INTRODUCTION TO SWITZERLAND

Location:
Central Europe, east of France. Capital: Bern.

Climate:
Temperate, but varies with altitude; cold, cloudy, rainy/snowy winters; cool to warm, cloudy, humid summers with occasional showers .

Terrain:
mostly mountains (Alps in south, Jura in northwest) with a central plateau of rolling hills, plains, and large lakes

Natural resources:
hydropower potential, timber, salt.

Currency:
1 Swiss franc, franken, or franco (SwF) = 100 centimes, rappen, or centesimi

Economy:
Switzerland's economy - one of the most prosperous and stable in the world - is nonetheless undergoing a stressful adjustment after both the inflationary boom of the late 1980s and the electorate's rejection of membership in the European Economic Area (EEA) in 1992. So far the decision to remain outside the European single market structure does not appear to have harmed Swiss interests. In December 1994, the Swiss began bilateral negotiations with the EU aimed at establishing closer ties in areas of mutual interest and progressing toward the free circulation of persons, goods, capital, and services between the two parties. The Swiss emerged from a three-year recession in mid-1993 and posted 1.8% GDP growth in 1994. The Swiss central bank's tight monetary policies brought inflation down from about 4% in 1992 to just under 1% in 1994. Unemployment has fallen slightly from 5.1% in 1993 to 4.7% in 1994. Swiss per capita output, living standards,education, and health care remain unsurpassed in Europe. The country has few mineral resources, but its spectacular natural beauty sustains a substantial tourism industry.