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[florenceorbis] 23/5/2021 16:38

Rumours abound over Swiss government’s EU ‘framework deal’

The Swiss government is apparently set to abandon negotiations with the European Union about an umbrella accord regulating bilateral relations.

This content was published on May 23, 2021 - 16:51 May 23, 2021 - 16:51
swissinfo.ch/urs

Several Sunday newspapers quoted unnamed sources saying that none of the seven ministers saw any chance of winning over parliament or voters for the so-called framework agreement.

Negotiations on such a deal formally ended in 2018 but the Swiss government demanded ‘clarifications’ on three points, including the protection of salary levels, access to the Swiss social security system as well as state subsidies.

Following talks with EU Commission President Ursula von der Leyen in Brussels last month, the Swiss president, Guy Parmelin, said fundamental differences remained with the 27-nation bloc about the future of bilateral relations.

Both sides insist on concessions to break an impasse and reach an acceptable solution after more seven years of talks.

The SonntagsBlick newspaper also reports that the EU is apparently willing to make some compromise offers.


It is widely expected that the Swiss government will decide next Wednesday about its position amid concerns about possible retaliatory measures by Brussels over access to the European electricity market and research projects.

Efforts to appease Brussels apparently include the payment of CHF1 billion ($1.1 billion) to an EU fund to ensure Switzerland’s participation in the Erasmus student exchange and research programmes, says the NZZ am Sonntag newspaper.

Switzerland has concluded more than 120 bilateral agreements with its main trading partner, but the EU wants an overarching institutional agreement to simplify relations.

Switzerland is not a member of the EU and voters in 1992 rejected a proposal to join the European Economic Area Treaty.

[florenceorbis] 23/5/2021 13:21

When is the next Swiss Stock Exchange holiday?

The next Swiss Stock Exchange holiday is Pentecost and will be observed on Monday, May 24, 2021 which is tomorrow.

[florenceorbis] 23/5/2021 08:35

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[waldron] 21/5/2021 07:46

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[waldron] 20/5/2021 06:42

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[waldron] 19/5/2021 07:19

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[waldron] 18/5/2021 07:42

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[waldron] 14/5/2021 07:07

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[waldron] 10/5/2021 07:31

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[waldron] 06/5/2021 07:20

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[waldron] 05/5/2021 07:54

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[waldron] 04/5/2021 07:56

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[waldron] 30/4/2021 22:49

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[waldron] 30/4/2021 16:13

Switzerland diplomatically rejects Biden’s ‘fiscal paradise’ label

Biden with US flag in background

The United States is calling for a global minimum corporate tax. The Washington Post

United States President Joe Biden surprised Bern with his decision to single out Switzerland as a fiscal paradise in his State of the Union annual address to Congress on Wednesday.


The Swiss government has sent a letter in response to the president’s remarks which compared Switzerland to Bermuda and the Cayman Islands as a tax haven.

On Thursday, Finance Minister Ueli Maurer expressed surprise at the comparison but also downplayed its significance in statements to German-language public broadcaster SRF.

Switzerland “is a country that fully respects all its international obligations and is very transparent,” Maurer told SRF.

"I don't think that's the position of the (US) government, but the speech writers didn't know the real facts yet," he added.

Switzerland has contacted the Biden administration in writing, he said. Maurer also intends to make his views known personally at a meeting with his US counterpart Janet Yellen in a few weeks' time.

"I believe that such things can happen," he said. "The facts are totally different, so it shouldn't really worry us."
Tax dodging companies

In his speech to the US Congress, Biden slammed 55 of the largest US companies for not paying federal income tax in 2020 while making over $40 billion (CHF36 billion) in profits.

“A lot of companies also evade taxes through tax havens in Switzerland and Bermuda and the Cayman Islands,” he said. “And they benefit from tax loopholes and deductions for offshoring jobs and shifting profits overseas. It’s not right.”

He said his government will reform corporate taxes so that such companies pay their fair share and help pay for the public investments their businesses will benefit from as well.

The US under the Biden administration is pushing for a worldwide minimum tax to dissuade multinational companies from shifting profits and tax revenues to low-tax nations.

That could be a problem for Switzerland which is home to some of the largest global companies and has one of the highest concentrations of Fortune 500 companies in the world.

Washington wants the global corporate tax rate to be at least 21%. Swiss cantons on average tax corporations at around 15%, according to consulting firm KPMG.


With unilateralism on the rise in global politics, Switzerland is finding it more difficult to interpret its neutrality.

That goal is to conclude a global accord by mid-2021. The negotiations are being co-ordinated by the Organisation for Economic Co-operation and Development (OECD) and build on previous work to reform corporate taxation.

[waldron] 30/4/2021 07:05

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[waldron] 25/4/2021 19:41

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[jadeticl3] 22/4/2021 12:33

I hope this moves to 85p by the end of the day.

[napoleon 14th] 22/4/2021 12:17

Good progress shown in today's TU.

[sarkasm] 22/4/2021 12:09

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[waldron] 19/4/2021 20:11

AXA Switzerland Activates Bitcoin Payment Option For Customers
Avatar

Author: Jimmy Aki

Last Updated: 17 April 2021

Switzerland’s biggest insurance firm AXA has activated a cryptocurrency payment option for its customers, thereby becoming the first all-line insurer to roll out the plan.
Pay Insurance Premiums with Bitcoin

The latest policy of the leading insurance company provides all private AXA customers with a Bitcoin payment option.

In this regard, AXA customers can effect payment for insurance premiums relating to non-life insurance products using their Bitcoin.

The insurance firm said that the policy will be implemented in collaboration with popular cryptocurrency broker Bitcoin Suisse.

However, the Bitcoin payment option allowance is not extended to life insurance because of prevailing regulatory barriers.

More importantly, the company explains that the incorporation of cryptocurrency payment options is due to the accelerated growth of the digital economy witnessed at the peak of the coronavirus pandemic.

Furthermore, the company cited its market research report in 2019 as another reason for adopting cryptocurrency.

It explains that the market report showed that a third of respondents between the ages of 18 and 55 had an interest in cryptocurrency.

Speaking on the development, Claudia Bienentreu, head of open innovation at AXA Switzerland, commented that the acceptance of Bitcoin payment underscores the company’s responsiveness to customers’ demand.

Under this new arrangement, customers can make online transfers with a unique reference number. Instructively, the amount owed in Swiss francs will be calculated in Bitcoin’s equivalent.

Interestingly, the company holds that customers will not bear the risk of unstable exchange rates because the specified rate will be provided.

Additionally, AXA is not charging customers using the Bitcoin payment option with any additional fees.
Management of Bitcoin Payment Option

The adoption of Bitcoin payment options by many companies across the world comes with different internal regulatory mechanisms.

For Switzerland’s leading Insurance company, AXA, the company has disclosed that it will not hold any Bitcoin on its balance sheets despite accepting the cryptocurrency as a payment option.

In this regard, AXA maintains the incoming Bitcoin will go into the hands of crypto broker Bitcoin Suisse.

While AXA does not charge any additional fee for using a crypto payment system, intending customers should bear in mind that Bitcoin Suisse charges a 1.75% commission regarding Bitcoin to Swiss Francs exchange rates.

On the other hand, the CEO of Tesla Inc., Elon Musk, disclosed that accepted Bitcoin used by customers to purchase its electric cars would be added to its balance sheet.

Musk added that the company would make use of internal and open-source software to facilitate the payment process.

Also, the company will operate its Bitcoin nodes to verify each transaction.

[waldron] 18/4/2021 09:35

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[sarkasm] 16/4/2021 15:54

US no longer considers Switzerland a currency manipulator
Swiss National Bank
SNB foreign currency interventions last year were at their highest level since 2012.

The United States has removed Switzerland from its list of currency manipulators despite the Swiss National Bank (SNB) spending CHF110 billion ($119 billion) in the foreign exchange market last year.
This content was published on April 16, 2021 - 16:00 April 16, 2021 - 16:00
swissinfo.ch/mga

Reporting to Congress on Friday, the US Treasury Department saidExternal link it had “determined that there is insufficient evidence to make a finding that Vietnam, Switzerland, or Taiwan manipulates its exchange rate”.

However, the Treasury added that it would continue with “enhanced engagement” with Switzerland. “This engagement includes urging the development of a plan with specific actions to address the underlying causes of currency undervaluation and external imbalances.”

China, Japan, Korea, Germany, Ireland, Italy, India, Malaysia, Singapore, Thailand, and Mexico are also being closely monitored by the US for their currency practices.

The US labelled Switzerland a currency manipulator in December, but the SNB said this would not affect its monetary policy strategy.
Label

To earn the label of currency manipulator a country must have a minimum $20 billion bilateral trade surplus with the United States, foreign currency intervention exceeding 2% of Gross Domestic Product and a global current account surplus exceeding 2% of GDP.

The coronavirus pandemic put extra pressure on the Swiss franc as a safe haven currency last year. This caused the SNB to raise its foreign currency intervention to the highest levels since 2012.

At the end of 2020, the SNB’s total assets came to CHF999 billion, compared to CHF861 billion one year earlier. Total currency reserves stood at CHF962 billion at the end of 2020. The majority of these reserves (91%) was held in the form of foreign currency investments, the remainder in gold (5%).



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