Swiss Finance Minister Karin Keller-Sutter said that the debt of the United States (U.S.) and Europe is a risk for Switzerland and the rest of the world.
In an interview with the Swiss newspaper Blick, she praised Switzerland’s “disciplined” finances, which she believes have enabled the country to cope with economic challenges due to the coronavirus pandemic and Russian aggression against Ukraine. On the other hand, according to her, other states are so indebted that they can hardly act. She pointed out France as an example of this.
“Or, look at the U.S. It’s a ticking time bomb. The small collapse in the stock markets at the beginning of this month was a warning shot. It was an expression of investors’ fear of recession. Debt in the U.S. and Europe is a risk for Switzerland and international financial stability,” said minister Keller-Sutterstated.
She was talking about the government’s proposal for the Swiss bank UBS to retain more capital after it bought former competitor Credit Suisse, following the bank’s collapse last year. That’s how she justified additional requests to protect Switzerland from another banking collapse, Reuters reports.
