In this column, contributors share their views on economic and financial issues.

Switzerland is one of the world’s most open economies. A significant share of our prosperity is built on our ability to export high-quality products made by people whose expertise is recognized far beyond our national borders.

Yet this strength is increasingly being tested by a familiar challenge: the persistent appreciation of the Swiss franc. While a strong franc reflects confidence in Switzerland, it also places a heavy burden on export-oriented businesses. When an SME sells its products in euros or U.S. dollars but pays wages, suppliers, rent and taxes in Swiss francs, every further appreciation of the franc automatically erodes its margins. The fact that inflation in Switzerland is lower than abroad, making the real appreciation less pronounced than the nominal one, offers only limited comfort.

Large multinational companies often have sophisticated tools to absorb such currency shocks. They operate production facilities in multiple countries, maintain specialized treasury departments and use complex hedging strategies.

«Export-oriented SMEs manufacture in Switzerland, employ people here and train apprentices. They are directly exposed to exchange-rate fluctuations.»

Industrial SMEs, by contrast, rarely have these options. They manufacture in Switzerland, employ people in Switzerland, train apprentices here and incur their costs in Swiss francs. As a result, they are directly exposed to currency fluctuations.

When the Swiss franc appreciates sharply, they are left with few alternatives: accept lower margins, raise prices and risk losing market share, postpone investments or, in the worst case, consider relocating part of their production abroad.

This is not merely a business issue. It affects jobs, vocational training, industrial sovereignty and, ultimately, Switzerland’s long-term prosperity.

The Swiss Export Shield: Insurance, Not a Subsidy

Against this backdrop, Switzerland should consider establishing a Swiss Export Shield — a mechanism modeled on SERV, the Swiss Export Risk Insurance agency.

For many years, SERV has helped Swiss exporters protect themselves against commercial and political risks, such as the non-payment of invoices by foreign customers. The Swiss Export Shield would apply the same principle to exchange-rate risk.

Funded Through Insurance Premiums

The proposal is neither a subsidy nor an intervention in the foreign-exchange market. Instead, the Swiss Export Shield would operate as an insurance scheme financed by premiums paid by participating companies. Its purpose would be simple: to act as a financial airbag.

An airbag does not prevent an accident, but it reduces the damage when the impact is severe. The Swiss Export Shield would function in the same way. Normal exchange-rate fluctuations would remain the responsibility of companies. The mechanism would only be activated when the Swiss franc appreciates beyond a predefined threshold.

Protection Against Shocks, Not Normal Currency Movements

In practical terms, industrial companies with significant value creation in Switzerland could insure between 50 and 70 percent of their export revenues denominated in euros or U.S. dollars for a period of twelve months. In return, they would pay an annual insurance premium.

A deductible would ensure that only exceptional currency shocks are covered. If such an event occurs, part of the exchange-rate losses would be compensated, helping companies preserve profitability, employment, investment and production in Switzerland.

Preserving the Independence of the Swiss National Bank

The Swiss Export Shield would have to be designed in a way that fully preserves the independence of the Swiss National Bank (SNB). The SNB would neither finance nor administer the scheme.

Instead, the mechanism would be managed by an independent public institution modeled on SERV. Funding would come primarily from premiums paid by participating companies and from a dedicated reserve fund. A limited federal guarantee would only be activated in extraordinary crisis situations, serving as a safety net rather than an ongoing public subsidy.

This institutional design is essential. It would allow Switzerland to support its exporters without turning monetary policy into industrial policy.

Complementing, Not Replacing, the Market

Banks already offer currency-hedging instruments such as forward contracts and options. For many SMEs, however, these solutions are too complex, too expensive or simply not aligned with their operational needs.

The Swiss Export Shield would therefore complement rather than replace the private market by providing a simple, standardized and easily accessible solution.

Its objective would be to give export-oriented SMEs greater planning certainty. A company that knows it is at least partially protected against extreme currency shocks is better positioned to invest, hire employees, train apprentices and continue manufacturing in Switzerland.

Protecting SMEs Means Protecting Switzerland’s Industrial Future

SMEs are the backbone of the Swiss economy. They create skilled jobs, train apprentices, drive innovation, export Swiss products and sustain the economic vitality of entire regions. Protecting them against extreme currency shocks does not mean shielding them from competition. It means ensuring that they compete on fair terms.

The Swiss Export Shield would not protect companies from the market. It would protect Switzerland from the gradual erosion of its industrial base.

In a world shaped by geopolitical tensions, fragile supply chains and intensifying global competition, a strong industrial base is not a luxury — it is a strategic necessity.

«In today’s world, a strong industrial base is not a luxury but a strategic necessity.»

Switzerland created SERV as an effective instrument to protect its exporters against commercial risks. Today, it needs a complementary instrument to cushion the most severe currency shocks.

A Swiss Export Shield — financed by participating companies, independent of the SNB and specifically designed for SMEs that manufacture in Switzerland — would be a pragmatic, responsible and distinctly Swiss solution.

Nabil Francis has served as CEO of Felco since June 2021 and as Chairman of the Board of Directors since June 2026. Before joining Felco, he held various senior management positions in the international building materials and cement industry, including roles at Italcementi Group, HeidelbergCement and CRH.

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