2023-05-08 03:55:05
Seco boss on criticism from the USA: “I have to abide by our laws”
Why is Switzerland so inhibited when dealing with Russia? Helene Budliger, the new State Secretary for Economic Affairs, defends herself against the criticism and justifies her refusal to arms export requests.
“We have never had to sanction a country of Russia’s geopolitical importance”: Helene Budliger, Head of the State Secretariat for Economic Affairs (Seco), speaks in an interview about oligarch funds and arms export requests.
Foto: Raphael Moser
Ms. Budliger, Switzerland is under international pressure because of the war in Ukraine. In August 2022, in the middle of the crisis, you started the job as head of Seco. How hard is the job?
Less harsh than many people think. However, I often have to explain our political system and our neutrality abroad. I see myself at the forefront. At the same time, our universal international relationships are a strength.
Are you successful with your explanations? Many countries are demanding that Switzerland allow their weapons to be re-exported to Ukraine.
Yes, there is definitely that pressure. We were faced with three requests that we had to refuse.
You won’t deviate from your position though?
Our legislation currently prohibits us from granting these requests. I have to obey our laws.
Do you personally hope that Parliament will still allow the weapons to be re-exported?
I am not a politician, but represent the position of the Federal Council. Personally, I think it would be good for the country if Parliament continued to hold this debate in the foreseeable future.
“The G-7 countries certify that we have good cooperation on a technical level, even without joining.”
Another demand is that Switzerland participate in the so-called Repo Task Force, which is tasked with tracking down Russian oligarch funds. Again, you must resist.
The desire that we join is there. At the same time, the G-7 countries confirm that we have good cooperation on a technical level, even without joining. We will further intensify this cooperation with our international partners.
US Ambassador Scott Miller does not see things so rosy. In an interview, he personally accused you of misjudging the usefulness of the sanctions against Russia.
Scott Miller and I get along really well. He is very interested in the Swiss apprenticeship system. We recently visited the Sursee campus together, where the private sector invests a lot of money in the training of young professionals.
But then why the attack on you?
His interview statement was addressed to politics, but did not correspond to diplomatic practice. I know that Ambassador Miller fights with a lot of passion when something is important to him. I respect that.
“What I appreciate about the USA is that the talks are factual and you get to the point quickly.”
Who is harder for you: Miller or Brian Nelson from the US Treasury Department, who recently traveled to Switzerland specifically to nag us about the Russia sanctions?
The relationship with both of them is very good! What I like about the USA is that the talks are factual and you get to the point quickly. Brian Nelson expressly rated the cooperation with Switzerland positively.
And yet the impression remains that Switzerland is always a little late and reluctant to move when it comes to sanctions. Looking back, how do you rate Seco’s reaction?
I would like to underline that we at Seco know how sanctions work. We were overwhelmed at the beginning, like the other countries. We have never had to sanction a country of the geopolitical importance of Russia. It was necessary to incorporate the international sanctions with the hundreds of legal texts into Swiss law. We were confronted with 20,000 inquiries from companies or lawyers to whom we had to provide information. In the meantime we have been able to increase our staff and are well established.
How many attempts to circumvent sanctions have you identified?
There are now 130 suspected cases. In 29 cases they led to administrative penal proceedings, 14 of which were finally concluded. In 36 cases it was possible to avoid opening them. The rest is still to be clarified.
In the “SonntagsZeitung” there was talk of CHF 10 billion from the Russian central bank, which should be available in Switzerland. Can you confirm?
The 10th package of sanctions includes a reporting deadline for assets held by the Central Bank of Russia. That deadline expired in April. We now get an overview and consolidate the numbers. We try to give a number as soon as possible.
Switzerland is under pressure, US Ambassador Miller sees it in the worst crisis since World War II. What do you think we need to prepare for?
I am naturally optimistic. A lot speaks for Switzerland. We have historically low unemployment, we have not entered a recession, we have come through the winter well and our currency is stable. We are internationally envied for all of this.
“We do not expect any short-term effects on the economy due to the end of Credit Suisse,” says Seco boss Helene Budliger.
Foto: Raphael Moser
Will the end of Credit Suisse hurt our economy?
We do not expect any effects on the economy in the short term. We are worried about a possible mass layoff at the big banks. Economy Minister Guy Parmelin is in contact with the staff associations in this regard.
As head of Seco, you are also responsible for concluding new free trade agreements. It’s been sticking around for a long time. Do you expect a breakthrough somewhere?
We see a promising momentum in India. This market is of great importance to us. India is the most populous country in the world with strong economic growth.
Former Economics Minister Johann Schneider-Ammann was already optimistic about India a dozen years ago. We’re not really further today.
India has recently become active itself and has concluded free trade agreements with Australia and the United Arab Emirates. Apparently the deal is about to be finalized with Great Britain, and negotiations are under way with Canada. We felt and used this momentum. I have been to India three times for short visits and hope to meet the Indian Trade Minister in Europe for a fourth time later this month.
One hears from your office that you are almost constantly on the go. Are you still leading your former diplomatic travel life?
no way. As one of my first steps, I gave up responsibility for the Directorate for Foreign Trade. It is true that since I took office I have received a great many inquiries from Seco’s numerous stakeholder groups. It is important to me from the beginning to build up and maintain a network of contacts, which is indeed a challenge in terms of deadlines…
“You cannot succeed by hiding behind your desk.”
We noticed: it is difficult to get an interview appointment with you.
I plead guilty. (laughs) You cannot be successful as head of Seco if you hide behind your desk. Contacts with the associations, the cantons and the economy are important. You shouldn’t feel too bad about cleaning doorknobs – I learned that in my previous job as an ambassador.
Do you enjoy being the captain in a storm?
I like creative freedom because it is combined with a sense of responsibility. At Seco, many employees work at the limit. Due to the most recent crises such as the corona pandemic and the war in Ukraine, numerous people are working extra shifts again and again. I demand of myself to take care of my people. And to put myself in front of them if necessary.
And do you think you live up to your claim?
Maybe there’s more I can do. I’m never really happy with myself. That is sometimes a bit tiring. (laughs)
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