Friday, August 19, 2011

I wouldn't call it a paradox

From The Trumpet. com about Switzerland, the article being entitled, Why Switzerland is Headed Right Into the Open Arms of Germany
Though small in geographic area and population, and surrounded by EU member nations, in their unique wisdom the Swiss refrained from joining the European Union. They have thus retained their national sovereignty and hence their own beloved sovereign means of exchange, the Swiss franc. Only eight months ago we cited an EU foreign ministry report that threatened the Swiss with either conforming to EU law or risk being shut out of EU markets: “Switzerland’s current relationship with the EU has ‘clearly reached its limits’ and has to change, the report says. Switzerland cooperates with the EU on a case-by-case basis, resulting in a series of over 120 agreements that give Switzerland similar access to the European Union as an EU member.” The Swiss tenaciously stuck to their guns. The paradox is, having taken that decision, the Swiss are riding on the crest of the waves of today’s economically rough seas, while the rest of Europe is in the trough.

What a difference eight months can make. As Europe bites its financial finger nails, the Swiss remain confident of their fiscal position. “The Swiss economy is growing, unemployment is low and our country has little debt compared with other countries. We see neither deflation nor inflation risks at the moment. The national bank does not need to act,” stated Philipp Hildebrand, chairman of the Swiss National Bank, last month.
Then again, I don't get the impression that the author thinks it is really a paradox.

He does, however, think for reasons that are not explained as coherently as one would wish and are shot through with apocalyptic predictions that for one reason and another, not least because of her financial success, Switzerland's independence is a thing of the past or, at least, soon will be a thing of the past, which is now the present. Germany will control the country, just as it (allegedly) controls all of Europe now. Oddly enough, the Germans do not seem to think so. Instead, they bemoan the fact that their government cannot protect them from having to bail out endless losers. But what do they know?


  1. The big problem for the Swiss is the value of the Franc against the Euro and the dollar. Even against the pound in the last few weeks there have been big movements due to speculation and investors looking for a safe haven. Five weeks agoone pound was worth 1.33 Sfr. This went to 1.18 about two weeks ago, and today it is at 1.30. This movement causes problems for Swiss exports and employment.

    The Swiss are far too sensible to join the EU or any union with Germany. As long as have the power of the referendum they will never allow their politicians to have their way.

  2. The Swiss frank's strength has been a problem but, unfortunately, the main reason is the weakness of the other currencies.