“There is a risk of tax shortfalls”

class=”sc-3778e872-0 cKDKQr”>

Ms. Mauch, for the second time in your term, a bank bailout is underway. How does this deja vu feel?
Corine Mauch: It shocks me that the state has to spend billions again to save a big bank. The measures taken after the financial crisis were clearly not strong enough.

In the National Council, the SP faction voted against the loan of 109 billion. Was that wise?
My party is already calling for stricter regulations in 2021, for example with regard to bonus payments at systemically important banks and higher capital requirements. But it was thwarted by the bourgeois parties. It is true that the SP now continues to apply pressure – knowing that the refusal of the loan is ultimately of a symbolic nature.

What should one do now?
First we need answers: How did this debacle ever happen? Which security mechanisms have failed? Precautions should be taken based on this analysis. One thing is clear: this history must never repeat itself. Credit Suisse made a loss of $3 billion over the last decade – and still paid out $32 billion in bonuses. There’s definitely something fishy there.

So are you in favor of a bonus ban?
Bonuses should in no way mean that the state has to answer for misconduct simply because a private company has taken absurdly high risks. This was clearly the case at Credit Suisse, where risk management was inadequate. Incentives that promote this behavior should therefore be abolished.

After the financial crisis, the major banks paid no corporate income tax for many years. Should the city of Zurich prepare for more lean years?
It’s still too early to judge. It is completely unclear how this bank merger will be carried out. There are different demands in the air. For example, that CS Switzerland must be preserved. Until these questions are clarified, no reliable statements can be made. But of course there is a risk of tax shortfalls.

To reduce cluster risk, the focus was on diversification after the UBS bailout. The project failed: Zurich still depends on the banks, which contribute about a quarter of the revenue.
Zurich remains an important financial center. But it doesn’t just consist of banks. This includes insurance companies, financial services companies, the fintech scene. All in all, these players account for a good quarter of the added value. That is a very high percentage. We do not dictate to the private sector which companies are allowed to operate here. But we can create good preconditions. These have an effect, diversification takes place.

What are you up to?
For example, urban production has become more important. Ten years ago you had the feeling that this area had no future in a city like Zurich. Land prices are decisive. We have removed the existing industrial estates from the redevelopment. The Zuriga company builds its coffee machines in the former SBB workshop and someone makes plastic substitutes from organic waste.

That may be good for the image, but it does not fill the city coffers.
I don’t know which company pays how much tax, tax secrecy applies here. But, of course, banks are important taxpayers. Equally important, however, is an ecosystem that promotes innovation and in which people enjoy living and working. Zurich used to have the image of a banking city. Recent studies show that this perception has changed. Zurich stands for a high quality of life, the great location on the lake! A former ETH president once said, “The brightest minds come to the coolest cities.” That sums it up.

Google also has smart minds. The group ensures diversification, but hardly pays corporate tax.
The tax revenues of large ICT companies are not as high as we would like. The reasons for this are complex. We suspect that the research and development deductions introduced by the tax reform will be widely applied. We don’t know exactly. The Conference of Urban Finances has been calling for an analysis of the impact of these reforms for years.

Although Google employees pay taxes on their high incomes, they also cause rents to rise. Their diversification strategy exacerbates the housing shortage.
This perspective falls short. What is true is that the socio-economic status of Zurich residents has increased in recent years. An ETH study shows that people with higher incomes move in after a building is renovated. So there is this displacement effect. But we don’t want Zurich to become a city where only people who can afford it live.

How do you intend to counter this?
The most effective means is an active housing policy. We build apartments, buy houses. Hence my call to all property owners who want to sell: Sell to us! The share of non-profit housing must increase. The public sector requires a right of first refusal. The quality of life is also so high because Zurich is mixed.

The reality is that the less fortunate will have to leave. There are long lines for apartment viewings. Apparently people are so desperate that they voluntarily pay landlords higher rents.
Gentrification is a real threat. If the vacancy rate is as low as it is currently in the city of Zurich, it could lead to such excesses. We must counter this. In June, the city of Zurich will vote on a housing fund that should provide more affordable housing. The financial authority of the city council in this area was already significantly expanded in the autumn of 2020. In addition, there are tools for spatial planning with which we can demand affordable housing.

At the beginning of April there were wild riots in Zurich. It was also about gentrification.
Whatever the reasons, nothing justifies these excesses of violence, which I unequivocally condemn. It doesn’t solve any problem. What frightened me most were the expressions of solidarity with the rioters from the entertainment crowd. Police officers put their health at risk to ensure our safety. I find it unbelievable that this work is not respected.

On May 1, the mood was able to flare up again. How concerned are you?
Labor Day is an important festival for Zurich. Tens of thousands gather to celebrate peacefully. I have faith in our city police that they will be prepared for the eventuality. In recent years, it has always been relatively quiet on May 1. But of course the most recent events are taken into account in the planning of the operations center.

First of all, the “Sechseläuten” will take place tomorrow in Zurich. Evil tongues also refer to the event as ‘banging carnival’. Are you in a party mood?
(laughs) I have appointments and agenda items, but I’m looking forward to the Spring Festival – hopefully with spring-like weather.

Source:Blick