The advantages of Switzerland’s economic freedom
Economic freedom, as defended by Switzerland, has long proven its importance for the growth of companies. Recognized as one of the freest economic countries, Switzerland appears as a privileged place to set up a business.
The concept of freedom is central to the Swiss economy. According to the Heritage Foundation's annual index, Switzerland is the country with the greatest economic freedom in Europe and ranks in the top three internationally. This indicator considers five distinct areas of application, namely the size of government, the legal system and property rights, the stability of the currency, the freedom to trade internationally and the density of regulations.
Freedom that promotes economic growth and innovation
Economic freedom means, first and foremost, that the country places a premium on individual economic freedoms, voluntary exchange, and open markets. In other words, individuals decide for themselves and are not constrained by political procedures designed to limit their freedoms. This situation then leads to general prosperity, that is to say, high or rising incomes and consumption levels for the majority of the population. By keeping intervention in the economy to a minimum, Switzerland encourages the growth of its businesses and allows for an unprecedented openness to global trade, making the Swiss economy one of the most competitive in the world. This eminently Swiss mentality considerably increases the efficiency of production and innovation within the country. As a result, Switzerland stands out as the most innovative country in the world according to the Global Innovation Index (GII).
The Competition Commission: protecting your business
While granting a great deal of freedom to companies operating on their territory, the Swiss authorities are keen to protect them. Therefore, preserving competition is one of the core tasks of the Competition Commission, the federal agency that regulates cartel and internal market legislation. It monitors abuses by dominant companies, controls mergers, and prevents state restrictions on competition and intercantonal trade.
In a nutshell: with its exemplary political stability, Switzerland's economic freedom encourages innovation and makes it an ideal place to set up a business.
The Greater Geneva Bern area (GGBa) is the investment promotion agency for Western Switzerland. If you would like to know more about the advantages of economic freedom in Switzerland or about other subjects that could help you in your implantation, do not hesitate to contact us.
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