Hollande in Switzerland to mend ties after tax squabbles

Hollande in Switzerland to mend ties after tax squabbles

15th April 2015, Comments 0 comments

French President Francois Hollande arrived in Switzerland Wednesday for a state visit aimed at mending ties clouded by spats over tax evasion claims.

The two-day trip is the first state visit to Switzerland by a French president since Jacques Chirac's stopover 17 years ago.

Paris is aiming to smooth over a series of squabbles with its wealthy neighbour centred mainly on tax issues, but is also looking to the enterprising Swiss for inspiration on education and green economic growth.

French presidents rarely pay a call to their Swiss counterparts: before Chirac's visit in 1998, Francois Mitterrand came in 1983 and Armand Fallieres stopped by... in 1910.

The tax evasion issue has long weighed on relations, as Paris has become increasingly impatient with French nationals taking advantage of Swiss banking secrecy laws to stash cash out of sight of tax authorities back home.

But the atmosphere has "improved considerably" over the past two years, the French presidency told AFP, adding however that Switzerland must "obviously pursue" its efforts.

- 'Relations require care' -

Under pressure from France, the United States and other nations, Switzerland has been reforming its banking laws to crack down on tax cheats.

"Relations between neighbours require care. It is normal to have problems with your neighbours, but you have to talk about them, openly and often," Swiss Foreign Minister Didier Burkhalter told public broadcaster RTS.

France and Switzerland share a 570-kilometre (350-mile) border.

Hollande, who is accompanied by five ministers, was welcomed at the Basel-Mulhouse airport by Swiss counterpart Simonetta Sommaruga.

The French leader is due to visit Bern later Wednesday, where he will hold a press conference with the Swiss president. A state dinner is to follow.

During his visit, he will meet with some of the 167,000 French nationals who live in Switzerland, and will also discuss the situation of the some 150,000 residents of France who commute across the border each day to work.

Many have seen their jobs threatened by the sudden surge in the value of the Swiss franc, which has hurt export businesses particularly.

Cross-border workers were also alarmed by a popular vote last year calling for Switzerland to strictly control immigration of EU citizens.

Hollande is expected to remind Bern of its longstanding agreement to give EU country nationals free access to its labour market.

On Thursday, he and Sommaruga are set to travel to Switzerland's financial capital Zurich before taking a special train on to Lausanne.

They will conduct a series of visits focused among other things on Swiss innovation in the area of environmentally sustainable economic growth and clean technology, the French presidency said.

After concluding the official part of his visit, Hollande will on Thursday meet Thomas Bach, head of the International Olympic Committee, in Lausanne.

Paris city lawmakers voted this week by an overwhelming majority to back a bid for the 2024 Summer Olympics.

© 2015 AFP

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