Mr Villiger is the longest serving cabinet minister, having clocked up 12 years of service, and held the largely ceremonial position of president once before, in 1995. He takes over the position from the Transport Minister, Moritz Leuenberger, and will retain his ministerial portfolio while fulfilling the one year presidency.

However, many believe that this will be the political high point of Mr Villiger's career, as it is understood that he intends to resign from the cabinet before the next general election in 2003.

Although the general consensus is that the Finance Minister- who has not had the easiest of years, and has been forced to face the international community several times over accusations and scandals within the Swiss banking industry- will make a good president, there are still dissenting voices from among his political colleagues.

On hearing of Mr Villiger's appointment, Luzi Stamm of the Swiss People's Party, observed that in his opinion, the Finance Minister had not improved as a politician over his twelve years in government, and criticised him for being too soft in his current position, and for failing to curb government spending.

Writing in 'Der Bund', political correspondent Johann Aeschlimann observed that the new President has changed his political spots, pointing to the decision earlier this year to bail out ailing national airline, Swissair: 'Villiger started out as a neo-liberal politician who ends this year as being the one who has led the biggest state intervention in the economy the country has seen in 20 years,' he argued.

Economics Minister, Pascal Couchepin was elected to support Kaspar Villiger as vice president, and will assume the presidential role himself in 2003.