Swiss-EU negotiations: A dangerous leap into the unknown - ING
|“Since Friday morning, there is no more stock exchange equivalence between Switzerland and the EU. The risk is that relations between the two sour further, ultimately jeopardising the health of the Swiss economy,” notes Charlotte de Montpellier - Economist Switzerland at ING.
Additional quotes:
“Tensions between Switzerland and the EU aren't good for trade, business investment, or for the funding of scientific research in Switzerland that depends on European funds.”
“The economic links are very strong between the two, mainly because Switzerland has access to the European common market and because Switzerland is surrounded on all sides by countries belonging to the EU. Thus, the EU is Switzerland's most important trading partner, with 53% of Swiss exports going to the EU and 71% of Swiss imports coming from the EU.”
“As Switzerland is a small open economy relying heavily on international trade, greater difficulty in trading with neighbouring countries will be a huge problem for Switzerland. There will probably be problems in other areas as well. For example, Switzerland has access to the European electricity market, but the future of this access depends on the ratification of the framework agreement. An escalation of tensions could lead to the exclusion of Switzerland from the European electricity market, threatening the security of supply.”
“All in all, beyond the purely political aspect of the negotiations, a deterioration of relations between Switzerland and the EU risk jeopardising the health of the Swiss economy.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.