Bern seeks exemptions to revive industry and permit re-exports to Ukraine.

The Swiss Federal Council has proposed softening the country’s strict arms‑export law by granting 25 Western countries exemptions that would allow them to pass Swiss-made materiel to Ukraine. Switzerland’s neutrality currently forbids deliveries to warring states and blocks re-exports, a stance that scuppered Dutch plans to supply Leopard 1 tanks and Germany’s shipments of Gepard anti-aircraft ammunition.

The move follows mounting pressure from a defence sector that has lagged behind Europe’s wartime boom. Executives such as Marcus Graf of Thales in Zürich argue licensing hurdles sap competitiveness, while industry group Swiss ASD’s lobbyist Matthias Zoller says some firms have shed jobs even as Germany’s Rheinmetall has surged. NATO buyers increasingly avoid Swiss components, with Zoller warning they could be unusable even in a collective-defence scenario.

The proposal now goes to the National Council, where a majority appears possible, though the Greens and Switzerland’s Social Democratic Party (SP) oppose it. SP lawmaker Fabian Molina contends that singling out Western states undermines Switzerland’s role as a neutral intermediary and risks diversion, saying exports should be limited to self‑defence — for example Ukraine — and barred to authoritarian regimes.

Any reform is likely to face a referendum. Even then, the Federal Council would retain a veto over deals, potentially keeping Swiss products less attractive than German or French alternatives. Zoller estimates it could take 10 to 15 years to rebuild trust among Western customers.

Source: NOS