Convergence with the Eurozone

Switzerland's planned pegging of the franc to the euro would be almost tantamount to joining the Eurozone, writes the liberal daily Mladá fronta Dnes: "It sounds like science fiction: the Swiss want to exchange the franc for the euro. Switzerland has fallen ill because of the healthy franc. Not so long ago you got 1.65 Swiss francs for a euro. Now it's only 1.05 francs. The president of the Employers' Association has recommended that companies reduce salaries. The companies on the border tried this out first justifying the measure to their employees from France and Germany by saying that they had an exchange rate advantage of 25 percent in comparison to the previous year. But this discrimination didn't pan out. That leaves the option of simply paying salaries in euros. Now the vice-president of the central bank is talking about pegging the franc to the euro. Dear people of Switzerland, welcome to the Eurozone." 

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