Profile
The National Economic Supply organisation (NES) consists of 250 experts drawn from the private sector and public authorities, alongside the Federal Office for National Economic Supply (FONES). NES measures are designed to avert or manage severe shortages of essential goods and services. The NES is headed by the Delegate for National Economic Supply, who also serves as the director of FONES.
Business and government cooperation
Within the NES, business and the state work closely together. Experts from a range of economic sectors contribute their practical experience and specialist knowledge. This is complemented by administrative authorities’ own suggestions and advice on the political and legal options available. Together, the NES develops effective, practical measures based on existing economic structures to deal with severe shortages. The Federal Council decides on their implementation.
In the case of essential goods, NES measures are used to increase supply or manage demand. For essential services, the focus is on ensuring they remain operational or deciding which to prioritise.
The NES generally responds to shortages by focusing on the supply side. Releasing compulsory stocks, promoting imports and imposing export restrictions are all measures that can help with this. Demand-side management is also possible. Options include introducing electricity quotas for large consumers or rationing fuel or food. All market interventions are temporary.
However, the following principle always applies: the private sector is responsible for ensuring supplies in Switzerland. The federal government does not create any supply infrastructures of its own.
Preparation and intervention
The NES focuses its efforts on prevention and management. One of its ongoing tasks is to monitor and analyse the supply situation.
Prevention
State intervention in the market should be avoided for as long as possible. As such, the private sector and the state work together to develop measures to strengthen supply processes. The focus is, of course, on voluntary measures by the private sector. Where there is no other alternative and it is in the country’s best interests, the federal government mandates selected measures to improve resilience – for example, compulsory stockpiling. The general public is also advised to keep emergency stocks.
Management
The Federal Council may temporarily intervene in market activities if the private sector is no longer able to fulfil its supply mandate. In general, supply-side measures are implemented first.
Examples of management measures are:
- Release of compulsory mineral oil stocks
In autumn 2022, a combination of historically low water levels on the Rhine and major issues in international rail transport threatened to severely restrict Switzerland's access to mineral oil products. Compulsory stocks were able to meet normal demand throughout this period. - Increased capacity in road freight transport
During the COVID-19 pandemic, Sunday and night driving bans were lifted to increase road transport capacity for critical goods. - Restrictions on rabies vaccine use
In February 2024, in addition to the release of compulsory stocks, the use of rabies vaccine from compulsory stocks was restricted to people who had been exposed to the pathogen or were at high risk of infection for occupational reasons.
Monitoring and analysis
The NES continuously monitors and analyses the supply situation for essential goods and services. To help with this, it uses existing sources and collects its own data. It then coordinates its findings with other federal stakeholders involved in security issues. The decision as to whether a measure is appropriate and how to implement it and the assessment of its expected impact on the supply situation are based on an integrated operational picture.
Principles
Cooperation
The NES is a collaborative partnership between the private sector and the state. This combined expertise is used to develop effective measures within existing structures.
Subsidiarity
Supplying the country with goods and services is fundamentally a matter for the private sector. The state may only intervene if private industry is no longer able to fulfil this role.
Networking
Within the NES, representatives from various sectors of the economy take on a leading role, providing their market knowledge, expertise and industry connections. In this way, they make an important contribution to ensuring that government measures are accepted, enforced and implemented.