The former CEO of UBS and Credit Suisse criticises the Swiss fiscal policy as shortsighted and dangerous. In a widely noted article he analyses the bondage of the Swiss Franc to the Euro and outlines its consequences as damaging. “Only the richest one percent of the Swiss population benefit from the policy. The people will have to bear the damage.”
Grübel argues that we witness a historical moment: After years of cautionary balance, the central banks nowadays directly engage in economic processes and influence fiscal outcomes, driven by political motivation. Central banks have blown up their balance sheets, pretending to boost the economy. What they really do is passing the burden to the next generation. In Switzerland, linking the Franc to the Euro was the most significant intervention in recent history. It triggered an effect like the one of free money for the Swiss economy: exports exploded and there is almost full employment.
Grübel suspects politicians of stapling Switzerland to the Eurozone through the back door: After years of bonding the Franc to the Euro, the government could argue that the measure proved to be a success and that a formal annexation to Europe would be the next logical step. Besides, an escape from the Euro could prove very costly.
Grübel has a point here, and as far as I remember there were always Swiss politicians dreaming of the annexation to a bigger Reich since 1933.
You can read the full German article here: [Den Schaden tr?gt das Volk]