Stopping (Is Almost) Over
Peculiar Swiss politicians and the people they serve
Dear Insider,
Politicians can be a funny group of people.
Often derided for their decisions - or lack of them - they sometimes become heroes overnight….for the most peculiar reasons.
Such was the case for Switzerland as Swiss Federal Councillor Simonetta Sommaruga played ‘autostop’ (i.e.hitchhiking) when she recently picked up two ladies along the road in her Cooper Mini and gave them a ride.
No personal inspection, no security forbidding personal interaction…
The move might seem strange in some countries - and what’s more - downright forbidden. But such is the tradition of approachability and openness in Switzerland - even now after 2+ years of the covid pandemic.
Speaking of corona, Swiss Health Minister Alain Berset announced this past week an end to mandatory home-office for all employed persons. This despite continued record numbers of infected persons. The amount of hospitalisations, however, comes to just roughly half of those who fell seriously ill in the fall and winter of last year.
If the country opens up completely once again - there will (probably) be no stopping the Swiss economy….even with a full 1.1% inflation rate for the year.
Flat-lining
Taxes are always a sensitive topic and Switzerland - a country known for its “flexibility” on the subject - is no exception. That’s why the US-led push for a flat, global 15% corporate tax is a cause for some concern, according to economiesuisse chief Christoph Mäder.
The new OECD rules are, in Mäder’s opinion clearly aimed at hurting the Swiss economy to the benefit of others.
For some Swiss cantons, corporate taxes will only rise by 1-3%. For others, such as Zug, it will be significantly more.
Flexibility will be key in order to keep international firms in the country, meaning some other taxes, such as stamp duty may need to be eliminated.
Ready to roar
Swiss winter athletes are ready to compete for Olympic gold in Peking. Among them is downhill skiing star Marco Odermatt (pictured above), who has emblazoned a lion on his racing helmet.
Despite being one of Switzerland’s most popular sports, only around 35% of the Swiss are regular skiers.
According to a governmental study from 2017, sport contributes about 1,7% to the total GDP of Switzerland.
The industry occupies more than 97’000 full-time employees.
Time to go meta
The World Economic Forum is known for attracting the top leaders of the world to Davos every January. But the future of WEF may look quite different.
The WEF’s governing association recently registered a total of 13 names with the word “meta” - examples include: metadavos, metaforum.
Founder Klaus Schwab has long held a strong line on the need for an in-person meeting to keep ‘the spirit of WEF’ alive.
Schwab confirmed that after two delays, the Forum’s Annual Meeting would take place in Davos in person in the summer of 2022. He also published his second book in as many years - The Great Narrative - in collaboration with French economist Thierry Malleret.
(Still) trending upwards
Notoriously expensive Swiss housing prices continue to rise. The combination of strong demand for real estate as an investment and a steadily growing population put more and more pressure on the market.
Recent analysis shows that for a household with a combined income of CHF 200’000, it is practically impossible to find an affordable house or apartment in Canton Zürich.
Despite slowly rising interest rates, the limited supply of real estate for sale seems set to keep prices high, based on current demand.
A majority of real estate properties owned by single persons or families are financed with long-term mortgages - and relatively low interest rates.