GENEVA, Dec 22: Switzerland’s emotional bond to the Swiss franc will keep the euro at bay despite being surrounded by nations that start using the single European currency on January 1.
A new poll published by the Swiss weekly magazine Facts this week showed two thirds of the Swiss felt a sense of pride in their franc, a factor likely to dampen the hopes of so-called ‘Euroturbos’.
Despite being in the heart of Europe, this small, neutral, wealthy, alpine nation is not a member of the 15-nation EU and will continue to use the Swiss franc after January 1.
Three EU countries, Britain, Denmark, and Sweden, also do not belong to the 12-nation euro zone, home to some 304 million people.
Swiss voters roundly rejected a referendum in March for the government to start entry negotiations into the EU and the government says the issue is now likely off the table until at least 2007.
It would be unthinkable today to take the franc away from the Swiss. We embody the franc and it embodies Switzerland, Ursula Haller, a member of the right-wing, populist People’s Party in the Swiss lower house of parliament, told Facts magazine.
However, the choice of isolation has not prevented the Swiss facing up to the reality of the euro and the nation has been gearing up for some time for its introduction abroad, and its impact on Switzerland.
Swiss trade is dominated by its EU neighbours with more than 50 per cent of Swiss exports going into the euro zone, while 70 per cent of imports come from the 12 countries embracing the new currency.
For Swiss industry, the euro heralds great practical benefits in only having to deal with a single foreign currency instead of 12 different ones, and many companies have already been invoicing in euros.
Swiss tourism is also set for the euro. About 75 per cent of foreign visitors to Switzerland come from the euro zone, and the new currency is likely to be a prominent one for tourism.
But members of the tourist industry say accepting euro banknotes and coins will not be a big jump as customers can already settle bills in US dollars, French francs, German marks or several other currencies in many parts of Switzerland.
In a survey conducted among 1,000 people by GfM institute for Facts, 77 per cent of those asked said they believed Switzerland still needed the Swiss franc, while only 15 per cent disagreed.
German-speaking Swiss stand more loyally by the franc than their French-speaking compatriots who are traditionally more open to Europe.
Two-thirds of the German speakers said they were proud of the franc while 23 per cent said they were not.—AFP