KKS meets French counterpart Bruno Le Maire KKS meets French counterpart Bruno Le Maire

France and Switzerland want to strengthen their economic and financial relations. This was announced by Finance Minister Karin Keller-Sutter after a meeting with her French counterpart Bruno Le Maire in Paris on Friday. It was the first high-level visit by a Swiss government member to France since the controversy over the non-purchase of French Rafale fighter jets more than two years ago.

“I feel that there is a great will to restart and really intensify cooperation between the two countries in the financial and economic fields,” Keller-Sutter told the Keystone-SDA news agency on the spot.

After the meeting with Le Maire, she emphasized the “good relationships” she had built with her colleague since joining the finance department in early 2023. The two exchanged views mainly during the Credit Suisse crisis in the spring. “We have agreed to meet in Switzerland next year,” Keller-Sutter continued.

Another topic was the stability of the financial markets, the Federal Ministry of Finance (EFD) announced on Friday afternoon. “Switzerland can bring its own experience at an international level that is useful in assessing the ‘too-big-to-fail’ framework for global systemically important banks,” Federal Councilor Karin Keller-Sutter said, according to the announcement.

No progress on inheritance taxes

According to the FDF, Keller-Sutter and Le Maire also discussed EU issues such as market access for financial service providers from third countries during the meeting. Tax issues were also discussed: for example, the introduction of the minimum tax of 15 percent for international companies. Le Maire confirmed France’s will to apply this tax from January 1. “We want to have the same schedule as the European countries,” Keller-Sutter said.

Also on the agenda was the entry into force of the agreement on the taxation of cross-border commuters – especially in the case of teleworking. Keller-Sutter explained the federal government’s schedule to her colleague. “We will pass the message on to Parliament in the coming weeks,” she said. If the agreement is accepted, she wants it to enter into force at the end of next year or early 2025.

In the meantime, little progress has been made on double inheritance taxes. The subject was raised, but “Mr Le Maire is very reserved,” Keller-Sutter explains. “I believe that France does not want to revisit the issue so quickly for domestic political reasons,” she added. Since the beginning of 2015, there is no longer a double tax treaty between Switzerland and France with regard to inheritances.

Relationships characterized by turbulence

Relations between Switzerland and France have been gradually returning to normal for about a year. Previously they were characterized by turbulence. In 2021, Switzerland insulted France by not purchasing the French Rafale fighter jet and by burying the framework agreement with the EU.

Last year, Federal President Ignazio Cassis and current Federal President Alain Berset held successive talks with French President Emmanuel Macron, among others. The latter is expected to pay a state visit to Switzerland in mid-November.

According to the FDF, France is Switzerland’s fifth most important trading partner. In 2022, the countries exchanged goods and services worth almost 60 billion francs. There are more than 1,300 Swiss companies active in France, employing more than 300,000 people there.

(jam/sda)