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EUROPEAN UNION

Bern pushes ‘global standard’ for bank data

The Swiss federal government wants the OECD group of industrialized nations to broker a global deal on the exchange of information about people who bank their cash outside their homeland.

Bern pushes 'global standard' for bank data
Photo: OFCL

In a statement issued on Monday, the government reiterated its view that a "global standard" was necessary for the automatic exchange of information for taxation purposes.

Bern maintains that all the globe's offshore havens — for example, Britain's various Caribbean territories — must also fall into line to ensure a level playing field.

"The most suitable body for preparing this would be the broadly based Organization for Economic Co-operation and Development (OECD)," it said, referring to the 34-nation grouping.

The statement was issued after Swiss Finance Minister Eveline Widmer-Schlumpf met with European Union tax chief Algirdas Semeta.

The financial crisis has thrown the spotlight squarely on the issue of tax evasion, notably by EU and US citizens who bank their cash out of sight of their home countries' authorities.
   
Swiss lawmakers are 
Tuesday scheduled to vote on a controversial deal with Washington that would give the Alpine country's banks legal closure in probes of their alleged complicity with tax evasion, in exchange for their paying potentially massive fines.

Switzerland has also repeatedly locked horns with the EU over the tax issue.

"Switzerland expects the EU to dispense with defensive measures against Switzerland and to be fair," the federal government said.

Switzerland, staunchly outside the 27-nation EU, is surrounded by the bloc's members and has tight economic ties with them.

Its financial sector is a traditional refuge for foreign depositors in tough times, and with the crisis having put tax havens into sharp focus, Switzerland has fought to defend its long-cherished principle of secrecy by giving ground in some areas but declining to allow the automatic handover of account details.

The EU has asked Switzerland to open talks on updating a 2005 deal on taxing the savings of EU citizens held in the banks in the Alpine nation.

"Switzerland has been willing to discuss such an amendment of the agreement since 2009, but it expects the EU to maintain access to its markets for financial services," Bern said.

Switzerland taxes the interest on savings of such depositors at a rate of 35 percent — raised from the original 20 percent in 2011 — and pays the funds anonymously back to member states.
   
Only interest in the purest sense is taxed, but Brussels wants to widen the 
net to cover dividends from shares and life insurance policies, as well as capital gains from the sale of shares and real estate.
   
The issue has sparked bitter debate within the EU itself, though resistance 
by traditional havens Austria and Luxembourg to the automatic sharing of bank records has been chipped away, five years after other member states approved new rules.

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LEARN ABOUT SWITZERLAND

COMPARE: Maps reveal the areas of Swiss cities with best access to services

A recent landmark study has placed Paris and Milan as being closer to the goal of being a ‘15 minutes city’ than any other cities worldwide - but how do Swiss cities Zurich, Geneva, Basel, Bern and Lausanne compare?

COMPARE: Maps reveal the areas of Swiss cities with best access to services

The study, published in the journal Nature Cities earlier this week, analysed data from over 10,000 cities globally. It assessed how far residents need to walk or cycle to reach essential services including shops, restaurants, education, exercise and healthcare.

The ’15-minute city’ concept, which gained traction during the COVID-19 pandemic, focuses on enhancing accessibility and sustainability by ensuring that basic services are within a 15-minute walk or bike ride.

The online tool allows you to click on an area of the city to see ho accessible services are by bike or by foot.

READ MORE: Paris and Milan judged closest in the world to becoming ’15-minute cities’

The study also introduced an online tool that visualises the distances residents must travel, using a colour scale from dark red (long distances) to blue (short distances).

“A lot of people already live in a 15-minute city,” study co-author Hygor Piaget Monteiro Melo told AFP.

But it depends on where you look within a city, he said, because of the inequality in access to services between the centre and periphery. This in equality can be seen when examining Switzerland’s major cities.

As the maps below show, while some cities in Switzerland are making significant progress toward the 15-minute city goal, others still have considerable work to do.

BASEL (View on page)

Historic Basel has kept much of the shape and size that it has for centuries, with urban spread distributed almost consistently in each direction. This means that public transportation and community services have kept pace with the growth of the city. 

READ MORE: The nine maps you need to see to understand Switzerland

BERN (View on page)

While much of the ‘federal city’ demonstrates excellent mobility for its citizens, recent expansion into the south-west has not kept pace with the development of basic public services, meaning a long walk for those doing their shopping or visiting a doctor. 

GENEVA (View on page)

Geneva’s status as a diplomatic and scientifc capital is reflected in its excellent public transportation and distribution of shops and basic services. Only areas towards the small hamlet of Carouge in the southeast score over 18 minutes on the accessibility scale. 

LAUSANNE (View on page)

 

Lausanne’s growth in recent decades as part of the life sciences focused ‘Health Valley’ has meant that newly-developed urban area to the northeast and northwest are poorly served by public amenities, necessitating long commutes for those shopping or visiting healthcare. 

ZURICH (View on page)

Zurich is Switzerland’s most expensive city, so it’s no surprise that citizens of the city enjoy excellent access to public transport, amenities and shopping. That said, recent expansion to the east and west has led to bands of relative inaccessibility, particularly concentrated around Wettswil am Albis to the west and Fallanden to the east. 

Readers of The Local who are cyclists in Zurich have criticised the city’s lack of infrastructure for cycling such as bike lanes.

READ ALSO: ‘There are no cycle paths’ – How Zurich could improve safety for cyclists?

Earlier this year The Local also reported how Swiss cantons were criticised for dragging their heels in implementing new bike lanes.

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