The week in Switzerland
Dear Swiss Abroad,
One economic issue dominated the Swiss news this week: the US tariffs soap opera. On Friday afternoon a deal was agreed.
In addition, urban sperm seems to be stronger than rural sperm. What are the demographic consequences?
The Swiss government said on Friday afternoon that US tariffs on its exports would be reduced from 39% to 15% and thanked US President Donald Trump for a constructive engagement.
“Switzerland and the US have successfully found a solution: US tariffs will be reduced to 15%,” the Swiss government said in a post on X. This is the same tariff level as the European Union.
The Swiss authorities thanked Trump, adding that the recent meeting between Swiss Economics Minister Guy Parmelin and US Trade Representative Jamieson Greer had been “productive”.
Swiss companies are planning to make direct investments in the United States worth $200 billion (CHF160 billion) by 2028 as part of the deal, Parmelin said on Friday.
“Switzerland made no concessions in the negotiations that would call its sovereignty or neutrality into question, including regarding sanctions or investment controls,” he added at a press conference following the announced deal.
Additionally, Switzerland will reduce import duties on a range of US products, including all industrial products, fish and seafood and “non-sensitive” agricultural products, according to a declaration of intent.
In a US television interview with CNBC on Friday, Greer said that under the agreement, Switzerland will send a lot of manufacturing to United States and bring down its US trade surplus, adding that the pact also targets pharmaceuticals, gold smelting and railway equipment.
It’s not just exports that have been in the news in Switzerland this week, but imports too. The controversy surrounding the Federal Railways’ controversial purchase of rolling stock from Germany has reached fever pitch.
On November 7, the Federal Railways announced the purchase of 116 double-decker trains from the German company Siemens Mobility. It was a choice that provoked reactions, as Swiss company Stadler Rail was also in the running to win this CHF2.1 billion ($2.65 billion) contract, the largest ever signed by the Federal Railways. The two protagonists have been at pains to explain their positions over the past few days.
Stadler Rail boss Peter Spuhler expressed his disappointment, notably in the Sunday press. “The shock is really great for Stadler’s 6,000 employees, as well as for our more than 200 suppliers throughout Switzerland,” he said in an interview with the SonntagsZeitung. With a bid that was only slightly more expensive (0.6%, or CHF18 million), the Swiss company believes that it has been unfairly rejected and is considering appealing.
The criticism has prompted Federal Railways management to react. It said the procedure had been conducted rigorously, in accordance with the law on public contracts, and that the contract had been awarded to the German company because it had obtained a better score, particularly in terms of sustainability, energy efficiency and operating costs.
This affair is causing a stir in the political sphere. “How stupid do you have to be not to commission a model Swiss company like Stadler because of a minimal price difference?” tweeted Centre Party parliamentarian Gerhard Pfister. Other parliamentarians are calling for an inquiry into the case. On the trade union side, UNIA has described the Federal Railways decision as “incomprehensible” and is calling for greater transparency in the awarding of contracts.
Faced with an increasingly tense security situation in Europe, the Swiss army wants to maintain its strength. To achieve this, it is counting on the contribution of women. On Wednesday, the government presented a new idea for increasing the number of women in the army.
The government wants to introduce a compulsory information day for women, so that they can get a solid idea of the opportunities offered in the army and civil protection. At present, this information day is compulsory for men, but optional for women. The government has sent its draft for consultation.
There are currently 2,500 women in the armed forces, representing around 2.3% of the total. Around 1,200 women take part in the information day on a voluntary basis. “But all too often they have to justify themselves when they want information,” Defence Minister Martin Pfister told the media.
This idea is not in itself surprising, given that the authorities have wanted to increase the number of women in the army for several years. What is more surprising is the timing: on November 30 the Swiss are due to vote on a popular initiative calling for compulsory military service for all. Questioned at the press conference, Pfister said this was not a strategy to fight the initiative.
What is certain, however, is that the Swiss army should not rely too much on natural population growth to fill its ranks. Two pieces of information released this week show that the fertility rate among the Swiss is falling.
A study by the Federal Statistical Office (FSO) shows that in 2024 the average number of children per woman was 1.29, the lowest level ever recorded. The desire to have a child is also declining. The proportion of 20- to 29-year-olds who do not want a child has risen from 6% in 2013 to 17% in 2023. Among 30- to 39-year-olds, this rate has risen from 9% to 16% over the same period.
The FSO points out that there are many possible explanations for this fall in fertility. But one of them may be the quality of young men’s sperm. This is a cause for concern, according to analyses carried out on samples taken from army recruits.
It has been known since 2019 that around one in six Swiss men has so few sperm that a natural pregnancy could prove difficult. But the latest study, published in September in the specialist journal Human Reproduction, shows for the first time regional differences and a possible link between sperm quality and agriculture. The research team from the University of Geneva and the Swiss Federal Institute of Technology Lausanne (EPFL) believe that chemical influences from agriculture, such as pesticides, could play a role.
The week ahead
On Saturday Alain Berset, former government minister and current Secretary General of the Council of Europe, will be back in the news in Switzerland when he receives an honorary doctorate from the University of Fribourg.
After raclette a few days ago, it’s now fondue’s turn to be in the spotlight at the Fondue World Championship, which takes place this weekend in Tartegnin, canton Vaud.
On Monday we will find out more about the future of tourism in Switzerland at a press conference organised by Switzerland Tourism in Zurich.
The CIFI (Centre for Real Estate Information and Training) will be presenting the state of the Swiss real estate market on Tuesday in Zurich.
On the cultural front, there will be a press conference in Neuchâtel on Thursday to mark the end of the 25th anniversary of the Centre Dürrenmatt.
Edited by Samuel Jaberg. Translated from French by DeepL/ts
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