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Wars and conflicts: Military spending is increasing, but Switzerland is producing less. This also has to do with Qatar.
2,443,000,000,000 US dollars – that’s almost 2.3 trillion francs. That’s how much the world spent on armaments last year. And when demand increases, the sales of arms companies, those companies that produce all kinds of military equipment, also increase.
In Switzerland, however, sales are falling – by more than a quarter. Minus 27 percent, to be exact. Arms exports from Switzerland amounted to almost 700 million francs in 2023. On the one hand, this has to do with the stricter export regulations – Switzerland is very strict in this regard.
On the other hand, Qatar also contributes to the decline. The country on the Persian Gulf was hosting the Football World Cup in 2022 – and was preparing accordingly. Specifically, anti-aircraft systems were on the order – to protect the stadiums. A 120 million franc order, which was of course missing last year – and one reason for this is that sales fell.
Export of material to warring countries prohibited
“The sales departments of Swiss companies have significantly less to do,” says Matthias Zoller from “Swiss ASD”, the association of internationally active security and defense technology and aviation companies under the Swissmem umbrella. The companies produce both military and civilian products.
The political tightening is also noticeable in the industry. The German company Rheinmetall, for example, has less production in Switzerland, for example ammunition for the Gepard tanks. Since 2021, it has been forbidden in Switzerland to export material to warring countries. The ban also applies to states that could pass on the goods to other countries.
«Our European neighbors and also our most important customers have lost trust in Switzerland and are no longer ordering from us. “The Netherlands, for example, has decided to no longer procure Swiss military equipment,” says Matthias Zoller.
An estimated 14,000 people work in the defense industry
In the debate about the delivery of decommissioned Leopard tanks, this ban was also felt by a broad audience – and polarized accordingly. Of course, people in the industry fear for their business. The “dogmatic interpretation of neutrality” is very threatening for the arms industry, Swissmem President Martin Hirzel told the “Neue Zürcher Zeitung” last October.
It is estimated that 14,000 people work in the Swiss defense industry – and the trend is unlikely to increase. The industry associations are active at the political level to weaken the strict export laws.