Gold sale vote too close to call

Some 1,300 tons of Switzerland's gold reserves are currently being sold Keystone

The Swiss have been voting on whether to use proceeds from the sale of excess gold reserves for humanitarian projects.

The result is seen as too close to call – voters also have the option of choosing an alternative proposal to invest the money in the state pension scheme.

The government wants the money divided equally among the state pension scheme, the cantons and the so-called Solidarity Foundation, which would support good causes both at home and abroad.

But the right-wing Swiss People’s Party has put forward an alternative proposal which calls for all the money to be invested in state pensions.

Supporters of the Solidarity Foundation say negative perceptions about Switzerland – linked to its wartime past and perceived isolationism – would be reinforced if the Swiss were to reject the initiative.

“The international image of Switzerland is ambivalent,” says Jürg Krummenacher, director of the charity, Caritas.

“On the one hand, we have this picture of a rich isolationist country… on the other hand, Switzerland also has the image of being a country with a humanitarian tradition, and I think approval of the Solidarity Foundation would enforce this image.”

If approved, the Solidarity Foundation stands to share an annual figure of around SFr650 million, which is the interest on the capital derived from selling 1,300 tons of gold reserves held by the Swiss National Bank.

Controversial history

The government’s idea for the Solidarity Foundation first came to light in the mid-1990s when Switzerland was the subject of international criticism for its handling of dormant bank accounts belonging to Holocaust victims, and for its business dealings with Nazi Germany.

In 1997, the then Swiss President, Arnold Koller, told parliament of his plan for a major new humanitarian fund, which would benefit those in need both inside and outside Switzerland.

The announcement sparked off immediate controversy, and rightwing politicians continue to denounce the proposed fund as the gesture of a weak government caving in to outside pressure.

“The way Switzerland behaved during the Second World War was a necessity,” said Luzi Stamm, member of parliament for the Swiss People’s Party. “It was surrounded by Hitler’s forces.”

“There is not the slightest reason to feel guilty about the way we behaved then,” Stamm told swissinfo, “and no reason to pay money for it.”

Global context

But the Swiss government has consistently denied that the Solidarity Foundation should be seen as reparation for possible past mistakes.

Supporters of the proposal argue that it is instead a chance for Switzerland to demonstrate its commitment to international cooperation.

“The Solidarity Foundation is not simply a gesture,” said Walter Schmid, who is director of the project. “The future of all countries depends on how we survive in a global context.”

“It’s a question of what sort of Switzerland we see,” Schmid told swissinfo.

“Whether we see Switzerland as a rather isolationist country, just thinking of itself, or whether we see it as an active partner in the world.”

Long humanitarian tradition

Opponents of the proposed foundation, however, argue that Switzerland is already heavily committed to international humanitarian work.

“We’ve got the Red Cross,” said Stamm, “and lots of other aid organisations. We don’t need another one.”

But major Swiss charities, including Caritas – which has aid projects both within and outside Switzerland – support the Solidarity Foundation, believing it will provide extra funds for long-neglected areas.

“There are areas of forgotten conflicts, like Sudan, which are just not in the news anymore,” said the director of Caritas, Jürg Krummenacher.

“So it is very difficult to raise money for projects in these regions. Here I think the Solidarity Foundation could be a great help.”

Schmid, meanwhile, warns voters against assuming that Switzerland’s long humanitarian tradition means it is more generous than other countries.

“What we pay in development aid is more or less the average,” Schmid explained.

“We are not paying more than others, and if we approved the Solidarity Foundation it would be a welcome addition, but it would not bring us to the top of the list.”

Too close to call

Opinion polls predict a very close result, with some analysts suggesting voters will reject both the government’s proposal for the Foundation and the People’s Party’s alternative.

Evidence that the government is concerned about the possibility of defeat could be seen in Swiss President Kaspar Villiger’s last-minute appeal for a yes vote in the pages of the mass-circulation tabloid newspaper, “Blick”.

Walter Schmid agrees that the government may be worried, but says the decision of the voters must be respected.

“It is up to the Swiss people to decide what to do with their gold reserves,” he said. “Any other country would do the same.”

“If we get a yes vote it will be a very strong signal that we want to renew our humanitarian commitment,” he continued. “If we get a no, I think this would have been the likely outcome in other countries too, so there would be no reason to blame Switzerland.”

“But,” he added, “it would be a chance we have missed.”

swissinfo

Solidarity Foundation

The sale of 1,300 tons of gold reserves (around half the country’s total reserves) held by the Swiss National Bank would raise SFr19 billion.

The Swiss government proposes that the annual interest from this sum, around SFr650 million, should be split equally between state pensions, the Swiss cantons, and humanitarian aid projects.

The Swiss People’s Party says all the money should go into state pensions.
Switzerland tops the world in per capita gold reserves, even after the sale of 1,300 tons.