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Sergio Ermotti, UBS’s former CEO from 2011 until 2020, will take over the running of Switzerland’s largest bank from Ralph Hamers, the current CEO in April 2023, reported RTS. Given the new reality and and risks associated with the integration of Credit Suisse, the long experience Ermotti has had at the helm of UBS, was a key part of the choice, said UBS chairman Colm Kelleher on Wednesday. The Swiss national from Ticino will take over from Dutch national Ralph Hamers, to whom Kelleher...

In Switzerland, basic welfare payments are only paid once an individual has spent almost all of their wealth supporting themselves. These requirements apply to everyone but are typically irrelevant for most refugees, who arrive in Switzerland with next to nothing. However, many arriving from Ukraine, a lower-middle income country, have wealth exceeding the limit, most visibly displayed in the vehicles some drive. Luxury cars in particular have raised eyebrows, although it cannot be assumed...

The rapidly agreed plan hatched behind closed doors last weekend to merge Switzerland’s two largest banks has sparked widespread anger across Switzerland. A poll published this week showed that 66% of Swiss surveyed were either very (37%) or fairly (29%) angry about the merger, reported RTS. © Alan Gignoux | Dreamstime.comLate last week, a crisis in investor confidence in Credit Suisse Group gave way to the beginnings of a bank run. To restore calm, a merger of Credit Suisse and UBS was...

On 22 March 2023, the Federal Tribunal, Switzerland’s highest court, decided that Uber drivers are employees and the companies that employ them must deduct and pay social security taxes, according to a press release. The decision concerns drivers for UberX, UberBlack, UberVan and UberPop working for Uber B.V. and Rasier Operations B.V. and the money paid to them in 2014. Photo by Airam Dato-on on Pexels.comIn 2019, Zurich’s compensation fund decided drivers working for Uber Switzerland...

On 22 October 2023, Switzerland will hold its four-yearly parliamentary federal election. A poll published on 23 March 2023 suggests the biggest loser, compared to the last vote in 2019, could be the Green Party. Photo by Louis on Pexels.comThe Swiss People’s Party (26.6%) and Socialist Party (17.8%), which continued to lead the poll, both progressed by 1 percentage point compared to 2019, while the PLR/FDP (15.6%) in third place gained 0.5 percentage points, reported RTS. The biggest...

On 23 March 2023, the Swiss National Bank (SNB) lifted its policy rate by 50 basis points (half a percent) to 1.50%. The SNB said that it was tightening its monetary policy further to counter the renewed increase ininflationary pressure. In addition it said that it could not rule out additional rises as part of its focus on ensuring price stability over the medium term. Inflation has risen again since the beginning of the year, and stood at 3.4% in February, above the range the SNB...

On 16 March 2023, Switzerland’s State Secretariat for Economic Affairs (SECO) published updated economic forecasts for the year. Photo by Pixabay on Pexels.comA team at SECO focused on business cycles largely reaffirmed its previous assessment. Growth for the Swiss economy is projected to come in significantly below average at 1.1% in 2023, rising to 1.5% in 2024. The energy situation in Europe has eased in recent months. However, inflationary pressure remains high internationally....

Married couples in Switzerland are taxed together on their combined income, something that is not applied to unmarried couples who are taxed individually. This often acts as a tax disincentive for one member of a married couple to work, disproportionately affecting women. Politicians and organisations focused on improving women’s career chances would like to see this combined taxing of income go, something the Federal Council has been working on. Photo by Emma Bauso on Pexels.comHowever,...

It’s been a tough week for share and bond owners of Switzerland’s second largest bank. Shares in Credit Suisse Group started the week at CHF 2.46 and ended the week at CHF 1.86, a fall of 24%. However, at one point they were down 37% at CHF 1.56. Credit Suisse © Yulan | Dreamstime.comOn 15 March 2023, the Swiss National Bank (SNB) and regulator FINMA published a statement asserting that the problems experienced by certain banks in the US do not pose a direct risk of contagion for the...

Switzerland’s much discussed work pension reform was accepted by parliament this week after a number of changes, reported Parlament.ch. Photo by Monica Silvestre on Pexels.comLike Switzerland state pension, compulsory work pensions are under strain as the population ages and people live longer. This week, Switzerland’s parliament voted 113 versus 69 in favour of a package of reforms. Key reforms include lowering annuity rates from 6.8% to 6% and transitionary top up payments, but only...