Beat Wittmann: «Stop Sleepwalking, Switzerland»
Credit Suisse’s collapse was our wake-up call – and we hit the snooze button. The time to lead is now, before the next shock arrives, Beat Wittmann writes in his op-ed for finews.asia.
We are a wealthy, talented, globally exposed nation still pretending that neutrality and past success are shields against a world that has moved on. They are not.
If Switzerland wants to remain prosperous and sovereign, it must shed its myths, abandon complacency, and act with the urgency of a nation that knows the next shock is already on its way.
1. A National Strategy for National Challenges
Switzerland lacks a coherent strategy to safeguard competitiveness in a world shaped by hostile geopolitics and rapid transformation. We must break down the silos between politics, business, academia, and society.
The US excels by fusing finance, technology, and entrepreneurial drive. China’s 2015–2025 industrial masterplan shows what vision and execution can achieve. Switzerland must unite its strengths – government, research, and industry – into a single, coordinated effort to secure long-term prosperity, sovereignty, and global relevance.
2. Unpredictable US Relations: The New Normal
If Trump’s approach to Switzerland seems harsh, remember how his administration treated Canada – its closest ally. Trump respects only China as a peer. Under his leadership, US policy is transactional; deals are not treaties.
Switzerland’s wealth and neutrality make it an easy target. We must invest in consistent, strategic engagement not only with the US but – crucially – with the EU, our largest and most reliable partner.
3. Swiss Realpolitik Over Swiss Exceptionalism
Switzerland is small, successful, and globally exposed. It must accept its position as a policy-taker among the superpowers – the US, EU, and China. The myth of Swiss exceptionalism has expired.
Nationalists and isolationists offer outdated solutions. Pragmatic alignment with geopolitical realities must define our foreign policy.
4. Learning from Success – and Failure
Singapore proves what discipline, unity, and execution can achieve. Post-Brexit Britain’s failed «Singapore-on-Thames» experiment proves what happens when slogans replace strategy.
Switzerland must focus on growth rooted in realism, international integration, and competitive excellence – not illusions of self-contained uniqueness.
5. Championing Export Competitiveness
With a world-class industrial base and leading research institutions like ETH and EPFL, Switzerland has the means to regain its position as a prime business location for multinationals and SMEs.
The government must lead structural reforms to restore entrepreneurial competitiveness while safeguarding the prestige of the Swiss brand – built on trustworthiness and shared values with democratic, rules-based partners like the EU.
6. Unlocking Domestic Growth
Switzerland’s economy operates below its potential, hindered by overprotection and vested interests. Reforms must cut subsidies, break cartels, deregulate markets, and lower taxes.
Growth demands investment in digital infrastructure, science, transport, energy, and security. Productivity will not come from protecting rent-seekers – it will come from opening the economy to competition and innovation.
7. Rebuilding Defense and Security
National security is a constitutional obligation, yet Swiss defense is in a state of neglect. A bold move: commit 5 percent of GDP to security – 3.5 percent for the military, 1.5 percent for infrastructure – financed through Swiss Federal defense bonds.
Remove counterproductive export restrictions on defense and dual-use goods. Neutrality without a credible defense is an empty promise.
8. Investing for Growth: Infrastructure and Technology
The debt-brake, once prudent, has hardened into a dogma that chokes investment. Like Germany, Switzerland must adapt fiscal rules to changing realities.
Investments in defense, infrastructure, and technology carry high economic multipliers and send a clear signal to the EU, US, and NATO – Switzerland is committed to shared opportunities and responsibilities.
9. Preparing for US Protectionism
The risks are clear: Trump could label Switzerland a currency manipulator or slap tariffs on pharma. These threats are political, economic, and financial.
We must prepare now – diversify trade partners, strengthen competitiveness, and reinforce resilience – so that when pressure comes, Switzerland can withstand the storm.
10. The Time to Lead is Now
Switzerland has the talent, resources, and credibility to thrive in a harsher world. What it lacks is a unified strategy, political will, and the courage to move from comfortable reaction to decisive action. The time to lead is now – before the next shock arrives.
Beat Wittmann is the co-founder, partner, and chairman of Porta Advisors. The Swiss-based company was established in 2015 as an independent corporate advisory firm with an international scope, providing advisory services to financial institutions, family offices, and corporates. He also serves as Deputy Chairman of Solutio, a private markets investment firm based in Munich, Germany. He spent most of his earlier banking career at UBS Asset Management Zurich, before serving as CIO and CEO of Investment Products at Clariden Leu (a Credit Suisse Group company), followed by his role as CEO of Investment Products and member of the Executive Board at Bank Julius Baer. He graduated from the University of Basel (Switzerland) and holds an MSc in Economics.
