Swiss Review 5/2019

Swiss Review / September 2019 / No.5 11 protection. The Federal Council had called on the unions and employers to spend the summer working out what proposals they can put to the EU. But the union boss Pierre-Yves Maillard has already indicated his unwillingness to budge. Maillard is also playing for time and wants Brus- sels to cede ground on wage protec- tion, suggesting that Switzerland in- crease its financial contributions in return – as exemplified by past cohe- sion payments to support EU enlarge- ment in Eastern Europe (the “eastern billion”). One possible scenario is that the SVP’s limitation initiative is put to the people in 2020 before the framework deal is signed. The electorate voting against an end to free movement would not only be a de facto endorse- ment of Switzerland’s bilateral ap- proach, but would also strengthen the Federal Council’s position. So far, the tactic of playing for time on the institutional framework agreement has not done Switzerland much harm. The EU decided not to re- new the Swiss stock exchange’s “equivalence” status on 1 July, but measures taken by the Federal Coun- cil to protect securities trading on the Swiss stock market seem to have worked. Brexit limits wiggle room However, more concerning for the economy is the prospect of existing bilateral agreements being eroded. Unless progress is made on the frame- work deal, the EU will not necessar- ily feel inclined to update existing treaties. For instance, the bilateral agreement on technical barriers to trade (MRA) has to be adapted byMay 2020 – otherwise Swiss medtech companies could lose direct access to the EU singlemarket. Essentially, the bureaucratic hurdles would be higher and the costs greater. There is a lot at stake for the economy, given that Switzerland earns one in three francs from trade with the EU. The bilateral treaties account for trade in goods worth one billion francs each day. Free access to the European market is therefore vital to the Swiss econ- omy. The spectre of Brexit is anything but helpful to Switzerland. Faced with the UK leaving the EU, Brussels is doing all it can to make non-mem- bership of the bloc as unattractive as possible. That is the message being given to Switzerland, whom the EU accuses of cherry-picking. Some ob- servers believe that Brussels would have given Berne more flexibility were it not for the need to appear tough on Brexit. Switzerland in figures 21,000 Switzerland’s care homes and hospitals increasingly need more personnel. In 2018, 2,900 men and women completed training in this field. An additional 2,700 nursing professionals arrived from abroad. The number of foreign care workers has increased by 21,000 in the last ten years. 300,000 Some 300,000 new cars were registered in Switzerland last year. Compared to the previous year, new cars in 2018 were less environmentally friendly, accounting for 3.6 per cent higher fuel consumption and increased CO 2 emissions (2017: 134 g/km, 2018: 138 g/km). 670,000 According to the federal government’s Swiss social statistics report, the number of people experiencing poverty in Switzerland rose from 615,000 to around 675,000 between 2014 and 2017. Single mothers, children, and the long-term unemployed are particularly affected. 1,957 Swiss bobsleigh duo Beat Hefti and Alexander Baumann received their Olympic gold medals 1,957 days late. They returned from Sochi (2014) with silver, but the winning Russian crew were eventually disqualified for doping. 5,000 On 26 June 2019, the 0°C threshold in Switzerland began at an altitude of over 5,000 metres above sea level, with many high-elevation localities experiencing record high temperatures, e.g. Davos (29.8°C), the Fuorn Pass (28.1°C), and Säntis (21.0°C). SUMMARY: MUL This article reflects the information available at the time of going to press at the beginning of August. Previous article on this issue: www .ogy.de/CH-EU Safeguarding Swiss wage levels is one of the Federal Council’s main objectives. Photo: Keystone