Federal Council strengthens agenda for location attractiveness
The Federal Council wants to secure Switzerland's competitiveness in the long term. In view of global uncertainties, it is focusing on regulatory relief, lower production costs and new international sales markets. The first steps have already been taken with free trade agreements.
The international environment remains volatile. The USA is questioning trade relations and distancing itself from the OECD minimum tax reform, while the EU is focusing on competitiveness and reducing bureaucracy. For Switzerland, this means risks, but also opportunities. Its stable framework conditions, open economy and excellent research landscape continue to provide advantages in global competition.
Improved location conditions are key
The Federal Council is intensifying its economic policy agenda and prioritizing measures that reduce companies’ production costs. In addition, alternative sales markets are to be developed and legal and planning security strengthened. Important successes include the new free trade agreement with India and the conclusion of negotiations with Mercosur.
Relief for companies
Switzerland has created a key instrument in the form of the Corporate Relief Act (UEG), which is now to be implemented consistently. New burdens are to be avoided, existing regulations reviewed and simplified in a targeted manner. The evaluation of selected areas of regulation plays a central role in this.
Focus on short-time work and export promotion
The Federal Council is currently examining swiftly effective measures for short-time work compensation. An extension of the benefit period from 18 to 24 months within a framework period is being discussed. At the same time, the need for additional steps in export promotion is being analyzed in order to protect Swiss companies in a challenging environment.
Although around 10 percent of Swiss goods exports are affected by additional US tariffs, the Federal Council does not expect a recession comparable to the financial crisis or the pandemic. An economic stimulus program is therefore not considered necessary. However, the analysis of the economic situation will be continued on an ongoing basis so that targeted action can be taken if necessary.