Flight noise harms relations with Germany
A long-standing row over flight noise from Switzerland's main airport is likely to overshadow Tuesday's visit by German Chancellor Angela Merkel to Bern.
The talks will also be an opportunity to discuss another issue that has been grabbing headlines for the past few months: Switzerland’s reputation as a haven for Germans hiding their money from the taxman.
It’s Merkel’s first official visit to Switzerland and follows an invitation by Swiss President Pascal Couchepin in February.
In 2003 Germany imposed restrictions on inbound flights to Zurich over the southern part of the country after complaints from locals. This meant that aircraft were forced to fly some of the Swiss city’s most populated areas, including the homes of some of the area’s richest residents.
The restrictions came after parliament refused to ratify an accord with Berlin on the number of flight movements from Zurich airport, which is about 20km away from the German border.
The foreign ministry is hoping that Merkel’s visit will help make some progress on the topic. “What we would like in this situation is to find solutions that benefit the whole region,” spokesman Lars Knuchel told swissinfo.
“It’s not just the flight restrictions we want to talk about, but cross-border cooperation as a whole,” he added.
Suggestions have been recently made to improve cooperation between the two countries, including boosting public and private transport between Swiss border regions and the southern German state of Baden-Württemberg.
One example is the backlog of trucks waiting to cross the Swiss border that builds up at the end of the day. Lorries are generally not allowed to move at night in Switzerland.
Hidden funds
The foreign ministry remains tight-lipped over just what will be discussed during the Merkel visit. However, the list of participating Swiss ministers suggests that talks will also focus on German tax evasion to Switzerland.
Besides Couchepin, Foreign Minister Micheline Calmy-Rey, Transport Minister Moritz Leuenberger and Finance Minister Hans-Rudolf Merz will join the discussions.
Since the European Union called tax breaks for holding companies based in Switzerland unfair, Germany has complained about money placed in Swiss banks to avoid taxation.
German Finance Minister Peer Steinbrück called Switzerland a “tax haven”.
Knuchel says tax issues will be among the topics discussed in Bern.
“The Germans have criticised Swiss tax practices,” he added. “We will make our own position clear during this working visit.”
Switzerland maintains the taxation of foreign assets held in Switzerland has been dealt with in a series of bilateral accords with the EU. Calmy-Rey has also defended Swiss banking secrecy, claiming that there is no reason to negotiate it with the EU.
She has justified Switzerland’s position over the taxation of foreign holding companies, considering it one way the country can remain competitive in attracting businesses.
swissinfo, based on an article in German by Christian Raaflaub
Germany is by far Switzerland’s biggest trading partner.
In 2007, Switzerland imported goods and services worth SFr184 billion, including SFr62.2 billion from Germany.
Swiss exports were worth SFr197.4 billion last year, including SFr41.2 billion to Germany.
Services account for 40% of trade between the two countries.
Germany purchased €11.9 billion in services (not including travel) from the Swiss in 2007 and sold €8.6 billion.
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