Buying up time
Unloved F-35s, a matter of story, SECO's pricey lobbyists
Dear Insider,
If money could solve every problem, the world would be extremely boring.
Or very poor.
In both cases, Switzerland would one of the first places to notice the effects.
With plenty of wealth to go around and only a shortlist of problems to solve, surely the effects of “fix it with money” would show up first here in the Alps.
Reality is - of course - a bit different.
The Swiss State Secretariat for Economic Affairs (SECO) is about to find out if a half a million francs can help solve the one problem the whole world seems to have: Donald Trump.
Meanwhile, Federal Councillor Beat Jans can’t quite avoid a problem that someone else already tried to make go away.
Too bad…
Enjoy,
Ian
PS - I help people understand Switzerland with more detailed insights on banks, private business clubs, asset managers, startup CEOs and young Swiss millionaires - would you like to read more articles like these?
Let me know!
💥Quick hits
News bits and bites…short and (sometimes) sweet
Jet set under pressure
It’s getting “noisy” around Swiss defence capabilities - in more ways than one.
The planned deployment of F-35 fighter jets at Meiringen Air Base by 2030 has sparked local concerns over increased noise pollution.
(A terrible problem to be sure…)
Due to the base's short runway and surrounding mountainous terrain, 80% of current fighter jet takeoffs require afterburners, significantly amplifying noise levels.
The Interest Group for Less Aircraft Noise (IGF) argues that the F-35 should be stationed at bases like Payerne, where afterburners are less necessary.
However, supporters, including the Pro Flugplatz association, emphasize the economic benefits of the air base, noting job creation and local spending.
Estimates put the boost to the local economy in the low single-digit millions…
Glamour in the city
Zurich can be proud…kind of.
According to a new ranking by German cosmetics brand Catrice, Switzerland’s largest city has been named the second most glamorous city in Europe, surpassing fashion capitals like Paris and Milan.
(London took the top spot.)
The ranking assessed factors such as the number of luxury boutiques, beauty salons, spas, and fashion and beauty events.
Zurich stood out with 158 high-end shopping options per 100,000 residents, a notable concentration of beauty services, and approximately 280 annual fashion and beauty events, including Mode Suisse and the Zurich Film Festival.
The city also demonstrated a strong interest in wellness, evidenced by 13,000 annual Google searches for yoga and Pilates studios.
The results will make Zurich’s left-wing politicians secretly happy…
📰 Person in the news
“Narrative is everything” - as they say…
And Oliver Washington should know it better than most.
The communications chief for Swiss Federal Councillor Beat Jans found himself in the middle of a PR storm this week.
The reason?
A Zurich high school student wrote her Matura thesis on Jans' communication style, including a documentary film. The findings were (apparently) none too flattering…
The Federal Department of Justice and Police (FDJP) heavily censored both the thesis and film, leaving only the table of contents and acknowledgments visible.
The student had initially collaborated with Washington. But the PR man later withdrew his consent and blocked the publication, citing breaches of agreed terms.
He maintained that no one else from the FDJP interfered.
Nevertheless, the media commentary around the story was enough to generate a decidedly negative picture of the left-wing national politician.
Normally, of course, SP and Green politicians portray themselves as bastions of free speech.
The student described the experience as frustrating but educational, noting in her acknowledgments that Washington had "led her to the center of power" and taught her the lesson: "Never feel too comfortable!"
Will the public now look differently at Jans…or at communications professionals?
Inside AI access
Switzerland prepared to play hardball in Washington.
With new U.S. export controls on AI chips kicking in on May 15, 2025, only nations on America’s “trusted allies” list will retain full access. Switzerland isn’t on that list.
The response?
The Swiss State Secretariat for Economic Affairs (SECO) has engaged the prominent U.S. law firm Akin Gump Strauss Hauer & Feld for lobbying services in Washington, D.C.
The CHF 500,000 lobbying deal will bring on a major DC powerhouse — the same firm repping major global players in front of Congress and U.S. regulators.
Their mission:
Ensure continued access to cutting-edge AI chips
Establish political relationships in the Trump administration and U.S. Congress
Defend Swiss trade interests in an increasingly protectionist environment
While the contract officially targets AI semiconductors, trade experts see the door open to tackling broader tariff and market access issues.
SECO describes the engagement as a “targeted mandate.”
But the message is clear: Bern is willing to spend to protect Swiss innovation and global competitiveness.
The banking backbone
Without them, the Swiss banking sector would truly be a “luxury-only” business…
The Swiss cantonal bank association this week presented 2024 numbers for its 24 member institutions.
And they are duly impressive…if not outstanding…
Net interest income fell 3.4% to CHF 7.4 billion, reflecting margin pressure from rate normalization.
Commission and service income surged 8.5%, hitting nearly CHF 3 billion — now accounting for 25% of total revenue.
Despite a 2.8% drop in net profit to CHF 4.2 billion (just below 2023’s record), the banks expanded their balance sheets by 4.1% to CHF 812.2 billion.
Mortgage lending rose 4.9% to CHF 502.6 billion, showing robust demand in housing finance even amid tighter conditions.
Capital strength remains a standout: the average total capital ratio hit 17.9%, comfortably exceeding regulatory thresholds.
And in true Swiss fashion, CHF 2.1 billion — half the profits — flowed back to cantons and municipalities.
Is all well in Swiss local banking?
Not necessarily…like their big (global) brother, the cantonal banks are worried about increased regulation.
They worry that the government’s announced plans to require UBS to hold more regulatory capital will eventually trickle down to their level as well.
And with good reason…
A Chart is Worth…
AI may be important to the future of Switzerland’s high-tech industry - but you might not know it based on current adoption. (Statistics compiled by ETH Zürich in 2024)
The Bonus
🇺🇸 Not to the USA, thanks - Travel agents in Switzerland have noted a massive drop in plans for trips to America - by more than 1/3 in some cases. (Link)
↘️ Minus anyone? - Swiss pension funds can rejoice about 2024 results: average returns of 8%. The outlook for 2025 and beyond is much murkier… (Link)
🥩 Cut the beef - Butchers in Switzerland are facing a special problem: a lack of new trainees to carry on the traditional industry. (Link)