Re :Their economy has little to fall back on, except for tourism and some chemical industry in Basel. Tourism will most probably also be wiped out by the crisis, so the mere existence of Switzerland is at stake right now.

The Swiss economy is actually pretty strong. Many international companies are headquartered in Switzerland, pharmaceutical and drug companies are based around Basel, but that isn't the entire economy, which even with the downturn isnt likely to be into minus figures this year, and is export driven. As to the banking industry not being competitive, each Canton operates is own locally applied tax system, and the government is known to be offering 100% backing to investments in many Canton banks.