The Swiss economy has always sailed independently from the rest of Europe due to its ability to retain its banking secrecy.
But the current international campaign to find and retrieve money owed government from tax evaders might very soon force the Swiss stronghold to give up its coveted privilege.
Although there are no measures on the table yet, most economist and financial law experts are agreed that there might not be a way out for Switzerland.
Switzerland from its side has tried to do its own cleaning up, hoping to avoid a complete crackdown, by allowing some scrutiny of its undeclared funds. But it has avoided and refused to comply with the automatic exchange of banking information.
But the times, they are a'changing. Luxembourg has already capitulated and will be allowing the automatic information exchange with its banks starting in 2015.
In addition, Switzerland has had to sign an agreement with the United States that allows the data exchanges in that country, so that they can keep doing business there. And that is already a big slice of the pie.
Switzerland is not exactly a tax haven, like some of the Caribbean Islands, yet its reputation is only slightly better than those countries, something the Swiss loathe. In fact it has landed in the list of tax havens once, in 2009, and it does not wish to repeat the experience.
But Switzerland does have other resources, unlike some other places where people bring their money in secret. It has a healthy manufacturing sector and other interests. And it is probably a foregone conclusion that it will comply with the regulation in the near future.
Source: France 24/ 4.20.13
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