Switzerland Today

Dear Swiss Abroad,

After a massive slump in share prices: Credit Suisse receives up to CHF50 billion from the Swiss National Bank. Will this be enough to restore confidence in the big bank?

Kind regards from Bern.

This content was published on March 16, 2023 - 17:00

4 minutes

Where does Switzerland stand in the world? And where is it heading? I focus on current and possible future developments. After completing my studies (history, law and European studies), I worked for a time at the Swiss embassy in Athens. I have journalistic experience at home and abroad, at the local and national levels, as a freelancer and as a staff journalist. Today, it's with an international focus.

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Heute in der Schweiz Original

Credit Suisse in trouble again – National Bank and Federal Council try to calm things down.

When it comes to banks, things move fast in Switzerland: after CS shares plummeted to an all-time low on Wednesday (CHF1.55), the central bank stepped in and lent the bank CHF50 billion to help it get back on solid footing. Now, the Federal Council has scheduled a meeting at short notice.

It’s a chain of unfortunate events, combined with a weak bank. Over the weekend, there were jitters after two US banks collapsed. When a majority shareholder said this week they wouldn’t inject more money into Credit Suisse, there was a sudden loss of confidence.

The SNB’s intervention seems to have worked for now. Nevertheless, parallels have been made with 2008, when UBS had to be rescued, also with the help of the Swiss government. The situation is not that serious at the moment. But the nervousness in politics shows how important the big bank is for the Swiss financial centre.

Read our explainer here.
Also check out the report from BlickExternal link.

Flaggen Schweiz und EU — © Keystone / Peter Schneider

Switzerland-EU: The next round in the negotiations.

EU Commissioner Maroš Šefčovič, who is responsible for relations with Switzerland, has been visiting the Alpine nation this week. At the University of Fribourg, he explained the kind of agreement he wants to reach with Switzerland and then met with Foreign Minister Ignazio Cassis.

If Šefčovič has his way, the negotiations should be concluded in the summer of 2024 – shortly before the end of the current commission’s term. He sees a “window of opportunity” after the federal elections in the autumn to finally move things forward.

Will it work? One thing is certain: there is movement in the negotiations on Switzerland-EU relations. In addition, a lot is happening in another arena: The UK will likely regain access to the Horizon research project soon, which is also important for Switzerland.

SRF News reportExternal link on the visit (in German)
Also the Tages-AnzeigerwroteExternal link about it (in German)
Read about the EU-UK-Deal hereExternal link in SRF News. (in German)

Geschlossene Beiz — Keystone / Urs Flueeler

Exactly three years ago today, the first pandemic lockdown was imposed.

It was March 16, 2020, when the Swiss government declared an “extraordinary situation” and imposed the first lockdown. A drastic measure that had never existed in this form before and had a major and long-lasting impact on society.

It was at this time that Daniel Koch came to prominence, as the man in charge at the Federal Office of Public Health – and widely referred to as Mister Corona. In this interview, he looks back on the initial phase of the pandemic, which catapulted him into the spotlight and also brought him much criticism.

In retrospect, closing schools and sealing off senior homes were probably not the right decisions, said Koch. He also doubts that the border closures were effective. But even his critics can agree with his assessment at that time: “Everyone was a bit overwhelmed at the beginning.”

Read here (in German with paywall) the interviewExternal link in Tages-Anzeiger.
Here’s some background on the current Covid-19 situation

Stadler Rail in Hungary: No fear of contact.

Hungary is Stadler Rail’s most important market in Eastern Europe. It is therefore only natural to place sufficient advertising in the country. The problem, however, is that under Victor Orban, the media landscape is coming under increasing pressure.

Research by Tamedia now shows that no other foreign company has placed as much advertising in media that are loyal to the government as Stadler Rail. This is intriguing and is causing criticism in Hungary itself because this would mean support for the Orban system.

The company is well represented in the former Eastern bloc, including production in dictatorial Belarus. It likes to pretend it is apolitical and insists on keeping a proper distance. However, the research raises serious questions in this regard.