The Swiss economy is booming, employment is close to full and the company give for the coming year is optimistic. Apart from a slight economic stagnation, Switzerland has to fear little. The Brexit, the US-Chinese trade war and the serbelnde Italy wouldn’t be there. The Chaos abroad is of the essence, the investors in the Swiss franc. As a result, the domestic currency is appreciating. to protect

the economy weakens, the Swiss national Bank (SNB), the Swiss franc, with the purchase of Euro and a negative interest rate of 0.75 percent. Of the export economy and tourism benefit. Under pressure, the financial industry and the pension funds. Now Bank economists are calling louder and louder for an end to the negative interest rates.

At the expense of the small savers

For example, Martin Neff (58), chief economist of Raiffeisen Bank. “SNB President Thomas Jordan has produced no evidence that the negative interest rates contribute to the maintenance of economic stability,” says Neff. On the contrary: “The cost of this policy, the pension funds, banks and small savers.” Negative interest rates have led to, among other things, that pension funds would have problems to generate the necessary returns to Fund the pensions. The SNB is pursuing a monetary policy in the long term, more damage than good, writes Neff.

Also, Daniel (48), chief economist at UBS in Switzerland, is critical of the SNB’s monetary policy: “Excessive real estate prices will be the direct result of the negative interest rate policy of the national Bank and the bonds are programs of other Central banks.” In the absence of attractive investment opportunities, the money flow in real estate, no one need, says Cold. The result was one of the highest vacancy rates since the 1990s. A total of about 70’000 homes in this country will be empty.

Cold says: “The SNB would dare to raise interest rates, as the Swiss franc has a year ago, against the Euro against 1.20.” However, this window of time, the SNB let go to waste. Now the funky start Waiting for the European Central Bank (ECB). Their boss, Mario Draghi (71), it was announced that interest rates remained at least through the summer of 2019 at the current level.

The long wait for the ECB

Not only in the case of Bank economists Jordans Procrastination head-shaking throws. According to Rudolf Minsch (50), chief economist of the economic umbrella organisation Economiesuisse, is the interest rate differential to the Euro, especially in economically difficult times is important to dampen the flight into the Swiss franc. But the economy, it is dazzling, negative interest rates be missed. More: “If the ECB binding interest provides steps in view, the SNB is able to act again.” An increase in interest rates before the ECB, it should then be possible, without that, the Swiss franc is pushing up against the Euro, says Minsch.

Of which Jordan is not impressed: The President has made in his assessment of the situation nearly two weeks ago, is clear that the SNB will not change its monetary policy course, as long as the ECB moves.

From the point of view of the workers is likely to be 2019, with reservations – a decent year. Thanks to the better economy, the unemployment decreases. This makes the jobs safer. And: “In various industries such as construction, there are better overall work contracts,” said Daniel Lampart (49), chief economist of the Confederation of trade unions. That means More pay, more security and better training opportunities. The problems: The pension funds are worse off. This means that Higher contributions and later still, less pension. “Because the employer increases are stingy with pay, remains less money to live on,” said Lampart. For the majority of workers, wages will rise, which in 2019 in nominal terms between 0.5 and 1.5 percent. With inflation and rising health insurance funds, the wallet is the bottom line not thicker. In the retail trade, the upturn has not arrived, however. “Because wages are rising in Switzerland, to little. And because online retailers from the foreign market to snatch away shares,” said Lampart. (zas)

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Jennifer Alvarez is an investigative journalist and is a correspondent for European Union. She is based in Zurich in Switzerland and her field of work include covering human rights violations which take place in the various countries in and outside Europe. She also reports about the political situation in European Union. She has worked with some reputed companies in Europe and is currently contributing to USA News as a freelance journalist. As someone who has a Masters’ degree in Human Rights she also delivers lectures on Intercultural Management to students of Human Rights. She is also an authority on the Arab world politics and their diversity.