Swiss And Spanish Economies Analysis

Analytical paper

Author/Country/Year

Macroeconomic Swiss analysis.
Overview together with Spain and EU-27

2005-2010

Index
Topic Page
* The country: political system,
demographic and social framework facts…………………… 3

* The Swiss Economy: the benchmark
to reach the freest Economy in Europe ……………………. 4
Banking in Switzerland:
why so attractive for foreigners?……………………………. 6

* Taxation in the tax haven……………………………………. 6

* Education, employment, productivity and wages… 8

* Monetary policy:
the gap between euro and Swiss franc……………………… 9

* Public finance in Switzerland ………………………………. 10

The country: political system, demographic and social framework facts
Switzerland is a federal republic, divided into 26 cantons, with Bern as theseat of the main authorities institutions. However not Bern but Geneve and Zurich are the economic centres of the country.
The main characteristic of this country is its long carried neutrality within wars and international institutions. The single purposes of its foreign policy is the building of a peaceful stage, proof for that is the establishment of the Red Cross institution in the country.Switzerland is one of the richest countries in the world by GDP per capita ($69,838). Besides, in 2010, Switzerland had the highest wealth per adult of any country in the world (with $372,692 for each person). Zurich and Geneva have respectively been ranked as the cities with the second and third highest quality of life in the world. As well in 2010 the World Economic Forum ranked Switzerland asthe most competitive country in the world, while ranked by the European Union as Europe's most innovative country by far.
All those data arise from a country with a multicultural, multilingual society which has to face the existence of 4 official languages (German, French, Italian and Romansh). Moreover there is no seaside in the country and the surroundings are the very steep and inaccessibleAlps.
Swiss population is around 7.8 millions of people, from which a 22% correspond to foreign people, mainly Italian and German. According to the average age, the 22% of the inhabitants are younger than 20, 56% younger than 60 years and 20% older than 60 years. The expectancy life in Switzerland at birth is 79 years for male and 84, one of the highest rates all over the world.
Regarding to theurbanization, about a 75% of the Swiss people live in cities, percentage highly increased during last century, since Switzerland was no longer a countryside state.
Swiss state takes part of few international institutions, only since 2002 joined the United Nations, becoming the first country to make that decision by national referendum. The Swiss Confederation hosts a large number of sport andpro-peace organizations, such like UEFA and the Red Cross. Political, military, economic or monetary are the only sorts of gatherings they have been refusing since their expansion period ended, around the XVI century. It is not part of the G-20 (but is by far a potential member, under the light of the data) but, however was founding member of the OECD.

The Swiss Economy: the benchmark to reach thefreest Economy in Europe
According to the Index of Economic Freedom, Switzerland is the European continental country freest. That Index measures factors such like business, trade, monetary, fiscal, investment, financial and labor freedom likely the Government’s size of expending, or the property rights. Only Hong-Kong, Singapore, Australia and New Zeland are freer than Swiss Economy. That doesnot mean by far that Swiss state doesn’t provide public services to their citizens. This is also itself an answer to the question “Is the Swiss a sustainable Market?”. Indeed.
European Union GDP (PPP) per capita arises up to $30.388, in the meanwhile Swiss’s one overpasses the $43.000. It makes the country one of the richest in the world. The annual average of growth is 2.1% total nominal,...