Switzerland's neutrality questioned as defence industry suffers
Switzerland has been a neutral state since 1515, but this era may end someday. A report from the Special Commission in Switzerland recommends abandoning this problematic policy in some aspects. We explain why the neutrality policy has become an issue for Switzerland in the context of its defence industry.
A report prepared by the Security Research Commission operating within the National Defence Department recommends abandoning the neutrality policy, which prevents participation in defence organisations and has become a burden for the defence industry.
The 68-page report "Bericht der Studienkommission Sicherheitspolitik" responds to current geopolitical changes. In recent years, Russia has been trying to regain influence in Europe, as it did during the USSR era, while China is increasingly gaining influence in the Balkans.
Switzerland's ambitions
The report suggests that due to its location and logistics, Switzerland cannot afford the risk of isolation in the event of a potential clash between authoritarian regimes (Russia and China) and Western democracies currently plagued by populism during 2028-2033.
Switzerland is particularly interested in participating in the ESSI initiative, the European Ballistic Missile Shield. This would complement the country's capabilities in this area.
The second critical issue raised in the report is the negative impact of the neutrality policy on the export and re-export of arms. Due to the Swiss government's blockade on arms deliveries to Ukraine, the local defence industry suffered significant financial and reputational losses.
Refusal to supply Ukraine
Some of the most notable issues included the supply of Leopard 2 and Leopard 1 tanks and ammunition for Gepard self-propelled systems, some of the best anti-drone measures in Ukraine. The matter of about a hundred Leopard 1A5 tanks is ongoing, and the latest plans included donating them to Greece in exchange for the delivery of their national machines to Ukraine. Swiss Leopard 2 tanks, on the other hand, ultimately went to the Czech Republic as part of the Ringtausch programme.
In the case of ammunition for Gepard anti-aircraft systems, Germany found an ammunition supplier in Norway. In the meantime, the local part of the Rheinmetall group built a new ammunition factory in the country. This caused huge losses for the Swiss part of the group. Similarly, the situation affects companies like SwissP Defence AG, which produces excellent sniper ammunition but cannot sell it to Ukraine.
It is worth mentioning that the neutral country created a deterrent effect for potential foreign partners. Local regulations also blocked the export of weapons from other companies if they contained Swiss components. In such cases, fewer foreign entities may be willing to cooperate with Swiss companies in the future.
