Playing Out the Clock for the Banks
Louis Ruffieux - La Liberte
"March 13, 2009, Switzerland, Luxembourg and Austria hoisted the white flag as had Belgium, Lichtenstein and Andorra previously." What an acceleration of history! Yesterday's intangible principles, "non-negotiable" positions, eternity-flavored certainties: Nothing withstands the storm of international finance. For fear of falling into the hell of a black list, tax havens - or those so-called - are themselves taking the path to a purgatory paved with good intentions.
Switzerland's Finance Minister Hans-Rudolf Merz - along with his Luxembourg and Austrian counterparts - have apparently acceded to the OECD's demands on bank secrecy to avoid having their countries and banks be blacklisted. Louis Ruffieux suggests the terms on which they have "agreed" constitute a form of playing out the clock. (Photo: AFP)
Abandoning the indefensible distinction between fraud and tax evasion, opening up international information exchanges: Hans-Rudolf Merz gave away the minimum yesterday in an attempt to avoid the worst. Banking secrecy, totally preserved for Swiss citizens, will no longer be double-locked for foreign capital.
Capitulation? You'd have to be imprisoned in a mental safe to reject the obvious: Too-long passive, the Federal Council no longer had any choice but resignation in the face of so much pressure. Even the bankers are giving in. They'll lose big time. But they know they'd suffer even more should Switzerland opt for a head-on collision with the European Union and the Organization for Economic Cooperation and Development.
Several days ahead of an already-lost "trial" before the G20 (April 2 Summit in London), the Federal Council hopes to avoid having Switzerland pilloried there. Beyond the impact of the announcement, the concessions presented yesterday are tightly knitted together. It will require a great deal of time to negotiate with dozens of countries. And each agreement will be subject to an optional referendum. Making concessions over the banks, Berne is playing with the country's other safe bet: the clock. But with no guarantee of success.
A form of global governance is moving in that suddenly has the power of a bulldozer. If that governance be tied in with an increase in ethical behavior, it would be welcome.
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Translation: Truthout French language editor Leslie Thatcher.