Swiss Finance Minister Warns of Global Debt Risks

Swiss Finance Minister Karin Keller-Sutter has warned that high debt levels in the United States and Europe pose significant risks to global financial stability and Switzerland itself, referring to the U.S. debt as a 'ticking time bomb'. She highlighted Switzerland's 'disciplined' finances, which have allowed the country to navigate economic challenges stemming from the COVID-19 pandemic and geopolitical tensions. Keller-Sutter also noted the recent stock market mini-crash as a sign of investor fears regarding a recession. Additionally, she defended the government's proposal for Swiss bank UBS to increase its capital reserves following its acquisition of Credit Suisse, emphasizing this measure as crucial to prevent future banking crises. Despite criticism from UBS's CEO regarding the proposal, she stated that the bank must determine its own future positioning in Switzerland. Keller-Sutter reaffirmed the Swiss government's belief in the importance of a large domestic bank for the economy.