Over the past decade or so, the business and economic industry has been taking a hit due to the ruptured economy in Switzerland. Foreign firms are are drawing away from setting up business in the country, it has dropped 8% to only 274 in 2014 and an astonishing down 21% since 2013. Even though Switzerland has one of the most competitive economies in the world, the politically instability of the government has been drawing organizations away and to other European nations which is beginning to hurt the economy greatly.
Rudolf Minsch, the chief economist of business lobby Economiesuisse explained to Bloomberg, “It’s like a world championship, placing at the top doesn’t mean you’ll win again next time. You have to train. It’s the same with the business environment. We have a spot on our record with the mass immigration initiative and the say on pay.”
Not only has the political state driven business away, but the citizens have been pushing for a more strict immigration law which limits the amount of business’s which can be started in the country. Not having these companies and business’s started in Switzerland has really hurt the unemployment rate of the country as whole. With it now nearing 5%, highest it has been in quite a while.
Another downfall which is causing potential business away is the tax increases. Switzerland was known in the past for its great tax rates which has began to take a hit, “Competitive advantages have shrunk and we aren’t best in class everywhere anymore. We are only competitive overall if have a very attractive tax system.”
Switzerland is hoping to get back to where they once were, but the current state is not trending in the right direction. For more political and finance information, please visit Etienne Kiss-Borlase‘s official website.