Le News

| Swiss News

How Brexit will affect Geneva

By

According to Cenni Najy, a political science specialist at the University of Geneva, cited in the Tribune de Genève, Brexit with have a very direct impact on Geneva. Many British nationals work in Geneva and many from Geneva work in London, particularly in financial services. What will happen when there are changes to the free movement of people?

There are many flights between Geneva and the UK, in particular on Easyjet, reflecting the strong tourism and business links between the two places.

Najy says “The canton of Geneva will be the Swiss canton most affected by the Brexit. Geneva is in a position of interdependency with the United Kingdom.” It imported CHF 1.7 billion from the UK in 2015, and only the canton of Basel exports more to the UK than Geneva.

According to Swiss government statistics there were nearly 7,500 British living in the canton in 2014.

One-way or return? © Franzisca Guedel | Dreamstime.com

One-way or return? © Franzisca Guedel | Dreamstime.com

Others like Laurent Bakhtiari, an analyst at IG Bank, quoted in an article in Bilan says: “London was considered the financial nerve centre because it was the access point to the EU. This will go up in smoke and financial players are going to look for another hub. Where will that be? It’s too soon to say. HSBC and Deutsche Bank already have plans to leave London and Switzerland has much to offer. Brexit deprives the City of its role as a hub. Banks will need to adjust.”

UBS, Credit Suisse and Julius Baer could bring operations back to Switzerland which could boost local activity.

Oscar Bartolomei, director of a family office in Geneva told Bilan: “In terms of wealth management, Switzerland has several cards to play. Already in the lead up to the referendum funds were flowing from the City (of London) to Geneva. Private banking clients hate uncertainty and Switzerland profits every time there is a crisis in a neighbouring country. With account transparency and automatic exchange of information between Switzerland and the UK, a client in the City can move their account in 48 hours. An account declared in London is automatically declared in Geneva.”

Oscar Bartolomei does point out that “… Switzerland does not have access to the european market, which will discourage fund managers to set up here.”

Full Bilan article (in French) - Take a 5 minute French test now
Full Tribune de Genève article (in French)

For more stories like this on Switzerland follow us on Facebook and Twitter.

Brexit in pictures – cartoons and photos that save many words

By

Creative types around the world are finding ways to express what happened when 51.9% of British voters voted to leave the EU. Here is a selection:

Brexit expressed with food

Cartoons from Geneva-based cartoonist Patrick Chappatte

How to convert a UK passport

Step 1 – What you’ll need: one passport, a box of plasters, and an indelible marker.

What you'll need

Step 2 – Take one small plaster and cover the redundant words “European Union” at the top of the passport

Standard conversion

Step 3 – The Scottish option – Note: also works for Northern Island.

Occasionally one sentence can succinctly sum things up. One such sentence is an article title in Private Eye which sums up the Brexit vote with: ‘Once in a Lifetime Chance to Settle Nothing’ Say All Sides…

Scotland

For more stories like this on Switzerland follow us on Facebook and Twitter.

Brexit will affect Switzerland, says Swiss president

By

Swiss president Johann Schneider-Ammann said “This decision affects your country directly and indirectly.”

© Valery Bareta | Dreamstime.com

© Valery Bareta | Dreamstime.com

Firstly, relations between Switzerland and the UK will need to be redrawn. This will not happen today, but once the UK formally leaves, in around two years time. The current rules for people and companies will stay in place until further notice.

Switzerland remains very keen to maintain close relations with the UK, a very important partner, particularly economically.

An interdepartmental working group, which has been working for several weeks on the possibility of a Brexit vote, will intensify its efforts.

In addition to economic relations he said “I think agreements on a number of other themes, such as air transport, free movement of people, scientific cooperation, tax and security, that up until now have been governed by Bilateral EU agreements I and II, will require a new framework.”

Secondly, following today’s result, the Swiss federal council is still very determined to continue discussions with the EU on how to implement article 121a of the Swiss constitution, referring to the February 2014 vote to control mass immigration. The EU had signaled that it was ready to intensify discussions after the Brexit vote.

The president said: “It is clear that finding a solution is now more difficult after the UK’s decision to leave the EU. It is however, pointless to speculate on the effects of this decision, although progress is not expected over the summer.”

Thirdly, the UK’s decision will add to doubts on Europe’s economic prospects. This will impact negatively on the Swiss economy, on top of the economic impact of the challenges of finding a solution with the EU on immigration.

The federal council will follow the impact of today’s news on the Swiss franc exchange rate, which you have certainly seen in the markets this morning. This adds further pressure to Switzerland’s exporters. The Swiss National Bank (SNB) is in charge of monetary policy however the federal council is in close contact with the SNB.

More on this:
Swiss government press release (in French)
Swiss government press release (in German)

For more stories like this on Switzerland follow us on Facebook and Twitter.

Britain votes to leave EU. What does it mean?

By

All of the votes have been counted. 51.9% of the votes were for “leave”.

Donald Tusk, President of the European Council, said in an announcement, that EU law will continue to apply to the UK until the nation formally leaves the club, including rules on free movement of people.

© Lucian Milasan | Dreamstime.com

© Lucian Milasan | Dreamstime.com

David Cameron said in a speech that he’d like to assure British citizens abroad and EU citizens in the UK that there would be no immediate changes. He also announced his resignation and said he wants a new prime minister in place by October.

The Swiss foreign office said: “Although the electorate of the United Kingdom has voted to leave the European Union, current regulations regarding Swiss citizens and companies remain applicable for the time being and nothing will change immediately. Swiss citizens can contact the FDFA Helpline if they have questions about how this issue may affect them.”

In the markets, the pound dropped as low as 1.32 US dollars, 1.20 Euros and 1.29 Swiss francs according to Reuters. By around 9:00 am the pound had moved from these lows to 1.37 US dollars, 1.24 Euros and 1.33 Swiss francs. The euro Swiss franc rate was at 1.06 at one point and by around 9:00 am was at 1.08. IG Bank in Switzerland said: “The SNB is probably intervening in the FX market to prevent a sharper strengthening of the franc.”

10 minutes after the UK markets opened the FTSE 100 was down around 8%. By 10:00 am it was down by around 5%.

Politicians in other countries are calling for similar referenda in their countries.

In France, Marine Le Pen Tweeted: “Victory and liberty! As I have demanded for years, we need to have the same referendum in France and in other EU countries.”

For more stories like this on Switzerland follow us on Facebook and Twitter.

Britain votes to leave EU

By

All of the votes have been counted. 51.9% of the votes were for “leave”. Voter turnout was 72.2%.

Voting was divided. Scotland (62.0% remain) and Northern Ireland (55.8% remain) voted too stay, while England (53.4% leave) and Wales (52.5% leave) voted to leave.

© Donfiore | Dreamstime.com

© Donfiore | Dreamstime.com

In the markets, the pound dropped as low as 1.32 US dollars, 1.20 Euros and 1.29 Swiss francs according to Reuters. By around 9:00 am the pound had moved from these lows to 1.37 US dollars, 1.24 Euros and 1.33 Swiss francs. The euro Swiss franc rate was at 1.06 at one point and by around 9:00 am was at 1.08. IG Bank in Switzerland said: “The SNB is probably intervening in the FX market to prevent a sharper strengthening of the franc.”

10 minutes after the UK markets opened the FTSE 100 was down around 8%.

Donald Tusk, President of the European Council, said in an announcement, that EU law will continue to apply to the UK until the nation formally leaves the club, including rules on free movement of people.

David Cameron said in a speech that he’d like to assure British citizens abroad that there would be no immediate changes. He also announced that he wants a new prime minister in place by October.

The Swiss foreign office said: “Although the electorate of the United Kingdom has voted to leave the European Union, current regulations regarding Swiss citizens and companies remain applicable for the time being and nothing will change immediately. Swiss citizens can contact the FDFA Helpline if they have questions about how this issue may affect them.”

Detailed results can be seen on the BBC website.

For more stories like this on Switzerland follow us on Facebook and Twitter.

British EU referendum polls closed

By

British polling booths have closed. An estimated 72% of voters turned out to vote. No results have been released yet, however the BBC reports that a YouGov poll has remain in the lead by 52% to 48%. This is only a poll and not a vote result. The Telegraph has reported that Tory party members who supported Brexit have signed a letter urging prime minister David Cameron to stay on as leader regardless of the result.

© Eziogutzemberg | Dreamstime.com

© Eziogutzemberg | Dreamstime.com

The markets appear to be betting on the remain camp winning. The pound has risen to 1.50 US dollars, according to Reuters.

The first completed vote count was Gibraltar, where 95.9% voted to remain. The second vote count in was Newcastle and Tyne, which returned a remain results of 50.7% and the third was Sunderland with a 61.3% voting leave.

Vote counting continues. Real time results can be seen on the BBC website.

For more stories like this on Switzerland follow us on Facebook and Twitter.

Switzerland withdraws its application for EU membership

By

Back in the days when mobile phones looked like the one pictured below, the Swiss voted on whether to join the EEA (European Economic Area), the first step towards EU membership. On 6 December 1992, 78.9% of Swiss voters turned out to vote, the highest turnout seen in Switzerland over the last 45 years.

© Thapakorn Tawornnurak | Dreamstime.com

© Thapakorn Tawornnurak | Dreamstime.com

The traditional voting divide between French and German speakers, known as the rösti graben, was pronounced. The French-speaking cantons were heavily in favour of joining. Voters in French-speaking, or majority francophone cantons, including: Vaud (78.3%), Geneva (78.1%), Neuchatel (80.0%), Jura (77.1%), Valais (55.8%) and Fribourg (64.9%), were all in favour of joining. Voters in nearly all other cantons were against the idea. The only other cantons with favourable majorities were the German-speaking cantons of Basel City (55.4%) and Basel Landschaft (53.2%). The remaining 18 of Switzerland’s 26 cantons were all against the idea. Overall Switzerland rejected EEA membership by a narrow 50.3%.

At the time of the 1992 vote, Switzerland’s federal council, or cabinet, was firmly in favour of joining, releasing a statement saying they were “convinced that the EEA is of vital importance to Switzerland. Joining the EEA will prevent the isolation of our country in Europe, allow businesses to access new markets, ensure prosperity, and open new possibilities for future generations.” Despite joining neither the EEA nor the EU, Switzerland has an EU trade agreement, allows free movement of people, and is part of the Schengen zone.

Ahead of the 1992 vote the Swiss government filed an application to join the EU block. This application has sat somewhere in EU storage ever since.

This Wednesday, a motion put forward by Swiss People’s Party MP, Lukas Reimann, to formally withdraw the application received overwhelming support from Switzerland’s politicians. According to the Neue Zürcher Zeitung, a total of 27 out of 42 members of the States Council, voted to withdraw the application, backing up an earlier decision by the National Council, where 126 voted in favour, 46 against, and 18 abstained.

© Miriam Doerr | Dreamstime.com

© Miriam Doerr | Dreamstime.com

After 24 years, Switzerland will now give formal notice to Brussels to have the application withdrawn.

Switzerland’s long-standing application has had little impact on Swiss politics over the last 20-plus years, since the failed referendum in 1992. 

Speaking to the Neue Zürcher Zeitung, Filippo Lombardi, from the Christian Democratic People’s Party, said it was “not very clever to discuss it again” and called the whole thing “a bit ridiculous.”

Background notes:
Following the 1992 vote, Swiss voters rejected two similar proposals to become part of the EU. In 1997 a vote entitled “Negotiations to join the EU: let the people decide” failed with 74.1% of voters rejecting it – all cantons registered a majority against this initiative. Then in 2001, a vote entitled “Yes to Europe!“, was rejected by 76.8% of voters – again all cantons registered a majority against the proposal.

More on this:
Read NZZ article (in German)
Swiss Federal Council advice to voters in 1992 (in French) - Take a 5 minute French test now
Swiss Federal Council advice to voters in 1992 (in German)

For more stories like this on Switzerland follow us on Facebook and Twitter.

Stay up to date

Sign up to our weekly newsletter

By subscribing you agree to our Privacy Policy.