Switzerland Today
Dear Swiss Abroad,
UBS and its lobbyists painted gloomy scenarios of higher bank fees, more expensive mortgages and higher financing costs for companies not to mention lower dividends, less money for growth, less international competitiveness and fewer jobs.
In short, if UBS had to put more equity capital under its foreign business, the Swiss economy would have major problems – if the bank remained in Switzerland at all.
Today, the Senate obliged UBS to provide more equity. The bank's shares reacted positively.
Warm greetings
The Senate showed some spine when it came to handling UBS. The major Swiss bank will have to back 90% of its holdings abroad with Common Equity Tier 1 capital.
Today, the Senate decided on the capital backing of UBS’s foreign investments. How far the future regulation in the Banking Act should go was hotly disputed. At the beginning of the week, UBS CEO Sergio Ermotti once again publicly defended himself against what he considered to be too strict requirements.
But the Senate followed the line of Finance Minister Karin Keller-Sutter. It is a matter of drawing the right lessons from the collapse of Credit Suisse, said the Keller-Sutter before the Senate.
“With good regulation, a bank must be able to withstand bad management,” she argued. Banks should not simply be able to pass on their losses to taxpayers. The finance minister and the Federal Council wanted systemically important banks to back foreign subsidiaries with 100% Common Equity Tier 1 capital in the future.
The Senate reduced this rate to 90% today. But this is a much tougher capital regime than UBS wanted. The bank had been lobbying intensively for months. Now the ball is in the House of Representatives’ court. The tug-of-war between Paradeplatz Zurich and Bundesplatz Bern, between the bank boss and the Federal Council, is thus entering the next round.
With 119 visa-free destinations, the Swiss passport ranks 9th in the global passport ranking. That’s solid, but in a European comparison, it’s only enough for 13th place out of 47.
EU countries such as Germany, France and Spain are ahead when it comes to passport power. However, the differences are marginal.
The Swiss passport shines particularly well in Europe, North and South America, the Caribbean and the Gulf States. These areas are almost without restriction – visa-free, visa on arrival or with electronic entry permit. In Oceania, the overall access rate is just under 93%. However, things are somewhat bumpier in Asia and the Middle East, Central Asia with around 80% each and Africa with 72% visa-free access.
The passport that opens the most doors with 129 visa-free destinations is issued by Singapore, followed by the United Arab Emirates with 128 countries. At the other end of the scale is Afghanistan – with just three visa-free destinations.
Switzerland is more reserved when it comes to welcoming foreign travellers than it is received. In the so-called welcome ranking, it ranks 92nd out of 199 countries. Switzerland requires a visa from nationals of many countries that allow Swiss citizens to enter without a visa.
The data comes from Passport Reports, an independent platform for travel data.
A worldwide phenomenon is also affecting Switzerland. Online groups of sadistically inclined perpetrators brutally coerce minors into humiliation and self-harm.
Girls who carve the names of their tormentors onto their legs and film themselves doing so. Such recordings are considered trophies by the perpetrators – which increase their status within their group. The more brutal the act, the higher the status.
Authorities around the world are increasingly warning about this phenomenon, which they describe as “nihilistic extremism”. Nihilism because violence seems to be the only goal.
According to research by SRF and Tages-Anzeiger,External link confirmed by the federal police, investigations in Switzerland have brought 20 cases to light. Two-thirds of the victims are girls between the ages of 12 and 18. One third are slightly older perpetrators, most of whom are still minors.
The perpetrators pretend to be friends or sometimes lovers. They collect personal information during this phase of their relationship – material that is later used to force the victims to commit increasingly brutal acts.
President Guy Parmelin addressed the UN General Assembly: ‘History has taught the Swiss to live with what divides.’
“A natural border can also become a place of encounter,” said the Swiss president in New York. “We know from experience that dialogue is not a sign of weakness.” Neutral Switzerland continues to offer its good offices and creates space for exchange.
Commenting on the increasing global tensions, Parmelin told SRF: “I am pragmatic. We are currently in a bad phase.” But the world does not stand still, it is constantly moving.
Foreign Minister Ignazio Cassis is also focusing on closer cooperation in New York. He is taking part in around 20 bilateral meetings. He met his Iranian counterpart Abbas Araghchi and took part in a ministerial meeting with the Gulf Cooperation Council, which includes Saudi Arabia, the United Arab Emirates, Qatar, Kuwait, Bahrain and Oman.
The situation around the Strait of Hormuz and the Strait of Bab al-Mandab as well as freedom of navigation were discussed. “The stability of the region is crucial for global stability and for Switzerland,” Cassis said.
Translated from German, sub-edited by Anand Chandrasekhar
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