In a surprise move the Swiss National Bank shocked the world today when it announced that it would stop managing the Swiss franc to an exchange rate of CHF 1.20 to 1.00 Euro. At the same time, it announced that it is lowering the interest rate on sight deposit account balances by 0.5 percentage points, to […]
Tax and the Swiss National Bank in 2014
To the joy of taxpayers, every year the Swiss National Bank (SNB) pays dividends to the cantons as well as the Confederation. At least this is what happened for every year from 1907 until 2012. In 2013 the SNB made a loss of CHF 9 billion and was in no position to pay. Payments were […]
The negative effect of negative Swiss interest rates
On 18 December 2014 the Swiss National Bank (SNB) introduced negative interest rates of -0.25% on sight deposit account balances over a certain amount – sight deposit accounts are those where funds can be withdrawn immediately without restriction. It also shifted its target range for 3 month LIBOR to a range of -0.25 to -0.75%. The […]
Clock ticking backwards for Swiss nuclear energy?
Switzerland wants out of its nuclear energy programme as soon as the life expectancy of its reactors is reached. With evident agreement between the political center and left wing, the first nuclear installation to be shut down in 2031 will be the oldest one, Beznau I (commissioned 1969). By 2034, the Swiss will have gradually […]
Ripped off by illegal French tax? Claim a refund by end of 2014
In the past year, Le News and specialist publications such as French-Property.com, have highlighted the problems facing Swiss-based (and other) non-residents of France. Taxation of rental income and unequal capital gains of non-residents are now the source of considerable legal controversy in France. Earlier this month, the Avocat General of the European Commission gave an […]
The Swiss deflation puzzle
There is currently much talk of the dangers of deflation and the specter of its imminent arrival in the Eurozone. The Economist newspaper proclaimed last week that if deflation were to set in, the single currency would be in peril. Economists assume that deflation, or falling prices, reduce consumption as consumers defer spending in the […]
1 hour faster to Milan
The Gotthard Base Tunnel running under the Swiss Alps is one step closer to completion: all 290 km of track for the new flat rail link are now laid. The 57-km tunnel, which is the central component of the CHF 9.74 billion project, will surpass the current world record for the longest tunnel held by […]
Geneva ranked as best city in the world
While currently draped in November fog, Geneva might not seem to be the most liveable city in the world. When my wife first came here some years back in mid-winter, she did not even realise that Geneva was surrounded by mountains until one of those heavenly days suddenly lifted the grey from the end of […]
Swiss companies out-perform analysts’ expectations – except for UBS
Markedly positive third quarter earnings are now being released by Swiss companies. According to IG Bank, eight of the 15 companies that have reported so far have beaten analysts’ expectations by an average 2.21% with the exception of UBS. At Switzerland’s largest bank, UBS, profits were lower than expected at CHF 762 million against analysts’ […]
Swiss apprenticeships: Major employment advantage
Switzerland, Germany and Austria, three countries where apprenticeship programmes are most prevalent, also have the lowest youth unemployment rates in Europe. Some policy makers are wondering if there is a connection and whether the focus on ever higher education is the best way to address youth unemployment Stefan Wolter, director of the Swiss Coordination Center […]
