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Economic news
23.12.2024

Swiss businesses applaud new EU trade deal, boosting economic stability

Swiss businesses welcomed a landmark trade agreement with the European Union, offering a timely boost to an economy poised to outperform its European neighbors in 2025. The deal, announced on Friday, promises long-term stability for Swiss-EU relations, though it faces hurdles, including a potential referendum.

The agreement secures market access to the EU, reinforcing trade links essential to the nation’s economic foundation. "Market access is crucial; European trade underpins the Swiss economy," said Samad Sarferaz of ETH Zurich’s KOF Economic Institute. While immediate benefits may be limited, long-term gains are expected.

Switzerland’s economic resilience stands out, with UBS forecasting 1.3% growth for 2025, compared to 0.6% for Germany and 0.9% for France and the eurozone. Without the deal, Sarferaz warned of significant trade disruptions.

The agreement aligns regulations, grants access to EU research programs, and facilitates labor mobility, safeguarding Swiss interests with limits on mass migration. This is vital for Switzerland’s pharmaceutical industry, which accounts for over half of national goods exports. Interpharma spokesman Georg Daerendinger highlighted the sector’s need for top talent and research access.

Roche welcomed the deal, citing increased legal and operational certainty. Without updated mutual recognition agreements (MRAs) with the EU, pharmaceutical exports could face higher costs.

Economiesuisse chief economist Rudolf Minsch praised the deal’s stabilizing effect amid global instability, trade tensions, and a strong Swiss franc, which has pressured exporters.

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