Swiss President Opens 'Shaping the Post-Crisis World' Debate At The WEF

by Ulrika Lomas, Tax-News.com, Brussels

02 February 2009

Speaking at the World Economic Forum’s (WEF) Opening Address Swiss President Hans-Rudolf Merz stressed the importance of tightening regulation and financial market supervision and urged increased cross-border cooperation between supervisory bodies.

The President began by stressing the importance of the WEF annual meeting and outlined three areas which would need significant improvements which are needed to overcome the financial and economic crisis and prevent future crises, he stated that:

• There needs to be an open debate on values. Growth must be built on quality, sustainability and values;
• A new philosophy needs to be adopted in respect of financial market supervision and regulation. Global players need global rules. Supervisory authorities will increasingly have to cooperate across borders;
• The economic downturn should be seen as an opportunity for innovation. The downturn should be seen as an opportunity to develop new environmentally-sustainable products.

Speaking on the need for improved regulation and financial supervision he said:

“A new philosophy needs to be adopted in respect of supervision and regulation in the financial sector. Globalisation is extremely advanced; consequently, global rules need to be developed for the supervision and regulation of global players. Cross-border cooperation must become the norm. But all that is easier said than done. Tendencies to regionalism and isolated solutions undermine such efforts. In a globalised economy, regional crises have global consequences. That is something we have (to learn) to deal with.” Adding, “a further challenge is finding a responsible balance between the market and the State. Market failure must not result in State failure, and laissez-faire must not result in State monopoly.”

“Given the array of eminent delegates from industry, government and civil society assembled here, this Annual Meeting heralds to be one of the most important by far. I have no doubt that with regard to the themes I have outlined, it will also serve as a powerful catalyst in the search for sound solutions.”

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