Fri, Dec 16th 2022
Switzerland has been one of only a handful of European countries like Sweden and Norway to try out a minimum wage. It was nullified this week in Swiss Parliament (pictured above).
Swiss parliament members this week voted to nullify the country’s minimum wage. Only five of Switzerland’s 26 cantons have had a minimum wage for a few years, but now none of them will. Parliament members narrowly passed the nullification on the grounds that wages should be decided by collective labor agreements. Under such agreements, Swiss employers and unions will establish salaries that reflect the cost of living in that area, as well as other worker-protection measures such as sick and maternity leave. Switzerland has been one of only five European nations with a minimum wage and the motion was narrowly passed by the National Council. At 23 francs an hour, the canton of Geneva has had what has often been referred to as “the world’s highest minimum wage.” Read more.
The SNB, the Bank of England, the European Central Bank and U.S. Federal Reserve all raised rates this week.
The Swiss National Bank (SNB) yesterday increased its interest rate from 0.5% to 1%. It is the third time this year the SNB has raised its benchmark interest rate to counter “increased inflationary pressure and a further spread of inflation.” The increase reflects Switzerland’s rising inflation rate (currently at 3%), but it remains well within the SNB’s target of 0-2%. The European Central Bank, the Bank of England and the U.S. Federal Reserve this week all raised rates by 0.5% The hike brings Swiss interest rates to their highest level since the global recession in 2008. “It cannot be ruled out that additional rises in the SNB policy rate will be necessary to ensure price stability over the medium term,” the bank said, adding that is will “be active in the foreign exchange market as necessary” to prevent the Swiss franc from appreciating too much. Read more.
Switzerland’s adherence to its neutral War Materials Act has come been criticized by foreign papers.
The international media has become increasingly critical of Switzerland’s political neutrality in relation to the Ukrainian war, according to Presence Switzerland. The foreign ministry agency researched headlines related to Switzerland that have been published throughout 2022. They announced their findings this week. Switzerland’s decision to not break its War Materials Act and send ammunition to Germany has been particularly criticized in foreign papers. “Neutrality was associated more strongly with Switzerland than in previous years, with responses tending to be more critical,” said Presence Switzerland on Thursday. That said, Switzerland’s public perception is still more favorable than 18 other European countries. “Switzerland’s landscape, traditional products such as chocolate, cheese and watches, its financial services sector, a strong and stable economy, wealth and a high standard of living featured highly in people’s responses,” the agency. Read more.
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