To Swiss or not to(o) Swiss?
Keller-Sutter and JD Vance, Coop's results, AHV on the up
Dear Insider,
Words matter - as most people know.
Sometimes, however, they matter more, especially when uttered on the world stage and about a “big brother.”
Swiss President Karin Keller-Sutter found this out after her reaction to US Vice-Presiden JD Vance’s speech caused consternation among commentators.
But she could be pardoned for “noticing” good things about Switzerland in the eyes of others, even if she would not necessarily need to.
Switzerland itself is doing just fine, thank you…
Enjoy,
Ian
💡PS: Please do share what you like (or don’t) about The Swiss Insider.
Reply to this email and let me know! 🙏🏻
Let’s connect on Bluesky - the fast-growing X alternative… 👍🏻
💥Quick hits
Short and - mostly, but not always - sweet…
🍌 Leading with bananas
Swiss retailer, Coop, tooted its horn with solid numbers this past week.
The “other big orange” reported a jump in 2024 revenue and a net profit of 585 million Swiss francs.
The top-selling product? Bananas, according to CEO Philipp Wyss.
Despite the rise of online shopping, physical stores continue to dominate sales due to their convenience. Coop is also diversifying its produce sources by importing fruits and vegetables from Albania, aiming for sustainable practices and reduced water usage compared to traditional suppliers like Spain.
👍🏻 Solid growth
In 2024, Switzerland's economy grew by 0.8%, a modest increase compared to the 1.2% growth in 2023 and below the long-term average of 1.8% since 1981.
The fourth quarter saw a 0.4% rise in GDP from the previous quarter, surpassing expectations.
However, sluggish performance among major trading partners has tempered overall economic expansion.
These preliminary figures from the State Secretariat for Economic Affairs (Seco) are subject to revision, with official estimates expected on February 27.
⛪️ All in faith
How much religion is too much?
While faith is generally considered an “off-limits” topic in Swiss society, the upcoming Federal Council elections are putting a spotlight on the subject.
One man in particular is firing up the topic: Markus Ritter
The Center Party politician recently confided that his candidacy “had been agreed with God.”
It might not come as a surprise, given that the Center Party was, until recent years, known as CVP - the Christian Democratic People’s Party.
Speaking of faith - the breakdown of confession among the current Federal Council is as follows:
Viola Amherd, Ignazio Cassis, Karin Keller-Sutter: Catholic
Elisabeth Baume-Schneider, Albert Rösti, Guy Parmelin: Reformed
Beat Jans: None
📰 Person in the news - Karin Keller-Sutter
It was supposed to be nice - at least that is probably what Swiss President Karin Keller-Sutter thought…
Speaking to Le Temps after the speech of US Vice-President JD Vance at the Munich Security Conference, Keller-Sutter interpreted Vance's address as a plea for direct democracy.
"In a certain sense, [the speech] was very Swiss in its call to listen to the population."
But quite a few people don’t agree with her…
The left side of the Swiss political spectrum, and the Green Party in particular, labelled Vance's speech as anti-European and undermining the rule of law.
To them, Keller-Sutter’s assessment was a betrayal of Switzerland’s close relationship with the European Union - one of the country’s most important economic partners.
National Councillor Corina Gredig went so far as to call it "absurd" to say Vance's speech was liberal.
She contended that Vance's focus on internal threats downplayed the dangers posed by authoritarian regimes like Russia and China.
💉A bloody business
Not all of Switzerland’s reputation as a pharma powerhouse comes from research and development alone…
In Bern, one company is committed to hard-core production of critical medications…right here.
CSL Behring operates a high-tech facility that turns blood plasma into 20 critical medications—many used in emergency situations to stop life-threatening bleeding.
While plasma donations come from around the world, the magic happens in Bern, where the treatments are processed before being shipped to nearly 100 countries.
Despite the lure of lower-cost production elsewhere, CSL Behring stays firmly rooted in Switzerland, drawn by the country’s skilled workforce, top-tier infrastructure, and reputation for quality.
The company’s Swiss origins date back to 1949, when the Swiss Red Cross set up a central lab to meet national blood supply needs. In 2000, the lab was acquired by Australia’s CSL Behring, which has since grown into a $15 billion powerhouse. Recent investments in Bern—including a sleek new building and two cutting-edge production lines—reinforce the company’s long-term commitment to its Swiss base.
🪖5 Swiss defence companies to know…
Geopolitics is turning the world on its head. Continued war in Ukraine, US-Russian rapprochment…and more.
Which begs the question - how well is Switzerland prepared defence-wise? And who will make sure the Swiss armed forces are in good shape?
Here are 5 companies making tanks, guns, airplanes and more…
📈Social fund rollercoaster
Switzerland’s social security funds had a strong year in 2024.
Investments delivered a 7.33% return, pushing total assets to CHF 46.1 billion, up from CHF 40.6 billion.
Half of this growth came from solid investment gains.
The other half comes from the higher value-added tax introduced with the AHV 21 reform.
But…there is a catch:
Long-term stability is still a concern.
With the newly approved 13th AHV pension, financial pressure is rising and financing for the new “gift” is not yet secured.
Will the system hold up—or is another reform already on the horizon?
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A Chart is Worth…
With talk of trade wars circulating, it is worth noting that the United States remains Switzerland’s largest export destination market - as a single country. The EU as a whole accounts for 45% of Swiss exports.
The Bonus
🪑 Saving seats - A proposal has been tabled in the Swiss parliament to prevent Federal Councillors from resigning before their 4-year term concludes. The suggestion - from outgoing Center Party president Gerhard Pfister - is designed to prevent parties from tactically saving seats on the Federal Council that might be under fire after parliamentary elections. (Link)
🔁 Jordan crossover - Former Swiss National Bank President Thomas Jordan has a new job. Barely 6 months after resigning from the SNB, Jordan will join the board of directors at Zurich Insurance. (Link)
🛌 Swiss nighty-night - The Federal Bureau of Statistics announced that hotel stays - a proxy for the tourist industry - rose 2.6% to reach a new record high. Foreign tourists reached their highest level in 50 years. (Link)