Switzerland: Does it have to learn from Brussels to save the economy?

Switzerland: Does it have to learn from Brussels to save the economy?

Switzerland is facing significant economic challenges that are shaped by developments in neighboring countries and increasing regulation by the European Union (EU). While Switzerland is often seen as a leader and liberal in the global economy, recent analyzes show that it lags behind its European neighbors in some areas. A comprehensive 400-page report commissioned by the EU Commission highlights that Europe lags behind the US and China in cutting-edge technologies. This information comes from the analysis, which also points to declining labor productivity and bureaucratic hurdles that inhibit economic growth. NZZ reports that the Brussels bureaucracy is only responsible for part of the challenges facing neighboring countries.

An important aspect that is highlighted is the will to reform in Switzerland, which no longer seems to have existed since the 1990s. The last major liberalization steps have been taken mainly in response to the EU's actions, raising the question of whether Switzerland could learn from the EU's liberalized market structure. Critics point out that some EU countries, such as Ireland and Denmark, are able to achieve economic success despite lower corporate taxes and other challenges.

The impact of EU digital policy

In addition to the general economic challenges, Switzerland also faces specific aspects of EU digital policy. An analysis by the Interdepartmental Coordination Group for EU Digital Policy (IK-EUDP), published on February 13, 2025, shows that there are currently no immediate risks to Switzerland's access to the internal market. Nevertheless, Swiss companies must adapt to new regulations on artificial intelligence, cybersecurity and data management. These new EU regulations, including the AI ​​Act and the Cyber ​​Resilience Act, require companies to adapt their compliance strategies.

The Federal Council’s lack of its own AI legislation could be particularly problematic. The report from Häerting warns that Switzerland must take proactive measures to ensure its competitiveness. There is a need to develop your own digital strategy, which must be aligned with European standards in the area of ​​artificial intelligence and data management.

Cooperation opportunities and challenges

The challenges posed by regulatory pressure and trade barriers should not be underestimated. It is becoming essential to adapt national regulations to EU standards, particularly with regard to the agreement on the mutual recognition of conformity assessments. At the same time, there are also opportunities for cooperation with the EU, for example through participation in digital research and innovation programs. This would allow Switzerland to have a say in regulatory developments and at the same time strengthen its economic position.

In this context, it becomes clear that Switzerland should not only recognize its own deficits, but also take advantage of the opportunities offered by EU cooperation. This is the only way it can survive global competition in the future and maintain its position as an economic hub in Europe.