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Jacques de Watteville, Swiss Ambassador to the EU
include chemicals and pharmaceuticals,
metal and semi-finished metal
products, food and drink, vehicles,
office equipment, and telecommunications
and sound recording
equipment.
Swiss ambassador to EU calls
for long-term vision
Jacques de Watteville, Swiss Ambassador
to the EU, points out that while
the EU Commission and the government
of Switzerland have sometimes
been at odds over taxation issues,
“Switzerland is holding a good hand
of cards. The EU recognises that our
agreement on taxation on savings
and the pay-as-you-earn system is
working well. Switzerland returned
almost €349.2 million to EU member
states in 2008.” He adds, “The independent
reform of the taxation of
businesses that Switzerland envisages
should contribute to maintaining a
competitive and attractive economic
area. We must be realistic and anticipate
the developments to come. We
must have a long-term vision.”
Concerning bilateral trade agreements
with the EU, Jacques de Watteville
explains, “For the Union,
if Switzerland wants to participate
in certain sectors of the internal
market, it must respect the rules,
and therefore resume the application
of current and future EU law.
It is also in Switzerland’s interests to
have unified rules. Otherwise, it will
not have full access to the internal
market. The challenge is to find
mechanisms that allow us to achieve
this goal while respecting the sovereignty
and healthy functioning of
Swiss institutions. We have to find
a balance. For Switzerland, respecting
our sovereignty and institutions
is crucial, as it is elsewhere and also
within the EU.”
Attractions for investors
Switzerland’s traditional strengths
are advantageous to investors.
Switzerland has no controls on
exchange, inward investment, the
repatriation of profits or capital on
disinvestment, other than applicable
taxes. In addition, the Swiss franc is
fully backed and is one of the world’s
strongest currencies; it appreciated
300% against the US dollar between
1974 and 2008, a factor which
continues to encourage international
investors to locate their assets
in Switzerland.
The Swiss authorities have a “laissez-faire”
attitude towards investment,
but the government does
support infrastructural investment
(tourist facilities, communications
and training facilities) with subsidised
loans up to 25% of a financing
package. There are also a few traditional,
mainly rural, industries in
which the government offers even
more financial support.
Investment support at
cantonal level
At the cantonal level, a wide variety
of investment supports is available.
The cantons frequently compete vigorously
to secure attractive projects,
and the terms of incoming investment
are negotiable in many cases.
The types of support available include
assistance or subsidies with land or
premises, waiving of work permit
requirements, tax holidays of up to
10 years, cheap energy and training
subsidies. Some cantons have designated
industrial zones which provide
some or all of these privileges.
Although most cantons are open
to foreign investment in principle,
some in particular are more open
than others. Freiburg, Grisons,
Luzern, Schwyz, Unterwalden, Uri,
Valais and Vaud, all of which are predominantly
agricultural areas, are
thought to be particularly keen on
attracting inward investment.
Anywhere in Switzerland, companies
can count on highly skilled, multilingual
human resources, high quality
of life, and exceptional business
support services.
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