Eurosceptic Swiss count their blessings as Swiss economy sails the storms

[-:Undertaker:-]

http://www.bbc.co.uk/news/world-europe-10886215

Switzerland is the small exception in a united - and ever bigger - Europe.

The Swiss voted way back in 1992 not to join the European Economic Area, a first step towards joining the European Union. The majority against was tiny, however, just 50.3% against the EEA and 49.7 % in favour. Ever since, Swiss public opinion has been divided over the question of how close to get to Brussels. Now though, as many European countries announce major cutbacks, Switzerland's continued prosperity is making many Swiss believe their "no" to Europe was the right decision.

"We have got high wages by European standards, and low interest rates and mortgages," explains Stefan Meierhans of Switzerland's price monitoring office. "Also a VAT rate of 7.6% when the EU minimum is 15%," he adds. All reasons for the Swiss to count their good fortune, but now there is another one too.

Hanging on to the Swiss franc has made the currency a safe haven over the past 12 months as the euro weakened. Imports to Switzerland from EU countries are falling in price and Swiss consumers are benefiting. What's more, long-standing laws in Switzerland that prevent both the federal government and the cantons from running up big debts mean that, unlike in many of Switzerland's neighbours, there are no huge public deficits to cope with and therefore no big austerity measures. "Over the last 12 months the cost of living index has gone down by half-a-per-cent," says Mr Meierhans. "So that means life has become cheaper in Switzerland."

Perhaps the biggest effect of the crisis in the eurozone has been to reinforce Swiss doubts about the European Union. "Attitudes are worse than ever," says political scientist Professor Dieter Freiburghaus. "Now only 30% of Swiss people would be ready to adhere to the European Union. It used to be much higher, 50%, now it's very low and it's quite understandable. The euro is of no interest to us, and the whole European project doesn't seem to be functioning very well." Professor Freiburghaus believes the spectre of EU member Greece on the verge of bankruptcy has bolstered a long and deeply held Swiss belief that going it alone is often the wisest policy. "There is a cultural gap between Brussels and Switzerland," he explains. "Swiss people like things to be small, Brussels likes things to be big. Swiss people like things to be different from canton to canton, Brussels likes everything to be the same.

"And Swiss people don't feel alone," he continues. "Or I might say they feel better when they are alone. It's a very long tradition, and to change that, to say well we should join, we should be part of it, we should have friends everywhere, that is not our attitude." In fact Switzerland's position outside the EU is not as clear cut as it might seem. Gaining access to EU markets has required Switzerland to adopt large sections of EU policy in all sorts of areas from transport, to agriculture, to the free movement of labour.

Nevertheless Stefan Meierhans believes Switzerland may now have got as close as it is ever likely to get to Brussels. "Maybe we fool ourselves a bit that we are completely independent," he admits. "But still, looking at the most recent developments in the European Union, I think many people here now believe the risks and costs are much higher when you are in the EU, than when you have this emergency brake you can pull on your own."

I have great respect for the Swiss, what a country and what a people. The Swiss value their freedom and sovereignty and their politicians are bound by democracy so that the politicians serve the people rather than the people serving the politicians as is the case in Great Britain and the European Union in general. The Swiss have a referendum lock meaning the people can propose changes in law and it is law-abiding whether the politicians like it or not. It is a fantastic and independent country which has its priorities in order and is something that we as a country should look towards and strive towards.

The irony is that the thing holding back the already well-to-do Swiss economy is the European Union itself.

Anyone who is Swiss should be very proud.

Thoughts?

[alexxxxx]

switzerland is a lovely place but you have to remember that it is a very different country to the UK. traditionally it is much more neutral than any other country for a start in terms of defence and economically. It has a much smaller population than the UK, its workforce is much better trained and qualified allowing for a much more efficient economy. The cost of living is incredibly high - a lot of people cross the border to buy groceries - and home ownership levels are very low in comparison to other places due to very high land prices. immigration is also incredibly high at well over 20% of the population.

and yeah one interesting part of that article is that the swiss have to adhere to a lot of EU policy even though they are not in it - due to being integrated (almost) into the EU's single market. if we wanted to leave the EU, we'd have to do the same.

[GommeInc]

and yeah one interesting part of that article is that the swiss have to adhere to a lot of EU policy even though they are not in it - due to being integrated (almost) into the EU's single market. if we wanted to leave the EU, we'd have to do the same.

It looks like the policies they have to adopt are the basic ones that have existed longer than the European Union, back when it was the ECC and that's all that was required - open trade and freeedom to roam around Europe. Back when properity was alive and well throughout Europe, with only the minority of countries in trouble. If we left the EU, it would be perfect as we'd have more money to spend and more control over what we want to do and what we have always done. The Swiss have more control over their bank balances as the article says, with lower than the minimum EU-controlled VAT which makes them attractive, while countries in the EU are being held back by this unattractive VAT level.