The strong showing of Finland’s nationalist True Finns party in elections Sunday 17 April have put a damper on Portugal’s bid for a European Union financial bailout. The party zoomed from 6 to 39 seats in parliamentary elections, taking third place after the Conservative party, with 44 seats and the opposition Social Democrats with 42 seats.
The True Finns party turned the election into a vote over Finland’s willingness to back a rescue package for Portugal, which is currently negotiating one with the EU. Any such package requires a unanimous vote from the 17-member eurozone countries. The Conservatives will have to invite at least one of the other two parties to a coalition, reports Reuters, and while the Social Democrats are not against rescue packages, they oppose the current arrangements for funding them.
Links to other sites: Euronews, Reuters/The Globe & Mail, Guardian
Bern, Switzerland (GenevaLunch) -”All the samples tested up to now have been negative and the products may be sold,” the Swiss federal council said about Japanese foods in a statement issued late Thursday 14 April. “Food products coming from Japan and sold in Switzerland pose no danger to health.”
The announcement was part of a broader statement about Switzerland bringing its checks on Japanese food into line with newly revised European Union standards in the wake of recent radiation fears in Japan. The Swiss federal government noted the importance of maintaining identical standards, to help Japanese exporters, Swiss importers and consumers.
Switzerland’s 23rd place out of 31 on European Mipex shows action needed, says Bern
Bern, Switzerland (GenevaLunch) – Switzerland’s rank for anti-discrimination policies, near the bottom of 31 countries reviewed by Mipex, the European Union’s Migrant Integration Policy Index, is a clear indication that action is needed, the Swiss Federal Commission Against Racism (CFR) says in a press release 5 April.
The commission’s proposals were published at the same time that a conference was held in Bern on Switzerland and the Mipex review. The third Mipex index was published 27 February 2011.
Switzerland ranked 23 out of 31 overall, but only 30 out of 31 for anti-discrimination policies. “The fact is that Switzerland does not has adequate legislation to fight against discrimination, the mechanisms for applying laws are weak and the government services responsible for equal opportunity do not have the means they need to do their job; since the last review, in 2007, no progress has been made in this area.”
CRF proposes 10 measures to rectify situation
The CFR is proposing 10 measures, among them recommendations to include anti-discrimination in cantonal constitutions, to give more teeth to penalties for those found guilty of discrimination, to provide better funding for state agencies that work in this area and to encourage cantons to add non-discrimination as a requirement for licensing.
Two examples that are provided in the last area are Vaud, which requires private clubs that are licensed to use the canton’s lakes for boating courses, for example, must show that they do not discriminate, and Neuchatel, which licenses daycare groups only if they show they do not discriminate.
Mipex measures laws and policies in each country
The index is based on 148 policy indicators that are not the result of expert opinion, as with many indexes, but rather than attemt to measure public laws, policies and research, says the EU group.
“In every country, independent scholars and practitioners in migration law, education and anti-discrimination filled out the score for each indicator based on the country’s publicly available documents as of May 2010,” it notes. “All scores were anonymously peer-reviewed by a second expert” with national experts providing input on policy changes and the reasons behind them.
International meeting ends without further decisions on aiding Libyan rebels
Qaddafi forces push back rebels
Bern, Switzerland (GenevaLunch) - The Swiss Federal Council Wednesday 30 March formally adopted the UN Security Council’s measures against Libya, taken 26 February, as well as the European Union’s decisions concerning Libya, 28 February and including EU complementary actions. The move by the Swiss cabinet Wednesday cancels Switzerland’s own moves 21 February to unilaterally block funds that may belond to the Libyan leader and those close to him.
The EU’s decisions in particular duplicate Switzerland’s own actions in the financial area: the EU has voted to forbid supplying any materials that could be used for internal repression in Libya, and the list of people affected by financial sanctions and travel restrictions has been lengthened, from Switzerland’s original list.
The move by Bern also brings to a halt criticism from some corners that Switzerland acted too soon and alone in blocking Qaddafi assets.
Neuchatel, Switzerland (GenevaLunch) - The number of people employed in Switzerland rose by 1.4 percent from January 2010 to January 2011, the Federal Statistics Office says in a report released 29 March. Growth in employment in the European Union during the same one-year period was 0.3 percent.
Unemployment, using the ILO (International Labour Organization) definition fell in Switzerland from 4.8 to 4.2 percent. In the EU it rose, using the ILO definition, from 9.3 to 9.5 percent.
The number of employed Swiss rose by 0.4 percent, to 3.35 million, while the number of employed foreigners rose by 4. percent to 1.27m. Unemployment among foreign workers rose more rapidly and by a greater percentage during the global economic crisis.
Qaddafi clan assets have now been officially frozen by Austria and France in addition to Britain, the US and Switzerland, with estimates varying widely but the money expected to be in the tens of billions of dollars. The latest confirmations of blocked funds came in broadcast interviews in France and Austria.
Links to other sites: Le Temps (Fr), AP/680 News
The European Union has removed 35 people from the list of more than 160 in Zimbabwe who are sanctioned: they are not permitted to travel to the EU and any assets they might have are frozen. The move came without explanation, although as allAfrica points out three of them have died and the others are virtually all spouses of officials in Robert Mugabe’s regime. It suggests that the idea might be to encourage those still on the list to “mend their ways”.
Bern, Switzerland (GenevaLunch) – The Swiss government is increasing sanctions against Iran to the same level as those put in place by its main commercial partners, the government said Wednesday morning 19 January. The tougher measures were taken to ensure that Switzerland is not used by Iran to get around the stricter sanctions put in place by the European Union, in particular, in October 2010.
The list of persons whose assets are frozen is also being extended, the same day that the Swiss have moved to freeze assets of former Tunisian President Ben Ali and Laurent Gbagbo of Cote d’Ivoire, who has refused to give in to pressure from other countries to acknowledge he did not win his country’s recent elections.
Swiss exports to Iran were CHF700 million in 2010, mainly pharmaceuticals, machinery and agricultural products. Imports came to CHF41 million. The volume of trade fell by CHF63 overall, compared to 2009.
The new level of sanctions is also needed to give legal protection to Swiss companies operating internationally, according to Bern, as they now risk being caught between two levels of sanctions.
Dialogue with Mormons to remain open, but quick change appears unlikely
Parliament in Bern: a chilly welcome for missionaries in Switzerland, now considered to be "gainfully employed" and covered by work permit quotas
Bern, Switzerland (GenevaLunch) - A statement by the European Commission Tuesday 14 December on relations with Switzerland and its fellow Efta countries, could be a setback for a US-based group that would like to see its religious missionaries continue to work in Switzerland.
Switzerland is under growing pressure from the European Union over restrictions it has issued that the EU says are not fully complying with the agreement on the free movement of people in Europe, to which Switzerland is a party. The European Commission noted in a 14 December statement on relations with Efta countries, which includes Switzerland, that the Swiss should end certain regulations, “for instance, the obligation in force in Switzerland to provide prior notification [before arriving for work] with an 8-day waiting period.”
The Swiss federal government noted in its official reply Tuesday that “the free movement of persons has been a major factor in intensifying the bilateral relations between Switzerland and the EU. Today, over one million EU citizens live in Switzerland and over 200,000 people from the EU cross the border every day to work into Switzerland.” It argues that several EU countries have similar regulations and that in Switzerland, “experience has shown that the accompanying measures are necessary to protect wages and working conditions,” a veiled reference to unscrupulous employers, particularly those who hire migrant workers and low-wage workers. “In this context for example, checks carried out by labour inspectors revealed breaches in one fifth of cases.”
Switzerland, with foreigners making up more than 22 percent of the population, has one of the largest foreign resident working populations in Europe, and it maintains a work permit quota system for workers from non-EU or Efta countries.
The quote system covers missionaries.
A group of 14 US senators, many of whom are Mormons (members of the Latter Day Saints church), petitioned the Swiss Embassy in the US earlier this year, swissinfo reported 13 December, to have Switzerland consider changing new work permit rules.
Largest-ever single pledge session as refugee group increases internally displaced and stateless refugees work
UNHCR said in July 2010 that 16 people had died trying to cross the Evros River, with the border between Greece and Turkey a popular but treacherous transit spot (photo, ©2010 UNHCR)
Geneva, Switzerland (GenevaLunch) – The UN refugee agency, UNHCR, celebrates its 60th anniversary 14 December 2010, with words of thanks from High Commissioner Guterres, who recently told a group of donors, mainly governments, that “taking into account the global economic and financial situation [this] is I believe a very clear demonstration of your support and your commitment.” He also called on them to redress the balance, with poor countries bearing too much of the burden of helping refugees, and many countries not doing enough to deal with statelessness problems.
Europe, in particular, was warned Friday 10 December not to make asylum more difficult in its efforts to stop illegal migration: UNHCR figures show a 72.5 percent drop in arrivals by sea in the Mediterranean during the first 10 months of 2010, compared to the same period in 2009, down from 32,000 to 8,800, with Italy, Greece, Cyprus, and Malta all seeing sharp drops.
“Our concern is that in its efforts to stem illegal migration, Europe should not forget that among those seeking to enter the EU are people who need international protection and are at risk of their lives,” spokesperson Andrej Mahecic says. “Europe is a destination for both migrants and asylum seekers. The two have different goals and needs. Migrants may be seeking employment or other economic opportunities, refugees are people fleeing persecution or violence. They cannot return home if things don’t work out.”
$3.32 billion needed to meet 2011 needs, says refugee agency
The appeal to Europeans follows news from UNHCR 7 December that it had received pledges of $576.5 million, the highest amount contributed through a single pledging session, which represents 17.3 percent of UNHCR’s $3.32 billion projected requirement for 2011.
Ashton, Jalili will meet in Geneva 6-7 December
Geneva, Switzerland (GenevaLunch) - Iran’s nuclear negotiator, Saeed Jalili, and the European Union’s foreign affairs minister, Catherine Ashton, have agreed to meet in Geneva Monday and Tuesday, 6-7 December, to discuss nuclear issues. It is the first such talk since October 2009. Ashton has the agreement of the E3+3 group, the United States, Russia, China, Britain, France and Germany, for the EU to have nuclear discussions with Iran. Iran insists its nuclear programme is not negotiable.
Links to other sites: Fars News Agency, Iran, Reuters, Xinhua
Federal Council will consult on plan for how big banks can fail, negotiate withholding tax on foreigners’ accounts
Measles, tougher penal sentences, electricity suppliers, corporate tax rates all on the 2011 schedule
Swiss Federal Council (cabinet): government publishes its 2011 agenda
Bern, Switzerland (GenevaLunch) – The Swiss Government, fresh from the defeat of its counter-initiative in the vote on foreign convicts 28 November, has set out an ambitious agenda for work it expects to complete in 2011. This will be the final session before a new parliament is elected 23 October 2011.
Two pieces of legislation, one calling for a tougher penal code and the other for greater efforts to integrate foreigners into Swiss society, were planned before the weekend vote, but they must now be coordinated with a constitutional change, the results of the 28 November popular initiative, where Swiss voters chose automatic expulsion of foreign convicts.
Negotiations over undeclared assets in Swiss banks confirmed
The council confirmed Tuesday that negotiations are already underway with some countries, and it intends to open negotiations with other key countries, to “regularize” undeclared assets coming to Swiss banks from outside Switzerland. The main tool Switzerland intends to use is a withholding tax but the government says the negotiations will also include a commitment by the Swiss to “ensure, as far as possible, that undeclared assets from [countries with negotiations] will not in future come to Switzerland”.
Bankruptcy proceedings for key banks would limit pay, free trade agreements get priority
The cabinet will consult with interested parties on the details of how banks that are critical to the national financial system would be allowed to move into bankruptcy if they fail. A particular aspect of this is the decision by the government to limit payment to bankers for any financial institution that comes under the government’s care. Wide consultation on drafts for new laws with major impact is standard procedure in Switzerland and proposed legislation is then revised based on feedback before it goes to parliament.
Trade talks to be accelerated
The Irish government is accepting a massive EU (European Union) and IMF (International Monetary Fund) bailout, it announced late 21 November. The rescue package, in the form of multi-year loans, may amount to over €90 billion. Details of the aid will be worked out over the coming weeks, Prime Minister Brian Cowne says. The loans come with a pledge by the government to allow outside supervision of government economic policies. The aid will go in part towards restructuring Ireland’s big banks.
Ireland’s 12.5 percent corporate tax was not part of the bargain, Cowen said. The United Kingdom may provide Ireland with additional loans.
Links to other sites: BBC, Guardian, Irish Times
Neuchatel, Switzerland (GenevaLunch.com) – Swiss consumers are paying one-third more for food than their EU counterparts, and as much as twice the price for meat, new federal statistics show.
The difference has increased in the past two years, thanks in large part to a strong franc as the euro has weakened.
Meat prices showed a marked difference because of production costs in Switzerland and because imports are strictly limited. The Swiss eat, on average, 53.45 kg of meat a year.
Cooking oil, fish, canned and dried goods all show price differences above the average.
Links to other sites: Swiss meat, TSR
Swiss banks’ stress tests shows “both banks would still have a solid capital base” in case of global recession
Basel, Switzerland (GenevaLunch.com) – Credit Suisse and UBS, Switzerland’s two large banks, would both have capital ratios of at least 8 percent, should they be subject to stresses from a global economic recession, Finma, the country’s financial regulatory body, said Friday evening 23 July.
Finma published the results of its stress tests on the two banks, conducted since 2008, in parallel with announcements by the European Union and 91 of its largest banks about the results of EU bank stress tests.
Seven of the 91 European banks failed the stress tests, five “caja” or savings banks in Spain, Germany’s Hypo Real Estate and Greece’s ATE bank, a result that led, according to the Financial Times, to investors signalling “their distrust of the assumptions underlying the tests and the surprisingly small number of banks to fail the tests.”
Finma explained in publishing its results that the stress tests were developed with the Swiss National Bank, the country’s central bank. “Analyses of this kind are a key component of its normal supervisory activities. Finma requires Credit Suisse and UBS to have sufficient excess capital and liquidity to enable them to absorb unforeseen events at any time. The large banks should therefore have a tier 1 ratio of at least 8 percent even under such stress scenarios. If this requirement were not met, Finma would work with the institution in question to consider reducing its risk positions and/or strengthening its capital base and then instruct suitable measures.”
The stress tests check the banks’ capacity to deal with specific scenarios. “The latest scenario covers different regions of the world over a two-year period. It assumes a global recession, accompanied by a slump in prices on the financial and real estate markets,” Finma says in its press release. “Developments in Europe have also been added, with specific and very sharp shocks assumed for some European countries. In view of UBS and Credit Suisse’s relatively low exposure to these countries, however, the impact of these particular shocks turns out to be small.”
Kosovo was in the eye of the world Thursday 22 July in a way it has not been for some time, after the International Court of Justice said its unilateral declaration of independence in 2008 was not illegal, news followed soon after by an announcement that the governor of its central bank had been arrested in an anti-fraud investigation. The court, in The Hague, noted that while the declaration of independence had not violated international law, this did not necessarily imply Kosovo had the right to declare its independence, leaving the question unresolved and states free to decide if they will recognize Kosovo as a fellow nation. Serbia promptly said it would never recognize Kosovo as an independent state.
Hashim Rexhepi, the governor of Kosovo’s central bank, was arrested as part of a Eulex investigation. Eulex is the European Union’s rule of law mission. He and four others are being investigated for “suspected bribes, tax evasion, influence-peddling and money laundering,” reports the BBC. According to Reuters, Kosovo has received euros 4 billion in aid since declaring independence; “Kosovo’s main currency is the euro and Rexhepi’s role was to monitor the work of banks in the country.”
Links to other sites: Guardian editorial, TSR (Fre), VOA
The British government last week, and the French government earlier in June, have put the spotlight on a growing European financial problem: how to pay for pensions. Both governments have said they would like to raise the retirement age. Now the European Union will bring the debate centre stage, as part of a discussion paper to be published this week on the issue of public finances in the EU. The question will be raised of whether Europe can continue to let its workers retire earlier than people in other parts of the world even though life expectancies are similar, reports the Financial Times, which has seen the EU paper.
“The need for reform is underlined by the worsening ratio of people working to those in retirement. Currently in Europe, there are four people of working age for every person over 65: by 2060, there will be only two workers for every retiree,” according to the FT.
Switzerland frees funds for joint projects as part of bilateral agreements
Bern, Switzerland (GenevaLunch) – Switzerland’s ruling Federal Council agreed to sign framework bilateral agreements with Bulgaria and Roumania Wednesday 23 June. The immediate impact of the decision will be to free funds for joint projects, CHF181 million for Bulgaria and CHF76m for Roumania, part of Switzerland’s contribution to the European Union’s newest countries to help redress the balance between rich and poorer EU nations. The projects will be selected and undertaken at the end of 2010.
Bern, Switzerland (GenevaLunch) – An “enhanced” US-Swiss open skies agreement was signed in Bern 21 June, that gives Swiss airlines several new privileges:
- restrictions lifted on route planning, pricing and capacity for carriers in both countries
- Fly America restrictions lifted, enabling Swiss carriers to pursue air deals with US civilian agency-funded government contractors
- both countries will have the right “to operate all-cargo flights to third countries without a connection to the home country.”
Zurich Airport
The US State Department announced the agreement Monday 21 June, saying it replaces a 1995 bilateral agreement. The US and the EU recently signed a similar agreement, but Switzerland, not a member of the European Union, has its own bilateral aviation agreements.
The new agreement states that Swiss airlines may be owned by companies based in the European Union, effectively extending to them the rights of EU airlines, a potentially important change for Swiss, which is owned by German company Lufthansa.
The US now has open skies agreements with 90 partners, according to the State Department.
Link to US State Department fact sheet on open skies agreements
The European Union has begun its one-day summit, seeking to adopt a long-term economic plan, with an appeal to its members to overhaul budget rules to prevent the economy from sagging further.
Herman Van Rompuy called on leaders of the 27 states, to financial discipline. One of the main topics of discussion in Brussels will be the debt-laden, Spain.
It is expected that Spain will talk about its recent budget cuts. European leaders have said there are no plans to discuss a possible bailout for the country.
Other sources: Taiwan News, The Guardian, The Associated Press
Immigration to Switzerland from 15 EU states fell sharply in 2009
Bern, Switzerland (GenevaLunch) - The Swiss government has decided not to take up its option to temporarily limit immigration from the 15 older European Union states with whom it signed a free movement of labour agreement in 2007. The option helped get the agreement through parliament at the time, overcoming arguments that the local job market would be swamped. The agreement allows Switzerland to unilaterally call a halt if the number of immigrants rises more than 10 percent above the average for the three previous months, and since it went into effect 1 June 2007 this is the first year the Swiss could exercise the option.
The accord was one of several bilateral agreements signed between Switzerland and the EU, four of whose member countries share its borders.
Swiss fears at the time of a rush into the local job market have died down in the face of the global economic crisis, with fewer jobs available. Bern says that from June 2009 to April 2010, 21.4 percent fewer permits were issued than in the previous year and even for short-term permits the number has fallen by 9.4 percent.
© 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.
The IMF (International Monetary Fund) said Friday 26 March that it is watching developments in Greece closely, after the euro zone countries agreed to provide Greece with loans, with help from the IMF. But IMF and European Union (EU) rules covering loans are not aligned and the situation may force the IMF to reconsider its position. The euro zone decision does not provide immediate relief to Greece, but can be activated “only once Greece is shut out of debt markets and not until eurozone stability is threatened,” the Telegraph reports, and few of the players seem happy with the EU decision, which creates uncertainty even while it appears on the surface to aid Greece.
Brussels, Belgium (GenevaLunch) - Max Goeldi, Swiss businessman held in Libya for 19 months, should be allowed to go home, the European Union told Libyan officials Thursday 25 March. The office of Cecilia Malmström, European commissioner for security and internal affairs, Thursday 25 March praised Switzerland for making a gesture to resolve the impasse with Libya by saying it would lift a visa ban on some Libyans. Her spokesperson invited Libya to respond by “immediately freeing Max Goeldi.”
The diplomatic Middle East Quartet, which met in Moscow Friday 19 March, has issued a strongly worded reaction to Israel’s recent announcement it intends to build 1,600 new homes in East Jerusalem. The group of four (the UN, US, Russia and the EU) are calling for Israel to remove settlement homes within 24 months. and for Palestinians and Israelis to negotiate an agreement in the same time period that provides for an independent Palestinian state living next to Israel in peace. “The quartet condemns the decision by the government of Israel to advance planning for new housing units in East Jerusalem, “UN secretary general, Ban Ki-moon said unequivocally.
The New York Times had earlier reported that US Secretary of State Hillary Clinton appeared anxious to lower the temperature after Israel came in for heavy criticism over the housing. “We all condemned the announcement, and we all are expecting both parties to move toward the proximity talks and to help create an atmosphere in which those talks can be constructive,” Clinton said before the Quartet’s statement.
Links to other sites: Guardian, UK, Jerusalem Post, Moscow Times, New York Times
Catherine Ashton, who heads the European Union’s foreign policy programme, is stopping in Gaza to see for herself how the EU’s aid to Palestinians is being used, before she continues on to Moscow for a meeting of the Middle East diplomatic Quartet: the EU, US, UN and Russia. The EU is the biggest contributor of aid to the Palestinians, according to the BBC. Ashton’s visit is unusual: officials at this level rarely visit Gaza itself because of diplomatic complications, and it follows Ashton’s condemnation of new Israeli settlements which have dampened hopes for a Middle East settlement.
Brussels, Belgium (GenevaLunch) - The European Commission reacted to Libya’s ban on visas for Schengen residents by saying it will meet later in the week to discuss the abrupt decision by Muammar Qadaffi’s government. Cecilia Malmstroem of Sweden, the commissioner for home affairs, provided a more immediate response: “The European Commission deplores the unilateral and disproportionate decision by Libyan authorities to suspend the delivery of visas to EU Schengen countries’ citizens. The commission also regrets that travelers who legally obtained visas before the suspension measure were refused entry when arriving in Libya.”
It is unclear if the move includes diplomats, but there are reports that people arriving in Tripoli with visas are being refused entry at the airport.
The visa ban appears to be in retaliation for an unconfirmed ban on travel to Switzerland, a member of the Schengen area, by close to 200 Libyans. Switzerland has not issued any information along these lines and the Swiss government has refused to confirm the information, which was reported by a Libyan newspaper generally considered close to one of Qadaffi’s sons.
The Swiss government provides two useful brochures for people working here who are considering relocating or retiring elsewhere. Both are in pdf format and can be downloaded:
Social Security in Switzerland, January 2010 update
Leaving Switzerland and Moving to an EU or EFTA country
Additional information is available from the Swiss-EU Liaison Office.
Coal plant, northern Germany (©2010 Andrew Kerr and WWF-Canon)
Lausanne, Switzerland (GenevaLunch) - WWF Switzerland has filed a complaint with the European Union over the continuing support by some Swiss electricity companies of coal-based electricity production in northern Germany. Romande Energie is among several Swiss electricity suppliers who participate in the coal-based activities at Brunsbuettel in northern Germany.
Corrections 14:05 Geneva, Switzerland (GenevaLunch) – The UNHCR (UN High Commissioner for Refugees) has denounced Cambodia’s forced return to China of 20 ethnic Uighur asylum-seekers before their claims were heard. The Geneva-based organization said it was “deeply distressed” at the news and concerned that “a disturbing pattern of such cases is increasingly evident around the world.”
Human rights groups condemn deportation
The 20 were deported Saturday 19 December as illegal immirants, reports Reuters AlertNet, an information service for humanitarian organizations. The move coincides with a trade visit to Cambodia by Chinese Vice-president Xi Jinping 21 December. Reuters AlertNet quotes a faxed statement from the Chinese Foreign Ministry, received by Reuters: “Recently, Cambodia deported 20 Chinese citizens in accordance with immigration laws for illegal entry into Cambodia. China received these people in accordance with usual practices,” but the statement also links the immigration crime to smuggling.
Several human rights groups have condemned the deportations, and US State Department’s spokesman Gordon Duguid says the US is “deeply disturbed” by the decision and the lack of appropriate participation by the UNHCR which, he warns, will affect its relations with Cambodia.”Now that the group has been returned to China,” says Duguid, “we urge the government of China to uphold international norms and to ensure transparency, due process and proper treatment of persons in its territory.”
