The Federal Council noted the conclusions today of the consultation regarding the use of 800 tonnes of gold no longer required as reserves by the Swiss National Bank. Further proceedings will depend on the progress of parliamentary debate on the Swiss Solidarity Foundation Act. The Federal Council Message on the ‘Gold Initiative’ of the Swiss People’s Party (SVP) should be passed by Parliament as swiftly as possible.

The Federal Council is pleased to note that the Council of States’ Committee for Economic Affairs and Taxation (CEAT-CS) has taken up the matter of the Message of the 17^th May 2000 on the Swiss Solidarity Foundation and has begun its consultations so swiftly. This Bill determines the use of 500 tonnes of the 1300 tonnes of gold, which the Swiss National Bank no longer requires for its reserves. Note was made today of the detailed report on the conclusions of the consultation regarding the use of the remaining 800 tonnes of gold, which was approved for publication.

In June 2000, the Federal Council presented two proposals for discussion on the use of 800 tonnes of gold from the Swiss National Bank’s reserves. The first proposal envisaged the financing of an education initiative in the field of Information and Communications Technologies to begin with, after which the resources would be directed to transitional projects related to Pension and Surviving Dependants Insurance. The second recommendation envisaged a debt reduction programme for the Confederation and the cantons.

In total, 88 of the parties consulted expressed opinions on the use of the 800 tonnes of gold. The spectrum of opinions on the subject is broad and demonstrates a range of positions and preferences.

Cantons claim their two-thirds

The cantons have emphasised their claim to two-thirds of the 800 tonnes of gold under discussion. The Christian Democratic People’s Party (CVP) also supports the notion that two-thirds of the proceeds from these special assets be granted to the cantons, although it would like a part to be considered as a contribution to the costs faced by the cantons in the area of additional support services as a result of the introduction of a

flexible retirement age. The proposal of a debt reduction programme for the Confederation and the cantons was well received beyond the cantons themselves, particularly by the FDP, the Liberal Party and employers associations.

The SP and the unions wish to see the proceeds from the sale of the 800 tonnes of gold reserves flow into the Pension and Surviving Dependants Insurance Fund. Their view coincides at least partly with that of the SVP, which recently submitted its ‘Gold Initiative’ proposal. It demands that all freed currency reserves be paid into the Pension and Surviving Dependants Insurance Fund.

Little support for education initiative

In addition to support from the Worker’s Party (PdA), the proposal to launch an education initiative mostly received support from education organisations. Despite certain political reservations, the CVP has also signalled its support. Although some of the other parties consulted did not question the need for educational measures in Information and Communication Technologies, most suggested other areas that could benefit from financing.

The subsequent use of resources to finance transitional projects found support primarily from the Worker’s Party as well as from pensioners associations. The Greens, the Christian Social Party (CSP) and the Christian National Union Congress would like to see the proceeds from the special assets used to finance a children’s insurance benefit or an increase in child allowance.

Approval for establishment of Foundation

In the course of the consultations, the cantons and the majority of parties emphasised their support for the establishment of the Swiss Solidarity Foundation.

In autumn 2000, the CEAT-CS not only began work on the Foundation Act, but also on the draft transition article required in the Constitution for the transfer of the gold. In connection with this, it expressed the desire to determine the uses of the entire 1300 tonnes of the gold reserves in this transitional provision. In this way, a counter proposal can be made to the popular initiative that has since been submitted by the SVP.

The Federal Council will release information on further proceedings as soon as the first decisions of the CEAT-CS are known. It will also make sure that a Message on the SVP’s gold initiative is passed on to Parliament as swiftly as possible.

Information:
Walter Schmid, Project Leader, Tel. +41 79 446 4154

24^th January 2001