(Image: Keystone)
(Image: Keystone)
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Local News Summary of March, 24th

  • Alain Berset opens Baselworld
  • Ban of protests during Baselworld criticised
  • Tax dispute around Basel EuroAirport officially finished

Alain Berset opens Baselworld

The international watch and jewellery fair was on Thursday opened by Federal Councillor Alain Berset amid a fanfair of Basler drummers and the flashlights of photographers.

Accompanied by the organisers and the police, the head of the Department for Interior Affairs took a tour of hall 1 at the Messe Basel, where the biggest watch companies in the world are this week displaying their collections. Due to the great importance of the watch industry to the Swiss economy, it is traditional for a Federal Councillor to open Baselworld.

The premier show for the watch and jewellery industry, which this year celebrates its 100th birthday, will take place over a week. However, the financial crisis currently facing the watch industry has overshadowed this year’s Baselworld: the number of stalls has been reduced from 1500 to 1300. In February, the watch industry reported that it had suffered a reduction in exports in the last 20 months consecutively. The exports for 2016 dropped by almost 10 per cent.

Optimism for 2017

However just in time for Baselworld, optimism has made a comeback. The president of the Swiss Watch Maker Association, Jean-Daniel Pasche, believes that some brands will increase their sales in 2017. The Swiss watch exports in total however would react reluctantly on the rising demand, Mr Pasche told economic news agency, AWP.

«The turnaround concerning exports might show in the course of this year», he said. Watch exports reacted with an inertia of a few weeks or months to the rising demand on the sales markets. «First of all we need rising sales before the merchants order more watches,» he added.

At least there are signs of a stabilisation. The decrease of the export statistics in January and February have slowed from 10 per cent in 2016 to eight per cent. And exports to China have risen in the last few months. «We still expect a stabilisation of watch exports in 2017» the president of the association said, underpinning forecasts made earlier this year.

In addition, Swatch-boss Nick Hayek said he was “very optimistic” for the coming year. At a press conference he told the media about possible increases in turnover of up to 10 per cent. Since the start of the year the demand especially in Asia has developed favourably, he told reporters, adding that demand had “noticeably increased” in the Middle East and in some European countries.

Ban of protests during Baselworld criticised

The Basel police banned a protest in support of «Standing Rock» which was set to go ahead during Baselworld. The protest had been planned in support of an international campaign against the construction of a controversial oil pipeline through a protected Native American reserve in Dakota in the USA. Swiss Banks are alleged to be involved in the pipeline.

If conducted during Baselworld, where international businesses meet in Basel, the «Standing with Standing Rock» protest would have had an impact. The Basel police however banned the protest since they said they were “not able to dedicate time and resources” into policing the protest. The security forces have different priorities during Baselworld, they said.

Blockage of freedom of speech

The ban has provoked upset among some politicians. Daniel Spirgi, member of the Grand Council for the left wing party BastA! submitted an interpellation in parliament to demand an explanation from the government as to why exactly the protest had been banned and to ask whether this had consequences for the timing of Art Basel, the second big fair in Basel.

Mr Spirgi further questioned whether this went well together with freedom of speech and freedom of assemblies. In Basel especially the left wing parties specialise in protests, mostly the Social Democrats, but also BastA!

The aftermath of the paper plate-affair

Protests during international fairs have a history in Basel. During Art Basel the «paper plate-affair» took place, during which an art-protest using paper plates as props ended in a major police operation. The consequences were long standing, especially it was discussed whether the reaction of the police was appropriate.

Mr Spirgi also questioned what the costs are for the police operation during the fair and who is paying for it. As well as supporting protests, BastA! Also emphasises the significance of Baselworld as prestigious and economically important for Basel.

Tax dispute around Basel EuroAirport officially finished

The tax dispute surrounding the EuroAirport is officially over. The Federal minister for Foreign Affairs, Didier Burkhalter, on Thursday signed a contract with the French Secretary for European Affairs, Harlem Désir.

The Federal Department for Foreign Affairs confirmed the development on Thursday. The new tax regulation means that, in the Swiss sector of the EuroAirport, Swiss VAT should be paid. The income from business tax will be shared between Switzerland and France.

Businesses in the Swiss sector will be submitted to French income tax and Swiss capital tax. Additionally there should be an agreement for billing the services of the French aviation supervisory authorities