Switzerland Today

Dear Swiss Abroad,

Regards from Bern! Davos is still in full swing, and as we reported in yesterday’s briefing, costing delegates and attendees a lot of money.

However, some of the expenses will be put back on the government and country from which the delegates came. Today it has been revealed that member of the Bernese cantonal government (who earn around CHF280,000 or $323,000) have expensed food items that cost less than CHF1. For example, one cantonal government employee expensed one banana for CHF0.20.

All this in today’s briefing. But first let’s take a look at the news.

In the news: will the Ukraine peace summit take place or won‘t it? Some conflicting reports in the news. Also there seems to be some trouble for several Swiss companies:

• Ukraine peace summit to take place in Geneva: Viola Amherd, who holds the rotating Swiss presidency this year, said that she and Zelensky were hoping for broad support and as many participants as possible. Russia is not welcome.
• Alliance hands in over 150,000 signatures against rental reforms: An alliance centred around the Tenants’ Association submitted around 76,000 signatures against each of the two proposals on Tuesday.
• Middle East conflict takes centre stage at the WEF on Wednesday: The aim of the visit is to exert “intense political pressure” for the release of the hostages and to make the heads of state and government aware of the consequences of the attack committed by Hamas on October 7, according to the Israeli presidential office.
• Swiss solar panel maker slumps as loss may force German plant shutdown: Swiss solar panel maker Meyer Burger Technology AG slumped as much as 47%, after saying it may shut one of Europe’s largest production sites and switch its focus to the US.
• Uncertainty surrounds planned Ukraine peace summit: “The contours are not yet clear,” Swiss Foreign Minister Ignazio Cassis told reporters at the World Economic Forum (WEF) annual meeting on Wednesday. “It all depends on how the influential countries want to be involved,” he said referring to Moscow’s participation.
• Swiss subsidiary cleared on employee safety, faces crimes against humanity charge: The French Court of Cassation has quashed the indictment against French cement manufacturer Lafarge, a subsidiary of Zug-based multinational, Holcim, for endangering its Syrian employees. However, the indictment for complicity in crimes against humanity remains in place.
• Fall in irregular migration to Switzerland in 2023: The number of irregular migrants who entered Switzerland decreased slightly last year. The Federal Office for Customs and Border Security reported a total of 50,185 cases – almost 2,000 or 3.6% fewer than in 2022.
• Britain expands probe into Swiss fragrance firms: Britain’s Competition and Markets Authority (CMA) has expanded its investigation into alleged anti-competitive practices in the perfume sector, targeting in particular the firms Givaudan and Firmenich.

WEF conflict outside the conference walls: the Davos parking predicament

In her opening speech at WEF in Davos, Viola Amherd made it clear she felt as if the “Davos elite” were out of touch with the local citizens of their respective countries. “Parts of the population distrust all of us. If the elite are perceived as out of touch while many families can no longer afford to live, it damages trust in the global economy,” Amherd told the crowd.

But the WEF conference and the accommodations around it, is notorious for being expensive and “out-of-touch”. Norwegian billionaire, Stein Erik Hagen, chairman of the food company Orkla, is not attending the 54^th annual conference due to how expensive it has gotten.

“When we experienced the big price increases last year due to increased raw material prices, we sat down at Orkla and went through all of our cost items. Also, the costs of the headquarters. We cut out everything we didn’t need to prioritise, one of those things being the trip to Davos. At a time like this, it’s not a priority for Orkla,” Hagen told a Norwegian news platform as reported by the HandelszeitungExternal link.

However, often overlooked at the conference, which brings in the biggest names in politics and business, are the workers on the ground. And their work is becoming increasingly difficult year after year.

This year, chauffeurs are facing a new challenge,reports the daily newspaper 20 MinutenExternal link. Hundreds of chauffeured cars are on duty during the conference. But this year, the parking situation has become significantly worse, and not due to an increase in cars. Instead, the issue arose with the restricted use of a Migros grocery store carpark which chauffeurs had used in previous years. “We were able to drop off our customers there or make arrangements with them to pick them up again. However, this year this is not possible,” says chauffer Ramez Karim to 20 MinutenExternal link.

The Migros parking lot can hold over 150 cars, but this year it has been rented out to one single chauffeur service, “Top Alliance”. Only individuals who want to shop in the Migros store are also able to park there. A Top Alliance employee is stationed at the entrance to ensure the rule is adhered to. But this check does not always go smoothly. “Our employees are constantly lied to and sometimes even attacked,” says Martin Schwegler, Chairman of the Board of Directors of Top Alliance.

The Migros staff and customers have also complained in past years of cars being kept running in the garage and litter being left behind by the chauffeurs. According to Andreas Bühler, Head of Corporate Communications at the Migros Cooperative in Eastern Switzerland, this measure was necessary as packing spaces were being occupied for hours by the chauffeured cars, making it difficult for customers who needed to do their shopping.

Driver Karim says this has made it impossible for him to take a proper break as there is nowhere near the congress centre he can now park at. “I would have to walk more than 20 minutes for a hot drink. It’s not worth it, so now I spend around ten hours in the car.”

Penny-pinching politics: Bernese cantonal government members‘ micro-expenses raise eyebrows“It’s petty and for me a question of personality,” says Kuno Schelder, Professor of Public Management at the University of St. Gallen to Swiss public television, SRFExternal link, about the especially small amounts that are billed by cantonal government employees.

The employees in question earn around CHF280,000 or $323,000. In addition to their yearly salary, some government employees are allotted a flat-rate expense allowance of CHF8,000 while others are allowed to submit individual receipts and receive their money back for expenses.

There has been criticism, however, not only for the lager sums but also the miniscule amounts sometimes expensed.

Some of the larger sums reported might be less surprising to those who are used to hearing about government official spending. For example, Health Minister Pierre Alain Schnegg of the Swiss People’s Party expensed a business lunch with members of his team for CHF627. What was had at this lunch, you ask? Among other things, a bottle of champagne and a bottle of merlot were on the receipt. Maybe this is the health minsters understanding of alcohol in moderation?

But he is not alone.

Economic director Christoph Ammann from the Social Democratic Party ordered 24 bottles of wine for “apéros and gifts” with a total value of CHF674.40. One might wonder what his personal budget might look like.

But Schelder is more annoyed at the government officials who expense down to the penny.

One expense was for a single organic multigrain bread roll for CHF0.95 or a banana for CHF0.20. “The processing [of the invoices] alone costs CHF25 to CHF30,” says Schedler.

When SRF first wanted to review the expense reports, Bern’s cantonal government wanted to keep the information confidential, citing the content as sensitive: “The documents may contain information that partially relates to personal secret areas,” it said. Before SRF could appeal the decision made by the cantonal government, it changed its mind and released the expense receipts and invoices from 2018 to 2021 which contained a total of 300 pages.