MONEY MASTER

Switzerland will hold a national ballot on Sept 28 to decide whether to abolish its long-standing property tax, worth about  CHF1.7 billion (US$2.1 billion)  annually. Market Snapshot What’s at stake : Ending the tax on imputed rental value — the “theoretical rent” homeowners could earn from their property. Winners : Homeowners could see tax burdens cut by up to  22% . Losers : Renters (60% of the population) won’t benefit, while the cost hits government budgets. Housing impact : Raiffeisen estimates property price growth could accelerate to  5–7%  over the next year. Why It Matters Homeownership in Switzerland : Only 40% own homes, the lowest in Europe vs 70% in the EU. Perceptions of fairness : Many see the current “imputed rent” tax as unfair, even among non-homeowners. Bubble risk : UBS already flags a “moderate bubble” in Swiss housing, while the central bank warns of market vulnerabilities. Debt & Tax Trade-Offs Abolishing the tax also ends deductions ...

Bern Signals Willingness to Revise Offer Amid Trump’s Trade Reset Switzerland is preparing to rework its proposal to Washington after U.S. President Donald Trump slapped the country with a  39% import duty , one of the steepest in his global tariff overhaul. Business Minister Guy Parmelin said the government is “ready to revise its offer” to avert the looming trade shock, as industry groups warn the move could put  tens of thousands of jobs at risk . A special cabinet meeting is scheduled Monday ahead of the Aug. 7 implementation date. U.S. Trade Deficit and LNG Deals on the Table Parmelin noted Trump’s focus on the  US$48 billion U.S. trade deficit with Switzerland  and signaled that commitments to purchase U.S. liquefied natural gas (LNG) or increase Swiss corporate investments in the U.S. could be bargaining chips. “We’ll do everything we can to show goodwill,” Parmelin said, adding that both he and Swiss President Karin Keller-Sutter are prepared to travel to Was...

Switzerland and the European Union (EU) have reached a landmark agreement to secure Switzerland’s continued access to the EU's single market, marking the end of a prolonged negotiation period following the breakdown in relations in 2021. The agreement aims to solidify economic and political ties after years of uncertainty and lays the groundwork for smoother bilateral cooperation. Key Features of the Agreement Safeguard Clause on Immigration: A reworked safeguard clause allows Switzerland to address unexpected challenges stemming from free movement of people, addressing domestic concerns without breaching the EU’s foundational principles. Financial Contributions: Transition Period (up to 2030): Switzerland will contribute  130 million francs  annually. From 2030 to 2036: Contributions increase to  350 million francs ($391 million)  annually. Sectoral Cooperation: The accord includes agreements on science funding, rail transport, and electricity. Swiss businesses had ...

A landmark inquiry into  Credit Suisse's collapse  has criticized  Switzerland's financial regulator Finma  for granting inappropriate capital relief in 2017, which masked the bank's deteriorating condition and delayed corrective measures. The inquiry has prompted calls for stronger regulatory powers and reforms in Switzerland's financial system. Key Findings from the Parliamentary Report 1. Finma's Role and Failures Regulatory Filter Misstep : Finma allowed  Credit Suisse  to report stronger capital levels through a regulatory filter, which obscured the bank's precarious financial state. This concession was deemed legally sound but inappropriate and contributed to the bank's ultimate collapse. Ineffective Oversight : Finma failed to enforce corrective measures despite identifying multiple deficiencies at Credit Suisse over the years. 2. Broader Systemic Issues Government Delays : The Swiss government took too long to implement reforms from the 2008 financi...