.
- Where
- Zurich, Switzerland.
- Why
- The city’s financial planning shows debt continuing to rise. The article cites growing staffing and investment commitments.
Zurich’s audit commission
Zurich’s executive
Project location
Zurich’s audit commission
The commission considers the location of the CoolCity energy centre an open question.
Zurich’s executive
The executive wants to keep the energy centre at Unterwerk Selnau.
Zurich had around 22,700 staff positions.
Zurich recorded its first deficit in 10 years.
The city presented financial planning through 2030, showing debt continuing to rise.
The city plans to have 27,333 staff positions.
- Credit outlook
- S&P lowered Zurich’s outlook to negative; its AAA rating remains in place.
- Deficit
- 2025; first in 10 years
- Financial planning
- Presented in September; covers through 2030
- Staff positions
- Around 22,700 in 2021; 27,333 planned for 2027
- Personnel costs
- Nearly CHF 4 billion a year
- CoolCity
- Estimated cost of around CHF 300 million