I am living in France 1 minute from the Swiss border, but I can tell you that during the last few months the supermarkets here had five times their usual clientele, because of the Swiss doing their shopping massively in France. I am pretty sure that for the retail sector in Switzerland (in this case Geneva) the strong CHF must have been a nightmare. So there must have been tremendous pressure on the SNB as well as from the exporters.
The Swiss have a few tough choices to make. Either integrate in Europe and get rid of their safe have satus, or remain an island in Europe and maintain their safe haven status. For the time being the opt for the latter.
I doubt whether the Swiss is strong because of internal structural economic strength. I think the economy is strong because of their safe haven/island status and the trendous benefits that brings in and that once they would give that up, they would be at level with surrounding countries in Europe. If I look at the fees and comissions the UBS charges in Switzerland, those are absolutely abusive for European standards, but because of their safe haven status they get away with it. That would end the moment they integrate in Europe and that would alswo end their economic strength.
