Investment Controls

In recent years, companies from emerging economies have increasingly been investing abroad, in some cases for reasons of industrial policy. Such direct investment in Switzerland has led to fears that this may result in a loss of jobs and expertise, and that national security may be put at risk. The Federal Council has closely considered these potential risks. As the report “Cross-border Investments and Investment Controls” shows, current legislation allows the authorities to effectively counter any potential risks. Introducing an investment control would currently bring no additional benefits to Switzerland. On the contrary, it would increase red tape, generate uncertainty and make Switzerland a less attractive place to invest. Nevertheless, the Federal Council is aware of the possible risks associated with direct investment. It therefore intends to conduct a monitoring procedure and review the report within the next four years. With an acceptable level of administrative expense, this instrument will show whether there is a need to take appropriate steps in the future.

13.02.2019

Federal Council decides against investment controls for time being, but supports monitoring procedure

At its meeting on 13 February, the Federal Council approved a report on cross-border investments and investment controls which indicates that introducing such controls would currently bring no additional benefits to Switzerland. On the contrary, restricting capital flows into Switzerland would increase red tape, generate uncertainty and make Switzerland a less attractive place to invest. However, the Federal Council intends to conduct a monitoring procedure and review the report within the next four years.