Euro Introduction Shows Up High Swiss Prices

by Ulrika Lomas, Tax-News.com, Brussels

08 April 2002

According to reports, the introduction of the euro has promoted price competition in Switzerland by making cost comparisons easier.

Although the Apline jurisdiction has traditionally had a reputation as one of Europe's more 'expensive' countries, a fact which has been blamed on the close relationship between multinational manufacturers and Swiss importers, the introduction in January of the single currency in many of its neighbouring countries has revealed just how much more Swiss consumers are paying for items such as electronic equipment and domestic appliances and medicines.

Speaking to the Swissinfo news service last week, Werner Marti, Switzerland's Price Supervisor explained that: 'The discussion over price differences between Switzerland and other countries is directly linked to the euro, because transparency will be increased.'

Jacqueline Bachmann of the Foundation for Consumer Protection seconded this, telling the news service that: 'It is getting easier for consumers in Switzerland to compare prices since the introduction of the euro. Pressure on Swiss prices will therefore increase.'

Experts believe that one of the factors which may be keeping the price of consumer goods in the country high is the ban on parallel imports (branded goods manufactured abroad for a cheaper price than in Switzerland). The ban was upheld by a Supreme Court ruling over Kodak films in 1999.

However, although the ban serves to protect industry within the country, it does little for consumers looking for a bargain, a consideration which many feel should be addressed by the Swiss government if the country is to remain internationally competitive.

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