🔬 Switzerland Has 26 Labs.
Brussels Has One Opinion. Federalism isn't a quirk. It's a pressure system.
There’s a trick that politicians love, everywhere but especially in large centralized states. When something doesn’t work, they call it structural. Systemic. A challenge of our time. What they mean is: unsolvable, so stop asking. The beauty of Switzerland’s political architecture is that it makes this move almost impossible to pull off. Because the commune next door already solved it.
This is the underrated function of Swiss federalism. Not the cute stuff about direct democracy and William Tell, but the actual mechanical pressure it creates on local governance. If your Gemeinde has a pothole problem for three years and the neighboring one fixed it in six months, you don’t have a structural challenge. You have a management failure. And if the tax rate is worse AND the potholes are still there, people leave. They actually leave. Swiss municipalities know this. The theoretical possibility of losing taxpayers to a better-run neighbor is one of the most effective accountability mechanisms in European governance, and nobody writes essays about it because it’s boring and it works, which is a combination that tends to get ignored.
(There’s a version of this argument that becomes libertarian fantasy quite fast, so let me be clear: I’m not saying competition between communes solves everything. Some problems require scale. Externalities are real. But the basic intellectual obligation to acknowledge that if Lausanne fixed it, Geneva can’t call it unfixable is genuinely useful. And it’s completely absent from how Brussels thinks about, well, anything.)
Here’s the thing that should embarrass Switzerland slightly: La Poste française, famously slow, famously dysfunctional, is more digitized than its Swiss counterpart. Someone actually lived in Paris and noticed this. That’s not ideology. That’s just a fact, which is uncomfortable precisely because Switzerland usually wins this kind of comparison. It means the logic cuts both ways. Comparison isn’t a tool for Swiss triumphalism. It’s a tool for honesty. The point isn’t that Switzerland is always the answer. The point is that « it can’t be done » is almost never true, and the existence of a working solution somewhere else is all the proof you need.
Switzerland runs 26 simultaneous policy experiments. Most of the time, one of them works.
Have a great week! M. Hantale 🧀
- 🇮🇷 International Law. The ICRC president urges States to apply international law principles without double standards, emphasising that their non-compliance harms global security.
- 🇺🇸 Diplomacy. Donald Trump declared in Miami that « Cuba is next », evoking the possibility of American action following interventions in Venezuela and Iran.
- 🇮🇷 Conflict. Trump waves the threat of « taking the oil in Iran » and occupying the strategic island of Kharg, as Washington deploys 3,500 additional troops to the region.
- 🇺🇸 Trade. Negotiations between Switzerland and the United States should prevent the reinstatement of 39% tariffs on exports, following the invalidation of these taxes by American courts.
- 🇨🇲 Trade. At the WTO summit in Yaoundé, Switzerland calls on members to preserve the principles of non-discrimination and transparency in the face of global economic fragmentation.
Economy & Finance
- 🇺🇸 Central bank. The Fed recorded a loss of $18.7bn in 2025, its third consecutive fiscal year in the red since the exceptional measures taken during the pandemic.
- 🇩🇪 Conjuncture. German private sector growth fell to 51.9 in March, its lowest level in three months, owing to the slowdown in services and rising costs linked to the Middle East conflict.
- 🇬🇧 Conjuncture. The OECD forecasts that the United Kingdom will suffer the largest downward revision of growth among G20 nations due to the war in the Middle East, with a forecast reduced to 0.7% for 2026.
- 🇺🇸 Credit. More than $75bn in Covid loans to American SMEs are now in recovery, as defaults multiply and proceedings become costly and complex for the US government.
- 🇫🇷 Economic outlook. INSEE has revised down its growth forecast for France to 0.2% in the first and second quarters of 2024, citing the persistent impact of inflation and geopolitical tensions.
- 🇺🇸 Employment. New jobless claims in the United States rose slightly to 210K last week, confirming a labour market that is slowing without tipping into mass layoffs.
- 🇫🇷 Industry. France and Norway have signed a memorandum of understanding to accelerate European industrial decarbonisation, with €1.6bn already committed to seven French projects.
- 🇺🇸 Inflation. The OECD forecasts American inflation at 4.2% in 2026, well above the Federal Reserve’s estimate of 2.7%, notably due to rising energy prices linked to the Middle East conflict.
- 🇺🇸 Inflation. The OECD forecasts a surge in American inflation to 4.2% in 2024, the highest in the G7, driven by the energy crisis in the Middle East.
- 🇨🇭 Markets. Swiss real estate investments generated an average return of 6.1% in 2025, driven by rising rents and property valuations.
- 🌏 Markets. Asian stock exchanges fell on Monday, with the Nikkei 225 down 4.5% and the Kospi down 4%, amid escalation of the conflict involving Iran and a surge in oil prices.
- 🇮🇷 Markets. Brent surges to $111/barrel, driven by the prospect of a prolonged war in the Gulf and restrictions on global energy flows.
- 🇪🇺 Rates. The ECB considers it premature to set a timetable for potential rate rises, despite pressure from energy prices linked to the Middle East conflict.
- 🇪🇺 Trade. The European Parliament has conditionally approved the trade agreement with the United States, removing most tariffs on American imports, whilst incorporating safeguards and a sunset clause in 2028.
- 🇿🇦 Trade. South Africa was excluded from the G7 summit in Evian, with France giving in to American pressure linked to persistent diplomatic tensions.
Switzerland
- 🇨🇭 Culture. The 2026 Grand Prix of the Fribourg International Film Festival was awarded to Iranian director Ali Asgari for his satire Divine Comedy, banned in Iran.
- 🇨🇭 Culture. A spectacular Roman cargo, containing several hundred ceramics and amphorae of Spanish olive oil, has been discovered intact at the bottom of Lake Neuchâtel.
- 🇫🇷 Culture. The Swiss Cultural Centre in Paris reopens after 4 years of renovation, inaugurating its new era with three exhibitions featuring Swiss artists from different generations.
- 🇨🇭 Energy. An analysis conducted by Axpo asserts that Switzerland will be able to guarantee its electricity supply even in winter after the closure of its nuclear power plants, provided that four priority measures are implemented.
- 🇨🇭 Health. The cantons of Zurich and Appenzell are strengthening surveillance of PFAS in milk, offering free analyses to dairy farms as the EU prepares to legislate.
- 🇨🇭 Politics. The Centre party overwhelmingly rejects the UDC initiative aimed at limiting Switzerland’s population to 10 million inhabitants, deeming the measure inappropriate and a source of chaos.
- 🇨🇭 Technology. Researchers at ETH Zurich have developed a chip capable of digitally signing images and sounds during their recording, in order to guarantee the authenticity of content against deepfakes.
- 🇨🇭 Transport. All Swiss travellers registered in the Travel Admin application have now returned to the country and none are currently stranded in the Middle East, according to the FDFA.
- 🇨🇭 Unusual. In Prilly, Claudia Castro was elected to the municipal council without ever having stood as a candidate, after signing a petition that inadvertently registered her on an FDP electoral list.
Elsewhere in the World
- 🇩🇰 Elections. The left-wing bloc comes out ahead in Denmark’s legislative elections but falls short of a majority, paving the way for uncertain negotiations to form a government.
- 🇫🇷 Justice. An investigating judge will enquire into MEP Fabrice Leggeri, former director of Frontex, for complicity in crimes against humanity and torture concerning the management of migrants at EU borders.
- 🇬🇭 Justice. Ghana is asking the UN to recognise the slave trade as « the gravest crime in the history of humanity » and is demanding reparations from former colonial powers.
- 🇲🇱 Justice. A Malian journalist has been sentenced to 2 years’ imprisonment for criticising the Niger junta, illustrating the hardening climate towards the press in the country.
- 🇫🇷 Security. An explosive attack outside Bank of America in Paris has been thwarted, with three minors arrested; the attack is linked to a wave of similar actions carried out by a pro-Iran group across several European countries.
- 🇵🇱 Security. Poland is organising free training to prepare its civilians to face war scenarios, drone attacks or power cuts.
- 🇨🇭 Banking. J. Safra Sarasin posts net profit up 3.5% to CHF 522m and record assets under management at CHF 228.5bn, confirming the strength of the Swiss banking sector.
- 🇨🇭 Food and Beverage. Nestlé reports theft of 12 tonnes of KitKat in Europe, threatening chocolate supply a week before Easter.
- 🇺🇸 M&A. Novartis acquires Californian biotech Excellergy for up to $2bn, strengthening its immunology portfolio ahead of the looming patent cliff.
- 🇨🇭 Technology. Twint secures first place for the third consecutive year in Switzerland’s ranking of best corporate reputations, confirming its strong standing with the public.
- 🇨🇭 Technology. Zurich-based start-up Pave Space raises $40M in seed funding to strengthen European space sovereignty, illustrating the appeal of Swiss deeptech sector to investors.
- 🇮🇹 Telecoms. Fastweb + Vodafone, Swisscom’s Italian subsidiary, breaks its contract with Inwit, opening a legal arm-wrestling match that threatens the already fragile balance of the Italian market.
- 🇨🇭 Transport. SWISS and Edelweiss are increasing their fuel surcharges following the surge in kerosene prices, a direct consequence of the war in Iran.
SMI Index
| Name | Price | Mkt Cap | 7d Chg | YTD |
|---|---|---|---|---|
| Roche | 322.30 | 256.43B | ▲ +6.05% | ▲ +2.05% |
| Novartis | 119.14 | 227.34B | ▲ +2.60% | ▲ +13.15% |
| Nestlé | 76.37 | 196.44B | ▲ +2.03% | ▼ -0.09% |
| ABB | 63.14 | 114.65B | ▼ -2.53% | ▲ +4.63% |
| UBS | 29.38 | 90.83B | ▼ -0.10% | ▼ -23.03% |
| Zurich Insurance | 547.80 | 81.82B | ▲ +1.97% | ▼ -8.64% |
| Swiss Re | 128.55 | 37.91B | ▲ +0.59% | ▼ -1.23% |
| Holcim | 64.94 | 35.92B | ▲ +0.93% | ▼ -16.89% |
| Swisscom | 668.00 | 34.60B | ▲ +0.65% | ▲ +19.86% |
| Lonza | 491.80 | 34.50B | ▲ +5.22% | ▼ -8.18% |
| Alcon | 59.06 | 28.79B | ▲ +1.27% | ▼ -7.05% |
| Givaudan | 2,653.00 | 24.49B | ▼ -0.11% | ▼ -12.22% |
| Swiss Life | 838.80 | 23.44B | ▲ +2.07% | ▼ -10.02% |
| Partners Group | 824.60 | 21.26B | ▲ +2.43% | ▼ -19.94% |
| Sika | 128.50 | 20.62B | ▲ +2.93% | ▼ -19.26% |
| Geberit | 532.40 | 17.56B | ▼ -0.63% | ▼ -13.57% |
| SGS | 83.82 | 16.19B | ▼ -1.25% | ▼ -9.87% |
| Straumann | 81.40 | 12.98B | ▲ +6.80% | ▼ -13.68% |
| Julius Bär | 57.38 | 11.76B | ▲ +0.81% | ▼ -12.77% |
| Logitech | 71.98 | 10.57B | ▲ +1.44% | ▼ -9.44% |
📅 Data as of 2026-03-30 08:39
Forex CHF
| Pair | Rate | 7d Chg | YTD |
|---|---|---|---|
| EUR/CHF | 0.92 | ▲ +0.91% | ▼ -1.25% |
| USD/CHF | 0.80 | ▲ +1.31% | ▲ +0.77% |
| GBP/CHF | 1.06 | ▲ +0.85% | ▼ -0.74% |
📅 Data as of 2026-03-30 08:39
The Art of Showing Up
CHF54.7B. That’s how much Switzerland shipped to the United States in 2025. A record. Up 3.9% from the prior year. And here’s the thing: this happened while Swiss exporters were staring down a 39% tariff wall, the highest Washington slapped on any advanced economy. The surplus with America? CHF41.4B, also a record. Numbers like these don’t happen by accident. They happen because Switzerland sells things the world’s largest economy cannot easily replace.
Last Friday, the US Supreme Court gutted the legal architecture behind Trump’s tariff regime. Six justices to three. The International Emergency Economic Powers Act, the 1977 law the White House had stretched into a wrecking ball for global trade, does not authorize tariffs. Period. Over $160B collected illegally. Markets rallied. Trump raged, called the majority « disloyal to the Constitution, » then signed a new 10% global tariff under a different statute before sundown. By Saturday it was 15%. Section 122 of the Trade Act of 1974, a provision designed for balance of payments emergencies, capped at 150 days. The legal scaffolding is thinner now. The instinct is not.
What happened next tells you everything about the difference between Brussels and Bern. The European Parliament froze ratification of its Turnberry trade deal. Emergency sessions. Committee chairs declaring « the situation is now more uncertain than ever. » France and Germany started discussing the Anti-Coercion Instrument, the so-called « trade bazooka » that has never been fired. The Commission issued a statement: « A deal is a deal. » Nobody on the American side appeared to be listening. Meanwhile, Chrystia Freeland, Canada’s former deputy prime minister, published an op-ed arguing that allied weakness invited Trump’s escalation. That the failure to retaliate last spring was a historic miscalculation. That Europe and its partners need to learn the art of negotiation by imitating Trump’s own playbook. Coordinated retaliation, she argued, plus a face-saving exit ramp on China. Bold. Theoretically coherent. And almost certainly too late for a 27-member bloc that took a full week to decide it needed more « clarity. »
Switzerland did something different. Not retaliation. Not capitulation. Something that requires a smaller government, faster decision loops, and the absence of an agricultural lobby in 27 countries. It negotiated. When Washington hiked to 39% in August, Bern refused to retaliate and kept talking. Swiss CEOs flew to the White House. A Rolex clock and a gold bar showed up on the table. The press called it « gold bar diplomacy. » Swiss Social Democrats called it unseemly. But by November, the tariff was 15%, matched by a $200B investment pledge over five years, CHF67B of which was already in the pipeline. Swiss companies employ nearly 400,000 Americans. They pay an average salary of $130,000, the highest among the seven largest foreign investors. They spend $15B a year on R&D inside the United States. That is not a trade deficit. That is an economic relationship. And Bern made sure Washington understood the difference.
The SCOTUS ruling barely changes Switzerland’s position. The 15% framework deal already matched Trump’s new Section 122 rate. Formal negotiations in Bern are underway, with a March 31 deadline for a binding agreement. The EU, by contrast, finds itself suspended between a frozen ratification process and a president who just threatened « much higher tariffs » for anyone who tries to « play games. » Freeland is right that allied passivity was a mistake. But her prescription, a coordinated Western front built on retaliation and a shared China strategy, assumes institutional agility that the European Union has never demonstrated on trade. The EU’s countermeasure package covers €93B in retaliatory duties. Impressive on paper. But paper is where EU trade strategy tends to remain the longest. Switzerland’s approach was less cinematic. No bazookas, no emergency summits, no 400-page countermeasure regulation. Just a small country that understood what it had to offer, showed up with the numbers, and closed a deal before the legal ground shifted. Pragmatism isn’t glamorous. But it compounds.