Europe
Switzerland’s Neutrality Is Holding Back Its Defense Industry
Strict export rules for arms threaten the country’s small but symbolically important industry in the wake of Russia’s full-scale invasion of Ukraine.
Swiss P ammunition at the Defense and Security Equipment International 2021 exhibition in London.
Photographer: Hollie Adams/BloombergThis article is for subscribers only.
Swiss entrepreneur Peter Huber is shifting most of his defense contracting business to Portugal, as the neutrality of his home nation threatens its arms industry.
To sidestep a Swiss law that doesn’t allow locally made arms to be sent to conflict zones, Huber has expanded Systems Assembling’s operations near Porto, producing cables for armored vehicles and military aircraft. That’s come at the cost of half the 120 jobs at the firm’s Boudry headquarters in the canton of Neuchatel.