Basic statistics of Switzerland 
Executive summary 
Assessment and recommendations
-The economic recovery has been broadly balanced but risks to the outlook have increased
-The strong appreciation of the Swiss franc is threatening the export sector
-Some concerns are emerging that a housing market bubble  may start building up
-Monetary policy needs to remain expansionary
-Fiscal policy should remain prudent
-Incentives for households to leverage their wealth should be reduced
-Changes in the tax structure could strengthen potential activity
-Cross-border issues in taxation need to be addressed 
-Reform of regulation of the large internationally active banks is essential to limit potential financial risks
-Macroprudential considerations nedd to be incorporated effectively in prudential regulation
-Some reform of the regulatory framework for the small banks active in domestic lending markets help reduce potential risks further
-Meeting greenhouse gas emission reduction targets requires more cost-effective policies
-The implicit carbon price in the road transport sector is low
-The policy mix in the residential sector can be made more cost effective
-Linking the Swiss and the EU emission trading system will help, but steps are required in the transition to the new system
-Annex A1. Progress in structural reforms
Chapter 1. Making the tax system less distortive 
-The main characteristics of the  Swiss tax system
-Making the tax system more supportive of growth
-Reducing distortions in households' financial decisions
-Alleviating some negative impacts of tax decentralisation and competition on efficiency and equity
Chapter 2. Reducing risks in the financial system
-The largest Swiss financial institutions require adequate legislation to limit financial risks
-Regulation of smaller financial institutions
-Towards a new macroprudential policy framework
Chapter 3. Reducing greenhouse gas emissions in a cost effective way
-Greenhouse gas emissions reduction - meeting new challenges
-More could be done at low cost in road transport
-The policy mix in the residential sector could be made more cost effective
-Incentives to reduce emissions would have to be improved in industry and agriculture