Swiss President Hesitant On June OECD Meeting In Berlin

by Ulrika Lomas, Tax-News.com, Brussels

06 May 2009

Swiss President and Finance Minister Hans-Rudolf Merz has been wrongfooted by the Germans in the run up to the OECD tax summit in Berlin on 23 June 2009.

Having protested strongly to the OECD that Switzerland should be allowed a seat at all discussions where tax havens are discussed, and moreover that it would be an affront not to be invited, Merz has proved surprisingly coy about his participation in the upcoming OECD talks in Berlin. Earlier, Peer Steinbrueck, German Finance Minister, had delayed inviting Switzerland, Austria and Luxembourg to the talks long enough to stir up controversy in the Swiss press as to whether Switzerland would be snubbed yet again. Steinbrueck had let it be known that this was a follow up conference to the European finance ministers' meeting in Paris last October when the campaign against tax havens was launched, and the three countries had absented themselves voluntarily from that meeting.

However, when Switzerland was finally invited along with Austria and Luxembourg, Merz spent the best part of a week deciding whether to take part, stating that he wanted to scrutinize the agenda before committing to participation. After a radio interview late in April, he made his strongest statement yet, saying that he was 'minded' (geneigt) to take part. It appears increasingly likely that, with the participation of Switzerland, Austria and Luxembourg, these three countries will be called upon to account for any delays in progress towards meeting OECD standards on transparency and tax information exchange before the other European finance ministers in Berlin.

Meanwhile Merz's hesitation has been openly criticised by close colleagues, including Alain Berset, President of the States Council, and later Evelyn Widmer-Schlumpf, Justice Minister and Deputy Finance Minister. In an interview with Schweizer Radio, Berset said he found Merz's stance 'not understandable' and that it would be unthinkable not to participate in the Berlin talks. Not to participate could only weaken Switzerland's position rather than strengthen it. An 'empty chair' policy would only harm Switzerland.

Widmer-Strumpf, who is also part of the three person steering committee on bank secrecy with Merz, appeared later on a Radio DRS discussion and stated that it was absolutely essential for Switzerland to take part in the discussions in Berlin. If Switzerland has the opportunity to express its opinions, then it must do so in its own interests, he said.

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