Economist.com Cities Guide: Zurich Briefing - April 2006

News this month

Grounded

An investigation of the collapse of Swissair in 2001 has produced its first charges. On March 31st Zurich's public prosecution office indicted 19 former board members and executives-including two former chief executives, Mario Corti and Philippe Bruggisser-for their part in the airline's bankruptcy. Charges include dishonest management, breach of fiduciary responsibility and, most seriously, falsifying documents, which carries a maximum sentence of five years in jail. A trial in the district court of Bülach must begin before mid-2008, when a statute of limitations will come into effect.

The charges are part of an investigation into what has been called the biggest corporate debacle in Swiss history. The Zurich-based airline collapsed in October 2001 after accumulating debts of SFr 17 billion ($13 billion). The company's demise, which included the loss of 5,000 jobs, dominated Swiss headlines for months, and was seen as a blow to national pride. Swissair's downfall was so sensational that the events leading up to it were recently dramatised in a successful film.

To join or not to join

The question of whether Switzerland should join the European Union, long a pressing issue, remains as controversial as ever. A report commissioned by Zurich's government to assess the effect of EU membership on the canton came to mixed conclusions. The study, published at the end of March, reported that EU membership would improve internal security, immigration issues, health, education and research in Zurich. But the study found that other areas-including the economy, taxation and social security-were better served by Switzerland's current policy of negotiating bilateral treaties with the EU. So far the Swiss public has consistently vetoed any discussion of EU membership.

The Zurich study was carried out in 2004, but publication was delayed so as not to prejudice last year's round of voting on bilateral treaties with the EU. The updated report, according to the cantonal government, is not a policy recommendation, but a simple attempt to promote discussion. The report is one of several to be presented on the subject of EU membership this year: in February Economiesuisse, a business association, released a study that opposed EU membership. Switzerland's federal government is due to publish its own report in June, and the national association of cantonal governments will issue findings by the end of the year.

Volume control

In an effort to protect itself from a long row over noise pollution, Zurich airport has turned to canton Zurich for help. The airport, which is run by Unique, a private company, is facing more than 15,000 claims from local residents who say that air-traffic noise has lowered the value of their properties. Unique reached an agreement with the cantonal government in March that will limit the airport's liability. Airport officials estimate damages of up to SFr 1.2 billion if the claims are upheld, but the canton, which owns a 45% stake in the airport, has agreed to intervene if the amount surpasses SFr 1.1 billion. The government would lend Unique money for claims, with interest to be repaid at the market rate.

Zurich's economy minister, Rita Fuhrer, hailed the deal as a "win-win situation" that will bring financial security to both the canton and the airport. But the agreement was criticised by members of the leftish Social Democratic Party, who claimed that the decision benefited private shareholders while pushing all the risk onto the state.

Unique has already taken steps to build its own reserve against lawsuits: since 2000 passengers flying from Zurich airport have had to pay a SFr 5 tax into a "noise fund". Airlines must also contribute to the fund, with the size of their fees determined by the type of engine used by their planes. Under the new agreement with the canton, a fraction of the noise levy will go towards the government.

Top of the list

Zurich offers the best quality of life in the world, according to an annual study of cities released in April. This is the fifth year in a row that Zurich has topped the list, compiled by Mercer, a London-based human resources firm. Mercer evaluates more than 350 cities according to 39 criteria, including political, social, economic and environmental factors, personal safety and health, education, transport and other public services.

This year Mercer gave Zurich 108.2 points-compared with a benchmark score of 100 for New York-a total buoyed by a healthy political climate and fine banking and health services. The city still has room for improvement in some areas, including its airport and recreational facilities. Zurich's closest competitor is Geneva, which came in just 0.1 points behind. Vancouver ranked third, while Baghdad ranked last, with just 14.5 points.

Master builder

Rafael Moneo has been chosen to design Zurich's new SFr 300m congress centre, which is used for business meetings, trade shows and cultural events. The 68-year-old Spanish architect, who beat Switzerland's Livio Vacchini and others to win the project, has designed buildings around the world. Previous projects include Stockholm's Museum of Modern Art, Madrid's new Atocha railway station and the Cathedral of Our Lady of the Angels in Los Angeles. Mr Moneo's plans have not yet been revealed to the public, but city officials are hoping the building will be an instant landmark-and quash the notion that Zurich lacks noteworthy modern architecture.

The project is scheduled for completion by 2010, though building may be delayed by the usual bickering over design and land use that accompanies any public project. The most immediate obstacle to construction is the existing congress centre's inclusion on the canton's list of landmarks. The city plans to ask canton Zurich to remove the designation, arguing that the new building will be of greater public interest than the old.

Catch if you can

April 2006

Sechseläuten

April 23rd-24th 2006

Zurich's annual springtime festival offers a unique way to usher in warmer weather. Beginning with a children's parade on Sunday, the Sechseläuten builds to a climax on Monday with a procession of the city's once-powerful guilds. This culminates with an explosive finale in front of the opera house: a large bonfire is lit, with a three-metre tall effigy of a snowman, known as the "Böögg", perched on top. According to local tradition, the quicker the Böögg's firework-filled head explodes, the better the summer will be. This madness begins at six o'clock sharp-Sechseläuten derives its name from the six o'clock bells that were traditionally rung to tell workers in springtime when to down their tools.

The main Monday procession begins on Untere Bahnhofstrasse (near Zurich's main train station) at 3pm, moving towards Sechseläutenplatz (opposite the opera house) in time for the 6pm burning of the Böögg. Tickets for seated places: SFr10-20 (standing places free). For further details see this website.

More from the Zurich cultural calendar