Switzerland · Federal Capital
Bundesstadt · Record Startup Activity 2025
Switzerland
448,000 Metro
Canton of Bern
UTC+1 (CET)
Bern is the de facto capital of Switzerland and the seat of the federal government. The city's medieval Old Town, a UNESCO World Heritage Site since 1983, remains remarkably well-preserved with its arcaded walkways and sandstone buildings. In 2025, Swiss business startups hit a record high despite a rise in bankruptcies, reflecting the country's entrepreneurial dynamism even amid economic volatility.
The Swiss National Bank (SNB) lowered its key interest rate for the fourth consecutive time in December 2024, reducing it by 0.5 percentage points to 0.5%. This monetary easing supports the economy amid low inflation—forecast to average just 0.2% in both 2025 and 2026. The Federal Government Expert Group revised GDP growth forecasts upward to 1.1% for 2026 and 1.7% for 2027.
Following the successful conclusion of bilateral negotiations between Switzerland and the European Union in December 2024, attitudes toward EU relations remain positive despite slight decline in spring 2025. The federal deficit is now expected to be just CHF 200 million versus the CHF 800 million originally budgeted. Bern's job market shows growth in technology and healthcare sectors, adapting to digitalization demands.
Medieval city center from 12th century. 6km of arcaded walkways and sandstone architecture.
Iconic 13th-century clock tower. Astronomical clock and mechanical figurines since 1530.
Bear Park housing Bern's symbol animal. Modern 6,000m² riverside habitat.
Switzerland's tallest church spire at 100m. Gothic cathedral started 1421.
Seat of Swiss parliament and government. Renaissance Revival dome and public tours.
Albert Einstein's apartment 1903-1905. Where special relativity was conceived.
Bern's economy centers on government administration, education, and services. The SNB's rate cuts to 0.5% support real incomes amid low inflation. Technology and healthcare job markets show positive growth. Record startup activity in 2025 demonstrates Swiss entrepreneurial resilience. The expected federal deficit reduction to CHF 200 million reflects sound fiscal management.
Swiss culture in Bern blends German-speaking traditions with federal cosmopolitanism. The Einstein Museum and History Museum preserve scientific and historical heritage. Markets, festivals, and the annual Onion Market (Zibelemärit) maintain local traditions. The river Aare flows around the Old Town peninsula, offering swimming in summer. Bear symbolism—from the city's name to BärenPark—reflects centuries of identity.
Bern was founded in 1191 by Duke Berthold V of Zähringen, who legend says named the city after a bear he killed nearby. The city joined the Swiss Confederation in 1353 and became the federal capital in 1848. The medieval street plan and buildings survived intact, earning UNESCO World Heritage status in 1983.
The 20th century brought international prominence—Einstein developed special relativity here in 1905. Switzerland's neutrality preserved Bern through two world wars. Today's challenges include EU relations following the December 2024 bilateral agreement, managing US tariff impacts, and maintaining competitiveness. The city balances tradition with innovation, heritage preservation with modern governance.
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