Etienne Kiss-Borlase

Leadership

Politics Hurt Business In Switzerland

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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.

Update On Nuclear Deal

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The June 30th deadline for the historic comprehensive nuclear agreement between the Islamic Republic of Iran and several world powers is approaching fast and tensions continue to escalate in the seemingly never ending war of words that has developed around the issue. While many people and political groups support the current version of the agreement, which would include new and innovative methods for monitoring Iran’s nuclear capabilities and nuclear sites, Iran’s top religious and political leader had some interesting demands of his own now that an interim deal has been reached.

Supreme Leader Ayatollah Ali Khamenei, the man who has the final say on any action taken by the Iranian state, has finally joined the larger conversation surrounding the possibility of reaching an agreement. His comments echoed those of Iran’s President, Hassan Rouhani, that Iran will ultimately not sign any final comprehensive deal unless all of the sanctions against the state are lifted on the same day as the signing. Sanctions against Iran by world powers, primarily under the leadership of the United States, have been crippling to say the least. The Iranian economy is very dependent on its oil exports, which is where they have been hit the hardest. Sanctions by the European Union and the United States, for example, make it so that Iran has less potential options of who to do business with when it comes to oil.

Will the two Iranian leaders get what they want? That’s hard to say. President Obama and Secretary of State John Kerry have both said on various occasions that sanctions will be phased out gradually over the course of the agreement. Also, it is hard to determine how much room for negotiation Iran has at the end of the day with a lot of criticism and intense opposition over the deal coming from within the United States government and the Israeli government. France, a major broker in the deal, has also stated that the recent comments by Khamenei demonstrate how difficult it will be to come to final agreements with Iran.

Please visit Etienne Kiss-Borlase‘s official website for more updates on politics and events around the world.

Swiss Government, Great Long Term Investment

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The past years has been quiet remarkable for the Swiss government and their investments made in borrowing money, they are on record as having the lowest rate of interest in history and has saved the country and government billions. The Swiss government sold roughly SFr 122.6 million which is estimated to be worth $131.9 million US dollars. Over the past ten years, investors have seen the smallest return per cent, which essentially is no return on their money. They only saw .011 per cent on returns, which is close to nothing when it comes to a long term ten year investment.

Meanwhile, Switzerland’s neighbor Sweden did not face the same luck and returns when they made the investment. “Sweden sold SKr 3.5 billion, roughly $420 million of bonds due for repayment in 2019, at a yield of minus 0.0503 per cent, just one day before one of the most anticipated meetings of the country’s central bank.” This is according to a statement to the Financial Times. The government decided it was best to suspend debt spending after three months due to the reoccurring numbers which were hurting the economy recently. This is the first time since 2012 where these numbers were this low when it came to deposit rates, at an alarming .75 per cent.

Even with the other European nations struggling, Switzerland was able to pay a very now return on their debt investment due to the ten year plan they had set up previously. This low rate helped Switzerland rank as one of the top fifteen destinations to live, economy wise. Many of the residents are very happy in the way the economy is running and the direction their money is being invested.

For more Swiss financial and political news and updates, please visit Etienne Kiss-Borlase‘s official website.