Back in 1992 the Swiss people voted to stay out of the European Economic Area, a precursor to joining the EU. With continued prosperity in Switzerland, despite near financial meltdown in many EU countries, many Swiss believe that they took the right decision to stay out of the EU.
Stefan Meierhans, from Switzerland's price monitoring office, explains, "We have got high wages by European standards, and low interest rates and mortgages." He went on to add that the VAT rate in the country is only 7.6 per cent, compared to the EU minimum of 15 per cent.
A further reason for the Swiss to count their blessings at present is that the Swiss currency has become a safe haven in the last year as the Euro has weakened. This means that imports to Switzerland from Euro countries are falling in price so goods are effectively cheaper for the Swiss consumer.
In addition, it is illegal in Switzerland for both the federal and local governments to run up budget deficits, so the country’s finances are in much better shape than many of their neighbours.
The downside of a strong Swiss franc, of course, is that Swiss exports to EU countries will become more expensive. The Swiss National Bank has opted to buy euros in a bid to stop the franc from strengthening too much, a decision that has been welcomed by bosses in the Swiss manufacturing industry.
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