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With the CS rescue, the Bundesrat presented parliament with a fait accompli. The federal government is prepared to spend 109 billion francs to save Credit Suisse from collapse.
Parliament must now give the green light to the deal between the federal government, CS and UBS. On Tuesday, the National Council and the Council of States will meet for an extraordinary session, which will deal exclusively with the CS rescue and its consequences. Although it cannot legally reverse the government’s emergency decision, the vote on the billion-dollar loans is not a symbolic exercise.
Multiple parties threaten no
The SP has already announced that it will reject the loans. She is only willing to agree if Parliament also votes at the special session on the bonus ban she is calling for and an increase in bank equity ratios – and accepts the demands. It won’t come to that.
The Greens and the SVP are also discussing whether they should invite Finance Minister Karin Keller-Sutter (59, FDP). They also want to attach conditions to a yes. The independent Schaffhausen state councilor Thomas Minder (62), a member of the SVP faction, had announced to Blick that he would submit an application to reject the 9 billion guarantee for UBS.
The final decision on which slogan to adopt will be taken by parliamentary groups on Tuesday morning. It can be assumed, however, that not all MPs will then follow the voting advice of their group. This makes the outcome of the vote difficult to predict. One thing is certain: it cannot be ruled out that the National Council will reject the loans.
“Markets are likely to react negatively”
Several parliamentarians warn against this step. Even if this would not actually change anything, it could have consequences. “A no to the loans could have a negative impact on the stability of the financial center and UBS. The markets are likely to react negatively,” says GLP President Jürg Grossen (53).
Individual SVP representatives also strongly warn against a defiant no. The decision could be misunderstood abroad and the financial world could be thrown into turmoil again.
Many demands…
Another heated discussion will probably take place behind closed group doors on Tuesday. Apart from the discussion about the billion-dollar loans, the parliamentarians will mainly use the days of the session to submit a lot of proposals, with or without new political demands. No nails are made.
It would certainly have been possible to discuss concrete legislative changes now. The Left-Green insisted. But the only thing that could be agreed upon was that the Bundesrat first had to write a series of reports.
… and few expectations
What are you realistically hoping for from the session that runs through Thursday? “Nothing,” says SP party leader Nordmann (50) plainly. The leader of the Greens Aline Trede (39) also says that you do not have “high expectations”. The only goal of the left: “We have to keep the pressure up,” said Trede. Otherwise, it is feared, ordinary people will quickly forget their current promises of stricter rules.
And so the special session will probably be a little bit like the CS general session last week. Those present are faced with a decision they can no longer change. They mainly use the meeting for one thing: to blow off steam.
Source:Blick
I am Liam Livingstone and I work in a news website. My main job is to write articles for the 24 Instant News. My specialty is covering politics and current affairs, which I’m passionate about. I have worked in this field for more than 5 years now and it’s been an amazing journey. With each passing day, my knowledge increases as well as my experience of the world we live in today.
