Switzerland Today

Dear Swiss Abroad,

The after-effects of an eventful weekend are still being felt in Switzerland this Monday. From celebrating the national football team’s victory over Italy at Euro 2024 to assessing the damage from deadly storms in the south of the country, there is much to talk about. Let’s get to it.

But before we do, to those of you who call the Great White North home: a very Happy Canada Day!

Keystone / Valentin Flauraud

In the news: Swiss storm fatalities double to four, Credit Suisse is officially no more, Lausanne police officers back in court over death of a man in custody, and a new definition of rape comes into force

• Ticino rescue workers recovered a third body in the Maggia Valley on Sunday afternoon, bringing the death toll from a landslide triggered by heavy rainfall to three. In canton Valais, one person in Saas-Grund died as a result of floods. Another is still missing.
• Credit Suisse no longer exists as a legal entity in Switzerland, following its take-over by rival UBS. The merger was officially completed on Monday.
• Six police officers in Lausanne are appearing before the cantonal appeal court after they were acquitted last year in the death of a Nigerian man, Mike Ben Peter, in custody in 2018.
• A new definition of rape approved by parliament in 2023 comes into force today. The “no means no” principle now affords greater legal protection against non-consensual sexual acts.

Keystone

Floods in Valais and Ticino: ‘We witnessed the fury of nature’

At least three people have perished in the Maggia Valley in canton Ticino, where an intense storm from Saturday to Sunday caused a landslide. Another person in the valley remains missing.

Hotel owner Manuela Medici toldExternal link the Corriere del Ticino she woke up to the sound of alarms going off in the building and ran outside into the night: “There wasn’t much we could do,” she said. “We witnessed the fury of nature.”

Six hamlets in the valley still had no electricity or running water on Monday, news agency Keystone-SDA reported, after roads, bridges, and the power supply were destroyed. Helicopters were sent in to deliver potable water. Cantonal authorities were still to trying to assess the extent of the damage.

President Viola Amherd was on her way to visit the valley on Monday after touringExternal link canton Valais. There the mighty Rhone river and its tributaries overflowed, and this just one week after the region – and especially Zermatt – was flooded.

The resort of Saas-Grund was hit with masses of water and debris. Swiss public television SRF reporter Roger Brunner filed this description from the scene: “The village street External linkis buried metres-deep in rubble. Several houses were damaged. The picture is one of massive destruction.”

The death of a man caught in the flooded waters in a hotel has caused shock and grief among the locals, said Brunner. But residents have also shown a lot of solidarity, “pitching in where they can to clean up”, he added.

Several villages were still inaccessible by road on Monday. Mobile phone reception was also interrupted on Sunday, causing fear among inhabitants and tourists.

The army was on hand on Sunday to assist in the clean-up effort, and Amherd said more military help was being mobilised.

Keystone / Peter Klaunzer

Has the Swiss-Chinese free trade deal been good for Switzerland?

Today marks ten years since the free trade agreement between China and Switzerland came into force. To celebrate this milestone and seek even more trade benefits from its partner, Switzerland’s Economics Minister Guy Parmelin is travelling to China this week. On the agenda is a discussion on expanding the existing accord.

On paper, Switzerland is posting good figures: in 2023, it registered a record trade surplus with China amounting to CHF22 billion ($24.3 billion), Swiss public radio RTS reportsExternal link. But economics lecturer Benjamin Bürbaumer adds a caveat to this impressive number. Most of it is thanks to just one sector: the export of gold.

Taking gold out of the equation, Switzerland posts an average trade deficit of CHF2.5 billion with China, which means that trade was more balanced before the agreement came into force. This deficit could even grow, Bürbaumer warns, given that China is making advances in some sectors, such as high-tech.

By and large, the Swiss pharma and watch industries have benefited from the FTA and retain their competitive advantage. “China is our third most-important export market, president of mechanical industries association Swissmem, Martin Hirzel, toldExternal link Swiss public television SRF. “Seven percent of exports go to China. That’s a fourfold increase in 20 years.”

On the political front, there are disadvantages to having a prized FTA with China. According to University of Zurich lecturer Simona Grano, Switzerland tends to self-censor when it comes to addressing human rights violations, such as against the Uighur minority, for fear of upsetting Beijing. The more a country has close economic ties with China, she told RTS, the more it risks being put under pressure in the event of a diplomatic or political disagreement.