Some believe this must make it harder to succeed in competition of any kind, but in fact the opposite is true. Let me show you why our position needn't be a disadvantage, but, on the contrary, an asset. Clichés are very hard to overcome. In the case of Switzerland, as you know, we are best known for our banks, watches, chocolate and cheese. Other than this, and despite the strong presence of Swiss multinationals abroad, the world doesn't usually take too much notice of what some regard as a "small village in the heart of Europe". In international surveys, we are largely ignored, and in European statistics we are almost non-existent. Sometimes this can be an advantage. However, in a more and more globalised world, it is rather the opposite. Success depends heavily on your marketing. So, let me show you some hidden aspects of Switzerland. You will see that modern Switzerland is adjusting rapidly to the changing reality of the world economy. Let's consider a few facts. A booming economy, at home and abroad With 7.5 million people, Switzerland is indeed a small country, surrounded by the economically powerful European Union. We have no natural resources, and contrary to Singapore, we do not even have a chance of gaining new territory by raising it out of the surrounding sea. Nevertheless, we have a highly developed economy and a GDP per capita that clearly exceeds the European average. Contrary to the situation among some of our neighbours, our population is still growing, thanks to immigration.
Contrary to the pessimistic assumption that the Swiss National Bank would be forced to shadow the policy of the European Central Bank, we have been able to set interest rates according to the needs of the Swiss economy. And we will continue to do so. Summing up, we are as happy as central bankers can be with the outcome of the test imposed by the change in the European monetary system. Why joining the EU and the euro is not a realistic option And what about the European issue? As you know, we are not a member of the European Union, nor do I foresee Switzerland joining the EU in the near future. The Swiss people remain sceptical about the efficiency of the Union and are very aware of what they stand to lose in terms of political rights and economic freedom in the event of integration. But our relationship with the EU is of key importance, since Europe accounts for two-thirds of our foreign trade, as I mentioned before. In order to secure our access to the European market and to avoid discrimination, we have concluded two packages of bilateral agreements with the Union – one in 2002 and one in 2004. The present situation – with free movement of goods, capital and labour, but without monetary and fiscal integration – is probably the best solution for us. In short, our relationship to Europe is well organised and established.