‘Rescue Credit Suisse costs Swiss citizens 12,500 euros per person’

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‘Rescue Credit Suisse costs Swiss citizens 12,500 euros per person’

To save Switzerland’s image as the world’s financial center, the average citizen has to dig deep into their pockets. Due to the rescue of Credit Suisse by UBS and the Swiss government, the Swiss would have to pay up to 12,500 euros per person, the Bloomberg news agency calculates.

The rescue of the banking giant will cost the Swiss government no less than 109 billion euros, a hefty bill for a country with only 8.7 million inhabitants, Bloomberg writes. In addition to the money promised by the government, the Swiss National Bank is also helping for 100 billion euros, which is not covered by the government. In total, the bill then rises to 209 billion euros, which is equivalent to a quarter of Switzerland’s gross domestic product. This means that the rescue of Credit Suisse exceeds the total expenditure of all EU member states on defense, for example.

‘Eat the Rich’

While the bailout has prevented further distress in the financial sector, the deal is also facing opposition from the Swiss population. Several hundred protesters gathered in front of Credit Suisse’s headquarters in Zurich earlier this week. With slogans such as ‘eat the rich’ and throwing eggs, their disapproval of the rescue of the well-paid bankers was communicated.

“They got Credit Suisse for nothing at all”

Christoph Rechsteine, Tax consultancy MME

To help Credit Suisse further, the Swiss government has not only made financial commitments. Even the law was changed for the bank so that Credit Suisse’s core capital could be increased. As a result, 16 billion euros in bonds disappeared. “The solution that is now in place could provide huge profits for UBS, if all goes well,” Christoph Rechsteiner of tax consultancy MME told Bloomberg. “They got Credit Suisse for absolutely nothing and the government is behind the losses.”

To save Switzerland’s image as the world’s financial center, the average citizen has to dig deep into their pockets. (ANP / Zuma Press)

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