Swiss to feel repercussions of euro woes-president

* Leuthard sees low growth for whole EU over next few years

* Says euro rescue package won’t spur countries to cut debt

* Swiss franc safe haven status to strengthen further

ZURICH, May 22 (BestGrowthStock) – Switzerland will feel the
consequences of the euro crisis as growth in the whole of the
Europe area is expected to be sluggish over the next few years,
the Alpine country’s president was quoted on Saturday as saying.

Swiss Economy Minister Doris Leuthard, who holds the
rotating post of Swiss President this year, said in an interview
with Swiss newspaper Neue Zuercher Zeitung that she was more
worried about the overall economic impact of the crisis than
wild currency fluctuations.

“In June the new economic forecasts will draw the first
conclusions on the repercussions (of the euro crisis),” Leuthard
said. “I am not chiefly worried over the currency problems. More
worrisome is the fact that the weakness of the euro and the
rescue package that goes with that will weigh on the economic
development of the whole European continent.

“We have to get used to the idea of very moderate economic
growth in the European Union area over the next years,” she
said.

Leuthard said the Swiss National Bank together with the
Finance Ministry and Economy Ministry had all intensified
monitoring of the situation, which has seen the franc rallying
to all-time highs against the euro — the currency of its main
trading partners — this week.

Leuthard expressed concern about the 750 billion euro ($938
billion) EU emergency debt package to avert an unprecedented
crisis for the euro zone. Germany’s parliament gave its key
support to the austerity plan on Friday. [ID:nSGE64K06K]

“(The package) represents an implicit state guarantee,” she
said. “There will be therefore less pressure on heavily-indebted
euro zone nations to do their homework and introduce the
necessary reforms.

“This creates uncertainty and dampens economic growth,
something that Switzerland will also feel. There is a risk that
the Swiss franc’s safe haven status will further strengthen.”

Investing
(Writing by Lisa Jucca, editing by Mike Peacock)

Swiss to feel repercussions of euro woes-president