Switzerland

EU parliamentarian Andreas Schwab has reacted cautiously to the announcement that the Swiss Federal Council – the government – plans to draw up a new mandate for negotiations with Brussels, SRF public radio reports.

The government wants to carry out preparatory work for possible negotiations with the European Union (EU) and is having a negotiating mandate drawn up for this purpose. Negotiation points include – among other things – access to the European electricity market, rules to protect Swiss wages and research collaboration.

After Switzerland broke off negotiations for a framework agreement in 2021, it is now taking a step towards a new contract. On the EU side, however, the hope was for more, says Andreas Schwab, who sits in the EU Parliament for the European People’s Party.

The German is responsible, among other things, for parliamentary relations with Switzerland. In this role he does not negotiate, but he is well informed. Schwab says he is pleased that the Swiss government wants to negotiate with the EU. ...

UBS’s hotly-anticipated sale of additional tier 1 bonds, its first since Credit Suisse roiled the market with a historic writedown, pulled in roughly 10 times the bids for the debt on offer.

The Swiss bank sold two dollar-denominated bonds on Wednesday for $3.5 billion (CHF3.15 billion) in total, with combined orders of more than $36 billion, according to people familiar with the matter, who asked not to be identified because the information is private. A UBS representative confirmed that the bank was selling AT1s but declined to comment further.

At least two investors who suffered losses after the writedown in March of AT1 holdings put in orders for the UBS deal but declined to be identified because they aren’t authorised to speak publicly about the matter.

The stampede to get into the deal marks a complete reversal from March, when roughly $17 billion Credit Suisse’s AT1s were wiped out as part of a UBS takeover brokered by the Swiss government. That triggered the biggest daily loss in the market’s history, and sent yields soaring above 15% for the first time, according to a Bloomberg index. UBS’s offering solidifies the recovery of the asset class, which has seen yields drop by nearly 500 basis points from their peak in March. ...

The government wants to reduce the annual radio and television licence fee from the current CHF335 ($372) to CHF300 by 2029. The turnover threshold for companies to qualify for exemption has been raised from CHF500,000 to CHF1.2 million.

On Wednesday the government put out for consultation an amendment to the relevant ordinance. In a press release, the government explains that it prefers to act in this way rather than proposing a direct or indirect counterproposal to the “CHF200 is enough!” initiative, as it wishes to retain responsibility for setting the level of the licence fee.

The government rejects the initiative, which would have “significant repercussions on the Swiss Broadcasting Corporation’s journalistic offering and regional roots”. With its proposal, the government wants to send a signal to households, explained Communications Minister Albert Rösti.

The licence fee is to be reduced in two stages. It will first fall to CHF312 in 2027 and then to CHF300 in 2029. The change in the exemption threshold for businesses is scheduled for 2027 and will affect some 63,000 additional businesses. “80% of businesses will be exempt,” Rösti said. ...

The Swiss government wants to draw up a negotiating mandate with the European Union. In its view, the exploratory talks with Brussels have been concluded.

The national government intends to decide whether to accept the mandate before the end of the year, according to a statement on the decision on Wednesday. It has instructed the foreign ministry to prepare concrete negotiations.

According to the government, the results of the exploratory talks with the EU will allow the draft to be finalised. The European Commission was informed of this decision on Wednesday, according to the press release.

Swiss diplomats have been holding preliminary talks in Brussels since April 2022. The aim of the exploratory talks was to assess where Switzerland and the EU could reach an agreement. A negotiating mandate is now required to continue.

The exploratory talks included new agreements on electricity, health and food safety, as well as Switzerland’s readmission to the EU research and education programmes Horizon Europe and Erasmus+.

It also includes so-called institutional issues such as the regulation of dispute resolution and the dynamic adoption of law. The most recent round of exploratory talks with the EU took place on October 27. ...

The Swiss government wants to draw up a negotiating mandate with the European Union. In its view, the exploratory talks with Brussels have been concluded.

The national government intends to decide whether to accept the mandate before the end of the year, according to a statement on the decision on Wednesday. It has instructed the foreign ministry to prepare concrete negotiations.

According to the government, the results of the exploratory talks with the EU will allow the draft to be finalised. The European Commission was informed of this decision on Wednesday, according to the press release.

Swiss diplomats have been holding preliminary talks in Brussels since April 2022. The aim of the exploratory talks was to assess where Switzerland and the EU could reach an agreement. A negotiating mandate is now required to continue.

The exploratory talks included new agreements on electricity, health and food safety, as well as Switzerland’s readmission to the EU research and education programmes Horizon Europe and Erasmus+.

It also includes so-called institutional issues such as the regulation of dispute resolution and the dynamic adoption of law. The most recent round of exploratory talks with the EU took place on October 27. ...

Swiss prisoner Brian, whose case attracted the attention of the UN special rapporteur on torture, will be set free on Friday at 10am, the Dielsdorf district court said on Wednesday.

Over the next two days, a “reception room” must now be set up for the 28-year-old, also known as Carlos, with a flat, social pedagogue and day structure.

“After many years, a new chapter is opening. We are ending Brian’s imprisonment,” said the judge on Wednesday at the sentencing hearing. “We invite everyone who cares about Brian to look after him and accompany him.”

It will not be easy for him to prove himself in this situation. “Brian must be aware that new acts of violence could lead to him being imprisoned again.” The court also forbade Brian from approaching Pöschwies prison or contacting the prison staff in any way.

Relatives and his lawyers must now create a reception room, as the judge put it, until the end of his secure detention on Friday at 10am. Brian needs a social pedagogue, a flat and a daily structure.

He still wants to become a professional boxer. He has already drawn up a training and nutrition plan for this. “Brian only punches in the boxing ring. Brian never punches outside the boxing ring,” the judge said, clarifying the aim of the reception room. ...

The Swiss National Bank (SNB) has responded to the US Treasury removing Switzerland from its monitoring list of countries that appeared to be manipulating their currencies.

The SNB said it noted the decision, which came in the Treasury’s semi-annual report into the currency policies of the United States’ major trading partners.

“Together with the Swiss authorities, the SNB remains in contact with the US authorities to explain Switzerland’s economic situation and monetary policy,” the SNB said in a statement on Wednesday. “We welcome these ongoing discussions.”

Switzerland had run into trouble with the US after the SNB’s massive purchase of foreign currencies, designed to weaken the safe haven franc as it surged in value.

The SNB has since changed course, allowing the franc to weaken as a tool to dampen imported inflation.

In its November 2022 report, the Treasury had found that Switzerland had exceeded all three thresholds for possible manipulation, but refrained from branding it as a manipulator. But in June, the Treasury downgraded its view of Switzerland, ending “enhanced analysis” of the country. ...

The largest internally flawless fancy vivid blue diamond ever put up for auction sold for $43.8 million (CHF39.4 million) at a Christie’s sale of rare jewels in Geneva on Tuesday, the auctioneer said.

The vivid blue diamond, known as “Bleu Royal” and set in a ring, is among the rarest ever to be unearthed. At 17.6 carats, the diamond had an estimated value of up to $50 million prior to the sale.

“The stone made almost $44 million,” said Rahul Kadakia, Christie’s international head of jewellery.

“It’s a huge amount of money given what’s going on in the world today.

Max Fawcett, head of Christie’s jewellery department in Geneva, said the diamond was unique because of its a deep rich blue colour and its unmodified pear brilliant shape.

“It really ticked all the boxes, which is why we managed to excite collectors all around the world, all the way from the Far East, also to America,” he said. “We’re extremely delighted with the result.” ...

The city of Bern no longer wants to allow large rallies and parades in the city centre from November 17 until Christmas. The local council announced this on Wednesday.

The reason given was that the public spaces were already heavily used. Numerous events and major events are coming up. But there are also safety-related considerations.

Smaller rallies, such as vigils, could still be permitted in the city centre. Demonstrations are also possible in the rest of the city.

The cantonal security director Philippe Müller (FDP) had previously called for people to avoid Palestine rallies in the Tamedia newspapers. The likelihood of violence at a next rally is high, he said in an interview. However, the approval authority is the city of Bern and not the canton. ...

Anyone who owns an electric car in Switzerland will have to pay automobile tax from January 1.

The Federal Council decided on Wednesday to repeal this tax exemption for electric cars, which has been in effect since 1997.

The state government decided to make a corresponding change to the automobile tax ordinance on Wednesday, as it announced on Wednesday. The authorities justify the change in three ways: Firstly, it is important to counteract tax losses. The number of electric cars on Swiss roads has increased significantly. ...

Swiss housing prices rose to their highest level in at least six years — stoking concern that the market is becoming overheated.

The government’s residential property price index increased to 116.1 in the third quarter, Switzerland’s statistics agency said Tuesday. That’s 1.3% more than a year ago and the highest reading since the data series began in 2017.

In recent years, the price growth of condominiums was slightly less pronounced than that of single-family homes.

Hiring by multinationals like Alphabet Inc. has propelled house prices in Zurich past levels in Paris and London — even as the Swiss National Bank has significantly raised interest rates. Local supply squeezes are also keeping a floor under prices.

Such trends prompted SNB President Thomas Jordan to warn last week that house prices may drop — echoing earlier concerns that real estate may be overvalued. ...

The Bernese security director Philippe Müller (FDP) has called for Palestine rallies to be avoided. The likelihood of violence at a next rally is high, he said in an interview with the “Berner Zeitung”.

Müller came to this conclusion after assessing the situation together with the police and the police intelligence service, as he said in an interview on Wednesday. However, the approval authority is the city of Bern and not the canton. He made the appeal as cantonal security director, said Müller.

According to him, the next event could see more violence and more flags with prohibited content. Nobody can guarantee that extremists from Germany won't come to Switzerland to inflame the mood, he said, looking across the border.

Müller does not see a conflict with freedom of expression. "Freedom of expression can also be abused by people chanting extreme slogans at a demonstration for peace," he said.

Anti-Semitism is “simply not acceptable” in Switzerland, said Müller. It is particularly tragic that these days are the 85th anniversary of Kristallnacht. "And I have the impression that post-war Europe has never been as close to the conditions back then as today," said Müller. It is also unacceptable for events to be canceled or not announced due to possible violence. ...

Switzerland plans keeping nuclear plants in use longer than previously expected over fears of electricity shortages, mirroring a broader trend of European countries revisiting the potential of atomic energy.

The country decided to exit nuclear power in 2017, but didn’t set a date to shut down its four plants, which are supposed to run as long as deemed safe. Operators Axpo Holding AG and Alpiq Holding AG have already boosted the planned lifespan for their plants to 60 years from a previous target of 50, spokespeople for the companies told Bloomberg. That would see them operating until around 2040.

On top of that, Alpiq is studying the impacts of a further extension to as many as 80 years on safety, investments and profitability, its spokesman said. That would mirror moves in the US, where more than 90% of existing nuclear reactors will likely seek approval to operate at least that long.

Swiss nuclear power plants are allowed run for as long as they can be operated safely, a spokesperson for Switzerland’s Federal Office of Energy said, highlighting that the government never set an exit date and all lifespan calculations stem from reactor operators. ...

Purchasing power in Switzerland is likely to remain under pressure next year. Companies surveyed by UBS want to pay their employees more wages for 2024, but higher salaries cannot compensate for the inflation.

Specifically, the 389 companies surveyed as well as employer and employee associations expect an average wage increase of 1.9% for 2024.

Taking into account inflation expected at around 2%, real wages are therefore unlikely to rise next year, according to the conclusion published on Wednesday Salary survey by the major bank UBS. ...

The Federal Council should be able to deviate from the approval criteria for exports of war materiel in exceptional cases.

After the Council of States, the responsible National Council commission also wants to adapt the War Materiels Act.

The Security Policy Commission of the National Council (SIK-N) asked the large chamber to accept a corresponding motion from the Council of States by a vote of 14 to 9, as the parliamentary services announced on Tuesday. In the eyes of the majority, the motion does not mean a free pass for war materiel exports.

The motion wants the Federal Council to be able to deviate from the approval criteria for foreign transactions when it comes to war material if there are extraordinary circumstances. He should also be able to do this if the protection of the country's foreign or security policy interests requires it. ...

Employment prospects in Switzerland will remain good in the coming months, according to the KOF economic research center. There are only signs of a decline in employment in the manufacturing sector.

The employment indicator calculated by the ETH economic research center KOF fell for the third time in a row in the fourth quarter, but remains clearly in positive territory, announced the KOF on Monday. For the fourth quarter of 2023 it is still at 7.7 points, after the slightly downward revision from 9.2 points in the previous quarter.

The KOF economists emphasise that it is still significantly above the long-term average of “close to zero” and also higher than before the Covid-19 pandemic. Since its peak in the second quarter of 2022, it has more than halved.

The KOF employment indicator is calculated from KOF's quarterly economic surveys. According to the announcement, the evaluations for the fourth quarter are based on the answers from around 4,500 companies that were surveyed in October about their employment plans and expectations. ...

Swiss consumers will have to pay more for energy but how much depends on the commodity and region.

While market prices for electricity, for example, have calmed down considerably since the exceptional highs in summer 2022, the costs for households continue to rise. This is in part due to the fact that there is a delay in passing on the higher costs of electricity production and procurement to households. This is because they are regulated by the state and are only adjusted once a year.

After an increase of a full 27% at the beginning of 2023, electricity prices for end customers will rise by a further 18% at the start of the new year. There are significant regional differences though. Some suppliers, such as BKW (Bern power), supply their customers from their own power plants and are therefore more or less unaffected by market fluctuations.

Nevertheless, the Swiss still pay significantly more for heating with gas than before the rapid rise. For example, Energie 360 Grad, the large Zurich supplier, has been charging CHF0.12 per kilowatt hour for its standard product since October. ...

Canton Graubünden in eastern Switzerland has applied to the federal government for authorisation for the “complete removal” of the Stagias, Vorab, Beverin and Lenzerhorn wolf packs, it announced on Tuesday.

The aim is to prevent attacks on cattle by the Stagias and Vorab wolf packs and the repeated violation of herd protection measures by the Beverin and Lenzerhorn wolf packs for the coming grazing season, according to a press release.

The canton has also applied for the killing of up to two thirds of the cubs of the Rügiul wolf pack in Poschiavo and the Jatzhorn wolf pack in Davos, it added. Graubünden applied for a total of 27 culls. ...

Swiss bank UBS eliminated around 4,000 jobs worldwide in the third quarter alone as part of the integration of Credit Suisse.

On Tuesday, UBS reported cost savings in the billions and is therefore already ahead of its own plan following the Swiss government orchestrated takeover of Credit Suisse.

When compared to the total number of people employed at the end of 2022 for the then still separate companies UBS and Credit Suisse, the total reduction in headcount is more than 13,000. This figure also includes outsourced jobs and consultants.

On the basis of full-time equivalents, UBS now reports 115,981 jobs at the end of September, after last estimating the number of full-time equivalents at the end of June 2023 at 119,100. Big losses

UBS Group also posted its first quarterly loss in almost six years, as the integration of Credit Suisse drags on the Swiss lender’s performance.

The Zurich-based bank said it had a net loss of $785 million (CHF707 million) for the three months to September, after including total integration-related expenses of $2 billion. ...

Security measures are to be strengthened at the federal asylum centre in Chiasso, canton Ticino, Swiss Justice Minister Elisabeth Baume-Schneider announced following her visit on Monday.

The asylum situation in the Swiss city must be “carefully analysed”, the minister declared in Chiasso after her visit to the federal centre and a border post with Italy. This was her second visit to Chiasso, following one in January.

Since the beginning of summer, the local and cantonal authorities in Ticino have been calling for measures to improve the situation inside and outside the asylum centre. They criticise the high occupancy rate and numerous reported offences.

The justice ministry confirmed that Elisabeth Baume-Schneider had instructed the State Secretariat for Migration (SEM) to permanently strengthen security and prevention measures in and around the centre. This will include additional staff and patrols and an increase in occupation programmes, in agreement with the municipalities.

The ministry is also preparing changes to the law to strengthen security and prevention in federal asylum centres in general. ...

The percentage of Swiss residents over 15 with a migration background rose by 1% to reach the 40% mark last year, new figures reveal.

Federal Statistical Office figures published on Monday show that in 2022 2,951,000 permanent residents were of migrant origin in 2022.

Nearly 80% of these people were born abroad and are therefore part of the first generation (2,342,000 people).

Of the 2,951,000 permanent residents with a migrant background, 38% have Swiss nationality. The most common foreign nationalities are Italian (10%), German (9%), Portuguese (7%), French (4%), Kosovar (3%) and Spanish (3%). ...

Geneva's cantonal and city authorities and women's associations have launched a wide-ranging campaign to combat gender-based and sexual violence.

"We are calling for a collective mobilisation against gender-based and sexual violence," councillor Nathalie Fontanet, head of the Office for the Promotion of Equality and the Prevention of Violence, told reporters on Monday.

Last year, half of all cases of violence registered in Geneva involved domestic violence.

In 2022, the Geneva police issued a total of 789 requisition orders, the highest level since 2010 or an average of 2.2 reports per day. In addition, 109 administrative removal orders were served against perpetrators. And since the start of the year, thirteen feminicides have been committed in Switzerland, compared with fifteen in 2022, said Fontanet.

“Despite widespread awareness, sexist behaviour is all too often trivialised. Sexism continues to kill, regardless of class and in all spheres of society,” said Geneva Mayor Alfonso Gomez, who is responsible for equality issues. ...

Swiss unions have expressed concerns over recent talks between Bern and Brussels. They urge the Swiss government to defend the interests of the population in negotiations with the European Union and to guarantee the protection of wages and public services.

The Swiss Trade Union (USS) and the Travail.Suisse union told reporters in Bern on Monday that they were very worried about the progress of the talks between Switzerland and the European Commission.

Following the previous draft “institutional agreement” project, a liberalisation programme is now emerging, they say.

In recent exploratory discussions, the Swiss federal authorities accepted a reduction in salary protection and a weakening of public services, the unions say.

Workers posted to Switzerland from abroad would no longer be reimbursed for expenses such as meals and accommodation at the level provided for in Switzerland. This would distort competition for Swiss companies.

In addition, the unions denounce the complete liberalisation of the electricity market and access to the rail market for service providers such as FlixTrain for international passenger traffic. The unions urge the Federal Council to correct these mistakes. ...

The UN Refugee Agency UNHCR has noted improvements in the accommodation of asylum-seekers in Switzerland. However, significant gaps in the federal asylum centres remain, including in the care of people with special needs and in the prevention of violence, the UNHCR announced on Monday.

After visiting 12 federal asylum centres in 2021 and 2022 in all asylum regions of Switzerland and talking to 269 asylum-seekers and 218 people working in the federal asylum centres, the UNHCR made several recommendations. The UN organisation also aimed to evaluate the new asylum system that was introduced in 2019.

Even though the number of unaccompanied minors seeking asylum has increased, the UNHCR called for the quality of care and continuation of school attendance to be ensured. There was also a lack of a mechanism to systematically identify special needs; staff in the federal asylum centres should be made more aware of this. ...

Normal operations in the Gotthard Base Tunnel will not be possible until September 2024. The southern Swiss canton of Ticino is irritated by what it considers slow communication from the Swiss federal railways.

Fabio Regazzi, president of the Swiss Trade Association, considers the estimated time for the tunnel repairs to be inconceivable and unacceptable, according to a report on Swiss public radio, SRF, on Monday. Regazzi has the impression that the federal railways is hardly making the greatest effort to reduce this time.

Regazzi also criticised the federal railways’ late communication. Christian Vitta, director of finance and economics for Ticino, agrees. The timetable change is already due in December and only now are they finding out how long the repairs will actually take, and therefore also when the second tunnel of the Gotthard Base Tunnel will be fully accessible again, he said.

Vitta said he would have liked to have known earlier. “We could have prepared better for this long period if we had known about it earlier,” he said. ...