Swiss Finance Chief Criticizes U.S., Europe Over "Time Bomb" Debt Levels

Debt levels in the US and Europe pose a risk to international financial stability and to Switzerland, Swiss Finance Minister Karin Keller-Sutter said in a recent newspaper interview published, Oliver Hirt reported for Reuters.

Keller-Sutter praised Switzerland's "disciplined" finances, which she said had enabled the country to deal with the economic challenges posed by the COVID-19 pandemic and Russia's invasion of Ukraine. I Photo: Chancellerie Fédérale

In an interview with the Swiss daily Blick, Keller-Sutter praised Switzerland's "disciplined" finances, which she said had enabled the country to deal with the economic challenges posed by the COVID-19 pandemic and Russia's invasion of Ukraine.

By contrast, other countries are "so indebted they're hardly able to act anymore," she said, giving France as an example.

"Or take a look at America. That's a time bomb. The mini-crash on the stock markets at the start of August was a warning shot," the minister was quoted as saying.

"It was an expression of investors' fear of a recession. Debt levels in the US and Europe are a risk to international financial stability and a risk for Switzerland," she added.

Keller-Sutter also discussed a government proposal to make Swiss bank UBS hold more capital following its acquisition of former rival Credit Suisse after its collapse last year. She defended the additional capital requirements as necessary to protect Switzerland from another banking meltdown.