Ticino, rising prices and traders in crisis. The real Switzerland? (cross-border guide)

Context

In short, Switzerland, in particular the Canton of Ticino, is going through a phase of rising prices that is putting not only traders but also citizens to the test. The situation has worsened by the recent escalation in gasoline prices, which has resulted in an increase in spending by all residents.

Key facts

• What: Prices increased in Ticino.
• When: Gasoline is now also expensive in Switzerland, costing almost 1 euro per liter.
• Where: Ticino, the most populous and industrially advanced canton in Switzerland, where most of the population lives downstream from the Gothic.
• Who: Merchants, Swiss citizens and tourists who need fuel for their travels.
• Amount: 7% increase in sick pay, according to the deputy mayor of Chiasso, Davide Lurati.

To better understand the situation, it is useful to refer to Swiss price regulations, such as the Oil Prices Directive which regulates the import and export of oil and derivatives to Switzerland. According to the Federal Office of Transport (Sierre), the cost of fuel in Italy, a country close to Switzerland, is growing, with an increase of 10% in the last six months. This led border workers to travel to Italy to shop and reduce prices, further aggravating the situation.

According to a survey conducted by the Federal Statistical Office (FSO) in May, 7% of Ticino residents said they had

Operational details

The economic crisis in Ticino is a serious problem that is bringing Swiss traders and residents to their knees, with rising prices hitting many sectors hard, particularly those of basic necessities. The food sector, in particular, has been hit hard, with a 5-6% price increase recorded in local supermarkets.

Sick pay is up 7% and unattainable wages for Italians, the main group of immigrant workers in Ticino, are a serious problem. The deputy mayor of Chiasso, Davide Lurati, spoke about the economic crisis in Ticino and said that it is no longer the Switzerland it once was. “Working conditions have worsened, prices have risen, and many businesses have had to close their doors. Switzerland has been transformed into a country where the rich get richer and richer and poorer, "said the deputy mayor.

To address this crisis, the Ticino government has announced support measures for traders and employees. The Business Solidarity Fund and the Employee Solidarity Fund were increased by 30% and 20% respectively, while awareness campaigns were deployed for immigrants to help them survive increasingly difficult working conditions.

In addition, the Ticino government has announced a series of rules with real amounts and dates to address the economic crisis. For example,

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Key points

Ticino, raises and traders in crisis: is it really the real Switzerland? Ticino's low cost of living, one of the main attractions for tourists and investors, is now in a situation of severe economic crisis. Rising prices and rising tariffs, due to the energy and inflationary crisis, are putting a strain on the Canton's merchants and citizens.

Concrete examples: The average monthly expenditure for a household in Ticino has decreased by about 5% in the last three months, according to data from the Federal Ministry of Finance. Food prices, in particular, have increased by 6% in the last twelve months, according to data from the Federal Department of Food Quality Information.

References to Swiss cantons or cities relevant to the topic: The city of Lugano, Ticino's largest shopping centre, has recorded a 10% increase in food prices in the last twelve months, according to data from the Swiss Federal Statistical Office.

Regulations with dates and amounts: The Federal Council has resolved to increase fuel taxes from a maximum of CHF 6.80 to CHF 7.20 per litre, effective from 1 January 2023, in response to the energy crisis.

Operational checklist: Follow these recommendations to reduce costs and prepare for the new situation:

• Household expenses: does not recommend buying non-essential goods and reducing

First day as a cross-border worker? Our practical guide walks you from cantonal registration to your first paycheck.

Source: espansionetv.it