Radical shocks to shake Europe into action
At the dawn of a radical new world order, Europe is divided and fainthearted. This is how the award-winning journalist Jamil Anderlini, editor-in-chief of POLITICO, sees the contintent. We are losing ourselves in a 'narcissism of small differences', extreme positions – especially on the right – are gaining support, governments are collapsing. And while Europe is ailing, Xi Jinping's China is vying with the US for supremacy. Europe, too, has long been locked in a cold war with China. Switzerland, spoiled by peace, will have to act against its instincts, says Anderlini, because hard times lie ahead: 'Europe and Switzerland must prepare for a period in which they will have to fend for themselves'. Trump's re-election could be the radical shock 'to shake Europe into action'. We are facing twelve years of Trumpian MAGA America, and that means: Europe needs its own defence system and must become internationally competitive in an accelerated economic war with measures such as a banking union, a capital markets union and deregulation.

Where does Switzerland stand?
Switzerland is currently negotiating with Brussels on the modernisation and deepening of the bilateral agreements (Bilaterals III). The negotiating package is intended to update existing agreements on the Free Movement of Persons, trade facilitation, transport and agriculture, and to conclude new agreements on electricity and food safety. This is a much-needed step, says Federal Councillor Beat Jans. Entrepreneurs need easy access to the European single market and legal certainty, while the Swiss economy depends on immigration. Switzerland's success is due to alliances, not a policy of isolation, says Mr Jans.

Business challenges and opportunities
Opinions are divided when it comes to closer ties with the European Union. In the concluding panel discussion, Simon Michel, CEO of the medical technology company Ypsomed and National Councillor, and Marco Sieber, co-owner of Sieber Holding AG, discussed the ongoing negotiations and shed light on Switzerland's position in the global field. 'Those of us who have remained in Switzerland need access to the EU through these agreements,' stressed Simon Michel. As 75% of all Swiss products are regulated, an erosion of the bilateral agreements would hit a large proportion of domestic companies hard, as Michel knows from his own experience. He sees Bilateral III as the key to the long-term prosperity of the Swiss economy. On the other hand, Marco Sieber, whose company operates worldwide, argued in favour of a dynamic adoption of legislation by Switzerland. He warned against excessive bureaucracy and said that Switzerland's sovereignty was at risk: 'We should be a strong partner of the EU, but we should not lower ourselves'. As a small player, Switzerland would be better off focusing on the many global free trade agreements.

Strategies for a competitive future
Europe faces the challenge of repositioning itself economically and politically. The centrifugal forces within the Union are being countered by a commitment to shared values – and the certainty that, despite differences, we must stick together as a 'neighbourly community of shared destiny' (Jans). For Switzerland, much will depend on the outcome of the bilateral negotiations – and the referendum that will almost certainly be held as soon as an agreement is reached in Brussels. On the global stage, businesses play a key role in shaping a sustainable European economy. Together with governments, they must take responsibility and overcome differences to build a strong Europe.

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