Switzerland Rejects Both Projects in Voting

Twice No

                In the national voting Swiss decided on two proposals that, if implemented, could have impacted heavily the Swiss National Bank’s investment policy and seriously changed the situation of global corporations, that often choose Switzerland due to low taxes and light regulations. Swiss were voting on the Responsible Business Initiative, a measure that would require multinational corporations to be held responsible for any human rights, environmental lapses abroad. The second proposal was to ban investments in defence companies that have more than 5% of revenues from sales of war materials. Both projects were opposed – the ban on investment in defence companies by 60%, only four of cantons were in favour for the proposal made by the left-wing party. Projects were backed by activists but opposed by the government that argued both ideas could have caused damage to the country’s economy. Also, multination corporations were deeply against the RBI.

Comments After Results

                After results came in, activists and lawmakers that were in favour of it, expressed disappointment, including Mattea Mayer, who supported the RBI, and Nadia Kuhn of the pacifist group supporting the ban to invest in defence companies. Kuhn said that the case was lost cause opponents had more financial resources for campaigns before voting, and that they used misleading arguments. Economics Minister Guy Parmelin, while acknowledging the concerns of groups that triggered initiatives, stated the result was respectable and the government is committed to “peace sustainable investment policies”. According to him voters decided not to give more burden to Swiss business, already heavily impacted by lockdown, the pandemic of COVID-19 and very good exchange rate of Swiss Franc. The relief was expressed by Stefan Brupbacher, director of machine industry group Swissmem, who was satisfied a project, that would have damaged the Swiss economy and labour markets, was vetoed.

Relief for the SNB

                Also, the Swiss National Bank can be relieved that a veto on the project proposing ban on investments in defence companies. The SNB’s policy covers keeping at bay the exchange rate of CHF and inflation close to the goal by, among others, making investments in stocks, currencies. The introduction of the ban would mean that the SNB had to get rid of stock worth almost 20 billion francs (around 22 billion US dollars as per average exchange rate), out of it enormous 870 billion francs-worth reserves, collected in last decade of interventions on foreign markets. The SNB buy euros and other currencies or stocks denominated in them to stop CHF from getting overvalued. The news is also good for the pension and investments funds, that sometimes provide equity or debt financing for companies having more than 5% of revenues from sales of arms. The official comment from the SNB policy makers after voting was that: “The SNB can continue to pursue its tried-and-tested investment policy.”