Switzerland’s House of Representatives on 9 December struck CHF 10 million in federal funding from the 2026 budget for an overnight train linking Basel and Malmö, following the upper chamber’s rejection earlier this month. The decision leaves Swiss Federal Railways (SBB) without the public support it said was essential to run the thrice-weekly service from April 2026.
Backers argued the subsidy—equivalent to CHF 100-200 per ticket—would provide a low-carbon alternative to short-haul flights and boost Switzerland’s rail connectivity to Scandinavia. Opponents, led by the Radical-Liberal Party, countered that the CO2 Act allows but does not oblige subsidies and that taxpayers should not foot the bill for “tourist trains.”
![Swiss Parliament Pulls Plug on CHF 10 Million Night-Train Subsidy to Sweden]()
Finance Minister Karin Keller-Sutter noted that the money had been inserted at Parliament’s own request and warned that cancelling it now creates planning uncertainty. Families who pre-purchased tickets will have to seek refunds directly from SBB. The carrier has not yet announced whether it will shelve the project or look for private financing.
For Swiss businesses the cancellation limits low-carbon travel options on the Sweden–Germany–Switzerland axis. Companies with strong ESG mandates may need to rely on longer daytime rail journeys or accept higher emissions from connecting flights. The episode also signals a tougher fiscal climate for future cross-border mobility projects.
Backers argued the subsidy—equivalent to CHF 100-200 per ticket—would provide a low-carbon alternative to short-haul flights and boost Switzerland’s rail connectivity to Scandinavia. Opponents, led by the Radical-Liberal Party, countered that the CO2 Act allows but does not oblige subsidies and that taxpayers should not foot the bill for “tourist trains.”
Finance Minister Karin Keller-Sutter noted that the money had been inserted at Parliament’s own request and warned that cancelling it now creates planning uncertainty. Families who pre-purchased tickets will have to seek refunds directly from SBB. The carrier has not yet announced whether it will shelve the project or look for private financing.
For Swiss businesses the cancellation limits low-carbon travel options on the Sweden–Germany–Switzerland axis. Companies with strong ESG mandates may need to rely on longer daytime rail journeys or accept higher emissions from connecting flights. The episode also signals a tougher fiscal climate for future cross-border mobility projects.
