Swiss banker and parliamentarian Thomas Matter sees Brexit as an opportunity for Switzerland. This is perhaps unsurprising, given his right-wing political views and affiliation. He lays out a valid case for Switzerland's chances.
Thomas Matter, founder of Neue Helvetische Bank and parliamentarian for the Swiss People's Party (SVP), writes on a party blog that he sees a major opportunity for Switzerland following Brexit.
He sees these opportunities in research in particular, where he urges Switzerland to seek to exchange knowledge «with English elite universities instead of the mean of the European Union.»
Closer Ties to London
Matter sees Switzerland's other major opportunity as a financial center. «The financial centers of Zurich and Geneva should work far more closely with London in view of the fact that Great Britain will no longer be a member of the EU,» Matter writes.
Diplomats in the Swiss capital of Bern have reached out to British finance officials to explore possibilities of working together, according to a source familiar with the matter.
London hasn't responded to the informal Swiss approaches until now, this person said, due in large part to the political uncertainty over Britain's leadership.
Media Criticism
The City of London enjoys preferential treatment, and there is no reason to think that Switzerland can't benefit from similar treatment, Matter argues. «Switzerland's big banks have to lobby in London, and not in Brussels,» he says.
The idea of an «alliance of finance kings» was first floated by David Stubbs, global market strategist at J.P. Morgan's asset management division, in a finews.ch interview.
Matter's blog on Brexit outlining Switzerland's potential benefits from the political turmoil in Britain stands in stark contrast to the tone in other Swiss media. In what has become typical for the SVP's style, Matter roundly criticizes Swiss media coverage of Brexit, which has referred to the vote as a «shock» decision, as an «abyss,» or even a «demise».
London's Rivals Jockey for Position
The chances for Switzerland as Matter describes them have not been widely touted. While cities like Paris, Berlin and Frankfurt are jockeying to win market share off a weakened London following the vote, Switzerland has been largely silent.
The «Financial Times» reported Berlin's efforts to sell itself as a hub for fintech startups. The German capital's Free Democrats drove an ad truck (pictured below) through Silicon Roundabout in London this week urging startups to «keep calm and move to Berlin» following the Brexit vote.
Official Switzerland doesn't see such opportunities, given the country is not part of the European Union. A potential benefit for Zurich if London is weakened as a fintech hub is also unclear at first glance.
There is little anecdotal evidence that Switzerland is working on creative or innovative ideas to attract any fintech business from London.
Zurich Ahead of Other EU Finance Centers
The same goes for Switzerland's financial center, which Matter believes can benefit from the Brexit fallout. His view is that if London – as Europe's most important financial center – isn't part of the EU, then Zurich and Geneva should lock shoulders with the British finance capital.
Matter's case is that besides London, Europe doesn't have a noteworthy financial center. In the Global Financial Centers Index, Luxembourg is ranked 14th, Frankfurt 18th. By contrast, Zurich finishes at 6th place, Geneva in 15th.
Aligning with London would accentuate Switzerland's existing strengths, in Matter's view.
