Business and the economy

What current challenges in the Swiss economy will be felt most over the coming three months?

Switzerland has to recalibrate its position in the world – economically, but also overall as a country. From an economic perspective, the focus is on our relations with the European Union, with whom negotiations have been ongoing since March. The negotiations got off to a difficult start. Not least because Switzerland – with good intentions – communicated its goals transparently from the outset, which brought a broad spectrum of doubters onto the scene. Key constructive forces have now become involved in the debate, including both important associations and the cantons. To clarify our relationship with the EU and minimise uncertainty with regard to the economic conditions, it is definitely important for the people to be able to vote on a specific agreement soon. The result of such a referendum must then be accepted with no ifs or buts.

However, the process of strengthening the economy will also include other agreements, such as the free trade agreement that has been signed with India and the one that is being targeted with the United Kingdom.

Furthermore, we as a country must consistently reform key areas of the economy and society. The pressure to cut costs should actually help us to stop just managing problems and begin adopting specific solutions as a matter of urgency. These must also be sustainable from a financial perspective, however. Setting clear priorities is therefore unavoidable.

In terms of international relations, Switzerland must think carefully about how it is going to position itself in the new geopolitical landscape that is emerging. Key considerations in this regard are the policy of neutrality, our relationship with NATO, the EU, the US and China respectively the BRICS countries, and our policy on sanctions. Bearing in mind our economy’s heavy dependence on exports, a clear and far-sighted approach is required here. We need answers that take into account the new political power relationships that are emerging.

What is the main priority for Deloitte Switzerland in the coming months?

Having concluded another, very successful financial year, we will continue focusing a lot on the continuous training and career development of our employees over the coming months. With this in mind, we recently opened the Deloitte University in Paris – a wonderful, inspiring training institution that is available to our employees.

We pass on knowledge about artificial intelligence, sustainability and a wide variety of sector- and service-specific topics using a whole range of training formats, from learning initiatives lasting several weeks to day-long workshops and events to classic brown bag sessions. Such activities promote not only specialist expertise but also collaboration across departments and mutual understanding within our company.

Deeply impressed

Which recent development have you been most impressed or preoccupied with?

The impressive performance of Switzerland’s football team. They have some good individual players who were given the freedom to express themselves, but success as a team was always the main priority. The team showed optimism, enthusiasm, momentum, courage and consistency. This is the attitude we need to adopt as a country as well.

Either/or

And briefly: would you rather watch EURO 2024 in a fan zone, at your friend’s place or at home in front of your own TV?

In front of my own TV. Then I can relax and let myself go even more.

Business and the economy

What challenges in the Swiss economy will be felt most over the coming three months?

Undoubtedly the developments in the area of generative artificial intelligence (GenAI). Although it presents a massive opportunity for Switzerland, it also poses a major challenge. Unlike other trends such as the metaverse, GenAI will bring about fundamental changes that all industries will be affected by. More or less every company – the government included! – will need to train their staff to ensure safe and secure use of AI at all times, review all their processes and adapt their business models accordingly. But this also opens up many new business opportunities, as well as the potential for increasing efficiency and the capacity for innovation.

I am very optimistic where GenAI is concerned. Switzerland has some proven strengths in the tech and software sector and is also highly competitive in other industries, including pharma, luxury goods, machinery, electrical engineering and finance. We will therefore be in a position to benefit handsomely from GenAI. I am convinced it will become a key driver of innovation.

What is the main priority for Deloitte Switzerland in the coming months?

GenAI is also top of the agenda for us as a company. We are currently scoping out all the possibilities that this technology offers, both for our clients and for ourselves internally. We are already using innovative tools such as the ChatGPT equivalent ‘PairD’, which is supporting our staff with their day-to-day work. To teach people more about generative AI and encourage greater use of it, we are putting on a large number of courses and organising a dedicated ‘GenAI week’ featuring various events. This initiative is about showcasing all the potential that GenAI has to offer. We want to keep our clients as well as ourselves up to date at all times.

We are therefore working closely with many other national companies to devise solutions that will enable us to create added value across borders. At the moment, we are drawing up key criteria for using GenAI in various business divisions and for various services. We want to harness the power of GenAI to make ourselves more efficient without neglecting our ethical responsibilities.

Deeply impressed

Which recent development have you been most impressed or preoccupied with?

I had spoken out in public against the initiative because it would put a massive strain on the public purse. As a democrat, it goes without saying that I accept the clear result of the vote. However, we need to make sure that we implement the new constitutional obligation in a financially sustainable way. It is something we owe society, particularly the younger generation. Otherwise, we risk breaching the intergenerational contract, which has proved robust up to this point – this must be avoided at all costs.

The coming months will reveal whether we can find a viable compromise that achieves this mission.

Either/or

An espresso in the square or a trek in the mountains – what do you prefer?

A fragrant espresso in the square while enjoying the sunshine in the company of my friends.

Business and the economy

What current challenges in the Swiss economy will be felt most over the coming three months?

A look at our client portfolio and an analysis of the latest economic data indicate a downturn in domestic demand. At the same time, conditions are becoming more and more difficult in key export markets, especially Germany and the US. Germany is facing challenges in its energy and automotive industries, as well as significant debt and the growing burden of upholding its former status as Europe’s ‘growth engine’. Meanwhile, the deep social and geopolitical divide in the US is not just impacting the country’s political landscape but its economy as well. These factors are hampering its ability to reform and undermining its leading global position.

This is worrying news to start the New Year with, given how important these two export markets are for small and medium-sized enterprises (SMEs) and large corporations in Switzerland. And the situation is being exacerbated by persistently high – albeit falling – inflation in almost all export markets, coupled with a strong Swiss franc.

What is the main priority for Deloitte Switzerland in the coming months?

Sustainability will again be one of our top priorities this year, both internally and in our consulting activities for clients. This is because, from 1 January onwards, the provisions of the Swiss Ordinance on Climate Disclosures will apply to all public companies that meet certain size criteria.

In line with the recommendations by the Task Force on Climate-Related Financial Disclosures, the ordinance requires businesses to publish detailed reports of their climate-related information on governance, strategy, risk management and key performance indicators (KPIs).

Some Swiss companies will even have to align themselves with the EU’s Corporate Sustainability Reporting Directive, which is much broader still and encompasses disclosures on biodiversity, pollution, the circular economy, water and marine resources, own workforce, affected companies and corporate conduct.

Many businesses will have to spend a great deal of time, money and effort implementing these requirements in compliance with the law.

Deeply impressed

Which recent development have you been most impressed or preoccupied with?

The Federal Council elections on 13 December. In what was a socially and geopolitically charged atmosphere, the Swiss Parliament sent out a clear signal. It showed that, despite being unspectacular (boring even, some might say), Switzerland’s political system is as reliable as a Swiss watch. A short primary election campaign, mainly in small groups, a few rounds of voting to fill the seven seats on the Federal Council, and then no time for the newly elected representatives to think it over and no long-winded hunting for coalition partners like you see in other countries. And the country’s four largest political parties are still in government, which helps maintain stability in Switzerland and thus legal certainty and investor confidence as well.

Either/or

And briefly: Fondue or raclette?

Definitely raclette. It means the cosy get-togethers and lively chats can go on for even longer!

Business and the economy

Deeply impressed

Which recent development have you been most impressed or preoccupied with?

Narges Mohammadi from Iran being awarded the Nobel Peace Prize. This amazing woman has been fighting for human rights in her country for decades now, suffering huge personal losses in the process. I admire the courage she has shown, particularly in campaigning for the abolition of the death penalty and for upholding the rights of women and girls.

Either/or

And briefly: Halloween or Santa?

I like both, really. But because my three children are now too old for Father Christmas, Halloween – with lots of pumpkin pie – is a bit more 'on trend'.

Business and the economy

What current challenges in the Swiss economy will be felt most over the coming three months?

The economic data suggests that Switzerland will see average growth this year. Major drivers of the economy are the strong domestic consumption and the flourishing labour market.

However, the clustered risks related to inflation, labour shortages, weak economic performance in key sales markets, insecure energy supply and pending reform projects continue to weigh on our prosperity.

At the same time, our society must increasingly learn how to deal with artificial intelligence, in the sense of recognising the risks but – above all – taking advantage of the opportunities it provides.

What is the main priority for Deloitte Switzerland in the coming months?

We started our new financial year with plenty of momentum. This included the promotion of ten experienced employees to partner, and many other highly qualified employees to more senior positions.

We place strong emphasis on the targeted development of younger employees. In addition to the attractive working environment and many training opportunities that we offer, our Next Generation Advisory Board, which is made up of around a dozen highly motivated younger employees, is also extremely important.

Over the coming months, we will all be very busy helping our clients to solve the challenges they face, many of which are very complex. This includes handling the risks I mentioned at the start. However, these risks also offer considerable opportunities.

Deeply impressed

Which recent development have you been most impressed or preoccupied with?

The people in Ukraine again: their courage, determination and resilience are incredible. I am deeply impressed by the way they have been dealing with the hardships and fears and the loss of human lives and material possessions for what is now more than a year.

Either/or

And briefly: Coast or mountains – what do you prefer in the summer holidays?

I like both a lot. But this year will take me to neither: I will be spending my summer holiday in the desert.

Business and the economy

What current challenges in the Swiss economy will be felt most over the coming three months?

Most companies are confronted by a whole gamut of highly unpredictable developments: geopolitics and the closely related issues of energy policy, inflation and interest rates, economic slowdown, pending trade agreements – particularly with the EU and the UK – labour shortages and reform gridlock, especially with regard to retirement provision and healthcare. Making investment decisions in such circumstances needs a lot of foresight and entrepreneurial courage! In addition to all this, there are challenges and uncertainties in the finance and banking sector, not to mention the operationalisation of the takeover of Credit Suisse by UBS that has to be tackled in Switzerland. Against this backdrop, the rather cautious investment climate will undoubtedly have a dampening effect on our growth prospects.

What is the main priority for Deloitte Switzerland in the coming months?

First and foremost, to give our clients our full support in these volatile times in all relevant areas. The topics of sustainability, growth and digitalisation continue to figure high on their agendas. With regard to sustainability, we are making a corresponding contribution through our in-house, global WorldClimate strategy, under which we are aiming to halve our emissions from business travel by 2030, as well as encouraging our employees on a daily basis to make all of their activities more sustainable. This includes the work with clients as well as internal activities and events. To this end, we have set up a simple, practical process for all employees, which encompasses the various stakeholders. As the world’s largest audit and consulting company, with more than 400,000 employees globally and 2,600 in Switzerland, we have a responsibility to set a good example in the sector.

Deeply impressed

Which recent development have you been most impressed or preoccupied with?

The intense but, in my opinion, relatively aimless debate about Swiss neutrality. Although I have every respect for the history and traditions of our country, Russia’s war of aggression against Ukraine threatens almost everything we stand for in Western Europe – democracy, the rule of law and social principles, as well as economic and individual freedom.

It could almost be called cynical, the way we are insisting on the most restrictive interpretation possible of the right to neutrality – and this at a time when Europe is finally joining forces under the leadership of the USA to put an end to the immeasurable suffering of the Ukrainian people and to ensure respect for the rules of international human rights law.

Either/or

And briefly: Hunting for Easter eggs or enjoying the Sechseläuten festivities?

Definitely hiding and hunting for Easter eggs – together with my family.

Business and the economy

What do you think are the main challenges facing the Swiss economy right now?

The biggest challenges for our national economy are high inflation in the main procurement and sales markets, the resurgent Swiss franc and the looming economic downturn. If important trading partners were to slide into recession, it would pose a major challenge for our economy, which relies heavily on exports. At the same time, the shortage of skilled labour is slowing economic growth and thus standing in the way of greater prosperity. We must not underestimate the economic and societal risks associated with these challenges.

What is the main priority for Deloitte Switzerland in the coming three months?

We want to build on our positive experiences of hybrid working within the company. On the one hand, we want to continue enjoying the many benefits that working remotely brings us – such as greater flexibility and the fact that employees are often more focused at home and don’t lose time commuting. However, we are mindful how important it is to be physically present in the office or on client premises, especially for team spirit, creativity, workplace culture and maintaining relationships. Going forward, our employees will enjoy even more freedom to choose where they work. At the same time, they know how important personal interaction is in the people business, whether for customer satisfaction or for their own careers.

Deeply impressed

What have you been particularly impressed by in recent months?

The forces that were set in motion by Russia’s attack on Ukraine. Almost all European countries quickly united to defend the values of our Western civilization. It was impressive to see how quickly the different nations cut existing dependencies and found alternative suppliers for oil and gas. Even renewable energy projects are making much bigger strides now. I have been particularly impressed by people’s great willingness to help and the initiative they have shown. And at the same time, it was also impressive to see the US show leadership again.

The revitalisation of Europe is reducing its dependency on countries with authoritarian governments and strengthening the resilience of the free world. I hope we will show the same commitment to proactively tackling other geopolitical and existential challenges in future.

Either/or

Which do you prefer – Christmas or New Year’s Eve?

Christmas, because I get to relax and spend quality time with loved ones during the festive period. But I must admit, I also like New Year’s Eve and the feeling of starting the new year full of optimism.