For some time now, the global order has been characterised by growing multipolarity. The search for common solutions in multilateral bodies has become more difficult. The governance and legitimacy of international organisations are being called into question.
Linked to this is a shift from a rules-based to a power-based global financial and economic system. Demands are often implemented through standards, recommendations and principles without legally binding status, or through reciprocal peer reviews. Often, they are enforced through unilateral mechanisms or sanctions with an extraterritorial reach. National interests are usually behind such approaches.
This has a particular impact on small and medium-sized countries that do not belong to a political alliance and are heavily integrated into global value chains, such as Switzerland. In the areas of finance and tax, this has led to a global competition for influence, for leadership of the debate and for a bigger share of global value added.
Access to foreign markets remains a constant challenge for the Swiss financial centre, owing to increasing access barriers and stricter regulatory requirements.