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It was an eventful political week: The European Court of Human Rights condemned Switzerland and the Federal Council presented its report on coming to terms with the CS debacle. What does the ruling mean for Switzerland and are the measures to regulate the big banks effective enough?
The European Court of Human Rights (ECHR) condemns Switzerland for not doing enough to protect the climate. A historic success for the plaintiffs: When a lawyer told her that they had reached the maximum in court, it took her breath away, said Rosmarie Wydler-Wälti, co-president of the Climate Senior Women Association on Friday evening in the “Arena”.
The verdict, passed by 16 votes to one, triggered mixed reactions among the Swiss parties. SVP National Councilor Lars Guggisberg finds the decision not only “absurd” but also “anti-democratic”. “This is an example of what happens when we submit to foreign judges,” said Guggisberg. The ECHR is made up of the member states of the Council of Europe and ensures that the European Convention on Human Rights is adhered to. In a media release this week, the SVP called for Switzerland to leave the Council of Europe. Other critics don’t go that far: “As a lawyer, I have big institutional questions about what the verdict is supposed to achieve,” says FDP National Councilor Beat Walti. However, leaving the Council of Europe would be “completely excessive”.
As a lawyer, I have big question marks institutionally about what the verdict will bring.
The discussion surrounding the interference of the ECtHR is nothing more than a “diversionary tactic,” says SP National Councilor Céline Widmer, annoyed with her council colleagues. “We all know that we have to do more in the area of climate protection.” GLP Councilor of States Tiana Moser is also calling for more measures. The expectations of climate seniors are high. The Federal Council must act immediately, said Wydler-Wälti. Switzerland cannot afford to make mistakes, “the climate is too big to fail”.
Federal Council banking report: “The focus is missing”
“Too big to fail” – this keyword also fits the second big topic of the political week in Switzerland. Just over a year ago, UBS had to take over Credit Suisse. Since then, politicians have been concerned with the question of how a repeat of the CS debacle can be prevented. The Federal Council is now proposing 22 measures in a report. He received a modest rating for his package of measures from the CEO of the Swiss Bankers Association, Roman Studer: “There is a lot in it, but there is too much in it.” Many measures are right, but there is a lack of focus, says Studer.
I am very concerned that we are not taking the risk we have with this giant bank seriously enough.
The “Arena” guests are also rather cautiously positive about the report. For GLP Councilor of States Moser it is “a first step”, for SVP National Councilor Guggisberg “a good interpretation”. SP National Councilor Widmer just doesn’t share this view: “I’m very worried that we’re not taking the risk we have with this giant bank UBS seriously enough.” That’s why the SP is calling for a higher equity ratio for big banks. Moser counters: “You have to be aware that this also has a price, and we as a society pay it.” For FDP National Councilor Walti, the question of the equity ratio is not the biggest construction site either.
SP calls for clear rules for banker bonuses
The high salaries of top bankers always make headlines and cause discontent among the population, such as the recent salary package of 14.4 million francs for UBS CEO Sergio Ermotti.
For Céline Widmer from the SP, this is a clear signal: “It seems we haven’t learned anything. If the SP has its way, clear rules should apply to bonuses in the future. In view of last year’s crisis, Moser would also have expected “more sensitivity” from UBS and Guggisberg doubled down: “That’s really unpleasant, certain people behaved like elephants in a china shop.” The bank’s representative, Roman Studer, says: “I can understand that this affects people, but the level of wages is not relevant to stability.” However, none of the guests in the studio support the SP’s demand for greater regulation of bonuses.
After the Federal Council presented the measures in its report this week, the political implementation now begins.