Switzerland Today
Dear Swiss Abroad,
At 8:20pm this evening, the moment will finally arrive: the most significant partial solar eclipse since 1999 will be visible across Switzerland, weather permitting. Demand for special eclipse glasses has been so high that long queues have formed outside specialist shops in recent days.
Meanwhile, the Swiss federal government is back from its summer break. Today, Finance Minister Karin Keller-Sutter unveiled plans to tighten regulations for systemically important banks. You'll find the details below.
Warm regards from Bern,
The Swiss federal government plans to strengthen the stability of the financial sector in the wake of the collapse of Credit Suisse. To reduce future risks to the state and taxpayers, regulations for systemically important banks are to be tightened, while the powers of the Swiss Financial Market Supervisory Authority (FINMA) will be significantly expanded.
A key part of the reform includes stricter requirements for corporate governance and banks’ crisis preparedness. The proposals also aim to improve access to emergency liquidity from the Swiss National Bank and tighten capital requirements. Federal Councillor Karin Keller-Sutter outlined the plans at a press conference today.
The proposed legislative changes are now open for consultation and are intended to close gaps identified in Switzerland’s existing “too-big-to-fail” framework. The reforms are a direct response to the findings of the parliamentary inquiry into the collapse of Credit Suisse.
Speaking to reporters, Keller-Sutter acknowledged that no regulatory framework can completely eliminate risk. “We will never be able to rule out all risks, but we must reduce them as far as possible. After all, in this sector, it is ultimately the state that may have to foot the bill,” the finance minister said.
Do you remember the solar eclipse of 1999? Tonight, Europe will once again have the chance to witness one. If you miss it, you’ll have to wait another 55 years to see a total solar eclipse from Switzerland.
Up to 93% of the Sun will be obscured this evening. From 7:25pm, daylight will gradually fade across Switzerland. The eclipse will reach its peak between 8:17pm and 8:20pm, before the Sun sets around 20 minutes later. Those in Iceland and parts of Spain will experience a total solar eclipse.
Because looking directly at the Sun can permanently damage your eyesight, special eclipse glasses are essential. Demand has been so high that long queues have formed outside specialist retailers over the past few days.
And the eclipse won’t be the only spectacle in the sky tonight. The Perseid meteor shower is also expected to peak. “The cosmic timing could hardly be better,” Swiss public broadcaster SRF wrote.
The Swiss Army needs more money, but the country’s debt brake is standing in the way. A political dispute has erupted in Bern over a multi-billion-franc funding proposal, while the Swiss federal government is considering a temporary increase in VAT.
According to the Neue Zürcher Zeitung (NZZ), the centre-right Radical-Liberal Party wants to make a targeted exception to the debt brake to secure an additional CHF4 billion ($5 billion) for air defence. Citing the rapid development of drone warfare since Russia’s invasion of Ukraine, the party argues that the spending should qualify as extraordinary expenditure.
The proposal is facing strong legal opposition. The Federal Finance Administration argues that building military capabilities is a permanent state responsibility, not a temporary emergency, meaning there is no legal basis for funding it outside the ordinary budget.
The federal government, meanwhile, favours financing the military build-up through a temporary VAT increase. The Radical-Liberal Party and the right-wing Swiss People’s Party oppose the proposal. If the plan fails, the additional defence spending would likely have to be offset by cuts elsewhere, particularly to development aid and federal staffing.
Since March, the Swiss cross has also been allowed to appear on products manufactured entirely abroad, provided their design or research originated in Switzerland. However, the break with tradition has been met with little enthusiasm from businesses or the public.
The new rules are already influencing business decisions. As Nau reports, footwear manufacturer Kybun is moving part of its production to Italy, affecting around 40 jobs. Managing director Claudio Minder said the company did not want to “go down as a model student”, while other firms are already taking advantage of the revised Swissness rules.
The changes are proving unpopular. According to a new survey, almost 90% of respondents oppose the new regulations, fearing they will dilute the value of the Swiss brand. Many believe the white cross on a red background should remain reserved for products with genuine Swiss manufacturing.
The Swiss Trade Association warns the changes could trigger a dangerous domino effect, putting additional pressure on Swiss small and medium-sized enterprises (SMEs). If products made entirely abroad can carry the Swiss cross, domestic manufacturing risks losing one of its strongest competitive advantages.
Translated from German, sub-edited by Alexandra MV Andrist/sb
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