Speech at St. Gallen Symposium
Thursday, 8th May 2025, 54th St. Gallen Symposium 2025
Ladies and Gentlemen
Today is a remarkable day. Of course, it’s a pleasure to be here again at the St Gallen Symposium to address – and engage with – you. Thank you very much!
However, what’s truly remarkable about today is that it has been exactly 80 years since the German Wehrmacht surrendered to the Allied forces. On 8 May 1945, one of the most catastrophic and harrowing chapters in European history drew to a close. Why, some might ask, is it important to commemorate the end of the war, eight decades on? Personally, I see two reasons:
Firstly, because we have a duty to honour the memory of those who perished in the Second World War, among them six million Jews. The promise then was ‹never again› – and so it must remain.
And secondly, because reflecting on the past reminds us that peace, democracy, security and prosperity are hard-won achievements we should never take for granted.
Ladies and Gentlemen
The end of the Second World War marked the birth of a new international order, both politically and economically. A few minutes are not enough to explain the history – that’s best left to the historians. But I can say this much:
Back then, under strong American leadership, the foundations were laid for what would become a decades-long success story of democracy and market economy. Let’s be clear – the post-war order was by no means perfect. Far too many conflicts and wars have proven that point.
Yet on balance, it delivered greater stability and, with that, more security and prosperity for much of humanity. The liberal order was further cemented by the fall of the Iron Curtain over 30 years ago. Russia’s invasion of Ukraine three years ago, in the heart of Europe, stands as a turning point in our history. Putin’s war has laid bare the fragility of the international order. But the cracks had already been forming for some time.
We’ve seen China’s economic rise and the emergence of illiberal tendencies in numerous states.
We’ve faced Islamist terrorism – when did you last reflect on 9/11?
We’ve witnessed the creeping return of protectionism, accelerated by the shock of the coronavirus pandemic.
Also, multilateralism and the global trade system have been under pressure for years – not just since the second Trump administration. What’s different now is the pace of change. All these developments are unfolding against a backdrop of major demographic shifts, another digital revolution, and climate change. And as a finance minister, I must add, against a backdrop of mounting debt in many countries.
Ladies and Gentlemen
The world of yesterday is gone. The world of tomorrow will not look like the one we used to know. The global order is reshaping itself before our eyes. With America’s new leadership, this shift has just become even more unpredictable. We are heading towards a new balance that will most likely rely more on power politics and less on rules.
Yet we cannot say for certain what this new equilibrium will look like, when it will establish itself, or which principles will govern it. We shouldn’t fool ourselves: Switzerland does not have the geopolitical weight to substantially shape these emerging international rules. This was no different 80 years ago.
But don’t get me wrong: Switzerland can and should play its part. We will continue to stand up for a rules-based system, for peace and security, for democracy and open markets – not just out of self-interest, but with deep conviction. Above all, what Switzerland can and must do – as every nation and government should – is keep its own affairs in good order. I would like to emphasise three key points:
Firstly: We are the masters of our own democracy. We occasionally seem to forget what drives democracy – the most precious form of government: robust debate, competing ideas, accepting defeat, and the willingness to meet halfway. What would be the point of democracy if we all thought alike? Attacking political opponents and silencing different opinions is what autocrats do, not democrats.
Secondly: We need a framework where society and business can develop freely to create prosperity. What is true for democracy – robust debates, competing ideas – is also true for business and for the markets: competition and free trade foster prosperity. But it also means solid bilateral relationships with our key trading partners, especially the EU and the US. Good, stable conditions not only support jobs and family incomes – they’re also vital for government revenue.
And thirdly, linked to my second point, we must ensure financial stability and therefore resilience. Any security – whether military or social – is fragile if it’s built on a weak financial base and funded by debt.
Ladies and Gentlemen
Among all the disruptions we face today, I see the high level of debt, especially in Western countries, as one of our biggest threats. In a recent interview, British historian Harold James of Princeton University argued that it was not America’s Smoot-Hawley tariffs of 1930 that plunged the world into depression, but the financial crisis that broke out later. Historical analogies are always tricky. The world has changed a lot since 1945 or 1989.
Globalisation and digital technology have made us richer, but also more vulnerable. And the US economy carries far more weight globally now than it did during the Second World War.We don’t know which tariffs the US will place on which countries. But the intention is clear: they want to bring jobs home and – if possible – reduce their trade deficit. And if the US also manages to cut its debt along the way, that might actually benefit the wider world.
Even though today’s world differs markedly from 80 years ago, I firmly believe it is in the interest of Western nations to uphold their own liberal order. Combined with sound financial policies, democracy and freedom remain our best pathway to security and prosperity.
Thank you for listening. I welcome the chance to explore some of these issues with you in conversation today.
Consigliera federale Karin Keller-Sutter
Anno presidenziale 2025
Karin Keller-Sutter sarà la presidente della Confederazione nel 2025.
Biografia
La consigliera federale Karin Keller-Sutter è a capo del Dipartimento federale delle finanze da gennaio 2023.
Foto autografata
Ordinare una cartolina autografata dalla Presidente della Confederazione svizzera.
Interviste e contributi
Selezione di interviste della Presidente della Confederazione Karin Keller-Sutter.
Discorsi
I discorsi della presidente della Confederazione Karin Keller-Sutter in versione integrale.