Switzerland Today
Dear Swiss Abroad,
Autumn officially began today, and quite a few people are hoping to leave this year’s scorching, dry summer behind them – perhaps by enjoying a cup of tea, cosy on the sofa, while outside the rain brings relief to fields and rivers.
According to MeteoSwiss, they will have to be patient.
This year’s record drought could continue into the coming weeks, causing particular concern for agriculture and fisheries.
If MeteoSwiss’s forecasts prove accurate, the period between April and September will have been the driest on record since measurements began in 1864. Speaking to Swiss public broadcaster RTS, a farmer summed up the fears of his sector: “If there’s no water, [the autumn crops] won’t germinate,” with the risk of a reduced harvest in 2027. This summer’s weather conditions have caused losses to the agricultural sector estimated by the Swiss Farmers’ Union at CHF522 million ($635 million).
A fisherman recalls how, throughout the summer, intensive rescue operations were needed to move fish to areas with more water and limit fish mortality. If the water shortage persists, there is a risk that fishing in small rivers will no longer be possible, he laments. According to the Swiss Fishing Federation, it will take several years for the affected ecosystems to recover.
Adrian Michel of MeteoSwiss emphasises that “there has been no rain for three months. If rainfall over the next three months is normal, the deficit would not worsen, but to make up for it, we would need three months with twice the average amount of rainfall”.
The Swiss national football team will have to do without its captain for the next four Nations League matches. The decision was reached by mutual agreement between the Swiss Football Association and Granit Xhaka himself, who admitted on Monday that he had bought a fake Covid certificate in 2022.
The story was revealed by Blick on Friday, and today Xhaka publicly confirmed the facts, describing his behaviour as “a mistake” and apologising. “I felt a deep mistrust of the vaccine and was gripped by fear and uncertainty,” he explained on Instagram. In this “emotional state of great distress”, he obtained a fake vaccination certificate “instead of clarifying my doubts through the proper channels”.
From a legal perspective, he faces a hefty fine. As for his future with the national team, discussions have only just begun and only time will tell whether he will retain his place.
Xhaka is not the only high-profile figure in Swiss sport to have faced consequences over a forged Covid certificate. In a similar case, national ice hockey team coach Patrick Fischer lost his job and was banned for four years by the International Federation.
If the government’s proposal, currently under consideration in parliament, were to be approved, “it would be the worst possible outcome”. In an interview with the Neue Zürcher Zeitung (NZZ), UBS CEO Sergio Ermotti did not mince his words ahead of this week’s parliamentary debate on capital requirements for systemically important banks, aimed at preventing a crisis such as the one that hit Credit Suisse.
The government wants UBS to ensure that its foreign subsidiaries are backed by 100% equity capital. If this were to happen, Ermotti estimates the cost at $3 billion (CHF2.5 billion) a year for the bank. “It is a mistake to believe that such additional costs are borne solely by shareholders. Customers and staff will also be affected,” he says, emphasising that his bank would have to do everything possible to achieve returns comparable to those of its international competitors, who, the Ticino-born executive adds, “are delighted with the situation we find ourselves in”.
For Ermotti, the proposal drawn up by the Senate’s Economic Affairs and Taxation Committee – under which 50% of UBS’s foreign subsidiaries would be backed by Common Equity Tier 1 (CET1) capital and 50% by Additional Tier 1 (AT1) bonds – would be more acceptable. “We can live with a black eye, but two black eyes and a broken nose are too much,” he says.
In the interview, Ermotti also criticises the authorities, accusing them of failing to learn the right lessons from the collapse of Credit Suisse. He highlights, for example, the extensive concessions granted to the former competitor by the Swiss Financial Market Supervisory Authority (FINMA). The Swiss National Bank (SNB) also ignored the problems for years, he says.
Swiss development cooperation will withdraw from 13 countries from 2029, while more funds will be allocated to humanitarian aid.
The Swiss foreign ministry confirmed yesterday that development aid would be limited to 21 priority countries, down from the current 34. It intends to focus its programmes primarily on low-income countries.
According to the SonntagsZeitung, the countries set to lose aid include Nepal, Armenia, Georgia, Zimbabwe, Tanzania and Tunisia. Support for multilateral organisations will also be reduced, focusing on 18 organisations instead of the current 24.
This reorientation, aimed at implementing a decision taken by the government in June, also involves transferring CHF330 million ($402 million) a year from development cooperation to humanitarian aid. The government justifies the move on the grounds of the changing geopolitical situation, increasing humanitarian needs and the Swiss government’s limited financial leeway.
The proposal has sparked fierce criticism in parliament from members of the left and The Centre Party. Such a sudden withdrawal “damages Switzerland’s reputation” in countries where it has been active for years, Social Democratic Party parliamentarian Fabian Molina tells the Tages-Anzeiger, adding that parliament’s exclusion from the strategy makes the process “Trump-like”. Elisabeth Schneider-Schneiter of The Centre Party echoes this view, arguing that the geographical and financial realignment is “too important for the government to decide on its own”.
Translated from Italian, sub-edited by Alexandra MV Andrist/ts
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