Switzerland Today

Dear Swiss Abroad,

Happy Monday from Bern!

As winter approaches and those of us in colder regions start turning up the heating, electricity is once again in the spotlight. Many Swiss cantons are seizing the opportunity to take back control of hydropower plants as concessions expire. Could this mark a turning point for energy companies?

Also in today’s briefing, Swiss authorities urge Ukrainian refugees to “get a job”, while the head of Watches and Jewellery at Chanel reflects on the state of the luxury market and cautions against rushing trends.

Lastly, a promising development in cross-border transport between Switzerland and Italy may improve convenience for travellers. The simple solution may surprise you.

Wishing you a great start to the week!

Keystone / Gian Ehrenzeller

Hydropower takeback: cantons reclaim control as concessions expire

In Switzerland, many hydropower concessions will expire over the next two decades, each lasting between 40 and 80 years. While energy companies have long managed dams and the power they generate, cantons and municipalities have benefitted from water fees.

Upon expiry, control and responsibility for dams, tunnels and turbines may revert to cantonal or municipal ownership, reports Swiss newspaper Neue Zürcher Zeitung (NZZ). Canton Graubünden, for instance, plans to reclaim control over a majority of its power plants. In canton Valais, legislation requires that 60% of hydroelectric production revert to cantonal ownership, with municipalities free to sell the remaining 40%.

“This move is intended to keep a larger portion of the added
value within Graubünden,” says Carmelia Maissen, member of the Graubünden cantonal government.

Electricity companies could face significant losses. In the Surselva’s valley, canton Graubünden, the 80-year concession for the Pintrun power plant expires this November. Instead of complete municipal control, Trin will hold a 70% stake, Graubünden 10% and the Aargau-based energy company Axpo 20%.

The future of Swiss hydropower remains dynamic. While cantons reclaim control, private expertise in operations and maintenance will still be vital.

• Read the full Neue Zürcher Zeitung (NZZ)External link article (in German)

Keystone / Peter Klaunzer

Swiss government urges Ukrainian refugees to enter the workforce

In September, the Swiss federal government announced new measures to encourage Ukrainian refugees to join the workforce. It warned that social benefits could be reduced for those who do not participate in integration programmes, such as language courses. Initially, the directive did not specifically apply to refugees with special S protection status; however, the government is now looking to clarify this.

Federal authorities are keen for cantonal administrations to apply tougher policies to encourage employment among Ukrainian refugees, who have one of the lowest employment rates in Europe at under a third. In Denmark, by comparison, 60% of refugees are employed, reports 24 heures newspaper.

The proposed measure would reduce benefits by 15% for individuals not engaged in integration programmes, with the aim of reaching 40% employment among Ukrainian refugees by the end of the year. This goal supports a broader government objective of cutting asylum spending by CHF700 million ($808 million) by 2028.

Adrian Gerber, head of the Ukrainian employment department, calls on Swiss employers to hire more Ukrainian candidates, stating that “Switzerland expects [Ukrainian refugees] to look for a job”.

• Read the full article in 24 heuresExternal link newspaper (in French)

Keystone / Christian Beutler

Chanel’s head of watches on the future of luxury: ‘slow down and resist the rush’

In an interview with Le Temps newspaper, Frédéric Grangié, president of Watches and Jewellery at Chanel, discusses the factors he believes are driving a crisis in the luxury sector: geopolitics, the economic climate and a phenomenon he dubs “luxury fatigue”.

Luxury fatigue, according to Grangié, occurs when customers begin to question the meaning of luxury, feeling increasingly overwhelmed by high-end products. He anticipates a challenging few years ahead, not only for the luxury industry but more broadly.

Grangié advises a more cautious approach to market trends, suggesting the luxury sector needs to plan for the long term, with a view to sustainability and meaning. He stresses the value of in-store human interaction over e-commerce, asserting that “human contact must be at the heart of sales”.

Switzerland, he adds, will continue to be central to Chanel’s watchmaking ambitions, albeit with a focus on fewer partnerships.

• Read the full interview on Le TempsExternal link (in French)

Keystone / Ti-Press/Elia Bianchi

Swiss-Italian public transport set to improve with new cross-border bus routes

Public transport between canton Ticino and Italy is set to improve, following a new agreement between Switzerland and Italy that will lift the so-called “cabotage ban,” a ban on external continental coach services within Switzerland.

Since 2019, passenger numbers on cross-border public transport have more than doubled, though current train options are less than ideal, with travellers often facing lengthy waits at the border.

The new arrangement will allow bus services to operate further into each other’s territory, creating extended and simplified routes that let passengers board and alight freely along cross-border routes.

• Listen to the Swiss public radio, SRF, podcast episodeExternal link (in German)

Keystone / Til Buergy

Picture of the day

Pictured above is a participant of the CYBATHLON, a non-profit initiative by federal technology institute ETH Zurich. The CYBATHLON serves as a global platform that inspires teams to create assistive technologies for everyday use, developed with and for people with disabilities.

This year, two new disciplines have been added to the original six: a race featuring smart visual assistance technologies for those with severe visual impairment and a race using robotic assistance for individuals with severe impairment of both upper and lower limbs.

The CYBATHLON took place in Kloten, near Zurich, between October 25 to 27, 2024. Some 6,000 spectators attended the event and 15,500 people followed the competitions virtually.