How Germany is Penalizing the Swiss Defense Industry

Germany’s Hard Line Against Swiss Arms Industry

Germany is poised to deliver a significant blow to the Swiss arms industry.
The catalyst for the recent discord between the two nations, historically known for their strong trade relations, has been the ongoing war in Ukraine, during which Switzerland has steadfastly upheld its long-standing neutrality.

The pivotal issue is Switzerland’s ban on the re-exportation of Swiss-made arms to Ukraine, which has been embroiled in conflict with Russia for over two and a half years, following Moscow’s invasion.

Essentially, Germany, like other nations, is barred from sending weapons or munitions manufactured in Switzerland to Ukraine.
Despite considerable pressure, Bern has unwaveringly maintained its stance.
However, Berlin has now officially responded by drafting a letter to armasuisse, the Swiss Federal Office for Defence Procurement, announcing that Swiss defence firms will soon be excluded from certain military procurements.

Previously, a similar decision was adopted by the Netherlands, but given the greater volume of exports to Germany, Switzerland’s arms industry stands to suffer significantly.

The Impact of the Ukrainian Conflict

The war in Ukraine has sadly rekindled dynamics in Europe that many believed belonged to the last century.
The fear of escalating conflict has sparked a widespread arms race across the continent.
Since the onset of hostilities, the West has united in support of Kyiv, providing humanitarian, economic, and military aid, with Germany being one of the most generous contributors.

However, Switzerland’s re-export restriction has complicated Germany’s plans, prompting Berlin to retaliate by halting the purchase of certain Swiss weapons.
The rationale behind Germany’s firm stance is clear; without reliable re-export options, Switzerland can no longer be deemed a trustworthy partner for the German defence industry, which may look elsewhere for arms and ammunition in the near future.

The Debate in Switzerland

This decision has ignited a heated debate within Switzerland.
On one side are the Greens and progressive parties advocating for the maintenance of the export ban, while the more pro-Ukrainian factions argue for some form of exception.

The underlying concern is that Germany’s actions could severely jeopardize Switzerland’s arms industry, consequently weakening the country’s defence capabilities.
The pressing question now is whether this rift between the two nations can be mended, as Swiss parties remain uncertain about their next steps following an initial consultation that failed to yield consensus.