Germany’s distress: Switzerland needs the sick man of Europe to recover
13 May 2024

Germany’s distress: Switzerland needs the sick man of Europe to recover

As the German economic miracle gives way to stagnation and a real estate crisis, can Switzerland remain immune to the challenges facing its giant neighbour?

Swiss success in Europe has long depended on economic success in Germany, which arguably remains Switzerland’s most important economic and political partner. Critical to this close exchange is market access granted by the myriad bilateral treaties between the EU and Switzerland in selected sectors of mutual interest. But problems over the German border are causing Swiss alarm bells to ring. “We heavily depend on the economic relationship (with Europe), especially with Germany – there is an impact,” says Patrik Peyer, co-head of NKF’s corporate and M&A team.

“Switzerland is still working on its difficult relationship with the EU,” explains Daniel Hayek, managing partner of Prager Dreifuss. “Given the importance of Swiss exports to the EU (72%) and to Germany (52%), this relationship is crucial.” Christian Oetiker, his counterpart at Vischer, adds: “Our ties to Germany are very close. It’s usually an inbound market. A cooling off in Germany is an issue for the Swiss economy.”

 

Related News

May 2024 News

Switzerland: Still resilient and reliable?

Like the country in which they operate, Swiss law firms seem immune to adversity beyond their borders. So, how do they do they manage it?

May 2024 News

A feast for litigators: Fallout from the UBS-Credit Suisse merger

As AT1 bondholders use “the world’s best, most expensive lawyers” to take on the Swiss financial regulator, what lessons does the Swiss bank merger provide?

May 2024 News

Swiss regulation: The privacy vs transparency debate rages on

New data protection law and anti-money laundering proposals that impact law firms’ privacy – how is Switzerland managing to square the circle?

February 2024 News

Diversity: The way we were

What is diversity? Despite a multiplicity of available definitions, there is no straightforward answer to this apparently simple question. Indeed, the 5.6 billion results provided by a quick Google search of the word shows that diversity ranks midway between comparable searches for the word God (6.6 billion) and religion (4.6 billion).