Brown Voices Support For Switzerland Ahead Of G20

by Ulrika Lomas, Tax-News.com, Brussels

17 March 2009

On the sidelines of the informal meeting of the International Monetary and Finance Committee (IMFC) in London on March 14, Swiss President Hans-Rudolf Merz met with British Prime Minister Gordon Brown to discuss various areas of interest, primarily international cooperation in tax matters as well as current efforts to stabilise international finance markets.

A Swiss government release informed that Merz explained to Brown that there were no grounds for Switzerland to be placed on a G20 list of uncooperative states. Merz confirmed that Switzerland was willing to enter into negotiations to revise double-taxation treaties on the basis of the OECD standard on administrative assistance in tax matters. He furthermore stated that Switzerland should be allowed to take part in G20 activities in relation to this and other matters.

In response Brown voiced support on behalf of the British government, stating that his government would support Switzerland’s stance, in that Switzerland should not be included in a list of uncooperative states. Brown also pledged support for direct Swiss involvement in G20 activities at least on a technical level.

Also discussed at the meeting, both ministers agreed that the situation in the financial markets worldwide remains tense, expressing concerns over the growing number of developing and emerging countries around the world requiring support from the International Monetary Fund (IMF). Although welcoming the IMF’s work, Merz voiced concerns over additional member country quota increases, suggesting that they are not the correct course of action in response to the crisis. Brown and Merz agreed that the IMF should remain at the heart of the international financial system, however warning that the IMF would need to be strengthened as an institution.

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