As the energy crisis threatens Europe, the head of federal economic policy, Eric Scheidegger, believes that economic aid is ‘neither necessary nor useful’. Switzerland is relatively spared compared to other countries.
The Swiss economy is developing well, even following the start of the war in Ukraine, declared the deputy director of the State Secretariat for Economic Affairs (Seco) and head of the Directorate for Economic Policy in an interview with German weekly SonntagsZeitung.
According to him, the Swiss economy is less sensitive to high energy prices than elsewhere in Europe. “I’m not saying we won’t have a problem, but we are much better placed,” he said.
In addition, the risk of a power shortage has been known since the spring. Companies therefore have more time to see ahead, not like during the Covid-19 crisis, he added.
‘Island of bliss’
With regard to inflation, Scheidegger also believes that Switzerland is on the right track: at 3.4%, it is much lower than in other countries. “Compared to 9% in the United States, we live on an island of bliss,” he commented while warning that inflation should fall once more from the fall.
Aware that the situation might however be difficult for low-income households, Eric Scheidegger, advocates targeted measures rather than the watering can principle. The amount of subsidies for health insurance premiums might, for example, be temporarily increased, as might AVS pensions and supplementary benefits.
For its part, the Swiss Trade Union (USS) had expressed concern regarding the loss of income that inflation will cause and had called for “urgent salary increases” on Wednesday.
The recession will not be for this year, according to Mr. Scheidegger. But the economic forecasts for next year may have to be revised downwards.
/ATS
