Switzerland is a small but proud country. The Alpine Republic is a democratic basis and fortified and was always proud of his neutrality. However, before turmoil in the financial markets do not protect even the highest mountains.
With the coupling of the Swiss franc to the euro exchange rate in Switzerland has made some of their financial sovereignty and neutrality. But in the end, the number of alternatives was manageable. In the debt crisis, euro and dollar rub together. Investors who wanted to take this short-term fluctuations have not perceived the franc as a safe haven, and driven the price of foreign exchange at unprecedented heights. The results are overwhelming. Tourists shun become unaffordable for many destinations, and Swiss exports of the machine to the Clock to be either dead stock or abroad can only be the object of the profit margin will be sold off. If the share price went so on, the Confederates would have been plunged into recession.
Whether it is possible to stabilize the economy of Switzerland is an open question. Even the retracted from the Swiss National Bank's upper limit of 1.20 francs per euro is historically high. In addition, such interventions have always tried out currency speculators.
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The Swiss experiment marks the way, would go to Germany, too, would prevail in the euro-skeptics. A rapidly gaining strength D-Mark would affect the export business difficult, if not even bring to a halt. Coupled with low interest rates (German bonds were in demand as a safe harbor) could lead to a similar paralysis of Japan has been suffering for years. The only advantage would be that the German finance minister would be easier because of the exchange rate advantage in debt to pay back € made.
The bottom line shows, Switzerland is also the German view, little desirable scenario. In addition, the coupling of the Swiss franc, the yields on German bonds is still under pressure. The number of safe havens has become smaller.
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