Swiss F-35 Jets to Cost Billions More After U.S. Talks Collapse
(MENAFN) Switzerland will face significantly higher costs than expected for its purchase of U.S.-made F-35 fighter jets after negotiations with Washington, DC failed to lock in a fixed-price contract, the Federal Council announced Wednesday.
Initial plans set the cost at CHF6 billion ($7.47 billion) for 36 aircraft, but the Swiss government now estimates an overrun of up to CHF1.3 billion ($1.6 billion) after “intensive talks with high-ranking representatives of the White House” fell through.
The discussions collapsed over the summer when U.S. officials refused to shift their stance, leaving Switzerland without price certainty for the defense acquisition.
Defense Minister Martin Pfister was unable to secure concessions even after direct communication with his American counterpart, Pete Hegseth, according to report by a Bern-based multilingual international news outlet.
“As a result of the talks, Switzerland must accept that the price per production batch corresponds to the value negotiated between the US government and Lockheed Martin,” the Federal Council stated.
The total cost could now climb by an additional CHF650 million to CHF1.3 billion ($808 million to $1.6 billion), depending on variables such as U.S. inflation, global commodity prices, and possible tariff hikes, officials said.
Despite the sharp cost increase, the government remains firm on its defense strategy. The Federal Council has tasked the defense ministry with reassessing the procurement and presenting “various options” by the end of November. However, cancellation is not under consideration.
“The government reaffirms that it remains committed to the procurement of the US F-35 jets,” the statement concluded.
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