‘We must reduce our meat consumption’
 

The initiative is an opportunity for Swiss farmers because the market will no longer be flooded with cheap competing  products from abroad, says Meret Schneider.

 © Keystone / Gaetan Bally

On September 25, Swiss citizens will vote on a ban on intensive livestock farming. The initiative aims to eradicate factory farming and calls for stricter import regulations for animal products.

 This content was published on September 6, 2022 -  

“We should have fewer animals but keep them in a more dignified way,” says Zurich’s Green Party parliamentarian Meret Schneider. She is a leading advocate for veganism and is also the co-manager of Sentience Politics, the animal rights organisation that launched the initiative. In an interview with swissinfo.ch, she explains why she supports the cause.



Animal welfare: people’s initiative takes aim at factory farming

This content was published on Sep 5, 2022

 Swiss voters are deciding on a proposed ban on factory farming, a sensitive issue in a country that already has strict animal welfare laws.
SWI swissinfo.ch

Switzerland has some of the strictest animal protection laws and animal husbandry is comparatively small. Do we need more regulations?

Meret Schneider: Of course, Switzerland is well positioned when it comes to animal protection legislation, and we have fewer animals than other countries. However, farmers are still allowed to keep 27,000 broiler chickens in one single barn with 14 chickens packed per square metre. That’s certainly overcrowding.

There is no point in wondering if the situation is worse elsewhere or what other countries are doing. We should rather ask ourselves whether the way we manage our animals ensures their welfare. Do we protect their dignity? There is certainly a lot of room for improvement.

SWI: Does this mean that animals are not sufficiently protected in Switzerland?

M.S.: I’ll leave it to the readers to decide. In Switzerland, a conventional broiler chicken is allowed to live for 30 days during which it is fattened to such an extent that it is unable to stand up on its own two feet. The chickens are then slaughtered on a piecework basis. Laying hens are gassed after ten months because they lose their productivity even though they can live to be 14 years old. They often suffer from breastbone fractures which is due to their selective breeding for increased egg laying. Pigs live on one square metre of concrete without bedding which gives them joint pain. In my view we are far from protecting animal welfare.

SWI: Opponents argue that if accepted, the initiative could lead to a massive fall in Swiss animal products and a price rise of 20% to 40%. Wouldn’t that be a problem for you?

M.S.: This number is far too high because it was calculated based on prices for organic products. It doesn’t make sense. The initiative will not oblige farmers to meet the envisaged organic standards but use them as guidelines of how to protect animal welfare. There will be fewer animal products on the marker which is in line with consumers’ dietary habits. Meat consumption has been continuously on the decline for a while.

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We must severely reduce the consumption of animal products anyway due to climate change and resource depletion. Of course, prices will increase but not as much as the initiative’s opponents claim. At the end of the day, a price hike would be appropriate. Animal products are luxury items that require a great deal of resources. And as long as the Swiss throw away a third of the food they buy, it is hard to understand why anything would be too expensive.


Swiss factory farming ban to be decided at the ballot box
This content was published on Jul 29, 2022

 On September 25, Swiss citizens will vote on a ban on intensive livestock farming.

SWI: Farmers will certainly face higher costs if they, let’s say, are required to convert their stables. Does the initiative take this into account?

M.S.: Absolutely. According to our proposal, the government will support the farmers. We demand subsidies which is something we emphasise again and again. At the same time, we must not forget that the transition period is 25 years, which is a whole generation. We certainly have enough time.

SWI: Opponents of the initiative claim that farmers would have to adopt the requirements for organic certification. This would curb the consumers’ freedom of choice. Is there any truth in it?

M.S.: As I mentioned before, farmers will not be obliged to adopt organic standards and consumers’ freedom of choice is already limited. For example, keeping hens in battery cages is banned in Switzerland. This was a political decision which was supported by the people. We do not want to keep our hens in a way that is against animal welfare. Animal dignity is enshrined in the Swiss Constitution. The same applies to other animal products.

SWI: Swiss resources are not sufficient to feed the whole population. Wouldn’t the initiative reduce our self-sufficiency rate even further?

M.S.: We are far from being self-sufficient. Swiss farms rely on hybrid laying hens for egg production or broiler chickens for meat. These hybrid animals were not bred in Switzerland and their parent stock were imported. When we talk about self-sufficiency, we must bear in mind that we import parent stock, as well as over one million tonnes of fodder every year.




If we cut back on the number of animals and rely more on grazing animals - such as cattle, cows, sheep and goats - which are adapted to our pastures, we will be more self-sufficient. Switzerland has the right topography for grazing animals.

SWI: Isn’t there a risk that the initiative will boost imports from countries where animal welfare is less respected than in Switzerland?

M.S.: This initiative would prevent exactly that. Imported products would have to meet Swiss standards. It would be a great opportunity for Swiss farmers as the market would not be flooded with cheap products such as poultry from Brazil or beef from Argentina. Animals in these countries are often kept according to standards that would be banned under our initiative.

SWI: Critics claim that if accepted, the initiative would violate Switzerland’s obligations towards the World Trade Organisation (WTO). What do you think about that?

M.S.: That’s not a problem. There are already WTO regulations according to which import restrictions are justified and possible if products contradict public morals of the respective society. We have seen this with the import ban on seal products or eggs from caged hens. Accepting the initiative would send a very strong signal that says: “We don't want this as a society.” This would even be compliant with the WTO.

Opposing viewpoint: Swiss People’s Party’s parliamentarian Marcel Dettling explains in an interview why he is against the initiative on the ban on intensive livestock farming

‘The Swiss love their meat’

This content was published on Sep 6, 2022 Animal welfare: Marcel Dettling urges a “no” vote to help keep prices down and avoid a surge in imports.


Swiss Politics

GIANNIS MAVRIS

Are you prepared to pay more for animal products if it means keeping animals in a more species-appropriate manner?
The factory farming initiative wants to anchor the protection of the dignity of farm animals and the ban on factory farming in the constitution.

Adapted from German by Billi Bierling

Steel mill applies for reduced working hours due to energy costs

High energy prices have forced a steel mill in Switzerland to prepare for short-time working to avoid layoffs. 

 

© Keystone / Gaetan Bally

 This content was published on September 4, 2022 -

The Stahl Gerlafingen steel plant in the canton of Solothurn has been granted permission to resort to short-time working from October to December as a preventive measure. The mill consumes as much electricity as 70,000 households and is expecting a bill of CHF45 million for October, writes the NZZ am Sonntag.

This is more than the annual electricity cost, said company director Alain Creteur. The factory, owned by Italian Beltrame Group, produces around 2,600 tonnes of steel every day.

In Switzerland, when a company finds itself in difficulty, it can temporarily reduce the working hours of its staff (known as short-time working). The employees then work at a lower percentage and the employer pays a lower salary. The unemployment insurance compensates 80% of the loss of income of the employee on short-time work.

The measure was used by many Swiss companies in recent years as a result of restrictions related to the Covid pandemic. This is one of the first cases of a company using short-time working to deal with the energy crisis caused by the war in Ukraine.

Switzerland ranks among worst European states for gender income gap

 In 2018, Switzerland was ranked third out of 30 European countries – behind the Netherlands and Austria - with the largest overall wage gap between women and men

Women in Switzerland earn 43.2% less than men and draw less pension due to higher rates of part-time work.

This content was published on September 8, 2022 
Keystone-SDA/Reuters/SRF/sb

The Gender Overall Earnings Gap (GOEG) study, requested by parliament in 2019, showed Switzerland performed relatively poorly compared to other European countries.

“In 2018, the GOEG for Switzerland was 43.2%. This means that women’s earnings are 43.2% lower than men’s for all hours worked between the ages of 15 and 64,” the Federal Statistical Office said in a statementExternal link on Wednesday.

In 2018, Switzerland was rankedExternal link third out of 30 European countries – behind the Netherlands and Austria - with the largest overall wage gap between women and men.

The report said this big difference between the sexes in Switzerland is mainly due to the “high proportion of women who work part-time”. Women make up half of the highly skilled workforce, but work fewer hours. While 63% of all employed women aged 25 to 54 work part-time in the Alpine country, the figure is only 28% in the European Union.

In 2020, the gender pension gap was 34.6%, the report stated. The average total annual pension for women was CHF35,840 ($36,456), CHF18,924 lower than that for men. This reflected differences in employment participation, the effects of family and life models, and wage inequality between the sexes over time.

The data come ahead of a nationwide vote on September 25 whether to reform the state pension system by raising women’s retirement age by a year to 65 – the same as that for men – and increasing value-added tax rates to help fund the system.

Swiss court gives Nord Stream 2 more time to avoid insolvency

The Swiss company behind the Russian gas pipeline Nord Stream 2 has received a four-month extension to try to repay its debts. 

Keystone / Jens Buettner

This content was published on September 8, 2022
Keystone-SDA/ac

The Zug cantonal court in Switzerland, where Nord Stream 2 AG is headquartered, granted the company a second extension, according to an entry in the Swiss Official Gazette of Commerce published on Thursday. The firm has until January 10, 2023 to turn things around and avoid bankruptcy proceedings.

In May, the court granted a provisional moratorium against bankruptcy proceedings for the first time, which was valid until September 10. This period has now been extended by another four months.

Nord Stream 2 is a subsidiary of the Russian gas company Gazprom and has its headquarters in the low-tax canton of Zug, located 30 kilometres south of Zurich. The pipeline, which was laid and completed through the Baltic Sea, was to bring Russian gas to Germany. However, the German government put the approval process for Nord Stream 2 on hold in view of Russia's war against Ukraine. The US imposed sanctions on Nord Stream 2 AG, prohibiting further business with the company.

The Zug economic authority had already spoken of massive payment difficulties as a result of the sanctions imposed on Nord Stream 2 and of imminent "bankruptcy" at the beginning of March. More than hundred employees in Zug were laid off at that time.

Quality issues delay sale of cannabis products in Basel pilot scheme

 

Other Swiss cities have applied to carry out the same cannabis product trials as in Basel. 

© Keystone / Gaetan Bally

Switzerland's first pilot project for the legal sale of cannabis products has been delayed after some of the initial stock failed quality control tests.

This content was published on September 9, 2022 
swissinfo.ch/mga

The ‘Weed Care’ experiment in the city of Basel was supposed to launch on September 15External link. But it has been put on hold because traces of pesticides were found in some of the supposedly organic plants.

Basel’s health department said on Friday that the delay could last several weeks or even months as products must now be analysed again by an independent body.

Six cannabinoid products – four types of cannabis flowers and two types of hashish – were due to go on sale in nine pharmacies from next week.

The Federal Office of Public Health approved the pilot scheme in April as part of a project by the University of Basel, its psychiatric clinics and the cantonal health department.

It is intended to help evaluate the effects of new regulations on the recreational use of cannabis and ultimately combat black market distribution.
Pilot sale over-subscribed

Several other local authorities, including Zurich, Geneva and Bern, have also applied to roll out similar trials. The Swiss parliament laid the legal basisExternal link for such small-scale initiatives in September 2020.

The Basel pilot, which will allow 370 people to participate in the sale of approved products, is over-subscribed with 700 applications.

Basel health officials will now consider options, including different products from the official supplier or even examining different potential suppliers.

The recreational use of cannabis remains banned in Switzerland but it can be consumed for medical reasons. In 2008, voters rejected a proposal to decriminalise cannabis consumption.



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Giant ‘water battery’ plant inaugurated in Switzerland
 

The Nant de Drance hydroelectric power plant has six giant turbines in a cavern hollowed out of a mountain

© Keystone / Laurent Gillieron

A Swiss pumped-storage power station, which can both produce electricity and store power from other sources, has been officially inaugurated.

This content was published on September 9, 2022 

The Nant de Drance hydroelectric plant in western Switzerland has been operational since July. Its turbines can generate 900 megawatts of electricity per hour by releasing water from an upper reservoir through dam sluice gates.

This is a similar amount of electricity production as the Gösgen nuclear power plant in Switzerland, making Nant de Drance one of the largest power producers in Europe.

The Nant de Drance facility can also store power by pumping the water back up to the reservoir ready for re-use when more electricity is needed. The storage capacity of the plant is equivalent to more than 400,000 car batteries.

It was built to cope with fluctuations in wind and solar-power supply and help stabilise electricity output Europe-wide.

It could, for example, store surplus energy from solar plants in Europe to be later released when the sun is not shining.

The Nant de Drance station is built in a remote region of canton Valais at an elevation of 2,225 metres above sea level next to the Vieux Emosson reservoir.

NGOs oppose extension of Swiss secret service powers

 

Swiss intelligence officers have been criticised and reprimanded for abuse of power in the past. 

Keystone / Sascha Steinbach

The Swiss intelligence service should not be given additional powers to monitor for signs of terrorist activity, say NGOs, trade unions and left-leaning political groups.

This content was published on September 9, 2022 -  swissinfo.ch/mga

But political parties from the centre and right have given their backing to a government proposal to better protect national security.

In May, the government said the Federal Intelligence Service (FIS) should be given greater access to financial recordsExternal link and more freedom to keep an eye on extremist groups. The consultation period for the proposed law change ended on Friday.

A coalition of 15 NGOs, including Public Eye, Amnesty International Switzerland, Democratic Lawyers Switzerland and Operation Libero, said the expansion of surveillance would come at the expense of fundamental rights.

FIS has already been criticised and reprimanded for keeping files on left-wing politicians and groups External link without good cause.

In 2016, voters backed a strengthening of the lawExternal link to allow intelligence officers to tap private phone lines and monitor cyberspace activities to prevent terrorist attacks.

But not everyone is against a fresh extension of FIS powers. The People’s Party want the proposed law amendment to also oblige doctors and social workers to give up information to combat terrorism and extremism.

Other parties in the centre and right of the political spectrum endorsed the government’s plans, saying they are essential for national security and include enough safeguards to prevent abuse.

The prosed law change will now go to parliament and potentially a nationwide referendum.

CRIMINAL CAPITALI$M

Credit Suisse chief faces early test in $800m Singapore trial

 

Ulrich Körner has his hands full as he steers Credit Suisse through troubled waters. 

Keystone / Salvatore Di Nolfi

Ulrich Körner faces his first test as Credit Suisse chief executive as the bank goes on trial in Singapore over its past relationship with Georgia’s former prime minister Bidzina Ivanishvili.

This content was published on September 5, 2022 - 
Owen Walker, Stephen Morris, Mercedes Ruehl, Financial Times

Billionaire Ivanishvili, who is Georgia’s richest person, is pursuing the Swiss lender for up to $800 million in damages, having already been awarded $607.5m from the bank in a related case in Bermuda this year.

Körner — Credit Suisse’s fourth chief executive since 2005, who last month replaced Thomas Gottstein — is grappling with a major overhaul of the lender’s investment bank, which analysts have estimated could lead to billions of dollars in restructuring costs and require an additional capital raise.
External Content

The Ivanishvili case is also an early challenge for Credit Suisse’s recently installed general counsel Markus Diethelm. Both Körner and Diethelm are former UBS executives who spent more than a decade fighting legal battles at the bank following the financial crisis.

Credit Suisse can ill-afford another nine-figure loss after setting aside a total of SFr3.9bn ($4bn) in net provisions for litigation since the start of 2020.

The bank’s executive board has been holed up in meetings this week — coincidentally also taking place in Singapore — thrashing out the future of the group’s investment bank. Analysts at Deutsche Bank said the costs of paring back the unit — outlined as a priority by Körner, dubbed “Uli the Knife” — would leave a SFr4bn hole in the bank’s capital position.

Changes too late?

“Running down other parts of the investment bank and selling smaller businesses across divisions could help over time, but this would likely come too late to avoid an equity raise,” wrote Deutsche analysts Benjamin Goy and Sharath Kumar Ramanathan.

Such a move would prove unpopular with shareholders after Credit Suisse was forced to raise $1.9bn last year. Its share price dropped below SFr5 for the first time in more than three decades this week, having halved since the start of last year.

The Singapore trial, which is expected to take three weeks, will start on Monday morning at the country’s Supreme Court and be heard before Justice Patricia Bergin. The closing arguments are expected in December, with a verdict due early next year.

Ivanishvili’s dispute with Credit Suisse goes back to 2011 when he was a private banking client of the group.

It was then that details emerged that, for more than a decade, Credit Suisse private banker Patrice Lescaudron defrauded some of the Swiss bank’s most sensitive accounts — including those held by Ivanishvili and Russian oligarch Vitaly Malkin — funding a lavish lifestyle of luxury houses, sports cars, Rolex watches and gifts of Chanel jewellery.

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A damning report into the affair by the Swiss regulator Finma, which was inadvertently made public in February last year, found repeated warning signs, evidence of hundreds of suspicious transactions and four formal disciplinary proceedings that were not acted upon by Credit Suisse.
Rogue banker blamed

The bank has long maintained that Lescaudron — who was criminally convicted in 2018 and died by suicide in 2020 after an early release — was a highly successful rogue operator who worked tirelessly to hide his illegal activity from superiors and colleagues. The Swiss criminal case against Lescaudron found the bank to have been a wronged party.

Ivanishvili tried to sue Credit Suisse in New Zealand, one of the countries — alongside Singapore and Bermuda — where the bank set up investment vehicles for wealthy clients. But the country’s High Court ruled in 2018 that the case should be heard in Switzerland.

He is expected to give video evidence from Georgia in the trial. His lawyers, Drew & Napier, are expected to argue that Credit Suisse’s Singaporean subsidiary, Credit Suisse Trust, failed to review the investments, did not protect the assets and did not accurately account for them.

However, a person briefed on Credit Suisse’s legal defence said the case would rest on whether staff in the Singapore subsidiary were party to the fraud with Lescaudron, which the bank denies, or acted in good faith.

They added that it was too early for the bank to take provisions or inform the market about potential losses.

Expensive tree hobby

Neither side has proposed settling the case so far, according to people briefed on the process.

Credit Suisse said it “does not comment on ongoing litigation matters”, while Ivanishvili declined to comment.

Ivanishvili, who served as Georgia’s prime minister between 2012 and 2013, amassed an estimated $4.8bn fortune in metals and banking, according to Forbes.

In recent years, he has spent millions collecting giant trees and transporting them by barge to his private garden on the Black Sea shoreline, which is partly open to the public. A documentary about the billionaire’s latest hobby, , premiered at the Sundance Film Festival last year.

Copyright The Financial Times Limited 2022

BlackRock hits back at Republican AGs’ ESG qualms

By International Affairs

September 9, 2022

BlackRock is refuting what it calls ‘inaccurate’ claims by a coalition of Republican attorneys general that the money manager’s ESG investing policies sacrifice investor returns and violate the firm’s fiduciary duty.

On August 4, Arizona Attorney General Mark Brnovich and 18 other conservative attorneys general sent a letter to BlackRock chief executive Larry Fink accusing him and his firm of ‘putting leftist politics above investors’ interests and returns.’

A letter released Wednesday by BlackRock’s head of external affairs Dalia Blass responds to that accusation and explains that BlackRock’s motivation for participating in ‘various ESG-related initiatives’ is not driven by politics, but in fact by financial performance.

‘We believe investors and companies that take a forward-looking position with respect to climate risk and its implications for the energy transition will generate better long-term financial outcomes,’ BlackRock’s letter states, noting that governments comprising more than 90% of global GDP have committed to shifting to net zero energy policies in the future.

Among BlackRock’s ESG-related policies is its participation in the Taskforce on Climate-Related Financial Disclosures, which asks companies to submit detailed disclosures on the environmental impact of their operations. BlackRock argues this is an effort to enhance transparency for risk assessment purposes, and denies that it dictates emissions targets or political lobbying strategies for companies it invests in.

Ironically, BlackRock’s statements seem to align perfectly with Attorney General Brnovich’s statement in a news release that ‘a fiduciary responsibility requires putting your client’s best interests ahead of any political agendas.’ The disconnect, it would seem, is that ESG critics including the aforementioned attorneys general appear to believe that climate change is not a pecuniary issue. BlackRock disagrees, but argues it has not limited clients, including pension fund clients, from investing in legacy oil and gas companies if they so choose.

‘BlackRock’s belief that climate risk poses investment risk is backed by our publicly-available research,’ the firm wrote. ‘We also understand, however, that these views are not universal. For this reason, we offer clients a broad choice of investment products … that allow clients to gain broad market exposure, including to energy companies, and to make energy-specific investments.’

BlackRock’s letter further states that firm leadership is ‘disturbed’ by the emerging trend of red states politicizing pension plans and ‘troubled’ by their efforts to use anti-boycott statutes to limit what kinds of strategies retirees can invest in.

Last month, Texas Comptroller Glenn Hegar banned BlackRock and nine other asset managers from handling pension funds for the state after determining that the firms ‘boycott’ oil and gas companies – West Virginia previously did something similar – and ordered state pension funds to divest from about 350 ETFs and mutual funds found to have an ESG tilt.

In its letter, BlackRock once again categorically denied that it boycotts oil and gas companies, or companies in any sector, and asserted that it currently has roughly $170bn invested in US energy companies, including in states that have been hostile to the firm. Texas Attorney General Ken Paxton was among the 19 signatories of Brnovich’s August 4 letter.

Wall Street Giants Set to Smash Profit Records Off Global Hunger, Energy Crisis



By International Affairs

September 9, 2022

Russia’s war on Ukraine has wreaked havoc on global commodity markets, driving up energy and food prices and exacerbating hunger emergencies around the world.

“We’re in a market where speculators are driving prices up.”

But while disastrous for the global poor—millions of whom are living on the brink of famine—the chaos has been a major boon for Wall Street giants, according to new data showing that the world’s 100 largest banks are on pace to smash commodity trading profit records this year.

“The 100 biggest banks by revenue are set to make $18 billion from commodities trading in 2022,” Bloomberg reported Friday, citing figures from the London-based firm Vali Analytics. “That would be the highest in the data, which goes back 14 years, and exceed the previous high watermark in 2009.”

“The prediction is the latest evidence that the wild swings in energy prices triggered by the war in Ukraine are delivering a boon to commodity traders, even as they push European nations into crisis,” Bloomberg added. “Vali, an analytics firm that tracks trading business, compiled data that includes the leading five banks in commodity trading: Macquarie Group Ltd., Goldman Sachs Group Inc., JPMorgan Chase & Co., Citigroup Inc., and Morgan Stanley.”

Though the prices of wheat and other food staples have fallen from their peak in recent months, they remain significantly elevated compared to last year, according to the United Nations’ Food and Agriculture Organization, leaving millions vulnerable to hunger and starvation.

The World Food Program estimates that “as many as 828 million people go to bed hungry every night” and “the number of those facing acute food insecurity has soared—from 135 million to 345 million—since 2019.”

Energy prices have also eased but remain high, contributing to cost-of-living crises throughout Europe and other parts of the globe.

“People’s misery makes capitalists’ superprofit,” Salvatore De Rosa, a researcher at the Lund University Center for Sustainability Studies, tweeted in response to Bloomberg‘s reporting. “How do you reform this?”

Wall Street banks have not just benefited from the commodity price increases—they’ve actively helped fuel them, experts say.

“We’re in a market where speculators are driving prices up,” Michael Greenberger, former head of the Division of Trading and Markets at the U.S. Commodity Futures Trading Commission, told Mongabay in July.

“Commodity markets are supposed to be hedging markets for people who are dealing with the commodity involved,” Greenberger said. “In the case of wheat, it would be farmers and people buying wheat. But if we looked at it, there would be banks in there with no interest in what the price of wheat is, writing swaps and controlling this price.”

“It’s too easy to say the war in Ukraine has unbalanced all these markets, [or that] supply chains and the ports are shot, and that there’s a supply and demand reason for these prices going up,” Greenberger added. “My own best guess is anywhere from 10% to 25% of the price, at least, is dictated by deregulated speculative activity.”