©2012 Chappatte, distributed by Globe Cartoon. More cartoons on Chappatte’s web site. Geneva-based Patrick Chappatte works for the International Herald Tribune, for Geneva newspaper Le Temps, and for NZZ am Sonntag. All cartoons reproduced with permission.
©2012 Chappatte, distributed by Globe Cartoon. More cartoons on Chappatte’s web site. Geneva-based Patrick Chappatte works for the International Herald Tribune, for Geneva newspaper Le Temps, and for NZZ am Sonntag. All cartoons reproduced with permission.
Arab spring played a role
Numbers are impressive but it’s the criminal tales that are gripping
Growth in reporting of suspicious financial activity shows significant jump
BERN, SWITZERLAND – Switzerland saw a 40 percent increase in 2011 in the number of suspicious activities reports (Sars) to MROS, the Money Laundering Reporting Office Switzerland, the federal office shows in its annual report published Monday 14 May.
Banks and other financial groups, required by law to report suspicious activity, filed 1,625 Sars in 2011. Of these, 91 percent were forwarded after “careful analysis” to judicial authorities, federal or cantonal, for prosecution. The total asset value was more than CHF3 billion, greater than the combined value of Sars from 2009 and 2010 and a record figure.
“In 2011, 1,625 SARs generated a total asset value of just under CHF 3.3 billion (2010: CHF850 million from 1,159 SARs),” the report notes.
Two-thirds of the reports were triggered by media reports (30 percent of information sources) combined with third party information and information from prosecuting attorneys, which “show(s) that financial intermediaries use modern resources and consult external sources in order to gather information for their inquiries, which is then evaluated and condensed into a considerable number of Sars sent to MROS”, the report indicates.
Seven cases of bribery had total assets of CHF791 million each
The huge increase underscores the continuing progress made against money laundering in Switzerland over the past 10 years but it also provides a window to some significant shifts in money laundering globally. The average asset value in 2011 was approximately CHF2 million, compared to CHF731,000 a year earlier. The sudden jump shows a small number of cases, notably bribery in the Middle East and in particular in Egypt, that involve much larger sums than the cases in 2010. Seven cases of bribery had total assets valued at CHF791m each.
Four cases of online gaming had a total assets value of CHF560m each.
Eight cases had a total asset value of nearly CHF200m each, while in 2010 none of the reported cases had a total assets value over CHF100m.
Types of crimes reported are shifting
Fraud remains the largest group of crimes reported, but the numbers are down slightly due to a change in reporting. Computer fraud, mainly phishing, has been retroactively put into a category of its own starting with 2007. MROS says the report “shows that ‘phishing’ remains a topical subject and that financial intermediaries consistently report the account details of financial agents or ‘money mules’ to MROS”.
A second group, money laundering, consists of activities that are not technically money laundering crimes “despite the fact that the modus operandi suggested acts of money laundering. The increase is due not only to one reported case involving numerous business connections, but also to the general increase in the number of SARs in 2011.”
The drugs category consists of reports linked to “the street sale of drugs by nationals of sub-Saharan African states and the financial transactions associated therewith (money exchange, money transmitting)”.
BERN, SWITZERLAND – A hot debate in recent months in Switzerland has been over how much money should be spent on new fighter jets and whether to buy them from France or Sweden. Meanwhile, the Swiss army reportedly has opted to spend CHF7 million for new transport on the other end of the speed spectrum, buying 2,800 top of the line bicycles from Zurich manufacturer Simpel, according to NZZ and news service ats. Price tag: CHF2,500 each, if the reports are right.
The army last had a bicycle unit in 2003, but bikes are still widely used and the current models are 20 years old.
The army has not publicly confirmed the deal, but Simpel’s founder, Philip Douglas, confirmed to ats that the contract is expected to be signed this week. The 15-kilo, 8-speed bicycle will be used for soldiers to get exercise and for deliveries on army bases.
Swiss army bikes and accessories have long been a collector’s item.
©2012 Chappatte, distributed by Globe Cartoon. More cartoons on Chappatte’s web site. Geneva-based Patrick Chappatte works for the International Herald Tribune, for Geneva newspaper Le Temps, and for NZZ am Sonntag. All cartoons reproduced with permission.
GENEVA, SWITZERLAND – Angela Merkel, German chancellor, has her first-ever meeting with her new French counterpart, Francois Hollande, who takes office as president Tuesday 15 May before flying to Berlin.
The two meet the day after eurozone finance ministers get together, Monday, to find a way forward with policy, just as voters are moving towards more extreme positions in a number of country’s.
Merkel’s own Christian Democrat party lost heavily in the key state of North-Rhine Westphalia Sunday and Greece is finding it increasingly difficult to put together a coalition government. Merkel continues to push for austerity as the key to solving the eurozone economic crisis, while Hollande campaigned for office on a platform of increasing spending.
The Guardian offers a glum picutre, “Against a background of intense volatility, Europe was pulled in opposing directions by voters, protests, and political paralysis at the weekend, deepening uncertainty over its future shape and gnawing away at the prospects for the euro‘s survival as a 17-country union.”
Reuters earlier reported on the OECD’s latest figures: “Economic activity in the euro zone is diverging, with Germany leading a group of economies showing slightly more positive signals while France and Italy are posting sluggish activity below long-term trends, the OECD said on Thursday.”
BERN, SWITZERLAND – Switzerland’s closely-watched numbers of asylum-seekers rose by 7.9 percent in April, compared to March, showing a continuing significant increase. The countries of origin were markedly different compared to the previous month, however.
The country’s relatively high number of foreigners, 22.3 percent of the population and the highest percentage in Europe except for tiny Luxembourg and Liechtenstein, does not include the figures for asylum seekers.
Both are on the rise, adding fuel to the debate over Swiss immigration policies.
The far-right UDC People’s Party in March 2012 handed in enough signatures for a popular referendum, “Against mass immigration”, and although the vote is not yet scheduled, both sides are building their arguments
GENEVA, SWITZERLAND – Michele Bachmann, US congresswoman from Minnesota, has decided not to be Swiss after all, in the wake of media brouhaha over her decision to take up citizenship in a Thurgau village along with the rest of her family. Her husband, technically a Swiss and US dual national at birth, only decided to register as a citizen in March 2012. Bachmann, under laws that were in effect until 1992 in Switzerland, automatically became Swiss by virtue of marrying a Swiss man.
She announced the news on her House of Representatives website: “Today I sent a letter to the Swiss Consulate requesting withdrawal of my dual Swiss citizenship, which was conferred upon me by operation of Swiss law when I married my husband in 1978. I took this action because I want to make it perfectly clear: I was born in America and I am a proud American citizen. I am, and always have been, 100 percent committed to our United States Constitution and the United States of America. As the daughter of an Air Force veteran, stepdaughter of an Army veteran and sister of a Navy veteran, I am proud of my allegiance to the greatest nation the world has ever known.”
Fortunately for Bachmann, renouncing her Swiss citizenship will be far easier than giving up a US passport would be: she will not have to pay $450 or swear that she will file any outstanding tax forms with the Swiss government for the past several years (since she presumably has not been filing Swiss taxes) as she would have to do if she gave up her US passport instead.
BERN, SWITZERLAND – Switzerland officially lifts all sanctions against Myanmar/Burma 10 May, except arms embargoes and sanctions against materials that could be used for repression. The government made the decision to do so at the end of April but asked the Federal Department for the Economy to draw up a plan of action. This was approved by the Federal Council yesterday and goes into effect today.
BERN, SWITZERLAND – The Swiss government recommended Wednesday 9 May that citizens vote against an upcoming popular initiative that would end reimbursement for abortions under the mandatory health insurance system. The cabinet said, after studying the proposal that will go to voters, that economic considerations should not come into play when a woman is weighting moral, theological, socio-ethical criteria when deciding whether or not to interrupt a pregnancy.
The popular initiative argues for abortions not to be reimbursed on financial grounds. The Federal Council argues that the savings of CHF8 million cannot be justified for a number of reasons, not least of which is the financial uncertainty it would cause for women who are making this decision, with the likelihood that some would turn to less costly but less safe solutions.
Switzerland’s current legislation, passed by a popular vote with more than 72 percent backing in 2002, requires that abortions be done under good conditions and that a woman request an abortion in writing.
The Swiss have a very low abortion rate compared to other European countries, according to the Federal Council, and the rate has been falling since 2004, especially among 15- to 19-year-olds.
BERN, SWITZERLAND – Switzerland added its doubts to Acta (Anti-Counterfeiting Trade Agreement) a day after the German parliament was told Germany is advising developing countries not to back it. The Swiss Federal Council noted 9 May that it will not sign the agreement.
Acta, a plurilateral agreement, “has been negotiated as a “TRIPS-plus” (going beyond the World Trade Organization Agreement on Trade-Related Aspects of Intellectual Property Rights) standard for the enforcement of IP rights between the European Union member states, the United States and nine additional countries since 2007,” reports IP Watch, but in recent months it has come up against growing opposition from several corners. IP Watch, an industry newsletter, raised the question 15 April if the Group of 8 was reacting to Acta’s impending death: “it may have signalled a shift to a narrower approach on intellectual property rights” at a meeting a week earlier.
The Federal Council Wednesday says that since negotiations were concluded “criticism of Acta has continued to grow in a number of countries. The Federal Council is taking these fears seriously because they concern fundamental liberties and important legal provisions.”
BERN, SWITZERLAND – Germany, the UK and now Italy: Switzerland’s southern neighbour is the latest to enter into talks with Bern over ways to get more of its citizens money into the taxman’s hands. A steering group has been set up and will meet for the first time 24 May to consider several financial and tax issues, but one of them has already been resolved: an outstanding payment of the “retrocession for cross-border commuters” has been resolved, says Bern, and the payment order in favour of Italy has been issued.
Widmer-Schlumpf and Monti to meet soon
The Federal Department of Finance and the Italian Ministry of Economy and Finance announced Wednesday 9 May that a working visit will soon take place between President Eveline Widmer-Schlumpf and the President of the Council of Ministers of of Italy, Mario Monti.
The announcement follows a working session in Bern Wednesday between State Secretary Michael Ambühl, head of the State Secretariat for International Financial Matters (SIF), and Italian Ambassador Carlo Baldocci, diplomatic adviser to the Italian Ministry of Economy and Finance.
The two “discussed various financial and tax issues. Also in light of the recent developments in the European Union, their discussions included the model for an agreement on the regularization of assets held in Switzerland by non-resident taxpayers and the introduction of a withholding tax on future investment income, as well as access to financial markets, existing black lists, the revision of the double taxation agreement (also with reference to the exchange of information) and the agreement regarding the taxation of cross-border commuters.”
Most measures demanded are already in upcoming changes to law, says Federal Council
Swiss law to crack down on unsafe drivers, with or without popular vote
BERN, SWITZERLAND – The Swiss Federal Council Wednesday 9 May told Parliament it will not back a popular initiative calling for tougher measures against “chauffards” or road hogs, particularly those who injure or kill others. The cabinet says the proposal duplicates pending changes to legislation in two areas, a project to harmonize criminal penalties in a number of areas and the Via Secura road project.
The popular initiative calls for stiffer penalties: a driver’s license would be taken away for a longer period, fines would be heavier and their cars would be confiscated with the proceeds from sales going to help victims of road accidents. The government says the “quasi-totality” of these measures is covered by the pending legislation, but a final measure, to take away a driver’s license as a preventive action when serious charges are pending against a driver, was rejected by the council because it goes against the presumption of innocence.
Via Secura is making its way through parliamentary commissions of both houses, which have debated a number of details this winter, including limiting the duration of some driver’s licenses and setting a minimum age for cyclists.
The harmonization project calls for stronger penalties in the case of serious injury, putting the lives of others in danger or for homicide by negligence. The only difference here, compared to the initiative, says Bern, is that no minimum penalty is set for homicide by negligence or serious injuries due to negligence. On the other hand, the maximum penalties are increased.
Switzerland in 2011 had
You read that right: former US presidential candidate confirms she is officially Swiss
Bachmann’s dual citizenship muddles more than the Tea Party
GENEVA, SWITZERLAND – The ranks of dual US-Swiss citizens have just been plumped by former US presidential candidate Michele Bachmann from Minnesota, whoe certainly knows how to wax poetic about the old country, which the family frequently visits.
Bachmann’s husband was interviewed by Swiss-German international television Tagesschau during a visit by Swiss parliamentarians to Washington, about her husband, son of Swiss immigrants to Wisconsin, and their children taking up their inherited Swiss nationality. The reporter is quoted by US media as saying that a wife of a Swiss citizen automatically becomes Swiss, which is incorrect: he in fact says that all the rules were followed. The law changed in 1992 and the wife of a Swiss citizen must actively apply to become Swiss today, not formerly the situation, but an expedited process can be used. The same is true for children of a Swiss citizens, in some situations.
The fact that the Bachmanns were married in 1978 appears to have given them the option to register their marriage with the commune in Switzerland in March, and include the entire family in the official Family Certificate document, which is necessary for a Swiss passport.
A Swiss embassy official in the US confirmed to WRS radio in Geneva Wednesday that he was told by the Bachmann family’s commune that they registered their marriage with a commune in March.
Becoming Swiss isn’t automatic for spouses, some children
The news zoomed around the US that Michele Bachmann has become Swiss, although Bachmann herself doesn’t say so in the televised interview. The TV station said it had confirmation that 19 March the entire family took up citizenship in Wigoltingen, canton Thurgau (the bumpf on spouses of Swiss citizens, from the federal government). One niggling detail seems a little difficult to verify: “The applicant receives the citizenship of the canton and commune of his or her Swiss spouse. Article 26 of the Citizenship Act requires by analogy that the applicant be integrated into Swiss life …”
The reports making the rounds in the US also state that the children are automatically citizens because their father claimed his citizenship in March 2012, but this would apply only to children born after 2006, so the Bachmann children, like their mother, had to actively register as citizens. Technically, this makes the sons liable for military duty, but overseas Swiss are frequently able to avoid this and at age 28, eldest son Lucas is past the normal recruitment age and Harrison, who has been teaching for two years, is also unlikely to be chased by his local Swiss recruiting centre.
Tax benefits a myth for dual citizens
The biggest blooper made by some of the media picking up the story is the innuendo that the Bachmanns could ultimately avoid US taxes by becoming Swiss, overlooking the fact that dual US-Swiss citizens have to file taxes in both countries, and future US taxes could be avoided only if taxes due were first paid and then the Bachmanns renounced their US citizenship, making it clear they were not doing it for tax reasons. This would probably be accepted only if they have lived in Switzerland, based on accounts from US citizens who have renounced their citizenship there.
The Bachmanns, as Swiss citizens, may or may not have a Swiss bank account – the Swiss TV reporter didn’t ask – but given the media play given to Republican candidate Mitt Romney’s offshore Swiss account, the question is likely to be raised in the US. For the Swiss abroad, living in the US, who are finding that Swiss banks are closing their accounts, and for Americans living in Switzerland who have the same problem because of the cost and potential problems with the IRS for the banks, any special treatment the Bachmanns might receive would not go down well.
Michele Bachmann worked for the IRS as an attorney from 1988 to 1993, leaving when she became a mother.
The Bachmanns say they claimed Swiss citizenship for their children, Tagesschau reports; oldest son Lucas, a medical student, has already spent some time in Switzerland and a passport gives the children the right to work here. They may, however, find it difficult to open a bank account to pay their rent, the case with a growing number of dual nationals with US and Swiss citizenship.
Bachmann laughed at the interviewer’s suggestion that she could now run for president of Switzerland. But she might want to study this a little more closely, since being female wouldn’t be the issue it was in the US: Switzerland has already had three women presidents.
Hollywood Reporter interviews Bachmann children, January 2012
GENEVA, SWITZERLAND – Johann Schneider-Ammann, Swiss minister for the economy, met Monday 7 May with Geneva cantonal authorities and senior executives from Merck Serono, which announced a week ago it will be closing its Geneva European head office and cutting 700 jobs. Schneider-Ammann, who labeled the decision to close down Geneva operations and cut back staff in Aubonne a “hard blow” for the entire region and its economy, said he wanted to be sure that the company did not take the decision because Switzerland’s liberal labour laws make it easier to close operations here rather than in some other countries.
Merck Serono was represented by Karl-Ludwig Kley, chief executive of the German group Merck, Stefan Oschmann, member of the board of Merck and CEO of Merck Serono and François Naef,, chairman of the board of Merck Serono. The three insisted, according to Bern, that the company will continue to produce in Switzerland, but Schneider-Ammann pointed out the importance of Switzerland as a research centre, a key element in remaining competitive.
Pierre-François Unger, president of the Cantonal Council and François Longchamp, cantonal councillor, also took part in the meeting.
France shifts to the left with Socialist win
GENEVA, SWITZERLAND – Francois Hollande comfortably defeated incumbent Nicolas Sarkozy Sunday 6 May to become France’s new president, with 52 percent of the vote. The Socialist’s lead has been growing in the past week, following a first round of voting that eliminated candidates further to the left and right. They included Marine Le Pen, who outdid her far-right father’s ability to garner votes, before losing to Hollande and Sarkozy in the runoff.
The official result was announced at 20:00 in France, and although polls had been forecasting the result, French media were blocked from posting these. The French interior ministry earlier in the evening gave preliminary results which were not far off the final results.
Swiss media, not bound by French law, reporting polling results during the afternoon and evening.
La Bastille in Paris, long home to left-wing victories, was awash with crowds of cheering Hollande supporters Sunday night.
Both of the final cadidates have promised to balance the budget within five years, but the French appear to have joined the growing ranks of Europeans rebelling against austerity measures.
Greek voters move away from the centre over austerity programmes
Greek voters, who have been the hardest hit by European Union austerity programmes, moved away from the centre in their own voting Sunday, electing far-right and far-left candidates to parliament.
The Socialists in France have not had a president in office since Mitterrand left in 1995 and markets are waiting to hear whether Hollande plans to increase spending; he has promised to tax the wealthy more heavily and to bring back retirement at age 60, but only for those who have worked for 40 years.
The rest of the European community will also be watching closely, as France’s changing face could have an enormous impact on EU policies.
What French and world media are saying: Le Figaro, Le Monde, TF1 television, France and BBC, The Globe & Mail, Irish Times, NY Times, Reuters
©2012 Chappatte, distributed by Globe Cartoon. More cartoons on Chappatte’s web site. Geneva-based Patrick Chappatte works for the International Herald Tribune, for Geneva newspaper Le Temps, and for NZZ am Sonntag. All cartoons reproduced with permission.
GENEVA, SWITZERLAND – French and French-speaking Switzerland media are abuzz speculating over the likely outcome of a debate Wednesday evening 2 May between French presidential candidates Nicolas Sarkozy and Francois Hollande. The 2.5 hour debate will be televised during prime time.
US new agency AP reports that “experts say past debates have never swung a French election, regardless of who comes off better in the televised showdown”.
One person who won’t be commenting live on the debates is journalist Anne Sinclair, the American wife of Dominique Strauss-Kahn (DSK), former head of the International Monetary Fund. She was scheduled to be a commentator on BFM-TV, reports Figaro, but after the Guardian ran an article 27 April where DSK accused Sarkozy and other “political enemies” of orchestrating his downfall.
DSK was considered a front-runner for the French presidency as a Socialist, before being arrested in New York for attempting to rape a hotel maid, charges that were later dropped.
The final round of voting is Sunday 6 May. Hollande has been leading in French polls.
GENEVA, SWITZERLAND – US President Barack Obama’s surprise visit to Afghanistan 1 May has focused world attention on the country itself, but a two-day conference 2-3 May in Geneva is looking at the ramifications of 30 years of war in Afghanistan for refugees in two neighbouring countries. Some 40 international organizations and representatives from 60 countries are attending the conference, where host UNHCR (UN refugee organization) and Afghanistan, Pakistan and Iran are unveiling their plans for “a joint strategy to find lasting, coherent and unified solutions to the problem of Afghan refugees and internally displaced persons”, according to Didier Burkhalter, head of the Swiss Federal Department of Foreign Affairs (FDFA), who opened the conference Wednesday.
“Participants will be asked to support programmes in Afghanistan to increase the sustainability of refugee returns. The new strategy also seeks the commitment of the international community to support the host countries of the Afghan refugees. This is the first joint action with humanitarian and development actors and will contribute to the stability of the region,” says Bern in a statement.
BERN, SWITZERLAND – A Swiss woman kidnapped in Yemen in March appears in a video that has been published on the Internet, but according to Swiss public broadcasting RTS it is not yet certain if the film is authentic: the woman is completely veiled and wearing sunglasses, and says she is in the hands of Al-Qaida rebels. The Swiss Foreign Affairs Department told RTS it is studying the film.
The woman was teaching in a language school in Hodeida when she was kidnapped in mid-March and there have reportedly been demands for a ransom.
ZURICH, SWITZERLAND – The Swiss National Bank (SNB) showed a first quarter loss of CHF1.7 billion, central bank figures released Monday 30 April show. The SNB had a loss of CHF 2.6 billion due to exchange rate losses, offset in part by a gain of CHF0.8b in the value of gold holdings and a gain of CHF14 million on Swiss franc positions.
Quarterly figures provide only provisional information about annual results, the bank cautions, since strong fluctuations are normal. The bank’s results depend on gold, foreign currency and capital markets.
The continuing strong Swiss franc played a significant role in results, the bank reports.
“In the first quarter of the year, the Swiss franc appreciated against the major investment currencies, with the Japanese yen depreciating by 9.6%, the US dollar by 3.8% (to CHF 0.9020 Swiss francs to the dollar) and the euro by 1.1% (to 1.2043 francs to the euro). At CHF 6.4 billion, the exchange rate losses weighed on the consolidated result, and were only partly offset by price gains and interest income.”
Canadians had own investigation, but Swiss reportedly asked for help over money laundering and corruption
ZURICH, SWITZERLAND – Riadh Ben Aissa was arrested in Switzerland sometime in the past few days, but it’s not yet clear what charges are faced by the former head of global construction SNC-Lavalin, a large Canadian company. The company has been in Canadian headlines for weeks over a scandal involving missing millions.
The Globe & Mail refers to Ben Aissa as Canada’s most mysterious businessman. It says it was told by Jacquelin Buhlmann, a spokeswoman for the Swiss Public Attorney’s Office that Switzerland in April asked Canada for assistance in its year-long investigation into possible money laundering, corruption and fraud. About that time, says the Canadian newspaper, Canadian police raided the offices of SNC.
“Ben Aissa was forced out of the Montreal-based company in February amid allegations he made $56-million in improper payments to unknown commercial agents,” reports the Globe & Mail. “The company has said it has no idea where the money went. Mr. Ben Aissa has denied any wrongdoing. A source familiar with the company’s investigation has said some of the payments went through banks in Switzerland and the Middle East.”
He had close ties to the two Qaddafi sons, Saadi and Saif, the Toronto Star reports. Their assets in Switzerland have been blocked since before the overthrow of their father’s regime.
The company’s major projects in Libya included, according to RTS, the Benghazi airport, the Gharyan prison and an artificial river that runs through the desert.
RTS notes that SNC has said it will cooperate fully with the Swiss investigation.
BERN, SWITZERLAND – The Federal Council Wednesday 25 April approved the 2011 federal consolidated finances, with a surplus of CHF2.2 billion. The cabinet notes that they give an overall picture of decentralized and centralized government units in “good health” financially. The surplus is smaller than in the past three years.
Bern publishes, in four languages every September, statistical financial data that provides an international comparison of Swiss government finances.
Philipp Hildebrand resigning 9 January 2012 as chairman of the board of the Swiss National Bank
BERN, SWITZERLAND – Kashya Hildrebrand broke no rules and Christoph Blocher should not have parliamentary immunity: two decisions came from separate corners Wednesday 25 April that could shift the impact of the scandal that led to the resignation of Switzerland’s central bank chief Philipp Hildebrand in early January.
The Swiss National Bank announced Wednesday evening that an audit by KPMG of accounts of Kashya Hildebrand, wife of then-SNB chairman Philipp Hildebrand, “did not identify any activities which might suggest that transactions were carried out via Kashya Hildebrand’s business and private accounts which were in breach of the rules or guidelines in force during the period covered by the investigation.”
The audit was ordered 13 March, six days after the central bank’s governors said that an initial audit had turned up no wrongdoing, but “the business and private accounts of Kashya Hildebrand, wife of the former chairman of the Governing Board, were not included. The second audit covered this.
No immunity before being member of parliament
Right-wing politician Christoph Blocher, who is a former member of the Federal Council and strategist for the nationalist UDC People’s Party, and currently a member of parliament, has claimed parliamentary immunity for his role in the Hildebrand scandal.
The immunity commission of the lower house of parliament today voted 6 to 2 with 1 abstention against giving him immunity for events that occurred 3 December. This is the date when an IT specialist at Hildebrand’s bank, through a lawyer who is a politician, showed Blocher details of Hildebrand’s personal bank account, which is protected under Swiss privacy laws. Blocher had been elected to parliament but was not yet a member. The commission refused, however, voting 5-4, to lift immunity for Blocher’s actions 27 December. He is under investigation by Zurich’s attorney general for breaking bank secrecy laws on both dates.
Blocher and Hildebrand had been at odds for months over the SNB’s policies. Hildebrand resigned 9 January as the scandal unfolded, saying that while he and his wife had done no wrong, he did not want to see the Swiss central bank dragged down by the affair.
GENEVA, SWITZERLAND – Police are investigating the death of politician and former local media figure Michel Chevrolet, age 39, at his home Tuesday 24 April. The city of Geneva issued a statement noting that he died “suddenly” and a number of politicians have issued statements noting their shock at the death of one of the city’s most dynamic young politicians. Police have issued no details and early media reports that implied the possibility of foul play have been toned down. (Correction: please note that our own translation of “brutalement” as “brutally” was most likely a misinterpretation; under the circumstances “sudden” is probably a more accurate translation)
Chevrolet, a member of the PDC, was born in Argentina, but grew up mainly in Geneva, where he became involved in politics at an early age. He came to local fame as the editor-in-chief at radio station Leman Bleu and later at One FM, before creating a communications agency, comChevrolet.
The municipal councilor’s campaign for a seat on the administrative council in February 2011 was characterized at the time by TSR public TV as “American” and he was described Tuesday by more than one politician, in several local media, as very warm and outgoing.
The Tribune de Geneve cites friends who say he was busy planning two trips abroad and had invited numerous people to a grand gala in May to celebrate the expansion of his communications agency and the recent purchase of a magazine. “Michel was someone who lived at 200 kph,” the Tribune quotes Green Party national councilor and fellow Argentinian Antonio Hodgers as saying.
For his 2011 campaign Chevrolet created a Lip Dub about Geneva, a city he defended passionately.
Tax information exchange agreements (TIEAs) to get same treatment as double taxation treaties
Switzerland seeks tax agreements with developing countries
BERN, SWITZERLAND – Switzerland is taking new steps to fight money laundering and illegal flows of capital, the Federal Council announced late Monday 23 April. Mutual administrative assistance, the political phrase for sharing financial information at the request of another government, will be extended to countries with which Switzerland has TIEAs, agreements that are similar to double taxation treaties on the level of requests for information exchanges, but generally with smaller economies or less important economic partners.
The Global Forum on Transparency and Exchange of Information for Tax Purposes had requested the move. The forum is the multilateral framework where international tax standards are set.
The Swiss government Monday also approved a joint report by the Federal Department of Finance and the Federal Department of Foreign Affairs, commissioned by parliament, “on the possibility of arranging information agreements of this nature with developing countries”. The report now goes to the Economic Affairs and Taxation Committees of the upper and lower houses.
Bern noted in a press release, “Amongst other things, this report concludes that it could make sense for Switzerland to conclude tax agreements with developing countries. A contribution could thereby be made to preventing illegal flows of capital and strengthening the integrity of Switzerland’s financial centre.”
Estimates show Hollande with 28-28.8 %, Sarkozy with 26.2-27%
Le Pen’s strength a surprise, outdoing her father with 18.5-20%
GENEVA, SWITZERLAND – France was neatly divided Sunday night 22 April by its voters’ leanings, with Socialist Francois Hollande giving the left a tidy lead, taking 28.8 percent in a first round of voting for president according to some exit polls, but centre-right Nicolas Sarkozy getting 26.2 percent. And Marine Le Pen carried the right strongly with 18.5 percent. Figures vary depending on the polls.
Hollande’s score with a near-record 80+ percent of voters turning out, was the highest of any Socialist candidate in a first round since Francois Mitterrand in 1988, according to Le Monde.
The real surprise of the evening was Le Pen’s strength, with 20 percent of the vote, according to exit polls. Her father, Jean-Marie Le Pen, pulled a surprise for the far right when he came in second in the 2002 presidential race.
France forbids its media to publish any exit or other types of polls between midnight Friday 20 April and this evening at 20:00, when polling stopped, and Swiss media spent much of last week speculating on the role they might play as advance announcers in the Internet age.
Ain’s exit polls show 30 percent voting for Sarkozy, but no figures in at 23:20 for Savoie or Haute-Savoie.
Links to French and Swiss (Fr) sites: Figaro, Le Monde, TF1, RTS
©2012 Chappatte, distributed by Globe Cartoon. More cartoons on Chappatte’s web site. Geneva-based Patrick Chappatte works for the International Herald Tribune, for Geneva newspaper Le Temps, and for NZZ am Sonntag. All cartoons reproduced with permission.
Switzerland to share seat with Poland, pledges additional $10 billion to IMF
BERN, SWITZERLAND – Swiss President Eveline Widmer-Schlumpf and US Attorney General Eric Holder met on the fringes of a key International Monetary Fund (IMF) meeting in Washington 20-21 April. Bern’s statement was brief, noting that the two met “in order to discuss bilateral cooperation on tax issues. They agreed to pursue all available options to identify US taxpayers with undeclared accounts in Switzerland.” The US Department of Justice, which Holder heads, did not comment on the meeting.
The IMF received pledges of $430 billion in additional funds for what it calls a “reinforced anti-crisis firewall” from its member states, in an IMFC (Financial Committee) meeting of central bank governors and ministers 20-22 April. Switzerland pledged $10, noting that the “exceptional” boost is “due to the still fragile state of the world economy, [thus] the IMF ministerial committee decided to increase the IMF resources” and insisting that “the additional funds should be made available to the IMF only on a temporary basis.”
Poland and Switzerland to share part of Bretton Woods leadership
Poland and Switzerland, in a new Memorandum of Understanding signed during the Washington meetings, have agreed to Switzerland maintaining “overall leadership of the constituency in both the IMF and World Bank.” The constituency to which they refer is a group of eight IMF member countries that Switzerland has represented since 1992 on the 24-seat councils of the IMF and the World Bank, sister organizations in what are known as the Bretton Woods Institutions. “It will represent the constituency in the responsible ministerial bodies, for example, the IMFC and Development Committee, in which the political and strategic courses are set. However, Switzerland will share its seat on the IMF Executive Board–the IMF’s operating decision-making body–and in future both countries will nominate the executive director for a two-year period on an equal rotation basis.”
The clause concerning the executive director is dependent on the IMF implementing its governance reforms but Bern notes that no leadership changes will be made for the World Bank, where governance reform is not underway.
Switzerland's option to keep quotas until 2014 in case of excessive immigration was written into 2004 agreement
BERN, SWITZERLAND – Reactions were swift and negative from a number of European Union leaders to Switzerland’s decision to revive quotas for the EU-8 States, announced 18 April.
Their objection doesn’t question Switzerland’s right to extend its transition period for handling immigration beyond 2011, but focuses rather on Switzerland’s treatment of the group separately from the rest of the European Union, with at least one European parliamentarian saying that the move runs counter to the spirit of EU-Swiss agreement on the free movement of people. The agreement in fact built in this option for the Swiss.
That decision revives old negotiated deals dating back several years, covering how Swiss-EU bilateral agreements would handle an enlarged group of European States, a spokesperson for the ministry for the economy has told GenevaLunch.
The two sides had failed, by early2004, to reach an agreement after nine negotiating sessions that began in 2003. The European Union wanted the 10 new members to be added to negotiations already underway and Switzerland said no.
The compromise solution reached at their sixth session allowed for options based on different economic scenarios, notably giving Switzerland the right, in case of a clearly defined case of “excessive immigration” to revive quotas for eight of the 10 new countries, with Romania and Bulgaria handled separately. Switzerland, under the terms of the agreement, also has the right to ask for salary information and ensure that labour laws are respected.
Longer term solutions sought. to absorb immigrants
BERN, SWITZERLAND – The Swiss government’s announcement late Wednesday 18 April that it will temporarily cap the number of workers allowed from the European Union-8 States, has prompted several reactions outside the country, which reflect a mix of concerns. But within Switzerland it’s the additional measures to seek longer term solutions to deal with migration that will be debated.
The Federal Council says a quota of 2,000 B residence permits for 12 months will be revived starting 1 May, for workers from the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia and Slovenia. Switzerland had quotas but suspended them 1 May 2011. The government will decide before May 2013 if the quotas will remain in place for the following 12 months.
Agreement with EU allows quotas for transition period that ends in May 2014
By 31 May 2014 the quotas will be lifted permanently, under the terms of the Swiss-EU greement on the free movement of persons (AFM), says Bern, although some EU officials appear to interpret the agreement differently, according to media reports.
The stated rationale for the move is that the safeguard clause in the Agreement on the free movement of persons (AFM) allows Switzerland to unilaterally re-introduce quotas for the EU-8 countries until 2014, “provided that in a given year the number of residence permits and/or short-term residence permits for job seekers from the EU/EFTA States exceeds the average of the previous three years by at least 10 percent.”
The conditions were fulfilled for category B permits, says Bern, from May 2011 through April 2012: the quota could legally be implemented if more than 2,283 B residence permits were issued during that time. More than 6,000 were issued.
The conditions were not, however, met for L permits, and no quota is being implemented there.
B permits are granted, Bern notes, “to persons who possess an employment contract in Switzerland that is valid for more than a year or for an unlimited period, and to individuals who are self-employed. Short residence permits of category L are granted to foreign workers whose employment contract is valid for up to one year.”
