SWITZERLAND'S rejection of membership to the European Economic Area (EEA) may have dented the confidence of the business community, but many analysts believe it will herald economic reforms which will help revive the country from the recession-hit Continent.
One analyst said policy changes should give the country some of the benefits the EEA promised to deliver, including a Gross Domestic Product (GDP) growth of between four and six per cent over 10 years - a far cry from the estimated real GDP of -0.5 per cent growth this year.
Economic growth is expected to begin its recovery over the next few years, with real GDP expected to increase to 1.5 per cent next year and 2.5 per cent in 1995.
If Switzerland had joined the EEA, economic reforms would have been forced. By rejecting the membership, the country has opted for change but change implemented by internal, rather than external, forces.
Membership of the EEA can be seen as irrelevant as long as the country institutes what many say is a long-overdue process of reform.
The GDP annual increases are likely to be higher with any implementation of economic reforms.