New price controller enters the fray

Economic expert, Rudolf Strahm, has been named Switzerland's new price controller Keystone Archive

The government has named Switzerland's new price controller more than three months after Werner Marti announced that he was stepping down from the post.

Rudolf Strahm of the centre-left Social Democratic Party is taking over at a time when businesses and rightwing groups are calling for the post to be scrapped.

The 60-year-old parliamentarian will take over from Marti, who has been the watchdog’s boss for eight years, on August 1 this year.

The Swiss price watchdog – the only such organisation in a European country – has recently come under fire for preventing the market from being fully liberalised. Strahm says his appointment is a positive sign for the organisation.

“The government has shown that it wants to do something about the high prices in Switzerland,” he said.

Earlier this month the government proposed integrating the price watchdog, which was set up in 1986, into Switzerland’s Competition Commission.

“I promise that I will not cause conflict between the two organisations,” Strahm added.

Strahm, an economic expert, has been a member of parliament and the president of the tenants’ association in German-speaking Switzerland for 13 years.

Resignation

In January, Marti quit the post of price controller to join the race for the leadership of the Social Democrats.

His resignation came as the rightwing Swiss People’s Party launched a people’s initiative to scrap the government office.

The price controller is a coveted post in Switzerland and is a springboard to bigger things. Marti’s predecessor was the current Swiss president, Joseph Deiss.

The first ever price controller, Leo Schürmann, later went on to be vice president of the Swiss National Bank and head of the Swiss Broadcasting Corporation.

The price controller is responsible for those sectors of the economy with limited or no competition.

Although the watchdog has scored a number of victories, such as blocking an increase in the price of fixed-line telephone connections, Swiss consumers still have to pay a high price for goods, estimated at between 25 and 40 per cent above the European average.

swissinfo with agencies

Key facts

Prices in Switzerland are between 20 and 40% higher than the European average.
Rudolf Strahm has been chosen from 29 candidates who applied for the post.
The economics ministry said it chose Strahm for his strong economic background and his knowledge of competition policies.
Werner Marti resigned as price watchdog after eight years to run for leader of the Social Democrat Party.