Switzerland Today
Dear Swiss Abroad
Today’s briefing features interviews with two prominent figures in international relations – a former ambassador and a former Swiss president – who share their insights on the development of democracy in Europe and Switzerland.
Our main story of the day, however, is one likely to continue making headlines this week: suspicions of fraud within the military technology firm RUAG MRO, a government-owned armaments company, and today’s announcement of the resignation of the Swiss army chief and the head of intelligence.
Also, are the Swiss real workaholics? Find out at the end of today’s briefing.
Sunny regards from Bern,
A former RUAG MRO executive stands accused of fraud, while the culture of the state-owned armaments company has come under scrutiny.
It’s more bad news for outgoing Defence Minister Viola Amherd, who will leave her post at the end of March. A former executive allegedly defrauded RUAG MRO through a “simple scheme” that involved purchasing materials and selling them at below-market value, enabling the buyer to make significant profits while RUAG MRO incurred losses. Notably, the accused’s wife sat on the management board of one of the implicated companies.
Swiss public television, SRF, reports that the financial impact on the government could be in the “double-digit million” range.
This fraud was not recently uncovered – a whistle-blower flagged the issue in 2019. However, the state-owned company’s internal investigation at the time concluded that everything was in order. Now, the defence ministry is facing sharp criticism from the Swiss Federal Audit Office and the Senate audit committee for failing to perform adequate supervisory duties.
The state-owned firm’s corporate culture is also under fire. Following a 2016 cyberattack, the government split the armaments division (RUAG MRO) from the space sector (RUAG International). Since then, it has had five different managing directors and three chief financial officers.
The new chair of the board of directors, Jürg Rötheli, suspects that the alleged fraud may be systematic, stating he does not believe just one employee would be able to commit fraud undetected.
The fallout continues: shortly before noon today, the Neue Zürcher Zeitung (NZZ) reported that army chief Thomas Süssli and head of the intelligence service, Christian Dussey, will be resigning.
- Read the analysis on Swiss public television, SRFExternal link (in German)
- Read the Keystone new agency news report on the suspected fraud and the resignations of the Swiss army chief and head of intelligence on SWI swissinfo.ch (in English)
- Swiss Federal Audit Office report on inventory managementExternal link, potential aspects of fraudExternal link and management and steering of RUAG MROExternal link (summary available in English)
In yesterday’s briefing, my colleague Emilie Ridard covered the German election results, highlighting the CDU/CSU’s victory and the far-right AfD’s unprecedented gains in parliament.
Former Swiss Ambassador Tim Guldimann (pictured above) spoke to the Neue Zürcher Zeitung (NZZ) about the differences in political dynamics between Switzerland and Germany, and how Friedrich Merz, the likely future chancellor, could once again bring the two nations closer.
“Switzerland is only concerned with one question: are we still loved?” Guldimann answered when asked whether bilateral relations might improve. “Perhaps Friedrich Merz, with his BlackRock background, is a little closer to Switzerland and its economy than Scholz,” added Guldimann, who holds Swiss-German dual citizenship.
However, he was quick to emphasise that politics is not governed by personal sympathies but by national interests. Guldimann noted that while Swiss Foreign Minister Ignazio Cassis once stated “neutrality and solidarity are two sides of the same coin”, the war in Ukraine has shifted Europe’s focus from neutrality to solidarity – intensifying pressure on Switzerland regarding sanctions on Russia and armaments exports.
- Read the full interview with Tim Guldimann in the Neue Zürcher Zeitung (NZZExternal link) (Paywall, in German)
Since September last year, former Swiss president Alain Berset (pictured above) has served as Secretary General of the Council of Europe. In an interview with Le Temps, he discussed the council’s role and how democracy is being affected worldwide – including in Switzerland.
Commenting on wavering US support for Ukraine, Berset reaffirmed Europe’s steadfast backing, noting that Russia’s return to European institutions remains unlikely. “The Council of Europe is not a spa or a wellness centre. When one member state attacks another and fails to meet its obligations, there must be consequences. Today, we cannot imagine a return,” Berset said.
Despite only six months in his role, Berset feels deeply aligned with the council’s mandate. “Democracy, the rule of law and human rights – it’s hard to get more Swiss than that,” he remarked.
When asked about international organisations in Geneva currently facing challenges, Berset expressed his strong support: “These organisations are key to protecting human rights, the rule of law, and democracy.”
He also warned that democracy is in retreat globally, including in Switzerland, but remained clear in his message: “Without democracy, there is no freedom.”
- Read the full interview with Alain Berset in Le TempsExternal link (Paywall, in French)
- Read a Keystone news report on Alain Berset on SWI swissinfo.ch (in English)
More
The leftwing Social Democratic Party wants to reduce Switzerland’s maximum to 38 hours – without reducing salaries.
But are the Swiss really workaholics?
In Switzerland, the average contractual working week for full-time employees ranges from 40 to 45 hours. However, these figures don’t account for part-time work, overtime or absences. Part-time employment is particularly widespread in Switzerland, 24 Heures reports.
When compared to other countries, Switzerland ranks high for working hours, averaging at 41 hours and 43 minutes. The average working week in the European Union is 38 hours and 5 minutes, with Finland recording the shortest at 36 hours and 29 minutes.
However, factoring in Switzerland’s large part-time workforce brings the average down to 35 hours and 30 minutes – below the European average.
But hours worked don’t tell the whole story. Productivity also plays a role. According to a 2024 report by the State Secretariat for Economic Affairs (SECO), Switzerland has enjoyed “high productivity and wage growth in the European context” since 1970.
The Organisation for Economic Co-operation and Development (OECD)’s global comparison of productivity – measured in gross domestic product (GDP) per hour worked – places Switzerland ($85.19 or CHF76.22) above the EU average ($67.36 or CHF60.27). For context, Colombia ranks lowest ($18.31 or CHF16.38), while Ireland tops the chart ($134.15 or CHF120.02).
- Read the full analysis on 24 Heures (Paywall, in French)or in the Tages-Anzeiger (Paywall, in German)
Picture of the day
Yesterday in Zurich, demonstrators gathered to protest the Russian invasion of Ukraine on the third anniversary of the outbreak of the war.
Listen to episode 2 of our investigative podcast ‘Lost Cells’
In the second of this six-part audio series, a couple from Serbia, Tatiana and her husband Ratko, choose a private stem cell bank in Switzerland for their daughter’s cord blood. They seek out a top US university conducting research in stem cell transplants and are offered a rare opportunity to be part of a leading-edge programme.
A private stem cell, or cord blood, bank is a facility that stores these important, foundation cells for the human body. Parents pay to bank cord blood from a baby’s birth in the hope of using the cells in a potential future medical treatment.
Why did Tatiana and Ratko choose a private stem cell bank in Switzerland? In this episode, the couple reveal why a Swiss-based bank had the advantage. For these expectant parents, freezing their baby’s cord blood was similar to an insurance policy. Their cells were safe in case they needed them for something unforeseen.
But soon they realised that making use of their cells wasn’t going to be quite so straightforward as simply filing a claim.
How does it feel to experience first-hand the promises and failures of a private stem cell bank in Switzerland? Find out in episode two of SWI swissinfo.ch’s new podcast, ‘Lost Cells’.
Listen and subscribe to ‘Lost Cells’ wherever you get your podcasts, including Apple PodcastsExternal link, SpotifyExternal link, YouTubeExternal link and Amazon musicExternal link.
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