Chocolate Wars

Perhaps fairly civil chocolate "wars" could happen only in Switzerland.  But it turns out that, unbeknownst to me, lost in my little cocoon, such chocolate warfare has been happening right on my doorstep.

According to today's Geneva Tribune, the little Confiserie de la Fontaine, quite visibly located on our quaint medieval main main street, is locked in a legal battle, referred to by the Tribune as a bisbille (squabble or falling out) with the recently-opened (Fall 2012) Chocolaterie Banchet.

As explained in the article, M Banchet (the father) was originally the owner of the Confiserie de la Fontaine, but sold his business in 2011 to another couple, the Bichets, who have been running the busines quite successfully since.  As one can see, there is already a small problem in that the names themselves are very similar at first blush - which should possibly have, in itself, raised a small red flag to the purchasers.

In any event, the sales contract stipulated that the Bichets would undertake to purchase chocolate produced by M Banchet fils for a five-year period, during which time no new chocolate business would be opened to compete with them.  When M Banchet fils opened his own chocolate business last fall not far from the local gare (train station), the Bichets promptly sued him for concurrence deloyale (unfair trade competition).

Unfortunately, the Bichets had apparently not read the fine print in their sales contract.  The court ultimately determined that the anti-competition clause applied only to M Banchet the father and not at all to the son.  The Bichets thus had no cause of action and no legal remedy.

It turns out that the relationship between the two families is even more contractually intertwined - at least for another three years.  The Bichets make their own chocolate in the same premises - rented from M Banchet the father - that M Banchet fils uses for his own business.

Still, because both establishments make excellent chocolates and we in the general area appreciate chocolate very much, it is difficult to be too dismayed at the prospect of more - and presumably even improving quality  - chocolate so close by.  There are enough of us to keep both businesses going.  And then some.  But, if one of them could develop a delicious chocolate that we normal people could eat without adding the commensurate poundage, that one would definitely "win" the competition so far as I am concerned.

In the meantime, we're - almost - all winners!  Mmmmmm!

Greater Geneva

When people ask me where I live, my answer is usually that I live in "the Geneva area of Switzerland," mainly because Geneva is much better known and thus more easily visualized than the tiny village (commune) where I actually reside. In fact, I can now begin using the term, "Greater Geneva, (le Grand Geneve) accurately. Within the last month, this conurbation (and yes, I learned a new word!) of three French departments (Ain, Haute-Savoie and Rhone-Alpes) and two Swiss cantons (Geneva and Vaud) has officially been dubbed Greater Geneva.

While the name itself is new, this agglomeration project has been on the drawing boards since the 1970s because of the large numbers of people employed in Geneva - generally for the international organizations that are based there - but who live outside Geneva canton, either in France or in Vaud. It wasn't until the late 1990s, however, that it took concrete form with the publication of the "Charte d'aménagement de l'agglomération transfrontalière franco-valdo-genevoise" (France-Vaud-Geneva Conurbation Development Charter). While there were many starts and stops along the way, the Charter was signed by the partners in 2007 and the project was officially launched. It allows for the creation of a coordination and administrative level and defines the grand organization principles for the region that are to be achieved by 2030, as shown below.

To be precise, not all parts of each French department or Swiss canton named are actually included within this conurbation. It is only those regions that are in close proximity to Geneva. My village, being located in the western district of Vaud, with its regional administrative center located in nearby Nyon, is indeed included within Greater Geneva.


The area is home to approximately 730,000 inhabitants, 500,000 of whom live in Switzerland. Contrast this with the population of my birth state of Montana, which is approximately the size of the country of France. The population of that whole state is just shy of one million. Despite what might be seen as congestion by my fellow Montanans, this area is a shining example of how humans can co-exist harmoniously not only with their fellow humans from all over the world, but with the native flora and fauna.


I never feel crowded here.


    

On Shaky Ground

In light of the continuing financial, environmental and other impacts from the devastating Tōhoku earthquake and tsunami that struck Japan in March, the lead article in today's real estate supplement to the local newspaper discussed the growing concern that the great majority of buildings in Switzerland would not withstand a strong earthquake should anything similar occur here.

From a global perspective, the risk of a catastrophic earthquake in Switzerland is considered quite moderate.  It is not a comparatively major trouble spot.  And whatever risk does exist varies largely among the regions.  For example, the risk is particularly high in Valais, Basel, Central Switzerland, Engadine and Saint-Galler-Rheinthal.  To drive this point home, the article listed the nine most powerful earthquakes recorded in the history of the Swiss Confederation as follows:

              Churwalden (Grisons): 3 September 1295
              Basel (Basel): 18 October 1356
              Ardon (Valais): April 1524
              Aigle (Vaud): 11 March 1584
              Central Switzerland: 18 September 1601
              Brigue-Naters (Valais): 9 December 1755
              Altdorf (Uri): 10 September 1774
              Viège, aka Visp (Valais): 25 July 1855
              Sierre (Valais):  25 January 1946

All of these earthquakes were located quite naturally in mountainous areas.  Fortunately for me, the area around Lake Geneva is not a high-risk earthquake area.  Of course, as we have seen from the earthquake in Japan, one does not actually have to be in an earthquake area to have one's life changed by it.

One concern is that earthquake insurance is not required in Switzerland, even though coverage is available through Swiss Re for those who wish to obtain it and costs about CHF 100 per CHF 500,000 worth of coverage.  Yet, of all possible natural disasters, the risk of earthquakes ranks highest here.  Some cantons, such as Vaud where I live, require that flood and fire coverage be purchased for real estate holdings, in addition to regular comprehensive insurance.  The cost is reasonable.  Because my own property is located very close to a major lake floodplain, I believe that the flood coverage especially makes sense.

In 2003, there was a parliamentary initiative at the Federal level to strengthen protective coverage for natural disasters generally, but the political right and the cantons themselves opposed it and so it never came to anything.  In 2005, private insurance companies and cantonal insurers actually agreed on a similar proposal.  Once again, the political right, this time allied with the association of property managers, defeated it.  So today, it's up to individual owners.

The concern is that Swiss society, like that of any other industrialized society, has become more vulnerable in modern times.  It is not only individual buildings and homes that would be affected but also major infrastructures such as telecommunications and electrical systems, food provisioning and water systems.  In such a context, the consequences of a major earthquake in Switzerland could be terrible.

According to one estimate from Swiss Re, an earthquake on the scale of that in the region of Basel in 1356, with an estimated magnitude of 6.5, could cause damages amounting to CHF 80 billion, three-quarters of which would result from damages to and loss of real estate.  To that amount, one would still need to add another CHF 20 billion for financial consequences resulting from infrastructure destruction and loss of productivity.  Apart from the economic impact, the human toll would be devastating, with thousands dead or gravely injured and hundreds left homeless.

Sobering thoughts indeed.

Coming in like a lion

The saying goes, "If March comes in like a lion, it will go out like a lamb." 

Based on the day I've had so far, March's entrance has pretty much been "meh," not lion-ish at all.  It's quite chilly and gloomy - in other words, there's not been much change since February. 

There are better reasons than the weather to dread March hereabouts.  March is tax month in Switzerland.  For those of us who must settle accounts with more than one tax authority, it's a one-two punch.  As a US citizen, once I've finished with Swiss taxes, it's time to give the IRS its due.  Frankly, the "ordeal" is much over-rated, IMO.  In my experience, both tax bites have been reasonable.  There is also a bilateral arrangement between the countries to ensure that one isn't taxed twice on the same income.

Taxes are the price we pay to live in an enlightened, educated, secure, functional and civilized society.  The progressive income tax is one method of ensuring that those who benefit most from the outlays that ensure this society also pay a share of those costs.  Make no mistake, taxes - by other names - have always been with us.  But if it is always and only those few in whose hands financial resources are preponderantly concentrated, i.e., the top two percent, who do not pay their fair share, how is capitalism really much different from feudalism?  Hmmm.

Speaking of fiscal matters, ECA International, a firm specializing in international relocations, has determined that Geneva is the 10th most expensive city in the world for rental apartments, based on an average monthly rental of EUR 1,794 (USD 2,479) for a three-room (80 sq meter = approx. 861 sq ft) apartment.  Zurich is ranked 20th in this category.   Among cities located in Europe only, Geneva ranks third, after Moscow and London.  Zurich comes in 8th.  Those of us who live here need no reminders of the expense.  When prices begin to seem reasonable, then we've been here too long, or so the saying goes.

Still, we can be very thankful that we're not living in Asia.  Costs of renting an apartment in Tokyo, Hong Kong or Singapore make the costs in Geneva almost look reasonable.  I guess that it's all in the perspective.