What Makes Switzerland’s Relationship to the EU Unthinkable?

Let’s talk money today… I’ve started my morning coffee with Clive Crook’s article on Bloomberg who predicts that UK’s exit from the EU might happen sooner than expected unless the Union finds a solution to the gripping Eurozone crisis fathoming new instability challenges.

Quiet sailing on Lake Geneva / Credit: www.communicationxdevelopment.wordpress.com

Quiet sailing on Lake Geneva / Credit: http://www.communicationxdevelopment.wordpress.com

I was particularly struck by the arguments that set a parallel between UK’s economy (I’m no expert) and Switzerland’s (here I might know a few bits). He says that Switzerland’s relationship with the EU is unthinkable because the Swiss think that UK should head the EU which is unlikely given the in-out referendum.

I’m not sure where he got his idea from, however Switzerland is particularly comfy in her own federal canton shoes and shall not ever consider joining the EU and give up its national currency. Remember the August 2011 crash when the CHF-euro parity was nearly even? That was quite an alarming situation with investors grabbing the Swiss franc for fear of the euro currency collapse.

Well, it did not collapse and the EU has done much to lessen its volatility but that does not stop instability trends. The Swiss National Bank has maintained its cap of CHF 1.20 per euro to avoid deflation risks since the 2011 crisis peak and has vowed to maintain it whatever the consequences.

Of course the Swiss franc is overvalued but it’s not like the Swiss National Bank has a choice if it wants to avoid domino bankruptcies of exporters… And one asks, for how long will it be able to maintain this ceiling and what happens to the EU in case of failure?? Ooops!

About Cristina Popa

Cristina is a WordPress blogger who regularly writes or shares updates on media, public affairs and various topics of interest. You may follow her on Communication for Development WP blog or Twitter @CristinaPopa0
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7 Responses to What Makes Switzerland’s Relationship to the EU Unthinkable?

  1. ledrakenoir says:

    I don’t believe swiss relations with the EU at all dependent on UK relations with the EU – EU structure is very untransparent and paternalistic for the swiss flavor – therefore they involves not more than absolutely necessary – swiss sense of freedom is far more than empty talk…:-)

    • Thanks for the great comment 🙂 The Swiss are anything but dependent, so the relationship that the author on Bloomberg was establishing was purely artificial. From my personal living experience in Switzerland, they will not ever consider joining the EU nor indeed mixing with Europeans more than their established “neutral” limits. If it weren’t for the Swiss, the franc would have already eaten the euro, but they cannot afford that either 🙂

      • ledrakenoir says:

        Agree with you the swiss franc is really the strong boy/girl in the “class” like german mark was before euro – my own swiss experience totally agree with you about “Switzerland will not ever consider joining the EU nor indeed mixing with Europeans more than their established neutral limits”… 🙂

      • Yep, it’s the EU who is totally dependent on the Swiss… I do miss their cheese 🙂 and chocolate 🙂

      • ledrakenoir says:

        I’m a totally Toblerone freak – the black one and the white one – and like you the swiss cheese… “lol”

      • Mine is Cailler crémant, but I am not fussy when it comes to chocolate 🙂

  2. ledrakenoir says:

    Cailler crémant, it’s a very good choice… 😉

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