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Cross-border tensions shape today’s briefing: the ‘No to 10 million’ initiative divides Swiss farmers, while new EU rules and Gulf wealth flows put Switzerland’s finances in focus.

Switzerland Today

Dear Swiss Abroad,

Cross-border stories are on the agenda today: the ‘No to 10 million’ immigration initiative on June 14 is accentuating the “Röstigraben” – this time dividing the Swiss Farmers’ Union.

And money is flowing into and out of Switzerland: wealth from the Gulf is finding a home in “stable” Switzerland, while a new EU agreement on unemployment could see Switzerland digging deeper into its pockets.

While global crises continue, love remains at the core of our humanity. But what happens when grief ends a mother’s ability to maintain that humanity?

Sunny regards from Bern

While Swiss agriculture likes to present itself as staunchly Swiss and traditional, it relies on an estimated 35,000 EU workers.
While Swiss agriculture likes to present itself as staunchly Swiss and traditional, it relies on an estimated 35,000 EU workers. Keystone / Gian Ehrenzeller

Swiss farmers have a strong hand in policymaking. Rarely has their position been as strong as it is today. But with just under two months to go before the nationwide vote on the ‘No to 10 million’ immigration initiative on June 14, the usually united Swiss Farmers’ Union finds itself divided.

An estimated 35,000 workers from the EU are employed in Swiss agriculture, making the sector heavily dependent on foreign labour. For this reason, the president of the Swiss Farmers’ Union, Markus Ritter, does not support the initiative.

The cantonal farmers’ associations of Bern, Schaffhausen, St Gallen and Zurich back the proposal, while a supra-regional body representing western Switzerland opposes it. The split runs along the Swiss “Röstigraben” – the cultural divide between German- and French-speaking Switzerland.

For Martin Haab, a Swiss People’s Party member of the House of Representatives and president of the Zurich Farmers’ Association, more inhabitants mean less access to arable land: “Good agricultural land, the so-called crop rotation areas, is the basis of our production, and we don’t want to give that up,” he told Swiss public broadcaster SRF. For Haab, support for the initiative is clear.

Given these divisions, the Swiss Farmers’ Union is allowing members to vote as they like. For Ritter, this is a way to prevent the organisation from being torn apart by the issue.

Basel’s main train station (pictured here) sees many cross-border commuters during the week. Changes to EU–Swiss unemployment rules could bring additional financial pressure for cantons with large numbers of cross-border workers.
Basel’s main train station (pictured here) sees many cross-border commuters during the week. Changes to EU–Swiss unemployment rules could bring additional financial pressure for cantons with large numbers of cross-border workers. Keystone / Georgios Kefalas

After lengthy debates, the European Union (EU) has agreed on a reform of unemployment compensation for cross-border workers. In future, they would no longer be compensated by the unemployment fund in their country of residence but by the fund in the country where they last worked. A final decision could come as early as next week – and for Switzerland, this would be costly.

With more than 410,000 cross-border commuters expected by the end of 2025, Switzerland would face a significant financial burden. The State Secretariat for Economic Affairs (SECO) has not disclosed official estimates, but according to CH Media newspapers, the additional cost could range from CHF500 million to CHF1 billion ($636 million to $1.3 billion) per year.

The reform is not aimed specifically at Switzerland. EU countries with high numbers of cross-border workers would also be affected, particularly Luxembourg, where almost half the workforce comes from neighbouring countries. The Netherlands and Belgium would also face higher costs.

The reform would not automatically apply to Switzerland. Any changes would have to be negotiated within the Switzerland–EU Joint Committee, and Bern would need to give its approval. The Swiss government stresses that it retains room for manoeuvre, even if pressure to align with EU rules is likely to grow.

That pressure is also domestic: rising costs could influence both the debate on new agreements with the EU and the campaign around the ‘No to 10 million’ initiative.

Dubai has long been seen as a tax haven for wealthy individuals. Now, regional conflict is driving a wave of capital towards Switzerland.
Dubai has long been seen as a tax haven for wealthy individuals. Now, regional conflict is driving a wave of capital towards Switzerland. Keystone / EPA / ALI HAIDER

Boring, slow but stable. The stereotype of Switzerland’s political and economic system often holds true. And as the conflict in the Middle East continues, billions of dollars are said to begin flowing from the region into Switzerland.

While we have reported on Swiss entrepreneurs choosing to remain in the Gulf, particularly in Dubai, this appears to apply more their residency than to their money. As Swiss public broadcaster SRF notes, Switzerland scores points with its stability and tax framework.

Patrick Akiki, head of financial services at consulting firm PwC, told SRF that “several tens of billions” are already in transit or expected to be transferred soon.

Some experts believe Switzerland will remain a key destination for wealthy individuals over the long term. Others are more sceptical. Relocating wealth is relatively easy, says Christoph Schaltegger, director of the Institute for Swiss Economic Policy at the University of Lucerne.

This means that capital could leave Switzerland as quickly as it arrives. And with uncertainty over how much tax revenue will actually be generated, Switzerland could ultimately be left high and dry.

For the past year, Wendy Duffy has been counting down the remaining time on her phone. In just a few days, the moment will come. She’s already chosen what she will wear on her deathbed.
For the past year, Wendy Duffy has been counting down the remaining time on her phone. In just a few days, the moment will come. She’s already chosen what she will wear on her deathbed. Keystone / Georgios Kefalas

Many foreigners travel to Switzerland to end their lives with the assistance of an organisation. In Switzerland, assisted suicide is legal under certain conditions. But choosing this path without being terminally ill continues to shock many and raise ethical questions.

When I first read Franz Kafka’s The Judgment, one line stayed with me after the protagonist’s suicide: “At that moment an almost endless traffic rolled across the bridge…” My interpretation being, that, even in death and loss, life goes on for many – uninterrupted.

For 56-year-old Wendy Duffy, this is not the case. Her son, Marcus, choked to death in front of her four years ago. Since then, she has undergone years of therapy but says she has been unable to come to terms with his death.

“That’s when I died too, inside. I’m not the same person now as I was… I don’t care about anything anymore. I exist. I don’t live.”

After an unsuccessful suicide attempt that left her on a ventilator in a “vegetative state” for two weeks, Duffy applied to the assisted suicide organisation Pegasos and after months of evaluation received approval late last year.

Founded in 2019, Pegasos primarily serves foreigners. Its conditions are straightforward: applicants must be over 18, mentally competent and able to pay around CHF10,000 ($12,711). Unlike some other Swiss organisations, Pegasos does not require applicants to suffer from an incurable illness.

For the past year, Duffy has been counting down the remaining time on her phone. In just a few days, the moment will come. “I have to administer the medication myself; that’s what the law requires,” she explains. Her final request is for her ashes to be scattered alongside those of her son.  

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