The expensive island is expensive, very expensive for the Swiss economy: 15 billion francs, if we extrapolate a study from the University of Applied Sciences of North-West Switzerland, directed by Professor Mathias Binswanger. His team analyzed the price differences between Switzerland and abroad, focusing on the areas of public health, gastronomy, as well as research and training. In these areas alone, companies could save 3.3 billion. This represents 280 francs a year for each consumer.
The presentation of this study owes nothing to chance. Next March 9, the National Council seized the “initiative for fair prices”, which asked Chambers to legislate “against the damaging social and economic consequences of cartels and other forms of limiting competition”. Its text also calls for non-discrimination in online commerce.
A “shocking” situation
Asked to comment on this study, the former Monsieur Prix and national councilor Rudolf Strahm recalled that the term island of high cost does not designate the general high level of costs and wages in Switzerland, but rather the inflated prices imposed by foreign exporters. compared to those practiced in their country of origin.
The study’s findings reveal no surprises. The level of the cost island remains very high. In some sectors like health, this is particularly “shocking”, to use Mathias Binswanger’s term. “The overrated prices make public health more expensive and increase the premiums,” he explains. He worked with the cantonal hospital in Winterthur, which examined the prices of more than 1,500 consumer medical goods. On average, prices in Switzerland are one third higher than in neighboring countries. For identical products, with no added value in Switzerland! The health sector could thus save some 600 million francs.
The same goes for clothing, where the savings potential amounts to 1.9 billion, body care (300 million), perfumes (150 million) and even diapers and baby food (78 million ).
Increase in shopping tourism
Faced with this unsatisfactory situation for three quarters of people according to a survey, consumers no longer hesitate to get behind the wheel of their car to cross the border. Purchasing tourism is now approaching 11 billion francs and deprives the retail sector of 30,000 jobs. But if consumers are the first to get upset, SMEs also suffer from the price block. Each year, hotels and restaurants pay over 300 million francs too much for equipment and other work tools. “The inequitable surcharges applied in Switzerland discriminate us compared to foreign competition”, deplores the president of GastroSuisse, Casimir Platzer.
The popular initiative having been successful in 2017, the ball is now in the court of parliament, starting with the National Council. Last November, its Economy and Royalties Commission (CER) amended and then approved the indirect counter-project proposed by the Federal Council. This one going in the direction of the initiative, it is not excluded that its committee decides to withdraw it. “But we have to wait for the end of parliamentary work, it is still too early to decide on this subject,” said Casimir Platzer.
Today, the initiators do not seem ready to give up the prohibition of the “geographical blocking”, – the discrimination of the Swiss in the trade on line -, to which they hold very much. The Federal Council, which claims that such a measure would be very difficult to implement in the absence of a bilateral agreement with the EU, does not want it, as does the REC of the National Council. But the composition of the lower house changed so much on October 20 that everything remains open on this important point of the initiative.
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