The EU and the Eurozone have dominated the news for the last few years as a result of the financial issues of Spain, Portugal, Italy and even France. However Cyprus appears to have written chapter in this long running saga of the Eurozone

It stands to reason that no country would want to be using the misfortune of a nation state to promote its own finance sector, however the troubles of Cyprus, the Eurozone and the wider EU can reinforce Switzerland’s position as a world respected and first rate jurisdiction for financial services.

Switzerland’s itself has had its issues since the credit crunch of 2007. Switzerland’s banking secrecy has been made a thing of the past by the US, Germany, France and OECD. Many predicted the drastic decline of Switzerland as a world financial centre but this country has always had more to offer than just banking secrecy.

Over the last few years the country and its finance industry has adapted to the new world – tax compliant services and products are the way forward and Switzerland is offering such expertise and service to high net worth private clients and corporations across the globe. There are going to be issues along the way but Switzerland is treading the path of the new tax compliant world and in many ways is leading it.

Where Switzerland has a real opportunity is through its independence of the EU and its political and economic stability. Switzerland has not notably suffered from the global downturn and whilst at home its politicians have been criticised in the way they have dealt with pressure form the US and OECD etc., the country continues to offer stability and economic prosperity.

Whilst we would hope a Cyprus situation could not happen to Luxembourg or The Netherlands, these jurisdictions are part of the Eurozone and many potential investors may feel that their membership of this group could ultimately be off putting - what happened in Cyprus with the collapse of the banking systems and the levy made on deposits of individuals could theoretically happen in a Luxembourg or Malta for instance. In that case why would anyone would to invest in these countries where the actions of the Eurozone countries in Cyprus have effectively destroyed consumer trust.
By not being part of neither the Eurozone nor the EU Switzerland has the opportunity to attract new investment into a country with a long standing reputation in banking and financial services built up over hundreds of years. It is a system that is trust worthy and proven and that is why this country attracts the investment of others who can safely deposit and invest into Switzerland.