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ENERGY

Swiss drivers fuel a cross-border rift with France

As petrol is cheaper in France than in Switzerland at the moment, many Geneva residents cross the border to fuel up their cars. However France's cheaper prices are ultimately funded by the French taxpayer, and some French officials are none too happy about this 'pump tourism'.

Swiss drivers fuel a cross-border rift with France
Swiss motorists are fuelling up their cars at French pumps. Image by IADE-Michoko from Pixabay

Geneva area residents have been shopping in nearby France for years, as most goods are cheaper on the other side of the border.

It is not unusual to see cars with Geneva and Vaud registration plates in parking lots of French supermarkets, and this practice, known as ‘shopping tourism’, has been boosting the economies of border regions for decades.

Lately, however, ‘shopping tourism’ has spawned off a new phenomenon dubbed ‘pump tourism’, as an increasing number of cars from Switzerland fill up at French petrol stations with cheaper petrol/gasoline or diesel.

A litre of fuel in Geneva now costs 2.20 francs, while the price is €1.80 just across the border. Given the exceptionally strong franc and favourable (for the Swiss) exchange rate — €1.04 for 1 franc — buying a full tank of gasoline in Haute-Savoie makes financial sense.

READ MORE: Petrol to top CHF2 per litre in several Swiss cantons

But the cheaper pump prices in France are the result of the government fuel rebate of 18 cents per litre – as this is ultimately funded by the French taxpayer, some of the French are none too happy about Swiss motorists benefiting.

Loïc Hervé, a senator from Haute-Savoie, suggested that the Swiss are taking advantage of French state aid on the price of fuel in France.

“We absolutely have to give priority to French people.  We should not be helping out the rich, the Swiss, and foreign tourists. It’s as simple as that”, Hervé, told Tribune de Genève in an interview.

Geneva State Councilor Mauro Poggia swiftly responded to Hervé’s comments, pointing out that cross-border workers from France have been benefiting for years from perks offered by Swiss employers, such as higher salaries.

READ MORE: EXPLAINED: Who can work in Switzerland but live in a neighbouring country?

“And let’s not forget that the French also fill up their cars in Geneva before returning home, and it hasn’t bothered anyone”, he said.

In fact, before Russia invaded Ukraine in February, unleaded gas was less expensive in Switzerland than in France.

The reason this is no longer the case is that France, along with Switzerland’s other neighbours, Germany, Italy, and Austria, have put in place a fuel rebate on petrol and diesel – at present this is 18 cents per litre, but it will rise to 30 cents per litre in September.

The Swiss government was considering a similar tax cut as well, but the Council of States rejected this proposal in June amid concerns about how to compensate for the lost revenue. 

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COST OF LIVING

One in 10 struggle to make ends meet: Poverty in Switzerland revealed

Switzerland is one of the wealthiest countries in the world which contributes to overall high satisfaction, but many people still have financial worries.

One in 10 struggle to make ends meet: Poverty in Switzerland revealed

People in Switzerland have the highest level of life satisfaction in Europe, according to a study published his week by the Federal Statistical Office (FSO).

However, that doesn’t mean that everyone in the Alpine nation is satisfied with their quality of life. 

According to the FSO, who carried out the survey on income, poverty and living conditions in 2022, almost one in 10 people in Switzerland struggled to make ends meet financially, and nearly 5 percent of the population had to do without important goods, services and social activities due to financial reasons.

The poverty rate in Switzerland was measured as 8.2 percent. 

READ ALSO: The Swiss cantons with the highest (and lowest) incomes

How satisfied are people in Switzerland?

On a scale of 0 to 10, the mean score for satisfaction with current lifestyle in Switzerland was 8, compared to 7.9 in Austria, 7.2 in Italy, 7.0 in France and 6.5 in Germany. In Switzerland, life satisfaction has hardly changed since 2014 and increases with age, level of education and income.

The population is particularly satisfied in interpersonal areas such as living together, the working atmosphere and personal relationships. More than half of people aged 16 and over were very satisfied in these areas in 2022 (scores of 9 or 10). In contrast, only one in three people were very satisfied with their leisure time or personal financial situation.

A person works on a laptop.

People were generally happy with work in Switzerland. Image by StartupStockPhotos from Pixabay

The FSO measured the general standard of living on the basis of the median available disposable income, whereby the price level differences between the countries were corrected. In Switzerland, disposable income is 2.5 times as high as in Greece, 1.5 times as high as in Italy, 1.3 times as high as in France, 1.2 times as high as in Germany and 1.1 times as high as in Austria.

The FSO said: “Despite the high price level in Switzerland, the population’s standard of living is therefore higher than in neighbouring countries and the majority of EU countries.”

But there are stark differences between living conditions in Switzerland, a country of around 9 million people. 

In 2022, 9.9 percent of Swiss residents had difficulty making ends meet at the end of the month and 4.9 percent of the population were affected by material and social deprivation, according to the survey. This means that they had to do without important goods, services and social activities such as new clothes, regular leisure activities or meetings with friends for financial reasons, were unable to pay their bills on time or couldn’t pay for unexpected expenses.

As you would expect, those struggling to make ends meet have a significantly lower level of life satisfaction. In 2022, only one in nine of those facing financial issues were satisfied with their lives (10.9 percent vs. 37.9 percent of the total population). This group also stated that they felt discouraged or depressed most or all of the time (24.3 percent vs. 5.4 percent of the total population) and were less likely to be happy most or all of the time (37.1 percent vs. 76.6 percent of the total population).

How many people in Switzerland are in poverty?

In Switzerland, 8.2 percent of the population had low levels of income in 2022 – this corresponds to around 702,000 people. The poverty rate was therefore lower than in the previous year (8.7 percent), but the difference is not statistically significant, researchers said.

Furthermore, the price increases for electricity, heating costs and consumer goods since 2022 are not yet reflected in these figures. Although Switzerland has been shielded from severe inflation hikes seen elsewhere in Europe in the wake of Russia’s war on Ukraine, consumer prices have still gone up.

As in previous years, foreign nationals, people in single-parent households, people without further education and those in families or households where there are high levels of unemployment are frequently affected by income poverty. At 3.8 percent (144,000 people), the poverty rate among the working population was also slightly lower than in the previous year (4.2 percent), but again, researchers said that this development is not viewed as significant. 

In a previous study by the statistical office, the parts of Switzerland with the lowest incomes were found to be the cantons of Jura, Valais, and Ticino.

READ ALSO: Where are the poorest parts of Switzerland?

The poverty threshold comes from the guidelines of the Swiss Conference on Social Welfare (SKOS). In 2022 this amounted to an average of CHF 2,284 per month for an individual and CHF 4,010 per month for a family.

This income threshold is higher in Switzerland than elsewhere, but the cost of living is higher as well. 

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