2. Prosperity Switzerland fosters prosperity that is sustainable, thus ensuring the preservation of its high standard of living. It advocates a rules-based world economic order and a functioning financial system, and will continue to be at the forefront in education, research and innovation. It will continue to secure access to international markets for the economy, and through its development cooperation will show solidarity and contribute to prosperity throughout the world. Business environment: Foreign policy should establish and maintain a favourable business environment, both bilaterally and multilaterally. This includes open markets and a stable, rules-based global economic system. Central to this is cooperation with Switzerland’s neighbours and the EU, the country’s most important trade and economic partner. Good governance and successful economic policy form the basis for a credible foreign policy. In turn, this improves Switzerland’s economic competitiveness and standing as a business location. This policy is based on the foreign economic strategy and financial market policy and is guided by the principles of economic freedom and competitive neutrality. Photo: unsplash Global trading, financial and monetary system: Switzerland’s prosperity depends in large part on the international trade of goods and services and on cross-border investment. Digital transactions are also becoming more important. As a trade-oriented, medium-sized economy, Switzerland is reliant on the open markets, legal certainty and predictability of a rules-based global economic system. To this end, the WTO trade system is an important basis. For Switzerland’s globally integrated economy with an important financial centre and its own currency, a stable financial and monetary system is crucial. This is why Switzerland seeks to actively participate in the relevant multilateral bodies and plays a conscious role in shaping and preserving the systems. It pursues its interests in the development and implementation of international rules and standards. This concerns all areas of economic policy, regulations that have an impact on international trade, 12 cross-border investment and digital trade. In corporate taxation, including taxation of the digital economy, Switzerland advocates taxation at the place of value creation and, in so doing, promotes growth through innovation. Economic and financial agreements: In addition to the multilateral system, Switzerland concludes bilateral economic and financial agreements – including free trade agreements, investment protection agreements and double taxation agreements – and participates in plurilateral initiatives. In this way it broadens access to foreign markets and seeks access that is as non-discriminatory as possible. The agreements are an important instrument to improve the competitiveness of Switzerland as a financial centre and business location. Leading the way in education, research and innovation (ERI): Switzerland is a high-quality, globally renowned and competitive location for education, research and innovation. Key factors in this respect are its internationally active ERI players and the necessary framework conditions and resources. Switzerland proactively capitalises on emerging global trends and coordinates the national and international dimensions of ERI in a coherent and complementary manner. It is an attractive location for many top research institutions and innovation-based companies. Science diplomacy also plays a key role here. Of central importance in this respect are the objectives and instruments outlined by the Federal Council in its paper ‘Switzerland’s International Strategy on Education, Research and Innovation’.