Categories: Market

The crisis seems bigger than it is

A rushed string of bad news can paint a threatening picture, especially for young people. But: “Economically, we’re still doing very well,” Strahm said. He attributes this to an almost historically low level of unemployment and moderate inflation of three percent.

However, Switzerland faces an economic turning point: High energy prices and economic problems in major economic regions of the world will likely lead to a recession or mild recession in this country as well. But according to Strahm, a recession can be avoided if the Swiss National Bank (SNB) reacts correctly. You should no longer drastically increase interest rates. “I hope it doesn’t succumb to pressure from the financial sector, which is pushing higher interest rates for its own benefit.”

Strahm sees the liberalization of the electricity market as a failure: “The liberalization of the electricity market, often by speculative futures, has done great harm.” Other European countries have also realized that energy supply can no longer be left to the market. “The federal government should make the big electricity suppliers more responsible,” Strahm says. “Your task should be primarily to generate electricity for domestic supply, period.”

Strahm said it’s not ideal to let companies go back to basic services. « Economically, however, we cannot afford to leave SMEs to their fate. Switzerland as a whole would suffer if the government did not intervene in the regulations.” However, they should not be subject to the same tariffs as private households to prevent private individuals from paying the bill.

(SDA)

Source :Blick

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