Saturday, June 18, 2016

Brexit to Result in 'Catastrophe' for Swiss Economy - Swiss Lawmaker

The possible exit of the United Kingdom from the European Union would have a negative impact on the Swiss economy as it would further strengthened the national currency, thus hitting Swiss exporters, a Swiss lawmaker from the Christian Democratic People's Party told Sputnik on Thursday.

MOSCOW (Sputnik) — She added that Britain's potential exit from the bloc is also complicating the negotiation proceedings between Bern and Brussels, as Brussels has put all bilateral negotiations on hold until after the UK referendum. "Brexit would be a catastrophe for Switzerland. The Swiss franc will grow stronger and stronger. That would be very bad for our economy," Elisabeth Schneider-Schneiter, who is also a member of the National Council's Foreign Affairs Committee, said.
Earlier in the day, head of the Swiss National Bank Thomas Jordan told reporters that the Swiss economy could face turbulence if Britain opts to exit the bloc, vowing to "take measures if required."
The Swiss franc, long considered a safe haven currency and already overvalued, has seen its value surge again following the publication at the weekend of polls suggesting that Brexit could win the day in the June 23 vote.
A stronger franc negatively affects Swiss exporters, as it forces them to squeeze costs and lower prices to remain competitive on an international market.

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