Important areas of the working world, such as unemployment insurance and the protection against unfair dismissal, are regulated in such a way that companies are willing to create new jobs, and the unemployed are anxious to find work again quickly. In addition, Switzerland still has a very competitive export sector, which is well able to hold its own in today’s global environment. It comprises both large international companies as well as a great deal of small and medium-sized enterprises. These are able to maintain their leading position in the world, thanks to high productivity and innovative products. A greater cause for concern, however, is our domestic economy. It includes a number of different sectors, such as agriculture, tourism, and trade and industry, as well as public and semi-private areas, such as telecommunications, post and electricity. In many sectors, the domestic industry is not productive enough and too costly. Many prices are kept high by state regulations, cartels and other anti-competitive agreements. The enforcement of the Domestic Market Act, which was introduced in the nineties with the purpose of standardising the Swiss market, failed at a cantonal level. As a result, price levels in Switzerland are significantly higher than they are abroad. The affected sectors put forward the argument that like hadn’t been compared with like and that the differences in quality hadn’t been taken into consideration. There is undoubtedly some truth in what they say. Furthermore, the desire to mitigate competitive pressure may reflect a Switzerland that wants to avoid conflict.
As I have already mentioned, this enabled us to conduct a monetary policy in the heart of the euro area that is suited to the needs of Switzerland. And that brings me to my concluding remarks. 5. Conclusion  Switzerland is a small, open country, with few natural resources, which in many ways has become global. The export industry and the financial sector have adjusted well to the new structures and have become global players. The domestic economy and the political structures, however, are straining to make the equivalent adjustments because changes in those areas would often affect vested interests and future claims on the social security system. Nor has there been sufficient pressure to act. However, in order for Switzerland to stand the test in a dynamic global environment, it must ensure that the reform process currently under way will be continued and accelerated. By now, some observers have come to question Switzerland’s ability to make comprehensive reforms altogether and assert that the country has become a problem case because of its inability to make changes. I do not share this pessimistic view. On the contrary, I am convinced that the understanding for the necessity of reforms, and with it the willingness to temporarily accept disadvantages, will grow. What ultimately gives me cause for optimism are Switzerland’s sense of realism and its wealth of experience. We are aware that neither the European environment nor globalisation will take our national feelings into account.