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EDITORIAL

When very strong it gets a weakness – the Swiss franc

The Swiss entity that most strives to avoid surprises surprised everyone: Days ago the Bank of Switzerland (National Bank) decided to defend – by taking active measures – a minimum exchange rate of 1.20 CHF/EUR. It is rare that a Swiss public entity actively intervenes in the free market mechanisms.

The export industry applauds this action and breaths of relief, because the situation with the too strong Swiss Frank during so many months crushed the margins of Swiss companies.

What is a big problem for one can be an opportunity for another. In fact, the CCISP notes a growth of interest from Swiss companies that want to streamline their cost structure. For doing this, Portugal has something to offer. The evaluation criteria that put Portugal on the radar of the most interesting possibilities are usually the following:
• Low wages, even for quality work: The Portuguese politicians may like or not this criterion for the country's image, it is a fact that it continues to be one of the most important ones;
• Proximity: A return trip from Switzerland to Portugal is a one day journey;

• The quality of products in many sectors, eg textiles, footwear, leather products, molds, innovations in the field of IT, etc.
• Flexibility: The possibility of producing smaller quantities per product than it is needed in Asia or in other European countries, and also what concerns the ability to react quickly to new market trends;
• The loyalty of Portuguese employees towards the company, when they are treated well. For businesses with sensitive information, there is less fear of plagiarism of know-how in Portugal than in other countries. This criterion was recently again brought up by a director of a Swiss IT-company.

Therefore, hopefully the good side of the strong Swiss franc is that Portugal take advantage of this opportunity to reinforce the existing trend of return of many companies from Asia to Europe.

We wish you a successful business!

Gregor Zemp
General Secretary