How Swiss politicans do defence
Viola Amherd takes the heat and Zug's money man hits back
Dear Insider,
The start of a new year can be a time of new beginnings.
Or…
It can be a time to try old tricsk…anew.
Political battles often demonstrate the temptation to use the latter tactic. Where reconciliation may have been a nice holiday theme, the days following seem a perfect opportunity to mount attacks on the opposition.
This give us an opportunity - to see (once again) how effective Swiss politicians are at playing defence when under attack…
Enjoy,
Ian
💡PS: Feel free to connect with me on LinkedIn and on X. Or simply reply to this email and share your feedback. Thank you!
Person(s) in the News
Being “in the news” often means being “the center” of attention - after being out of the limelight before.
Currently, however, two people already at the “center” of the political spectrum find themselves “in the middle of the debate.”
Gerhard Pfister
Gerhard Pfister, President of Switzerland's Centre Party (Die Mitte), has announced he will step down in summer 2025 after nine years in the role.
Potential successors include Berne National Councilor Reto Nause, who has expressed interest, and Valais National Councilor Philipp Matthias Bregy, who has not ruled out a candidacy.
Other possible candidates are Basel-Landschaft National Councilor Elisabeth Schneider-Schneiter and Uri National Councilor Simon Stadler. The new president is expected to be elected at the party's delegate assembly in Biel at the end of June 2025.
Viola Amherd
Meanwhile, the “top” representative of Die Mitte, Federal Councillor Viola Amherd finds herself under fire to start the year.
At its annual leadership gathering in Bad-Horn, the loud voices from Swiss People's Party (SVP) called for the resignation of centrist defence and sport minister.
They accuse her of weakening Switzerland's military readiness by prioritizing gender issues over defence needs.
They also argue that mismanagement under Amherd has depleted military resources and moved Switzerland closer to NATO, compromising the country's neutrality.
Army Chief Thomas Süssli reportedly expressed concerns about the army's ability to defend the nation, despite having received an additional 4 billion CHF from the Swiss parliament in late summer 2024.
Speculation has arisen already that Amherd, who served as Swiss president in 2024, may be preparing to step back - potentially after the European Women’s Football Championships are held in Switzerland this summer.
If Amherd does go, SVP will claim the credit for her departure…whether justified or not.
And who might be waiting in the wings - if not Gerhard Pfister?
Where does Swiss business leaders hang out?
Closed doors and face-to-face deals - we all know how “big business” gets done. Maybe… But if it does - then chances are it happens here in Switzerland.
Here are 5 top business clubs to know - even if you can’t get in.
Heinz Tännler, Finance Director of the Canton of Zug
⛽️ ‘Getting it’ for gas
Besides wealth management, there is another industry that makes Switzerland the center of the world - and highlights its complicated relations with Russia and Russians.
Commodities trading…
And one place in particular is a hot spot for handling billions of Swiss francs in oil, gas and other natural resources - the Canton of Zug.
As the war in Ukraine drags on, more voices are criticising Zug with allegations that it indirectly supports Russia's war efforts through hosting approximately 400 Russian firms, including Novatek, a company involved in selling Russian LNG gas in Europe.
Heinz Tännler, the canton’s Finance Director, has dismissed the hard words…
Tännler, an SVP politician, emphasizes that these companies operate within legal frameworks and are not subject to sanctions, asserting that Zug adheres strictly to the rule of law without moral bias.
He dishes out his own criticism of the European Union's selective enforcement of sanctions, suggesting that economic interests influence their application.
He also maintains that without federal directives to sanction specific entities, Zug has no grounds to act against these firms.
The Inside Look:
💡 Inertia is a highly effective defensive shield and using “legal frameworks” as a reason not to take action against potentially problematic firms is not new in Switzerland. It just so happens that laws can be written to make exactly such situations possible.
After all - why would some large international enterprises move to Switzerland in the first place?
💡An SVP finance director is uniquely appropriate to “defend” the right of his canton to do business as it sees fit. And to find every possible way to justify doing so…
🔁 Turning their backs
Small businesses rule the economy - not only in Switzerland, where they account for more than two-thirds of all jobs.
But there is a problem…especially for companies in the construction industry.
Succsssion…
Switzerland's building sector is confronting significant challenges, with over 100,000 companies lacking clear plans for leadership transition.
This issue is particularly acute among small enterprises, where many owners are approaching retirement without identified successors.
The result? Companies have to be wound up and employees made redundant.
A generational shift, coupled with younger individuals' differing career preferences, exacerbates the shortage of successors.
The Inside Look:
💡 The entrepreneurial spirit of small (family) firms - both in Switzerland and globally is facing a crisis. When a firm is big enough - and sexy enough - like LVMH, it may not be difficult to convince the next generation to stay on. But few young people are keen on hard construction work - if they don’t have to.
💡Fall birthrates also signal a looming challenge for firms that have relied on generational support. Will “startups” replace the family business as the preferred model going forward?
A chart (or two) is worth…
While unemployment is projected to increase slightly in Switzerland this coming year, inflation looks set to drop off the cliff…
It is also worth taking a look at where Switzerland spends its money. Statistics are for the federal government.
🔁 Make sure to share this post with a friend or colleague - they will thank you!
The Bonus
🖥 Under attack - The Swiss federal government was (again) the target of a DDOS attack, likely from pro-Russian hackers, this past week. Websites, outlook and IT services were affected - data was not compromised. (Link)
🫅🏼Golden boys and girls - With a new CEO (Stephan Bollinger) taking the reins at Julius Baer, the spotlight falls on possible changes in the bank’s executive committee of 15 persons - with an average salary of 1.9 million CHF. (Link)
💶 Ready to replace - A new people’s initiative has been launched, asking for a change in the national constitution to allow the Swiss National Bank to hold reserves in Bitcoin, instead of only US dollar and Euro. (Link)