Swiss Finance Minister Karin Keller-Sutter has expressed concerns about the high levels of debt in the United States and Europe, warning that these levels pose a significant threat to global financial stability and Switzerland’s economic well-being. In an interview with the Swiss daily Blick, Keller-Sutter praised Switzerland’s “prudent” financial management, which she believes has equipped the nation to navigate the economic difficulties brought on by the COVID-19 pandemic and the conflict in Ukraine.

In contrast, Keller-Sutter highlighted that several countries are “so heavily indebted that they can barely respond,” citing France as an example. She emphasized that the recent minor stock market downturn at the beginning of August served as a warning signal, reflecting investors’ anxiety about a potential recession.

Keller-Sutter also addressed a government initiative requiring Swiss bank UBS to maintain a higher capital reserve following its acquisition of the now-defunct Credit Suisse last year. She justified these increased capital requirements as essential for safeguarding Switzerland against another banking crisis. UBS CEO Sergio Ermotti has voiced opposition to this proposal, and Keller-Sutter stated that she has not had any further discussions with him regarding the matter.

The interview also touched on rumors suggesting that UBS might consider relocating its headquarters if it believed the conditions in Switzerland were no longer favorable. Keller-Sutter responded that the Federal Council believes having a large Swiss bank is beneficial for the economy, but the bank must determine its own strategic direction.

Overall, Keller-Sutter’s statements underscore the importance of disciplined financial management and the need for Switzerland to maintain a stable financial environment.