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9 Nissan 5764 - March 31, 2004 | Mordecai Plaut, director Published Weekly
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NEWS
Switzerland Swings to the Right -- in Part Because of Bank Settlement
by Arnon Yaffeh, Paris

Switzerland is a federal republic comprised of 26 cantons inhabited by different peoples speaking German, Italian, French and Romansch and even practicing different religions. It emerged as a nation based on certain common values: hard work, personal interests and neutrality as the essence of its foreign policy. The country's outwardly cosmopolitan character comes from hosting international organizations and supporting the International Red Cross presence where disputes flare up, although in practice the Red Cross often assists the side that best serves its interests.

The country's mixed population requires it to remain neutral in European wars. During World War I tension formed when the French Swiss accused the German Swiss of spying for Germany.

The Swiss always held themselves above their neighbors and expressed patriotism. Compulsory military service is still in place and every Swiss citizen serves several months in the reserve army. Five hundred thousand citizens are still members of the civilian militia and sleep with a rifle under their bed. They are trained to blow up mountain passes to save the motherland. In the streets one sees soldiers armed as if they were fighting a war.

For years and years the Swiss refused to join the United Nations, arguing the organization was unworthy of its stated goal. Only this year in a national referendum was it decided by Switzerland that the UN was worthy of having Switzerland as one of its members. Yet the European Union is still opposed. In Geneva some say because the country was neutral during World War II, the European Union sees no need for them to participate in European reconciliation.

The neutrality policy allowed the country to serve a unique role among the nations of the world: to get along with everybody and to serve as a safe haven for people and money.

Hard Knocks

During the past five years the Swiss example (which many envied) has taken hard knocks. Suddenly it was discovered Switzerland took advantage of its neutrality during the Second World War to carry out dark deals, in effect serving as the treasury for Nazi Germany. Its bank vaults were filled with gold the Nazis stole from the central banks of the countries it occupied. At the end of the war the Red Cross smuggled Nazi war criminals to South America using Swiss diplomatic passports.

Not long ago the banks lost their sterling reputation when they were forced to pay huge sums to compensate for stolen Jewish deposits. Now people are beginning to think twice before they deposit money in a Swiss bank after many Jewish depositors were left holding nothing but account numbers.

The Swiss diplomatic apparatus is spending millions on an initiative by Yossi Beilin known as the Geneva Understandings. Designed, some say, merely to cause controversy and bring down Sharon, delegations working on the project are staying in expensive international hotels and the Swiss government is paying to drive them around in limousines.

The age-old Swiss myth of remaining above its neighbors' quarrels no longer stands up to phenomenon no border or mountain--not even the towering Alps--can stop. Switzerland is being visited by a wave of crime, drugs, illegal immigration, financial crisis, unemployment and contempt for political institutions and law and order. Crime has been taken over by the Albanian Mafia. Swiss banks are facing stiff competition from other European financial centers as well as tax-free zones such as Luxembourg. Switzerland is suffering from industrial problems and financial crisis. These failures, along with the bankruptcy of Swissair, altered the image of a thriving nation immune to the international economic decline. As the country sinks and slides, the Swiss, particularly the French-speaking canton next to France, is turning to the extreme right.

Kristoff Blocher, head of the far-right populist party, is celebrating his victory in the Swiss general elections. In his election campaign his advisors went overboard. Campaign ads blamed the Albanians, African immigrants and asylum- seekers for violence and the medical insurance deficit. Eventually the Geneva-based UN Refugee Commission denounced the ads publicly, calling them racist. But Blocher did well in the elections.

Now Blocher is demanding two portfolios for himself in the new government and one for another member of his party. His goal is to close Switzerland to foreigners. Three of the government's seven portfolios would allow him to impose decisions in keeping with the nationalist, anti-immigration platform he propounded. Until now the antisemitic People's Party had one minister, the Right Christian Centralist Party had four and the Socialist Party two. If he doesn't get his way Blocher is threatening to withdraw his party to the opposition, thereby breaking the general consensus among the parties since 1959 over the distribution of the portfolios. If he manages to secure three portfolios and implement his plan it would put an end to Switzerland's image as a tolerant and open land.

Against the European Union

Europe is still reeling from the elections in which Blocher took 55 of 200 delegates (compared to the socialists' 54). Worried Switzerland will revert to its former status of an isolationist state in the middle of the continent, sheltering black money under the guise of neutrality, the Europeans are trying to pressure Bern to join the European Union. A few other corners remain in Europe--the principalities of Monaco, Andorra and Liechtenstein--where one can still flee the dictates of the European commissioners. Talks about an arrangement with the European Union have been held for years with no results. The Swiss refuse to give up banking confidentiality, which is devoutly guarded as the basis for the banking system.

The main platform messages espoused by Blocher and his party were immigration and the battle to keep Switzerland out of the European Union. Among the immigrants are wealthy Arabs from the oil emirates or rich Europeans who arrive with their money to live in Geneva. One and a half million foreign residents live in Switzerland, most of whom are not Albanians or Africans. They own factories, hotels and agricultural lands.

Blocher is a throwback to the Switzerland of the 40s and 50s, the days of collaboration with the Nazis. By nature he is conservative and less vulgar than Austria's Heider who is politically similar. His support was primarily in French- speaking cantons (in his own canton, Zurich, Blocher lost votes).

Meanwhile the Left and the Greens also increased their power in the elections at the expense of the center. However the majority of Swiss still cling to a compromise approach, forcing politicians to work together.

Blocher's antisemitic party denounced the banks' agreement several years ago to compensate Jewish account holders as "capitulation to Jewish organizations." Blocher's rise to power is linked to Switzerland's lowered status as a result of the affair. Sensing the Swiss people's resistance to the compensation payments, he began issuing antisemitic pronouncements not heard since the war. In the previous elections one representative from his party received a ministerial post and since then Switzerland has continued to decline.

Blocher's supporters ignore the new reality, failing to comprehend that neutrality no longer has a role to play in the age of globalization.

Switzerland is still a wealthy and tranquil country. Its stores command the highest prices in all of Europe and the 4.3 percent unemployment rate is among the lowest in Europe. While the London Times warned the European Union it would be foolish to start demonizing the Swiss government now that Blocher has joined its ranks--as the heads of the European Commission tend to do under the influence of the left--the European Parliament is already preparing a statement of condemnation. Les Temps sides with Blocher. He deserves two portfolios, writes the Geneva daily, because Switzerland's diversity "makes it unable to function except through a policy of consensus."

"It is incumbent on the [European] Union to live in harmony with its neighbor in the heart of Europe," writes the Times. "Switzerland has a problem, but it has not yet been seized by the extreme right. If they do not want to transform him into a popular figure, as Heider was transformed by ostracizing him, it would be best not to shout out, `Switzerland is racist.' Blocher inside the government might do less harm than from the outside, particularly since the referendums seldom ratify the government reforms."

Hopefully the Times is right that Blocher and his cohorts on the right will soon be swallowed up in the government consensus.

 

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