Swiss ‘Debt Brake’ Generates Surplus as Greece Battles Deficit

Swiss officials are making decisions their peers in Greece or Portugal envy: Canceling bond sales as a budget surplus reduces the nation’s borrowing needs.

Soaring public debt in the 1990s prompted Swiss voters to approve a constitutional amendment requiring that revenue and expenses must balance over an entire economic cycle, though the government may run annual deficits. That restraint has paid off, pushing Switzerland’s borrowing costs to the lowest in Europe as investors rush to the safest investments.