A question of defence
Markus Ritter's charge, safe Swiss investments and spies around the corner
Dear Insider,
Some battles are easy to win.
All you have to do is know when to fight…and when not to.
You also have to know who you are up against - obviously.
In the political sphere in Switzerland, that is shaping up to be a bit difficult.
This week’s edition highlights the very odd campaign to fill the Center’s Federal Council seat.
Meanwhile, another (more sinister) battle is raging within Switzerland.
Here too, the enemy isn’t so very clear…
Enjoy,
Ian
💡PS: Let’s connect with me on LinkedIn and on X - I would be interested to know what other Swiss insights you will find valuable.
A battle of one
The ongoing political saga over Viola Amherd’s replacement on the Federal Council has taken a new twist:
Someone wants the seat.
Last Saturday, Swiss Farmer Association President Markus Ritter dramatically threw his hat into the ring to take over the Defence Department from Amherd.
And he made a strong case for the job…
Now he faces a unique battle…against no one…or everyone.
While no other major candidates have come forward, there are grumblings from the left that only putting forward one candidate (a man) to replace Amherd (a woman) would not be acceptable.
Some members of the Socialist Party have gone as far as to suggest that if the Center doesn’t find a few more candidates, they would support a Green Liberal to take over.
That would cause even more outcry…since it would deprive the Center of their right to a seat according to the sacred “Magic Formula” of parliamentary representation.
🏔Mountains of money
If you have money - where do you put it?
If not under the bed - like some people - then what about investing in a chic Swiss ski resort…
…like a lot of foreigners in Switzerland?
Over the last 20 years, the Swiss Alps have become a focal point for gigantic real estate investments, with developers committing hundreds of millions of francs into expansive tourist projects.
In Canton Uri, the sleepy village of Andermatt has been transformed by more than SFr1.55 billion in investments since 2005 from Egyptian billionaire Semih Sawaris.
(Incidently, Sawaris’s plans are “long-term”…his 33-year old son Naguib is now stepping up to continue his father’s work…)
The Andermatt Swiss Alps company plans a new 1,800-bed resort in Sedrun, investing CHF170 million in 13 buildings, including hotels and residential units.
In 2023, the San Bernardino ski resort reopened after a decade-long closure, following investments totaling CHF 300 million.
Like our American cousins
Investors who want a “safe place” to drop their cash are focusing on creating mixed-use properties that offer luxury accommodations, retail spaces, and wellness facilities, aiming to attract a diverse clientele throughout the year.
They do so with North American resort models, such as condo-hotels and subscription services.
That is also the model being pursued in the Goms valley in Valais, where developer Jean-Claude Bregy from the project “Resort Obergoms” has high ambitions.
The project involves the construction of a holiday complex featuring 130 rental flats, restaurants and a wellness centre. The investment is estimated at CHF100 million ($110 million).
Who is Markus Ritter’s PR genius?
As the political battle (of one…) for the Center’s Federal Council seat heats up, one man is having a heyday - Lorenz Furrer, founder of PR agency furrerhug.
He is just one of a select few who take on the biggest mandates in business and politics.
🕵🏻♂️ A land of spies
Being neutral has many advantages…and attractions.
Sitting as it does in the heart of Europe, Switzerland is not just an island of peace and tranquility. It has also become a “lovely little spot” for spies.
Now the Swiss government has recently been intensifying its stance against foreign espionage, particularly from Russia and China.
In 2022, Switzerland issued approximately 240 entry bans due to espionage concerns, a significant rise from the previous average of 45 per year.
The most hair-raising example of spies on Swiss soil comes from Meiringen, where Chinese operatives apparently took over a local restaurant in order to have a vantage point on the airfield where Swiss F-35 jets would be stationed.
Tough or tit-for-tat?
The Swiss Parliament has now begun advocating for stricter measures against foreign spies, urging the government to expel them quickly and decisively.
Special concern comes from the more than 600 Russian “diplomats” expelled from European countries after the oubreak of the Ukraine war - who may have simply jumped the border to Switzerland.
Meanwhile, the Federal Council is taking its sweet time and insists on evaluating each case individually to avoid potential retaliatory actions against Swiss diplomats abroad.
Their reasoning argues that a tougher stance could lead to the expulsion of Swiss diplomats or refusal of accreditation for Swiss personnel, which could hinder Switzerland's diplomatic operations due to its relatively small foreign representations.
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Why not take a minute to share this edition of The Swiss Insider - with your network, your colleagues…or with someone who should “get inside.”
A Chart is Worth…
Even as more ski resorts are being built around the country - the growth rate of skiers coming into Switzerland remains volatile.
The Bonus
✂️ Not painful? - Federal Councillor Karin Keller-Sutter defended her new savings plan, including higher taxes on pension withdrawals, by saying that Switzerland has it too good. (Link)
⚖️ A crime of commodity - Global commodities giant Trafigura took a blow with its COO Max Wainright convicted and jailed for failures to prevent bribery. (Link)